20260319Staff Comments - Redacted.pdf

RECEIVED
March 19, 2026
IDAHO PUBLIC
UTILITIES COMMISSION
JEFFREY R. LOLL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83702
[phone]
IDAHO BAR NO. 11675
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ROCKY MOUNTAIN )
POWER'S APPLICATION FOR A WAIVER ) CASE NO. PAC-E-25-20
OF THE SOLICITATION REQUIREMENTS )
PROPOSED IN CASE NO. GNR-E-25-01 )
REDACTED COMMENTS OF
THE COMMISSION STAFF
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"), by and through its attorney of record, Jeffrey R. Loll, Deputy Attorney
General, submits the following comments.
BACKGROUND
On October 20, 2025, Rocky Mountain Power, a division of PacifiCorp ("Company")
applied("Application")to the Commission requesting an order approving a waiver of solicitation
requirements, proposed by Staff in Case No. GNR-E-25-01, in connection with the Company's
power purchase agreement ("PPA") concerning the Natrium Reactor Plant, Kemmerer Power
Station Unit 1 ("KU I").
The Company represents that US SFR Owner, LLC ("US SFR"), a subsidiary of
TerraPower, LLC, is in the process of obtaining approval from the Nuclear Regulatory
Commission to construct the KUI project near the Company's Naughton Power Plant
("Naughton"). Application at 3. According to the Company, "[t]he KU1 project is a 345-
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megawatt("MW") sodium-cooled nuclear steam electric generating plant coupled with a molten
salt integrated energy storage system." Id.
The Company states that due to the time-sensitive nature of the KU1 project, it is seeking
a waiver from the Request for Proposal ("RFP")process proposed by Staff in Case No. GNR-E-
25-01.1 Id. The Company states that under Staff s proposals,prior to the acquisition of an
electrical resource of 100 MW or greater for a duration of at least ten years that will be subject to
recovery from Idaho ratepayers, a utility must solicit resources by issuing an RFP. Id. at 4.
According to the Company,under Staffs proposals, the Commission would grant
waivers to the RFP process upon the utility's showing of a unique economic opportunity that
justifies bypassing the usual solicitation requirements. Id.
The Company characterizes its PPA related to the KU1 as a unique economic opportunity
due to: (1)the significant advancements in nuclear technology embodied in the KU1, which
allow for uncommon energy dispatchability and operational flexibility; (2) the comprehensive
risk management and safety provisions included in the PPA, including significant protections for
unknown performance risks associated with the KU1 and the federal safety oversight inherent in
a nuclear project; and(3) the cognizable long-term benefits, such as operational knowledge that
the Company can deploy in future opportunities. Id. at 4-7.
The Company represents that forgoing the RFP process for the PPA is in the public
interest and necessary for several reasons that are unique to the KU1 project. Id. at 7.
Specifically, the Company states that federal funding requirements, the unique commercial
opportunity, the geographic and infrastructure limitations connected to the Company's use of
Naughton, and a lack of viable alternatives with the same benefits make the PPA a time-sensitive
opportunity and obviate the need for an RFP process. Id. at 7-9.
The Company states that the KU1 project has been included in its three most recent
Integrated Resource Plans ("IRP") as part of the least-cost, least-risk portfolio of resource
options. Id. at 9.
' On January 2, 2026, the Commission issued Order No. 36898, modifying the RFP oversight process for the
acquisition of large supply-side electrical resources.
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STAFF ANALYSIS
Staff believes the proposed PPA helps meet an ongoing need for new resources, is
economically favorable, and establishes an important path to incorporate nuclear baseload
resource into the Company's overall system. Based on Staff s review of the Company's
Application, the Company's responses to Staff Production Requests, and the Company's
strategies to mitigate potential risks associated with the first-of-a-kind ("FOAK")nuclear
technology utilized in the KU1, Staff recommends that the Commission:
1. Grant a waiver from the typical RFP process;
2. Direct the Company to file a separate case to determine the prudency of the PPA prior
to the commercial operation date ("COD") of the KU1 project; and
3. Direct the Company to provide status updates as to the progress of the project relative
to the current plan in each future IRP.
The RFP Waiver Policy
The Commission issued Order No. 36898 on January 2, 2026, directing each investor-
owned electric utility to apply for Commission approval for each new large supply-side RFP, in
accordance with the Procedure for Soliciting Large Supply-Side Resources ("RFP Procedure").
Case No. GNR-E-25-01 at 6-7.
Section two of the RFP Procedure establishes a waiver process for special situations.
Section 2.c states:
For unsolicited economic-based, or large-customer-funded, opportunities outside
of the RFP process:
i. The Company shall file an application for Commission review and approval
of the proposed opportunity; and
ii. The Company's application should justify the need and/or the economic
value of the opportunity, and why the normal RFP process should not apply.
The Company is pursuing a waiver under this section, and Staff provides its analysis
accordingly.
The Need for New Resources
Staff believes that the Company has documented a need for new resources, including
nuclear power.
STAFF COMMENTS 3 MARCH 19, 2026

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In the Company's 2025 IRP (Case No. PAC-E-25-12), the Company forecasted steady
load growth for the entire 20-year planning period. The Company states that the "system
summer peak load grows at a compound annual growth rate (CAGR) of 1.67 percent over the
period 2025 through 2044." 2025 IRP at 114. Staff reviewed the load forecast methodology and
concluded that"it is sound and has resulted in a load forecast that is reasonable for purposes of
planning the Company's resources."2
To meet this growth, the Company's preferred portfolio includes the addition of over
17,000-MW of wind, solar, and storage resources, as well as 500-MW of advanced nuclear
power. 2025 IRP at 1. Although Staff expressed concerns in that case about aspects of the
Company's IRP conclusions, Staff did not dispute that thousands of MW of new resources must
be acquired to reliably serve future load, and that nuclear power is part of the preferred resource
portfolio.
The Company also highlights that it"has included the KU1 project in its preferred
portfolio in the 2021 IRP, 2023 IRP, and 2025 IRP, demonstrating its consistency." Application
at 9.
Accordingly, Staff believes that the Company faces sustained load growth requiring the
acquisition of thousands of MW of future resources to reliably serve its load, and that a nuclear-
powered resource has consistently been part of the preferred portfolio.
Potential Benefits
In its Application, the Company cited multiple potential benefits from this project,
including economic benefits and long-term operational benefits. Staff believes these benefits are
reasonably projected, as discussed below.
Economic Benefits
The Company provided confidential analysis that shows the PPA will reduce the Net
Power Cost("NPC") for ratepayers. Id. at 10. Staff examined the Company's basis for these
savings and the Company's calculations, which were provided in response to Staff Production
Request No. 2. Staff believes the basis is reasonable and the calculations are accurate. Although
2 Case No.PAC-E-25-12, Staff Comments at 10.
STAFF COMMENTS 4 MARCH 19, 2026

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the savings are small relative to the overall NPC, Staff believes that the PPA is economically
beneficial; therefore, it meets the waiver criteria established by the RFP Procedure.
Staff notes that the primary value of this PPA is not derived from the economic benefits.
Instead, the main value is derived from the potential operational benefits, which Staff explains in
the next section.
Operational Benefits
Staff believes that nuclear-based resources offer desirable characteristics that can provide
long-term benefits to ratepayers. These include the reliability benefit of baseload dispatchable
power, the cost and reliability benefits of expanded fuel diversity, and the benefit of carbon-free
energy for jurisdictions pursuing low-carbon emissions. Staff believes the Company's
observation is reasonable as follows:
Nuclear generation has a proven track record of reliability with very high-capacity
factors across all weather conditions and operational lifespans extending up to 80
years. This reliability becomes increasingly valuable as the Company's system
includes substantial portions of renewable resources that depend on weather
conditions, along with fossil fuel resources that face supply chain vulnerabilities.
Application at 5.
Given the current load growth, and the recent proliferation of weather-dependent
resources, reliable baseload power is becoming increasingly valuable, especially a potential 80-
year resource. To this point, the Company estimated the potential economic savings to be-
- if the PPA is extended under the current terms for 40 years. Application at 10.
Staff also believes that the additional long-term benefits identified by the Company are
reasonable. These include the insight and experience gained from integrating a nuclear power
plant, the potential for long-term power beyond the PPA duration, and the advancement of
critical national and industry-wide energy policy objectives. Application at 7.
Potential Risks
The historic barriers to nuclear resources have been runaway costs, uncertain timelines,
and the consequences of a nuclear accident. In addition to analyzing the need and economic
benefits of the KU1 nuclear project, Staff explored the risk factors associated with the project.
STAFF COMMENTS 5 MARCH 19, 2026

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IDAHO PUBLIC
UTILITIES COMMISSION
Staff believes the Company's structure of the executed PPA mitigates all three of these historic
risks, in addition to two additional site-specific risks. Staff s conclusions are summarized below.
Risk of Cost Overrun
The risk of cost overruns for nuclear projects is well-documented. Most recently,
Georgia Power placed two new nuclear power plants (Vogtle Units Three and Four) in service in
2024. The two plants were $17 billion over budget.3 However, Staff believes that Idaho
ratepayers are protected from all development cost overruns for the KU1 project.
The fundamental protection is
Application at 5. In other words, the KU1 developer bears all the cost-overrun risk. The price
the Company will pay for energy is established by the PPA and is not connected to the project
development costs. Furthermore, the Company is only obligated to pay for the energy as it is
delivered.
Through the discovery process, Staff also inquired about additional protection for
ratepayers against any future extraordinary costs related to the KU1 project, such as U.S. SFR or
TerraPower becoming insolvent or filing for bankruptcy due to a catastrophic nuclear incident.
The Company responded that PPA Sections 11 and 12 provide necessary indemnities and
liability protection for the Company, and that customers will not bear any incremental costs due
to any extraordinary future events related to the KU1 project. Company Response to Staff
Production Request No. 9.
Risk of Schedule Delay
Schedule delay is another historic risk of nuclear power. For example, the above-
mentioned Vogtle units were placed in service seven years after the planned CODA Also, the
KU1 project has already experienced delays getting to its current status, which were discussed by
s Jeff Amy,Georgia Nuclear Rebirth Arrives 7 Years Late,$17B Over Cost,https://Nnews.com/article/georgia-
nuclear-power-plant-voatle-rates-costs-75c7a4l3cda3935dd551be9l l5e88a64(last visited Mar. 13,2026).
4 Jeff Amy,Timeline:How Georgia and South Carolina Nuclear Reactors Ran So Far Off Course,
https:Hgpnews.com/article/nuclear-power-geor ig a vogtic-reactors-8fbf4la3cO4c656002a6ee8203988fad(last visited
Mar. 13,2026).
STAFF COMMENTS 6 MARCH 19, 2026

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UTILITIES COMMISSION
the Company in its 2023 and 2025 IRPs. Staff also commented on this issue in the 2025 IRP
case.5 However, based on Staff s analysis, Staff believes the Company has reasonably mitigated
the risk of schedule delay in three important ways.
First, and most importantly, the Company is treating the KU1 as a surplus resource. If
and when it comes online,
project
. 6°7 If the KU1 is delayed, the Naughton plants will continue operating the Naughton units
to ensure reliability. This means that"any delays in achieving commercial operation or
subsequent reliability issues do not result in additional costs to ratepayers." Application at 5-6.
The second mitigation for schedule delay comes from various PPA provisions. These
include , and
The scheduled COD for this PPA is ,
with an outside COD of 8
Finally, the life expectancy for the Naughton power plant should provide sufficient time
for the Company to resolve any schedule delays or to plan and implement alternative resources.
The Company does not plan to retire Naughton Unit No. I until the end of 2042, and Unit Nos. 2
and 3 are not planned to be retired anytime within the 2025 IRP planning horizon. Company
Response to Staff Production Request No. 10.
Risk of Nuclear Incidents
The risk of a nuclear incident is the third historic concern. Staff believes that this risk is
mitigated by the design of the Natrium project and by the legal liability structure of the PPA.
First, one of the primary features of Natrium's design is its fail-safe technology. The use
of a liquid metal coolant eliminates the need to operate the system at high pressure, and it
enables heat to be easily removed from the reactor if the normal heat removal process fails.9
s Case No.PAC-E-25-12—Staff Comments on page 13.
6 Application—Confidential Attachment A on page 33.
Company's Response to Staff Production Request No. 3.
a Application—Confidential Attachment A,Exhibit N.
9 Aaron Larson,Understanding TerraPower's Natrium Reactor Design and Demonstration Project Progress,
https://www.powenna,g.com/understanding terrapowers-natrium-reactor-design-and-demonstration-project-
pro rg ess/ (last visited Mar. 11,2026).
STAFF COMMENTS 7 MARCH 19, 2026

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UTILITIES COMMISSION
Second, Staff believes the Company has contractually included substantial liability
separation from the KU1 developer. Fundamentally, the Company is neither the owner nor the
operator of the KU1 project. Fin-thermore, Staff believes the PPA contains strong legal
indemnification provisions. See Company's Response to Staff Production Request No. 5.
Risk of Interconnection Costs and Constraints
The PPA proposes that the KU1 project interconnect to the Company's grid at the
Naughton interconnection. The interconnection will be expanded to accommodate the KU1, but
the overall throughput capacity will not be increased. Company Response to Staff Production
Request No. 12. Staff believes this could potentially increase costs for customers or cause
operating constraints at the interconnection. However, Staff believes the Company has mitigated
these risks as described below.
Staff verified that U.S. SFR is responsible for
Furthermore, Staff verified
, thus the Company's
operational capabilities would not be constrained in the firttre. Company Response to Staff
Production Request Nos. 12 and 13.
Risk of Scarce Cooling Water
The Company owns and operates the Viva Naughton water reservoir that cools its
Naughton power units.
Confidential Attachment B ("Water Use Agreement") outlines the terms of this agreement.
Based on the prevailing climate around Kemmerer, Wyoming, Staff believes that cooling water
for each power plant is a scarce and valuable resource and is a potential operational risk. Staff
believes this risk is reasonable considering the potential benefits of receiving a long-term
baseload resource.
10 Company's Response to Staff Production Request No. 1—Executed PPA at 41 —43.
11 Company's Response to Staff Production Request No.4.
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The volume of water in the reservoir primarily depends on seasonal runoff, which can
vary substantially from year to year.
The Water Use Agreement contains provision
Future Filings
The Company is explicitly not seeking a review or a prudence determination in this case.
Even if it were, Staff believes the project COD is too far in the future and has too many
assumptions and unknowns for Staff to determine prudence. For this and other reasons described
below, Staff recommends that the Commission(1) direct the Company to file another case to
determine the prudence of the PPA prior to the COD, and(2) direct the Company to provide
status updates as to the progress of the project relative to the current plan in each future IRP,
highlighting any potential issues that could affect reliability or cost to Idaho customers.
Given the uniqueness of this contract and the FOAK technology of the project, Staff
believes a detailed assessment of prudence is warranted and the assessment should occur as near
to the COD as possible. Without a Commission order, the Company's typical practice is to
include each PPA as a line item in the net power cost worksheets that are filed in a general rate
case ("GRC") or in the Company's Electric Cost Adjustment Mechanism ("ECAM"). Staff
believes that due to the uniqueness of this contract and resource, it may require more time to
sufficiently review than the time allowed during a GRC or the ECAM.
The Company's Waiver Applications in Other States
The Company filed similar waiver applications in three other jurisdictions including the
states of Utah, Oregon, and Wyoming. According to Staff s review, the applications in all three
states are still being processed as of this writing. Staffs analysis is summarized below.
STAFF COMMENTS 9 MARCH 19, 2026

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The State of Utah
On October 3, 2025, the Company filed its application with the Public Service
Commission of Utah, requesting a waiver from the solicitation process and requesting an order
approving a"significant energy resource decision"to enter into a PPA in Utah Docket No. 25-
035-55.12
On January 23, 2026, direct testimony was filed by the Division of Public Utilities, the
Office of Consumer Services, and Western Resource Advocates.
David Williams of the Division of Public Utilities recommended that the Commission
approve the application for a waiver under Utah Code section 54-17-501, and approve the
proposed PPA under Utah Code section 54-17-302, with the following condition: that the
Company perform a basic Integrated Resource Plan analysis comparing Natrium to an optimized
alternative portfolio,using projected costs from Workpaper 1.13
Cameron Irmas of the Office of Consumer Services recommended approval of both of the
Company's requests in the docket.14
Karl Boothman of the Western Resource Advocates stated that he did not oppose the
approval of the PPA, believed the waiver request was reasonable and recommended Company
explain how it plans to represent the costs of the KU1 under several uncertain scenarios in order
to demonstrate continued operation of a least-cost, least-risk system.15
As of February 27, 2026, the Utah Commission has not issued an order in this case.
The State of Oregon
On October 21, 2025, the Company filed its application with the Oregon Public Utility
Commission for approval of the Water Use and Conveyance Agreement and a request for a
Waiver of Competitive Bidding Rules in Docket No. UM 2408.16 On February 26, 2026,
Oregon PUC Staff filed comments with draft recommendations that the Oregon Commission
12 Utah Docket No.25-035-55,https://psc.utah.gov/2025/10/03/docket-no-25-035-55/(last visited Mar. 13,2026).
"Utah Docket No.25-035-55,Williams Direct Testimony at 29,(Jan.23,2026)
(hllps://pscdocs.utah.gov/electric/25docs/2503555/343529RdctdDrctTstmnyDavidWilliamsDPUI-23-2026.pdf(last
visited Mar 13,2026).
14 Utah Docket No.25-035-55,Irmas Direct Testimony at 12-13,(Jan.23,2026)
https://pscdocs.utah.gov/electric/25docs/2503555/343523RdctdDrctTstmnyCameronlnnasOCSI-23-2026.pdf(last
visited Mar. 13,2026).
15 Utah Docket No.25-035-55,Boothman Direct Testimony at 14, (Jan.23,2026).
16 Oregon Docket No.UM 2408,https://apps.puc.state.or.us/edockets/docketNoLgyout.asp?DocketlD=24816(last
visited Mar. 13,2026).
STAFF COMMENTS 10 MARCH 19, 2026

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issue a waiver and approve the Water Use Agreement.17 NewSun Energy LLC filed comments
recommending the Commission reject the petition for a waiver as it believes that the "good
cause" standard of the waiver requirements was not met with the documentation provided by the
Company.18 There will be an Oregon Staff report filed by April 20, 2026 and a public meeting
on April 28, 2028.
The State of Wyoming
On October 22, 2025, the Company filed its application to the Wyoming Public Service
Commission requesting an order granting the Company a waiver from the solicitation process
under Wyo. Stat. § 37-2-136(b) and acknowledgement of the Company's PPA with U.S. SFR,
for nuclear energy from the KU1 project. Record No. 17991.19 On February 23, 2026, the
Company filed an erratum to the Link direct testimony. As of February 27, 2026, there have
been no further public updates.
Additionally, in Record No. 17989, the Company filed an application for approval of an
asset sale based on the water rights use and conveyance agreement related to and required for the
PPA to take full effect.20
STAFF RECOMMENDATION
Staff recommends that the Commission:
1. Grant a waiver from the normal RFP process;
2. Direct the Company to file a separate case to determine the prudence of the PPA prior
to the COD; and
3. Direct the Company to provide status updates on the progress of the project relative to
the current plan in each future IRP.
17 Oregon Docket No.UM 2408, Staff Comments at 2(Feb.26,2026)
https:Hedocs.puc.state.or.us/efdocs/HAC/um2408hac344164037.pdf(last visited Mar. 13,2026).
18 Oregon Docket No.UM 2408,NewSun Energy LLC Comments at 4(Feb.26,2026).
"Wyoming PSC Record No. 17991,
https://dms.Mo.gov/(S(rOdkzafgpanhxdldh3sEy2h2))/ManaaeDocket.aspx?DocketId=Vg6oRfOTtylOECGsGfCiEIz
Anr%2bBgv_gwXKUkltVnYm °/g o3d(last visited Mar. 13,2026).
20 Wyoming PSC Record No. 17989 WY Public Service Commission Docket Management S. ste(last visited Mar.
13,2026)
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UTILITIES COMMISSION
Respectfully submitted this 19th day of March 2026.
Jeffrey R. Loll
Deputy Attorney General
Technical Staff. Shubhra Deb Paul, Matt Suess, Kimberly Loskot
I:\Utility\UMISC\COMMENTS\PAC-E-25-20 Comments-Redacted.docx
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UTILITIES COMMISSION
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 19th DAY OF MARCH 2O26,
SERVED THE FOREGOING REDACTED COMMENTS OF THE COMMISSION
STAFF, IN CASE NO. PAC-E-25-20, BY E-MAILING A COPY THEREOF, TO THE
FOLLOWING:
MARK ALDER DATA REQUEST RESPONSE CENTER
IDAHO REGULATORY AFFAIRS MGR. E-MAIL ONLY:
ROCKY MOUNTAIN POWER datarequest(d),pacificorp.com
1407 WEST NORTH TEMPLE STE 330
SALT LAKE CITY UT 84116
E-MAIL: mark.alderkpacificorp.com
JOE DALLAS, ASSISTANT GEN'L COUNSEL
TIFFANIE A. ELLIS-BURKE, ATTORNEY
825 NE MULTNOMAH, SUITE 2000
PORTLAND, OR 97232
E-MAIL: joseph.dallaskpacificorp.com
tiffanie.ellis-burke(&,pacificorp.com
PATRICIA JORDAK, SECRETARY
CERTIFICATE OF SERVICE