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HomeMy WebLinkAbout20260320Compliance Filing.pdf "4%611-w@IQAW POWER. DONOVAN WALKER RECEIVED Lead Counsel MARCH 20, 2026 dwalker(cDidahopower.com IDAHO PUBLIC UTILITIES COMMISSION March 20, 2026 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg 8, Suite 201-A (83714) PO Box 83720 Boise, Idaho 83720-0074 Re: Case No. IPC-E-25-10 Idaho Power Company's Application for Approval of a Power Purchase Agreement and an Energy Storage Agreement with Crimson Orchard Solar LLC Dear Commission Secretary: Attached for electronic filing is Idaho Power Company's ("Idaho Power") Compliance Filing in regard to the above-referenced matter. If you have any questions about any of the aforementioned documents, please do not hesitate to contact me. Very truly yours, Donovan E. Walker DEW:sg Attachment 1221 W. Idaho St(83702) P.O. Box 70 Boise, ID 83707 04% IORIHO POWER. 2028 REQUEST FOR PROPOSALS FINAL SHORTLIST STATUS UPDATE March 20, 2026 Pursuant to Idaho Public Utilities Commission ("Commission") Order No. 36881 in Case No. IPC-E- 25-10, Idaho Power Company ("Idaho Power" or "Company") hereby provides a status update regarding the 2028 Request for Proposals ("RFP") final shortlist of projects. In its order, the Commission noted concerns raised in the proceeding "about how anticipated load increases affect the Company's resource-acquisition process and the types of resources ultimately chosen," citing apprehensions that Idaho Power's obligation to serve customers "may be constrained by the procurement and resource selection process." As such, the Commission directed the Company to provide an update of the status of resources identified on the final shortlist of bids received through the then current resource solicitation, the 2028 RFP, which solicited bid for resources beginning in 2028 and beyond. 2028 RFP Resource Selections Following identification in the 2023 Integrated Resource Plan ("IRP") of incremental capacity needs beginning in 2028 and growing each year, Idaho Power initiated the competitive solicitation for the acquisition of resources, conducted through the issuance of the 2028 RFP. The competitive RFP process, in accordance with the Oregon Public Utility Commission's ("OPUC") competitive bidding rules for which the Company was required to follow at the time,' allowed Idaho Power to access the broader peak capacity and energy market across a spectrum of potential resources and developers to obtain the best resources for Idaho Power's customers. Ultimately, the OPUC approved the Company's final shortlist of bids for both 2028 and 2029.2 Commission-Approved 2028 RFP Resources Since acknowledgement by the OPUC of the final shortlists of 2028 RFP bids, in accordance with the competitive bidding rules the Company was required to follow at the time, Idaho Power has received approval from the Commission to initiate the procurement of two resources from the final shortlist: (1) approval of the Power Purchase Agreement associated with the 80 megawatt ("MW") Black Creek solar facility,3 and (2) a Certificate of Public Convenience and Necessity ("CPCN") for an expansion at the Bennett Mountain Power Plant to include 167 MW of natural gas-fueled reciprocating engines.4 2028 RFP Resources Pending Approval In addition to the Commission-approved resources from the final shortlists of 2028 RFP bids, the Company has filed a request with Commission for a CPCN for the South Hills Power Plant, a cost- effective natural gas-fueled facility providing up to 222 MW of nameplate generation from reciprocating engines ("South Hills") and a CPCN for the Peregrine Power Plant, a cost-effective natural gas-fueled facility providing 430 MW of nameplate generation ("Peregrine") from a simple ' Case No. IPC-E-10-03, Order No. 32745. 2 Docket UM 2317. 3 Case No. IPC-E-25-27, Order No. 36954. 4 Case No. IPC-E-25-29, Order No. 36958. 2028 RFP Status Report 1 Case No. IPC-E-25-10 cycle combustion turbine.5 South Hills was a benchmark bid identified on the final shortlist, originally named Milner and identified as a battery storage facility, however following changes in federal legislation and executive actions, as well as identification in the 2025 IRP of the need for natural-gas resources, the Internal Bid Team indicated the transition of the project to a natural gas generation resource instead. When compared to other 2028 RFP bids, South Hills was more cost-effective than the next best feasible alternative. The 2028 RFP also solicited resources with a commercial operation date by June 1, 2030. However, due to the decrease in the Effective Load Carrying Capability("ELCC")of new solar projects and the limited ELCC of wind resources, only the battery storage projects had the potential to fill the identified capacity needs. Due to the concerns with the economics of the battery storage projects and their ability to meet the identified capacity deficiency, as well as the 2025 IRP identification of continued increased peak load and the need for flexible generation resources, Idaho Power began investigating an alternative gas resource solution, ultimately identifying Peregrine as a resource that could more economically meet the Company's resource needs. Uncominq 2028 RFP Resource Acquisitions In addition to the above referenced 2028 RFP projects, Idaho Power is currently negotiating the agreements associated with the second ranked project on the final short list of 2029 bids, a combined solar and battery storage facility. The Company continues active negotiations with the remaining feasible battery storage facility projects identified through the 2028 RFP competitive solicitation process. Conclusion Idaho Power conducted an extensive competitive bidding process following the resource procurement rules of the OPUC, as required by the Idaho Commission at that time, employing a fair and competitive RFP process that spanned nearly 18-months, in an effort to acquire resources necessary to meet the identified capacity deficiencies. The resources the Company has acquired, or is in the process of acquiring, through the 2028 RFP process are necessary and required to timely meet Idaho Power's resource needs and to continue to provide reliable and adequate service to the Company's customers beginning in 2028 and into the future. Idaho Power is prepared to discuss this report at a formally noticed meeting as contemplated in Order No. 36881. 5 Case No. IPE-E-26-04. 2028 RFP Status Report 2 Case No. IPC-E-25-10