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HomeMy WebLinkAbout20260406Notice_of_Application_Order_No_36994.pdf Office of the Secretary Service Date April 6,2026 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-26-04 COMPANY'S APPLICATION FOR ) CERTIFICATES OF PUBLIC ) NOTICE OF APPLICATION CONVENIENCE AND NECESSITY FOR THE ) SOUTH HILLS AND PEREGRINE POWER ) NOTICE OF INTERVENTION PLANTS AND FOR AN ASSOCIATED ) DEADLINE ACCOUNTING ORDER ) ORDER NO. 36994 On March 10, 2026, Idaho Power Company ("Company") applied to the Idaho Public Utilities Commission ("Commission") requesting: (1) a Certificate of Public Convenience and Necessity("CPCN") for the South Hills Power Plant, a natural gas-fueled facility providing up to 222 megawatts ("MW") of nameplate generation to meet an identified capacity deficit in 2029 ("South Hills"); (2) a CPCN for the Peregrine Power Plant, a natural gas-fueled facility providing 430 MW of nameplate generation to meet an identified capacity deficit in 2030("Peregrine"); and (3)an order confirming the Company's application of accrual of Allowance for Funds Used During Construction ("AFUDC") for South Hills and Peregrine to coincide with initial procurement activities for the natural gas-fueled facilities. The Commission now issues this Notice of Application and Notice of Intervention setting deadlines for interested persons to intervene. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company represents that South Hills is a benchmark resource, that will consist of"twelve, fast-ramping, natural gas-fueled reciprocating engines," that will provide up to 222 MW of generation. Application at 10. The Company represents South Hills' commercial operation date is June 1, 2029. Id. YOU ARE FURTHER NOTIFIED that the Company represents that Peregrine will provide 430 MW of nameplate generation and the Company will use "H Frame simple cycle combustion turbine technology" at the plant. Id. The Company represents that Peregrine is accessible from a public road and is located near existing electric and natural gas infrastructure. Id. The Company represents Peregrine's commercial operation date is June 1, 2030.Id. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 36994 1 YOU ARE FURTHER NOTIFIED that the Company represents it determined that South Hills and Peregrine are the least-cost, least-risk resource alternatives, capable of addressing capacity deficiencies.Id. at 11. YOU ARE FURTHER NOTIFIED that the Company represents its 2023 Integrated Resource Plan ("IRP") and 2025 IRP outline incremental capacity needs in 2029 and 2030. Id. at 4. The Company represents its recent assessment on system reliability identified a capacity deficit of 236 MW in 2029 and 352 MW in 2030.Id. YOU ARE FURTHER NOTIFIED that the Company initiated a Request for Proposal ("RFP")process on February 29, 2024, that requested bids for wind, solar, natural gas, or battery storage resources that could bring incremental energy or capacity to the system in the summer of 2028.Id. at 5. YOU ARE FURTHER NOTIFIED that the Company represents the RFP process was done in accordance with the resource procurement guidelines codified in Oregon Administrative Rules 860-089-0010 et seq.Id. at 7. YOU ARE FURTHER NOTIFIED that the Company represents that because of the decrease/lower Effective Load Carrying Capacity of solar and wind resources, and the economic concerns for battery energy storage system projects, it identified South Hills and Peregrine as potential resource additions to fill capacity deficiencies.Id. at 10. YOU ARE FURTHER NOTIFIED that the Company represents it is requesting the Commission authorize its accrual of AFUDC funds because its expenditure for the Peregrine turbines and upcoming expenditure for the South Hills engines are evidence o£ (1) capital expenditures; and(2)that procurement is required to begin constructing the projects,which aligns with the Federal Energy Regulatory Commission's guidance on when AFUDC can start to accrue. Id. at 13. YOU ARE FURTHER NOTIFIED that the Company does not seek binding ratemaking treatment for South Hills and Peregrine, and it will submit a future filing for the cost recovery of these projects. Id. at 14. YOU ARE FURTHER NOTIFIED that the Application is available for public inspection during regular business hours at the Commission's office. The Application is also available on the NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 36994 2 Commission's website at www.puc.idaho.gov. Click on the `ELECTRIC" icon, select "Open Cases," and click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq. NOTICE OF INTERVENTION DEADLINE YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to obtain parties' rights of participation must file a Petition to Intervene with the Commission pursuant to this Commission's Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and -.073. Persons who wish to intervene as a party must file a Petition to Intervene no later than 21 days after the date of service of this Order. Such persons shall also provide the Commission Secretary with their email address to facilitate further communications. After the intervention deadline runs, the Commission Secretary shall issue a Notice of Parties that identifies the parties and assigns exhibit numbers to each party. Once the Notice of Parties has issued, Commission Staff shall informally confer with the Company and any intervening parties about how to further process this case and shall then report back to the Commission on a proposed case schedule. YOU ARE FURTHER NOTIFIED that persons who would like to present their views without parties' rights of participation and cross-examination do not have to intervene but may present their views by submitting written comments to the Commission. YOU ARE FURTHER NOTIFIED that the following people are designated as the Company's representatives in this matter: Donovan E. Walker Tim Tatum Lead Counsel Connie Aschenbrenner Idaho Power Company Idaho Power Company 1221 West Idaho Street 83702 1221 West Idaho Street 83702 P.O. Box 70 P.O. Box 70 Boise, ID 83707 Boise, ID 83707 dwalker(d),idahopower.com ttatumgidahopower.com docketskidahopower.com caschenbrenner&idahopower.com NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 36994 3 ORDER IT IS HEREBY ORDERED that persons desiring to intervene in this matter must file a Petition to Intervene no later than 21 days from the service date of this Order. Once the deadline has passed, the Commission Secretary shall prepare and issue a Notice of Parties. IT IS FURTHER ORDERED that,after the Notice of Parties has issued, Commission Staff shall confer with the parties regarding a procedural schedule for this matter including,if necessary, a hearing in this matter. IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 61h day of April, 2026. G EDWARD LODGE, PR „ DENT /r_�- gt�� JO R. HAMMOND JR., COMMISSIONER DAYN HAKDIE, COMMISSIONER ATTEST: Monic Ba o - nchez Commission Secretary I:\Legal\ELECTRIC\IPC-E-26-04_CPCNs\orders\IPCE2604_ntc_app_int_kr.docx NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 36994 4