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HomeMy WebLinkAboutCompliance Filing.tifIDAHO POWER COMPANY’S COMPLIANCE FILING - 1 DONOVAN E. WALKER (ISB No. 5921) LISA C. LANCE (ISB No. 6241) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2664 Facsimile: (208) 388-6936 dwalker@idahopower.com llance@idahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT WITH FOSSIL GULCH WIND PARK, LLC FOR THE SALE AND PURCHASE OF ELECTRIC ENERGY FROM THE FOSSIL GULCH WIND PARK. ) ) ) ) ) ) ) ) ) CASE NO. IPC-E-25-31 IDAHO POWER COMPANY’S COMPLIANCE FILING Idaho Power Company (“Idaho Power” or “Company”) hereby respectfully submits to the Idaho Public Utilities Commission (“Commission”) the accompanying Compliance Filing in compliance with Final Order No. 36956 in the above-captioned case. I. INTRODUCTION AND BACKGROUND On September 30, 2025, Idaho Power filed an Application requesting approval of an Energy Sales Agreement (“ESA” or “Agreement”) and Interim Agreement with Fossil IDAHO POWER COMPANY’S COMPLIANCE FILING - 2 Gulch Wind Park, LLC (“Seller”) for the purchase of electric energy from the Fossil Gulch Wind Park (“Project” or “Facility”) located in Twin Falls County, Idaho. On March 5, 2026, the Commission issued Final Order No. 36956 approving the ESA and the associated Interim Agreement, subject to the Company submitting a compliance filing containing an updated ESA that incorporates the following specific modifications directed by the Commission: 1. Recalculate the avoided cost of energy and the avoided cost of capacity using the AURORA model from the Company’s 2025 Integrated Resource Plan (“IRP”), based on the Facility’s updated generation profile and reflecting resource changes of high certainty as of September 26, 2025; 2. Reestablish the Maximum Capacity Amount by either limiting it to 10 megawatts (“MW”) or adopting a bifurcated rate structure; 3. Correct the calculation description in Article 6.4.4, update the definition of Surplus Energy, remove the modification language included in Appendix B, and correct the error in Appendix E. This Compliance Filing and the First Amendment to the ESA, submitted herewith as Attachment 1, address each of these directives. II. RECALCULATION OF AVOIDED COST OF ENERGY AND CAPACITY Consistent with Order No. 36956, Idaho Power has recalculated the avoided cost of energy and avoided cost of capacity using the AURORA model from the Company’s 2025 IRP. The recalculations are based on the Facility’s updated generation profile and reflect resource changes of high certainty as of September 26, 2025, the date the parties IDAHO POWER COMPANY’S COMPLIANCE FILING - 3 executed the ESA. These revised avoided cost inputs are incorporated into the ESA via the First Amendment submitted alongside this Compliance Filing. III. MAXIMUM CAPACITY AMOUNT AND BIFURCATED RATE STRUCTURE Pursuant to Order No. 36956, the Company and Seller have elected to adopt a bifurcated rate structure, rather than reduce the Maximum Capacity Amount to 10 MW. The bifurcated rate structure reflected in the updated ESA compensates generation up to 10 MW at a rate that includes the avoided cost of energy, the avoided cost of capacity, and applicable wind integration charges. Generation attributable to the additional 0.5 MW above the 10 MW threshold is compensated at a separate rate that includes the avoided cost of energy and applicable wind integration charges, without the avoided cost of capacity component. The bifurcated rate is applied on an hourly basis. For each billable hour, the Company totals the Facility’s delivered energy. The portion of total hourly delivered energy up to 10 MW is paid at the full avoided cost of energy, avoided cost of capacity, and wind integration charge. Any hourly delivered energy in excess of 10 MW is paid at the bifurcated rate, which excludes the avoided cost of capacity. This structure ensures any energy delivered above 10 MW does not receive capacity compensation prior to the applicable capacity deficiency date (June 2027), consistent with the Staff’s recommendation and the Commission’s directive in Order No. 36956. Effective June 1, 2027, the Facility will receive a rate that includes the avoided cost of energy, avoided cost of capacity, and wind integration charge for all generation. IDAHO POWER COMPANY’S COMPLIANCE FILING - 4 IV. CONTRACTUAL CORRECTIONS REQUIRED BY ORDER NO. 36956 In addition to the revisions described above, the First Amendment submitted with this Compliance Filing incorporates the contractual modifications directed by the Commission in Order No. 36956. Article 6.4.4 has been revised to clarify that shortfall damages are calculated based on 85 percent of the Calculated Net Energy Amount. The definition of Surplus Energy has been updated by removing Item 1. The modification language included in Appendix B has been removed, and Appendix E has been corrected by replacing the reference to “item d” with “item 4.” V. REQUEST FOR RELIEF The Company respectfully requests that the Commission approve the Amended Energy Sales Agreement, submitted in compliance with the Commission’s directives in Final Order No. 36956. Respectfully submitted this 4th day of May 2026. LISA C. LANCE Attorney for Idaho Power Company IDAHO POWER COMPANY’S COMPLIANCE FILING - 5 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 4th day of May 2026, I served a true and correct copy of the within and foregoing Idaho Power Company’s Compliance Filing upon the following named parties by the method indicated below, and addressed to the following: IPUC COMMISSION STAFF Adam Triplett Deputy Attorneys General Idaho Public Utilities Commission P.O. Box 83720 Boise, ID 83720-0074 Hand Delivered _ U.S. Mail Overnight Mail FAX X Email – adam.triplett@puc.idaho.gov ________________________________ Stacy Gust, Regulatory Administrative Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-25-31 IDAHO POWER COMPANY ATTACHMENT 1 Energy Sales Agreement Project: 20251001 Fossil Gulch Wind Park First Amendment - Page 1 of 9 FIRST AMENDMENT TO THE ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COMPANY AND FOSSIL GULCH WIND PARK, LLC This First Amendment of the Energy Sales Agreement (“ESA” or “Agreement”) is entered into on this ____ day of ________ 2026, by and between Idaho Power Company, an Idaho corporation (“Idaho Power”, “Company”, or “Buyer”), and Fossil Gulch Wind Park, LLC (“Seller”), (individually a “Party” and collectively the “Parties”). WHEREAS, Parties entered into an ESA under the Public Utilities Regulatory Policies Act of 1978 (“PURPA”) on September 26, 2025, for the purchase and sale of generation produced by the Fossil Gulch Wind Park (“Facility”) with an Initial Term of two (2) years from the Scheduled Operation Date, which was approved by the Idaho Public Utilities Commission’s (“IPUC”) on March 5, 2026, in Order No. 36956 subject to Idaho Power submitting a compliance filing containing an updated ESA that incorporates the modifications described in Order No. 36956; and WHEREAS, Order No. 36956 directed that: (1) the avoided cost of energy and capacity be recalculated using the AURORA model from the Company’s 2025 IRP, including resource changes of high certainty as of September 26, 2025, and based upon the Facility’s updated generation profile; (2) in establishing the Maximum Capacity Amount, the Company and Seller have the option to either set the amount at the original 10 MW or adopt the bifurcated rate design described by Staff; (3) the calculation description in Article 6.4.4 be corrected making shortfall damages based on 85% of the Calculated Net Energy Amount; (4) the definition of Surplus Energy be updated by removing Item 1 of the definition; (5) the modification language included in Appendix B be removed; and (6) an error in Appendix E be corrected by replacing “item d” with “item 4.” WHEREAS, the Parties have agreed to revise the ESA to incorporate the modifications directed by Order No. 36956. NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intended to be legally bound, the Parties hereto agree as follows: 1. Incorporation of Recitals. The above-stated recitals are incorporated into and made a part of this First Amendment by this reference to the same extent as if these recitals were set forth in full at this point. 2. Amendment. The agreement is hereby amended and revised as follows (deletions in strikethrough, additions in underline, all in red text): Docusign Envelope ID: 14048CFF-6024-805B-82C4-D0450CE2DFED 29th April Energy Sales Agreement Project: 20251001 Fossil Gulch Wind Park First Amendment - Page 2 of 9 A. Recalculation of Avoided Cost of Energy and Capacity, Updated Generation Profile, and Election to use Bifurcated Rates. The avoided cost of energy and capacity have been recalculated using the 2025 Integrated Resource Plan (“IRP”) inputs into the AURORA model, instead of the 2023 IRP inputs, including all resource changes of high certainty as of September 26, 2025, and based on the Facility’s updated generation profile as determined by the Seller. Additionally, the Seller elected a Maximum Capacity Amount of 10.5 MW and the adoption of a bifurcated rate that includes the avoided cost of energy and capacity and wind integration charges for hourly generation up to 10 megawatt hours (MWh), and a second rate of avoided cost of energy and wind integration charges without avoided cost of capacity for any hourly generation above 10 MWhs, until the first capacity deficit date of June 2027. These changes are hereby incorporated into the ESA by the Amended Table 1 in Article 6.2 and the Amended Appendix G as set forth below: Table 1 Initial Year Monthly Net Energy Amounts Month kWh January 2,124,689 2,163,501 February 2,642,414 2,253,280 March 2,894,202 2,428,546 April 2,796,527 2,600,583 May 2,014,372 2,218,964 June 1,552,145 1,883,951 July 1,178,857 1,344,186 August 1,411,821 1,368,982 September 1,483,324 1,518,647 October 1,840,740 1,807,793 November 1,771,591 2,093,483 December 2,361,486 1,992,641 Appendix G “Monthly Purchase Prices” should be deleted in its entirety and replaced with the following Appendix G Amended Monthly Purchase Prices and Appendix G Amended Bifurcated Monthly Purchase Prices: Docusign Envelope ID: 14048CFF-6024-805B-82C4-D0450CE2DFED Energy Sales Agreement Project: 20251001 Fossil Gulch Wind Park First Amendment - Page 3 of 9 APPENDIX G Monthly Purchase Prices Month-Year Base Energy Heavy Load Purchase Price Components Base Energy Light Load Purchase Price Components Integration Charge Energy Price Component Capacity Price Component Energy Price Component Capacity Price Component (Mills/kWh) (Mills/kWh) (Mills/kWh) (Mills/kWh) (Mills/kWh) Oct-25 $31.30 $7.56 $27.77 $7.56 $0.95 Nov-25 $37.55 $7.56 $36.14 $7.56 $0.95 Dec-25 $62.20 $7.56 $57.60 $7.56 $0.95 Jan-26 $35.88 $7.75 $33.18 $7.75 $0.98 Feb-26 $45.21 $7.75 $33.99 $7.75 $0.98 Mar-26 $16.99 $7.75 $13.15 $7.75 $0.98 Apr-26 $10.00 $7.75 $14.56 $7.75 $0.98 May-26 $17.79 $7.75 $13.67 $7.75 $0.98 Jun-26 $37.60 $7.75 $24.56 $7.75 $0.98 Jul-26 $58.47 $7.75 $45.37 $7.75 $0.98 Aug-26 $58.27 $7.75 $46.65 $7.75 $0.98 Sep-26 $47.46 $7.75 $41.15 $7.75 $0.98 Oct-26 $39.34 $7.75 $33.51 $7.75 $0.98 Nov-26 $46.67 $7.75 $39.42 $7.75 $0.98 Dec-26 $56.25 $7.75 $51.66 $7.75 $0.98 Jan-27 $39.29 $7.96 $44.22 $7.96 $1.00 Feb-27 $35.16 $7.96 $43.21 $7.96 $1.00 Mar-27 $17.20 $7.96 $23.24 $7.96 $1.00 Apr-27 $7.87 $7.96 $9.89 $7.96 $1.00 May-27 $8.84 $7.96 $13.74 $7.96 $1.00 Jun-27 $22.60 $7.96 $16.05 $7.96 $1.00 Jul-27 $42.95 $7.96 $44.18 $7.96 $1.00 Aug-27 $43.30 $7.96 $44.49 $7.96 $1.00 Sep-27 $39.01 $7.96 $37.97 $7.96 $1.00 Oct-27 $28.04 $7.96 $32.53 $7.96 $1.00 Nov-27 $40.97 $7.96 $45.49 $7.96 $1.00 Dec-27 $57.07 $7.96 $54.65 $7.96 $1.00 Jan-28 $35.50 $8.13 $42.37 $8.13 $1.03 Feb-28 $27.86 $8.13 $24.69 $8.13 $1.03 Mar-28 $7.43 $8.13 $11.88 $8.13 $1.03 Docusign Envelope ID: 14048CFF-6024-805B-82C4-D0450CE2DFED Energy Sales Agreement Project: 20251001 Fossil Gulch Wind Park First Amendment - Page 4 of 9 APPENDIX G Amended Monthly Purchase Prices (For Hourly Generation Up To 10 MW) Month-Year Base Energy Heavy Load Purchase Price Components Base Energy Light Load Purchase Price Components Integration Charge Energy Price Component Capacity Price Component Energy Price Component Capacity Price Component (Mills/kWh) (Mills/kWh) (Mills/kWh) (Mills/kWh) (Mills/kWh) Oct-25 N/A N/A N/A N/A N/A Nov-25 N/A N/A N/A N/A N/A Dec-25 N/A N/A N/A N/A N/A Jan-26 N/A N/A N/A N/A N/A Feb-26 N/A N/A N/A N/A N/A Mar-26 N/A N/A N/A N/A N/A Apr-26 $5.80 $9.16 $5.94 $9.16 $0.98 May-26 $8.96 $9.16 $12.06 $9.16 $0.98 Jun-26 $27.07 $9.16 $26.21 $9.16 $0.98 Jul-26 $37.60 $9.16 $35.73 $9.16 $0.98 Aug-26 $36.21 $9.16 $35.65 $9.16 $0.98 Sep-26 $32.94 $9.16 $33.40 $9.16 $0.98 Oct-26 $32.16 $9.16 $33.42 $9.16 $0.98 Nov-26 $38.96 $9.16 $37.99 $9.16 $0.98 Dec-26 $42.84 $9.16 $40.58 $9.16 $0.98 Jan-27 $38.36 $9.38 $38.02 $9.38 $1.00 Feb-27 $48.94 $9.38 $49.30 $9.38 $1.00 Mar-27 $13.04 $9.38 $15.25 $9.38 $1.00 Apr-27 $9.50 $9.38 $7.37 $9.38 $1.00 May-27 $10.45 $9.38 $16.72 $9.38 $1.00 Jun-27 $20.28 $9.38 $23.83 $9.38 $1.00 Jul-27 $35.90 $9.38 $34.81 $9.38 $1.00 Aug-27 $38.07 $9.38 $37.13 $9.38 $1.00 Sep-27 $39.74 $9.38 $42.38 $9.38 $1.00 Oct-27 $33.22 $9.38 $34.44 $9.38 $1.00 Nov-27 $43.31 $9.38 $41.99 $9.38 $1.00 Dec-27 $49.10 $9.38 $46.64 $9.38 $1.00 Jan-28 $43.22 $9.57 $44.21 $9.57 $1.03 Feb-28 $33.71 $9.57 $36.09 $9.57 $1.03 Mar-28 $19.66 $9.57 $27.07 $9.57 $1.03 Docusign Envelope ID: 14048CFF-6024-805B-82C4-D0450CE2DFED Energy Sales Agreement Project: 20251001 Fossil Gulch Wind Park First Amendment - Page 5 of 9 • Pricing before April 2026 is Not Applicable (N/A). APPENDIX G Amended Bifurcated Monthly Purchase Prices (For Hourly Generation Above 10 MW up to 10.5 MW) Month-Year Base Energy Heavy Load Purchase Price Components Base Energy Light Load Purchase Price Components Integration Charge Energy Price Component Capacity Price Component Energy Price Component Capacity Price Component (Mills/kWh) (Mills/kWh) (Mills/kWh) (Mills/kWh) (Mills/kWh) Oct-25 N/A N/A N/A N/A N/A Nov-25 N/A N/A N/A N/A N/A Dec-25 N/A N/A N/A N/A N/A Jan-26 N/A N/A N/A N/A N/A Feb-26 N/A N/A N/A N/A N/A Mar-26 N/A N/A N/A N/A N/A Apr-26 $5.80 N/A $5.94 N/A $0.98 May-26 $8.96 N/A $12.06 N/A $0.98 Jun-26 $27.07 N/A $26.21 N/A $0.98 Jul-26 $37.60 N/A $35.73 N/A $0.98 Aug-26 $36.21 N/A $35.65 N/A $0.98 Sep-26 $32.94 N/A $33.40 N/A $0.98 Oct-26 $32.16 N/A $33.42 N/A $0.98 Nov-26 $38.96 N/A $37.99 N/A $0.98 Dec-26 $42.84 N/A $40.58 N/A $0.98 Jan-27 $38.36 N/A $38.02 N/A $1.00 Feb-27 $48.94 N/A $49.30 N/A $1.00 Mar-27 $13.04 N/A $15.25 N/A $1.00 Apr-27 $9.50 N/A $7.37 N/A $1.00 May-27 $10.45 N/A $16.72 N/A $1.00 Jun-27 $20.28 $9.38 $23.83 $9.38 $1.00 Jul-27 $35.90 $9.38 $34.81 $9.38 $1.00 Aug-27 $38.07 $9.38 $37.13 $9.38 $1.00 Sep-27 $39.74 $9.38 $42.38 $9.38 $1.00 Oct-27 $33.22 $9.38 $34.44 $9.38 $1.00 Nov-27 $43.31 $9.38 $41.99 $9.38 $1.00 Dec-27 $49.10 $9.38 $46.64 $9.38 $1.00 Jan-28 $43.22 $9.57 $44.21 $9.57 $1.03 Feb-28 $33.71 $9.57 $36.09 $9.57 $1.03 Docusign Envelope ID: 14048CFF-6024-805B-82C4-D0450CE2DFED Energy Sales Agreement Project: 20251001 Fossil Gulch Wind Park First Amendment - Page 6 of 9 Month-Year Base Energy Heavy Load Purchase Price Components Base Energy Light Load Purchase Price Components Integration Charge Energy Price Component Capacity Price Component Energy Price Component Capacity Price Component (Mills/kWh) (Mills/kWh) (Mills/kWh) (Mills/kWh) (Mills/kWh) Mar-28 $19.66 $9.57 $27.07 $9.57 $1.03 • Pricing before April 2026 and Capacity Price before June 2027 is Not Applicable (N/A). B. The Calculation Description in Article 6.4.4 is hereby amended as follows: If the current month’s Mechanical Availability is less than the Mechanical Availability Guarantee, damages shall be equal to: ((85 percent of the The month’s Calculated Net Energy Amount) minus the month’s actual Net Energy deliveries) multiplied by the Availability Shortfall Price. C. The definition of Surplus Energy in Article 1.42 is hereby amended as follows: (1) All Net Energy produced by the Seller’s Facility and delivered by the Facility to the Idaho Power electrical system that exceeds the Nameplate Capacity of the Facility. Deliveries above the Facility’s Nameplate Capacity solely for the purpose of accommodating hourly scheduling in whole MWs by a third-party transmission provider shall not be considered Surplus Energy as described within this paragraph 1.42 item 1 or (2) All Net Energy produced by the Seller’s Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. D. Appendix B, Article B-1, is hereby amended to remove the modification language as follows: The Seller’s Facility is described as: Seven (7) – 1.5 MW 77 SLE GE Wind Turbines. Facility Nameplate Capacity: 10.5 MW Individual Generator Power Factor: Leading 0.9, Lagging 0.9 Docusign Envelope ID: 14048CFF-6024-805B-82C4-D0450CE2DFED Energy Sales Agreement Project: 20251001 Fossil Gulch Wind Park First Amendment - Page 7 of 9 Qualifying Facility Category (Small Power Production or Cogeneration): Small Power Production Primary Energy Source (Hydro, Wind, Solar, Biomass, Waste, Geothermal): Wind Fueled or Non-Fueled Rate (Generator primarily fueled with fossil or non-fossil fuel): Non-Fueled Any modifications to the Facility, including but not limited to the generator or turbine, that 1) increases or decreases the Facility Nameplate Capacity, or 2) changes the Qualifying Facility Category, or 3) changes the Primary Energy Source or 4) changes to the generator fuel and subsequently the Fueled Rate or Non-Fueled Rate, will require a review of the Agreement terms, conditions and pricing. Idaho Power, at its sole determination, may adjust the pricing or terminate the Agreement. If the Agreement is terminated because of said modifications, the Seller will be responsible for any Termination Damages. E. Appendix E Wind Energy Production Forecasting Item 2 is hereby amended as follows: 2) During the first Contract Year, as the value of the one-tenth percent (0.1%) cap of the Facilities total energy payments will not be known until the first Contract Year is complete, Idaho Power will deduct the Facility’s calculated share of the Wind Energy Production Forecasting costs specified in item d 4 each month during the first Contract Year and subsequently refund any overpayment (payments that exceed the cap) in equal monthly amounts over the ensuing Contract Year. 3. Commission Approval. The obligations of the Parties under this First Amendment are subject to the IPUC’s approval of this First Amendment, and such approval being upheld on appeal, if any, by a court of competent jurisdiction. The Parties will submit this First Amendment to the IPUC and request approval or rejection in its entirety. 4. Effect of Amendment. Except as expressly amended by this First Amendment, the Agreement, as amended, shall remain in full force and effect. 5. Capitalized Terms. All capitalized terms used in this First Amendment and not defined herein shall have the same meaning as used in the Agreement, as amended. 6. Scope of Amendment. This First Amendment shall be binding upon and inure to the benefit of the Parties hereto, and their respective heirs, executors, administrators, successors, and assigns, who are obligated to take any action which may be necessary or proper to carry out the purpose and intent thereof. 7. Authority. Each Party represents and warrants that (i) it is validly existing and in good standing in the state in which it is organized, (ii) it is the proper party to amend the Agreement, and (iii) it has the requisite authority to execute this First Amendment. Docusign Envelope ID: 14048CFF-6024-805B-82C4-D0450CE2DFED Energy Sales Agreement Project: 20251001 Fossil Gulch Wind Park First Amendment - Page 8 of 9 8. Counterparts. This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which taken together shall constitute a single instrument. Docusign Envelope ID: 14048CFF-6024-805B-82C4-D0450CE2DFED Energy Sales Agreement Project: 20251001 Fossil Gulch Wind Park First Amendment - Page 9 of 9 IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be duly executed as of the date above written. FOSSIL GULCH WIND PARK, LLC By: _________________________________ Name: Olivier Duguet Title: CEO Date: ________________________________ IDAHO POWER COMPANY By: _________________________________ Name: Ryan Adelman Title: Vice President of Power Supply Date: ________________________________ Docusign Envelope ID: 14048CFF-6024-805B-82C4-D0450CE2DFED 4/29/2026 4/29/2026