20260415Application.pdf

HIQAW POWER.
RECEIVED
LISA C. LANCE April 15, 2026
Corporate Counsel IDAHO PUBLIC
IlanceC�idahopower.com UTILITIES COMMISSION
April 15, 2026
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, Idaho 83714
Re: Case No. IPC-E-26-12
Neal Hot Springs Project
Idaho Power Company's Application for Approval of the Third Amendment to
the Power Purchase Agreement Between Idaho Power Company and USG
Oregon, LLC
Dear Commission Secretary:
Attached for electronic filing, please find Idaho Power Company's Application in
the above-entitled matter.
If you have any questions about the attached documents, please do not hesitate
to contact me.
Sincerely,
X� c",&""_
Lisa C. Lance
LCL:cd
Attachments
1221 W. Idaho St(83702)
P.O. Box 70
Boise, ID 83707

LISA C. LANCE (ISB No. 6241)
DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
Ilance idahopower.com
Attorney for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-26-12
APPROVAL OF THE THIRD )
AMENDMENT TO THE POWER ) APPLICATION
PURCHASE AGREEMENT BETWEEN )
IDAHO POWER COMPANY AND USG )
OREGON, LLC. )
Idaho Power Company ("Idaho Power"), in accordance with RP 52, hereby
respectfully applies to the Idaho Public Utilities Commission ("Commission", "IPUC") for
an order approving the Third Amendment to the Power Purchase Agreement between
Idaho Power Company and USG Oregon, LLC ("Amendment") for the Neal Hot Springs
geothermal project ("Project"). This Amendment makes a change to the pricing schedule
in Appendix A of the Power Purchase Agreement ("PPA")to include pricing for years 2037
through February 28, 2038, which is the completion date of the Agreement's Initial 25-
year Term. Appendix A currently only provides pricing through 2036. This change has no
material effect on the PPA's other terms and conditions, nor does it change any
performance requirements of the PPA.
APPLICATION

In support of this Application, Idaho Power represents as follows:
I. INTRODUCTION AND BACKGROUND
1. Idaho Power and USG Oregon, LLC ("Seller") entered into a PPA on
December 11, 2009, for the purchase and sale of energy produced by the Neal Hot
Springs geothermal project located near Vale, Oregon. The PPA was the result of
negotiations between the parties after the Company's Requests for Proposals were
unsuccessful; as such the PPA was bilaterally negotiated and does not fall under the
Public Utilities Regulatory Policies Act of 1978 (PURPA). The PPA was approved by the
Commission in Order No. 31087, Case No. IPC-E-09-34, on May 20, 2010.
2. In accordance with the first paragraph of Appendix B-1 of the PPA, the
Seller was required to provide Idaho Power with an updated Description of Facility to
"include specific generation and geothermal plant information." The Seller provided the
revised Appendix B-1, Description of Facility, to Idaho Power on July 5, 2012.
3. On February 20, 2015, the parties to the PPA executed a First Amendment
to change the definition of Mid-Columbia Market Energy Cost in the PPA consistent with
the stipulation approved by the Commission Order No. 33053 on June 10, 2014. The First
Amendment was approved by the Commission in Case No. IPC-E-15-10, Order No.
33274 on April 15, 2015.
4. On September 29, 2016, the parties agreed to amend the PPA to change
Appendix B, Section B-1, Description of Facility, Item 1 of the PPA to include the words
"and/or water cooled," along with some minor typographical corrections to subsequent
items in Appendix B-1 . The Second Amendment was approved by the IPUC in Case No.
IPC-E-16-26, Order No. 33642 on November 9, 2016.
5. The parties recently discovered that the pricing schedule set forth in
APPLICATION

Appendix A of the Agreement only contained pricing through 2036, which does not include
the entirety of the Initial Term which ends on February 28, 2038.
6. On March 18, 2026, the parties agreed to revise Appendix A of the PPA to
include pricing for the remaining contract years in the pricing schedule (see Attachment
1). As the parties did not have other documentation indicating the pricing to be used in
2037 and 2038, an escalation rate was used to calculate the contract prices for the final
years of the Initial Term consistent with the preceding years of pricing in the existing
schedule. A redlined version of Appendix A is attached to this Application as Attachment
2.
II. THE AMENDMENT
7. The Amendment changes Appendix A (CONTRACT PRICES $/MWH) of
the Agreement to add prices for years 2037 and 2038 to the price table therein.
'Rate IOU.0US. 10U.0w.. 7331P.. 73311 73.309. IU0.Utr. 120.mr. 120 W. I MAP. 10U.0U•. 120.OU1. 120.W
Year I ]an I Feb jMwI Ayr IWI Junj Jul I AugSep I Oct I Nov I Dec
2037 145.15 145.15 106.39 1 W 106.39 145.15 174.18 174.18 145.13 145.15 174.18 174.18
2038 146.59 146.59
The additional prices provided in the Amendment were calculated by determining the
average escalation factor of the last three years of existing contract prices and applying
that three-year average escalation factor to the last year of pricing to determine a price
for 2037 (and to the 2037 prices to determine the price for 2038). The Amendment does
not otherwise change the terms and conditions or obligations of the parties under the
PPA. The Amendment ensures that the Agreement contains pricing for the full term of the
agreement.
APPLICATION

III. PROCEDURE
8. Given the limited scope of the Amendment, Idaho Power requests that the
Amendment be approved without further process. Alternatively, should the Commission
determine that further process is required, Idaho Power believes that a hearing is not
necessary to consider the issues presented herein and respectfully requests that this
Application be processed under Modified Procedure; i.e., by written submissions rather
than by hearing. RP 201, et seq.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
9. Communications and service of pleadings, exhibits, orders, and other
documents relating to this proceeding should be sent to the following:
Donovan E. Walker Camille Christen
Lead Counsel Resource Acquisition, Planning and
Idaho Power Company Coordination Manager
1221 West Idaho Street (83702) Idaho Power Company
P.O. Box 70 1221 West Idaho Street (83702)
Boise, Idaho 83707 P.O. Box 70
dwalker _idahopower.com Boise, Idaho 83707
dockets(c)_idahopower.com cchristen(a)_idahopower.com
V. REQUEST FOR RELIEF
10. Idaho Power respectfully requests that the Commission issue an order
accepting the Third Amendment to the Power Purchase Agreement between Idaho Power
Company and USG Oregon, LLC, submitted herewith without change or condition.
Respectfully submitted this 15t" day of April 2026.
LISA C. LANCE
Attorney for Idaho Power Company
APPLICATION

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-26-12
IDAHO POWER COMPANY
ATTACHMENT 1

Docusign Envelope ID:7A9378C0-56DB-495C-B69C-FDD3B41603B0
THIRD AMENDMENT
TO THE
POWER PURCHASE AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
USG OREGON LLC
This Third Amendment of the Power Purchase Agreement("Third Amendment")is entered into
on this 18thday of March 2026,by and between Idaho Power Company, an Idaho corporation("Idaho
Power"or"Buyer"), and USG Oregon LLC, a Delaware limited liability company("USG Oregon"or
"Seller") (individually a"Party"and collectively the"Parties").
WHEREAS,Parties entered into a Power Purchase Agreement("Agreement") on December 11,
2009 for the purchase and sale of energy produced by the Seller's geothermal electric generating facility
known as the Neal Hot Springs Unit#1 ("Project"). The Agreement has an Initial Term of 25 years that
commenced on March 1st of the first calendar year after the establishment of the Operation Date (the
"Contract Year"), or on March 01,2013,which was approved by the Idaho Public Utilities Commission
("IPUC") in Case No. IPC-E-09-34,Order No. 31087 issued on May 20,2010;
WHEREAS, on February 20,2015,the Parties entered into a First Amendment to the Agreement
to update the Mid-Columbia Market Energy Cost definition consistent with the Settlement Stipulation
approved by the IPUC in Order No. 33053 on June 10,2014. The First Amendment was approved by the
IPUC in Case No. IPC-E-I5-10, Order No. 33274 on April 14,2015;
WHEREAS, on September 29, 2016,the Parties entered into a Second Amendment to modify
Section B-1 (DESCRIPTION OF FACILITY) of Appendix B to expressly include water cooling in the
description of the Project and to otherwise more precisely describe the Project. The Second Amendment
was approved by the IPUC in Case No. IPC-E-16-26,Order No. 33642 on November 09,2016;
WHEREAS, it recently came to the Parties' attention that the pricing schedule set forth in
Appendix A of the Agreement, as amended, only contained pricing through 2036,which does not
encompass the entirety of Initial Term which ends on February 28,2038, at 11:59:59 PM,based on the
first Contract Year commencing on March 01, 2013; and
WHEREAS,to rectify this discrepancy,the Parties desire to enter into this Third Amendment to
the Agreement to include pricing for the remaining contract years in the pricing schedule referenced in
Appendix A of the Agreement. An annual escalation rate was used to calculate the contract prices for the
final years of the Initial Term consistent with the preceding years of pricing in the existing schedule.
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration,the receipt and adequacy of which are hereby acknowledged, and intending 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 Third Amendment by this reference to the same extent as if these recitals were set forth in full at this
point.
Power Purchase Agreement
Project: 10000003 Neal Hot Springs Unit#1
Third Amendment-Page 1 of 2

Docusign Envelope ID:7A9378C0-56DB-495C-B69C-FDD3B41603B0
2. Amendment.
A. APPENDIX A(CONTRACT PRICES $/MWH)of the Agreement, as amended, shall have prices
for years 2037 and 2038 added to the price table as follows:
*Rate 100.00°% 100.00% 73.30% 73.30°% 73.30% 100.00% 120.00°% 120.00% 100.00°% 100.00% 120.00% 120.00°%
Year I Jan I Feb I Mar I Apr I May I Jun I Jul I Aug I Sep I Oct I Nov I Dec
2037 145.15 145.15 106.39 106.39 106.39 145.15 174.18 174.18 145.15 145.15 174.18 174.18
2038 146.59 146.59
3. Commission Approval. The obligations of the Parties under this Third Amendment are subject
to the IPUC's approval of this Third Amendment, and such approval being upheld on appeal, if any,by a
court of competent jurisdiction.
4. Effect of Amendment. Except as expressly amended by this Third Amendment,the Agreement,
as amended, shall remain in full force and effect.
5. Capitalized Terms. All capitalized terms used in this Third Amendment and not defined herein
shall have the same meaning as used in the Agreement, as amended.
6. Scope of Amendment. This Third 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 Third Amendment.
8. Counterparts. This Third 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.
IN WITNESS WHEREOF,the Parties hereto have caused this Third Amendment to be duly
executed as of the date above written.
USG OREGON LLC IDAHO POWER COMPANY
By: `-,AA4 WAS By: iZ14. N. hdca�
Name: Elizabeth Helms Name: Ryan N. Adelman
Title: Corporate Secretary Title: vp, Power supply
Date: 3/16/2026 Date: 3/18/2026
Power Purchase Agreement
Project: 10000003 Neal Hot Springs Unit#1
Third Amendment-Page 2 of 2

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-26-12
IDAHO POWER COMPANY
ATTACHMENT 2

APPENDIX A
TO
POWER PURCHASE AGREEMENT
BETWEEN
USG OREGON LLC
AND
IDAHO POWER COMPANY
CONTRACT PRICES ($/MWH)
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 96.00 96.00 70.37 70.37 70.37 96.00 115.20 115.20 96.00 96.00 115.20 115.20
2013 99.00 99.00 72.57 72.57 72.57 99.00 118.80 118.80 99.00 99.00 118.80 118.80
2014 102.78 102.78 75.34 75.34 75.34 102.78 123.34 123.34 102.78 102.78 123.34 123.34
2015 106.79 106.79 78.28 78.28 78.28 106.79 128.15 128.15 106.79 106.79 128.15 128.15
2016 109.27 109.27 80.09 80.09 80.09 109.27 131.12 131.12 109.27 109.27 131.12 131.12
2017 111.83 111.83 81.97 81.97 81.97 111.83 134.20 134.20 111.83 111.83 134.20 134.20
2018 114.49 114.49 83.92 83.92 83.92 114.49 137.38 137.38 114.49 114.49 137.38 137.38
2019 116.45 116.45 85.36 85.36 85.36 116.45 139.74 139.74 116.45 116.45 139.74 139.74
APPENDIX A-PAGE 1 OF 2

2020 118.46 118.46 86.83 86.83 86.83 118.46 142.15 142.15 118.46 118.46 142.15 142.15
2021 120.52 120.52 88.34 88.34 88.34 120.52 144.62 144.62 120.52 120.52 144.62 144.62
2022 122.63 122.63 89.89 89.89 89.89 122.63 147.16 147.16 122.63 122.63 147.16 147.16
2023 124.37 124.37 91.16 91.16 91.16 124.37 149.24 149.24 124.37 124.37 149.24 149.24
2024 126.13 126.13 92.46 92.46 92.46 126.13 151.36 151.36 126.13 126.13 151.36 151.36
2025 127.94 127.94 93.78 93.78 93.78 127.94 153.52 153.52 127.94 127.94 153.52 153.52
2026 129.77 129.77 95.12 95.12 95.12 129.77 155.73 155.73 129.77 129.77 155.73 155.73
2027 131.65 131.65 96.50 96.50 96.50 131.65 157.98 157.98 131.65 131.65 157.98 157.98
2028 132.92 132.92 97.43 97.43 97.43 132.92 159.51 159.51 132.92 132.92 159.51 159.51
2029 134.21 134.21 98.38 98.38 98.38 134.21 161.05 161.05 134.21 134.21 161.05 161.05
2030 135.52 135.52 99.33 99.33 99.33 135.52 162.62 162.62 135.52 135.52 162.62 162.62
2031 136.84 136.84 100.30 100.30 100.30 136.84 164.21 164.21 136.84 136.84 164.21 164.21
2032 138.18 138.18 101.29 101.29 101.29 138.18 165.82 165.82 138.18 138.18 165.82 165.82
2033 139.54 139.54 102.28 102.28 102.28 139.54 167.45 167.45 139.54 139.54 167.45 167.45
2034 140.92 140.92 103.29 103.29 103.29 140.92 169.10 169.10 140.92 140.92 169.10 169.10
2035 142.31 142.31 104.32 104.32 104.32 142.31 170.78 170.78 142.31 142.31 170.78 170.78
2036 143.73 143.73 105.35 105.35 105.35 143.73 172.47 172.47 143.73 143.73 172.47 172.47
2037 145.15 145.15 106.39 106.39 106.39 145.15 174.18 174.18 145.15 145.15 174.18 174.18
2038 146.59 146.59
APPENDIX A-PAGE 2 OF 2