20260706APPLICATION.pdf

ON —0IQAH0 Re
RECEIVED
LISA C. LANCE July 6, 2026
Corporate Counsel IDAHO PUBLIC
UTILITIES COMMISSION
I lance(a�idahopower.com
July 6, 2026
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, Idaho 83714
Re: Case No. IPC-E-26-22
Pico Energy, LLC Project
Idaho Power Company's Application for Approval of the First Amendment to
the Energy Sales Agreement Between Idaho Power and Pico Energy, 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,
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(a-Mdahopower.com
dwalkerCa-)_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-26-22
APPROVAL OF THE FIRST AMENDMENT )
TO THE ENERGY SALES AGREEMENT ) APPLICATION
BETWEEN IDAHO POWER AND PICO )
ENERGY, LLC. )
Idaho Power Company ("Idaho Power"), in accordance with the Idaho Public
Utilities Commission's ("Commission") Rule of Procedure 52 ("RP 52") and the applicable
provisions of the Public Utility Regulatory Policies Act of 1978 ("PURPA"), hereby
respectfully applies to the Commission for an order approving the First Amendment to the
Energy Sales Agreement between Idaho Power Company and Pico Energy, LLC
("Amendment") for the Pico Energy cogeneration facility ("Facility"). The Amendment
modifies certain provisions of the Energy Sales Agreement ("ESA") to reflect a reduction
in the Facility's nameplate capacity and to incorporate Commission-approved language
governing facility modifications. The Amendment does not otherwise change the terms
and conditions of the ESA.
APPLICATION - 1

In support of this Application, Idaho Power represents as follows:
I. INTRODUCTION AND BACKGROUND
1. Idaho Power and Pico Energy, LLC ("Seller", jointly "Parties") entered into
an ESA on December 13, 2019, for the purchase and sale of energy produced by the
Seller's cogeneration facility located near Jerome, Idaho. The ESA was approved by the
Commission in Order No. 34544 on February 7, 2020.
2. The Facility is a PURPA qualifying cogeneration facility fueled by natural
gas and interconnected to Idaho Power's electrical system. The Facility operates under
the Commission's avoided cost framework applicable to "Fueled Other Facilities" and
receives pricing consistent with Commission orders governing such facilities. Under the
ESA, the Facility was designed and certified with a nameplate capacity of 2.276
megawatts ("MW") and configured with two generation units.
3. The Seller has recently modified its operations due to the age, condition,
and required repairs of one of the Facility's generators. As a result, the Seller has
decommissioned one generator and is currently operating the Facility with a single
generation unit. This change in operations has reduced the Facility's nameplate capacity
from 2.276 MW to 1 .138 MW.
4. On June 24, 2026, the Parties agreed to revise Article XXI I I, Appendix B-1,
and Appendix B-4 of the ESA to include changes that reflect the reduction to Nameplate
Capacity from 2.276 MW to 1 .138 MW and to add Commission-approved language
pertaining to modifications of the Facility (see Attachment 1).
II. THE AMENDMENT
5. The Amendment modifies Article XXIII (MODIFICATION) and Appendices
B-1 and B-4 of the ESA to reflect the updated configuration and operation of the Facility.
Specifically, the Amendment: (1) reduces the Facility Nameplate Capacity from 2.276 MW
APPLICATION -2

to 1.138 MW; (2) updates the description of the Facility to reflect operation with a single
generator; (3) updates the Maximum Capacity Amount to 1.138 MW; and (4) incorporates
Commission-approved language governing Facility modifications and the process for
review and approval of such modifications. The Amendment does not otherwise change
the terms and conditions or obligations of the Parties under the ESA. The Amendment
ensures that the Agreement accurately represents the current description and operation
of the Facility.
III. PROCEDURE
6. 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
7. Communications and service of pleadings, exhibits, orders, and other
documents relating to this proceeding should be sent to the following:
Donovan E. Walker Energy Contracts
Lisa C. Lance Idaho Power Company
IPC Dockets 1221 West Idaho Street (83702)
Idaho Power Company P.O. Box 70
1221 West Idaho Street (83702) Boise, Idaho 83707
P.O. Box 70 energycontracts(a)_idahopower.com
Boise, Idaho 83707
dwalker _idahopower.com
IlanceC@.idahopower.com
dockets(c-)_idaho power.com
APPLICATION -3

V. REQUEST FOR RELIEF
8. Idaho Power respectfully requests that the Commission issue an order
accepting the First Amendment to the Energy Sales Agreement between Idaho Power
and Pico Energy, LLC, submitted herewith without change or condition.
Respectfully submitted this 6th day of July 2026.
LISA C. LANCE
Attorney for Idaho Power Company
APPLICATION -4

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 6th day of July, 2026, 1 served a true and correct
copy of the within and foregoing APPLICATION upon the following named parties by the
method indicated below, and addressed to the following:
Commission Staff Hand Delivered
Deputy Attorney General U.S. Mail
Idaho Public Utilities Commission Overnight Mail
11331 W. Chinden Blvd., Bldg No. 8 FAX
Suite 201-A (83714) FTP Site
PO Box 83720 X Email
Boise, ID 83720-0074
Courtesy Copy Sent To:
Montauk Renewables, Inc., John Ciroli: jciroli _montaukrenewables.com
Christy Davenport, Legal Assistant
APPLICATION -5

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-26-22
IDAHO POWER COMPANY
ATTACHMENT 1

Docusign Envelope ID: FEED8073-1 E69-80EE-80AC-5B4A5161 BEFC
FIRST AMENDMENT
TO THE
ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
PICO ENERGY, LLC
This First Amendment of the PURPA Energy Sales Agreement ("ESA" or "Agreement")
is entered into on this 24th day of June 2026, by and between Idaho Power Company, an
Idaho corporation ("Idaho Power" or "Buyer"), and Pico Energy, LLC ("Seller"), (individually a
"Party" and collectively the "Parties").
WHEREAS,Parties entered into an ESA on December 13,2019,for the purchase and sale
of generation produced by Pico Energy, LLC, Cogeneration project ("Facility") with an Initial
Term of 10 years from the Operation Date, which was approved by the Idaho Public Utilities
Commission's ("IPUC") on February 7, 2020, in Order No. 34544; and
WHEREAS, the Facility wishes to reduce the Nameplate Capacity from 2.276 MW to
1.138 MW due to the decommissioning of one out of the two generators because of age, condition
and need for extensive repairs; and
WHEREAS, Seller has recently been operating the Facility with one generator and has
adjusted the Monthly Estimated Net Energy Amounts to reflect these operations;
WHEREAS, Parties have agreed to the modification due to the Qualifying Facility
Category, Primary Energy Source, and Fueled Rate class not changing, still deeming the Facility
eligible for the Fueled Other Facility Energy Prices as outlined in the ESA and in accordance with
IPUC Order 34350, with capacity payments per IPUC Order No. 32697, plus the Adjustable
Component in effect, and with seasonalization factors applied.
WHEREAS, the Parties desire to enter into this First Amendment to the ESA to include
changes that reflect the reduction to Nameplate Capacity from 2.276 MW to 1.138 MW and to add
IPUC-approved language pertaining to modifications of the Facility. These changes reside in
Article 23: MODIFICATIONS, Appendixes B-1 and B-4 of the ESA.
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 First Amendment by this reference to the same extent as if these recitals were set forth
in full at this point.
2. Amendment. Replace Article XXIII: MODIFICATION entirely and modify Appendices
B-1 and B-4 as follows (s4ikeflffeiigh indicates deletions and underline indicated additions):
Power Purchase Agreement
Project: 40565975 Pico Energy,LLC
First Amendment-Page 1 of 6

Docusign Envelope ID: FEED8073-1 E69-80EE-80AC-5B4A5161 BEFC
ARTICLE XXIII: MODIFICATION
23.1 No later than the First Energy Date, the Seller will provide Idaho Power with an"as-built"
description of the Facility in the form set forth in Appendix B.
23.2 The Seller will not modify the Facility from the description set forth in Appendix B without
prior notification to Idaho Power. A proposed modification to the Facility that would
change the Facility as described in Appendix B is referred to herein as a"Proposed Facility
Modification." Proposed Facility Modification does not include additions or expansions
to the Facility that result in an increase to the Maximum Capacity Amount, which are
addressed in paragraph 23.6. The Seller may not begin construction of any Proposed
Facility Modification(s)unless and until the following requirements have been met:
1) Seller has promptly notified Idaho Power of the Proposed Facility
Modification(s) prior to initiating the modification design,specification,
purchasing and construction process.
2) Seller has provided Idaho Power with detailed plans regarding the Proposed
Facility Modification(s), including proposed revisions to the as-built
description of the Facility set forth in Appendix B.
3) The Proposed Facility Modification has been reviewed by Idaho Power and
a determination made to either pursue an amendment as a Proposed Facility
Modification pursuant to paragraphs 23.3 and 23.4 or as an expansion or
additional project pursuant to paragraph 23.6.
23.3 Idaho Power will review any Proposed Facility Modification(s) and"as-built"descriptions
to determine whether an amendment of the Agreement is appropriate as set forth in
paragraph 23.4.In reviewing any Proposed Facility Modification(s)or actual modifications
reflected in the as-built description, Idaho Power shall consider the following information:
1) The nature, scope, and extent of the proposed or actual modifcation(s),
2) The impact, if any, on the applicable avoided cost rates or other relevant
terms and conditions,
3) Such other information as may reasonably be necessary including the effect
on an.. o�provisions hereof which may be iMpacted by the proposed or
actual modification.
Proposed modifications could result in several possible actions including but not limited to
no change to Appendix B, and thus no further action; an amendment to conform Appendix
B to the modified Facility; an amendment to adjust the pricing and other relevant terms and
conditions; or a termination and new Agreement.
23.4 Based on its review, Idaho Power, at its sole determination in accordance with the
provisions of the Public Utility Regulatory Policies Act of 1978 and any amendments
thereto ,"PURPA", and subject to Commission approval, may choose to enter into an
Power Purchase Agreement
Project: 40565975 Pico Energy,LLC
First Amendment-Page 2 of 6

Docusign Envelope ID: FEED8073-1 E69-80EE-80AC-5B4A5161 BEFC
amendment of the Agreement to adjust the pricing or other relevant terms and conditions
as necessary, including Appendix B.
23.4.1 If Idaho Power determines that it is appropriate to revise the Agreement,the
Parties will enter into a written amendment to the Agreement revising the
relevant terms, conditions, description in Appendix B, and, if necessary,
pricing, referred to herein as the "Facility Modification Amendment". The
Facility Modification Amendment will be submitted to the Commission for
approval. If the pricingis s adjusted, the Parties will agree on and include in
the amendment a pricing true-up mechanism to ensure that the correct rates
apply to the modified Facility from the completion date of the modification.
23.4.2 If the Commission determines that the Proposed Facility Modification
would require termination of the Agreement, the Seller may abandon the
Proposed Facility Modification or accept the termination. If the Seller
accepts the termination, Seller will be responsible for Termination
Damages, if any, and the Parties may negotiate a new agreement based on
the Facility as modified.
23.5 In addition to prior notification of any modifications to the Facility from the description
set forth in Appendix B, no later than thirty (30) days following the date of substantial
completion of such modification,and prior to the first Operation Date of such modification,
Seller must provide Idaho Power with an"as-built" description of the modified Facility in
the form set forth in Appendix B of this Agreement;provided that the Facility, as reflected
in the"as-built"description to be provided under this paragraph, may not deviate from the
Facility Modification Amendment, except, in each case, to the extent such further
modification(s) are authorized under a subsequent written amendment to this Agreement
that is executed by the Parties and approved by the Commission. If the "as-built"
description deviates from the then-approved Appendix B, Idaho Power will review it and
follow the process described in par�phs 23.3 and 23.4.
23.6 Idaho Power is not required to purchase any Net Energy above the Maximum Capacity
Amount. If Seller builds an expansion or additional project such that the expansion, or
additional project would be deemed a single Qualified Facility or the same site under FERC
regulations, Seller may not require Idaho Power(and Idaho Power will have no obligation_
to purchase pursuant to this Agreement,) the output of any such expansion, or additional
facility under the terms, conditions and prices in this Agreement. Instead, Seller may
exercise any rights to enter into a new agreement for the sale of such incremental energy
from such additional facility that is a Qualified Facility under then-applicable laws and
regulations.
23.7 Idaho Power is not obligated to and shall not make any incremental payment to Seller as a
result of any modification, addition, or expansion of the Facility if such modification was
not authorized and approved by the Commission pursuant to the provisions of this Article
23. Should the Seller modify, construct additions, and/or expand the Facility without
notification to Idaho Power nor the authorization and approval of the Commission pursuant
to the provisions of this Article 23, any incremental payments to Seller resulting from and
Power Purchase Agreement
Project: 40565975 Pico Energy,LLC
First Amendment-Page 3 of 6

Docusign Envelope ID: FEED8073-1 E69-80EE-80AC-5B4A5161 BEFC
subsequent to the modification,addition,and/or expansion of the Facility that deviate from
the description in Appendix B shall be unauthorized and immediately due and owing back
to Idaho Power. Failure to repay or reasonably offset future payments made to Seller
designed to repay and recoup any unauthorized payment amounts will be deemed a material
breach of this Agreement.
23.8 No modification to this Agreement shall be valid unless it is in writing a _signed by both
Parties and subsequently approved by the Commission.
B-1 DESCRIPTION OF FACILITY
Two One-GE Jenbacher 416 Gensets. 1,138 kW, 1,890 KVA 60 HZ 1693 A @ p.f. _ .08 480 V
Facility Nameplate Capacity: 2.276 1.138 MW
Qualifying Facility Category(Small Power Production or Cogeneration): Cogeneration
Primary Energy Source(Hydro,Wind, Solar, Biomass,Waste, Geothermal):Natural Gas
Fueled or Non-Fueled Rate (Generator primarily fueled with fossil or non-fossil fuel): Fueled
s4sequefftly the Fueled Ra4e ei:Non Fueled Ra4e, will require a review of the Agreement(!) increases or-deer-eases the Facility Namepla4e Capacity, of(2) changes the Qualifying Faeility
tefminate the Agreement. if the Agreement is tefminated beeause of said medifiea ions, the Se,
will be fvspensible f ,T-ef ,in do Damages.
B-4 MAXIMUM CAPACITY AMOUNT:
The Maximum Capacity Amount is '2ry 1.138 MW which is consistent with the value provided
by the Seller to Idaho Power in accordance with the GIA. This value is the maximum generation
(1EWMW)that potentially could be delivered by the Seller's Facility to the Idaho Power electrical
system at any moment in time.
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
Power Purchase Agreement
Project: 40565975 Pico Energy,LLC
First Amendment-Page 4 of 6

Docusign Envelope ID: FEED8073-1 E69-80EE-80AC-5B4A5161 BEFC
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 Parry 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.
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.
Power Purchase Agreement
Project: 40565975 Pico Energy,LLC
First Amendment-Page 5 of 6

Docusign Envelope ID: FEED8073-1 E69-80EE-80AC-5B4A5161 BEFC
IN WITNESS WHEREOF,the Parties hereto have caused this First Amendment to be duly
executed as of the date above written.
PICO ENERGY, LLC IDAHO POWER COMPANY
By: �66- brk By: i2ro..-, N. Am.
Name:
John Ciroli Name: Ryan N.Adelman
Title:
Chief Legal Officer Title: VP, Power Supply
Date:
6/24/2026 Date: 6/24/2026
Power Purchase Agreement
Project: 40565975 Pico Energy,LLC
First Amendment-Page 6 of 6