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HomeMy WebLinkAbout20260716Notice_of_Application_Order_No_37099.pdf Office of the Secretary Service Date July 16,2026 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-26-20 COMPANY'S APPLICATION FOR ) APPROVAL OF A POWER PURCHASE ) NOTICE OF APPLICATION AGREEMENT AND AN ENERGY STORAGE ) SYSTEM TOLLING AGREEMENT WITH ) NOTICE OF INTERVENTION BLUEBIRD SOLAR PROJECT LLC ) DEADLINE ORDER NO. 37099 On June 19, 2026, Idaho Power Company ("Company") applied to the Idaho Public Utilities Commission ("Commission") requesting (1) approval of the 20-year Power Purchase Agreement ("PPA") between Bluebird Solar Project LLC ("Bluebird") and the Company supplying 200 megawatts ("MW") of output from the solar powered generation facility to the Company, (2) approval of the 20-year Energy Storage System Tolling Agreement ("ESSTA") between Bluebird and the Company for 100 MW of dispatchable energy storage capacity(together, the "Bluebird Project"), and (3) acknowledgement of the lease accounting necessary to facilitate the transaction and that the resulting expenses associated with both the PPA and the ESSTA are prudently incurred for ratemaking purposes ("Application"). The Company requested an order by December 4, 2026. The Commission now issues this Notice of Application and sets deadlines by which interested persons may intervene. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company states that its 2023 Integrated Resource Plan ("IRP") identified future capacity shortfalls that would require additional supply- side resources to maintain reliable service. Application at 3. The 2023 IRP projected an incremental capacity deficiency of 138 MW in 2028 and established that 555 MW of new supply- side resources would be needed under the Preferred Portfolio during that year. Id. The Company further states that capacity deficiencies were expected to continue beyond 2028, increasing to 142 MW in 2029 and growing steadily to more than 1,150 MW by 2038.Id. Based on these projections, the Company believes that additional resource acquisitions are necessary to ensure long-term system reliability and meet anticipated customer demand.Id. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 37099 1 YOU ARE FURTHER NOTIFIED that the Company explains that, to address these projected resource needs, it conducted a competitive All-Source Request for Proposals ("RFP") designed to identify cost-effective energy and capacity resources.Id. at 4. Rather than limiting the solicitation to a specific technology, the Company states that it accepted proposals from a broad range of resource types, including renewable generation, natural gas, battery storage, market purchases, and both new and existing resources. Id. The Company indicates that the solicitation focused on obtaining resources capable of addressing the incremental capacity deficiencies identified in the 2023 IRP beginning in the summer of 2028 and extending beyond that timeframe. Id. The Company states that the competitive procurement process identified the least-cost and least-risk portfolio of resources necessary to satisfy an updated capacity need of approximately 204 MW.Id. YOU ARE FURTHER NOTIFIED that the Company states that it initiated the RFP on February 29,2024,with the objective of acquiring resources that could become operational in 2028 or later. Id. at 5. Following stakeholder feedback, the Company revised the solicitation to accommodate projects with later commercial operation dates. Id. Specifically, the Company explains that it divided the evaluation into two categories: projects capable of achieving commercial operation by April 1,2028,and projects that would become operational after that date. Id. The Company notes that its filing focuses on the evaluation of the latter category, referred to as the "Beyond April 2028 Bids," and states that it ultimately received approval to develop a final shortlist of proposals with commercial operation dates no later than June 1, 2029.Id. YOU ARE FURTHER NOTIFIED that the Company executed agreements on May 27, 2025, for the Bluebird Project,which includes both a solar PPA and a battery ESSTA. Id. at 7. YOU ARE FURTHER NOTIFIED that the Company states that the Bluebird Project consists of a 200 MW solar generation facility that will provide energy to the Company, together with a 100 MW battery energy storage system that will provide dispatchable storage capacity.Id. YOU ARE FURTHER NOTIFIED that the Company states that the PPA is a 20-year agreement between the Company and Bluebird. Id. Under the terms of the agreement, the developer will construct, own, operate, and maintain a 200 MW solar generation facility located in Ada County, Idaho, while delivering the facility's energy output to the Company. Id. The Company explains that the agreement includes levelized, fixed pricing throughout the 20-year NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 37099 2 contract term,which it believes provides long-term price stability for customers.Id. The Company further states that the PPA will become effective only if the Commission approves all of its terms and determines that payments made under the agreement will be recoverable as prudently incurred expenses for ratemaking purposes.Id. at 7-8. YOU ARE FURTHER NOTIFIED that the Company states that, concurrently with execution of the PPA, it entered into a separate 20-year ESSTA with Bluebird for a battery energy storage system to be located in Ada County,Idaho.Id. at 8. The battery storage facility will provide 100 MW of dispatchable capacity at the point of interconnection with the Company's system and is expected to achieve commercial operation on June 1, 2028. Id. The Company explains that the ESSTA functions similarly to a lease, under which the developer will design, construct, own, and operate the battery storage facility while the Company retains the exclusive right to dispatch the battery and control its charging and discharging operations in exchange for fixed monthly payments.Id. YOU ARE FURTHER NOTIFIED that the Company states that the ESSTA includes fixed monthly capacity payments with no annual price escalation over the 20-year contract term.Id. YOU ARE FURTHER NOTIFIED that the Company also requests that the Commission acknowledge that lease accounting treatment is necessary to facilitate the transaction and that the expenses incurred under the ESSTA are prudently incurred and therefore eligible for recovery through ratemaking.Id. at 10. 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 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 NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 37099 3 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 parry. 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 Walker Tim Tatum 1221 West Idaho Street P.O. Box 70 Boise, Idaho 83707 dwalker&idahopower.com ttatum(k idahopower.com dockets kidahopower.com 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. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 37099 4 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 16th day of July 2026. G EDWARD LODGE, P E, T ENT J R. HAMMOND JR., COMMISSIONER DAYN HA IE, COMMISSIONER ATTEST: di a anchez Commission Secretary IAL.egal\ELECTRIC\IPC-E-26-20_Bluebird So1ar\orders\IPCE2620_ntc_app_int_em.docx NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 37099 5