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HomeMy WebLinkAbout20220211IPC to Staff 1-34.pdfLISA D. NORDSTROM Lead Counsel lnordstrom@idahopower.com February 11, 2022 Jan Noriyuki, Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-21-40 Application to Expand Optional Customer Clean Energy Offerings Through the Clean Energy Your Way Program Dear Ms. Noriyuki: Attached for electronic filing, pursuant to Order No. 35058, is Idaho Power Company’s Response to First Production Request of the Commission Staff in the above entitled matter. If you have any questions about the attached documents, please do not hesitate to contact me. Sincerely, Lisa D. Nordstrom LDN:sg Enclosure RECEIVED 2022 FEB 11 PM 4:15 IDAHO PUBLIC UTILITIES COMMISSION IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 1 LISA D. NORDSTROM (ISB No. 5733) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 lnordstrom@idahopower.com Attorney for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION TO EXPAND OPTIONAL CUSTOMER CLEAN ENERGY OFFERINGS THROUGH THE CLEAN ENERGY YOUR WAY PROGRAM. ) ) ) ) ) ) ) CASE NO. IPC-E-21-40 IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY COMES NOW, Idaho Power Company (“Idaho Power” or “Company”), and in response to First Production Request of the Commission Staff (“IPUC or Commission”) dated January 21, 2022, herewith submits the following information: IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 2 REQUEST FOR PRODUCTION NO. 1: Regarding the Community Solar Pilot Program approved by Order No. 33638 in Case No. IPC-E-16-14 and subsequently suspended by Order No. 34317, please answer the following: a. The Community Solar Program was suspended due to insufficient enrollment. Please describe how the Company will receive sufficient participation for the Subscription options? b. Please describe how the “high premium cost compared to regular rates” issue from the Community Solar Pilot Program will be resolved in the new Subscription and Construction options? c. Please describe how the “concerns about the ability to achieve a return on investment” issue from the Community Solar Pilot Program will be resolved in the Subscription and Construction options? RESPONSE TO REQUEST FOR PRODUCTION NO. 1: a. Idaho Power believes it can achieve sufficient participation in the Subscription for two primary reasons: 1) More customers are interested in or require clean energy options than five years ago when the Community Solar Program was developed, and 2) The cost of participation will be more attractive to customers than it was with the Community Solar Program. While Idaho Power has not identified a resource to support the Subscription, the cost of renewables has fallen significantly in the past few years, and the Subscription offering will allow economies of scale in resource selection and pricing—a 50- megawatt (MW) resource will likely be offered at lower cost than the 500 kilowatt (kW) system proposed for the Community Solar Program. Another IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 3 important distinction is that the Subscription offering will not require an up- front investment like the Community Solar Program. The elimination of an up- front cost removes the most significant cost barrier identified by customers in the Community Solar surveys, as referenced in the Company’s application. b. As noted above, the proposed Subscription offering will have a different cost structure than the Community Solar Program. Most notably, the Subscription will not require an up-front investment that made Community Solar financially unappealing for many customers. The structure of the Construction offering, and the Community Solar Program are not comparable. In the Construction offering, customers will self-elect into a tailored agreement with the Company. The tolerance for a price premium will vary by individual customer and their specific Construction arrangement. However, the Construction arrangement filing of Brisbie, LLC in IPC-E-21-42 indicates that the Construction offering is a financially workable arrangement for large energy users. c. Based on survey questions and responses from customers about the challenges of the Community Solar Program, the Company believes that “concerns about the ability to achieve a return on investment” with the Community Solar Program were in reference to the required up-front investment from the customer. As noted above, the Subscription offering will not have an up-front investment. Similarly, Construction arrangements are unlikely to involve up-front investment for resource costs for the reasons explained in the response to Staff’s Production Request No. 34. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 4 The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 5 REQUEST FOR PRODUCTION NO. 2: In the Application at 8, the Company states “Idaho Power will record unsold amounts as a charge to the Company’s Operation and Maintenance [“O&M”] expense.” Please confirm the O&M expense would be for the Clean Energy Your Way program. If not, please explain. RESPONSE TO REQUEST FOR PRODUCTION NO. 2: Confirmed. The Operation and Maintenance (O&M) expense would be for the Clean Energy Your Way program – Flexible offering. The response to this Request is sponsored by Tami White, Budget and Revenue Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 6 REQUEST FOR PRODUCTION NO. 3: The Company’s Application at 12 states “based on customer interest, Idaho Power believes it can fully subscribe the offering as described above with a 50-100 megawatt resource” for the Subscription option. Please describe how the Company is determining the approximate size of 50-100 megawatt resource based on customer interest? How will the Company determine the final size of the resource for the Subscription option? RESPONSE TO REQUEST FOR PRODUCTION NO. 3: The size estimate of 50 – 100 MW for the Subscription was based on conversations with Idaho Power’s customers in the development of the proposed offering. Idaho Power has received interest in the Subscription offering from many customers, with more than 10 customers that would each require a solar resource of approximately 5 MW to offset their full annual energy use. Together, these customers alone would fully subscribe a 50 MW resource. Idaho Power also assumes that residential customers would absorb from 5 to 10 MW of the program—an amount informed by the list of customers interested in the Community Solar Program and the Green Power Program. The ultimate resource size for the Subscription offering will be based on a variety of factors, including statements of interest from customers and resource economies of scale—for example, it may be lower cost on a per-unit basis to develop a resource of 100 MW than 50 MW. As noted in Idaho Power’s application, the Company proposes dispatching any unsubscribed portions of energy from the Subscription resource to Idaho Power’s system. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 7 The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 8 REQUEST FOR PRODUCTION NO. 4: For the proposed Clean Energy Your Way Subscription option, please answer the following: a. Will customers have any input for the resource selected for this option? b. When will the Company begin signing up customers for the program? c. At what percentage of participation and enrollments for the program would the Company deem sufficient to operate the program? d. Will residential customers be able to select term lengths longer than month- to-month? RESPONSE TO REQUEST FOR PRODUCTION NO. 4: a. Yes. As proposed by the Company in its application, the second phase of the two-phase filing process for the Subscription would offer customers and other interested parties an opportunity to provide input on the resource for the offering. b. Idaho Power will not begin signing up customers for the Subscription offering until it is approved by the Commission. c. Based on expressed customers interest, the Company believes it can reach full participation in the Subscription offering. However, the Company also proposes dispatching any unsubscribed portions of energy to its system to benefit all customers. The Company has not yet determined a threshold of subscribers that would be necessary to deem the program sufficient to operate. Such a determination will be made during the second phase of the Subscription filing when key elements of the program, such as resource pricing and resource size, will be known. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 9 d. Yes. Residential customers will be able to subscribe to term lengths longer than month-to-month. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 10 REQUEST FOR PRODUCTION NO. 5: The proposed Construction and Subscription options both implement a two-phase approach with the second phase requiring Commission approval. Why does the Company not include proposed tariff language in its Application for the Subscription option when the Construction offering includes tariff language in this filing? If available, please provide a copy of the proposed Clean Energy Your Way – Subscription option Tariff. RESPONSE TO REQUEST FOR PRODUCTION NO. 5: Under the Company’s proposal, the Construction offering will be an active component of Tariff Schedule 62 upon Commission approval, while the Subscription offering would not become available under this current phase of the process. The rationale for this approach is that key components that are necessary for the Subscription-related tariff language are not known yet—primarily, participant costs and credits. In lieu of draft tariff language, the Company included a description of Subscription offering parameters as Exhibit 1 to Ms. Williams direct filed testimony, describing many of the proposed components of the Subscription. The Company expects these elements, once finalized and approved by the Commission in a future case or a second phase of this case, will be codified within Tariff Schedule 62. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 11 REQUEST FOR PRODUCTION NO. 6: What is the Company’s intent for reporting on each option for the Clean Energy Your Way program? RESPONSE TO REQUEST FOR PRODUCTION NO. 6: The Company envisions maintaining the biennial reporting requirement for the current Green Power Program as directed by the Commission in Order No. 33570. Under the Clean Energy Your Way – Flexible name, the Company expects to expand reporting to include sales information regarding the Limited Bulk Purchase Option. For reference, in Order No. 33570 the Commission directed the Company to submit a biennial Green Energy Prudency Report, which includes the following information:  Customer count under each participation option, by schedule  Monthly RECs purchased  Monthly revenue and expenses for Schedule 62  Updated costs associated with re-certifying the RECs prior to retirement  Summary of marketing activities and expenses  Solar 4R Schools expenses  Percentage of RECs purchased within Idaho Power's service territory  Monthly funds transferred to the Power Cost Adjustment (PCA) from Idaho Power-owned REC purchases For the Subscription offering, the Company believes it would be beneficial to provide biennial reports with relevant metrics and data, such as customer count under each subscription term and monthly revenue and expenses. The Company does not envision a reporting requirement associated with the Construction offering, as each Construction arrangement will be individually designed and approved by the Commission. Further, given that each arrangement will require a customer to be committed to a resource(s) for an extended term length, none of the reporting requirements noted above are relevant to Construction arrangements. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 12 The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 13 REQUEST FOR PRODUCTION NO. 7: Please describe how the Company will account for the proposed Subscription and Construction options in the Integrated Resource Plan. RESPONSE TO REQUEST FOR PRODUCTION NO. 7: The dedicated resource for the Subscription offering will only be included in the Company’s Integrated Resource Plan (IRP) once the offering is approved by the Commission. At such a time, the Company would model the resource as a base resource (as opposed to an optional resource that could be selected by the AURORA model). The capacity contribution of the resource would be determined based on the expected online date using the Electric Load Carrying Capability (ELCC) method. For the Construction offering, the resource(s) for individual customer arrangements will be incorporated into the IRP once an agreement is signed between the Company and the customer(s). Similar to the Subscription offering resource, Construction-related resources for customers will be treated as base resource(s). Construction resource(s) will also be modeled at no cost because the customer(s) will have agreed to pay for the entire cost of the resource(s). The capacity value of the resource(s) will also be identified based on expected online date of each resource using the ELCC method. The Brisbie, LLC special contract application (IPC-E-21-42) is the first example of Construction offering resources for a customer incorporated into the IRP. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 14 REQUEST FOR PRODUCTION NO. 8: Please answer the following about Marketing expenses: a. Please provide the annual estimated cost of marketing for Clean Energy Your Way Program broken down by each option (Flexible, Subscription, Construction). b. Does the Company plan to cap marketing expenses for the program? If so, at what percentage or dollar value does the Company plan to Cap expenses. c. Does the Company plan to cap marketing expenses for each option (Flexible, Subscription, and Construction) in the program? If so, at what percentage or dollar value does the Company plan to Cap expenses. d. Will the Company report marketing expenses for the entire program or individually for each option (Flexible, Subscription, and Construction)? RESPONSE TO REQUEST FOR PRODUCTION NO. 8: a. Clean Energy Your Way Flexible: The Flexible offering, which is essentially a rebrand of the Company’s current Green Power Program, will continue the same marketing plan that exists today. The Company may use up to 15 percent of program funds to support marketing. The annual budget for the Company’s current Green Power Program is approximately $30,000 for marketing and participant engagement and retention tactics. Clean Energy Your Way Subscription: While the Subscription offering will not be marketed until it is approved by the Commission, Idaho Power envisions an annual marketing budget of approximately $30,000, consistent with the marketing budget for the current Green Power Program. The Company believes it is logical IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 15 to estimate a budget for the Subscription based on what has historically been effective for the Green Power Program. Upon approval, marketing will commence to attract interest in the program with the ultimate objective of fully subscribing the program. Once the Subscription is full or nearly full, the need for marketing will diminish significantly. However, a certain amount of turnover is expected in the Subscription, as month-to-month and five-year term customers may decide not to renew their subscriptions. The Company will continue to market the program in a more limited fashion to account for this expected turnover. The Company has proposed that administration and marketing for the Subscription be included as a component of the participant charge. Due to the nature of the upfront marketing expenses prior to the collection of administration and marketing fees, the timing of marketing expenses and revenues collected may not align. Clean Energy Your Way Construction: The Construction offering is intended to be available for customers specifically seeking a tailored clean energy option; therefore, no incremental marketing expenses are anticipated. b. Yes. As noted above, the Company will continue to market Clean Energy Your Way – Flexible at the annual budgeted amount of $30,000. Similarly, the Company envisions an annual marketing budget for the Subscription of $30,000, which is expected to diminish as the program fills. The Construction offering is not anticipated to have any incremental marketing expenses. In total, Idaho Power plans to cap marketing of the entire Clean Energy Your Way program at $60,000 annually. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 16 c. See response to part “b” above. d. The Company will continue to report expenses for the Flexible offering as currently prescribed for the Green Power Program Biennial Report. Reporting aspects for the Subscription offering will be contemplated in the second phase of the filing request, as described in Ms. Williams’s testimony on page 36, but the Company believes it may be beneficial to provide biennial reporting on relevant metrics, as noted in response to Staff’s Production Request No. 6. No marketing expense reporting is anticipated for the Construction offering. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 17 REQUEST FOR PRODUCTION NO. 9: For Option 3, the Large Purchase Option for the Flexible offering in Schedule 62, please provide additional details about this option including the following: a. For each year from 2016-2021, please provide the number of customers enrolled in the Green Power Program and the amount in MWh of yearly purchases for each customer that would meet the 750 MWh or more per year large purchase option. b. Will customers have the immediate option of participating in this option? c. Will customers need to nominate how many MWh per year they plan to purchase to participate in this option? d. Will tailored options be billed monthly, yearly, or other? e. What type of communication will occur with the Commission for the tailored agreements? f. What benefits will a customer have by participating in this option versus the Subscription offering? RESPONSE TO REQUEST FOR PRODUCTION NO. 9: a. From 2016 through 2021, there were three Green Power Program business participants who met the eligibility requirements of the Large Purchase Option. The three customers, respectively, purchased Renewable Energy Certificates (RECs) equal to 2,298 Megawatt-hours (MWh), 1,332 MWh, and 1,306 MWh annually. However, there are fundamental differences between business customers interested in the Green Power Program and business customers interested in the Large Purchase Option. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 18 Customers interested in the Large Purchase Option typically want RECs at a competitive price, without extra benefits and added costs, while participation in the Green Power Program includes additional costs and benefits. The Large Purchase Option was first offered following the 2016 modifications to Schedule 62; however, interest in the option remained low until 2018. Since 2018, more than 60 business customers have sought information on the Large Purchase Option as they seek solutions to achieve their sustainability targets. As of February 2022, seven (7) businesses are purchasing Idaho Power-owned RECs through this Large Purchase Option. Company-owned RECs1 are sold out for 2022, so Idaho Power is unable to support additional customer inquiries for large volume purchase of RECs at this time or until the REC third-party procurement proposed by the Company is approved by the Commission. b. Under the current Large Purchase Option, customers who meet the eligibility requirements can purchase any Company-owned RECs available. Once Idaho Power has sold its REC supply, the Company is no longer able to provide this option to customer. Should Idaho Power be approved to source RECs from third-party REC sellers on behalf of customers, Idaho Power could work with customers to meet their needs regardless of the availability of Company-owned RECs. c. Yes. In order to participate in this offering, customer’s total energy usage for current and/or future years will be estimated. Alternatively, the customer can 1 RECs generated by Company-owned generation resources or Company-owned through contract terms of a Power Purchase Agreement. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 19 designate another amount as long as the minimum is 750 MWh per year. The customer will sign an agreement to purchase the agreed-upon MWh of RECs. d. The current Large Purchase Option requires payment annually. If RECs are for the current calendar year, payment is due upon execution of a purchase and sale agreement. If RECs are for a future year, payment is due prior to that commencement of that year. Other payment arrangements (quarterly, biannually, or after the year ends) may be considered with a credit review. Payment terms for third-party sourced RECs will be dependent on the third- party seller’s payment requirements. e. In 2019, Idaho Power consulted with Commission staff prior to executing the first REC sales agreement with a business customer. As these contracts are consistent with the Company’s REC Management Plan, the Company has not provided subsequent agreements to Commission Staff. If desired, Idaho Power can confidentially share agreement copies with the Commission. f. The Clean Energy Your Way program was designed to offer a variety of clean energy options for customers. There are a number of reasons why RECs may be a preferred clean energy option for customers, including:  If a customer’s energy use and REC needs are higher than estimated, the customer may “true-up” and purchase RECs through the Flexible offering to ensure 100 percent clean energy attributes in comparison to the customer’s annual load requirements. Currently, a “true-up” is only available to customers if Company-owned RECs are available. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 20  For business customers, the minimum term length for the Subscription offering is five (5) years. The minimum term for the Large Purchase Option is one (1) year.  Businesses with leased office space may not have an Idaho Power account, even though their business is located in Idaho Power’s service area. As a result, these types of businesses will not be eligible for the Subscription but can participate in the Flexible offering, assuming they meet eligibility requirements. In such instances, the Company can provide alternative billing options outside of a standard electric bill.  The Subscription will have limited availability based on the size of the resource. The Large Purchase Option can supply Idaho Power owned- RECs or, if approved, can connect customers with third-party sellers to fulfill their clean energy needs. Finally, it should be noted that customers may simultaneously participate in both the Flexible and Subscription offerings. The response to this Request is sponsored by Theresa Drake, Customer Relations and Energy Efficiency Senior Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 21 REQUEST FOR PRODUCTION NO. 10: Schedule 62, Attachment 1, states “participants will designate one of two billing options upon enrollment;” however, three options are provided. Which two billing options will participants be able to participate in? RESPONSE TO REQUEST FOR PRODUCTION NO. 10: Staff is correct, there are three options a customer may participate in under the Clean Energy Your Way – Flexible option. The Company inadvertently missed the numbering change in the proposed tariff language. Subsequent to a Commission order in this matter, the Company will submit a compliance filing to correct the oversight and will incorporate any other modifications as directed by the Commission. The response to this Request is sponsored by Connie Aschenbrenner, Rate Design Senior Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 22 REQUEST FOR PRODUCTION NO. 11: Similar to Exhibit No. 2 in the Direct Testimony of Allison Williams, please provide a mock customer bill for the Construction option. RESPONSE TO REQUEST FOR PRODUCTION NO. 11: The Company did not provide a mock customer bill for the Construction option because there will not be a standard bill format for Construction arrangements. Each Construction arrangement will be individually negotiated and, as such, may include unique billing elements or structure. Unlike the standard billing envisioned for the Subscription offering, Construction arrangements are expected to be billed manually by Idaho Power’s Finance Department, similar to the existing billing practices for Special Contracts. The response to this Request is sponsored by Matisse Weigel, ERP Applications Senior Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 23 REQUEST FOR PRODUCTION NO. 12: Similar to Exhibit No. 2 in the Direct Testimony of Allison Williams, please provide a mock customer bill for a tailored agreement for Option 3: Large Purchase Option under the Flexible option. RESPONSE TO REQUEST FOR PRODUCTION NO. 12: As discussed in the Company’s response to Staff Request No. 9d, the current Large Purchase Option requires payment annually and is billed manually by Idaho Power’s Finance Department. If RECs purchased are for the current calendar year, payment is due upon execution of a purchase and sale agreement. The response to this Request is sponsored by Matisse Weigel, ERP Applications Senior Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 24 REQUEST FOR PRODUCTION NO. 13: In the Direct Testimony of Allison Williams, page 50 states “each construction arrangement will include a no-harm revenue requirement analysis to ensure that non-participants are held harmless.” When does the Company plan to conduct this analysis and how often will it occur? Will the Company do the same analysis for the Subscription option? RESPONSE TO REQUEST FOR PRODUCTION NO. 13: The Company will conduct a single no-harm analysis of each Construction arrangement as part of the filing for approval of that arrangement with the Commission. For the Subscription, the Company proposes to include a single no-harm analysis to accompany the Company’s second filing related to the Subscription to demonstrate that the identified resource for the offering will hold harmless non- subscribers. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 25 REQUEST FOR PRODUCTION NO. 14: Please provide all notes and workpapers used in development of proposed updates to Schedule 62 in Excel format, with formulae intact. RESPONSE TO REQUEST FOR PRODUCTION NO. 14: The guiding structure of the updates to Schedule 62 were presented to Commission Staff at a workshop on July 7, 2021. The presentation is provided as an attachment to this response. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 26 REQUEST FOR PRODUCTION NO. 15: Does Jackpot Solar qualify for the proposed Clean Energy Your Way Subscription option or the proposed Clean Energy Your Way Construction option? RESPONSE TO REQUEST FOR PRODUCTION NO. 15: No. Prospective participants in the Subscription and Construction offerings are seeking “additionality” or “net new” resources to meet their clean energy objectives. The Company has included the Jackpot Solar resource in its Integrated Resource Plan since 2019. While not yet constructed, Jackpot Solar does not meet the definition of a “net new” resource, and thus will not meet the needs of Idaho Power customers who have expressed a desire for expanded clean energy offerings. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 27 REQUEST FOR PRODUCTION NO. 16: Are there resources that are immediately available for the proposed Clean Energy Your Way Subscription option and/or proposed Clean Energy Your Way Construction option. If so, please provide a list RESPONSE TO REQUEST FOR PRODUCTION NO. 16: For both the Subscription and Construction offerings, the Company may consider projects that bid into Idaho Power’s recent Requests for Proposals. The Company may also consider projects in any future RFPs as options for the Subscription and Construction offerings. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 28 REQUEST FOR PRODUCTION NO. 17: If no resources are immediately available for proposed Schedule 62, please provide a timeline of when such resources that qualify will be determined. RESPONSE TO REQUEST FOR PRODUCTION NO. 17: Please see the Company’s response to Staff’s Production Request No. 16. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 29 REQUEST FOR PRODUCTION NO. 18: What is the upfront cost to customers for the proposed Clean Energy Your Way Subscription option and the proposed Clean Energy Your Way Construction option? RESPONSE TO REQUEST FOR PRODUCTION NO. 18: The Company’s proposed pricing does not include an upfront cost component to participate. One of the main takeaways from the Idaho Community Solar Pilot Program was cost and recovery of initial investment as barriers to participation in the program. The Company’s proposed offering reflects stakeholder feedback on this issue. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 30 REQUEST FOR PRODUCTION NO. 19: Please provide the entire accounting treatment for the proposed Clean Energy Your Way Subscription option including, but not limited to, deferral account numbers, expected monthly journal entries of customer participant charges, the Company’s operating expenses of such Subscription Option, cost to procure the resources for such Subscription option, the financing costs to the Company to procure a resource for such Subscription Option and all other relevant costs to maintain the proposed Schedule 62 Clean Energy Your Way Subscription option? Please provide workpapers in Excel format to support and justify your answer. RESPONSE TO REQUEST FOR PRODUCTION NO. 19: All costs, financial analysis, program accounting treatment, customer charges/credits, and customer agreements would be determined in the second filing, as these details are not possible to establish absent a known resource. As described in the Application filed in this case, Idaho Power envisions a two-phase process for the Clean Energy Your Way - Subscription option. Idaho Power has filed phase one which seeks approval of the foundational concepts of program design and structure. Upon Commission approval to offer Clean Energy Your Way – Subscription, Idaho Power would seek a Subscription- dedicated resource. Once a resource is identified, Idaho Power would propose specific subscription pricing under the structure approved in phase one and return to the Commission for approval of those program elements and associated tariff changes. The main purpose of the first phase of review addressed in this case is to seek approval or acknowledgement from the Commission for the general framework for a future Clean Energy Your Way - Subscription offering. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 31 The Company is seeking this initial determination to provide a reasonable level of assurance that once a resource is procured for the program offering, the Company can bring a recommendation to implement the program without major unanticipated modification or cost disallowances. To be clear, the Company is not looking for preapproval of ratemaking or prudence, just acknowledgement that the proposed Clean Energy Your Way - Subscription offering is reasonably pursued under the proposed framework. The response to this Request is sponsored by Tami White, Budget and Revenue Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 32 REQUEST FOR PRODUCTION NO. 20: Please provide the accounting treatment for the proposed Clean Energy Your Way Construction option including, but not limited to, monthly journal entries of customer participant charges, Company’s operating expenses of such Construction option, cost to procure the resources for such Construction option, the financing costs to the Company to procure a resource for such Construction option and all other relevant costs to maintain the proposed Schedule 62 Clean Energy Your Way Construction option? Please provide workpapers in Excel format to support and justify your answer. RESPONSE TO REQUEST FOR PRODUCTION NO. 20: As described in the Application filed in this case, Idaho Power requests approval from the Commission to offer the Construction option under a broad framework with consistent mechanics and pricing structure. Idaho Power envisions that the rates and other charges/credits resulting from each Construction arrangement would be approved by the Commission on a case-by-case basis. Once a resource is identified, Idaho Power would propose specific pricing under the terms of a Construction agreement and would seek Commission approval of the agreement. Brisbie, LLC is the first example of a Clean Energy Your Way – Construction arrangement. Accounting treatment specific to that agreement is being addressed in IPC-E-21-42. The response to this Request is sponsored by Tami White, Budget and Revenue Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 33 REQUEST FOR PRODUCTION NO. 21: If a waiver is granted for the Oregon Public Utilities Commission Procurement process, what are the financial savings to participants in the proposed Schedule 62 Clean Energy Your Way Subscription Option and proposed Schedule 62 Clean Energy Your Way Construction Option? Please provide workpapers in Excel format to support your answer. RESPONSE TO REQUEST FOR PRODUCTION NO. 21: The waiver request is intended to reduce the lengthy resource procurement process timeline that currently exists under the Oregon Public Utilities Commission (OPUC) Resource Procurement rules. Any savings that might be achieved from a waiver would result from reduced administrative costs, not from the resource itself. Idaho Power will still undertake a competitive process to identify resources for the Subscription and Construction offerings. That process, however, will not involve all of the OPUC requirements, which Idaho Power believes can delay the effective and efficient selection of resources. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 34 REQUEST FOR PRODUCTION NO. 22: When will customers who subscribe for the proposed Clean Energy Your Way Subscription option know what the costs will be to participate? RESPONSE TO REQUEST FOR PRODUCTION NO. 22: The Company does not plan to enroll customers in the Subscription prior to Commission approval of the offering and the tariff. Therefore, customers will know upon enrollment in the Subscription offering the costs and benefits of participating. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 35 REQUEST FOR PRODUCTION NO. 23: Will the Company file an updated revenue requirement for the proposed Clean Energy Your Way – Subscription option when resource(s) are known? RESPONSE TO REQUEST FOR PRODUCTION NO. 23: The Company has not yet identified a resource for the Subscription offering. Upon approval of Idaho Power’s current application, the Company will begin considering resources for the Subscription. That resource could be procured via Power Purchase Agreement (PPA). Under this structure, revenue requirement would not be updated, as the cost of the PPA would be captured in the Subscription price. Should Idaho Power identify a Company-owned resource option, then an updated revenue requirement would be provided. The response to this Request is sponsored by Matt Larkin, Revenue Requirement Senior Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 36 REQUEST FOR PRODUCTION NO. 24: What are the expected costs to operate the entire proposed Schedule 62 Clean Energy Your Way? Please provide workpapers in Excel format supporting your answer. RESPONSE TO REQUEST FOR PRODUCTION NO. 24: Idaho Power does not anticipate additional personnel costs to operate the Clean Energy Your Way program. Costs will be limited to the existing costs to operate the Green Power Program (the future Clean Energy Your Way – Flexible offering) and future administrative costs—for marketing and advertising—in the Subscription offering. Please refer to the Company’s response to Staff’s Production Request No. 8 for a more detailed discussion of Subscription-specific marketing costs. The response to this Request is sponsored by Theresa Drake, Customer Relations and Energy Efficiency Senior Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 37 REQUEST FOR PRODUCTION NO. 25: How will the Company hold non- participants harmless when Schedule 62 costs exceed revenues? RESPONSE TO REQUEST FOR PRODUCTION NO. 25: The Green Power Program—to become Clean Energy Your Way – Flexible—has a demonstrated track record of program costs being covered by program participants. For both the Subscription and Construction offerings, the Company will not put applications for approval before the Commission unless the no-harm analysis for each offering or individual arrangement demonstrates no unreasonable cost shift to existing Idaho Power customers. Idaho Power does not anticipate costs exceeding revenues. The Construction offering by design, will include all the costs of the dedicated resource(s). The Subscription offering will be designed to cover the incremental cost of the resource and administrative expenses. In the event there is unsubscribed energy under the Subscription, that energy will be dispatched to the system to the benefit of all Idaho Power’s customers and included in broader customer rates or the PCA. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 38 REQUEST FOR PRODUCTION NO. 26: Please provide the accounting treatment and impact on non-participants when Schedule 62 revenues exceed costs. RESPONSE TO REQUEST FOR PRODUCTION NO. 26: Flexible – Program revenues will not exceed costs because Idaho Power will not sell RECs in advance of acquiring them. Subscription - Please refer to Idaho Power’s response to Production Request No. 19. Program accounting treatment would be determined in the second filing, as these details are not possible to establish absent a known resource. Idaho Power does not expect revenues to exceed costs because program participants will be paying the costs of the program. Construction - Please refer to Idaho Power’s response to Production Request No. 20. Once a resource is identified, Idaho Power would propose specific pricing under the terms of a construction agreement and would seek Commission approval of the agreement. Accounting treatment would be determined at that time, as these details are not possible to establish absent a known resource and specific customer arrangement. Idaho Power does not expect revenues to exceed costs because Construction customers will be paying for the full cost of resources. The response to this Request is sponsored by Tami White, Budget and Revenue Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 39 REQUEST FOR PRODUCTION NO. 27: Please provide the accounting treatment and an explanation of how the Company will hold non-participants harmless from those that participate in the proposed Clean Energy Your Way Construction option? RESPONSE TO REQUEST FOR PRODUCTION NO. 27: Regarding accounting treatment, please refer to Idaho Power’s response to Production Request No. 20. The Construction offering is designed so that non-participating customers are held harmless. Each Construction arrangement will include a no-harm financial analysis to demonstrate that all costs are borne by the Construction customers and do not shift costs to non-participants. In IPC-E-21-42, Company witness Pawel Goralski describes on pages 21-23 of his testimony how the no-harm analysis was conducted for Brisbie, LLC, the first proposed Clean Energy Your Way – Construction customer: “Idaho Power completed a present-value revenue requirement analysis for two portfolios [one with Brisbie resources and another without] and evaluated the difference in cost between the portfolios to ensure any unreasonable cost shift to existing Idaho Power customers is avoided.” The response to this Request is sponsored by Tami White, Budget and Revenue Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 40 REQUEST FOR PRODUCTION NO. 28: For the Subscription Offering, please provide a detailed explanation through examples using assumed values for the different components of the rate design and by using a likely proxy resource, how the Company will ensure non-participating customers are held harmless for two scenarios: 1) the resource is fully subscribed; and 2) the resource is not fully subscribed, requiring energy from the resource being passed through the PCA. Please include the following for the two scenarios. a. The calculations for the program charge. b. The calculation for the program credit. c. The amounts included in the participant’s bill. d. The items and amounts that will be passed through the PCA using the new PCA format. RESPONSE TO REQUEST FOR PRODUCTION NO. 28: The Company recognizes that Staff is seeking to understand the potential costs, credits, and financial impact on Subscription participants. Providing hypothetical calculations at this stage would require a series of assumptions and might not yield the insight that Staff is seeking. As a result, the Company has provided responses below consistent with its Application for approval of the broad framework of the Subscription. Should Staff believe that early-stage hypothetical numbers are necessary to understand the Subscription framework, Idaho Power can work to provide such an analysis. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 41 a. As described in Exhibit 1 of Ms. Williams testimony, the Program Charge will include the following components:  Resource Cost ($/kWh)  Resource-specific Integration Charges  Program Administration and Marketing  Short-Term Adjustment Charge b. The calculation of the credit has not yet been determined, but it will include an energy and capacity component and is not to exceed the program charge. c. The Company provided a mock customer bill as Exhibit 2 to the testimony of Ms. Williams. The Schedule 62 – Subscription rates are in addition to all charges under the Customer’s existing Electric Service Schedule. A participant’s electric bill will include five new line items: (1) the name of the program (Clean Energy Your Way – Subscription), (2) subscriber amount (in kWh), (3) subscriber charge amount, (4) subscriber credit amount, and (5) net cost (subscriber charge less subscriber credit). d. The bill credits for subscribed energy, as well as any unsubscribed energy, will be included in broader customer rates and/or the PCA mechanism. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 42 REQUEST FOR PRODUCTION NO. 29: Please describe any market research the Company has performed to determine the price range customers are willing to pay for the Subscription offering. If a price range has been determined, please explain if current available resources are able to meet the price range. RESPONSE TO REQUEST FOR PRODUCTION NO. 29: In 2019, the Company conducted a survey of customers and asked the following questions with the resulting responses:  Do you support Idaho Power’s clean-energy goal? 89.6%  How much more are you willing to pay? o 20% more: 11.5% o 10% more: 18.9% o 5% more: 27.7% While this survey was originally performed as the Company developed Clean Today. Cleaner Tomorrow.®, the results provide insight into the pricing of clean energy programs like the Subscription offering. In addition, over the course of the past two years, the Company has engaged in individual conversations with customers across all classes to better understand how pricing would influence adoption of clean energy programs like the Subscription offering. While unofficial, it is fair to summarize that many customers – residential, commercial, and industrial – are sensitive to pricing of proposed offerings but are also willing to pay a premium. Pricing for the Subscription offering has not been determined because doing so will first require identification of a resource to serve the Subscription. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 43 As described by Company witness Alison Williams in her testimony on pages 32- 33: “the Company proposes a two-phase process for the Subscription offering – an initial phase (the current request) to offer a voluntary subscription-based program, and the secondary phase that will launch upon approval of the first…..the Subscription would not be available to participants until the conclusion of a separate and subsequent proceeding addressing the resource procurement, resource cost, cost allocation, and any other required regulatory accounting and necessary cost recovery mechanisms.” Ms. Williams’s testimony further articulates on page 33-34: “In Phase II, and upon Commission approval to offer Clean Energy Your Way – Subscription, Idaho Power would seek a Subscription-dedicated resources. Resource selection would involve determining the resource type, size, and location. Once a resource is identified, Idaho Power would propose specific subscription pricing under the structure approved in Phase I and return to the Commission for approval of those program elements and associated tariff changes.” The response to this Request is sponsored by Megan Ronk, Economic Development & Innovation Director, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 44 REQUEST FOR PRODUCTION NO. 30: For the Construction Offering, please provide a detailed explanation through examples using assumed values for the different components of the rate design and by using a likely proxy resource, how the Company will ensure non-participating customers are held harmless. Please provide the calculations for the following hourly situations relative to paragraph 39 of the Application by including the calculations for the different rate components and the items and amounts that will be passed through the PCA: a. When the renewable resource is not generating, and the customer is consuming energy. b. When the renewable resource is generating, but it is generating less than the amount the customer is consuming. c. When the renewable resource is generating, but it is generating more than the amount the customer is consuming. d. When the renewable resource is generating, and the customer is not consuming energy. RESPONSE TO REQUEST FOR PRODUCTION NO. 30: Each Construction arrangement will be developed individually with participating customer(s). As a result, each Construction arrangement will differ by resource size, type, the customer’s underlying energy requirements, and the Construction-specific charges/credits may differ. Similarly, each Construction arrangement will have its own no-harm analysis, meaning that the creation of one with “assumed values” may not provide meaningful insight into the way individual no-harm analyses will be developed. For a description of IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 45 the no-harm analysis approach used for Brisbie, LLC, in IPC-E-21-42, please refer to the response to Staff’s Production Request No. 27. Broadly, the Construction offering will follow a shared construct, as explained in paragraph 39 of the Application. Below, the Company provides an illustration to assist in understanding the foundational cost and credit streams of Construction arrangements. The Company introduced this illustration previously in the Clean Energy Your Way workshop with Staff on July 7, 2021. Construction Arrangement Pricing Illustration In this illustration, a solar resource and basic solar shape is assumed. The white and gray rows correspond to hours/times of the day, with the top-most gray row representing all pre-dawn hours and the bottom gray row representing all post-sunset hours. For both of these rows, the solar resource would not be generating and so no output is reflected in orange for these rows. In this illustration, the red dollar signs reflect charges, while the green dollar signs reflect credits. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 46 Staff’s specific questions are addressed below using the illustration above as the example: a. When the renewable resource is not generating, the customer will pay the energy charges consistent with their tariff along with all their other standard charges. In the illustration above, this cost stream is reflected in the middle column “Idaho Power Energy Cost” by the red dollar sign in Row 1, Column 2. Because a solar resource will not generate before dawn or after sunset, there are no other charges or credits at this time. Power Supply Costs incurred by Idaho Power to serve the customer’s load would be included as power supply costs tracked through the PCA for customers paying tariff rates based on embedded system costs. If customers pay a marginal energy rate for service from Idaho Power, the collections from the customer would be recognized as a credit to power supply costs in the PCA, thus carving out those potentially higher, marginal power supply costs from collection through the PCA from non-participating customers. b. When the renewable resource is generating, but it is generating less than the amount the customer is consuming, the customer will pay for all of the solar output in that hour (as represented by the red dollar sign in Row 2, Column 1), as well as their energy charges for the difference between what the solar resource can provide in that hour and their energy need in that hour (as represented by the red dollar sign in Row 2, Column 2). PCA impacts are the same as the response 30a for energy delivered from Idaho Power, renewable IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 47 resource PPA costs would not be included in the PCA as they are paid by the Clean Energy Your Way customer. c. When the renewable resource is generating, but it is generating more than the amount the customer is consuming, the customer will pay the entire output of the solar resource in that hour (as represented by the red dollar sign in Rows 4-6. Because the solar resource will exceed the customer’s energy needs in these hours, the customer will not pay for energy from Idaho Power. The customer will also be credited for the value of excess generation that exceeds the customer’s energy needs in any hour—represented by the green dollar signs in Rows 4-6. The value of the excess generation credited to the customer will be a power supply cost tracked and collected through the PCA. d. Unless a customer were to lose power or temporarily disconnect from Idaho Power, there are no circumstances in which a Construction offering customer (either a Schedule 19 or Special Contract customer) would not consume at least some amount of energy to run their operations. However, in such circumstances, the customer would still pay for the cost of solar output in any hour the resource generates and be credited for any amount above their consumption on an hourly basis. PCA impacts are the same as response 30c. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 48 REQUEST FOR PRODUCTION NO. 31: Please fully describe the competitive procurement process the Company envisions for the Subscription and Construction offering resources. In the response, please indicate, for the two types of offerings, if the Company plans to receive competitive bids, and whether the Company is targeting resources in the form of PPAs, company-owned resources, or both. Please provide justification for the Company’s preferred approach. RESPONSE TO REQUEST FOR PRODUCTION NO. 31: Please refer to responses to Staff’s Production Request Nos. 16, 23, 32, and 33, related to resource identification, selection, and procurement. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 49 REQUEST FOR PRODUCTION NO. 32: Please confirm the resources obtained for the Subscription and Construction Offering are either Company owned or contracted by the Company through a PPA. If not, please explain. RESPONSE TO REQUEST FOR PRODUCTION NO. 32: Correct – the resources for the Subscription and Construction offerings will either be Company-owned or contracted by the Company via PPA. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 50 REQUEST FOR PRODUCTION NO. 33: Please explain the risks associated with the Company owning the generation resource versus the resource being obtained through a PPA for the Subscription offering and Construction offering, separately. RESPONSE TO REQUEST FOR PRODUCTION NO. 33: Idaho Power’s resource procurement process is always focused on risk minimization. The Company believes several risks exist associated with resources procured through a PPA, including, but not limited to, the developer failing to meet its obligation to provide energy and/or capacity in the contractual timeframe or at the contracted price, as well as the risk of additional costs to customers associated with imputed debt applied to resources not owned by the Company. Additionally, the Company has greater control of and flexibility to manage resources it owns and operates. Idaho Power believes resources obtained via PPA can be a preferred option in some instances. The Company will always strive for the most reliable and cost-effective method to serve customers and meet their clean energy needs. Idaho Power has detailed the benefits of Company-owned resources in IPC-E- 21-41. The response to this Request is sponsored by Alison Williams, Regulatory Policy and Strategy Advisor, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 51 REQUEST FOR PRODUCTION NO. 34: For the Construction Offering, please explain if funding a resource that is Company owned through Contribution in Aid of Construction (CIAC) charged to participants is possible. Also please provide the advantages and disadvantages of funding the capital cost of the resource through a CIAC versus the Company recovering the capital exclusively through customer rates. RESPONSE TO REQUEST FOR PRODUCTION NO. 34: The Company does not consider a Contribution in Aid of Construction (CIAC) a viable option for Clean Energy Your Way – Construction arrangements. Idaho Power would be required to collect a tax gross-up on the CIAC, which would increase the upfront cost for the participant. Additionally, and based on customer conversations in the development of the Construction offering, Idaho Power does not believe that funding a resource through a large, upfront cost will meet the needs or align with cost considerations of its largest customers in achieving their clean energy-related goals. The response to this Request is sponsored by Tami White, Budget and Revenue Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 52 DATED at Boise, Idaho, this 11th day of February 2022. LISA D. NORDSTROM Attorney for Idaho Power Company IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 53 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 11th day of February 2022, I served a true and correct copy of Idaho Power Company’s Response to First Production Request of the Commission Staff to Idaho Power Company upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Riley Newton Deputy Attorney General Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg No. 8, Suite 201-A (83714) PO Box 83720 Boise, ID 83720-0074 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: Riley.Newton@puc.idaho.gov Industrial Customers of Idaho Power Peter J. Richardson Richardson Adams, PLLC 515 N. 27th Street P.O. Box 7218 Boise, ID 83702 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: peter@richardsonadams.com Dr. Don Reading 6070 Hill Road Boise, Idaho 83703 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: dreading@mindspring.com Idaho Conservation League Benjamin J. Otto Emma E. Sperry Idaho Conservation League 710 N. 6th Street Boise, ID 83702 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: botto@idahoconservation.org esperry@idahoconservation.org Vicki M. Baldwin Parsons Behle & Latimer 201 South Main Street, Suite 1800 Salt Lake City, UT 84111 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: vbaldwin@parsonsbehle.com IDAHO POWER COMPANY’S RESPONSE TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY- 54 Steve W. Chriss Director, Energy Services Walmart, Inc. Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: stephen.chriss@walmart.com City of Boise Ed Jewell Deputy City Attorney’s Office 150 N. Capitol Blvd. P.O. Box 500 Boise, ID 83701-0500 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: ejewell@cityofboise.org boisecityattorney@cityofboise.org Wil Gehl Energy Program Manager Boise City Department of Public Works 150 N. Capitol Blvd. P.O. Box 500 Boise, ID 83701-0500 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: wgehl@cityofboise.org Clean Energy Opportunities for Idaho Kelsey Jae Law for Conscious Leadership 920 N. Clover Dr. Boise, ID 83703 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: Kelsey@kelseyjae.com Courtney White Mike Heckler Clean Energy Opportunities for Idaho 3778 Plantation River Drive, Suite 102 Boise, ID 83703 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: courtney@cleanenergyopportunities.com mike@cleanenergyopportunities.com ________________________________ Stacy Gust, Regulatory Administrative Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-21-40 IDAHO POWER COMPANY REQUEST NO. 14 ATTACHMENT 1 SEE ATTACHED DOCUMENT