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HomeMy WebLinkAbout20230425IPC to Staff 1-18.pdf DONOVAN WALKER Lead Counsel dwalker@idahopower.com April 25, 2023 VIA ELECTRONIC FILING Jan Noriyuki, Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg 8, Suite 201-A (83714) PO Box 83720 Boise, Idaho 83720-0074 Re: Case No. IPC-E-23-05 In the Matter of Idaho Power Company’s Application for a Certificate of Public Convenience and Necessity to Acquire Resources to be Online by 2024 and Approval of a Power Purchase Agreement with Franklin Solar LLC Dear Ms. Noriyuki: Attached for electronic filing, please find Idaho Power Company’s Response to Staff’s First Production Request. The confidential attachments will be provided to the parties who sign the Protective Agreement. Please feel free to contact me directly with any questions you might have about this filing. Very truly yours, Donovan E. Walker DEW:sg Enclosures RECEIVED Tuesday, April 25, 2023 4:18:59 PM IDAHO PUBLIC UTILITIES COMMISSION CERTIFICATE OF ATTORNEY ASSERTION THAT INFORMATION CONTAINED IN AN IDAHO PUBLIC UTILITIES COMMISSION FILING IS PROTECTED FROM PUBLIC INSPECTION Case No. IPC-E-23-05 Idaho Power Company’s Application for a Certificate of Public Convenience and Necessity to Acquire Resources to be Online by 2024 and Approval of a Power Purchase Agreement with Franklin Solar LLC The undersigned attorney, in accordance with RP 67, believes that attachments in response to Request Nos. 3, 5, 7, and 17 to Idaho Power Company’s Response to the First Production Request of the Commission Staff to Idaho Power Company dated April 25, 2023, may contain information that Idaho Power Company or a third party claims is confidential as described in Idaho Code § 74-101, et seq., and § 48-801, et seq., and as such is exempt from public inspection, examination, or copying. DATED this 25th day of April 2023. Donavan Walker Counsel for Idaho Power Company IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 1 DONOVAN E. WALKER (ISB No. 5921) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 dwalker@idahopower.com Attorney for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO ACQUIRE RESOURCES TO BE ONLINE BY 2024 AND FOR APPROVAL OF A POWER PURCHASE AGREEMENT WITH FRANKLIN SOLAR LLC. ) ) ) ) ) ) ) ) CASE NO. IPC-E-23-05 IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY COMES NOW, Idaho Power Company (“Idaho Power” or “Company”), and in response to the First Production Request of the Commission Staff (“Commission” or “Staff”) dated April 4, 2023, herewith submits the following information: IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2 REQUEST FOR PRODUCTION NO. 1: Please explain how the Company will serve load if its Application is denied. RESPONSE TO REQUEST FOR PRODUCTION NO. 1: The Company is unable to fully respond with a solution to this hypothetical scenario without an understanding as to why the Application is denied. That is, a denial premised on the conclusion that the resources are not needed would likely result in a different Company response than a denial based on the conclusion that the resources are not least cost and least risk or some other rationale. Notwithstanding these unknowns, it is important to note that Jared Ellsworth testified that the Company has identified a 2024 capacity deficiency of 103 megawatts (“MW”). Given the limited amount of time before summer 2024 and procurement and construction timelines, it will not be feasible to contract with an alternative new generation resource and have it completed in time to meet that need. If the Company’s Application is denied and the identified capacity need still exists, Idaho Power would look first to secure energy deliveries to its border or firm transmission to facilitate market energy purchases. If these options were not available, the Company would be forced to rely on imports on non-firm transmission to meet that load. The response to this Request is sponsored by Camille Christen, Resource Acquisition, Planning, and Coordination Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3 REQUEST FOR PRODUCTION NO. 2: Please explain how the Company will serve load if the Application is approved and project implementation is delayed. RESPONSE TO REQUEST FOR PRODUCTION NO. 2: Please see the Company’s Response to Request for Production No. 1. If project implementation is delayed, Idaho Power would need to seek replacement capacity for the period of the delay and would pursue all available remedies under the agreements with the project(s). The response to this Request is sponsored by Camille Christen, Resource Acquisition, Planning, and Coordination Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4 REQUEST FOR PRODUCTION NO. 3: Was the Request For Proposal ("RFP") and bid evaluation process put out for proposal? If not, why not? If yes, what companies other than Black & Veatch, LLC were considered and what criteria was used to evaluate these companies and make a final selection? RESPONSE TO REQUEST FOR PRODUCTION NO. 3: Yes. Please see Attachment 1 for the RFP that was issued to select a third-party to assist the Company with the resource procurement RFP and bid evaluation process. Idaho Power selected Black & Veatch Management Consulting, LLC through the competitive RFP conducted in April 2021. Attachment 1 also includes the evaluation criteria used to evaluate the four competitive bids received, the results of which are included as Confidential Attachment 2. The response to this Request is sponsored by Eric Hackett, Senior Manager Project and Design, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5 REQUEST FOR PRODUCTION NO. 4: Please describe in detail "the significant third-party transmission constraints" Company witness Jared Ellsworth is referring to on page 7 of his direct testimony? RESPONSE TO REQUEST FOR PRODUCTION NO. 4: The reference to the significant third-party transmission constraints on page 7 of Mr. Ellsworth’s testimony was described beginning on page 18 when discussing the evaluation of transmission acquisition under emergency conditions and further in the Company’s 2021 Integrated Resource Plan – Appendix D. As evidenced during recent energy emergency events resulting from extreme weather in the region, increased demand that cannot be met with local generation results in strain on the interconnected transmission system. Understanding the importance of transmission availability during times of high electricity demand, entities have reserved transmission capacity across the west, including just outside the Company’s border, significantly limiting Idaho Power’s access to market hubs. The Company’s own transmission service queue was flooded with multi-year requests with third-party marketing firms looking to move energy from Mid-C across Idaho Power’s transmission system to the south. While the Company is able to reserve its own transmission for use by its customers, the transmission service requests just outside the Company’s borders have added to an already constrained transmission market limiting the Company’s access to Mid-C. The response to this Request is sponsored by Jared Ellsworth, Transmission, Distribution and Resource Planning Director, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6 REQUEST FOR PRODUCTION NO. 5: Please provide supporting worksheets which show costs and deliverability of gas-fired convertible to hydrogen resources described on page 9 of Company witness Eric Hackett's direct testimony. RESPONSE TO REQUEST FOR PRODUCTION NO. 5: Please see Confidential Attachment 1. The response to this Request is sponsored by Eric Hackett, Projects and Design Senior Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7 REQUEST FOR PRODUCTION NO. 6: Company witness Eric Hackett states in his direct testimony that the Company "will own 100 percent of the Green Tags and Environment Attributes associated with the facility." Hackett Direct at 28. Please describe the financial benefits the Company expects to recognize through ownership of these attributes. Please describe the benefits ratepayers will recognize from the Company's ownership of these attributes. How will the ratepayers receive the benefits? Please describe if ratepayers will receive benefits through the Company's annual Power Cost Adjustment ("PCA"). RESPONSE TO REQUEST FOR PRODUCTION NO. 6: The benefits associated with the ownership of green tags and environmental attributes from the Franklin Solar Power Purchase Agreement were modeled as part of the Long-Term Capacity Expansion ("LTCE") modeling in AURORA, consistent with the 2021 Integrated Resource Plan (“IRP”) and as quantified in the 2021 IRP Appendix C.1 Once sold, the proceeds from the Renewable Energy Credits flow through the PCA as a benefit to customers in accordance with Idaho Power’s REC Management Plan, approved with Order No. 32002. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, Idaho Power Company. 1 Idaho Power’s 2021 IRP, Appendix C, Page 48. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8 REQUEST FOR PRODUCTION NO. 7: In Company witness Eric Hackett's Exhibit No. 1, pages 15-16, a non-refundable Evaluation Fee of $10,000 and a Supplemental Fee are described. Please explain the accounting treatment used for these fees and provide a supporting worksheet that details fees received to date. RESPONSE TO REQUEST FOR PRODUCTION NO. 7: In accordance with Order No. 29904, Idaho Power records the non-refundable evaluation fees and supplemental fees (“bid fees”) to a Preliminary Survey and Investigation account (Federal Energy Regulatory Commission Account 183005). If the Company’s request in this case is approved, the bid fees will be reclassified to the appropriate plant account, offsetting the cost of the project(s) built as a result of the RFP. Please see Confidential Attachment 1 for the bid fees by respondents of the 2022 RFP, which includes project proposals for both 2024 and 2025. If the project is not deemed viable and therefore not constructed, under Order No. 29904 the bid fees would be transferred to FERC Account 182.3 – Regulatory Assets and amortized between one and five years, depending on the total bid of the fees recorded. The response to this Request is sponsored by John Wonderlich, Finance Team Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 9 REQUEST FOR PRODUCTION NO. 8: Please describe the selected physical locations in detail for all solar and battery components of the project and include detailed maps. RESPONSE TO REQUEST FOR PRODUCTION NO. 8: The 100 MW solar photovoltaic facility, Franklin Solar, and 60 MW energy storage facility are located along Highway 93 in Twin Falls County, approximately two miles south of Rogerson, Idaho and directly adjacent to the existing Jackpot Solar facility. The 12 MW Battery Energy Storage System (“BESS”) is located at the Idaho Power Hemingway Station in Owyhee County, ID, approximately three miles west of Walters Ferry, Idaho. The 12 MW BESS is an expansion of the planned 80 MW BESS that will be installed in the summer of 2023. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 10 The response to this Request is sponsored by Eric Hackett, Senior Manager Projects and Design, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 11 REQUEST FOR PRODUCTION NO. 9: Please explain how the Company intends to mitigate supply chain issues, and other common delays, and ensure timely completion of the proposed project, if approved. RESPONSE TO REQUEST FOR PRODUCTION NO. 9: Idaho Power has an overarching build transfer agreement with Duke Energy Renewables Solar, LLC (“Duke”), with material delivery and construction performance deadlines that are required within the build transfer agreement. The same provisions are also included in the underlying battery supply agreement and the engineering, procurement, and construction (“EPC”) agreement. All three agreements include delay damages related to both material delivery and the construction and commissioning of the BESS. Contract administration and project management reports are required to be exchanged on a regular basis throughout the life cycle of the project between Idaho Power, Duke, and the battery supplier and EPC contractor, ensuring scheduling obligations are met or updated to mitigate supply chain risk and accomplish timely completion of the project. The response to this Request is sponsored by Eric Hackett, Senior Manager Projects and Design, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 12 REQUEST FOR PRODUCTION NO. 10: Company witness Jared Ellsworth direct testimony at 12-13 lists several new resources including the Black Mesa project, the Hemingway project, various battery storage, and upgrades at the Company's gas peaking plants that are all due to be completed at different times throughout 2023. For each project, please provide the status, estimated in service date, and if any delays have occurred and the cause of those delays. RESPONSE TO REQUEST FOR PRODUCTION NO. 10: The following identifies the new resources or resource upgrades, their status and expected in-service date: Facility Size Expected In-Service Date Black Mesa Solar Photovoltaic Power Purchase Agreement 40 MW June 2023 Black Mesa Battery Storage 40 MW September 2023 Hemingway Battery Storage 80 MW June 2023 Distribution Substation Battery Storage 5 MW 6 MW June 2023 October 2023 Danskin 10-12 MW October 2023 Bennett Mountain 10-12 MW In-service November 2022 While Idaho Power is experiencing a limited delay on some of the battery storage projects, the Company remains in daily conversations with Powin Energy Corporation (“Powin”), the supplier of the 2023 Battery Energy Storage Systems (“BESS”), to expedite schedules, modify logistical deliveries, revise commissioning plans, and ensure the maximum amount of power is commercially available to meet Idaho Power’s reliability needs in June 2023. Powin has delivered numerous components of the BESS, including inverters and collection segments. However, due to supply chain and logistical challenges, the energy segments were delayed and started arriving on April 17, 2023. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 13 The response to this Request is sponsored by Eric Hackett, Senior Manager Projects and Design, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 14 REQUEST FOR PRODUCTION NO. 11: Please respond to the following regarding other solutions considered to meet the 2024 capacity needs: a. Please explain what other solutions were considered to meet the 2024 capacity needs; b. Please explain when these solutions were considered; c. Please explain the extent to which these solutions were explored; d. Please explain when these solutions were dropped from further consideration; and e. Please explain why they were not considered least-cost, least-risk solutions. RESPONSE TO REQUEST FOR PRODUCTION NO. 11: As explained in Mr. Ellsworth’s direct testimony, the Company has been generally resource-sufficient since the addition of the Langley Gulch natural-gas fired power plant almost a decade ago until recently. The load and resource balance from the Second Amended 2019 IRP did not show a capacity deficiency occurring until the summer of 2028. However, several converging factors, including limited third-party transmission capacity, load growth, and a decline in the peak serving effectiveness of certain supply-side and demand-side resources have caused Idaho Power to rapidly move to a near-term capacity deficiency starting in 2023. These dynamic circumstances led the Company to immediately file a request for a Certificate of Public Convenience and Necessity (“CPCN”) to acquire resources to be online in 2023.2 Prior to filing the request for a CPCN in Case No. IPC-E- 22-13, Idaho Power evaluated alternative solutions for meeting the 2023 capacity deficiency to avoid building a new resource, including modifications to existing demand response programs, expansion of the existing pricing programs, and the potential for 2 Case No. IPC-E-22-13. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 15 other short-term market solutions. Modifications to Existing Demand Response Programs. When analyzing Idaho Power’s system on an hour-by-hour basis, the results indicated that under the then- current program parameters, the Effective Load Carrying Capability (“ELCC”) of the existing 380 MW demand response portfolio was estimated to be approximately 17 percent. That is, of the total 380 MW demand response portfolio capacity, only 65 MW can be relied upon to meet the highest-risk Loss-of-Load Probability (“LOLP”) hours, or the statistical likelihood of the system demand exceeding the available generating capacity during a given time period, typically an hour. The existing demand response programs, as structured, were not effective at meeting system needs over the planning horizon. Therefore, Idaho Power evaluated potential modifications to program parameters in an attempt to better align the resource with system needs. The Company conducted several sensitivity analyses to determine the parameter adjustments needed to more effectively meet the high-risk LOLP hours. The Company identified several program criteria, including events per week, events per season, time available, length of program season, and total hours dispatched per week, and then evaluated the impact to the ELCC of the demand response portfolio. The sensitivity analyses concluded that the dispatch times available and the length of the program season had the highest impact on the ELCC of demand response. As a result, Idaho Power filed a request with the Commission to modify its demand response programs which were approved with Order No. 35336, effective for the 2022 demand response season. Although the demand response program modifications resulted in a higher ELCC than initially planned, it alone did not prove to be IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 16 viable for meeting the 2023 resource deficiency nor have any circumstances changed within the past 12 months that would have provided a solution for meeting the 2024 resource need. Evaluation of Existing and Potential Pricing Programs. Idaho Power evaluated the Company’s current Time-of-Use (“TOU”) offering and the potential for other pricing programs as possible options for meeting the capacity deficiency. The Company had existing TOU offerings in both its Idaho and Oregon jurisdictions, with 1,000 customers enrolled in the Idaho offering and less than five customers enrolled in the Oregon pilot program. With the level of customer participation data, the sample used to develop a comprehensive and reliable assessment of residential peak shifting would be outside an acceptable margin of error tolerance limit at approximately +/- 60 percent. As such, circumstantial behavioral changes could misrepresent peak shifting impacts when expanded to the full residential customer class. Without comprehensive historical data from a larger sample population, Idaho Power believes it is premature to modify existing, or implement new pricing programs as a potential resource solution to the capacity deficiencies but continues to assess the programs and how to encourage customer participation. Short-Term Market Solutions. To test the transmission deliverability and resource market availability of a replacement resource for Valmy Unit 2, the Company issued an RFP on April 26, 2021, for the delivery of firm capacity and energy during the summer months beginning 2023. Idaho Power received no bids, indicative of the evolving market conditions leading to the Company’s reduced transmission import assumption in the load and resource balance. Idaho Power continually monitors the availability of IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 17 energy/capacity deliveries to the Company’s border as well as transmission availability that would allow for the delivery of energy from a market hub to Idaho Power’s system. The response to this Request is sponsored by Jared Ellsworth, Transmission, Distribution and Resource Planning Director, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 18 REQUEST FOR PRODUCTION NO. 12: Please provide the following versions of Load and Resource Balance ("L&R"): a. The first version of L&R that the Company used to select Project No. 7 and the original design of Project No. 8 (100-MW solar and 20-MW storage) in its initial Long-Term Capacity Expansion ("LTCE") analysis. Also, please explain when this version of L&R was created and the amount of the deficit; b. The second version of L&R that the Company used to conduct the second LTCE analysis to select the original design of Project No. 8 (100-MW solar and 20-MW storage). Also, please explain when this version of L&R was created and the amount of the deficit; c. The third version of L&R that the Company used to increase from the 20-MW storage to the 60-MW storage in Project No. 8. Also, please explain when this version of L&R was created and the amount of the deficit; d. The fourth version of L&R that the Company used to add an additional 12-MW storage besides the modified Project No. 8 (100-MW solar and 60-MW storage). Also, please explain when this version of L&R was created and the amount of the deficit; e. Please provide the latest (from the 2023 IRP) L&R the Company has produced and respond to the following regarding the latest L&R: i. Please explain when this version of L&R was created and the amount of the deficit. ii. Please explain whether the L&R includes any Special Customers' resources and loads. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 19 iii. Please explain whether the Company, with the proposed new resources, will be able to meet the capacity needs of both summer and winter in 2024 identified in this latest L&R and support your explanation with evidence; and f. Please explain the main drivers that have caused the evolution of these versions of L&Rs. RESPONSE TO REQUEST FOR PRODUCTION NO. 12: a-d. As described in the Direct Testimony of Jared Ellsworth, Idaho Power currently utilizes the Loss of Load Expectation (“LOLE”) methodology to assess system reliability via the internally developed Reliability & Capacity Assessment Tool (“R- CAT”), which is capable of producing outputs such as the capacity position for a given year. While the Company is able to represent the R-CAT’s input and output data in the form of a Load & Resource (“L&R”) balance, it is the capacity position determined through the LOLE analysis that drives resource selection decisions. Because the L&R balance is a representation of the R-CAT inputs and results, a L&R balance is not created for every step in the project analysis process. Instead, the following table shows the Company’s capacity position for parts (a), (b), (c), and (d) of this request, which were developed sequentially throughout the RFP process once bids were received: Part Scenario Details Position  20 2 4  L& R   (a) Base Case (103) Capacity Shortfall  (b) Add 100 MW PV + 20 MW BESS (37) Capacity Shortfall  (c) Add 100 MW PV + 60 MW BESS (7) Capacity Shortfall  (d) Add 100 MW + 60 MW BESS  Add 12 MW BESS 4 Capacity Length  IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 20 e. Idaho Power is still in the process of developing its 2023 IRP and does not have a finalized LOLE analysis ready for conversion and application to a tabulated L&R balance. The Company currently expects to file this IRP in summer of 2023, which will include an updated LOLE-derived L&R balance with capacity positions for the 20-year planning horizon. f. As described in (a), the Company did not produce L&R balance representations of the LOLE analysis as it moved through the RFP and evaluation process because it is the resulting R-CAT capacity positions that are the decision-driving outputs. The capacity position changes between parts (a), (b), (c), and (d) presented above are due to the amount of assumed energy storage, with a total of 72 MW required to obtain 4 MW of capacity length. Throughout the planning process, the Company has made updates to its load forecast, transmission assumptions, and introduced enhancements to the R-CAT. The information presented for parts (a) through (d) are indicative of the final analysis. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 21 REQUEST FOR PRODUCTION NO. 13: Mr. Hackett's Direct Testimony states "Project Nos. 12, 13, 14, and 15, were not cost-effective options because of the limited capacity benefit of the energy storage or surplus only availability of the energy storage." Please respond to the following: a. Please explain how the Company determined these four projects were not cost effective options; b. What does "surplus only availability of the energy storage" mean; and c. Please explain why these four projects should be removed due to "the limited capacity benefit of the energy storage or surplus only availability of the energy storage." RESPONSE TO REQUEST FOR PRODUCTION NO. 13: Project Nos. 12, 13, 14, and 15 were submitted into the RFP as “Surplus Interconnection Service” projects as defined by FERC Order No. 845. Surplus Interconnection Service is a form of interconnection service that allows a new interconnection customer to use excess or unused interconnection service capacity associated with an existing resource. As these capacity resources were in addition to existing facilities already contemplated as resources available to Idaho Power, the benefit of the capacity resource was limited to the existing interconnection limit. In the case of Project Nos. 13, 14, and 15, which were Surplus Interconnection Service submittals adjacent to existing hydro-electric projects, the benefit offered did not exist in the summer months when the hydro-electric projects typically do not have any latent interconnection capacity available, therefore the reduced surplus availability prevented selection of Project Nos. 13, 14, and 15 through the LTCE modeling process. Project No. 12 was a storage capacity resource intending to connect IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 22 through Surplus Interconnection Service to an existing Solar project, but the reduced surplus availability prevented selection of Project No. 12 through the LTCE modeling process. The response to this Request is sponsored by Eric Hackett, Senior Manager Projects and Design, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 23 REQUEST FOR PRODUCTION NO. 14: Please respond to the following questions regarding the LTCE analyses in this case: a. When the Company performed its initial LTCE analysis in this case, what other potential resources were considered in the AURORA model, besides the 17 submitted projects? Please provide the input assumptions and the sources for these other potential resources. Also, please explain whether the pricing of these other potential resources reflect the impacts of the 2022 Inflation Reduction Act ("2022 IRA"); b. Mr. Hackett's Direct Testimony states AURORA "consistently selected Project Nos. 7 and 8 as the resource additions resulting in a least-cost, least-risk portfolio for meeting the identified 2024 capacity deficiency." Please explain how a least cost, least risk portfolio was determined and provide evidence that shows Project Nos. 7 and 8 were consistently selected; c. Please confirm that, although Project Nos. 2, 9, and 10 were not selected in the least-cost, least risk portfolio from the initial LTCE analysis, these three projects were added into the second LTCE analysis manually; d. When the Company performed its second LTCE analysis in this case, what other potential resources were considered in the AURORA model besides the final shortlisted projects (Project Nos. 2, 8, 9, and 10)? Please provide the input assumptions and the sources for these other potential resources. Please explain whether the pricing of these other potential resources reflected the impacts of the 2022 IRA; e. Mr. Hackett's Direct Testimony states "[s]imilar to the initial LTCE analysis, IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 24 Project No. 8 was consistently selected as the most cost-effective resource for meeting the 2024 capacity deficiency." Please confirm that Project No. 8 was selected in the least-cost, least-risk portfolio. Also, please confirm that the method for determining the least-cost, least-risk portfolio in the second LTCE analysis was the same as in the initial LTCE analysis. If the method was different, please explain the method used in the second LTCE analysis. Please provide evidence that shows Project No. 8 was consistently selected; and f. Please confirm that Project Nos. 2, 9, and 10 were not selected in the least-cost, least-risk portfolio in the second LTCE analysis. Also, please confirm that even though the model did not select Project No. 10, the Company selected it because it was the next most economic resource in the final shortlist. RESPONSE TO REQUEST FOR PRODUCTION NO. 14: a. The 17 project proposals submitted through the 2022 RFP process are the only potential resources included in the initial LTCE analysis, which did not include impacts of the 2022 IRA as it had not yet been signed into law. As explained in the Direct Testimony of Mr. Hackett, the RFP evaluation team provided the developers of the final short list projects, Project Nos. 2, 7, 8, 9 and 10, the opportunity to update or clarify their pricing information for consideration of the 2022 IRA. b. Under the LTCE modeling approach, the levelized cost of capacity of all 17 projects are input into AURORA as potential resource additions, along with their project specific operating characteristics. The LTCE model optimizes these potential resource selections based on the performance of each resource within Idaho Power’s zone, optimizing for the cost function while meeting the Company’s IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 25 identified capacity deficiency. The indicative AURORA modeling scenarios consistently selected Project Nos. 7 and 8 as the resource additions resulting in a least-cost, least-risk portfolio for meeting the 2024 capacity deficiency. The LTCE model’s resource selection optimization validation can be found in Chapters 9 and 10 of the 2021 IRP.3 c. All five final short list projects, Project Nos. 2, 7, 8, 9 and 10, were evaluated as part of the second LTCE analysis. d. Please see (a) and (c). e. Project No. 8 was consistently selected in the least-cost, least-risk portfolio in the second LTCE analysis, which used the same method for determining the least- cost, least-risk portfolio as the initial LTCE analysis. The LTCE model’s resource selection optimization validation can be found in Chapters 9 and 10 of the 2021 IRP. f. Project Nos. 2, 9, and 10 were not selected in second LTCE analysis as part of the least-cost, least-risk portfolio. However, because Project No. 8 alone could not meet the 2024 capacity deficiency, Idaho Power identified the next most cost- effective project to fill the remaining capacity deficit, Project No. 10. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, Idaho Power Company. 3 2021 IRP, Pages 115-150. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 26 REQUEST FOR PRODUCTION NO. 15: Please conduct nine new LTCE model runs using the latest 2023 IRP base input assumption while varying carbon and natural gas price forecasts based on the following table: Zero Carbon Planning Case Carbon High Carbon Low Gas Planning Case Gas High Gas Scenario 1 X X Scenario 2 X X Scenario 3 X X Scenario 4 X X Scenario 5 X X Scenario 6 X X Scenario 7 X X Scenario 8 X X Scenario 9 X X For each model run, please provide the Net Present Value ("NPV") Portfolio Cost Analysis result and identify whether the proposed resources and/or other bidder projects were selected to fill the upcoming deficits for each scenario. Please conduct the analysis using the following assumptions for all model runs: a. The Company's latest L&R provided in Request No. 1(e); b. Project No. 2 included as a resource available for selection by the LTCE model with the updated pricing that reflects the impacts of the 2022 IRA; c. Modified Project No. 8 (100-MW Solar + 60 MW storage) included as a resource available for selection by the LTCE model with the updated pricing that reflects the impacts of the 2022 IRA; IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 27 d. Project No. 9 included as a resource available for selection by the LTCE model with the updated pricing that reflects the impacts of the 2022 IRA; e. Modified Project No. 10 (12-MW storage) included as a resource available for selection by the LTCE model with the updated pricing that reflects the impacts of the 2022 IRA; and f. Updated resource pricing for all other resources available for selection by the LTCE model with updated pricing that reflects the impact of the 2022 IRA, as well as all bidder projects that were not selected as a result of the initial LTCE analysis but satisfy all other hard constraints (e.g. transmission availability). RESPONSE TO REQUEST FOR PRODUCTION NO. 15: After a clarification discussion with Idaho Public Utilities Commission Staff, Idaho Power is still in the process of preparing the requested information and will provide a response as soon as the modeling runs are complete and the information is available. The response to this Request is sponsored by Matt Larkin, Revenue Requirement Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 28 REQUEST FOR PRODUCTION NO. 16: Please explain why the Company does not seek cost recovery associated with the 72 MW of energy storage projects but seek cost recovery associated with the 100-MW solar project in this case. RESPONSE TO REQUEST FOR PRODUCTION NO. 16: The Company’s request in this case is that the Commission find Idaho Power has met the requirements of Idaho Code § 61-526 and issue an order granting a CPCN to acquire the 72 MW of energy storage necessary to meet the identified capacity deficiency in 2024 as Idaho Power- owned and operated resources. The Company will make a future filing to address the cost recovery associated with these projects when they are placed into service and considered “used and useful.” With regard to the power purchase agreement for the 100 MW of solar, the Company is seeking a determination that the cost associated with the project’s output is recoverable through rates consistent with the regulatory treatment for all other Commission-approved long-term power purchase agreements. The response to this Request is sponsored by Matt Larkin, Revenue Requirement Senior Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 29 REQUEST FOR PRODUCTION NO. 17: Please provide the following information regarding the Company's request for an exemption to the Oregon Public Utilities Commission ("OPUC") Resource Procurement Rules for this project: a. Please provide a copy of the exemption request filed with the OPUC; b. Please provide status of the exemption request and approval by the OPUC; c. Please provide confirmation that the Company is in compliance with the OPUC resource acquisition process; d. If not confirmed, please describe the specific exceptions to the OPUC rules that apply in this case; and e. Please provide actions the Company is taking to comply with the OPUC rules to mitigate the need for exemptions in future proceedings. RESPONSE TO REQUEST FOR PRODUCTION NO. 17: On February 17, 2023, Idaho Power filed a Notice of Exception of the Competitive Bidding Rules (“Exception Report”) with the Public Utility Commission of Oregon (“Oregon Commission”), detailing the circumstances related to a time-limited opportunity to acquire the resources necessary for meeting the Company’s 2024 capacity deficiency. When this exception to the Competitive Bidding Rules applies, pursuant to Oregon Administrative Rules 860- 089-100(4), the Company files a report with the Oregon Commission explaining the relevant circumstances of the acquisition. The Oregon Commission will not issue a ruling in response to the report. a. Please see Confidential Attachment 1 for a copy of the Exception Report. b. As noted earlier, the Oregon Commission will not issue a ruling in response to the Exception Report. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 30 c. See above. Idaho Power has provided a Notice of Exception to the Oregon Commission regarding the Competitive Bidding Rules with the filing of the Exception Report. d. The Exception Report was submitted pursuant to Oregon Administrative Rules 860-089-100(4). e. The Company has initiated the Competitive Bidding Rule process with the Oregon Commission for its 2026 resource needs, the soonest a resource could come online following the completion of the RFP under the Competitive Bidding Rules and construction of that new resource. On September 15, 2022, Idaho Power filed with the Oregon Commission in Docket UM 2255 an Application to Open an Independent Evaluator (“IE”) Selection Docket in accordance with the Competitive Bidding Rules, requesting an order: (1) opening a docket for approval of Idaho Power’s 2026 All-Source RFP soliciting the acquisition of a combination of energy and capacity resources with as much as 1,100 megawatts (“MW”) of variable energy resources and a minimum of roughly 800 MW of peak capacity; (2) appointing an independent evaluator to oversee the RFP process; and (3) approving the proposed RFP scoring and modeling. The size of the resource procurement for the RFP triggers the Commission’s competitive bidding rules (OAR 860-089-0100 et seq.) and necessitates engagement of an IE. A case schedule in Docket UM 2255 has been set and the Company is currently working to comply with all relevant rules. The response to this Request is sponsored by Matt Larkin, Revenue Requirement Senior Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 31 REQUEST FOR PRODUCTION NO. 18: Do the Proposal Prices and the Levelized Cost of Capacity in Table No. 1, No. 2, and No. 3 in Exhibit 4 include transmission interconnection costs? RESPONSE TO REQUEST FOR PRODUCTION NO. 18: Yes. The response to this Request is sponsored by John Wonderlich, Finance Team Leader, Idaho Power Company. DATED at Boise, Idaho this 25th day of April 2023. DONOVAN E. WALKER Attorney for Idaho Power Company IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 32 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 25th day of April 2023, I served a true and correct copy of Idaho Power Company’s Response to the 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 Michael Duval Chris Burdin 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 Michael.Duval@puc.idaho.gov Chris.Burdin@puc.idaho.gov City of Boise Darrell Early Deputy City Attorney Boise City Attorney’s Office 150 N. Capitol Blvd. PO Box 500 Boise, ID 83701 Hand Delivered U.S. Mail Overnight Mail FAX FTP Site X Email dearly@cityofboise.org boisecityattorney@cityofboise.org Wil Gehl Energy Program Manager Boise City Dept. of Public Works 150 N. Capitol Blvd. P.O. Box 500 Boise, Idaho 83701-0500 Hand Delivered U.S. Mail Overnight Mail FAX FTP Site X Email wgehl@cityofboise.org Stacy Gust, Regulatory Administrative Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-05 IDAHO POWER COMPANY REQUEST NO. 3 ATTACHMENT NO. 1 ECP 031 (2/21) Request for Proposal PowerAdvocate Event #114120 2021 Owner’s Engineering Services Idaho Power Company P.O. Box 70 Boise, ID 83707 Idaho Power Company Request for Proposal ECP 031 (2/21) TABLE OF CONTENTS I. INTRODUCTION 1 A. Purpose ........................................................................................................................................................................................ 1 B. Company Background ........................................................................................................................................................... 1 II. REQUEST FOR PROPOSAL 1 A. Scope of Services/Specifications and Requirements .............................................................................................. 1 B. Respondent Conference ....................................................................................................................................................... 1 C. Key Events and Dates ............................................................................................................................................................ 1 RFP Schedule 1 Questions 2 Proposal 2 D. Contact Information ............................................................................................................................................................... 2 RFP Coordinator 2 III. REQUIREMENTS & CLARIFICATIONS 3 A. Form of Contract ..................................................................................................................................................................... 3 IV. CONTENT OF PROPOSAL 3 A. Proposal Instructions ............................................................................................................................................................ 3 Acceptance of Contract Documents 3 V. RFP EVALUATION PROCESS 4 A. RFP Evaluation ......................................................................................................................................................................... 4 B. RFP Evaluation Criteria ........................................................................................................................................................ 5 VI. GENERAL INFORMATION FOR RESPONDENTS 5 A. Failure to Comply .................................................................................................................................................................... 5 B. Contractual Status of Proposals ........................................................................................................................................ 5 C. In Whole or In Part ................................................................................................................................................................. 5 D. Revisions to the RFP .............................................................................................................................................................. 5 E. Cost to Propose ........................................................................................................................................................................ 6 F. Respondent to Conform with Law ................................................................................................................................... 6 G. Business Conduct Policy ...................................................................................................................................................... 6 H. Proprietary Information—Confidentiality .................................................................................................................. 6 I. Accountability ........................................................................................................................................................................... 6 J. Small Business and Small Disadvantaged Business Program ............................................................................. 6 K. Physical and Electronic Protection ................................................................................................................................. 7 L. Purchasing Restrictions/Prohibited Technology ..................................................................................................... 7 M. Entire RFP................................................................................................................................................................................... 7 N. Attachments .............................................................................................................................................................................. 7 Idaho Power Company Request for Bid C O N F I D E N T I A L ECP 031 (2/21) Page 1 I.INTRODUCTION A.Purpose Idaho Power Company (“IPC”) is currently seeking proposals in response to this Request for Proposal (“RFP”) to provide full-service owner’s engineering support including consulting, engineering, and resource specification development for all-resource energy project development and procurement. B.Company Background IDACORP, Inc. is a holding company formed in 1998. Comprised of regulated and non-regulated businesses, its origins lie with Idaho Power, a regulated electric utility that began operations in 1916. Today, IPC is the largest regulated electric utility in the state of Idaho and IDACORP’s chief subsidiary. IPC serves over 580,000 residential, business, agricultural, and industrial customers. The company’s service area covers approximately 24,000 square-miles, including portions of eastern Oregon. Learn more about Idaho Power at www.idahopower.com. II.REQUEST FOR PROPOSAL A.Scope of Services/Specifications and Requirements The scope of services is further described in Attachment B – Statement of Work Draft and other attachments to this RFP, and can be found in the PowerAdvocate bid event. B.Respondent Conference IPC will be hosting a conference at which attendance is required by all Respondents as part of the information gathering process. Failure to attend the conference by any Respondent may result in rejection of Respondent’s proposal. Contact the RFP Coordinator to determine if intended subcontractors may attend the conference. When: Thursday April 8, 2021 Virtual Meeting: To receive a meeting invite to the virtual platform, please message through PowerAdvocate your invitation request no later than Include the name and email address of each person desiring to attend the virtual meeting. C.Key Events and Dates IPC may, at its sole discretion, alter the dates listed below and/or add/remove scheduled activities. RFP SCHEDULE EVENT DATE TIME Respondent Conference Last day for Respondent to submit questions to IPC Request for Bid Idaho Power Company Page 2 ECP 020 (2/21) C O N F I D E N T I A L Proposal Due April 19, 2021 05:00 PM MDT Review and Evaluation of Proposals – Down Select April 20, 2021 – April 21, 2021 Supplier Presentations April 23, 2021 Review and Evaluations of Presentations Approximately one week RFP award Upon signature of contract QUESTIONS Respondents should carefully review this RFP for questions, clarifications, defects, and questionable or objectionable material. Comments and questions concerning clarifications, defects and questionable or objectionable material must be submitted through the PowerAdvocate tool to the RFP Coordinator and must be submitted on or before the date and time specified on the RFP Schedule. No questions will be accepted after this date. All questions and responses will be provided to all Respondents via PowerAdvocate. Comments and questions must be received by the RFP Coordinator in the timeframe outlined herein; Idaho Power will not consider inquiries received outside such timeframe. PROPOSAL All proposals must be received through PowerAdvocate on or before the date and time specified on the PowerAdvocate event. All documents and information submitted by Respondent as part of Respondent’s proposal become the property of IPC and will not be returned. Proposals shall be valid for sixty (60) calendar days from the due date. D. Contact Information RFP COORDINATOR Throughout the duration of the information gathering process, all questions, submission of references, responses and other communications concerning this RFP are to be directed through PowerAdvocate to the RFP Coordinator. Respondent agrees that, during the RFP process and prior to the response deadline, Respondent shall not discuss this RFP or the associated project or services with any IPC employee other than the designated RFP Coordinator as identified below. Failure to comply with these requirements may result in such Respondent’s disqualification and elimination from the RFP process. Name: Kim Abbott 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-2652 Cell: 208-410-2314 Email: kabbott@idahopower.com Idaho Power Company Request for Bid C O N F I D E N T I A L ECP 031 (2/21) Page 3 III. REQUIREMENTS & CLARIFICATIONS A. Form of Contract IPC directs Respondents to the Professional Services Agreement within the PowerAdvocate event. In the event IPC decides to move forward with Respondent, Respondent will be required to enter into a legally binding, substantially similar agreement. As part of this RFP, Respondents must indicate acceptance of IPC’s Professional Services Agreement or submit redlines of the agreement identifying any proposed changes requested by Respondent. The agreement provided by Respondent in its response should be Respondent’s best and final offer as to the legal terms and conditions Respondent is willing to accept. If Respondent has a current Professional Services Agreement in place with IPC, a SOW may be issued against that Agreement in lieu of executing a new agreement. IV. CONTENT OF PROPOSAL A. Proposal Instructions A complete and thorough proposal will contain responses to each of the following items, in the manner stated. Missing or partial responses to any of the following may result in Respondent’s proposal being deemed non- responsive, at IPC’s discretion. ACCEPTANCE OF CONTRACT DOCUMENTS Respondents must indicate acceptance of IPC’s Professional Services Agreement or submit redlines of the agreement identifying Respondent’s requested changes. Please be advised that IPC will consider Respondent’s requested revisions to the agreement as part of its evaluation of Respondent’s proposal. ➢ Complete the “Form of Contract” datasheet found on the “3. Commercial” tab within PowerAdvocate. Respondents submitting a proposal shall use the following outline and criteria: 1. Cover Letter – (2 pages maximum). 2. Introduction – Provide general introduction and information about your company (3 pages maximum). 3. Project Team – Provide information describing how your project team is organized along with a description of the key personnel and how they will contribute to the project or work. Identify any subcontractor(s) that may be part of the team and the type of work that will be performed by the subcontractor(s). In addition, specify if any of the subcontractor(s) are certified Women-Owned Businesses and/or Minority-Owned Businesses (5 pages maximum – full resumes may be provided in the Supplemental Information section and will not count against the 5 pages). 4. Client References – Provide at least three references from clients for which Respondent’s company has performed similar work described in this RFP in the past five years (2 pages maximum for each reference). 5. Project Qualifications – Provide a description of your firm’s qualifications to perform this work including relevant projects completed in the last 5 years. Please include, at minimum the following: ➢ All-resource energy request for proposal (“All-Resource RFP”) development, evaluation, and utility consultation experience including but not limited to: • Request for Proposal documentation and process development • Contractor or developer evaluation and selection • Construction oversite Request for Bid Idaho Power Company Page 4 ECP 020 (2/21) C O N F I D E N T I A L • Independent Evaluation selection and coordination ➢ Regulatory and legislature approval processes including applicable experience with the State of Oregon and State of Idaho ➢ Build-Transfer Agreements; Battery Storage Agreements, Engineering, Procurement and Construction Agreements; and Power Purchase Agreements ➢ Energy project design and preparation of specifications for power generation, natural gas resource retrofits and upgrades, energy storage (please include any relevant battery storage or pumped-hydro storage), renewable energy construction projects, and resource siting experience ➢ Demand Side Management programs ➢ Federal Energy Regulatory Commission (“FERC”) Open Access Transmission Tariff (“OATT”) processes and rules related to Generation Interconnection, Transmission Service, and related resource delivery rules. ➢ Integrated Resource Plan forecasting and modeling, electric power market forecasting, and electric power generation resource optimization 6. Project Approach – Describe how you would perform the work required for this project, and your approach for completing the work. 7. Fees, Costs, Rate Schedule – Please provide all hourly labor and equipment rates, fees and cost data. This data should itemize all costs, including taxes, indirect costs, and markup. ➢ Supplemental Information – Include and clearly label as “Supporting Material” any additional information relevant to Respondent’s ability/qualifications to perform this project. This may include resumes, client reference information, or other supporting materials (although there is no page limit, please include only concise and directly relevant information). Upload any Proposal Information to the “2. Upload Documents” tab, as the document type “Technical Information” within PowerAdvocate labeled as “Proposal Information.” V. RFP EVALUATION PROCESS A. RFP Evaluation Proposal Responses will not be publicly opened. The proposal opening will be in private by the IPC evaluation team. An IPC evaluation team will determine the proposal that best meets the requirements of this RFP and provides the best overall value for IPC. Proposals will be evaluated in accordance with the requirements set forth in this RFP, any addenda that are issued, and any other factor IPC deems appropriate. Based upon RFP response evaluation and scoring, references, and any subsequent activities identified during the evaluation process (financial review, etc. that may be required), IPC may identify the top candidate(s) for further clarifications and/or a Respondent presentation. IPC may choose to enter into an agreement with a single Respondent or multiple agreements with various Respondents. Selection shall be at the sole and complete discretion of IPC, and no Respondent shall have any right to challenge or protest the selection of any other Respondent, on any grounds whatsoever. If IPC is unable to reach agreement on all contract terms and conditions with the designated Respondent(s), IPC at its sole discretion reserves the right to extend or terminate negotiations and begin negotiations with another Respondent(s). Idaho Power Company Request for Bid C O N F I D E N T I A L ECP 031 (2/21) Page 5 Those Respondents whose proposals have not been selected will be notified via notification in PowerAdvocate, an email, or a written letter at the number and address provided in their proposal. B. RFP Evaluation Criteria At a minimum, proposals will be evaluated based on the response to this RFP, which may include, but not be limited to the following criteria: • Ability to meet requirements • Project experience and qualifications • Reputation for thoroughness, credibility, and client responsiveness as demonstrated through submitted references • Financial stability of company • Total Cost • Acceptance IPC’s Contract Documents • Any other factors deemed appropriate by IPC VI. GENERAL INFORMATION FOR RESPONDENTS A. Failure to Comply Respondent is specifically notified that failure to comply with any part of the RFP may result in disqualification of the proposal, at IPC’s sole discretion. B. Contractual Status of Proposals This RFP has been prepared solely to solicit proposals and is not a contract offer. This RFP is not binding on IPC. The only document that will be binding on IPC is a contract duly executed by IPC and the successful Respondent (if any) after the completion of the selection process and the award and negotiation of a contract. IPC reserves the right to reject any and all proposals submitted by Respondents. The issuance of this RFP does not obligate IPC to purchase any product or services offered by Respondent or any other entity. Furthermore, IPC may choose, at its sole discretion, to abandon the RFP process in its entirety. Respondents agree that they submit offers without recourse against IPC, IDACORP Inc., any of IDACORP Inc.’s affiliates, or any of their respective employees, agents, officers, or directors for failure to accept an offer for any reason. C. In Whole or In Part IPC reserves the right to accept the proposal in whole or in part, and to award to more than one Respondent. Furthermore, Respondent understands that any “award” by IPC does not obligate IPC in any way. IPC will not be obligated to any part unless and until IPC executes a definitive agreement between the parties. D. Revisions to the RFP The requirements specified in this RFP reflect those presently known. IPC reserves the right to vary, in detail, the requirements and/or to issue addenda to the RFP. IPC also reserves the right to cancel or to reissue the RFP in whole or in part, prior to the execution of a contract, if any. In the event it becomes necessary to revise any part of the RFP, addenda will be provided to Respondents included in the current and applicable stage of the RFP. Request for Bid Idaho Power Company Page 6 ECP 020 (2/21) C O N F I D E N T I A L E. Cost to Propose Respondent will absorb all costs incurred in responding to this RFP, including without limitation, costs related to the preparation and presentation of its response. All materials submitted by the Respondent immediately become the property of IPC. Any exception will require written agreement by both parties prior to the time of submission. F. Respondent to Conform with Law Respondent shall conform in all material respects to all applicable laws, ordinances, rules, and regulations and nothing in this RFP shall be construed to require IPC or Respondent to act in a manner contrary to law. G. Business Conduct Policy In responding to this RFP, Respondent shall adhere to best business and ethical practices. Respondent shall adhere to IPC’s Supplier Code of Conduct, available at www.idahopower.com. H. Proprietary Information—Confidentiality Respondent acknowledges and agrees that all information obtained or produced in relation to this RFP is the sole property of IPC and shall not be released or disclosed to any person or entity for any purpose nor used for any purpose other than providing a proposal to IPC, without the express written consent of IPC. Respondent agrees not to make any public comments or disclosures, including statements made for advertising purposes, regarding the RFP to the media or any other party without the prior written consent of IPC. In the event Respondent receives any inquiries regarding the RFP from the media or any other Party, said inquiries shall be forwarded to IPC. Respondent shall specifically designate and clearly label as “CONFIDENTIAL” any and all material(s) or portions thereof that they deem to contain proprietary information. I. Accountability Respondent whose proposal may be selected in response to this RFP acknowledges that it assumes full legal responsibility for the accuracy, validity, and legality of the work provided in conformance with this RFP. Respondent agrees to maintain sufficient resources to perform its obligations. J. Small Business and Small Disadvantaged Business Program IPC is committed to the implementation of a Small and Disadvantaged Business Program. It is the intent of IPC that small business concerns and small businesses owned and controlled by socially and economically disadvantaged individuals have the opportunity to participate in the performance of contracts awarded by IPC. Consequently, we request that you indicate your eligibility as a small business based upon the regulations in Title 13, Code of Federal Regulations, Part 121. (If in doubt, consult the Small Business Administration Office in your area). Eligibility as a small disadvantaged business is first based on eligibility as a small business, as noted above. Second, the business must be majority owned (51 percent or more) and controlled/managed by socially and economically disadvantaged person(s). The Small Business Administration designated the following groups as “presumed socially disadvantaged”: Black Americans, Hispanic Americans, Native Americans, and Asian-Pacific Americans. Other individuals may be found socially disadvantaged and eligible for the program on a case-by- case basis. If you have any questions, please see 13 CFR 124.1-124.1016 or contact your local Small Business Administration office. Idaho Power Company Request for Bid C O N F I D E N T I A L ECP 031 (2/21) Page 7 K. Physical and Electronic Protection IPC is required by federal law and regulations to protect access to its critical assets, both physical and electronic. Certain portions of IPC’s premises may have restricted access and may require prior authorization or an IPC designated escort to all access by IPC contractors. In the event IPC moves forward with Respondent, IPC will require Respondent to comply with federal, state, or local laws or regulations, and any applicable IPC policies, standards, and procedures related to physical security of IPC’s premises prior to performing any work for IPC. These include, but are not limited to, any policies, standards and procedures requiring drug screening, background checks, and social security verifications. Should Respondent require access to IPC’s network, or unescorted access to IPC’s or its customer’s premises as part of the work under a definitive contract, Respondent will not be able to perform any work for IPC until these criteria have been satisfied. Respondent will also be required to sign and comply with all IPC forms related to the same. L. Purchasing Restrictions/Prohibited Technology Pursuant to Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, [Supplier/Contractor] must be able to represent in its agreement with Idaho Power that [Supplier/Contractor] does not use or have installed any telecommunications equipment, system, or service (or as a substantial or essential component of any system or as or critical technology of any system) made by any of the following companies, or any subsidiary or affiliate thereof (including companies with the same principal word in the name, e.g., “Huawei” or “Hytera”): Huawei Technologies Company; ZTE Corporation; Hytera Communications Corporation; Hangzhou Hikvision Digital Technology Company; or, Dahua Technology Company (collectively, “Prohibited Technology”). Prohibited Technology may include, but is not limited to, video/monitoring surveillance equipment/services, public switching and transmission equipment, private switches, cables, local area networks, modems, mobile phones, wireless devices, landline telephones, laptops, desktop computers, answering machines, teleprinters, fax machines, and routers. Prohibited Technology does not include telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or packets that the equipment transmits or handles. M. Entire RFP This RFP and all Exhibits, Attachments, Datasheets, and Addendum within the PowerAdvocate event are incorporated herein by this reference and represent the final expression of this RFP. Only information supplied by IPC in writing through the parties listed herein or by this reference made in the submittal of this RFP shall be used as the basis for the preparation of Respondent’s proposals. N. Attachments Attachment A – Professional Services Agreement Attachment B – Statement of Work Draft Attachment C – Respondent Questionnaire IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-05 IDAHO POWER COMPANY CONFIDENTIAL REQUEST NO. 3 ATTACHMENT NO. 2 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-05 IDAHO POWER COMPANY CONFIDENTIAL REQUEST NO. 5 ATTACHMENT NO. 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-05 IDAHO POWER COMPANY CONFIDENTIAL REQUEST NO. 7 ATTACHMENT NO. 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-05 IDAHO POWER COMPANY CONFIDENTIAL REQUEST NO. 17 ATTACHMENT NO. 1