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HomeMy WebLinkAbout20230629IPC to Staff 19-43.pdf DONOVAN WALKER Lead Counsel dwalker@idahopower.com June 29, 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 Redacted Response to Staff’s Confidential Second Production Request to Idaho Power Company in the above matter. The confidential version and attachments will be provided to the parties who have executed 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 2023 JUNE 29, 2023 4:42PM IDAHO PUBLIC UTILITIES COMMISSION IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY COMES NOW, Idaho Power Company (“Idaho Power” or “Company”), and in response to the Confidential Second Production Request of the Commission Staff (“Commission” or “Staff”) dated June 15, 2023, herewith submits the following information: IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2 REQUEST FOR PRODUCTION NO. 19: Table 3 of the 2022 All Source Request for Proposals ("RFP") shows that power purchase agreements ("PPAs") were not allowed for the storage components of the products "Battery Energy Storage (BESS)", "Solar + BESS", and "Wind +BESS"; only asset purchases are allowed for the storage components. Please respond to the following: a. Please explain why PPAs are not allowed for the storage components and provide evidence to support your answer. b. Please reconcile the statement made in Hackett, DI, page 34 that "[t]he RFP did not restrict ownership structure or resources," with the fact that PPA-based storage projects were not allowed for submission in the RFP. RESPONSE TO REQUEST FOR PRODUCTION NO. 19: As described in the Direct Testimony of Mr. Hackett, respondent ownership of a standalone BESS was allowed. Specifically, on April 13, 2022, with Addendum No. 7, the Company notified all prospective respondents of an addendum to the product table which was revised to clarify that respondents had the opportunity to submit proposals for a respondent owned battery energy storage resource type with a subsequent Battery Storage Agreement product type. This was in addition to the battery energy storage resource type with a subsequent Build Transfer Agreement product type with Idaho Power ownership as initially identified in the product table. Column 10.a of Table 3 – Storage Products in the Key Product Specification Tables included as Exhibit No. 3 reflects the clarification. While this did not directly address the PPA-based storage component of the Solar + BESS and Wind + BESS resource types presented in Table 3 of Exhibit No. 3, it did allow for a BESS structure. Further, although not explicitly identified, some respondents provided proposals IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3 for PPA-based storage as a component of the Solar + BESS resource options. These projects, identified in Confidential Exhibit No. 4 as those proposals that included a Battery Storage Agreement option, were evaluated accordingly. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4 REQUEST FOR PRODUCTION NO. 20: Page 21 of Mr. Hackett's Testimony states that the Inflation Reduction Act of 2022 ("2022 IRA") provides for extension of the current investment tax credits ("ITC") and production tax credits ("PTC") and a new ITC for standalone energy storage. Please respond to the following: a. Please confirm that the 100 MW solar project paired with the 60 MW BESS is eligible for the current, extended ITC, while the 12 MW standalone BESS is eligible for the new ITC provided in the 2022 IRA. RESPONSE TO REQUEST FOR PRODUCTION NO. 20: Idaho Power’s assumption is that Duke Energy Renewables Solar, LLC (“Duke”) has included the benefits associated with a PTC or ITC for the solar project and that has been reflected in their PPA pricing. The PPA between Duke and the Company, however, is not contingent upon Duke’s eligibility for the PTC or ITC. Pursuant to Section 4.8 of the PPA, included as Confidential Exhibit No. 5, Duke will notify Idaho Power whether PTCs or ITCs were claimed on or before the commercial operation date. Regarding the Company-owned 12 MW and 60 MW BESS projects, Idaho Power anticipates that the projects will qualify for ITCs under the 2022 IRA. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5 REQUEST FOR PRODUCTION NO. 21: Please confirm that for "gas-fired convertible to hydrogen" products, the gas-fired plant component can be a reciprocating gas engine, a combined cycle combustion turbine, a simple cycle combustion turbine, or an aeroderivative listed on Exhibit N of the 2022 RFP. Also, please explain why gas-fired plants not convertible to hydrogen are not considered in the 2022 RFP. RESPONSE TO REQUEST FOR PRODUCTION NO. 21: The 2022 RFP was not intended to be exclusionary or specific and relied on respondents to propose an appropriate “gas-fired convertible to hydrogen” product. Consistent with the resource assumptions used in the 2021 Integrated Resource Plan, Idaho Power believed it was important to ensure gas-fired products could convert to clean hydrogen to provide greater long-term operational viability of the resources considering the uncertainty of future clean energy policies and/or requirements. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6 REQUEST FOR PRODUCTION NO. 22: Please explain why liquidated damages due to Output Shortfall (Section 7.12.2.3 of PPA) does not consider transmission costs (see detailed discussions in Staff's comments and Idaho Power's reply comments in Case No. IPC-E-22-29). RESPONSE TO REQUEST FOR PRODUCTION NO. 22: Transmission costs have not traditionally or historically been called out separately in the liquidated damages calculation for the monthly output guarantee shortfall. The Output Shortfall is the incremental difference, or “shortfall”, of not delivering at least 90 percent of the Estimated Monthly Output for the month. As explained in the referenced Pleasant Valley solar case, it may or may not be the case, as the question presumes, that there would be transmission costs. In many instances, a true “cover” or replacement power would be unlikely to be delivered to the Project’s Point of Delivery. Liquidated damages are applied in situations where actual damages are difficult or impossible to predict with certainty, and the parties agree to an approximation as being reasonable in the circumstances. The difficulties in predicting if, when, how, and to what extent there may be an Output Shortfall below the Output Guarantee, and if so, if, when, how, and to what extent Idaho Power may be covering the lost generation or applying replacement power, make liquidated damages appropriate, and the estimation based upon the difference between market and contract price, including Green Tags, is a typical, industry standard kind of liquidated damage calculation for this circumstance. The liquidated damages are based on Idaho Power’s cost to cover, which itself is based on the difference between market price and contract price, plus the cost of Green Tags, not received with the generation. It is an amount that is applied as liquidated damages without regard to what actual damages may or may not IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7 be. The response to this Request is sponsored by Donovan Walker, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8 REQUEST FOR PRODUCTION NO. 23: Please respond to the following regarding Seller's Cost to Cover (Section 1.147 of PPA): a. Please confirm that Seller's Cost to Cover is intended to compensate the Seller in case Idaho Power does not accept the Seller's energy and the Seller has to sell the energy somewhere else at a lower price. b. If confirmed, please explain whether the Seller can sell both energy and Green Tags. c. If the Seller can sell both energy and Green Tags, please explain why Seller's Cost to Cover does not consider the values of Green Tags. RESPONSE TO REQUEST FOR PRODUCTION NO. 23: a. Yes, please see (c) below. b. Yes, please see (c). below. c. The amount Idaho Power would pay, if the Company wrongfully failed to purchase under the PPA is set out in Section 12.2.2, included as Confidential Exhibit No. 5. The Seller’s Cost to Cover is multiplied by the Net Output so not purchased, less any amounts received by Seller in sales to someone else under its duty to mitigate. There is no value specified for Green Tags in Idaho Power’s purchase price in the PPA. If Seller were to sell Green Tags, then those amounts would be deducted along with energy sales. The response to this Request is sponsored by Donovan Walker, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 9 REQUEST FOR PRODUCTION NO. 24: Section 4.1 of PPA states the contract term is years. Please provide the life expectancy of the 100 MW solar panels. Also, please explain whether the Company or the Seller plans to maintain performance and capacity over the contract term and/or extend the life expectancy of the solar panels, if the life expectancy is shorter than the contract term? RESPONSE TO REQUEST FOR PRODUCTION NO. 24: Idaho Power has not evaluated the expected life of the solar panels as the Seller has full responsibility to maintain the solar panels and the entire system for the term of the PPA. In particular, Exhibit 4 of the PPA identifies the expected energy output anticipated over the term of the PPA. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 10 REQUEST FOR PRODUCTION NO. 25: Please answer the following regarding the 60 MW BESS and the12 MW BESS: a. Please provide the life expectancy of the two BESS systems. b. Please explain whether the Company plans to maintain performance and capacity of the BESS projects over the expected life of the battery and/or contract term of the solar PPA. RESPONSE TO REQUEST FOR PRODUCTION NO. 25: a. The design life expectancy as evaluated for each of the two BESS systems is twenty years. b. Idaho Power will maintain the performance and capacity of each BESS system over the design life, and potentially longer through ongoing and routine maintenance and capacity augmentation. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 11 REQUEST FOR PRODUCTION NO. 26: Page 30 of Mr. Hackett's Testimony states that besides the Build Transfer Agreement, Idaho Power will enter into a Shared Facilities Agreement and a Long-Term Services Agreement for O&M Services performed by the energy storage project following commercial operation of the project. Please respond to the following: a. Please explain the purpose of the Shared Facilities Agreement and list all the parties committing to the agreement. b. Please explain the purpose of the Long-Term Services Agreement for O&M Services and list all the parties committed to the agreement. c. Will the Long-Term Services Agreement for O&M Services ensure that the performance capabilities and capacities of the project will be maintained over their useful life? d. Will there be a separate Long-Term Services Agreement for O&M Services for the 12 MW BESS? Please explain. e. Does the Company plan to seek Commission approvals of the Shared Facilities Agreement and the Long-Term Services Agreement for O&M Services after they are signed? f. Does the Shared Facilities Agreement involve any extra costs? If so, please provide the workpaper that lists each cost and explain whether each cost is included in the bidding price. g. Does the Long-Term Services Agreement for O&M Services involve any extra costs? If so, please provide the workpaper that lists each cost and explain whether each cost is included in the bidding price. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 12 RESPONSE TO REQUEST FOR PRODUCTION NO. 26: a. The Shared Facilities Agreement is a co-tenancy agreement between the Project Company (which will eventually be owned by Idaho Power), Franklin Solar, and Duke Energy Renewable Services as defined in the Build Transfer Agreement, included as Confidential Exhibit No. 6. The intent is to generally define the infrastructure, ownership, and use rights of the step-up substation that will be utilized by the 100 MW solar photovoltaic (“PV”) facility and the 60 MW Battery Energy Storage System (“BESS”) to interconnect to the Idaho Power grid. b. Idaho Power will negotiate a Long-Term Services Agreement (“LTSA”) in which quarterly and annual preventative maintenance, warranty work, corrective maintenance, performance monitoring, and other services will be performed to ensure ongoing reliable performance. Idaho Power will enter into the LTSA likely with the battery supplier or an authorized service provider prior to commercial operation. c. Yes. d. Yes. An LTSA as described in part (b) above will be executed for both the 12 MW Hemingway BESS and the 60 MW BESS (Franklin BESS). Generally, each project site requires a unique LTSA that conforms to the specific performance and capacity requirements and will likely be with different service providers. e. No. The Company plans on including its request for recovery of the expenses associated with any Shared Facility Agreements or LTSA’s as part of a future rate proceeding. f. The Shared Facilities Agreement has not yet been executed; however, Idaho IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 13 Power does not anticipate any additional costs. Historically, Shared Facilities Agreements executed by the Company have had very small annual payments to share in maintenance activities. g. The LTSA has not been executed and thus, the costs are unknown. However, an LTSA cost was included in the evaluation on all BESS projects for equal comparison based on historical knowledge and industry estimates. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 14 REQUEST FOR PRODUCTION NO. 27: Page 33 of Mr. Hackett's Testimony states that the Company estimates the 12 MW storage project is and the 72 MW storage is . Please respond to the following: a. Are the two costs all-in costs? What services and products do these costs include? b. How are the amounts determined? Please provide a cost breakdown. c. In the second LTCE analysis, the 60 MW BESS was originally 20 MW with a cost of (equal to ). However, in the Build Transfer Agreement, the 60 MW BESS costs (equal to ). Please explain the factors contributing to the price reduction. d. In the second LTCE analysis, the 12 MW BESS was originally 46 MW with a cost of (equal to ). However, the Company estimates the cost associated with the 12 MW BESS is (equal to ). Please explain the factors contributing to the price increase. RESPONSE TO REQUEST FOR PRODUCTION NO. 27: a. These costs represent total all-in costs to bring 12 MW and 72 MW to commercial operation by June 1, 2024, including purchase and installation of the batteries and ancillary equipment such as transformers, inverters, cables, networking equipment, foundations, structures, etc. These costs include full turn-key implementation from design and engineering to procurement and construction. b. The contract associated with the 60 MW of battery storage provides for full turn- key installation, therefore a lump sum payment for the base purchase price, as outlined in Section 2.5 of the Build Transfer Agreement provided as Confidential IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 15 Exhibit No. 6, will be made by Idaho Power. At the time the Company’s request in this case was prepared, the cost estimate provided for the 12 MW of battery storage was performed at a high level using the 80 MW Hemingway BESS costs as a basis. Please see the Company’s Response to Production Request No. 43 for a detailed breakdown of the most recent estimate of costs associated with the 12 MW of battery storage. c. Idaho Power does not have insight into the $/MW cost conclusions and the attributable factors that influence those costs as lump sum values provided by the respondents were converted to a levelized cost and utilized in the LTCE modeling in AURORA. The assumption is that both economies of scale and impacts of the Inflation Reduction Act of 2022 likely changed the $/MW proposals offered by the respondents. d. See part (c) above. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 16 REQUEST FOR PRODUCTION NO. 28: Section 9.2.2. of PPA states the Default Security is per kW of Nameplate Capacity Rating for the first ten years and per kW of Nameplate Capacity Rating for the remainder term. Please explain why the per kW used in the Pleasant Valley Solar contract in Case No. IPC-E-22-29 is not used. RESPONSE TO REQUEST FOR PRODUCTION NO. 28: Both the referenced Pleasant Valley Solar PPA and this PPA (Franklin) contain $90 per kW of Project Development Security pursuant to Section 9.1 of each PPA. However, Pleasant Valley Solar accepted the Company’s starting position to keep the same amount of security in place ($90 per kW) for ongoing Default Security pursuant to Section 9.2.2, whereas Franklin Solar was not willing to do so, and the $45/kW for the first 10 years and $35/kW for the remainder of the PPA was negotiated. The security in the Pleasant Valley Solar PPA at $90 per kW provides more security than the lower, negotiated amounts in the Franklin Solar PPA, but that does not mean that the Franklin Solar PPA is insufficient. It was the best position the Company was able to negotiate, and still provides $90 per kW to cover the biggest risk and obstacle, i.e., constructing the project and bringing it online. Once the project is constructed, operational, and meets the commercial operation date, it is much more likely to continue to operate, and therefore less risky. The response to this Request is sponsored by Donovan Walker, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 17 REQUEST FOR PRODUCTION NO. 29: Section 12.2.2 Remedy for Idaho Power's Failure to Purchase states "...less amounts received by Seller pursuant to Section 12.7." Please confirm that Section 12.7 should have been Section 12.6. RESPONSE TO REQUEST FOR PRODUCTION NO. 29: This appears to be a typographical error. Section 12.2.2 is referring to the duty to mitigate, and should have referenced Section 12.6, Duty/Right to Mitigate, rather than Section 12.7, Security. The response to this Request is sponsored by Donovan Walker, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 18 REQUEST FOR PRODUCTION NO. 30: Section 2.5 of Build Transfer Agreement lists a Base Purchase Price of . Please describe the specific products and services included in the Base Purchase Price. RESPONSE TO REQUEST FOR PRODUCTION NO. 30: The Base Purchase Price provides all Membership Interests to Idaho Power as defined in the Build Transfer Agreement, included as Confidential Exhibit No. 6. In general, this is a turn-key commercially operational 60 MW battery energy storage system to be owned and operated by Idaho Power. The Base Purchase Price does not include any ongoing maintenance costs. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 19 REQUEST FOR PRODUCTION NO. 31: Page 31 of Build Transfer Agreement states that Jackpot-Franklin Shared Facilities Agreement shall have been amended and restated. Please explain in detail why the agreement needs to be amended. RESPONSE TO REQUEST FOR PRODUCTION NO. 31: The referenced language is condition (j) to Section 2.9 of the Build Transfer Agreement, which lists the Conditions Precedent to Developer’s Obligation to Complete the Closing. Section 2.9(j) states in its entirety that, “The Jackpot-Franklin SFA shall have been amended and restated to (i) remove Franklin Interconnection, LLC as a party thereto and (ii) add Franklin Solar and the Project Company as parties thereto.” This same Condition Precedent appears in Section 2.8(v) as an identical condition to the Buyer’s obligation to complete the closing. The Agreement needs to be amended to do exactly what is referenced: remove Franklin Interconnection, LLC (which is an entity that was created by the developer and executed the current Shared Facilities Agreement with Jackpot Solar) and to add in its stead Franklin Solar (for the interconnection of the solar photovoltaic facility) and the Project Company, which is the battery storage company that is being purchased by Idaho Power pursuant to the Build Transfer Agreement. The response to this Request is sponsored by Donovan Walker, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 20 REQUEST FOR PRODUCTION NO. 32: Response No. 11 in Case No. IPC-E-22- 13 states that the installation of a battery storage system at a distribution substation this year will provide the Company first-hand experience with operation and maintenance of a smaller-scale system. Please respond to the following: a. Has the battery storage system been installed? b. Has the Company gained any first-hand experience from the smaller-scale system? If so, what has been learned? c. Has the Company gained any first-hand experience from the 40 MW and the 80 MW projects with Powin? If so, what has been learned? d. Based on what has been learned, did the Company consider performing the O&M in-house rather than through a 3rd party? Please provide the cost/benefit analysis for the two alternatives. RESPONSE TO REQUEST FOR PRODUCTION NO. 32: a. Due to supply chain delays, the anticipated smaller-scale battery systems as well as the 40 MW and 80 MW energy storage projects, for which the Company received a CPCN in Case No. IPC-E-22-13, have not yet been commissioned and therefore are not operational. However, Idaho Power anticipates more than 100 MW of battery storage will be fully operational throughout the summer 2023. b. As described in part (a), no operational experience has been gained to date. However, lessons learned from the construction side include the importance of collaboration and coordination of site deliveries, installation practices, foundation and conduit design standards, and development of commissioning procedures, all IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 21 of which will support the completion of the 12 MW Hemingway energy storage project proposed in this case. c. See parts (a) and (b) above. d. Due to Idaho Power’s lack of experience and the lack of trained personnel to operate energy storage systems, an LTSA was required to ensure reliable performance. Therefore, a cost/benefit analysis was not feasible. Idaho Power will have the opportunity to train internal personnel and evaluate the cost/benefit of establishing an internal workforce capable of maintaining the battery systems in the future. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 22 REQUEST FOR PRODUCTION NO. 33: Page 10 of the Application states the Company intends on adding the 12 MW storage to the contract executed with Powin on February 28, 2022 through a change order. Or, in the alternative, use a different supplier the Company has available. Please answer the following: a. Has the Company made a decision on which option to choose? b. If so, has the Company signed a contract for the 12 MW BESS? c. If a contract has been signed, did the parties agree to the price submitted in the RFP? d. Does the Company plan to submit the contract for approval? RESPONSE TO REQUEST FOR PRODUCTION NO. 33: a. Idaho Power has chosen Powin to supply the 12 MW Hemingway BESS project. b. Yes. Idaho Power and Powin executed a Battery Energy Storage Agreement (“BESA”) on June 8, 2023. The BESA is included as Confidential Attachment 1. c. The BESA includes a cost of for the battery supply and the total cost for turn-key installation is estimated to be , which is less than the initially anticipated value described in the Company’s Response to Request for Production No. 27. Note, that the BESA is based on the purchase of 36 MW of battery storage which includes the 12 MW Hemingway BESS project as well as the 24 MW of battery storage described in the Company’s request in Case No. IPC-E-23-20. d. No. However, Idaho Power will request a prudence determination of the 12 MW and 24 MW battery storage systems as part of a future rate proceeding. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 23 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 24 REQUEST FOR PRODUCTION NO. 34: Page 22 of Mr. Ellsworth's Testimony states that the Company conducted a competitive solicitation through an RFP to help meet Idaho Power's previously identified capacity needs of 85 MW in 2024 and 115 MW in 2025. Please respond to the following: a. When were the capacity needs of 85 MW in 2024 and 115 MW in 2025 identified? b. Was the 100 MW solar and 20 MW BESS selected to meet this original 85 MW deficit? c. Please provide evidence of the capacity needs of 85 MW in 2024 and 115 MW in 2025 in the form of Load and Resource Balance ("L&R"). RESPONSE TO REQUEST FOR PRODUCTION NO. 34: a. The capacity need of 85 MW in 2024 and 125 MW in 2025 was first identified in the 2021 IRP load and resource balance, as seen on pages 21-22 of the 2021 IRP - Appendix C. When the 2022 RFP was issued, the 2025 capacity deficiency initially identified was 115 MW however shortly thereafter the Company issued Addendum No. 3 clarifying that, consistent with the 2021 IRP, the capacity need in 2025 was an incremental 125 MW. Please see Attachment 1 for the addendum issued on January 29, 2022. b. Yes. c. See part (a) above. The response to this Request is sponsored by Jared Ellsworth, Transmission, Distribution, & Resource Planning Director, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 25 REQUEST FOR PRODUCTION NO. 35: Page 24 of Mr. Hackett's Testimony states that between the time when the refreshed Long-Term Capacity Expansion ("LTCE") analysis was performed and when contract negotiations were to begin, the 2024 capacity need had increased, so the 20 MW BESS became a 60 MW BESS. Please respond to the following: a. Please confirm that the capacity need in 2024 before the increase was 85 MW. If not, how much capacity was needed before the increase? b. What was the new capacity need after the increase? What factors drove the increase? c. When was this increased capacity need identified? d. Please provide evidence of the new capacity need after the increase in the form of L&R. RESPONSE TO REQUEST FOR PRODUCTION NO. 35: a. Yes. As explained in the Company’s Response to Request for Production No. 34, the 2024 capacity deficiency identified in the 2021 IRP load and resource balance, and the basis for issuance of the 2022 RFP, was 85 MW. b. Please see the Company’s Response to Request for Production No. 12 for the varying 2024 capacity positions throughout the 2022 RFP evaluation process and details regarding the methodology utilized. c. The following table summarizes the varying capacity positions and represents the approximate time frame they were identified: IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 26  Scenario Details Position Identification  20 2 4  L& R   Base Case (103) Capacity Shortfall January 2023 Add 100 MW PV + 20 MW BESS (37) Capacity Shortfall January 2023 Add 100 MW PV + 60 MW BESS (7) Capacity Shortfall January 2023 Add 100 MW + 60 MW BESS   Add 12 MW BESS 4 Capacity Length February 2023 d. See part (b) above. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 27 REQUEST FOR PRODUCTION NO. 36: Page 24 of Mr. Ellsworth's Testimony states that Idaho Power's most recently updated L&R has identified a 2024 capacity need of 103 MW. Please respond to the following: a. What factors drove the increase of capacity needs to 103 MW from the previous deficit? b. When was the capacity need of 103 MW in 2024 identified? c. Please provide evidence of the 103 MW capacity need in the form of L&R. RESPONSE TO REQUEST FOR PRODUCTION NO. 36: a. Yes. As explained in the Company’s Response to Request for Production No. 34, the 2024 capacity deficiency identified in the 2021 IRP load and resource balance, and the basis for issuance of the 2022 RFP, was 85 MW. b. Please see the Company’s Response to Request for Production No. 12 for the varying 2024 capacity positions throughout the 2022 RFP evaluation process and details regarding the methodology utilized. c. The following table summarizes the varying capacity positions and represents the approximate time frame they were identified:  Scenario Details Position Identification  20 2 4  L& R   Base Case (103) Capacity Shortfall January 2023 Add 100 MW PV + 20 MW BESS (37) Capacity Shortfall January 2023 Add 100 MW PV + 60 MW BESS (7) Capacity Shortfall January 2023 Add 100 MW + 60 MW BESS   Add 12 MW BESS 4 Capacity Length February 2023 d. See part (b) above. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 28 REQUEST FOR PRODUCTION NO. 37: Please provide the Company's latest L&R that is used in the AURORA model run in Response to Staff Production Request No. 15. Also, please respond to the following: a. What was the capacity position identified in this L&R? b. What factors drove the change of capacity needs from 103 MW to this capacity position? c. When was this capacity position identified? RESPONSE TO REQUEST FOR PRODUCTION NO. 37: a. 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 fall of 2023, which will include capacity positions for the 20-year planning horizon. Therefore, the capacity position used in the AURORA model run prepared in Response to Staff’s Request for Production No. 15 was the finalized value for the 2024 RFP, which includes the PPA associated with the 100 MW solar photovoltaic facility and the 60 MW BESS project as well as the additional 12 MW of BESS, resulting in 4 MW of length. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 29 Load & Resource Balance  Add Franklin & Add Extra 12 MW 4‐Hour BESS      L&R Contribution  2024 Forecasted 70th Percentile Peak Load + PRM (MW) 4,264.1  Hydro with Storage (Hells Canyon Complex) 1,050.0  Coal (Bridger & Valmy) 442.6  Gas (Langley, Bennett Mountain, Danskin & Bridger) 976.7  Variable & Energy Limited Resources 1,157.5  Firm Transmission 453.0  Emergency Transmission 188.4  2024 Total Generation (MW) 4,268.1  Annual Position (Positive is Length, Negative is Shortfall) 4   Reliability Threshold 0.1 event‐days/year  b. Please see part (f) of the Company’s Response to Request for Production No. 12. c. As explained in the Company’s Response to Request for Production No. 35, this capacity position was identified in March 2023. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 30 REQUEST FOR PRODUCTION NO. 38: Response No. 14 (b) states that the indicative AURORA modeling scenarios consistently selected Project Nos. 7 and 8 in the first LTCE analysis. Please answer the following: a. Please describe each scenario and explain why each scenario is used and how it determines the selected resources are least-risk resources. b. Please indicate whether these scenarios are used in the second LTCE analysis. c. If not, please describe the scenarios used in the second LTCE analysis and explain the reason for the change. d. Please provide all the workpapers of the results under each scenario, showing that the selected resources are least-cost and least-risk, compared to other resources. RESPONSE TO REQUEST FOR PRODUCTION NO. 38: a. The “indicative” AURORA modeling scenarios referenced were all based on the uncertainty associated with different aspects of the Company’s load forecast and capacity position. Therefore, Idaho Power analyzed the following four scenarios: 1. Base 2. Base + 50 MW increase to Idaho Power’s capacity position need as a contingency 3. Base + Additional large load customer 4. Base + Additional large load customer + 50 MW increase to the Company’s capacity position need as a contingency b. Only scenario 3 was used in the second LTCE analysis. c. For the second LTCE analysis, only scenario three was analyzed because finalization of the load forecast and capacity position had occurred by this time, IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 31 thus it was unnecessary to evaluate all four scenarios. Furthermore, as discussed with Staff following the Company’s analyses performed for Request for Production No. 15, the same portfolio of resources was selected by the LTCE analysis in each scenario evaluated in Idaho Power’s supplemental response, including varying gas and carbon prices. d. As explained in the Company’s Response to Production Request No. 14(b), under the LTCE modeling approach, the levelized cost of all 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 identified capacity deficiency. Therefore, there are no workpapers resulting from the LTCE analysis but rather for each scenario the resulting project identified as the most cost- effective resource for meeting the capacity deficiency. The following is a list of which projects were selected under the first LTCE analysis under each scenario: 1. Project No. 7 2. Project No. 7 + Project No. 8 3. Project No. 7 + Project No. 8 4. Project No. 7 + Project No. 8 + Project No. 10 The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 32 REQUEST FOR PRODUCTION NO. 39: Please explain why the Company did not open the requirements for additional 40 MW and 12 MW of storage to RFP bidders. RESPONSE TO REQUEST FOR PRODUCTION NO. 39: The selection of the additional 40 MW of battery storage was an extension of the most cost-effective resource identified through solicitation in the 2022 RFP. Upon identification of the increased capacity deficiency, the Company inquired about the feasibility of an increase in the size of the battery storage system. The developer confirmed the battery storage pricing per kilowatt could be maintained, and an increased system installed, for up to 60 MW of storage. Likewise, the selection of the 12 MW of battery storage was an extension of the next most cost-effective resource identified through solicitation in the 2022 RFP, one of the Idaho Power battery storage benchmark resources. It was determined the Company could economically and efficiently add 12 MW of battery storage at the Hemingway substation without requiring infrastructure upgrades and ensuring maximum investment tax credit benefits as installation could begin timely. The resulting levelized cost was lower than any remaining final short list projects. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 33 REQUEST FOR PRODUCTION NO. 40: Please describe any weighting factors the Company used in both qualitative and quantitative bid analysis and explain if these factors were included in bid solicitation materials. RESPONSE TO REQUEST FOR PRODUCTION NO. 40: Specific weighting factors were not included in the bid solicitation materials. However, as described in the 2022 RFP, the qualitative evaluation ranked the proposals based on project feasibility, project capability, counterparty profile, and community stewardship, with each category generally weighted to ensure the evaluation process was conducted without bias and yields results that are aligned to Idaho Power’s resource needs. Black & Veatch further assisted Idaho Power in the consolidation and integration of final evaluations prepared by Idaho Power subject matter experts, and overall weighting of individual factors and key categories that influenced both quantitative and qualitative evaluation. 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 CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 34 REQUEST FOR PRODUCTION NO. 41: Response to Staff Production Request No. 3 in Case No. IPC-E-22-13 states that Idaho Power believes the December 2021 RFP (the 2022 RFP) allows for slightly more time to determine whether the operational needs can be met through a third-party owned battery storage agreement. Please provide all additional information the Company has learned including the pros and cons of 3rd party ownership since submitting this response. RESPONSE TO REQUEST FOR PRODUCTION NO. 41: As explained in the Company’s request for a Certificate of Public Convenience and Necessity (“CPCN”) for procurement of resources to meet the 2023 capacity deficiency in Case No. IPC-E-22- 13, the urgency of the identified need impacted the procurement process. During this compressed timeframe, Idaho Power was considering the risks and benefits of differing ownership structures and operation of resources either as stand-alone projects or in connection with energy storage projects. At the time, Idaho Power was uncertain that it could adequately address several important operational and policy concerns with third- party ownership of battery storage resources. One of the primary features of an owned peak capacity resource is the ability to configure, reconfigure, maintain, operate, and economically and operationally dispatch the unit without application of the confines of the terms and conditions of a power purchase agreement (“PPA”) with a third party. Due to the uncertainty at that time, the Company believed that its ownership and operation of the battery storage resources would reduce the risk of potential operational limitations that could exist under a PPA and ensure the resource is operational in time to meet identified capacity deficits. While the Company acknowledged that the issues identified could conceivably be addressed through an agreement with a third-party provider, Idaho Power IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 35 was unable to achieve such contract terms in the limited time available for the resource procurements necessary to meet the 2023 capacity deficiency. However, as evidenced in the Company’s request in Case No. IPC-E-23-20, the request for a CPCN to acquire resources to be online in both 2024 and 2025 and for approval of an Energy Storage Agreement (“ESA”), since then, Idaho Power has developed contractual terms that alleviate concerns about potential operations limitations associated with third party ownership of storage resources. The Company worked extensively with Kuna BESS LLC (“Kuna BESS”), the developer of the most cost-effective project proposals submitted as part of the 2022 RFP, to execute a 20-year ESA in which Kuna BESS would develop, design, construct, own, and operate a battery storage system. The ESA is a slightly different kind of agreement and is sometimes referred to in the industry as a “tolling” agreement, acting as a type of a lease. While Kuna BESS will own and operate the battery storage system, in accordance with the terms of the agreement, Idaho Power has the exclusive right to dispatch and use the charging and discharging energy in exchange for a monthly payment. Although the ESA is required to be recorded as a lease for accounting purposes and has an impact on the Company’s financial statements, once the Kuna BESS project was identified as the least-cost/least-risk resource necessary for meeting Idaho Power’s 2025 capacity deficiency, the Company evaluated the financial impact of such an agreement and the resulting effect on the levelized cost of the project. Even with the inclusion of the additional costs associated with the lease, the project remained the least- cost/least-risk resource. At this time, Idaho Power has not identified any additional pros or cons associated with the third-party ownership of the resource. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 36 The response to this Request is sponsored by Tim Tatum, Vice President of Regulatory Affairs, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 37 REQUEST FOR PRODUCTION NO. 42: Please respond to the following regarding charging prices: a. The RFP requires that, for proposals of solar paired with storage or wind paired with storage where the Company owns the storage component, Respondent must provide the price of charging the energy storage from the solar or wind resources. What is the price of charging the 60 MW BESS in this case? Where is the price listed in the PPA or Build Transfer Agreement? b. Please explain how the price is modeled in AURORA. RESPONSE TO REQUEST FOR PRODUCTION NO. 42: a. The price of charging the 60 MW BESS is the Franklin Solar Power Purchase Agreement (“PPA”) price, presented in Exhibit 5 of the PPA included as Confidential Exhibit No. 5, for the first 5 years of the BESS resource life. b. The BESS is modeled as needing to charge from Franklin Solar at the PPA price resource for the first 5 years of its life. After the first 5 years, the BESS is modeled such that it can be charged by the grid. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 38 REQUEST FOR PRODUCTION NO. 43: Please respond to the following regarding all-in costs: a. Please provide the workpaper that shows the all-in cost of the 60 MW BESS and a breakdown of the all-in cost, and explain what cost items are considered in the bid price. b. Please provide the workpaper that shows the all-in cost of the 12 MW BESS and a breakdown of the all-in cost, and explain what cost items are considered in the bid price. c. Please explain whether the 100 MW solar paired with the 60 MW BESS and the 12 MW standalone BESS are still the least-cost projects among all projects on the final short list, when all the additional costs (e.g. O&M costs) outside the bid prices are considered. Please provide evidence to support your answer. d. Please provide the workpaper that shows the all-in costs and a cost breakdown of the all-in cost for the storage projects proposed in Case No. IPC-E-22-13, and compare each cost category to the same cost categories for the 60 MW BESS and the 12 MW BESS projects in this case. RESPONSE TO REQUEST FOR PRODUCTION NO. 43: a. As explained in the Company’s Response to Request for Production No. 27(b), the $ purchase price under the Build Transfer Agreement for the 60 MW BESS includes the purchase and installation of the batteries and ancillary equipment such as transformers, inverters, cables, networking equipment, foundations, structures, etc. These costs include full turn-key implementation from design and engineering to procurement and construction. In addition to the bid price, Idaho Power considers operations and maintenance (“O&M”) costs IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 39 associated with the project in the levelized cost calculation. Those costs include ongoing and routine maintenance, capacity augmentation, property tax, and insurance. Please see part (d) for a breakdown of these additional costs. b. The 12 MW BESS system is estimated to cost approximately $, based on the executed BESA described in the Company’s Response to Request for Production No. 33, and includes the purchase and installation of the batteries and ancillary equipment such as transformers, inverters, cables, networking equipment, foundations, structures, etc. These costs include full implementation from design and engineering to procurement and construction. In addition to the bid price, Idaho Power considers O&M costs associated with the project in the levelized cost calculation. Those costs include ongoing and routine maintenance, capacity augmentation, property tax, and insurance. The following table provides total cost estimates for the development and construction of the 12 MW BESS at Hemingway. Engineering design agreements are being scoped currently and costs reflect estimates based on previous project experience at this location. Powin Supplied BESS Equipment Project Management, Engineering, Design, Construction Management, Permitting, and general Administration Civil Construction, Site Work, Underground Conduit and Grounding, Fencing, Concrete Foundations Electrical Construction BESS Installation Testing and Commissioning Idaho Power Interconnection Facilities TOTAL IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 40 c. As described in the Direct Testimony of Mr. Hackett, in the original evaluation of the projects, additional costs outside of the bids such as ongoing and routine maintenance, capacity augmentation, property tax and insurance were considered in the levelized cost calculations. Therefore, the evaluation process selects the least-cost resource based on all cost components of the project. d. Please see the table below for a comparison of the cost components for the 60 MW BESS and 12 MW BESS for which the Company is requesting a Certificate of Public Convenience and Necessity (“CPCN”) in this case with the 80 MW BESS and 40 MW BESS for which Idaho Power received a CPCN in Case No. IPC-E-22-13. Please note, the costs presented below for the 80 MW BESS and 40 MW BESS are the most recent cost estimates as presented most recently in the Company’s general rate case, Case No. IPC-E-23-11: Case No. IPC-E-22-13 Resources Case No. IPC-E-23-05 Resources Product Type BESS - 4 hr BESS - 4 hr Storage+Solar PPA BESS - 4 hr Bidde Idaho Power Company Idaho Power Company Duke Energy Renewables, Inc Idaho Power Company MW 40.00 80.00 60.00 12.00 Bid Price/Cost $60,830,657 $113,969,879 First Year O&M - Base $295,000 $612,000 First Year O&M - Augmentation 1 1 First Year O&M - Property Tax/Insurance 1 1 Total Capital Cost per kW $1,521 $1,425 1. Costs presented are the amounts utilized for evaluation of the project as part of the 2022 RFP as these amounts are not included or separately identified in Case No. IPC-E-23-11. The response to this Request is sponsored by John Wonderlich, Finance Team Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 41 DATED at Boise, Idaho this 29th day of June 2023. DONOVAN E. WALKER Attorney for Idaho Power Company IDAHO POWER COMPANY’S RESPONSE TO THE CONFIDENTIAL SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 42 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 29th day of June 2023, I served a true and correct copy of Idaho Power Company’s Response to the Confidential Second 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 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 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 CONFIDENTIAL ATTACHMENT 1 REQUEST NO. 33 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-05 IDAHO POWER COMPANY ATTACHMENT 1 REQUEST NO. 34 ADDENDUM NO. 03 2022 All Source Request for Proposals (RFP) for Peak Capacity Resources and Energy Resources 1 TO: All Prospective Respondents RE: Request for Proposals – Zycus Event #1312683354 DATE: January 29, 2022 The following items are addressed in this Addendum No. 03: 1. Clarifications and Changes: 1.1. Section 2.2 of the RFP narrative states that Idaho Power has an identified capacity need of 85 megawatts (MW) in 2024 and an incremental 115 MW in 2025. However, as further detailed in Idaho Power’s published 2021 Integrated Resource Plan (IRP), the identified capacity and energy deficit to reliability meet growing pressures on Idaho Power’s electrical system and serve its customers is greater. It is important to note, that Idaho Power’s identified capacity need is 85 MW in 2024 and an incremental 125 MW in 2025. For purposes of clarity, Idaho Power has updated the language in the RFP narrative, as attached to this Addendum No. 03. Idaho Power Company Request for Resource Team 1221 W. Idaho St. | Boise, ID | 83702 Email resourceRFP@idahopower.com