Loading...
HomeMy WebLinkAbout20231205IPC to Staff 1-19.pdf MEGAN GOICOECHEA ALLEN Corporate Counsel MGoicoechiaAllen@idahopower.com December 5, 2023 VIA ELECTRONIC MAIL Commission Secretary Idaho Public Utilities Commission 11331 West Chinden Blvd., Building 8 Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-23-27 Idaho Power Company’s Application for Approval of the Capacity Deficiency Period to be Utilized for Avoided Cost Calculations Dear Commission Secretary: Attached for electronic filing is Idaho Power Company’s Response to the First Production Request of the Commission Staff to Idaho Power Company in the above- entitled matter. The confidential attachment will be sent in a separate email to the parties who sign the Protective Agreement. If you have any questions about the attached documents, please do not hesitate to contact me. Very truly yours, Megan Goicoechea Allen MGA:cd Enclosures RECEIVED Tuesday, December 5, 2023 3:43:30 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-23-27 Idaho Power Company’s Application for Approval of the Capacity Deficiency Period to be Utilized for Avoided Cost Calculations The undersigned attorney, in accordance with Commission Rules of Procedure 67, believes that the Attachment No. 1 to Idaho Power Company’s Response to the First Production Request of the Commission Staff to Idaho Power Company dated December 5, 2023, may contain information that Idaho Power Company and a third party claims is a confidential trade secrets and business records of a private enterprise required by law to be submitted to or inspected by a public agency as described in Idaho Code § 74-101, et seq., and/or § 48-801, et seq. As such, it is protected from public disclosure and exempt from public inspection, examination, or copying. DATED this Tuesday, December 5, 2023, Megan Goicoechea Allen Counsel for Idaho Power Company IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 1 MEGAN GOICOECHEA ALLEN (ISB No. 7623) 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 mgoicoecheaallen@idahopower.com dwalker@idahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR APPROVAL OF THE CAPACITY DEFICIENCY PERIOD TO BE UTILIZED FOR AVOIDED COST CALCULATIONS. ) ) ) ) ) ) ) ) ) ) CASE NO. IPC-E-23-27 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 November 14, 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 STAFF REQUEST FOR PRODUCTION NO. 1: Page 4 of the Application states that the Company uses the most recent, relevant, and accurate information available in this case. Please respond to the following regarding the load forecast used. a. Please explain when the load forecast was created; b. Please compare the load forecast used in this case and the load forecast used in the last capacity deficiency case (Case No. IPC-E-21-09) that determined a 2023 first deficit year and explain the difference between the two forecasts; c. Please provide the workpapers that compare the two forecasts; and d. Please explain what causes any difference. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 1: Please see the responses below: a. The load forecast used in this case was created in the second quarter of 2023 to be used in the Company’s 2023 Integrated Resource Plan (referred to hereafter as the “2023 IRP Forecast”). b. The load forecast used in the last capacity deficiency case was used in the Company’s 2019 Integrated Resource Plan (referred to hereafter as the “2019 IRP Forecast”). When compared to the 2019 IRP Forecast, the 2023 IRP Forecast resulted in a 639 MW increase in the Company’s 50th-percentile system peak by 2038. This difference is primarily due to an increase in forecasted Additional Firm Load, or Energy Service Agreement (“ESA”), load requirements. c. Please see the Excel file labeled “CONFIDENTIAL Attachment 1 - Response to Staff Request for Production No. 1.xlsx” for a workpaper comparing the two forecasts. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3 d. For comparison purposes, the differences between the 50th-percentile 2019 IRP Forecast and 50th-percentile 2023 IRP Forecast are referenced in this response. Any variances due to resource margin method changes are not reflected in this comparison. Compared to the 2019 IRP Forecast, residential load increased by an average of approximately 25 aMW per year due to higher than expected customer growth. When combined, there was substantially no change in Commercial and Industrial load between the two forecasts. Irrigation load decreased by a minimal amount (an average of approximately 10 aMW per year). The primary difference between the two forecasts is associated with ESA customer load. Relative to the 2019 IRP Forecast, the 2023 IRP Forecast incorporates the addition/expansion of two ESA customers: Meta Platforms, Inc. (Meta) and Micron Technology, Inc. (Micron), who are both building new, large facilities in Idaho Power’s service area. Detail is provided in the confidential attachment included for part C. The response to this Request is sponsored by Jordan Prassinos, Load Forecast Manager and Principal Economist, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4 STAFF REQUEST FOR PRODUCTION NO. 2: Please respond to the following questions regarding Figure No. 1 shown during Portfolio Reliability Analysis presentation in the August 15, 2023, Integrated Resource Plan Advisory Council meeting. Figure No. 1 Reliability & Capacity Assessment Tool ("RCAT") Modeling Flowchart a. Please explain how "System Adjusted Load" is determined; b. Please explain the test years used to determine the capacity deficiency, why these test years were selected, and how test years are adjusted to align with the monthly peak of each forecasted Load and Resource ("L&R") year over the planning horizon; c. Please explain whether the adjustments used to align with each forecasted L&R year occurs to each year throughout the entire planning horizon; d. Please explain if such adjustments take place before the step of netting out the capacity of "Run of Rivers", "Variable Energy Resources", "Cogeneration & Small Power Production" in Figure No. 1. If not, where are these adjustments located in IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5 Figure No. 1; and e. Please explain how "net load" is derived and how the amounts of "Run of Rivers", "Variable Energy Resources", "Cogeneration & Small Power Production" are determined. Do the amounts depend on the test years and the alignment of test years to the L&R years? RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 2: Please see the responses below: a. The system adjusted load is determined by adding the dispatched demand response during a given year to the system load. 𝑆𝑦𝑠𝑡𝑒𝑚 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝐿𝑜𝑎𝑑=𝑆𝑦𝑠𝑡𝑒𝑚 𝐿𝑜𝑎𝑑+𝐷𝑒𝑚𝑎𝑛𝑑 𝑅𝑒𝑠𝑝𝑜𝑛𝑠𝑒 𝐷𝑖𝑠𝑝𝑎𝑡𝑐ℎ𝑒𝑑 b. The Company utilizes six test years of historical hourly data to maintain the relationship between weather, load, and Variable Energy Resource (“VER”) generation. The test years range from the most recently available data of 2022 back to 2017, when the first utility-scale solar plant came online and delivered generation to Idaho Power. The test year hourly load is adjusted by scaling each month individually such that each month in a test year has the same peak as the forecasted monthly peak for a given Load and Resource (“L&R”) year. The annual capacity position of a particular L&R year is calculated for each of the six test years and then averaged to determine the Company’s first year of capacity deficiency. c. Yes, the adjustments to the test year hourly load are performed for each L&R year throughout the planning horizon. d. Yes, the adjustments to the test year hourly load take place before any resources are netted out. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6 e. The net load is derived by taking a test year’s system-adjusted load and subtracting all the generation (from the same test year) that Idaho Power does not control on an hour-by-hour basis (such as run-of-river hydro, wind, solar, and cogeneration and small power production); the historical data of these resources is scaled up or down depending on additions and/or retirements in any given L&R year. For more information on how the net load is calculated, please see the “Reliability & Capacity Assessment” video on the Educational Resources webpage of Idaho Power’s 20-Year Plan.1 The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. 1 Idaho Power 20-Year Plan Educational Resources (starting at minute 20) IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7 STAFF REQUEST FOR PRODUCTION NO. 3: Please respond to the following regarding the annual capacity position of each test year. a. Please confirm that the annual capacity position of each test year is the amount of capacity needed during hours of highest risks; b. Does each year in the entire planning horizon have different hours of highest risks? Please explain; c. Please explain how hours of highest risks are identified and provide a workpaper to illustrate the process; and d. Please explain how annual capacity positions are determined based on hours of highest risks and provide a workpaper to illustrate the process. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 3: Please see the responses below: a. No, the annual capacity position of each test year does not represent the amount of capacity needed during the hours of highest risk. The annual capacity position (which is an average across six test years) is the amount of perfect capacity that corresponds to achieving a Loss of Load Expectation (“LOLE”) of 0.1 event-days per year. The hours of highest risk can be derived from the LOLE analysis. In the event of a capacity shortfall, the timing of highest risk analysis helps determine which hours need to be targeted for capacity additions and best achieve the desired LOLE threshold. b. As the hours of highest risk and annual capacity positions are both derived from the LOLE analysis, yes, there is potential that the hours of highest risk could vary by Load and Resource (“L&R”) year. The hours of highest risk and annual capacity IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8 positions are functions of the system buildout in a particular L&R year. The addition and/or retirement of generation resources (especially Variable Energy Resources (“VERs”) and Energy Limited Resources (“ELRs”)) and load shape impact the hours of highest risk in any given L&R year. c. Please see the Timing of Highest Risk section in Appendix C of the 2023 Integrated Resource Plan for information on how the hours of highest risk are determined. For more in-depth information about how the hours of highest risk are determined please see the attachment to this request, which provides responses to discovery requests No. 4 through No. 8 in Case No. IPC-E-23-23. d. As stated in part a. of this response, the annual capacity positions are not determined based on the hours of highest risk. The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 9 STAFF REQUEST FOR PRODUCTION NO. 4: Please respond to the following regarding the Effective Load-Carrying Capability ("ELCC") results listed on Page 92 of Appendix C of the 2023 Integrated Resource Plan ("IRP"). a. The results include "ELCC of Existing and Expected Resources" and "ELCC of Future Resources." Please explain the difference between "Expected Resources" and "Future Resources." b. Is "ELCC of Future Resources" used in this case? If so, please explain why they are appropriate for establishing the first capacity deficiency date. c. Is the "ELCC of Existing and Expected Resources" used in this case? If so, please explain how it is used. d. Is the "ELCC of Existing and Expected Resources" used to determine the amount of "Run of Rivers", "Variable Energy Resources", "Cogeneration & Small Power Production" capacity reflected in Figure No. 1 above? e. Please explain how "ELCC of Existing and Expected Resources" and "ELCC of Future Resources" are determined and whether there is a difference between the two methods. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 4: Please see the responses below: a. “Expected Resources” are resources that are under contract and/or expected to come online in the near-term but not yet in service. “Future Resources” are resources that do not have a contract. b. The values provided on page 92 of Appendix C under “ELCC of Future Resources” were not utilized in this case and were provided for informational purposes. Only IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 10 resources under contract and/or expected to come online in the near term are utilized in the determination of the capacity deficiency date. c. The values provided on page 92 of Appendix C under “ELCC of Existing and Expected Resources” were not utilized in this case and were provided for informational purposes. d. ELCC values are not used to calculate capacity positions, meaning they do not inform the deficiency date. ELCC values are an output of the Company’s Reliability and Capacity Assessment Tool (“RCAT”), not an input. e. Both the “ELCC of Existing and Expected Resources” and the “ELCC of Future Resources” are calculated using the “last-in” ELCC methodology. The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 11 STAFF REQUEST FOR PRODUCTION NO. 5: Please list all the resources used in the L&R Balance by resource type (i.e. coal, natural gas, hydro, solar, wind, storage, market purchases, etc.) and for each resource, provide the following information. a. Please provide the first operation date for any new resource included in the L&R balance across the 20-year planning horizon since the last deficit date case was filed; b. Please provide the exit/retirement dates for any resource that exits or retires at any point during the 20-year planning horizon in the L&R balance; and c. Please list all the coal units that are assumed to be converted to gas in the L&R balance and when each assumed conversion occurs. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 5: Please see the responses below: a. For clarification, Idaho Power has replaced the traditional Load and Resource Balance with the annual capacity position analysis (as derived through the Loss of Load Expectation methodology). Please see the Excel file labeled “Attachment – Response to Staff Request for Production No. 5.xlsx” for a list of resources used in the capacity position calculation and their associated dates of operation. b. Please see the attachment provided in a. above for a list of resources used in the capacity position calculation and their associated dates of operation. For specifics regarding Power Purchase Agreement contract end dates, please see pages 27- 29 of Idaho Power’s 2023 Integrated Resource Plan Appendix C. c. Coal-to-gas conversion assumptions are provided in the table below: Unit Plant Conversion Status 1 Valmy* Q1 2026 Evaluated during the2023 IRP IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 12 2 Valmy* Q1 2026 Evaluated during the2023 IRP 1 Jim Bridger Q1 2024 Determined during the2021 IRP 2 Jim Bridger Q1 2024 Determined during the2021 IRP 3 Jim Bridger* Q1 2030 Evaluated during the2023 IRP 4 Jim Bridger* Q1 2030 Evaluated during the2023 IRP * Outside the capacity deficiency analysis; data provided for completeness only The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 13 STAFF REQUEST FOR PRODUCTION NO. 6: Please identify differences in resources included in this case compared to resources in the last capacity deficiency case (Case No. IPC-E-21-09) and justify these changes. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 6: The resources listed in Case No. IPC-E-21-09 used the 2021 Integrated Resource Plan (“IRP”) as the basis for resources. This case, IPC-E-23-27, uses the 2023 IRP as the basis for the resources. The resources highlighted in yellow in the attachment provided in the Company’s response to Request No. 5 represent the differences between IPC-E-21-09 and IPC-E- 23-27. These resources additions were the subject of prior cases IPC-E-22-06, IPC-E- 22-13, IPC-E-22-29, IPC-E-23-05 and IPC-E-23-20 and approved by the Commission. The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 14 STAFF REQUEST FOR PRODUCTION NO. 7: Please explain how market purchase capacity is represented in the R-CAT model and how transmission capacity affects it. In the answer, please identify any incremental additions of transmission capacity, the amount of contributed firm capacity to the Company's system, and the timing of each. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 7: Market purchases are modeled by the amount of firm capacity available in the transmission system. Table 7.1 of the 2023 Integrated Resource Plan (“IRP”) shows the transmission capacity of the transmission paths that affect Idaho Power. The amount of firm capacity modeled in the Company’s Reliability and Capacity Assessment Tool (“RCAT”) is described in Table 7.4 of the 2023 IRP. The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 15 STAFF REQUEST FOR PRODUCTION NO. 8: Please explain if all firm transmission capacity included in this case is backed by contracts. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 8: Firm transmission capacity included in this case is not backed by specific resource contracts. Table 7.4 of the 2023 Integrated Resource Plan describes the capacity modeling assumptions used in this case for existing transmission connections. For transmission to be given a credit toward the annual capacity position, transmission used for imports must have a corresponding firm third-party transmission reservation between an energy market hub and the Idaho Power transmission system. Also included in Table 7.4 is Emergency Transmission or Capacity Benefit Margin (“CBM”). CBM-held capacity on the Idaho Power system does not have a corresponding third-party reservation beyond the Idaho Power transmission border. The planned Boardman to Hemingway (“B2H”) line in 2026 will come with a corresponding transmission reservation on the Bonneville Power Administration transmission system between the Mid-C market hub and the Longhorn terminus of B2H. The Four Corners transmission capacity gained by Idaho Power through the B2H-related asset exchange with PacifiCorp will provide Idaho Power a direct transmission ownership path from the Four Corners desert southwest market hub to Idaho Power. Therefore, a third-party reservation is not necessary for the anticipated Four Corners transmission capacity. The response to this Request is sponsored by Curtis Westhoff, System Consulting Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 16 STAFF REQUEST FOR PRODUCTION NO. 9: Besides Capacity Benefit Margin ("CBM"), please list any other non-firm transmission capacity included in the L&R Balance and why it is included. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 9: For clarification, Idaho Power has replaced the traditional Load and Resource Balance with the annual capacity position analysis (as derived through the Loss of Load Expectation methodology). There is no other non-firm transmission capacity included in the calculation of the capacity position other than CBM. The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 17 STAFF REQUEST FOR PRODUCTION NO. 10: Please explain the assumptions regarding PURPA contract renewals and how these assumptions are justified. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 10: The general IRP modeling assumption regarding PURPA contract renewals is that all qualifying facility (“QF”) resources, except for wind, enter into replacement contracts when their existing contracts expire. This assumption is based on Idaho Power’s experience with these resource types generally entering into replacement contracts when their existing contracts expire. The baseline IRP modeling assumes that wind QFs do not renew when they expire; this assumption is based on Idaho Power’s experience and discussions with developers indicating either a lack of interest in a replacement contract, or uncertainty as to whether the project would seek a replacement contract or a different contract structure, or uncertainty as to the project’s plans after the existing contract expires. The July 2026 first deficit date identified in the Preferred Portfolio of the 2023 IRP is based on the above assumptions. In the current IRP, Idaho Power ran additional scenarios including one in which all wind QFs enter into replacement contracts and in which certain amounts of new QFs are assumed to come online over the planning horizon. The above assumptions and scenarios were discussed in detail with the IRP Advisory Council and were discussed in the 2023 IRP, p. 128. The response to this Request is sponsored by Camille Christen, Resource Planning, Acquisition, and Coordination Manager, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 18 STAFF REQUEST FOR PRODUCTION NO. 11: Please explain the renewal assumptions of non-PURPA contracts in this case and how the assumptions are justified. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 11: Non-PURPA Power Purchase Agreements (“PPA”) are not assumed to enter into new contracts with Idaho Power when their existing contracts expire. Non-PURPA projects have no right nor obligation to continue selling to Idaho Power once the existing contract expires. Any new contract with the project after that time would be based on negotiations regarding pricing, terms, and conditions at the time and would be subject to Idaho Power’s needs at the time. The assumption that non-PURPA PPAs do not enter into new contracts with Idaho Power when their existing contracts expire was discussed with the IRP Advisory Council. Thus, not including a renewal assumption reflects the actual rights and obligations of the parties and ensures that Idaho Power appropriately identifies its future needs. If a new contract was executed with an existing project, that information would be reflected in any subsequent Request for Proposal evaluations and IRPs. 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 - 19 STAFF REQUEST FOR PRODUCTION NO. 12: Please identify when Valmy Unit 2 is assumed to close in the R-CAT model. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 12: For the capacity deficiency analysis, Valmy Unit 2 was assumed to cease operations at the end of 2025 (December 31st, 2025). The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 20 STAFF REQUEST FOR PRODUCTION NO. 13: Please verify whether Demand Response uses the following assumptions: (1) existing DR programs are included at the current levels but can reflect forecasted changes in the amount based on forecast levels of participation or known changes to programs; and (2) future new DR programs are not included. If not, please explain what assumptions are used and why they are used. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 13: The Company uses the existing Demand Response (“DR”) program at the current levels. The Company does not include forecasted changes in participation level. No new DR programs are included. The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 21 STAFF REQUEST FOR PRODUCTION NO. 14: Please verify whether all cost- effective Energy Efficiency ("EE") programs are included based on forecasted participation. If not, please explain the EE assumptions used in the R-CAT model. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 14: Cost-effective energy efficiency is included as a decrement to the load forecast and is therefore accounted for in the Company’s Reliability and Capacity Assessment Tool (“RCAT”). The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 22 STAFF REQUEST FOR PRODUCTION NO. 15: Please verify whether on-site generation uses current levels but can reflect forecasted levels of participation or known changes. If not, please explain the capacity assumptions of on-site generation in the R- CAT model. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 15: The forecasted levels of on-site generation are included in the load forecast and is therefore accounted for in the Company’s Reliability and Capacity Assessment Tool (“RCAT”). The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 23 STAFF REQUEST FOR PRODUCTION NO. 16: Please explain how B2H is included in the R-CAT model. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 16: In the Company’s Reliability and Capacity Assessment Tool (“RCAT”), the Boardman to Hemingway (“B2H”) transmission line is modeled as a resource, similar to market purchases, with a monthly capacity value and an Equivalent Forced Outage Rate during demand (referred to as EFORd). The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 24 STAFF REQUEST FOR PRODUCTION NO. 17: Please explain whether resources proposed in Case No. IPC-E-23-05 are included in the R-CAT model. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 17: Yes, the resources proposed in IPC-E-23-05 are included in the Company’s Reliability and Capacity Assessment Tool (“RCAT”). The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 25 STAFF REQUEST FOR PRODUCTION NO. 18: Please explain whether resources proposed in Case No. IPC-E-23-20 are included in the R-CAT model. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 18: Yes, the resources proposed in IPC-E-23-20 are included in the Company’s Reliability and Capacity Assessment Tool (“RCAT”). The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 26 STAFF REQUEST FOR PRODUCTION NO. 19: Page 92 of Appendix C of the 2023 IRP states the Company includes 14 MW of WRAP capacity benefit beginning in 2027 through the planning horizon. Please answer the following: a. Does the 14 MW of WRAP capacity contribution occur in 2027 in the L&R balance in this case? b. If it is different, please explain why. c. Can each participant in the WRAP establish when their commitment for binding will occur? Please explain. d. Has the Company made a firm commitment when it will become binding? Please explain. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 19: Please see the responses below: a. Yes, the 14 MW of Western Resource Adequacy Program (“WRAP”) capacity was modeled to begin in 2027. b. Not applicable. c. Binding participation in WRAP must commence between the Summer 2025 and Summer 2028 seasons. Within this window, participants will individually choose the season to commence binding participation. WRAP established this three-year binding commitment window in recognition that not all participants may have made all necessary arrangements and implemented all necessary business processes at the program’s outset to secure WRAP qualifying resources, meet the various WRAP obligations, and avoid imposition of non-compliance related charges. The goal of this window is for participants to be fully prepared for binding participation IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 27 and, therefore, more likely to maintain ongoing participation, helping keep WRAP viable and providing value to the region through the diversity of loads, resources, and transmission. d. Idaho Power has not committed to a binding participation date. The Company initially targeted Summer 2027 as the first binding season. However, there has been discussion among WRAP participants to collectively target an earlier binding date. The greater the number of binding participants, the greater the diversity of loads, resources, and transmission, and, by extension, the ability to reconcile deficits and surpluses in the operating time horizon. Idaho Power is assessing the possibility of commencing binding participation in Summer 2026 but has yet to finalize a decision. It is expected that binding participation will occur no later than Summer 2027. The Company will alert the Commission prior to committing to a binding participation date. The response to this Request is sponsored by Andrés Valdepeña Delgado, System Planning Engineer, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 28 Respectfully submitted this 5th day of December 2023. MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 29 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 5th day of December 2023, I served a true and correct copy of the within and foregoing 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: Adam Triplett Deputy Attorneys General Idaho Public Utilities Commission P.O. Box 83720 Boise, ID 83720-0074 Hand Delivered _ U.S. Mail Overnight Mail FAX X Email – adam.triplett@puc.idaho.gov C. Tom Arkoosh Arkoosh Law Offices 913 W. River Street, Suite 450 P.O. Box 2900 Boise, ID 83701 Hand Delivered _ U.S. Mail Overnight Mail FAX X Email – tom.arkoosh@arkoosh.com erin.cecil@arkoosh.com ________________________________ Christy Davenport, Legal Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-27 IDAHO POWER COMPANY ATTACHMENT 1 Response to Request for Production No. 1 SEE CONFIDENTIAL EXCEL SPREADSHEET BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-27 IDAHO POWER COMPANY ATTACHMENT 2 Response to Request for Production No. 3 IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF- 6 STAFF REQUEST FOR PRODUCTION NO. 4: Please provide the rational for using 90% of total hourly risk to determine seasons of highest risk. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 4: The goal in establishing a threshold to determine seasons of highest risk is to identify the critical timeframes that incentivize either additional resource output or reduced demand. Utilizing 100 percent of total hourly risk would include all hours of the year and provide no meaningful information. Meanwhile, utilizing a 90 percent threshold eliminates the non-critical hours, while still accounting for different weather patterns from the six test years of historical data when establishing seasons. 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 FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF- 7 STAFF REQUEST FOR PRODUCTION NO. 5: Please define the "time of occurrence" used to group the top 90% of LOLP values when determining seasons of highest risk. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 5: When determining seasons of highest risk, a Loss of Load Probability (“LOLP”) is calculated for each hour in the calendar year. Then, the top 90 percent of those calculated hourly LOLP values are selected to inform the seasons of highest risk. Each LOLP value that is within the top 90 percent maintains its individually associated time stamp, which includes the hour, day, and month. The associated time stamps of the top 90 percent LOLP values are the referenced “time of occurrence.” For example, if the highest LOLP value occurred on July 14th at 7:00 pm, that would be its “time of occurrence.” For determining the seasons of highest risk, the Company focuses on the day and month of the top 90 percent of LOLP values and their time of occurrence. 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 FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF- 8 STAFF REQUEST FOR PRODUCTION NO. 6: Please define the criteria that the Company uses to identify the seasons of highest risk as November 1 through February 28 and June 1 through September 15. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 6: As discussed in the Company’s responses to Request Nos. 4 and 5, the Company first calculated the top 90 percent of Loss of Load Probabilities (“LOLP”) and their associated times of occurrence. Then, utilizing the identified times of occurrences, the time stamps were grouped by month. Within each month, the time stamps were then grouped by the nearest half month. For example, if the latest identified time stamp in September occurred on the 9th, the season was extended to September 15th to account for the year-to-year variation in weather and load. 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 FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF- 9 STAFF REQUEST FOR PRODUCTION NO. 7: Please provide the rationale for selecting the top 50% risk hours in each month for the purpose of determining the hours of highest risk. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 7: The top 50 percent of risk hours per month threshold was selected to create a relevant and manageable sample size for determining the hours of highest risk. For example, this threshold reduces the 720 hours in the month of June to a number in the double digits. This sample includes enough data points to develop a meaningful distribution of high-risk hours and captures the year-to-year and day-to-day variability of the calculated Loss of Load Probabilities (“LOLP”), while also minimizing computational burden. 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 FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF- 10 STAFF REQUEST FOR PRODUCTION NO. 8: Please describe the "percent of occurrence threshold" that the Company uses to differentiate between hours of medium risk and hours of highest risk. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 8: Using the top 50 percent of risk hours, as described in the Company’s response to Request No. 7, the Company identified monthly risk hours by grouping data points by the hour of day in which they occurred. Then, from the determined monthly risk hours, the highest risk hours were identified from the percent of occurrences greater than approximately 15 percent for the summer months and the percent of occurrences greater than approximately 10 percent for the winter months. Hours that did not exceed these thresholds were determined to be “medium risk” hours. The response to this Request is sponsored by Jared Ellsworth, Transmission, Distribution & Resource Planning Director, Idaho Power Company. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-27 IDAHO POWER COMPANY ATTACHMENT 3 Response to Request for Production No. 5 SEE EXCEL SPREADSHEET