20200225_ej1.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE:FEBRUARY 21,2020
SUBJECT:IN THE MATTER OF IDAHO POWER COMPANY'S 2019
INTEGRATED RESOURCE PLAN;CASE NO.IPC-E-19-19.
On June 28,2019,Idaho Power Company ("Idaho Power"or "Company")filed an
Application requesting the Commission accept the Company's 2019 Integrated Resource Plan
("IRP").
On July 19,2019,the Company filed a letter stating that the Company had identified
the need to perform supplemental analysis in order to confirm the accuracy of the IRP's
conclusions and findings.The Company estimated the additional analysis could be completed
and filed by October 31,2019.
On August 13,2019,the Commission issued a Notice of Application acknowledging
the Company's requested extension of time and stating the Commission would issue a Notice
establishing procedure and deadlines after the Company submitted its updated 2019 IRP
analysis.Order No.34410.
On October 28,2019,the Company filed a letter stating it would need until
November 8,2019,before it could provide a new estimated filing date.
On November 8,2019,the Company filed a letter stating it would file its
supplemental IRP analysis no later than January 31,2020.
On January 31,2020,the Company filed its amended 2019 IRP.
THE IRP
The IRP is a biennial status report on the Company's plans to adequately and reliably
serve its customers over the next twenty years through a least-cost least-risk resource mix.The
DECISION MEMORANDUM I
IRP assesses resource options across a range of futures with varying forecasts for economic,
market,and regulatory conditions.In the 2019 IRP,Idaho Power used AURORA,a long-term
capacity expansion software,to develop resource portfolios for 24 different futures based on
three natural gas forecasts and four possible carbon emission adders,which were modeled under
a future with the Boardman to Hemingway transmission line project ("B2H")coming online in
2026,and a future without B2H coming online.The Company then selected its preferred
portfolio based on a mix of identified attributes and developed an action plan through 2026.The
Company engaged in eight public meetings with the IRP advisory council,which includes
representatives from key stakeholders,while developing the 2019 IRP.
SUPPLEMENTAL IRP ANALYSIS
This is the first year the Company has used the long-term capacity expansion
modeling function of the AURORA software.In response to a Staff Production Request in IPC-
E-19-14,which was the Company's Application to approve a power purchase agreement for the
Jackpot Solar facility,the Company identified counterintuitivemodel results using the AURORA
software.See Order No.34515 at 4.Because the model was optimized to the Western
Electricity Coordinating Council ("WECC")territory,and not Idaho Power's service territory,
the resulting model runs were sub-optimal (not least cost)for Idaho Power's system.Id.This
concern had been raised by Staff at Integrated Resource Plan Advisory Council ("IRPAC")
meetings and in meetings with the Company.The counterintuitive results produced by the
model in IPC-E-19-14 indicated larger issues with the modeling used to develop the IRP.
To resolve these issues to the best of its ability,the Company "developed a hybrid
solution in which it utilized the computer-based WECC-optimized model to develop 24 initial
portfolios,then performed a manual process to modify a subset of the top-performing portfolios,
with the ultimate goal of improving upon the modeled results and arriving at a least-cost,least-
risk portfolio specific to Idaho Power."Idaho Power January 31,2020,Letter to the
Commission.The Company also updated model inputs related to the Jackpot Solar and Franklin
Solar facilities,costs associated with natural gas supply expansion,returned to the previous
method of utilizing an after-tax discount rate for net present value calculations,and included
projected third-party transmission revenues associated with B2H.Id.The Company held
additional IRPAC meetings to discuss its revised IRP.
DECISlON MEMORANDUM 2
STAFF RECOMMENDATION
The Commission already issued a Notice of Application in this matter.Order No.
34410.Idaho Conservation League and Idahydro already intervened.Order No.34401.Staff
recommends the Commission issue a Notice of Amended Integrated Resource Plan and Notice of
Intervention Deadline.Staff recommends the Notice indicate that parties who have already
intervened do not need to re-petition for intervention.Staff recommends a 14-day intervention
period,after which the parties will confer and submit a proposed procedure and schedule to the
Commission.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Amended Integrated Resource Plan
and a Notice of Intervention Deadline,and set a 14-day intervention period?
Edward J.J ukll
Deputy Attorney General
licgal\ELECTRIC\[PC-E-19-19\[PCE1919 dec memo 2_ej
DECISION MEMORANDUM 3