20211122Second Supplement to Application-Redacted.pdf

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An IDAcORP Comfirny
DONOVAN E. WALKER
Lead Counsel
[e-mail]
November 22,2021
VIA ELECTRONIC MAIL
Jan Noriyuki, Secretary
ldaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 2O1-A
Boise, ldaho 83714
Re: Case No. IPC-E-21-35
ldaho Power Company's Application to Update the Gas Forecast in the
lncremental Cost lntegrated Resource Plan Avoided Cost Model
Dear Ms. Noriyuki:
Attached forelectronicfiling is the Second Supplementto ldaho Power Company's
Annual Compliance Filing in the above entitled matter. lf you have any questions about
the attached documents, please do not hesitate to contact me.
Aftachment No. 1 to the Annual Compliance Filing is confidential. Please handle
the confidential information in accordance with the Protective Agreement to be executed
in this mafter.
Very truly yours,
2ilalle\
Donovan E. Walker
DEW:cld
Enclosures
DONOVAN E. WALKER (lSB No. 5921)
ldaho Power Company
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
dwalke r@idah opower.com
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IDAHO POWER COMPANY'S ANNUAL
COMPLIANCE FILING TO UPDATE THE
LOAD AND GAS FORECASTS IN THE
INCREMENTAL COST INTEGRATED
RESOURCE PLAN AVOIDED COST
MODEL.
CASE NO. |PC-E-21-35
SECOND SUPPLEMENT TO IDAHO
POWER COMPANY'S ANNUAL
COMPLIANCE FILING
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ldaho Power Company ("ldaho Powef) hereby respectfully submits to the ldaho
Public Utilities Commission ("Commission') this second supplement to its earlier filing in
this case. This supplemental filing corrects an error found in the natural gas forecast.
I. INTRODUCTION
ldaho Power filed its annual update to the load forecast and natural gas forecast
components of the lClRP, in compliance with Order Nos. 32697 and 32802, on October
15,2021. ldaho Power submitted a supplemental filing on November 5, 2021, to include
additional information that was inadvertently excluded in the initial filing. Now, through
the course of discovery, ldaho Power has discovered an error in the natural gas price
forecast that was submitted in the initial filing. The gas price forecast submifted on
SECOND SUPPLEMENTTO IDAHO POWER COMPANY'S
ANNUAL COMPLIANCE FILING . 1
October 15,2021, used real gas pricing rather than nominal pricing. ldaho Power now
submits this second supplemental filing to update both the description of the natural gas
price forecast in the body of the application and the natural gas price forecast information
in ConfidentialAttachment No. 1 to use the correct nominal pricing. Use of this corrected
forecast indicates an approximatety two percent decrease (as compared to a twenty
percent decrease) in the average annual natural gas forecast prices over the remaining
period in comparison to the version of the forecast published in March 2021 and approved
in Order No. 35158 for use in the ICIRP avoided cost model. The information in the next
section replaces Section lll: Natural Gas Price Forecast of the initial filing. The
information in the attached Confidential Attachment replaces Attachment No. 1 of the
initialfiling.
II. UPDATED NATURAL GAS PRICE FORECAST
Section lll: Natural Gas Price Forecast, of the initial filing dated October 15,2021, is
replaced with the following:
As of October 1 5, 2021 ,ldaho Power will update the natural gas price
forecast within the ICIRP avoided cost model to reflect the most recent
Henry Hub and Sumas Basis Annuals from S&P Global Platt's Long-term
Forecast, which was published in July 2021. The Commission approved
the use of this forecast in Order No. 35158 (Case No. IPC-E-21-15). Use
of this forecast indicates an approximately two percent decrease in the
average annua! natural gas forecast prices over the remaining period in
comparison to the version of the forecast published in March 2021 and
approved in Order No.35158 for use in the ICIRP avoided cost model.
SECOND SUPPLEMENT TO IDAHO POWER COMPANY'S
ANNUAL COMPLIANCE FILING - 2
Because the Platts forecast is subscription-based and proprietary, this
information has been included herewith as Confidential Attachment No. 1.
Confidential Attachment No. 1 contains Table 2 which is a comparison of
the yearly (2021-2040) natural gas forecast from the October 2020 update,
the Platts forecast approved in Order No. 35158, and the current 2021
updated gas forecast from Platts. Confidential Attachment No. 1 also
contains Graph 2, a graphical representation of the same numbers.
[. coNcLustoN
ldaho Power hereby respectfully submits this second supplementalfiling to correct
an error in the initial natural gas price forecast, and asks the Commission to accept the
same for filing.
Respectfully submitted this 22ndday November 2021.
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DONOVAN E. WALKER
Attorney for ldaho Power Company
SECOND SUPPLEMENT TO IDAHO POWER COMPANY'S
ANNUAL COMPLIANCE FILING - 3
CERTIFICATE OF SERVICE
! HEREBY CERTIFY that on this 22nd day of November 2021, ! served a true and
correct copy of the within and foregoing SECOND SUPPLEMENT TO IDAHO POWER
COMPANY'S ANNUAL COMPLIANCE FILING upon the following named parties by the
method indicated below, and addressed to the following:
Riley Newton
Deputy Attomey General
ldaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
_Hand Delivered
_U.S. Mail
_Overnight Mail_FAXX Email -riley.newton@puc
Christy Davenport, Legal Assistant
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPG-E-21-35
IDAHO POWER COMPANY
CON FIDENTIAL ATTACHMENT 1
TABLE 2
Natural Gas Forecast Pricino
October 2020
Year (nominal
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
May 2021
(nominal
October 2021
(nominal
$/MMBtu
GRAPH 2
Natural Gas Forecast Prici