20220204Notice_of_Application_Order_No_35314.pdf

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35314 1

Office of the Secretary
Service Date
February 4, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On December 3, 2021, Idaho Power Company (“Company”) applied for authority to
proceed “with procurement of capacity resources needed to provide adequate, reliable, and fair-
priced service. Application at 1. The Company seeks an order: (1) eliminating the Commission’s
requirement for the Company to comply with Oregon Public Utility Commission (“OPUC”)
resource procurement rules in favor of a more expeditious—but still competitive—process; (2)
authorizing it to move forward with resource procurements for recently identified generating
resource needs in years 2023, 2024, and 2025; (3) affirming its support of vertically integrated
utilities in Idaho maintaining ownership of the necessary generation, transmission, and distribution
utility functions. Id. at 34.
The Industrial Customers of Idaho Power (“ICIP”), Idaho Conservation League
(“ICL”), and Idaho Hydroelectric Power Producers Trust (“IdaHydro”), and Northwest and
Intermountain Power Producers Coalition (“NIPPC”) petitioned to intervene, and the Commission
granted their intervention. Order Nos. 35278 and 35299.
On December 10, 2021, IdaHydro filed a motion to dismiss. On December 15, 2021,
ICIP filed a motion to dismiss. On December 22, 2021, ICL filed a motion to dismiss. The
Company filed answers to the motions.
At the Commission’s January 18, 2022, Decision Meeting, Staff presented a decision
memorandum describing the motions to dismiss filed by ICIP, ICL and IdaHydro and the
Company’s answers to each. The Commission discussed the motions and whether to grant or deny
any of the motions. The Commission decided to deny each motion and allow the case to continue.
The Commission now issues this Notice of Application and Notice of Intervention
Deadline establishing a deadline for interested persons to intervene in this case.
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION TO PROCEED
WITH RESOURCE PROCUREMENTS TO
MEET IDENTIFIED CAPACITY
DEFICIENCIES IN 2023, 2024, AND 2025 TO
ENSURE ADEQUATE, RELIABLE, AND
FAIR-PRICED SERVICE TO ITS
CUSTOMERS

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CASE NO. IPC-E-21-41

NOTICE OF APPLICATION

NOTICE OF INTERVENTION
DEADLINE

ORDER NO. 35314

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35314 2

BACKGROUND
In 2010, the Commission initiated Case No. IPC-E-10-03 seeking to establish
competitive bidding guidelines for the Request For Proposals (“RFP”) process used to acquire
supply-side resources by the Company. In 2013, the Commission closed Case No. IPC-E-10-03
without establishing Idaho-specific resource procurement guidelines but directed the Company to
follow the resource procurement guidelines applicable in its Oregon service area. See Order No.
32745. The OPUC Resource Procurement Rules impose competitive bidding requirements upon
an electric utility for the “acquisition of a resource or a contract for more than an aggregate of 80
megawatts and five years in length,” among other requirements. OAR 860-089-0100(1)(a). There
are certain exceptions to the applicability of the OPUC Resource Procurement Rules.
While preparing the 2021 IRP, an updated Load and Resource (“L&R”) balance
analysis identified a first capacity deficit of 78 megawatts (“MW”) in June of 2023, growing each
year through 2026, when the Boardman to Hemingway (“B2H”) transmission line is expected to
be operational. The Company’s projected capacity deficits in the 2021 IRP have grown to 101 MW
in 2023, 186 MW in 2024, and 311 MW in 2025.1
The Company’s updated L&R balance that identified the projected capacity deficit
includes modifications to existing resource availability. First, the Company identified changes to
its market purchase assumptions due to third party transmission constraints.2 Additionally, the
existing resource availability was revised to include updated thermal capacity and reduced demand
response (“DR”) capacity determined through the refinement of the planning margin calculation.

1 These estimates reflect the Company’s best available information at the time of filing this Application. The Company
had previously contracted with Jackpot Solar, LLC (“Jackpot Solar”) for 120 MW of solar generation to become
commercially operational by December 2022. The energy contract with Jackpot Solar was reviewed and approved by
the Commission. See Order No. 34515. On November 9, 2021, Jackpot Solar informed the Company that that global
supply chain disruptions have raised concerns regarding Jackpot Solar’s ability to achieve commercial operation by
the dates identified in the approved agreement. If the Jackpot Solar project is delayed beyond summer 2023, or not
built, the Company indicates it will need approximately 40 MW of incremental peak capacity to meet projected
customer demands.
2 The net change between the Second Amended 2019 IRP and the updated L&R balance is a reduction of over 500
MW in available capacity each July during the 2022 through 2025 period. In response to the 2020 energy emergency
event in California, third-party marketing firms began reserving unprecedented amounts of firm transmission capacity
just outside the Company’s border, significantly limiting the Company’s access to market hubs. The Company tested
the transmission market availability with an RFP issued in spring 2021—validated the existence of transmission
system constraints. The RFP requested a market purchase with delivery at the Company’s border; however, no bids
were received at any price-point. As a result of these recent and market changes, for the years 2023 through 2025, the
Company reduced the transmission availability within its L&R balance from approximately 900 MW in the 2019 IRP
to approximately 700 MW in the 2021 IRP during the peak load month of July.

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35314 3

The Company has been resource-sufficient since the addition of the Langley Gulch
natural gas-fired power plant about a decade ago but has moved from an expected resource-
sufficient position through 2028, to a near-term capacity deficiency starting in summer 2023, since
the acknowledgement of the 2019 Second Amended IRP in March 2021.
THE APPLICATION
YOU ARE HEREBY NOTIFIED that the Company is currently conducting a RFP
seeking to acquire up to 80 megawatts (“MW”) of Company-owned generation resources to meet
the June 2023 capacity deficit. The Company is also investigating different configurations of
Company-owned and constructed battery storage systems, modifications to its existing DR
programs, and pursuing other short-term market solutions in attempts to meet the forecasted
capacity deficits. While the 80 MW RFP is not subject to the OPUC Resource Procurement Rules
due to the size-based exception, additional capacity deficits recently identified in the updated L&R
balance 2023, 2024, and 2025 will require incremental generating capacity exceeding the 80 MW
applicability threshold for the OPUC Resource Procurement Rules.
YOU ARE FURTHER NOTIFIED the Company requests to be relieved from the
requirements of Order No. 32745 that directed the Company to follow the OPUC Resource
Procurement Rules. The Company cites the lack of time to both comply with the OPUC Resource
Procurement Rules and address the near-term resource needs. The Company estimates it could
take a minimum of 18 months to arrive at a short list of bidders under the OPUC Resource
Procurement Rules.3
YOU ARE FURTHER NOTIFIED that the Company seeks authority to proceed with
supply-side resource procurements designed to meet the identified capacity deficits in 2023, 2024,
and 2025. The Company will conduct an RFP to obtain competitive pricing and identify the best
resource to ensure adequate, reliable, and fair-priced service to its customers, and will then bring
that resource to the Commission for determination as to whether acquisition of that resource is
consistent with the public convenience and necessity under applicable standards of Idaho Code §
61-526.

3 Concurrent with this Application, the Company filed a request with the OPUC to waive the applicability of the
OPUC Resource Procurement Rules to the Company in its Oregon jurisdiction for the required resource acquisitions
discussed herein for 2023, 2024, and 2025. Attachment 1 describes the timeline required for the unaltered OPUC
competitive bidding requirements.

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35314 4

YOU ARE FURTHER NOTIFIED that the Company “asks the Commission to
recognize and uphold the long-standing and successful regulatory policy of this state . . .
acknowledging the required protection of both the utility and customers . . . and setting forth
regulatory policy acknowledging the customer benefits of utility ownership of supply-side capacity
resources under the regulated utility business model.” Application at 32. The Company cites
several factors that are challenging the traditional utility model, including “non-utility ownership
of generation assets, promoted by mechanisms such as [the Public Utilities Regulatory Policies
Act], disproportionate tax incentives and practices, and state-mandated resource procurement rules
designed to advantage non-utility generation that act to erode the financial viability of vertically
integrated utilities.” Id. at 31-32.
YOU ARE FURTHER NOTIFIED that the Application and attachments are available
for public inspection during regular business hours at the Commission’s office. These documents
are also available on the Commission’s website at www.puc.idaho.gov. Click on the “ELECTRIC”
icon, select “Open Cases,” and locate and click on the case number as shown on the front of this
document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons who wish to intervene in this matter
to obtain the rights of party (e.g., to file formal discovery, or present evidence, or cross-examine
witnesses at a hearing) must file a Petition to Intervene with the Commission under the
Commission’s Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and .073. Persons who wish
to intervene as a party must file a Petition to Intervene no later than 14 days from the service
date of this Order. Such persons shall also provide the Commission Secretary with their e-mail
address to facilitate further communications. After the intervention deadline runs, the Commission
Secretary shall issue a Notice of Parties that identifies the parties and assigns exhibit numbers to
each party. Once the Notice of Parties has issued, Commission Staff shall informally confer with

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35314 5

the Company and any intervening parties about how to further process this case and shall then
report back to the Commission on a proposed case schedule.
YOU ARE FURTHER NOTIFIED that persons who would like to present their views
without parties’ rights of participation and cross-examination are not required to intervene but may
present their views by submitting written comments to the Commission.
YOU ARE FURTHER NOTIFIED that the following people are designated as the
Company’s representatives in this matter:
Donovan Walker
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
[e-mail]
[e-mail]
Tim Tatum
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
[e-mail]

ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene no later than 14 days from the service date of this Order. Once the deadline
has passed, the Commission Secretary shall prepare and issue a Notice of Parties.
IT IS FURTHER ORDERED that, after the Notice of Parties has issued, Commission
Staff shall confer with the parties regarding a procedural schedule for this matter.
IT IS FURTHER ORDERED that the motions to dismiss filed by ICIP, ICL, and
IdaHydro are denied.
IT IS FURTHER ORDERED that parties continue to comply with Order No. 35058,
issued June 3, 2021. All pleadings should be filed with the Commission electronically and shall be
deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
///

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35314 6

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 4th day
of February 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND, JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-21-41\orders\IPCE2141_Ntc App Int_dh.docx