20211222Application.pdf

DONOVAN WALKER
Lead Counsel
[e-mail]
December 22, 2021
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-21-42
In the Matter of the Application of Idaho Power Company’s Application for
Approval of Special Contract and Tariff Schedule 33 to Provide Electric
Service to Brisbie, LLC’s Data Center Facility
Dear Ms. Noriyuki:
Attached for electronic filing, please find Idaho Power Company’s Application for
Approval of Special Contract and the redacted version of Tariff Schedule 33 to Provide
Electric Service to Brisbie, LLC’s Data Center Facility in the above matter.
Also please find attached a protective agreement, the redacted version of the Direct
Testimony of Timothy E. Tatum, and the redacted version of the Direct Testimony of Pawel
P. Goralski, filed in support of the Application. The unredacted documents will be
transmitted separately via encrypted email.
Word versions of the testimonies will also be sent in a separate email for the
convenience of the Reporter.
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
2021 DEC 22 PM 4:59
IDAHO PUBLIC
UTILITIES COMMISSION
APPLICATION - 1
DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]

Attorney for Idaho Power Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OF SPECIAL CONTRACT AND
TARIFF SCHEDULE 33 TO PROVIDE
ELECTRIC SERVICE TO BRISBIE, LLC’S
DATA CENTER FACILITY.
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CASE NO. IPC-E-21-42

APPLICATION

Idaho Power Company (“Idaho Power” or “Company”), in accordance with RP 52
and Idaho Code §§ 61-502 and 61-503, hereby requests that the Idaho Public Utilities
Commission (“Commission”) issue an order approving the Special Contract for electric
service between Idaho Power and Brisbie LLC (“Brisbie”) for Brisbie’s new enterprise data
center, and rates proposed in tariff Schedule 33, included as Attachment 1 to this
Application. Idaho Power’s Application is based on the following:
I. BACKGROUND
1. The Commission has broad authority to regulate and fix the rates and
charges assessed by Idaho Power. Idaho Code §§ 61-502, 61-503. Large Power Service
customers that receive service in excess of 20,000 kW are required to make special
APPLICATION - 2
contract arrangements with the Company. Idaho Power’s Schedule 19.1 Large Power
Service customers between 10,000 kw and 20,000 kW may optionally take service under
a special contract. Id. For rate setting purposes, “each special contract customer is
considered a separate class with different conditions and contract terms affecting their
rates…” Order No. 33038 at 11. Differentiation between classes of customers is
permissible when it is based on cost of service, quantity of electricity used, differences in
conditions of service, or the time, nature, and pattern of the customers’ use.2
2. Brisbie is a Large Power Service customer that will exceed electric service
at a single facility of 20,000 kW, and thus Idaho Power and Brisbie have negotiated a
Special Contract for the provision of electric service to Brisbie by Idaho Power. The
Special Contract between Brisbie and Idaho Power is also referred to herein and in
testimony as the Energy Services Agreement (“ESA”). The ESA is provided as
Confidential Exhibit No. 1 to the Direct Testimony of Timothy E. Tatum (“Tatum Direct”)
filed contemporaneously with this Application and incorporated herein by this reference.
3. Brisbie, in addition to its large load service requirements in excess of 20
MW, has a sustainability objective to support 100 percent of its operations with new
renewable resources. Accomplishing this renewables target based on Brisbie’s expected
load will require new renewable resources to be added to Idaho Power’s system. Brisbie’s
Special Contract encompasses the pricing associated with retail electric service from
Idaho Power, cost and credit components associated with new renewable resources to

1 See I.P.U.C. No. 29, Tariff No. 101, Schedule 19.

2 Building Contractors Association of Southwestern Idaho, Inc. v. Idaho Public Utilities Comm’n,
128 Idaho 534, 539, 916 P.2d 1259, 1264 (1996); Agricultural Products Corp. v. Utah Power & Light Co.,
98 Idaho 23, 557 P.2d 617 (1976); and Idaho State Homebuilders v. Washington Water Power, 107 Idaho
415, 420, 690 P.2d 350, 355 (1984).

APPLICATION - 3
support Brisbie’s load, and terms and conditions governing the structure of this new
arrangement, including provisions that will hold other Idaho Power customers harmless.
4. The Brisbie Special Contract is consistent with and mirrors the regulatory
framework set forth in the Clean Energy Your Way - Construction offering, as outlined in
Idaho Power’s recent Application with the Commission (Case No. IPC-E-21-40) to
establish new clean energy offerings for customers under the Clean Energy Your Way
Program. In that Application, Idaho Power states its belief that it can work with existing
or future Special Contract customers to integrate renewables into their service agreement
with the Company. To that end, the Brisbie Special Contract is the first representation of
the Clean Energy Your Way – Construction offering. Under the Clean Energy Your Way
– Construction offering, Idaho Power will work with customers to develop a Renewable
Construction Agreement — the document that governs all pricing for Company electric
service and the customer’s accompanying renewables. For Brisbie, the Renewable
Construction Agreement doubles as the customer’s Special Contract, or ESA.
5. In addition to the ESA and tariff schedule 33, Idaho Power respectfully
requests explicit approval of several specific components of a regulatory framework
designed to implement and administer Brisbie’s Special Contract with its accompanying
renewables: (1) authority to procure renewable resources for the purpose of supporting
Brisbie’s energy use under a standard procurement agreement, (2) the cost basis and
pricing structure for the supply of retail electric service by Idaho Power, (3) the
compensation structure for excess renewable energy generation and capacity
contribution of the renewable resources, (4) authorization to treat bill credits provided to
Brisbie under the proposed compensation structure as prudently incurred expenses for
ratemaking purposes, and (5) the cost recovery mechanisms necessary to protect
APPLICATION - 4
existing Idaho Power customers from unreasonable cost shifting and ensure Idaho Power
has an opportunity to recovery its cost of service.
6. Accompanying this Application is the Direct Testimony of Timothy E. Tatum,
which provides an overview of the ESA and a description of the renewable resource
arrangements under the ESA to support Brisbie’s energy and renewables requirements.
Also accompanying this Application, and incorporated herein by this reference, is the
Direct Testimony of Pawel P. Goralski, (“Goralski Direct”), which details the pricing
structure of the ESA and the no-harm analysis conducted to demonstrate that the Brisbie
special contract does not negatively impact Idaho Power’s other retail customers.
II. SPECIAL CONTRACT TERMS AND PROVISIONS
7. ESA Overview. The Brisbie ESA is provided as Confidential Exhibit No. 1
to Tatum’s Direct Testimony. The ESA becomes effective on the date of the order issued
in this case. It includes a contract demand schedule that allows Brisbie to ramp load
service up to its maximum size and provides for a two-block rate structure that
incorporates cost-based pricing for a 20 MW block of power based upon Schedule 19
base rates and then pricing as described in Goralski Direct, p 5-8 for capacity amounts
above 20 MW. Under the proposed Special Contact, Idaho Power would procure enough
renewable resources to provide Brisbie with 100 percent renewable support on an annual
basis for Brisbie’s facility. See, Tatum Direct, p 7-8. Brisbie is in turn required to pay
Idaho Power the costs associated with these resources. Because Brisbie will pay the
costs associated with new renewable resources under the ESA, and provide security as
described in Tatum Direct, p 10-11, Idaho Power requests authority to procure the
necessary resources contemplated within the ESA without seeking Commission approval
of each such procurement. Further, Idaho Power requests assurance from the
APPLICATION - 5
Commission that each such resource procurement would receive the same ratemaking
treatment outlined in this case, unless otherwise modified in a subsequent proceeding.
Tatum Direct, p 16. A draft power purchase agreement (“PPA”) for procurement of
renewable energy on behalf of Brisbie is attached as an exhibit to the ESA and
incorporated herein by this reference.
8. Transmission and Interconnection Facilities. Cost recovery for the initial
construction for transmission facilities needed to serve Brisbie’s load is provided for in a
separate Construction Agreement, provided as Confidential Exhibit No. 2 to Tatum’s
Direct Testimony, and incorporated herein by this reference. Consistent with other
transmission-level service customers, Idaho Power will retain ownership of the
transmission interconnection station and the responsibility for ongoing operating and
maintenance costs up to the point of delivery at 230 kilovolts (“kV”), while Brisbie will
retain ownership of all facilities downstream from the point of delivery and will be
responsible for ongoing operating and maintenance of those facilities. Payment for these
facilities is discussed in Tatum Direct, p 8-9, as well as Confidential Exhibit No. 2.
9. Renewables Construct. Given Brisbie’s commitment to support 100 percent
of its operations with renewable energy on an annual basis, and its large load size, to
accomplish this commitment necessitates a tailored arrangement that provides the right
amount of renewable generation while also ensuring reliable electric service to the
customer. As an enterprise data center, Brisbie’s energy will remain high and consistent
throughout the day. In contrast, renewable resources are intermittent (e.g., solar only
generates electricity during daylight hours). To reconcile this mismatch of energy service
requirements and renewable generation but still achieve Brisbie’s renewables objective,
the renewable resources for Brisbie must be appropriately sized to ensure that the total
APPLICATION - 6
renewable generation output over the year matches or slightly exceeds Brisbie’s annual
energy consumption. The renewable resources will not serve Brisbie directly but will be
procured on the customer’s behalf by Idaho Power and connected directly to the
Company’s transmission system. Brisbie will pay for the costs associated with the
renewables required to support their load and will also be credited for the value those
resources bring to Idaho Power’s system. To this end, Brisbie’s associated renewable
resources are incorporated into the base planning analysis of the 2021 IRP (presumed to
be solar resources for purposes of this analysis). See Tatum Direct, p 12-13. Inclusion
of the renewables in the IRP modeling allows them to be treated as system resources for
modeling purposes and enables Idaho Power to quantify their value to the Company and
its broader customer base.
10. Pricing and Billing. Pricing and billing are discussed in detail throughout
Goralski’s Direct, but, at a high level, rather than simply being charged for retail electric
service under its Special Contract, Brisbie will be charged for the services it requires from
Idaho Power, pay for the costs of the new renewable resources, and be credited for any
system benefits derived from those resources. This treatment is fully consistent with the
structure outlined in the Clean Energy Your Way - Construction offering in Idaho Power’s
Case No. IPC-E-21-40. See, Tatum Direct, p 14-15. Goralski’s Direct details Brisbie’s
load ramp forecast and pricing structure. Goralski Direct, p 5-10. The results from the
calculations described in Goralski’s Direct are reasonable, consistent with previous cost-
of-service determinations, and in the public interest. Further, the use of the 2011 general
rate case cost-of-service study as the basis for this analysis is in alignment with the
APPLICATION - 7
Commission's direction provided in Case No. IPC-E-13-23.3 The intent of this rate-setting
methodology was to develop the customer-specific cost of providing electrical service to
the new Brisbie facility utilizing the most current cost-of-service information available.
11. No-Harm Financial Analysis. Confidential Exhibit No. 3 provided with the
Direct Testimony of Pawel P. Goralski details the present value revenue requirement
analysis demonstrating the Brisbie ESA will not financially harm other retail customers.
Idaho Power completed a present-value revenue requirement analysis for two portfolios
and evaluated the difference in cost as compared to revenues collected through Brisbie’s
pricing framework to ensure any unreasonable cost shift to existing Idaho Power
customers does not occur. Goralski Direct, p 21-25. This “no-harm” analysis
demonstrates that over 10-year and 20-year periods all other Idaho Power retail
customers not only are not harmed but benefit with the proposed Brisbie pricing
framework. Goralski Direct, p 24.
III. MODIFIED PROCEDURE
12. Idaho Power believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under
Modified Procedure; i.e., by written submissions rather than by hearing. RP 201, et seq.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
13. Communications and service of pleadings with reference to this
Application should be sent to the following:
Donovan E. Walker Tim Tatum
Regulatory Dockets Idaho Power Company
Idaho Power Company 1221 West Idaho Street (83702)
1221 West Idaho Street (83702) P.O. Box 70

3 Case No. IPC-E-13-23, Order No. 33038 at 12 (May 19, 2014), “. . . we find that a rate utilizing
cost-of-service as a starting point for negotiation is consistent with prior Commission Orders and is fair, just
and reasonable.”
APPLICATION - 8
P.O. Box 70 Boise, Idaho 83707
Boise, Idaho 83707 [e-mail]
[e-mail]
[e-mail]

V. CONCLUSION
14. Approval of the ESA between Brisbie and the Company is in the public
interest. Idaho Power and Brisbie have worked together to develop a retail rate structure
that addresses the renewable energy requirements of Brisbie and reflects current energy
economic realities (i.e., the marginal cost of energy is expected to increase over time).
The ESA incorporates these goals in an equitable way that works for both the new
customer, for the system, and for existing customers. The rates developed for Brisbie are
cost-based and avoid unreasonable shifting of costs to existing Idaho Power customers.
The compensation components were developed to properly assign costs and benefits to
Brisbie and other retail customers. The overall structure is consistent with the Clean
Energy Your Way - Construction offering. The rates are just, reasonable, consistent with
past cost-of-service determinations, and in the public interest.
THEREFORE, Idaho Power respectfully requests that the Commission issue its
Order: (1) approving the Special Contract (ESA) between Idaho Power and Brisbie; (2)
approving the rates and charges set out in Schedule 33; and (3) approving the regulatory
framework for the ongoing implementation and administration of the Special Contract
without change or condition.
Respectfully submitted this 22nd day of December 2021.

DONOVAN E. WALKER
Attorney for Idaho Power Company

BEFORE THE

IDAHO PUBLIC UTILITIES COMMISSION

CASE NO. IPC-E-21-42

IDAHO POWER COMPANY

ATTACHMENT 1

TARIFF SCHEDULE 33

Idaho Power Company

I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 33-1
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – 1221 West Idaho Street, Boise, Idaho

SCHEDULE 33
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
BRISBIE, LLC.

SPECIAL CONTRACT DATED DECEMBER 22, 2021

POWER FACTOR ADJUSTMENT

Where the Customer’s Power Factor is less than 95 percent, as determined by measurement
under actual load conditions, the Company may adjust the kW measured to determine the Billing Demand
by multiplying the measured kW by 95 percent and dividing by the actual Power Factor.

BLOCK 1

BASIC LOAD CAPACITY

The Basic Load Capacity is the average of the two greatest monthly Billing Demands established
during the 12-month period which includes and ends with the current Billing Period, but not less than
1,000 kW for Large Power Service.

BILLING DEMAND

The Billing Demand is the average kW supplied during the 15-consecutive-minute period of
maximum use during the Billing Period, adjusted for Power Factor.

ON-PEAK BILLING DEMAND

The On-Peak Billing Demand is the average kW supplied during the 15-minute period of maximum
use during the Billing Period for the On-Peak time period.

TIME PERIODS

The time periods are defined as follows. All times are stated in Mountain Time.

Summer Season
On-Peak: 1:00 p.m. to 9:00 p.m. Monday through Friday, except holidays
Mid-Peak: 7:00 a.m. to 1:00 p.m. and 9:00 p.m. to 11:00 p.m. Monday through Friday,
except holidays, and 7:00 a.m. to 11:00 p.m. Saturday and Sunday, except
holidays
Off-Peak: 11:00 p.m. to 7:00 a.m. Monday through Sunday and all hours on holidays

Non-summer Season
Mid-Peak: 7:00 a.m. to 11:00 p.m. Monday through Saturday, except holidays
Off-Peak: 11:00 p.m. to 7:00 a.m. Monday through Saturday and all hours on Sunday
and holidays
Idaho Power Company

I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 33-2
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – 1221 West Idaho Street, Boise, Idaho

SCHEDULE 33
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
BRISBIE, LLC.
(Continued)

TIME PERIODS (Continued)

The holidays observed by the Company are New Year’s Day, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day, and Christmas Day. When New Year’s Day, Independence Day, or
Christmas Day falls on a Sunday, the Monday immediately following that Sunday will be considered a
holiday.

SUMMER AND NON-SUMMER SEASONS

The summer season begins on June 1 of each year and ends on August 31 of each year. The
non-summer season begins on September 1 of each year and ends on May 31 of each year.

MONTHLY CHARGE

The Monthly Charge is the sum of the following charges, and may also include charges as set
forth in Schedule 55 (Power Cost Adjustment), Schedule 91 (Energy Efficiency Rider), and Schedule 95
(Adjustment for Municipal Franchise Fees).

Summer Non-summer

Service Charge, per month $299.00 $299.00

Basic Charge, per kW of
Basic Load Capacity $0.70 $0.70

Demand Charge, per kW of
Billing Demand $5.83 $4.33

On-Peak Demand Charge, per kW of
On-Peak Billing Demand $0.95 n/a

Energy Charge, per kWh
On-Peak 5.1530¢ n/a
Mid-Peak 4.1156¢ 3.8885¢
Off-Peak 3.6740¢ 3.4764¢

Embedded Energy Fixed Cost Rate, per kWh
On-Peak 2.3982¢ n/a
Mid-Peak 1.3608¢ 1.1337¢
Off-Peak 0.9192¢ 0.7216¢

Idaho Power Company

I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 33-3
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – 1221 West Idaho Street, Boise, Idaho

SCHEDULE 33
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
BRISBIE, LLC.
(Continued)

BLOCK 2

Capacity Contribution Factor

Excess Generation Price

Metered Output means, for each Project, the electrical output and capacity of the Project delivered to, or
generated by, Idaho Power by the applicable Renewable Resource.

Project means a new Renewable Resource or the independently metered portions thereof, the Project
Output of which is either: (1) purchased as a simultaneously bundled product by Idaho Power under a
Renewable Resource PPA; or (2) provided as a simultaneously bundled product by Idaho Power from an
Idaho Power owned resource.

Project Output means for each Project, the Metered Output and Environmental Attributes as a
simultaneously bundled product of that Project, either owned by Idaho Power or to be purchased by Idaho
Power in accordance with the Renewable Resource PPA.

Renewable Capacity Contribution

Renewable Capacity Credit

Renewable Capacity Credit Rate

Renewable Resource means an electric generating facility utilizing solar photovoltaic (PV), wind, energy
storage or other mutually-agreed technology or combination thereof from which Idaho Power either: (1)
purchases the bundled Metered Output and Environmental Attributes bundled under a Renewable
Resource PPA, and that will be newly constructed and made operational after the Renewable Resource
PPA execution date, or (2) provides the bundled Metered Output and Environmental Attributes from an
Idaho Power owned resource, that will be newly constructed and made operational for the purpose of
acquiring Project Output in connection with the Brisbie Special Contract.
Idaho Power Company
I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 33-4
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – 1221 West Idaho Street, Boise, Idaho
SCHEDULE 33
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
BRISBIE, LLC.
(Continued)
Renewable Resource PPA
Supplemental Energy Cost
Supplemental Energy
Supplemental Energy Price
Total Supply Obligation
MONTHLY CHARGE
The Monthly Charge is the sum of the following charges, and may also include charges as set forth in
Schedule 91 (Energy Efficiency Rider), and Schedule 95 (Adjustment for Municipal Franchise Fees).
Daily Excess Demand Charge
per each kW over the Contract Demand.
Excess Generation Credit
Monthly Contract Demand Charge
per kW of Contract Demand.
Monthly Billing Demand Charge
per kW of Billing Demand but not less than Minimum Monthly Billing Demand.
Minimum Monthly Billing Demand
The Minimum Monthly Billing Demand will be 20,000 kilowatts.
Renewable Capacity Credit
Renewable Resource Cost
Supplemental Energy Cost
Idaho Power Company

I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 33-5
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – 1221 West Idaho Street, Boise, Idaho

SCHEDULE 33
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
BRISBIE, LLC.
(Continued)

Renewable Resource Agreements

(a) (b) (c) (d) (e)