20231012Final_Order_No_35958.pdf

ORDER NO. 35958 1

Office of the Secretary
Service Date
October 12, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On December 22, 2021, Idaho Power Company (“Company”) applied for approval of a
special contract for electric service between the Company and Brisbie, LLC (“Brisbie”) for
Brisbie’s new enterprise data center, for rates proposed in Tariff Schedule 33, and approval of the
regulatory framework for the on-going implementation and administration of the special contract.
On January 21, 2022, the Commission issued a Notice of Application and set a 14-day
intervention deadline. Order No. 35293.
On May 11, 2023, the Commission issued Final Order No. 35777 approving the
Company’s Energy Sales Agreement (“ESA”) for electric service between the Company and
Brisbie subject to several modifications.
On June 20, 2023, the Commission issued Order No. 35820 clarifying its intent in Order
No. 35777.
On August 9, 2023, the Company submitted its Compliance Filing (“Filing”) with
Commission ordered modifications including an amended ESA (“First Amendment”), revised
Schedule 33, and other updates.
On September 5, 2023, Staff presented a Decision Memorandum at the Commission’s
Decision Meeting indicating it had reviewed the Company’s Filing and recommended Commission
acceptance.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed the First Amendment and revised Schedule 33 included in the Company’s
Filing and determined that the modifications comply with Commission Order No. 35777. The
Company also made two changes to the First Amendment and Schedule 33 exceeding the scope
of the modifications required by Order No. 35777; however, Staff believed these were reasonable.
Finally, the Company stated, “[i]n conformity with the Commission’s directive, the Company will
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

ORDER NO. 35958
ORDER NO. 35958 2

file future renewable resource [power purchase agreements] or similar resource construction
agreements with the Commission for its review and approval.” Filing at 7.

Modifications to Pricing for Excess Generation Credits
The Commission ordered that the Excess Energy Generation (“EGC”) rate be valued at
“the lower of the Excess Energy Price (with the 85 percent adjustment) or the actual high or low
load hour Mid-C market price (without any adjustment) for each hour of excess energy delivered.”
Order No. 35777 at 17. 1 This rate is referred as the Excess Generation Price in the ESA and is the
rate used when multiplied by the amount of EGCs in a month to determine the EGC payment. The
method in this case is the same method approved in Case No. IPC-E-22-06. Staff verified that the
updated definition of the Excess Generation Price included in Revised Exhibit 3.1 complies with
the Commission’s Order and that the updated definition is appropriately referenced in revised
Schedule 33.

Modifications to Renewable Capacity Credits Pricing and Method of Payment
The Commission ordered that the method used to determine the pricing and payment of
Renewable Capacity Credits (“RCC”) in this case should utilize the same methods determined in
Order No. 35735. Staff determined that with appropriate differences in the data used between this
case and Case No. IPC-E-22-06 (Order No. 35735), the method used to determine the pricing and
method of RCC payments is similar, with one minor but legitimate exception. The main difference
between the RCC methods in this case versus those employed in Case No. IPC-E-22-06 is the
years used to determine the capacity critical hours that each of the two resources are expected to
contribute capacity to the Company’s system. The resource in this case does not come online until
2025, so only the capacity critical hours for 2025 were used. The resource in Case No. IPC-E-22-
06 comes online in 2023 and the payments are based on a combination of 2023 capacity critical
hours with some weight given to critical hours in 2025. Therefore, Staff believed that the method
used to determine the RCC pricing and method of payment complies with Commission Order No.
35777.

1 See also Order Nos. 35482 and 35607. The 85% adjustment compensates for the cost to wheel excess energy when
sold as surplus sales.
ORDER NO. 35958 3

Additional Modifications Not Required by the Commission Order No. 35777
First, the Company updated the language in Revised Exhibit 3.1 that defines the Monthly
Contract Payment to include how the Energy Efficiency Rider will be assessed. Staff determined
that the language was incorrect in the original ESA and the updated language in the Revised
Exhibit 3.1 is now consistent with Schedule 91.
Second, the Company included an Administration Charge negotiated between the Parties
to compensate the Company for non-recovery of 95%/5% customer sharing of EGCs and RCCs
included in net power supply expense, which is then trued-up in the Power Cost Adjustment
(“PCA”). However, the Company proposed that the Administration Charge not be included in 95/5
sharing. The Commission directed that EGC and capacity included in net power supply expense
were subject to sharing in the PCA.
Staff recommended that the Commission allow this charge because it was negotiated and
agreed upon between the Parties for the purpose of protecting the Company from non-recovery of
95/5 sharing. Additionally, Staff believed: (1) the charge will not impact other customers, and (2)
it is consistent with the Commission’s intent in Case No. IPC-E-22-06 where the Commission
stated, “Micron and the Company are free to negotiate for whatever rates they wish, and the
Commission will generally approve such rates provided they are fair, just, and reasonable to all
customers.” Order No. 35607 at 13.
COMMISSION DISCUSSION AND FINDINGS
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502 and -
503. The Commission is empowered to investigate rates, charges, rules, regulations, practices, and
contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and -503. The Commission may enter any final order consistent with its authority under
Title 61.
We have reviewed the record in this case and find the Company’s August 30, 2023, Filing
including an amended ESA, revised Schedule 33, and additional modifications is consistent with
the Commission’s directive in Order No. 35777.
ORDER
IT IS HEREBY ORDERED that the Company’s Compliance Filing including a revised
Schedule 33, amended ESA, and other adjustments is accepted, as filed.
ORDER NO. 35958 4

THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within 21 days of the service date of this Order. Within seven days after any person
has petitioned for reconsideration, any other person may cross-petition for reconsideration. See
Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 12th day of
October 2023.

________________________________________
ERIC ANDERSON, PRESIDENT

________________________________________
JOHN R. HAMMOND, JR., COMMISSIONER

________________________________________
EDWARD LODGE, COMMISSIONER
ATTEST:

___________________________________
Jan Noriyuki
Commission Secretary

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