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HomeMy WebLinkAbout20230310Notice_of_Application_Order_No_35701.pdfNOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 35701 1 Office of the Secretary Service Date March 10, 2023 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO ACQUIRE RESOURCES TO BE ONLINE BY 2024 AND FOR APPROVAL OF A POWER PURCHASE AGREEMENT WITH FRANKLIN SOLAR LLC ) ) ) ) ) ) ) ) ) CASE NO. IPC-E-23-05 NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 35701 On February 17, 2023, Idaho Power Company (“Company”) filed an application (“Application”) with the Idaho Public Utilities Commission (“Commission”) requesting an order: (1) granting the Company a Certificate of Public Convenience and Necessity (“CPCN”) to acquire 72 megawatts (“MW”) of dispatchable energy storage to meet an identified capacity deficiency in 2024; and (2) approving the 25-year Power Purchase Agreement (“PPA”) between Idaho Power and Franklin Solar LLC (“Franklin Solar”). NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company represents that to fill its 2024 capacity deficiency, the Company conducted solicitation through a Request for Proposals (“RFP”) process seeking to acquire energy and capacity to help meet the Company’s previously identified capacity needs of 85 MW to be online by June of 2024, and an incremental 115 MW in 2025. Application at 5. YOU ARE FURTHER NOTIFIED that the Company represents that the RFP process resulted in the selection of a 100 MW solar photovoltaic (“PV”) facility, an Idaho Power-owned 60 MW energy storage project, and an Idaho Power-owned 12 MW energy storage project. Id. YOU ARE FURTHER NOTIFIED that the Company represents that the 100 MW solar PV facility plus 60 MW energy storage project consists of a 25-year PPA for a 100 MW solar PV facility that supplies energy to the Company’s system combined with an Idaho Power-owned 60 MW battery storage facility. Id. at 6. YOU ARE FURTHER NOTIFIED that the Company represents that on January 20, 2023, Idaho Power and Franklin Solar entered into a PPA to construct, own, operate and maintain a 100 NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 35701 2 MW solar PV facility located in Twin Falls County, Idaho, supplying the output to the Company’s system for the period of 25 years from a commercial operation date of June 1, 2024. Id. YOU ARE FURTHER NOTIFIED that the Company represents that Concurrent with execution of the PPA, on January 20, 2023, the Company executed a Build Transfer Agreement with Duke Energy Renewables Solar, LLC (“Duke Energy Solar”), a subsidiary of Duke Energy Renewables, LLC, for the purchase of a Battery Energy Storage System (“BESS”), co-located with the Franklin Solar 100 MW solar PV facility in Twin Falls County, Idaho, providing for a minimum capacity of 60 MW. Id. at 9. YOU ARE FURTHER NOTIFIED that the Company represents that it can economically and efficiently add 12 MW of battery storage at the Hemingway substation, the site for which 80 MW of battery storage is being installed to meet the 2023 capacity deficiency, without requiring infrastructure upgrades and ensuring maximum Investment Tax Credits (“ITC”) benefits. The Company states that it intends on adding the 12 MW BESS to the contract executed with Powin Energy Corporation on February 28, 2022, the contract in place for the 2023 energy storage resources, through a change order. Or, in the alternative, use a different supplier the Company has available. Id. at 10. YOU ARE FURTHER NOTIFIED that the Company is not requesting binding ratemaking treatment in this case. The Company requests that the Commission find it has met the requirements of Idaho Code § 61-526, and for the Commission to issue an order granting a CPCN to acquire 72 MW of energy storage necessary to meet the identified capacity deficiency in 2024. Id. at 11-12. YOU ARE FURTHER NOTIFIED that the Company represents that it intends to finance the 72 MW of energy storage with a combination of available cash and operating cash flow, available facilities and borrowing and debt issuances, and potential future equity issuances by its parent entity, IDACORP. Id. at 14. YOU ARE FURTHER NOTIFIED that the Application and supporting documentation have been filed with the Commission and 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 click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over the Company, its filing, and the issues pertaining to this case pursuant to Title 61 of the Idaho Code. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 35701 3 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 desiring to intervene in this matter to obtain parties’ rights of participation must file a Petition to Intervene with the Commission pursuant to this Commission's Rules of Procedure 71-73, IDAPA 31.01.01.072-073. Persons who wish to intervene as a party must file a Petition to Intervene no later than 21 days after the date of service of this Order. Persons desiring to present their views without parties’ rights of participation do not have to intervene and may present their comments without prior notification to the Commission or the parties. YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice of Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit numbers to each party in this proceeding. YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, Commission Staff (“Staff”) will informally confer with the parties to discuss a schedule to process this case and other issues as may be raised by the parties. YOU ARE FURTHER NOTIFIED that the following persons are designated as the Company’s representatives in this matter: Donovan Walker Lead Counsel Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 dwalker@idahopower.com dockets@idahopower.com Tim Tatum Vice President, Regulatory Affairs Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 ttatum@idahopower.com ORDER IT IS HEREBY ORDERED that persons desiring to intervene in this case for the purpose of obtaining parties’ rights of participation must file a Petition to Intervene with the Commission, under Rules 71-73, IDAPA 31.01.01.071-073, no later than 21 days after the service date of this Order. IT IS FURTHER ORDERED that, after the Secretary issues a Notice of Parties, Staff will informally confer with the parties to discuss the appropriate scheduling of this case. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 35701 4 IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 10th day of March 2023. ERIC ANDERSON, PRESIDENT JOHN R. HAMMOND JR., COMMISSIONER _________________________________________ EDWARD LODGE, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\IPC-E-23-05 FranklinSolar\orders\IPCE2305_Ntc_App_Int_cb.docx