Idaho Power's Peaker Portfolio Resources in Nearby Station

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Idaho Power's Peaker Portfolio Resources in Nearby Station MRG McDOWELL RACl<NER Gl BSON PC LISA F. RACKNER Direct (503) 595-3925 [email protected] January 31, 2020 VIA ELECTRONIC FILING Public Utility Commission of Oregon Filing Center P.O. Box 1088 201 High Street SE, Suite 100 Salem, Oregon 97301 Re: Docket No. LC 74 2019 Integrated Resource Plan ("IRP") Amended 2019 Integrated Resource Plan and Appendices C and D Attention Filing Center: On July 19, 2019, Idaho Power Company ("Idaho Power" or "Company") filed a letter with the Idaho Public Utilities Commission ("Commission") providing notice that the Company had identified the need to perform supplemental analysis to confirm the accuracy of its 2019 IRP's conclusions and findings. The Commission subsequently issued a Notice of Application in Order No. 34410 suspending review of the filing until the supplemental analysis was filed. Having now completed the supplemental analysis, Idaho Power is submitting for filing twenty (20) copies of Idaho Power Company's Amended 2019 IRP and Appendices C and D. As described in greater detail in the Amended 2019 IRP, the Company identified eight modifications to its modeling inputs to ensure more accurate modeling results including: 1) the addition of renewable energy certificate values for Jackpot Solar, 2) updating transmission interconnection costs for Jackpot Solar, 3) removing Franklin Solar from the list of available resources, 4) correcting the online date for Jackpot Solar, 5) allowing the model to correct the peak credit for new solar if Jackpot Solar is not selected, 6) introducing costs associated with natural gas supply expansion, Filing Center Public Utility Commission of Oregon January 31, 2020 Page 2 of 2 7) returning to the previous method of utilizing an after-tax discount rate for net present value calculations, and 8) including third-party transmission revenues associated with the Boardman-to­ Hemingway transmission line. In addition to these input modifications, the Company also implemented an additional modeling step to ensure that the capacity expansion model-which optimizes resource buildouts for the entire Western Electricity Coordinating Council ("WECC") region­ yielded the best possible economic and reliability outcome for Idaho Power and its customers. To accomplish this, Idaho Power developed a hybrid solution in which it utilized the computer-based WECC-optimized model to develop 24 initial portfolios, then performed a manual process to modify a subset of the top-performing portfolios, with the ultimate goal of improving upon the modeled results and arriving at a least-cost, least-risk portfolio specific to Idaho Power. While there were multiple changes to the analysis, it resulted in only two changes impacting the Company's preferred portfolio near-term 2019-2026 Action Plan. First, the Company elected to forego the option to enter into a power purchase agreement with the 100 megawatt ("MW") Franklin Solar facility. Because this resource is no longer an option, it was removed from the modeling and the subsequent preferred portfolio. Second, the Preferred Portfolio in the Company's filed IRP included the addition of 5 MW of demand response in 2026; in the Amended 2019 IRP, the procurement of demand response shifted later in the planning period, to 2031. Also, the Company updated Amended 2019 IRP and Appendices C and D to reflect certain events and data through year-end 2019. Idaho Power respectfully requests the Commission issue a scheduling order to facilitate public review of the filing. Please contact me at (208) 388-5825 if you have any questions. Lisa F. Rackner Attachments INTEGRATED RESOURCE PLAN 2019 AMENDED • JANUARY • 2020 BALANCING OUR ENERGY NEEDS • TODAY AND TOMORROW SAFE HARBOR STATEMENT This document may contain forward-looking statements, and it is important to note that the future results could differ materially from those discussed. A full discussion of the factors that could cause future results to differ materially can be found in Idaho Power’s filings with the Securities and Exchange Commission. Printed on recycled paper Idaho Power Company Table of Contents TABLE OF CONTENTS Table of Contents ............................................................................................................................. i List of Tables ...................................................................................................................................v List of Figures ............................................................................................................................... vii List of Appendices ....................................................................................................................... viii Glossary of Acronyms ................................................................................................................... ix Amended 2019 IRP Executive Summary ........................................................................................1 Introduction and Background ....................................................................................................1 Cause for Filing Suspension ......................................................................................................1 LTCE Modeling Review ............................................................................................................2 Modeling Input Review .............................................................................................................2 1. REC Values for Jackpot Solar ......................................................................................3 2. Transmission Interconnection Costs for Jackpot Solar ................................................3 3. Removal of Franklin Solar............................................................................................3 4. Corrected Online Date for Jackpot Solar ......................................................................4 5. Peak Capacity Credit for Solar Resources ....................................................................4 6. B2H Transmission Revenue Credits .............................................................................4 7. Discount Rate Modification ..........................................................................................4 8. Natural Gas Pipeline and Capacity Considerations ......................................................5 Impact to Preferred Portfolio .....................................................................................................5 Conclusion .................................................................................................................................6 1. Overview ....................................................................................................................................7 Introduction ................................................................................................................................7 Public Advisory Process ............................................................................................................8 IRP Methodology .......................................................................................................................8 Greenhouse Gas Emissions ......................................................................................................10 CO2 Emissions Reduction ..................................................................................................11 Idaho Power Clean Energy Goal— Clean Today. Cleaner Tomorrow.™ ................................11 Portfolio Analysis Summary ....................................................................................................12 Action Plan (2019–2026) .........................................................................................................14 2. Political, Regulatory, and Operational Issues ..........................................................................16 Idaho Strategic Energy Alliance ..............................................................................................16 Amended 2019 IRP Page i Table of Contents Idaho Power Company Idaho Energy Landscape ..........................................................................................................16 State of Oregon 2018 Biennial Energy Report ........................................................................17 FERC Relicensing ....................................................................................................................18 Idaho Water Issues ...................................................................................................................19 Variable Energy Resource Integration .....................................................................................21 Community Solar Pilot Program ..............................................................................................23 Idaho ..................................................................................................................................23 Oregon................................................................................................................................24 Renewable Energy Certificates ................................................................................................24 Renewable Portfolio Standard .................................................................................................25 Carbon Adder/Clean Power Plan .............................................................................................26
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