3-Request for Information.pdf

REQUEST FOR INFORMATION

Future Operation of the Intermountain Power Project Coal Units

This Request for Information (“RFI”) is issued in accordance with the State of Utah Procurement Code, Utah Code Annotated (“UCA”) Chapter 63G-6a, and applicable Rules found in the Utah Administrative Code (“UAC”). If any provision of this RFI conflicts with the UCA or UAC, the UCA or UAC will take precedence.

Background

Intermountain Power Agency (“IPA”) is an interlocal entity with 23 Utah municipal members. IPA owns the Intermountain Power Project (“IPP”) near Delta, Utah, which includes two coal-fired electrical generating units, consisting of the boilers, generators, and associated equipment necessary for receiving, processing, and combusting coal in the generation of electricity, each with a rated generating capacity of approximately 900 MW (the “Coal Units”). Since 2015, IPA has been engaged in a project to replace the Coal Units with two new combined-cycle combustion turbines fueled by natural gas and hydrogen (that project, “IPP Renewed”). Upon the completion of IPP Renewed in late 2025, IPA will deactivate the Coal Units and place them into long-term maintenance status pursuant to IPA’s publicly available layup plan (the “Coal Project Layup”).

The State of Utah’s energy policy prioritizes reliable and dispatchable energy resources, in recognition that “reliable access to energy is vital for human health, adaptation, economic growth, and prosperity.”

Utah Code Ann. § 79-6-301. In 2025, House Bill 70 (“HB 70”) created the Utah Energy Council (the “UEC”) to (among other things): (i) create and implement a strategic plan for a decommissioned asset (generally defined in HB 70 to be the Coal Units as owned and operated by the UEC), taking into consideration Utah’s energy policy, reliability of electrical generation and economic viability, (ii) establish policies and procedures for the management of a decommissioned asset, (iii) enter into and administer contracts necessary for management and operation of a decommissioned asset, (iv) acquire, hold and dispose of property related to a decommissioned asset, (v) select an operator for a decommissioned asset, and

(vi) enter into an agreement with IPA to provide for the transfer, disposition, and future operation of a decommissioned asset and ensure that such does not interfere with IPA’s ownership or operation of IPA’s electrical generation facilities powered by natural gas and/or hydrogen.

Pursuant to HB 70, the UEC desires to preserve the Coal Units for reactivation to serve growing energy demands in the State of Utah.

Procurement Unit

The UEC resides within the Office of Energy Development (“OED”). The OED is the issuing procurement unit and the conducting procurement unit for this RFI (referred to as “the State”). The reference number for this RFI is AS26-31. This reference number must be referred to on all submittals, correspondence, and documentation submitted to the State relating to this RFI.

Purpose of this RFI

The State is issuing this RFI to gather information and ideas about different commercial and technical arrangements that might be used to return one or both of the IPP Coal Units to active service following the Coal Project Layup (the “Coal Unit Project”).

This RFI is a request for information only. The State seeks to obtain information, comments, or suggestions from persons responding to this RFI (each a “Responder”). Any information obtained as a result of this RFI is intended to be used by the State on a non-attribution basis for planning and strategy development. The State will not reimburse costs incurred in responding to this RFI. Responders are advised that the State is under no obligation to acknowledge receipt of the information received or provide feedback to the Responders with respect to any information submitted under this RFI.

An RFI is not a procurement process and may not be used to enter into a contract. This RFI will not result in a contract award; a response to an RFI is not an offer and may not be accepted to form a binding contract. However, information obtained through this RFI may be used to shape a subsequent competitive solicitation for the types of items or services identified in this RFI.

Responses to this RFI are “protected records” under the Government Records Access and Management Act, Utah Code Ann. § 63G-2-101 et seq. (“GRAMA”). However, Responses will no longer be protected after the date on which the earlier of these two events occurs: (a) a contract directly relating to this RFI has been awarded and signed by all parties; or (b) a final determination is made not to enter into a contract that relates to the subject of the request for information, and at least two years have passed after the day on which this RFI was issued.

Additionally, Responders to the RFI may seek to classify certain information in their Responses as confidential business records and may submit a claim of business confidentiality under Utah Code Ann.

§ 63G-2-309. (However, the State recommends that Responders do not attempt to designate an entire Response as confidential.)

Neither this RFI nor any Response is an offer and none of the foregoing may be accepted to form a binding contract.

Access to Additional Information

The State has set up a virtual data room containing additional information regarding the Coal Units.

Responders will be provided access to the data room upon the execution of a Non-Disclosure Agreement (the “NDA”). Responders are not required to access the data room as a condition of submitting a response to this RFI, but all questions or requests for information will be referred to the data room.

Please contact Jayden Ellsworth at jellsworth@utah.gov to obtain a copy of the NDA and instructions for accessing the data room.

1. CONTENT OF RESPONSES

Responses should include the following parts:

A. Cover Letter and Executive Summary

Please provide a cover letter briefly describing the Responder’s organization and its interest in the Coal Unit Project. The cover letter should include a brief executive summary of the entire Response.

B. Responder Information

Please provide a brief description of the Responder’s history, financial situation and relevant experience. Responses should include:

(1) Responder’s business name, address, and phone number.

(2) Name and contact information for the principal personnel, including areas of responsibility.

C. Responder Criteria under H.B. 70

H.B. 70 requires future operators to meet the following criteria. Please describe whether your company meets these qualifications.

(a) at least 10 years of experience operating coal-fired electrical generation facilities;

(b) a commitment to maintaining substantial operations within the state;

(c) financial capability to operate and maintain the facility;

(d) experience with coal types and specifications similar to the coal types used at the IPP facilities;

(e) proven capability to comply with state and federal environmental requirements;

(f) existing relationships with other entities providing transmission in the region;

(g) ability to maintain reliable baseload power generation;

(h) experience with western coal markets and transportation;

(i) capability to retain the existing skilled workforce; and

(j) ability to integrate operations with existing transmission infrastructure.

D. Economic Issues

Please describe the economic impact of your vision for the Coal Unit Project and why your model would work best for Utah. For example, Responders could include an estimate of the number of jobs that will be created, economics benefits to the surrounding community, industries supported, and the long-term impact of the project in creating additional development opportunities in the region.

If you envision entering off-take contracts with third parties, please identify the types of industries you would serve, the manner in which you would solicit interest in such contracts, and the status of any such contracts. If you envision self-scheduling the generation from the Coal Units for your own use, please describe that use.

Please also describe ancillary facilities and infrastructure that you envision building in conjunction with your operation of the Coal Units, and where those facilities and infrastructure would be located.

E. Technical Issues

Please address the major technical issues involved with the Coal Unit Project, as you see them. At a minimum, please address the following issues:

(1) Project Schedule. The Coal Project Layup is scheduled for the 4th quarter of 2025.

Please provide a proposed project Level 1 schedule that identifies critical path items required for your proposed use of the Coal Units, including: engineering, procurement, and construction activities associated with any capital improvements, hiring of personnel and the other issues described below.

(2) Use of Generation. The Coal Units have large generating capacity. Each Coal Unit has a maximum generating capacity of approximately 900 MW, for a total maximum capacity of 1800 MW, though a pending application for an amendment to the air permit for the Coal Units (the “Air Permit Amendment”) contemplates a lower capacity factor.1 Each Coal Unit must generate at least approximately 270 MW to operate properly. Describe your plan, including timing, for use of at least 270 MW, and any plan, including timing, for any significant use of more than 270 MW. If you envision the Coal Units being operated at a capacity factor greater than that contemplated by the Air Permit Amendment, please describe your vision on how to accomplish this.

(3) Transmission. The transmission lines leading away from the Coal Unit switchyard are owned by IPA, and all of the transmission capacity on those lines is contractually committed to IPA’s Purchasers. Please describe your plan for providing any transmission necessary to facilitate your plan for the Coal Units.

(4) Coal Combustion Residuals. Historically, coal combustion residuals such as fly ash and bottom ash (“CCRs”) were stored on-site at IPP in evaporation ponds. Those ponds and the associated slurry pipeline system are currently subject to the EPA’s 2015 finalized regulations for CCRs (“the CCR Rule)”. Please describe your plans for handling CCRs generated from the future operation of the Coal Units and for complying with the 2015 CCR Rule. Identify the location where any new equipment or facilities would need to be installed or constructed.

(5) Fuel Supply. Please describe your plan, including timing, for procuring the coal supplies necessary to operate the Coal Units. The most helpful submissions will:

(a) include recent and current data describing the availability of and market for coal.

1 While the maximum generating capacity for each Coal Unit is 900 MW, the revised air permit for the Coal Units may impose operational limitations that will effectively limit the maximum generating capacity to a lower amount. Information regarding the current status of the Coal Unit permitting process can be located on the Utah Division of Air Quality’s website and will also be available in the virtual data warehouse provided by the State

(b) to the extent possible, identify the coal mines that will provide the necessary coal supply

(c) identify the means of transportation (e.g. rail or truck). Describe the status of any contracts for coal supply or transportation.

(6) Water Supply. Please describe your plan for utilizing water resources necessary to operate the Coal Units. Please also describe your plan for utilizing water resources associated with the Coal Units at any off-take facilities. (Specific information on how much water has historically been used by for operation of the Coal Units and may be available for future operations will be open for Responders to review in the data room provided by the State).

(7) Rail Car Service Center. Please indicate whether you would have any interest in acquiring IPA’s rail car service center located in Springville, Utah, as part of the acquisition of the Coal Unit Project. If so, please describe your anticipated use of the rail car service center and express your preference for ownership or leasing of the rail car service center. Please explain the basis for that preference.

(8) Operation of Coal Units. Please provide any information that would be helpful for the state to understand ways the operation of the Coal Units remain in compliance with legal requirements, including applicable permits, and in a manner that does not interfere with IPP Renewed (as required under HB 70). Please describe generally the tangible and intangible assets you propose to use in the operation of the Coal Units, including assets or technology not currently used in generation of power by the Coal Units. Please provide clarity on how utility scale operation of such assets or technology not currently used in the generation of power by the Coal Units will function. If you envision contracting with a third party to operate the Coal Units, please describe the qualifications that an operator should possess.

Please provide a list of operators that you believe may possess those qualifications.

(9) Asset Retirement Obligations/Decommissioning. The Coal Units will, at some point, exhaust their useful life. At that time the Coal Units will need to be retired/decommissioned. Please address the following with respect to retirement of the Coal Units: the proposed plan for retirement of the Coal Units, including addressing legal obligations, and CCRs and other environmental considerations, the anticipated costs for performing such plan, and the security and other assurances that would be provided to guarantee performance of such plan.

F. Commercial Issues

Please address the major commercial and business issues involved with the Coal Unit Project, as you see them. At a minimum, please address the following issues:

(1) Business Structure. HB 70 contemplates that the State would own the Coal Units and select a third party to operate them. But other business and ownership structures are possible. Please describe the basic business arrangement you envision, and what role your business would play in that structure. Please be as detailed as possible.

(2) Term. How long do you envision operating one or both of the Coal Units (whether for the indefinite future or for a fixed term)? What uses do you envision for the assets of the Coal Unit Project when the Coal Units are retired? Explain how you will fund the eventual closure and retirement costs.

(3) Capital Expenditures. Please identify capital requirements for your proposed project, including the costs associated with returning the Coal Units to operational status. Describe how those capital costs would be financed.

(4) Operational Expenses. Please identify ongoing costs associated with operating and maintaining the Coal Units, including fees and taxes. Describe in general terms how you propose to pay those costs and what profits you anticipate.

E. Process for Disposition of the Coal Units.

Please describe the processes through which the State and a future operator should consider for disposing of the Coal Units when they have reached a point at which their continued operation will no longer be economically viable.

2. RESPONSE FORMAT AND DELIVERY

A. Format

Each Response should adhere to the following format:

(1) The Response should be in the form of a .pdf file(s). Each Response should consist primarily of 8-1/2 by 11 inch pages. Larger pages may be used for charts, tables, drawings, and schedules. No text should be included on larger pages except for text that is required for the interpretation of the chart, table, drawing, or schedule.

(2) Responses should be double-spaced in a minimum of 12-point font.

(3) Responders are discouraged from submitting brochures or similar marketing materials.

B. Delivery

Responses must be emailed to jellsworth@utah.gov no later than 5pm Mountain on Saturday November 15, 2025 (the “Response Deadline”).

C. Submitting Questions to the State

Questions regarding the RFI process must be submitted to jellsworth@utah.gov.

Questions must be received no later than 2 business days prior to the Response Deadline.

Questions regarding the Coal Units, technical constraints, permitting constraints, etc., will be referred to the data room.

D. Requests for Clarification

The State may make requests directly to Responders for clarification to information contained in a Response. Responder shall provide information related to any such requests for clarification within five business days after receipt of such request.