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HomeMy WebLinkAbout20240423Staff 1-19 REDACTED to IPC.pdf RECEIVED Tuesday,April 23,2024 1:07 PM IDAHO PUBLIC UTILITIES COMMISSION CHRIS BURDIN DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0314 IDAHO BAR NO. 9810 Street Address for Express Mail: 11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A BOISE, ID 83714 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER IDAHO POWER ) COMPANY'S APPLICATION FOR ) CASE NO. IPC-E-24-12 APPROVAL OF A MARKET PURCHASE ) AGREEMENT ) REDACTED FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY Staff of the Idaho Public Utilities Commission, by and through its attorney of record, Chris Burdin, Deputy Attorney General, requests that Idaho Power Company ("Company") provide the following documents and information as soon as possible, but no later than TUESDAY,MAY 14, 2024. This Production Request is to be considered as continuing, and the Company is requested to provide,by way of supplementary responses, additional documents that it, or any person acting on its behalf, may later obtain that will augment the documents or information produced. Please provide answers to each question, supporting workpapers that provide detail or are the source of information used in calculations, and the name,job title, and telephone number of the person preparing the documents. Please also identify the name,job title, location, and telephone number of the record holder. REDACTED FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY 1 APRIL 23, 2024 In addition to the written copies provided as response to the requests,please provide all Excel spreadsheets and electronic files with formulas intact and enabled. REQUEST NO. 1: Please provide supporting workpapers of the load and resource balance that details the 236 MW deficit in 2026 as mentioned m Company Witness Ellsworth's Testimony at 14. If not included,please include the expected capacity of contracted projects through 2025. REQUEST NO. 2: Please explain how the Company modeled the Oxbow Hydro maintenance in 2026 in the recent capacity update, mcluding the expected MWs that will be expected to be reduced as a result. Ellsworth at 17. Additionally,please explain when the Company expects the Oxbow Hydro mauitenance to be completed. REQUEST NO. 3: Please explain why the Agreement does Confidential Exhibit No. 9 at 1. In the response, please specify who will own the _ for each transaction i.e., Seller or Purchaser. ** Note: In the response, please highlight confidential information. REQUEST NO. 4: Please explain why the term requires the -. Confidential Exhibit No. 9 at 2. ** Note: In the response, please highlight confidential information. REQUEST NO. 5: In the event the Company elects to receive Firm Energy,please explain the requirement to have ' ". Confidential Exhibit No. 9 at 4. a. Additionally, please explain if the Company will have to ** Note: In the response, please highlight confidential information. REDACTED FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY 2 APRIL 23, 2024 REQUEST NO. 6: The Company may request to increase capacity during the Fixed Term of for a total of_ Confidential Exhibit No. 9 at 4. Please answer the following: a. Please provide the total estimated costs of increasing capacity to- b. If the Company increases to�, please explain how this will be the least cost resource in terms of the 2026 RFP shortlist; c. Please explain if the Company will need to renegotiate the Agreement if it chooses to increase the capacity to a total of_; d. Ellsworth stated in his testimony, "Once B2H is completed, the Powerex contract will be treated as 200 MW of fully incremental capacity." Ellsworth at 25. Please explain if the Company requests to increase to_ that contract will be treated= . of fully incremental capacity; and e. If the Company increases the capacity to_ and 13211 is not energized by June 1, 2026,please provide a table that details the alternative delivery points the Company will use during the Bridge Term. ** Note: In the response, please highlight confidential information. REQUEST NO. 7: Section 12 in Confidential Exhibit No. 9 describes how the Company may Confidential Exhibit No. 9 at 16. Please explain the impacts of converting to this service and answer the following: a. If this option was chosen,please explain how that would impact this Agreement as a cost-effective resource; and b. If this option was chosen,please provide supporting workpapers that detail what the estimated expenses by year of both (a) Bridge Term and(b) Fixed Term. ** Note: In the response, please highlight confidential information. REQUEST NO. 8: Please provide workpapers that were used to determine the Fixed Capacity price. Confidential Exhibit No. 9 at 6. ** Note: In the response, please highlight confidential information. REDACTED FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY 3 APRIL 23, 2024 REQUEST NO. 9: Confidential Exhibit No. 9 Additional Provisions 3(a) at 9 states,. Please explain how the Company will notify the Commission if this occurs. Additionally,please explain how changing the will impact the cost of this Agreement. ** Note: In the response,please highlight confidential information. REQUEST NO. 10: In Confidential Exhibit No. 9 -Additional Provisions 3(c)(i), it states, Please explain what the estimated fee to export out of the Markets Plus footprint will be and how it is calculated. **Note: In the response,please highlight confidential information. REQUEST NO. 11: The Agreement states )7 Confidential Exhibit No. 9 at 19. Please clarify if Idaho Power Film Energy purchases from Powerex would be subject to CCA costs. a. Additionally,please explain how Powerex will calculate the"amount". Please provide supporting workpapers; b. Please explain if this"amount"is different than actual CCA costs; and c. If the Company is subject to CCA costs,please explain if the Company plans to pass those costs on to Idaho customers. **Note: In the response,please highlight confidential information. REQUEST NO. 12: As part of the Company's All-Source Request for Proposals ("RFP'), the Company identified tables of eligible products. Table 3.2 identified"Gas-fired REDACTED FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY 4 APRIL 23,2024 Convertible to Hydrogen (G2H)" as an eligible product. Please answer the following questions about this product: a. Please describe how this product would materially differ from a conventional gas- fired plant; b. Please explain the Company's reasons for requesting this product, but not a conventional gas-fired plant; c. Please provide examples of other utilities or energy companies that implemented this product; and d. Please provide the Company's cost estimate data regarding the extra costs that would be typical between this product and a conventional gas-fired plant. REQUEST NO. 13: Please provide the following information from the Gas-fired Convertible to Hydrogen ("G21­1")proposal submitted as part of the RFP: a. Please provide the proposed location of the resource and its natural gas supply plan; b. Please provide the proposed electrical interconnection or delivery path; c. Please provide the proposed nameplate capacity; d. Please provide the proposed price; and e. Please provide the proposed plan to provide convertibility to hydrogen. REQUEST NO. 44: The RFP requested proposals that would alleviate capacity deficits in 2026 and 2027. Because the Company did not determine the final short list of competitive proposals until March of 2023, proposers will now have under three years to finish a 2026 project. a. Please list all potential resource types with typical acquisition lead times that exceed three years; b. Please provide the typical acquisition lead time for those resource types; and c. Please describe roadblocks and solutions the Company can pursue to enable longer lead-time projects. REQUEST NO. 15: Staff believes that the Company constructed Langley Gulch gas plant("Langley") with the capability to expand its capacity. REDACTED FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY 5 APRIL 23, 2024 a. Please describe the capacity-expansion features currently in place at Langley; b. Please describe the requirements to expand the capacity of the plant, and the additional amount of capacity that could be reasonably achieved; and c. Please explain why the Company did not submit a Langley expansion project as a benchmark project. REQUEST NO. 16: Please provide the worksheets (with formulas enabled) determining the life-cycle calculations for the top three 2026 proposals. REQUEST NO. 17: Please answer the following questions about AURORA modeling of the Powerex Market Purchase Agreement ("MPA"): a. Please describe how the Company modeled the MPA in Aurora; b. Please confirm that the model accounts for the cost of 16 hours of energy at the Day- Ahead Mid-C Peak Index price if a delivery order is placed; and c. Please provide an appropriate range of AURORA hourly data that shows an MPA delivery order being executed during a 2027 summer peak. REQUEST NO. 18: Please answer the following questions about AURORA modeling of Battery Energy Storage Systems ("BESS"): a. Please describe how the Company models BESS in AURORA; b. Please describe the factors that AURORA uses to determine how and when to recharge the BESS; c. Please clarify if the cost of BESS-recharging energy is accounted for in the portfolio; and d. Please provide appropriate AURORA hourly data from a run that shows a BESS resource discharging and recharging during a peak winter month. REDACTED FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY 6 APRIL 23, 2024 REQUEST NO. 19: Please describe any steps the Company is considering to shorten the next RFP timeline. DATED at Boise, Idaho, this 23`d day of April 2024. kvA Chris Burdin Deputy Attorney General 1:\Utility\UMISC\PRDREQ\IPC-E-24-12 PR#I Redwted.docx REDACTED FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY 7 APRIL 23,2024 CERTIFICATE OF SERVICE c l- I HEREBY CERTIFY THAT I HAVE THIS;; DAB' OF APRIL 2024, SERVED THE FOREGOING REDACTED FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY, IN CASE NO. IPC-E-24-12, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING: DONOVAN E WALKER IDAHO POWER COMPANY PO BOX 70 BOISE ID 83707-0070 E-MAIL: dwalkerOidahopower.com PATRICIA JORD , SECRETARY CERTIFICATE OF SERVICE