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HomeMy WebLinkAbout20240605PAC to Staff 1-15.pdf RECEIVED 2024 June 5, 5:OOPM IDAHO PUBLIC _ ROCKY MOUNTAIN UTILITIES COMMISSION POWER A DIVISION OF FACIFICORP 1407 W North Temple, Suite 330 Salt Lake City, Utah 84116 June 5, 2024 Monica Barrios-Sanchez Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A Boise, ID 83714 monica.barrio ssanchez(apuc.Idaho.gov S ecretarygpuc.idaho.gov RE: ID PAC-E-24-06 IPUC Set 1 (1-15) Please find enclosed Rocky Mountain Power's Responses to IPUC 1st Set Data Requests 1-15. Also provided is Attachment IPUC 1. Provided via BOX are Confidential Response IPUC 6, 7, 9, and I I and Confidential Attachment IPUC 6. Confidential information is provided subject to protection under IDAPA 31.01.01.067 and 31.01.01.233, the Idaho Public Utilities Commission's Rules of Procedure No. 67—Information Exempt from Public Review, and further subject to the non-disclosure agreement(NDA) executed in this proceeding. If you have any questions, please feel free to call me at (801)220-2313. Sincerely, /s/ Mark Alder Manager, Regulation Enclosures PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 1 IPUC Data Request 1 The Application and Confidential Exhibit No. 2 provides multiple maps with differing boundaries for the identified "Blocks". (a) Please provide maps with legal descriptions showing the location(s) of the parcel(s) within each Block that are proposed to be transferred. (b) Please reconcile Block 3's boundaries from Application Figure 2 and Confidential Transfer Agreement Exhibit A-2. (c) Please reconcile Block 4's boundaries from Application Figure 2 and Confidential Transfer Agreement Exhibit A-4. Response to IPUC Data Request 1 (a) Please refer to Attachment IPUC 1 which provides the following legal block descriptions and an accompanying updated map: • SLC RMP—Block IA.pdf • SLC RMP—Block 1B.pdf • SLC RMP—Block 2.pdf • SLC RMP—Block 3.pdf • SLC RMP—Block 4.pdf • SLC LHM Exhibit 032924.pdf (b) The maps in the application and in Confidential Exhibit No. 2 are general depictions. The formalized boundaries and legal descriptions are provided in Attachment IPUC 1. In addition, please refer to the following regarding discrepancies between the Company's Application and Confidential Exhibit No. 2: • Block 3 in the Application does not include the rail spur and South Temple ends at Block 1 a. • In Confidential Exhibit No. 2, the rail spur is included and all of South Temple is included. (c) The maps in the Company's Application and in Confidential Exhibit No. 2 are general depictions. The formalized boundaries and legal descriptions are provided in Attachment IPUC 1. In addition, please refer to the following regarding discrepancies between the Company's Application and Confidential Exhibit No. 2: PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 1 • Block 4 in the Application does not include the future substation area versus Confidential Exhibit No. 2 that includes the future substation area. Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 2 IPUC Data Request 2 While reviewing the Blocks' as described and shown in the Application, it appears that there may be discrepancies between the Company-provided information and the Salt Lake County Assessors map. Please reconcile all parcel(s) located within each Block with the Salt Lake County Assessors map. Response to IPUC Data Request 2 The parcel discrepancies between the Salt Lake County Assessors map and the proposed development Blocks in Confidential Exhibit No. 2 are due to the site development master plan which has not yet been fully approved by the Company, LHM DEV E and Salt Lake City. The Blocks do not correspond to the current parcel lines—this issue will be resolved prior to each Closing. The existing parcels as shown in the Salt Lake County Assessors map will be updated over time with the new development as per the site development master plan and actual construction. Recordholder: Mike Jenson Sponsor: To Be Determined ' Reviewed the Blocks via 1)https:Hslco.org/assessor/(last visited May 8,2024);and 2) https:Hslco.org/assessor/new/ParcelViewer/index.html?query=Parcel_Viewer_extemal_3 634_5.parcel_id (last visited May 8,2024). PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 3 IPUC Data Request 3 The Company's Application describes how the Company intends to construct a new headquarters (New HQ)and potentially a new Energy Services Building (New ESB). Application at 7. Please explain where existing Company offices, shops, and workspaces will be temporarily relocated. Confidential Transfer Agreement (10)(c)(b). Please include how uninterrupted regulatory function, grid operation, operational oversight, and the continuation of providing fair, safe, and reliable services for Idaho customers will be maintained during and after relocation. Response to IPUC Data Request 3 Temporary relocation is not required. The Company will continue to use existing facilities during construction of the New Headquarters (HQ) and New Energy Services Building (ESB). Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 4 IPUC Data Request 4 Please provide supporting Excel worksheets that detail the estimated construction costs of the New HQ and New ESB. Please include the estimated temporary and final relocation costs, as well as any additional costs associated with maintaining uninterrupted facility functions. Response to IPUC Data Request 4 PacifiCorp objects to this data request to the extent it seeks information that is not relevant, and the request is not reasonably calculated to lead to the discovery of admissible evidence. Subject to and without waiving the foregoing objection, the Company responds as follows: The Company is in the design process and preparation of construction documents for the New Headquarter(HQ) and New Energy Services Building (ESB) and does not currently possess estimated construction costs. The Company's Application in this proceeding does not seek regulatory approval of any proposed capital project and only seeks approval for the transfer of property under Idaho Code 61-328. The regulatory treatment of any costs associated with the New HQ and New ESB will be included in future general rate cases. Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 5 IPUC Data Request 5 Please explain how the funds identified in the Confidential Exhibit J "Impairment Cost Schedule"that have already been released will be allocated to Idaho customers. Please also explain if these funds are now controlled by the Company, and if so, please provide the associated journal entries. Response to IPUC Data Request 5 As of May 22, 2024, the Company has received Impairment Cost Schedule funds of$1,901,100 and a Pause Fee of$1,200,000. Funds have been applied to FERC Account 107 (construction work in progress-electric) to offset costs which were previously recorded to FERC Account 107 which are now impaired. All funds received from the Impairment Cost Schedule will offset costs recorded in FERC Account 107. Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 6 IPUC Data Request 6 CONFIDENTIAL RE UEST -Please provide sup-portingdocumentation of the including cost estimates for the environmental remediation, etc. Confidential Response to IPUC Data Request 6 The Company completed a risk assessment and cost estimate for potential environmental remediation in July 2023. Please refer to Confidential Attachment IPUC 6 which provides a copy of Power District Environmental Risks By Area. iabow* ts the estimated remediation costs ranged DE E conducted a similar assessment and the parties both the Company and LHM DEV E agreed to a deduction of from the purchase price. Confidential information is provided subject to protection under IDAPA 31.01.01.067 and 31.01.01.233, the Idaho Public Utilities Commission's Rules of Procedure No. 67—Information Exempt from Public Review, and further subject to the non-disclosure agreement(NDA) executed in this proceeding. Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 7 IPUC Data Request 7 i FIDENTIAL RE UEST -Please ex lain the need for the Response to IPUC Data Request 7 The Success Fee provides a potential positive sales price adjustment if conditions described in the Master Development Agreement(MDA) are met related to LHM DEV E development success related to Major League Baseball (MLB) and if the Company makes certain property available within agreed upon timelines. Confidential information is provided subject to protection under IDAPA 31.01.01.067 and 31.01.01.233, the Idaho Public Utilities Commission's Rules of Procedure No. 67—Information Exempt from Public Review, and further subject to the non-disclosure agreement(NDA) executed in this proceeding. Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 8 IPUC Data Request 8 Please provide the MDA. If not yet negotiated, please provide a projected date for its execution and provide a copy as a supplemental filing when completed. Response to IPUC Data Request 8 The Master Development Agreement(MDA) is in the process of negotiation. It is currently anticipated that the MDA will be finalized in June 2024. The Company will supplement this response once the MDA is finalized. Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 9 IPUC Data Request 9 CONFIDENTIAL REQUEST -The Company's Application provides a timeline for property purchases from March 1, 2024, through December 31 2039. However in Confidential Exhibit No. 2 8 e at 13 P ease reconciFtl e1111111111116 erenceetween purchase option dates in the timeline and Confidential Exhibit No. 2 (8)(e). Confidential Response to IPUC Data Request 9 Confidential information is provided subject to protection under IDAPA 31.01.01.067 and 31.01.01.233, the Idaho Public Utilities Commission's Rules of Procedure No. 67—Information Exempt from Public Review, and further subject to the non-disclosure agreement (NDA) executed in this proceeding. Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 10 IPUC Data Request 10 Please provide the proposed accounting treatment for any relocation and/or transmission upgrade costs associated with the asset transfer. Response to IPUC Data Request 10 PacifiCorp objects to this request to the extent it is vague and ambiguous as to the phrase "relocation and/or transmission upgrade costs." Subject to and without waiving the foregoing objection, the Company responds as follows: In this proceeding, the Company has proposed the approval of accounting order that would authorize the recording of a regulatory liability for any net proceeds arising from the Transfer Agreement. Any costs necessary for the asset transfer would reduce the net proceeds recorded. Please refer to the Company's response to IPUC Data Request 3 for more information pertaining to temporary relocation. Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request I I IPUC Data Request 11 CONFIDENTIAL REQUEST -The Master Plan includes a re uirement for the Develo er and the Com an to include Con i entia Ex i it No. 2 8 viii) at 14. Please explain why the agreement includes plan and design for property outside of the described Blocks in the Application. Response to IPUC Data Request 11 Inasmuch as the river is an important part of the full site development experience, LHM DEV E also acquired property east of the Company's property and will combine those parcels into one cohesive master plan with the river experience being a focus. Note: LHM DEV E also acquired property to the west of the Company's property. There will not be a separate master plan for the Company property that does not also include LHM DEV E's additionally acquired property on the Company's east and west flanks. Confidential information is provided subject to protection under IDAPA 31.01.01.067 and 31.01.01.233, the Idaho Public Utilities Commission's Rules of Procedure No. 67—Information Exempt from Public Review, and further subject to the non-disclosure agreement(NDA) executed in this proceeding. Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 12 IPUC Data Request 12 Please provide the timeline for the New HQ and ESP projects. Response to IPUC Data Request 12 PacifiCorp objects to this data request on the grounds that it seeks information that is not relevant and the request is not reasonably calculated to lead to the discovery of admissible evidence. Subject to and without waiving the foregoing objection, the Company responds as follows: The Company assumes that the reference to "ESP"is intended to be a reference to the energy services building (ESB) project. Based on the foregoing assumption, the Company responds as follows: The timeline for the New Headquarters (HQ) and ESB projects will be agreed upon in the Master Development Agreement(MDA). The Company will supplement this response after the MDA has been executed. The Company's Application in this proceeding does not seek regulatory approval of any proposed capital project and only seeks approval for the transfer of property under Idaho Code 61-328. The regulatory treatment of any costs associated with the New HQ and New ESB will be included in future general rate cases (GRC). Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 13 IPUC Data Request 13 Please provide documentation for the approved financing or how the New HQ and ESP projects are being funded. Response to IPUC Data Request 13 PacifiCorp objects to this data request on the grounds that it seeks information that is not relevant and the request is not reasonably calculated to lead to the discovery of admissible evidence. Subject to and without waiving the foregoing objection, the Company responds as follows: The Company assumes that the reference to "ESP"is intended to be a reference to the energy services building (ESB) project. Based on the foregoing assumption, the Company responds as follows: The Company is still exploring financing options and has not made a final determination. The Company's Application in this proceeding does not seek regulatory approval of any proposed capital project and only seeks approval for the transfer of property under Idaho Code 61-328. The regulatory treatment of any costs associated with the New HQ and New ESB will be included in future general rate cases. Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 14 IPUC Data Request 14 Please provide an update to the Feasibility Period. The Developer had until April 30, 2024, to confirm if they will proceed with this transaction or terminate this agreement. Response to IPUC Data Request 14 The Developer has paid the Feasibility Period activity from the Impairment Cost Schedule. The parties are still negotiating final terms of the Master Development Agreement (MDA). Recordholder: Mike Jenson Sponsor: To Be Determined PAC-E-24-06/Rocky Mountain Power June 5, 2024 IPUC Data Request 15 IPUC Data Request 15 Please provide the accounting treatment and journal entries for the following: Please include any spreadsheets with formulas intact and enabled. (a) The removal of these real property assets from the Company's books. (b) Any other journal entries necessary to complete the transaction. Response to IPUC Data Request 15 (a) Please refer to the table provided below: Debit Credit Proposed Regulatory Account as described in $714,000 the Transfer Agreement FERC 101-Electric Plant In Service $(714,000) (b) There are no other journal entries necessary as it pertains to the removal of the real property assets from the Company's books. Recordholder: Mike Jenson Sponsor: To Be Determined