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HomeMy WebLinkAbout20240722Staff 82-118 to PAC.pdf RECEIVED Monday, July 22, 2024, 2:51 PM IDAHO PUBLIC ADAM TRIPLETT UTILITIES COMMISSION DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0318 IDAHO BAR NO. 10221 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 OF THE APPLICATION ) OF ROCKY MOUNTAIN POWER FOR ) CASE NO. PAC-E-24-04 AUTHORITY TO INCREASE ITS RATES ) AND CHARGES IN IDAHO AND APPROVAL ) SIXTH PRODUCTION OF PROPOSED ELECTRIC SERVICE ) REQUEST OF THE SCHEDULES AND REGULATIONS ) COMMISSION STAFF TO ROCKY MOUNTAIN POWER Staff of the Idaho Public Utilities Commission, by and through its attorney of record, Adam Triplett, Deputy Attorney General, requests that PacifiCorp d/b/a Rocky Mountain Power ("Rocky Mountain Power" or the "Company")provide the following documents and information as soon as possible, but no later than MONDAY, AUGUST 12, 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. SIXTH PRODUCTION REQUEST TO ROCKY MOUNTAIN POWER 1 JULY 22, 2024 In addition to the written copies provided as response to the requests,please provide all Excel spreadsheets and electronic files with formulae intact and enabled. REQUEST NO. 82: Please provide a detailed description of the Company's weather/temperature normalization method used to normalize revenues, system peak, energy loads, net power costs, and any other items normalized by this method. In the description, please identify any changes in the method from Case No. PAC-E-21-07. Please provide any workpapers supporting the weather/temperature normalization method, in electronic format with links intact and formulae enabled, for each item that is normalized including weather spline models and calculations of the weather adjustment. REQUEST NO. 83: Please provide a detailed description of the Company's method for normalizing energy sales and revenue. In the description, please identify any changes in the method from Case No. PAC-E-21-07. Please provide any workpapers supporting the energy sales and revenue normalization method, in electronic format with links intact and formulae enabled. REQUEST NO. 84: The document"7 Direct Testimony and Exhibit Ramon J Mitchell CONF" does not include the confidential page of Exhibit No. 27 (General Electric Model 717.04 Gas Turbine). Please provide the confidential version of Exhibit No. 27. REQUEST NO. 85: Please confirm that bid prices in EDAM are set by each participating utility. Also, please confirm that each participating utility can set bid prices high to avoid dispatching a resource. REQUEST NO. 86: Mitchell's Direct Testimony states that Wyoming has a sharing band, while Oregon and Washington have both dead bands and sharing bands in their net power cost adjustment mechanisms. Please explain each of the three state's current sharing policies and provide an example for each in a worksheet with formulae intact. SIXTH PRODUCTION REQUEST TO ROCKY MOUNTAIN POWER 2 JULY 22, 2024 REQUEST NO. 87: Eller's Direct Testimony states that"the Company will retain RECs for retirement based on a percentage of participating customers' aggregated load data in the calendar year immediately preceding the Program Year and based on Idaho-allocated Company RECs...Participation in this Program will also require customers to forego revenue credits in their rates from sales of Company entitled RECs from the RRA." Please explain whether RECs to be retired can exceed Idaho-allocated RECs. REQUEST NO. 88: Please explain why the Company does not intend to engage in marketing efforts for the REC Option Program. REQUEST NO. 89: Pages 12 and 13 of Eller's Direct Testimony states that the number of RECs to be retired for the REC Option Program is based on the aggregated load for participating customers multiplied by a percentage of renewable resource generation from PacifiCorp's system, and the initial percentage of 20%. Please respond to the following: a. Please explain and illustrate through examples that non-participating customers will receive the amount of REC revenue credits that they currently receive; b. Please explain and illustrate generally whether the Company will financially benefit from the program. In your answer,please explain if the Company can benefit by determining which RECs for each resource type will be retired as described in proposed Schedule No. 74; c. Please explain why 20% is a reasonable starting percentage; and d. Please explain whether the number of retired RECs determined under this method generally aligns with the value of the foregone revenue credits that the participating customers would have received from the sales of the RECs. Please provide evidence to support your answer. REQUEST NO. 90: Page 9 of Eller's Direct Testimony states that"Company witness McCoy describes how the REC revenue forgone by participating customers would remain in the existing balancing account and be credited to Idaho's non-participating customers through the RRA." Please respond to the following: a. Please provide justification for the statement in the quote; and SIXTH PRODUCTION REQUEST TO ROCKY MOUNTAIN POWER 3 JULY 22, 2024 b. Please explain where the forgone revenue comes from if the RECs are retired. REQUEST NO. 91: Please respond to the following regarding wheeling revenue: a. Please confirm that all the OATT wheeling revenue is recorded in FERC Account 456; and b. Please state whether OATT wheeling revenue is trued up in the ECAM. If so,please explain how. If not, please explain why. REQUEST NO. 92: Please respond to the following regarding Day-Ahead/Real-Time ("DA/RT") Adjustments discussed in Mitchell's Direct Testimony: a. Please explain how the Official Forward Price Curve ("OFPC") is determined; b. Please explain why OFPC is used in calculating NPC, instead of the market prices determined by the Aurora model run; c. Please explain and provide workpapers illustrating how the OFPC forecast is scaled to hourly buckets; and d. Please explain how the percentage-of-market-price adders are determined based on historical data from 2020 to 2023 and provide an example to illustrate the calculation. In the explanation, please explain how hourly scaled average market-indexed prices and hourly scaled average Company purchase prices are determined. REQUEST NO. 93: Page 57 of Mitchell's Direct Testimony states that "trapped energy is a modeling concept only and does not exist in actual operations. It represents any excess generation that cannot be used to serve load due to transmission constraints or system-level oversupply." Please explain why trapped energy does not exist in actual operations and how Aurora resolves the issue. REQUEST NO. 94: Please explain the two FED Renewable Energy Tax Credit line items on Page 116 of Exhibit No. 48 of McCoy's Direct Testimony. REQUEST NO. 95: Please respond to the following regarding Page 117 of Exhibit No. 48 of McCoy's Direct Testimony: a. Why are there two levels of Credit Rate Per kWh dependent on their in-service dates? SIXTH PRODUCTION REQUEST TO ROCKY MOUNTAIN POWER 4 JULY 22, 2024 b. For projects placed in-service after 2022, why do generation amounts need to be adjusted by five times and then by another 110%? REQUEST NO. 96: Does Aurora treat PURPA energy as non-curtailable energy? If so, how? REQUEST NO. 97: For PPAs, does Aurora curtail these resources according to their contracts? REQUEST NO. 98: Please explain whether curtailment only applies to wind, not solar, in the Aurora model. REQUEST NO. 99: Please respond to the following regarding file"Table NPC Dollar and Table NPC MWh CONF 2023 Normalized Load.xlsx": a. Please define "Special Sales for Resale", "Mid-Columbia Contracts", "Storage & Exchange", "System Balancing Purchases", "Net Interchange", "U. of F. Expense", and"Other Generation Expense" on Tab "Source". b. Please explain the difference between"Long Term Firm Sales", "Short Term Firm Sales", and"System Balancing Sales". c. Please explain the difference between"Long Term Firm Purchases", "Short Term Firm Purchases", and"System Balancing Purchases"? d. Please explain why"Other Generation Expense" on Tab "Source" is not reflected on Tab "Table(s)NPC Dollar and MWh". REQUEST NO. 100: Please respond to the following regarding Jim Bridger on Tab "NPC Summary" of file "ID_GRC_2025_2023 Normalized Load.xlsm", given the in-service dates of April 2024 for Jim Bridger units 1 and 2 as a gas plant: a. Please explain how each month's coal fuel cost is determined for Jim Bridger(Line 234); and b. Please explain how each month's gas fuel cost is determined for Jim Bridger (Line 246). SIXTH PRODUCTION REQUEST TO ROCKY MOUNTAIN POWER 5 JULY 22, 2024 REQUEST NO. 101: Please respond to the following regarding PURPA QFs: a. Please explain how generation amounts of QFs are determined in calculating NPC; and b. Please confirm that QF generation is treated as a must-take resource in Aurora. REQUEST NO. 102: Page 61 of Mitchell's Direct Testimony states that"on average, a minimum of 75 percent of each month's largest generation deficit is hedged in the first quarter of the future (e.g., in December 2024 this would apply to the first quarter of 2025)." Furthermore, Page 62 of Mitchell's Direct Testimony states that quarterly 25 MW energy blocks of heavy or light load hour products are loaded into the model to reflect the Company's hedging policy. Please provide an example illustrating these statements. REQUEST NO. 103: Please provide the workpapers for determining the "normal hydro and temperature conditions" as explained on Page 91 of McCoy Exhibit No. 48. REQUEST NO. 104: For purposes of determining the NPC impact of modeling changes, according to Mitchell's Direct Testimony, the Company uses a 2025 forecasted load. Please respond to the following: a. Please explain whether the expected 2025 forecast load is temperature-normal (i.e. (Normal based on the historic 20-year rolling window) and whether the extreme weather adjustment is applied or not; and b. Please explain why the Company didn't use the 2023 weather-normalized load to do the analysis. REQUEST NO. 105: Please explain if the method and resulting loads used to determine the temperature-normalization revenue adjustment discussed on Page 41 of McCoy Exhibit No. 48 are the same loads used as the "Normal" loads prior to adding the extreme weather adjustment used for NPC. REQUEST NO. 106: Page 29 of Mitchell's Direct Testimony states that"[a] long-term drought, dating back to the 2019-2020 winter, continues across parts of the Pacific Northwest (current hydroelectric generation is 25 percent lower than the 10-year average at the regional SIXTH PRODUCTION REQUEST TO ROCKY MOUNTAIN POWER 6 JULY 22, 2024 level) and is picked up in the normalized hydroelectric generation forecast. Furthermore, the removal of four Company-operated hydroelectric projects along the Klamath river contribute to this decrease. These projects totaled approximately 180 MW of capacity and have ceased generation." Please explain how the long-term drought is picked up in the normalized hydroelectric generation forecast. REQUEST NO. 107: The proposed NPC is based on the OFPC dated March 29, 2024. Please respond to the following: a. Please provide the latest OFPC; b. Please explain when the OFPC is dated; c. Please determine the new NPC based on the latest OFPC; and d. Please update Mitchell's "ID_GRC_2025_2023 Normalized Load.xlsm" workpaper based on the latest OFPC. REQUEST NO. 108: Page 75 of Mitchell's Direct Testimony states that market capacity limits are applied to all trading hubs. Please answer the following: a. Please list market capacity limits for each trading hub and provide how the limits were determined for each hub; and b. Please provide specific historic evidence that outside sales transactions could not be transacted at market prices due to unavailable buyers. REQUEST NO. 109: Pages 34-35 of Mitchell's Direct Testimony shows coal prices for Hunter's Bronco Utah Operations contract, Hunter's Wolverine Fuel Sales contract, and Huntington's Wolverine Fuel Sales contract are high due to "Utah market supply shortages". Please provide evidence that these contracts are prudent. REQUEST NO. 110: Page 38 of Mitchell's Direct Testimony states that"Aurora can receive more than one incremental price for the purpose of forecasting dispatch of coal-fired resources and can recognize and optimize around volumetric constraints in each price tier." Please respond to the following: a. Please provide an example to illustrate tiered prices in Aurora; b. Please explain how tiered prices affect dispatch of coal plants; and SIXTH PRODUCTION REQUEST TO ROCKY MOUNTAIN POWER 7 JULY 22, 2024 c. Please explain the extent that the Company's coal contracts use tiered prices backed up with evidence. REQUEST NO. 111: Page 96 of Exhibit No. 48 in McCoy's Direct Testimony states that the primary function of the EIM Board of State Regulators ("BOSR") is to provide a forum for state regulators to learn about the EIM, EIM Governing Body, and related ISO developments. Please explain how Idaho ratepayers benefit from this participation. REQUEST NO. 112: Please respond to the following regarding Western Resource Adequacy Program ("WRAP") fees: a. How is the amount of the forecasted 2024 WRAP fees determined? b. How is the amount of the 2023 WRAP fees determined? c. Why do the fees decrease in 2024 compared to 2023? d. Please explain when Idaho ratepayers will begin receiving benefits from the WRAP. REQUEST NO. 113: Please respond to the following regarding Committee of State Regulatory("COSR") materials fees, which according to Page 96 of Exhibit No. 48 are related to the implementation of the WRAP program: a. Please explain the difference between the WRAP fees and COSR materials fees; b. Please explain why COSR materials fees are zero in 2023; c. Please explain how the amount of COSR materials fees is determined in 2024; and d. Please explain how and when Idaho ratepayers will begin receiving benefits from the COSR. REQUEST NO. 114: Please respond to the following regarding Wyoming Wind Generation Tax as discussed on Page 38 of McCoy's Direct Testimony: a. Please confirm that the excise tax is not levied for wind generation that is used to meet native customer load; and b. How does the Company determine that energy for sales or trade came from a Wyoming wind facility and not another Company resource? SIXTH PRODUCTION REQUEST TO ROCKY MOUNTAIN POWER 8 JULY 22, 2024 REQUEST NO. 115: Please provide the Excel version of Page 90 of Exhibit No. 48 of McCoy's Direct Testimony. REQUEST NO. 116: Please explain what types of costs are included on the allowance line item in Exhibit No. 51 of McCoy's Direct Testimony. Specifically, are all the costs associated with Washington CCA allowances? REQUEST NO. 117: Please respond to the following regarding the cost of Washington CCA allowances: a. Please provide the cost of Washington CCA allowances at the Company level and for the Idaho jurisdiction; b. Please explain how the system and Idaho-allocated allowance costs are determined; c. Please provide the workpapers that determine the system and Idaho-allocated allowance costs; and d. Please identify the specific tabs and line items that contain these allowance costs in Excel file "ID GRC 2025 2023 Normalized Load.xlsm". REQUEST NO. 118: Please provide a list of jurisdictions and rate cases in those jurisdictions where the Company used the Aurora model, instead of other models such as GRID, to determine NPC. Please provide the proposed amount of system NPC costs proposed in those cases and the approved system NPC broken down by FERC account. DATED at Boise, Idaho, this 22nd day of July 2024. I'F . A4 Z A4 ak... .,- - Adam Triplett Deputy Attorney General I:\Utility\UMISC\PRDREQ\PAC-E-24-04 PR#6.docx SIXTH PRODUCTION REQUEST TO ROCKY MOUNTAIN POWER 9 JULY 22, 2024 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 22ND DAY OF JULY 2024, SERVED THE FOREGOING SIXTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO ROCKY MOUNTAIN POWER, IN CASE NO. PAC-E-24- 04, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING: MARK ALDER JOE DALLAS ROCKY MOUNTAIN POWER CARLA SCARSELLA 1407 WEST NORTH TEMPLE STE 330 ROCKY MOUNTAIN POWER SALT LAKE CITY UT 84116 825 NE Multnomah, Suite 2000 E-MAIL: mark.aldergpacificorp.com Portland, OR 97232 E-MAIL: joseph.dallas(aa pacificorp.com carla.scarsellagpacificorp.com DATA REQUEST RESPONSE CENTER E-MAIL ONLY: datarequestkpacificorp.com ERIC L OLSEN LANCE KAUFMAN PhD ECHO HAWK& OLSEN PLLC 2623 NW BLUEBELL PLACE PO BOX 6119 CORVALLIS OR 97330 POCATELLO ID 83205 E-MAIL: lancegae isg insi hg t.com E-MAIL: elogechohawk.com MATTHEW NYKIEL BRAD HEUSINKVELD ID CONSERVATION LEAGUE ID CONSERVATION LEAGUE 710 N 6TH STREET 710 N 6TH STREET BOISE ID 83702 BOISE ID 83702 E-MAIL: matthew.n. kielggmail.com E-MAIL: heusinkveld(ci),idahoconservation.org THOMAS J BUDGE BRIAN C COLILINS RACINE OLSON PLLP GREG MEYER PO BOX 1391 BRUBAKER&ASSOCIATES POCATELLO ID 83204-1391 16690 SWINGLEY RIDGE RD #140 E-MAIL: ti(�racineolson.com CHESTERFIELD MO 63017 E-MAIL: bcollinsgconsultbai.com gmeyer(d),consultbai.com Electronic Service Only: RONALD L WILLIAMS KEVIN HIGGINS BRANDON HELGESON NEAL TOWNSEND HAWLEY TROXELL ET AL ENERGY STRATEGIES LLC 877 W MAIN ST E-MAIL: khiggins(aenergystrat.com BOISE ID 83701 ntownsendgenergystrat.com E-MAIL: rwilliamsghawleytroxell.com bhel eg son(a),hawleytroxell.com CERTIFICATE OF SERVICE Page 1 of 2 Electronic Service Only: Electronic Service Only: BRADLEY MULLINS VAL STEINER MW ANALYTICS ITAFOS CONDA LLC E-MAIL: brmullins(kmwanalytics.com E-MAIL: Val.steiner(o)itafos.com Electronic Service Only: KYLE WILLIAMS BYU Idaho E-MAIL: williamsk(a,byui.edu KERI HAW AR, SECRETARY CERTIFICATE OF SERVICE Page 2 of 2