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HomeMy WebLinkAbout20240905PAC to Staff 178_190_191_202.pdf1407 W North Temple, Suite 330 Salt Lake City, Utah 84116 September 5, 2024 Monica Barrios-Sanchez Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A Boise, ID 83714 monica.barriossanchez@puc.idaho.gov Secretary@puc.idaho.gov RE: ID PAC -E-24-04 IPUC Set 10 (175-204) Please find enclosed Rocky Mountain Power’s Responses to IPUC 10th Set Data Requests 178, 190, 191 and 202. Provided via BOX are Confidential Attachments and Confidential Responses. 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 C.c.: Eric L. Olsen/IIPA elo@echohawk.com (C) Lance Kaufman/IIPA lance@aegisinsight.com (C) Matthew Nykiel/ICL matthew.nykiel@gmail.com Brad Heusinkveld/ICL bheusinkveld@idahoconservation.org Thomas J. Budge/Bayer tj@racineolson.com (C) Brian C. Collins/Bayer bcollins@consultbai.com Greg Meyer/Bayer gmeyer@consultbai.com Kevin Higgins/Bayer khiggins@energystrat.com (C) Neal Townsend/Bayer ntownsend@energystrat.com (C) Ronald L. Williams/PIIC rwilliams@hawleytroxell.com RECEIVED THURSDAY, SEPTEMBER 5, 2024 IDAHO PUBLIC UTILITIES COMMISSION Brandon Helgeson/PIIC bhelgeson@hawleytroxell.com Bradley Mullins/PIIC brmullins@mwanalytics.com Val Steiner /PIIC val.steiner@itafos.com Kyle Williams/PIIC williamsk@byui.edu PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 178 IPUC Data Request 178 Please provide supporting documentation for the pro forma increases to retirement plans, benefits, disability insurance, and workers compensations shown on Page 4.2.6 of Exhibit No. 48. Response to IPUC Data Request 178 Please refer to the Company’s response to IIPA Data Request 21. Recordholder: Christina Lopas Sponsor: Shelley McCoy PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 190 IPUC Data Request 190 Please provide the following information for the 301 Generator Stator Rewind project referenced on Attachment #55-1 of Response to Production Request No. 55. Please include any available workpapers with formula intact. If any of the information requested below cannot be provided or is not available, please explain why it is not available or cannot be provided. (a) Please provide a detailed explanation for the need of the project including the analysis justifying the need. (b) Please provide a list of all the potential alternatives the Company considered to fulfill the need and explain why the project was selected among the alternatives supported by the Company’s economic analysis (costs and benefits) comparing them. (c) If a RFP or RFQ was submitted, please provide the following information: i. A copy of the RFP or RFQ that was submitted; ii. A detailed explanation of the selection process including the scorecard and list of the criteria used to select the project; iii. The short-list bidder scorecard; and iv. A copy of the winning bid. (d) Please provide the approved Initial Project Plan including the following: i. Initial project scope; ii. Initial project budget; iii. Initial proposed schedule; and iv. Evidence that the Initial Project Plan and budget were approved at the appropriate level. (e) Please provide the following for the Baseline Construction Project Plan: i. Baseline project scope; ii. Baseline project budget broken down by the WBS; iii. Baseline project schedule broken down by the WBS; iv. If the baseline construction project scope, budget, and/or schedule deviated from the Initial Project Plan, please explain the differences, explain the reason for the change, and provide evidence that the changes were approved at the appropriate level; v. Project status reports and action items; and vi. Contractor change orders. PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 190 (f) Please provide the following related to completion of the project: i. Baseline construction budget-to-actual comparison by the WBS and by year; ii. Baseline construction schedule-to-actual comparison by the WBS; iii. For any budget-to-actual cost overages by major WBS category that is over 5%, please explain the reason for the differences and provide evidence that the amount was approved at the appropriate level; and iv. Please explain any slips in schedule from the baseline construction schedule. Confidential Response to IPUC Data Request 190 (a) Please refer to Confidential Attachment IPUC 190 which provides a copy of the appropriation request (APR). (b) Please refer to Confidential Attachment IPUC 190 which provides a copy of the APR. (c) Due to the nature of this particular project, it was single-sourced. Since the original equipment manufacturer (OEM), Siemens, was onsite during the annually scheduled maintenance outage, the Company was able to save tool/equipment mobilization costs and expedite the starting date of the project. (d) Please refer to the Company’s responses to subparts i. through iv below: i. Please refer to Confidential Attachment IPUC 190, confidential file “APR10030374 - HTR 301 Gen Stator Rewind CONF” ii. Initial project budget was $9,893,620. iii. Initial proposed schedule • • • • • PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 190 iv. Please refer to Confidential Attachment IPUC 190, confidential file “SAP APR Approval List CONF”. (e) Please provide the following for the Baseline Construction Project Plan: i. Scope is the same as listed above with the addition of the following: a. Perform Loop Test i. Install loop cable ii. Perform loop test / thermovision scan of generator stator core iron iii. Monitor stator core per Siemens Energy Engineering Specs iv. Remove loop cable b. Repair Core Iron Hot Spots i. Etch hot spot areas ii. Mica insertion c. These two task items were performed several times to repair hot spot indications identified by loop test. Repairs included both core etching and mica insertions. ii. Single work breakdown structure (WBS) used for project SHTR/2022/C/020/STATOR – $12,410,104. iii. Initial schedule was • • iv. Project was extended due to core iron hot spots that were detected with post winding loop check. Schedule was Budget costs were increased ($2,651,654). v. Please refer to Confidential Attachment IPUC 190, confidential file “Stator Rewind Final Report Summary CONF”. vi. Please refer to Confidential Attachment IPUC 190, and the four confidential files beginning with “EWA” (which is an abbreviation for extra work order authorization). PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 190 (f) Please provide the following related to completion of the project: i. 2022) SHTR/2022/C/020/STATOR: (budget) $9,893,620 (actual) $12,410,104 ii. Initial schedule iii. Please refer to the Company’s response to subpart (e)iv above. vii. Schedule extension due to post winding installation core hot spot repairs. Budget cost increase due to hot spot repairs and additional worn parts replacements. Please refer to Confidential Attachment IPUC 190, and the four confidential files beginning with “EWA”. 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: Laren Huntsman Sponsor: Brad Richards PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 191 IPUC Data Request 191 Please provide the following information for the CCR Jim Bridger FGD Pond 3 project referenced on Attachment #55-1 of Response to Production Request No. 55. Please include any available workpapers with formula intact. If any of the information requested below cannot be provided or is not available, please explain why it is not available or cannot be provided. (a) Please provide a detailed explanation for the need of the project including the analysis justifying the need. (b) Please provide a list of all the potential alternatives the Company considered to fulfill the need and explain why the project was selected among the alternatives supported by the Company’s economic analysis (costs and benefits) comparing them. (c) If a RFP or RFQ was submitted, please provide the following information: i. A copy of the RFP or RFQ that was submitted; ii. A detailed explanation of the selection process including the scorecard and list of the criteria used to select the project; iii. The short-list bidder scorecard; and iv. A copy of the winning bid. (d) Please provide the approved Initial Project Plan including the following: i. Initial project scope; ii. Initial project budget; iii. Initial proposed schedule; and iv. Evidence that the Initial Project Plan and budget were approved at the appropriate level. (e) Please provide the following for the Baseline Construction Project Plan including the following: i. Baseline project scope; ii. Baseline project budget broken down by the WBS; iii. Baseline project schedule broken down by the WBS; iv. If the baseline construction project scope, budget, and/or schedule deviated from the Initial Project Plan, please explain the differences, explain the reason for the change, and provide evidence that the changes were approved at the appropriate level; v. Project status reports and action items; and vi. Contractor change orders. PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 191 (f) Please provide the following related to completion of the project: i. Baseline construction budget-to-actual comparison by the WBS and by year; ii. Baseline construction schedule-to-actual comparison by the WBS; iii. For any budget-to-actual cost overages by major WBS category that is over 5%, please explain the reason for the differences and provide evidence that the amount was approved at the appropriate level; and iv. Please explain any slips in schedule from the baseline construction schedule. Confidential Response to IPUC Data Request 191 Please refer to Confidential Attachment IPUC 191 which provides the documents responsive to this request, and to the Company’s responses to subparts (a) through (f) below: (a) Please refer to the Executive Summary starting on page 1 and the Key Issues starting on page 2 of the confidential document “Project Proposal - APR20008114 - JB FGD Pond 3 CONF ”. The main reason for the project is to comply with the EPA’s Coal Combustion Residual (CCR) rule (40 CFR Part 257). The economic model shows a 4-year payback in favor of this project based on the 2021 IRP model assumptions. (b) Please refer to the Alternatives Considered on page 10 of the confidential document “Project Proposal - APR20008114 - JB FGD Pond 3 CONF”. (c) Please refer to the Company’s responses to subparts i. through iv. below: i. Please refer to the RFX Documents CONF folder included in Confidential Attachment IPUC 191. The RFX Documents CONF folder includes three different components of the bidder package: commercial documents (scope of work and applicable documents), pricing documents, and safety documents which are required for the bidders to submit a bid for the project and confidential document. The confidential document “2. Exh A SOW - J7301_3_FGD POND 3_GWC PHASE 1_SPEC CONF” in the Commercial DOCS-R2 CONF folder is the scope of work. ii. Please refer to the confidential file “Populated Eval Matrix FGD Pond #3 JB RevB 5 2021 100721 R6 Final CONF” in the Confidential Attachment IPUC 191 for selection criteria and bid results. Ten bidders were included on the initial list. After the initial bids were received, three bidders were selected to compete in an e-auction. Searle Brothers PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 191 was finally selected as the lowest qualified bidder. Searle’s initial bid amount was $38,995,225 however this price was subsequently lowered following the result of an e-auction. The e-auction is a reverse auction process where the bidders are given another opportunity to bid on the project. After the e-auction, the initial project price was $35.9m (which is the sum of the base bid of $35.1m and the quality assurance bid of $788k). The base bid is provided as “SBC Final. Exhibit B1 Pricing Schedule (Final- post E-Auction, 10.15.21) CONF” in Searle Proposal 8-16-21 CONF folder and the quality assurance bid is provided as “SBC Final Exhibit B2 Pricing Schedule FGD Pond (10.15.2021) CONF” in the Searle Proposal 8-16-21 CONF folder. The e-auction results are also included as “E-Auction Results CONF” in the Attach IPUC 191 CONF folder. iii. Please refer to the Company’s response to subpart (c)ii above. iv. Please refer to the Company’s response to subpart (c)ii above. (d) Please refer to the Company’s response to subparts i. through iv. below: i. Please refer to the confidential document “2. Exh A SOW - J7301_3_FGD POND 3_GWC PHASE 1_SPEC CONF” in the Commercial DOCS-R2 CONF folder. ii. $63,242,786 total project budget ($42.6 million PacifiCorp share). iii. Please refer to page 22 of confidential document “Project Proposal - APR20008114 - JB FGD Pond 3 CONF”. iv. Please refer to confidential document “ApprovalAPR20008114_Detail_20211214193419.043_X_2024082013 5938.938_X CONF.” (e) Please refer to the Company’s response to subparts i. through vi. Below and Confidential Attachment IPUC 191: i. Please refer to confidential document “2. Exh A SOW - J7301_3_FGD POND 3_GWC PHASE 1_SPEC CONF” in the Commercial DOCS-R2 CONF folder. ii. Please refer to confidential file “FGD Pond #3 WBS Structure CONF” in the Attach IPUC 191 CONF folder. PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 191 iii. Please refer to Project Milestones on page 22 of the confidential document “Project Proposal - APR20008114 - JB FGD Pond 3 CONF”. Also see confidential document “FGD Pond 3 Construction Schedule CONF” for additional tasks for the WBS SJIM/2017/C/100/IMPSUM. Proposed Schedule for FGD Pond 3 Construction Support WBS Task / Milestone Date / Timeframe SJIM/2017/C/100/DP MLBR Draft Composite Liner Design Certification (40 CFR 257.72(c)) 1 Week After Construction Contract Award SJIM/2017/C/100/DP MLBR Final Composite Liner Design Certification (40 CFR 257.72(c)) 1 Week After Receipt of PacifiCorp Comments SJIM/2017/C/100/IM PSUM Draft Semi-Annual Progress Reports on FGD Pond 3 Construction April 8, 2022 / October 7, 2022 / April 7, 2023 SJIM/2017/C/100/IM PSUM Final Semi-Annual Progress Reports on FGD Pond 3 Construction April 29, 2022 / October 28, 2022 / April 28, 2023 SJIM/2017/C/100/IM PSUM Draft U.S. EPA CCR Rule Compliance Documents August 1, 2023 SJIM/2017/C/100/IM PSUM Final U.S. EPA CCR Rule Compliance Documents August 31, 2023 SJIM/2017/C/100/IM PSUM As-Built Drawings 4 Weeks After Substantial Completion iv. The greatest impact to scope, budget, and schedule was the condition of the pond bottom soil. Due to the limited time to dewater the pond, the base required significant time and materials for stabilization. The weather also greatly impacted the schedule with an unusual amount of rain in May and June, which caused delays with the liner deployment. The wind presented another challenge to the liner installation, so schedules were adjusted to install the liner during less windy times. Despite these challenges, the pond was completed and commissioned on time. Each change order was approved at the appropriate level as required in SAP. The approval limits are set in SAP and will not allow a requisition to be approved by those without approval authority. The overall project was under the approved APR limit, which was approved by Gary Hoogeveen. v. Please refer to Confidential Attachment IPUC 191, specifically folder “Weekly Status Report CONF”. vi. Several change orders were issued during the project, including the following. CO#1 – Cost escalation due to contract delay. PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 191 CO#2 – Backhoe charges to excavate around a spring that was discovered at the western edge of the pond. CO#4 – Haul rip rap for erosion control. CO#5 – Soil stabilization for pond bottom. CO#6 – Additional pond bottom stabilization and French drain to remove water. CO#7 – Additional pond stabilization. CO#8 – Liner expansion needed for anchor trench. CO#9 – Concrete ramp added. CO#10 – Installation of French Drain to dewater pond bottom. CO#11 – Installation of another French Drain to dewater pond bottom. CO#12 – French drain pump work. CO#13 – Additional pond bottom stabilization material. CO#14 – Add epoxy-coated rebar to ramps. CO#15 – Well development. CO#16 – Additional liner construction. (f) Please provide the following related to completion of the project: i. Please refer to Confidential Attachment IPUC 191, specifically file, FGD3 Budget v Actuals. ii. The major project milestone was to cease the receipt of FGD waste into FGD Pond 2. This milestone had a deadline of October 15, 2023. The FGD Pond 3 was commissioned on October 12, 2023, which also marked the end of sending FGD waste to FGD Pond 2. iii. Project was under budget. Please refer to confidential file “FGD3 Budget v Actuals CONF” in Confidential Attachment IPUC 191. iv. The critical tasks were completed on time, such that the pond was commissioned prior to the deadline. Some other work was delayed, such as the perimeter road development. The reason for the delay was due to the condition of the pond bottom, which required additional dewatering and stabilization. The schedule was also impacted by weather delays, so critical tasks were given greater priority in order to meet hard deadlines. 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: Ken Cutler PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 191 Sponsor: To Be Determined PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 202 IPUC Data Request 202 Please provide the following information for the U1 CSA Variable fee – CT1 - HGP for a total amount of $ 11,220,684 as referenced in Company’s Response to Production Request No. 15. Please include any available workpapers with formula intact. If any of the information requested below cannot be provided or is not available, please explain why it is not available or cannot be provided. (a) Please provide a detailed explanation for the need of the project including the analysis justifying the need. (b) Please provide a list of all the potential alternatives the Company considered to fulfill the need and explain why the project was selected from among the alternatives supported by the Company’s economic analysis (costs and benefits) comparing them. (c) Please provide the following information regarding all RFPs or RFQs associated with the development and construction of the RC plant: i. A copy of the RFP or RFQ that was submitted; ii. A detailed explanation of the selection process including the scorecard and list of the criteria used to select the project; iii. The short-list bidder scorecard; and iv. A copy of the winning bid. (d) Please provide the approved Initial Project Plan including the following: i. Initial project scope; ii. Initial project budget; iii. Initial proposed schedule; and iv. Evidence that the Initial Project Plan and budget was approved at the appropriate level. (e) Please provide the following for the Baseline Construction Project Plan including the following: i. Baseline project scope; ii. Baseline project budget broken down by the WBS; iii. Baseline project schedule broken down by the WBS; iv. If the baseline construction project scope, budget, and/or schedule deviated from the Initial Project Plan, please explain the differences, explain the reason for the change, and provide evidence that the changes were approved at the appropriate level; v. Project status reports and action items; and vi. Contractor change orders. PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 202 (f) Please provide the following related to completion of the project: i. Baseline construction budget-to-actual comparison by the WBS and by year; ii. Baseline construction schedule-to-actual comparison by the WBS; iii. For any budget-to-actual cost overages by major WBS category that is over 5%, please explain the reason for the differences and provide evidence that the amount was approved at the appropriate level; and iv. Please explain any slips in schedule from the baseline construction schedule. Confidential Response to IPUC Data Request 202 (a) Please refer to Confidential Attachment IPUC 202 and confidential document “APR10009803_Proj_Proposal CONF” which provides a copy of the project proposal document for the U1 CSA Variable fee – CT1 - HGP project. (b) No other alternatives were considered due to a contractual obligation with the supplier under the Contractual Service Agreement (CSA). (c) This is not applicable for this project because the project is completed pursuant to the terms of a long-term contract. (d) Please refer to the Company’s responses to subparts i. through iv. below: i. This project is to perform the hot gas path overhaul on combustion turbine 1 pursuant to the Contractual Service Agreement (CSA) between PacifiCorp and General Electric International, Inc. (GE) amended and restated as of January 15, 2016. Performing the necessary overhaul will result in the units being able to operate an additional before the next scheduled outage. The major inspection overhaul includes the removal and replacement of the following combustion program parts as outlined in the CSA: Program Parts FUEL NOZZLE ASMBY COMBUSTION LINERS TRANSITION PIECES BUCKETS: STAGE 1 BUCKETS: STAGE 2 BUCKETS: STAGE 3 NOZZLES: STAGE 1 NOZZLES: STAGE 2 NOZZLES: STAGE 3 PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 202 Program Parts SHROUDS: STAGE 1 SHROUDS: STAGE 2 SHROUDS: STAGE 3 ii. This project is in the approved 2022 budget for $11,664,460 excluding allowance for funds used during construction (AFUDC). CAPITAL EXPENDITURES - $000 - PACIFICORP SHARE PRIOR CY22 CY23 CY24 FUTURE TOTAL Budget (without AFUDC)- 11,664 - - 11,664 Budget Escalated (without AFUDC)- 11,664 - - - 11,664 APR Requested (without AFUDC)- 11,664 - - 11,664 Difference - - - - - - Requested AFUDC - 59 - - 59 TOTAL Requested Funds - 11,723 - - - 11,723 iii. This outage is anticipated to be for . Evidence that the Initial Project Plan and budget was approved at the appropriate level. iv. Please refer to the table below: PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 202 (e) Please refer to the Company’s responses to subparts i through vi below: i. Please refer to the initial project scope provided in the Company’s response to subpart (d) i. above. ii. The project is defined in one work breakdown structure (WBS) (OCLS/2022/C/010) in the budgeted amount of $11,526,950 excluding AFUDC. iii. The project is defined in one WBS (OCLS/2022/C/010), the schedule is PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 202 . iv. Please refer to the confidential signed change orders in Attach IPUC 202 CONF. v. Not Applicable vi. Please refer to the Company’s response from (e)iv. and the attached documents. (f) Please refer to the Company’s responses to subparts i. through vi. below. i. This project is in the approved 2022 budget for $11,664,460 excluding AFUDC. Actuals show us at $11,526,342 excluding AFUDC translating to the project coming in at $137,510 under budget. ii. The baseline construction schedule was estimated to be about . iii. N ot Applicable. iv. Repairs to the generator studs lead to an increase in the outage time by days. 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 PAC-E-24-04 / Rocky Mountain Power September 5, 2024 IPUC Data Request 202 Procedure No. 67 – Information Exempt from Public Review, and further subject to the Non-Disclosure Agreement (NDA) executed in this proceeding. Recordholder: Matt Murray Sponsor: To Be Determined 1 Joe Dallas (ISB# 10330) Rocky Mountain Power 825 NE Multnomah, Suite 2000 Portland, OR 97232 Telephone: 360-560-1937 Email: joseph.dallas@pacificorp.com Attorney for Rocky Mountain Power BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER FOR AUTHORITY TO INCREASE ITS RATES AND CHARGES IN IDAHO AND APPROVAL OF PROPOSED ELECTRIC SERVICE SCHEDULES AND REGULATIONS ) ) ) ) ) ) ) ) ) ) ) ) CASE NO. PAC-E-24-04 ATTORNEY’S CERTIFICATE CLAIM OF CONFIDENTIALITY RELATING TO DISCOVERY RESPONSES I, Joe Dallas, represent Rocky Mountain Power in the above captioned matter. I am a senior attorney for Rocky Mountain Power. I make this certification and claim of confidentiality regarding the response to the attached Idaho Public Utilities Commission Staff discovery request pursuant to IDAPA 31.01.01 because Rocky Mountain Power, through its response, is disclosing certain information that is Confidential and/or constitutes Trade Secrets as defined by Idaho Code Section 74-101, et seq. and 48-801 and protected under IDAPA 31.01.01.067 and 31.01.01.233. Specifically, Rocky Mountain Power asserts the Company’s response IPUC Data Request Nos. 190, 191, and 202 contain Company proprietary information that could be used to its commercial disadvantage. 2 Rocky Mountain Power herein asserts that the aforementioned responses contain confidential in that the information contains Company proprietary information. I am of the opinion that this information is “Confidential,” as defined by Idaho Code Section 74-101, et seq. and 48-801, and should therefore be protected from public inspection, examination and copying, and should be utilized only in accordance with the terms of the Protective Agreement in this proceeding. DATED this 5th day of September, 2024. Respectfully submitted, By__________________________ Joe Dallas Senior Attorney Rocky Mountain Power