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HomeMy WebLinkAbout20240918PAC to Staff 223_225-228.pdf 1407 W North Temple, Suite 330 Salt Lake City, Utah 84116 September 18, 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 12 (217-240) Please find enclosed Rocky Mountain Power’s Responses to IPUC 12th Set Data Requests 223 and 225-228. 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 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 RECEIVED Wednesday, September 18, 2024 IDAHO PUBLIC UTILITIES COMMISSION PAC-E-24-04 / Rocky Mountain Power September 18, 2024 IPUC Data Request 223 IPUC Data Request 223 Regarding the Company’s REC Option Program, please answer the following: (a) Please explain if there are any controls that prevent program participants from being able to retire more RECs than they currently receive in the form of REC revenue. (b) Please explain if there are any controls that prevent non-participants from receiving less REC revenue than they currently receive. Response to IPUC Data Request 223 (a) As described in the direct testimony of Company witness, Craig M. Eller for the proposed renewable energy credit (REC) Option Program, the Company plans to retire RECs on behalf of REC Option Program participants. Where the Company has entitlement to RECs, the Company allocates the RECs to the states based on the system generation (SG) allocation factor. Once the Open Enrollment period for the REC Option Program closes, the Company will be able to calculate the exact number of RECs to be retired on behalf of the participants and the needed number of RECs will be set aside for future retirement before any RECs sales are conducted. This will keep the participants’ share of RECs separate from the share of RECs to be marketed on behalf of Idaho customers not participating in the REC Option. Therefore, the retirement of RECs for REC Option Program participants would not receive more RECs than they would in the form of REC revenue. (b) The Company does not anticipate any adverse impact to non-participating customers because Idaho’s remaining share of RECs that are not used for the proposed REC Option Program will continue to be marketed and sold on behalf of non-participating customers. The Company has designed the REC Option Program to minimize any impact on the volume of RECs sold. For example, the Company retains the right to determine which renewable resource RECs will be retired on behalf of the program participants. This allows the Company to optimize the RECs to preserve the Company’s ability to monetize RECs for the non-participating customers. Recordholder: Teri Ikeda / Justin Waterman Sponsor: Craig Eller PAC-E-24-04 / Rocky Mountain Power September 18, 2024 IPUC Data Request 225 IPUC Data Request 225 Regarding the Company’s REC Option Program, please provide the Company’s method of calculating the percentage of participants’ load available for REC retirement each Program Year. Please describe how the Company plans to update the calculation as the Company’s resource portfolio changes. Response to IPUC Data Request 225 As described in the direct testimony of Company witness, Craig M. Eller, customers interested in participating in the renewable energy credit (REC ) Option Program would sign up during the Open Enrollment Period. After the Open Enrollment Period closes, the Company will calculate the prior year's load of the participants enrolled in the REC Option Program and multiply the aggregated load by 20 percent. The 20 percent is based on the amount of renewables in the Company’s resource portfolio. Note: The Company set the initial REC Option Program percentage to 20 percent for the first program year and will review the REC Option Program percentage if the amount of renewables in the Company’s resource portfolio change significantly. Recordholder: Teri Ikeda Sponsor: Craig Eller PAC-E-24-04 / Rocky Mountain Power September 18, 2024 IPUC Data Request 226 IPUC Data Request 226 Referring to proposed Electric Service Schedule No. 74, Special Condition No. 2, please explain the Company’s criteria and processes for selecting RECs to be retired on behalf of the Program. Response to IPUC Data Request 226 As described in the direct testimony of Company witness, Craig M. Eller, the Company’s renewable energy mix includes various technology types such as wind, solar, hydro, geothermal, biogas and biomass. The Company will determine which renewable energy credits (REC) it will retire from a balanced portfolio of renewable resources within its system and the REC distribution within the categories will be done in a manner that is efficient and minimizes administrative burden on the REC Option Program. For example, instead of choosing a few RECs from every wind facility, the Company may select RECs from one or two wind facilities. If certain resource categories lack sufficient RECs, other resource categories may be utilized and adjusted as needed. The total number of RECs to be retired for the REC Option Program will remain unchanged. Recordholder: Teri Ikeda Sponsor: Craig Eller PAC-E-24-04 / Rocky Mountain Power September 18, 2024 IPUC Data Request 227 IPUC Data Request 227 Page 4 of Eller’s Direct Testimony states that the Company has been approached by customers that are interested in making renewable energy claims and the retirement of RECs. Please provide the results of any surveys administered by the Company for customers seeking out REC retirement programs, if any. Response to IPUC Data Request 227 The Company has not conducted any surveys for customers seeking out renewable energy credit (REC) retirement programs. Recordholder: Craig Eller Sponsor: Craig Eller PAC-E-24-04 / Rocky Mountain Power September 18, 2024 IPUC Data Request 228 IPUC Data Request 228 Regarding the Company’s REC Option Program, please explain the Company’s criteria and processes for selecting RECs that are sold on behalf of Idaho customers. Response to IPUC Data Request 228 For the proposed renewable energy credit (REC ) Option Program, the RECs selected for the REC Option Program will be based on a percentage of the participating customers’ aggregated load data in the calendar year immediately preceding the REC Option Program year. Additionally, the volume of RECs selected will include resources from each fuel type in the Company’s marketable portfolio. Recordholder: Marcie Hundis Sponsor: Craig Eller