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HomeMy WebLinkAbout20241010PAC to Staff 268-274.pdf RECEIVED Thursday, October 10, 2024 IDAHO PUBLIC UTILITIES COMMISSION _ ROCKY MOUNTAIN POWER A DIVISION OF PACIFICORP 1407 W North Temple, Suite 330 Salt Lake City, Utah 84116 October 10, 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-24-04 IPUC Set 17 (268-274) Please find enclosed Rocky Mountain Power's Responses to IPUC 171' Set Data Requests 268- 274. Also provided are Attachments IPUC 271, 272, 273 and 274. The Confidential Attachments are provided via BOX. 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 lancekae.isg insi hg t.com(C) Matthew Nykiel/ICL matthew.nykiel&amail.com Brad Heusinkveld/ICL bheusinkveld(&idahoconservation.org Thomas J. Budge/Bayer ti(&racineolson.com(C) Brian C. Collins/Bayer bcollins(&consultbai.com Greg Meyer/Bayer gmeyerkconsultbai.com Kevin Higgins/Bayer khig gins kenergystrat.com(C) Neal Townsend/Bayer ntownsendkenergystrat.com (C) Ronald L. Williams/PIIC rwilliams(&hawleytroxell.com Brandon Helgeson/PIIC bhelgeson(&hawleytroxell.com Bradley Mullins/PIIC brmullinskmwanalytics.com Val Steiner/PIIC val.steiner(a-)itafos.com Kyle Williams/PIIC williamsknasbyui.edu PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 268 IPUC Data Request 268 Referencing the Company's response to Staff Production Request No. 5, Attachment IPUC 5, please provide an explanation for the following cleanup projects, including the details of event, responsible parry, progress of clean up, and expected completion date. Please include any workpapers in excel format. (a) Portland Harbor Source Control. (b) Bridger Oil Spill (New Releases). (c) Bridger FGD Pond 1 Closure. (d) Dave Johnston Oil Spill. (e) Silver Bell/Telluride. (f) Naughton Plant-FGD Pond 2. (g) Ogden. Response to IPUC Data Request 268 (a) Portland Harbor Source Control: The Portland Harbor Superfund Site (PHSS)was added to United States (U.S.) Environmental Protection Agency's(EPA)National Priorities List (NPL) on December 1, 2000 (65 FR 75179). Since then, over 100 parties have been named by the EPA as potentially responsible parties (PRP) for cleanup action. The PHSS is an urban and industrial reach of the lower Willamette River located immediately downstream of downtown Portland and extending almost to the confluence with the Columbia River. On February 16, 2011, PacifiCorp received a general notice letter under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) indicating it had been named a PRP by the EPA for contamination at the PHSS. In its general notice letter to PacifiCorp, EPA identified properties presently and formerly owned or operated by PacifiCorp which may have contributed to contamination at the PHSS. PacifiCorp's main involvement in the PHSS is within the River Mile 11E Project Area, which is located near facilities currently or formerly owned or operated by PacifiCorp. The EPA is the lead regulatory agency for investigation and cleanup of sediment at the PHSS. The Oregon Department of Environmental Quality (DEQ) and the City of Portland are the lead regulatory agencies for identifying and addressing upland sources of contamination to the river. The upland area at RM11E was identified as a potential source of contamination to river sediments. PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 268 PacifiCorp entered into a Voluntary Agreement with the Oregon DEQ on January 14, 2009, to evaluate its upland properties. PacifiCorp completed source control evaluations at the PacifiCorp Albina Area Properties and the Knott Substation. In 2010 and 2011, PacifiCorp implemented source control measures at the Albina Substation and Knott Substation. In 2010, PacifiCorp became a member of the Participation and Common Interest (PCI) Group for the Portland Harbor Superfund Site. Along with approximately 100 other PRPs, and with EPA's encouragement, PacifiCorp is engaged in the PCI Group's voluntary effort to allocate cleanup liability and costs associated with the entire PHSS. In April 2013, PacifiCorp as well as five other PRPs associated with River Mile 11E entered into an Administrative Settlement Agreement and Order on Consent (ASAOC) with EPA to perform studies to inform the selection of the remedial alternative for River Mile 11E. The other PRPs at River Mile 11E include Cargill, Inc., the City of Portland, DIL Trust, Glacier Northwest, Inc., and Paramount Global (formerly ViacomCBS Inc.). These six parties are referred to as the RM11E Group. The 2013 ASAOC was amended in December 2017 to require the development of 100 percent design for the RM11E Project Area. Since April 2013, the RM11E Group has performed a series of extensive investigations to assess the extent of contamination at the RM11E project area to support remedial design. On June 30, 2023, the RM11E Group submitted the draft Preferred Alternatives Report (PAR) to EPA that presents an evaluation of remediation technologies for the RM11E Project Area, consistent with the EPA Record of Decision (ROD) and related guidance and concludes that sediment dredging and bank soil excavation will likely be the single remedial technology employed between River Mile 10.9 and 11.6. The PAR was approved by EPA on September 8, 2023 and serves as the 30 percent design for the RM11E project area. The RM11E Group is currently in the process of conducting additional sediment and geotechnical sampling and evaluations in preparation for the submission of a 60 percent design report to EPA in late 2025/early 2026. It is anticipated that the 100 percent design report will be submitted to EPA in 2026/2027. Implementation of the remedial action at the RM11E Project Area has not been scheduled. Following remediation of the PHSS, there will ongoing maintenance and monitoring requirements in perpetuity. (b) Bridger Oil Spill: Explanation of the project-_In 1993, plant personnel at the Jim Bridger power plant discovered a loss of fuel oil (diesel fuel#2) into the subsurface due to PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 268 one or more leaks in an underground pipeline. The pipeline was repaired, and a fuel oil recovery system was constructed and has been operating since June 1999. This project was reviewed and approved by the Wyoming Department of Environmental Quality (DEQ) Ground Water Pollution Control Program (GPC). Modifications and updates to the recovery system have taken place in the ensuing years. The semi-annual monitoring program consists of 38 monitoring wells. There are four active product recovery wells and three inactive recovery wells. As of December 28, 2023, the fuel oils recovery system has recovered approximately 151,820 gallons of fuel oil. The amount of free product being recovered from the recovery system is declining, indicating that the amount of recoverable free product is also declining. It is anticipated to begin the operating of the air sparge system in 2025 for five years, with semi-annual groundwater monitoring continuing for five additional years once the air sparging is deemed successful. Responsible party—PacifiCorp and Idaho Power Company(IPC). Expected completion date - End of 2035. (c) Bridger FGD Pond 1 Closure: Explanation of the project- The Jim Bridger power plant utilizes wastewater ponds to manage coal combustion residuals (CCR), including flue gas desulfurization (FGD) liquids from their emissions control processes. Groundwater impacts have been identified downgradient of FGD Pond 1 and FGD Pond 2 at the Jim Bridger power plant. This project includes the State of Wyoming permit required groundwater monitoring and reporting as a result of groundwater impacts from FGD Pond 1 and FGD Pond 2. The remediation of the impacts and the Coal Combustion Residual monitoring and reporting is managed under another environmental liability project. The closure of this project relies on the State of Wyoming receiving primacy from the Environmental Protection Agency and the State of Wyoming issuing PacifiCorp a permit for each CCR unit. When that occurs the State of Wyoming required sampling will cease. The Jim Bridger FGD Pond 1 and FGD Pond 2 permit applications are anticipated to be sent to the State of Wyoming in 2027. Responsible party—PacifiCorp and IPC. Expected completion date—2028. (d) Dave Johnston Oil Spill: PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 268 Explanation of the project- In September 2010, approximately 2,000 gallons of diesel fuel were released from an above ground storage tank into the secondary containment area at the Ignition Oil Area. The released fuel was recovered from the secondary containment area using a vacuum truck. Soil within the containment area was removed down to the clay liner and transported to the on-site Wyoming DEQ permitted petroleum contaminated soils area for proper disposal. PacifiCorp entered into the Wyoming DEQ Voluntary Remediation Program. The Wyoming DEQ concurred that PacifiCorp should conduct quarterly groundwater monitoring as proposed in the Site Characterization Report. Prior to initiating quarterly groundwater monitoring, PacifiCorp detected the loss of additional diesel fuel through inventory records in 2012. PacifiCorp reported the release to Wyoming DEQ and immediately began to investigate. In 2012, a light non-aqueous phase liquids (LNAPL) recovery system was installed consisting of four recovery wells, an enclosure housing all of the operational equipment for the recovery wells, and an above ground storage tank for recovered LNAPL. Petroleum hydrocarbons were detected during excavation work being performed to locate utilities in October 2014. An Interim Action Work Plan for impacted soil at the Fuel Pump Area was approved by Wyoming DEQ in April 2015 following a subsurface soil assessment. Toward the end of 2014 and beginning of 2015, PacifiCorp abandoned and demolished three large above ground storage tanks at the Bulk Storage Area. During the demolition and removal work,petroleum impacted soils were discovered in the secondary containment structure for the tanks. Investigations revealed that petroleum hydrocarbon impacted soils were found to be present throughout the secondary containment structure from the ground surface to the top of groundwater. In 2015 and 2016 the Interim Action Work Plan was implemented at the Former Fuel Pump Area and the Former Bulk Storage Tank Area. Impacted soil was excavated and treated on site using ex-situ chemical oxidation. The original Voluntary Remediation Project at the Ignition Oil Area was expanded to include the Former Pump Area and the Former Bulk Storage Tank Area. Responsible party—PacifiCorp. Progress of clean-up - Automated and manual LNAPL recovery operations continue in the Ignition Oil Area. Semi-annual groundwater monitoring will continue to occur at the Ignition Oil Area and Former Fuel Pump Area until PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 268 confirmation sampling is completed as part of plant closure. Semi-annual depth to product and depth to water measurements will continue in this area to ensure LNAPL does not exist. Expected completion date—2029. (e) Silver Bell/Telluride: Explanation of the project- The Silver Bell Tailings Impoundment is owned by PacifiCorp and is located in southwestern Colorado. The site is remote, at high elevation (approximately 9,000 feet above sea level), subject to heavy winter snow, and has no power or water supply. The tailings impoundment is an undeveloped, inactive mill tailings disposal site that has the potential to leach heavy metals and low pH discharge water. The impoundment contains an estimated range of between 90,000 to 117,000 cubic yards of mill tailings material that is now overlain by a vegetated cover system on the top surface with a cover soil on the side slopes. In 1999, PacifiCorp submitted a Voluntary Cleanup Plan (VCUP) application to the Colorado Department of Public Health and Environment, which was subsequently approved. Groundwater flows from above the site through the tailings impoundment and ultimately discharges into the receiving Howard Fork. PacifiCorp performed site characterization and reclamation activities to achieve acceptable erosional and geotechnical stability of the tailings material and to help reduce sediment and chemical impacts from the impoundment to surface water quality in the Howard Fork. PacifiCorp has also installed additional Best Management Practices (BMP) for increasing the pH in seepage being discharged from the tailings impoundment, including installation of an Anoxic Limestone Drain. PacifiCorp has also installed, maintained, and enhanced a treatment system and settling ponds. Responsible party—PacifiCorp. Progress of clean-up - PacifiCorp is currently in litigation with CDPHE regarding aspects (pH limits) of the October 2020 Discharge Permit that PacifiCorp has deemed infeasible. PacifiCorp has submitted a Discharge Permit Modification application to CDPHE to align iron discharge limits with seasonal run-off that drastically changes discharge flows outside of PacifiCorp's control. PacifiCorp is also modeling the Howard Fork to allow a permit modification for Whole Effluent Toxicity test limits that PacifiCorp is unable to meet due to reasons of treatment infeasibility. Expected completion date - This project will be ongoing in perpetuity. (f) Naughton Plant—FGD Pond 2: PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 268 Explanation of the project- The Naughton power plant utilizes wastewater ponds to manage CCRs. CCR regulations, 40 CFR 257, require that CCR impoundments meet certain closure standards when closing with CCR waste in place as is the case with Naughton FGD Pond 2. One of these requirements is evaluating any groundwater impact from CCR material in the closed pond which requires ongoing monitoring of groundwater upgradient and downgradient of CCR units. Groundwater impacts have been identified downgradient of FGD Pond 1 and FGD Pond 2 at the Naughton power plant. CCR regulations require that corrective measures be taken to demonstrate compliance with groundwater protection standards. PacifiCorp has installed a recovery trench downgradient of FGD Pond 2 and a horizontal drain capture system below the FGD Pond 2 was completed and in operation in 2022. It is expected that groundwater impacts will diminish within 13-15 years and the liability will be closed after three consecutive years of groundwater sampling with no groundwater protection standards. Responsible party—PacifiCorp. Expected completion date - 2040-2042. (g) Ogden: Explanation of the project- The Ogden Gas Company site is the location of a former coal gasification facility which operated from 1889 to 1929. The Ogden Gas Company, which began operation in 1889, was originally owned by a predecessor to PacifiCorp and was sold to a predecessor of Questar Gas Company who ceased its operations in 1929 and decommissioned the facility. Site investigations since 1994 have demonstrated the presence of residual contamination related to former gas plant operations. Investigation and remediation of the Ogden Gas Company site is taking place under the oversight of the Utah Department of Environmental Quality(DEQ), Division of Environmental Response and Remediation, Voluntary Cleanup Program. A 2014 remediation effort in the former gashouse area removed tar wells, piping, and other subsurface features associated with the gashouse as well as shallow contaminated soils to depths of 12-16 feet below ground surface. As part of the excavation effort, a bentonite slurry wall was placed to a depth of 32 feet which encircles the 2014 excavation area and impedes groundwater flow and contaminant migration through the former gashouse area. Due to limiting factors during the excavation effort, some soil contamination remains in place. Quarterly and more recently semi-annual groundwater monitoring has occurred since February 2016. Additional soil vapor and indoor and ambient air investigations have occurred in 2018, 2020, and 2023. Initial estimates assumed the site would be able to complete a risk-based closure in 2026. Based on recent investigations, PacifiCorp is working with DEQ/ DERR/VCP to develop plans that will allow a risk-based closure of the PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 268 liability site. DEQ /DERR/VCP will likely require additional monitoring wells and studies which could prolong the 2026 estimated closure date. Responsible party—PacifiCorp, Questar Gas Company,Naylor Family Investment and Ogden Auto Body, Inc. Expected completion date—2026. Recordholder: Jackie Wetzsteon/ Scott Wetzel Sponsor: To Be Determined PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 269 IPUC Data Request 269 Referencing the Company's response to Staff Production Request No. 11, Attachment IPUC 11, please provide an explanation for the following Injuries and Damage claims. Please provide invoices and supporting documentation for each claim. (a) Claim Number: 40002186. (b) Claim Number: 70002333. (c) Claim Number: 40002193. (d) Claim Number: 40002190. (e) Claim Number: 40002203. (f) Claim Number: 70002353. Response to IPUC Data Request 269 (a) Please refer to Confidential Attachment IPUC 269-1. (b) Claim payment for fire damage to an brand new apartment building caused by Pacific Power electrical installation error. Please refer to Confidential Attachment IPUC 269-2. (c) Please refer to Confidential Attachment IPUC 269-3. (d) Please refer to Confidential Attachment IPUC 269-4. (e) Please refer to Confidential Attachment IPUC 269-5. (f) Claim payment for damages to a hotel caused by failed Pacific Power equipment which caused equipment damage in a hotel. Please refer to Confidential Attachment IPUC 269-6. 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. Recordholder: Marlow Voss /Landon Gobelman Sponsor: Mariya Coleman PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 270 IPUC Data Request 270 With reference to Exhibit No. 48, Tab 4.2.2, please explain the difference between the Annual Incentive Plan, and Bonuses and Awards. Please include in your response specific metrics or merits used to determine employee bonuses and award amounts. Please include workpapers in excel format to justify your response. Response to IPUC Data Request 270 Please refer to Confidential Attachment IPUC 177 and Confidential Attachment IPUC 270 which provides information regarding PacifiCorp's Annual Incentive Plans (AIP) for 2023 and 2024, respectively. Please also refer to Confidential Attachment IPUC 270 which provides information regarding PacifiCorp's STARS Awards. Performance awards, given at the discretion of management, are payments in recognition of outstanding work. All employees are eligible to receive this award. 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: Shelley Zoller Sponsor: Julie Lewis PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 271 IPUC Data Request 271 Referencing the Company's response to Staff Production Request No. 4, Attachment IPUC 4-8, please explain the increase in Administrative and General Salaries of approximately $8.9 million from Calendar Year 2022 to 2023. Please include work papers in excel format to justify your response. Response to IPUC Data Request 271 Administrative and General (A&G) salaries increased approximately $8.9 million from calendar 2022 to 2023 due to increased headcount, annual merit, higher employer 401k expense, payroll tax and other costs partially offset by lower severance and long-term disability expense. In addition, 2022 expense included a favorable deferred compensation adjustment. Please refer to Attachment IPUC 271 which provides details by general ledger(GAL) account. Recordholder: Sheila Diver Sponsor: Nikki Kobliha PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 272 IPUC Data Request 272 Referencing the Company's response to Staff Production Request No. 4, Attachment IPUC 4-8, the Company's Outside Services Employed increased from approximately $41.1 million in 2022 to approximately $49.2 million in 2023. Please provide a listing of all expenses included in the $49.2 million charged to the Company's jurisdiction and show how those amounts were allocated. Response to IPUC Data Request 272 Please refer to Attachment IPUC 272. Recordholder: Sheila Diver Sponsor: Shelley McCoy PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 273 IPUC Data Request 273 Please provide a copy of the Company's policy for corporate aircraft use. Response to IPUC Data Request 273 Please refer to Attachment IPUC 273. Recordholder: Carrin Larsen Sponsor: To Be Determined PAC-E-24-04/Rocky Mountain Power October 10, 2024 IPUC Data Request 274 IPUC Data Request 274 Please provide a copy of the flight logs for the Company aircraft in 2023. Response to IPUC Data Request 274 Please refer to Attachment IPUC 274. Recordholder: Maxwell Yamagishi Sponsor: To Be Determined Joe Dallas (ISB# 10330) Rocky Mountain Power 825 NE Multnomah, Suite 2000 Portland, OR 97232 Telephone: 3 60-5 60-193 7 Email:joseph.dallas@pacificorp.com Attorney for Rocky Mountain Power BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. PAC-E-24-04 IN THE MATTER OF THE ) APPLICATION OF ROCKY ) ATTORNEY'S CERTIFICATE MOUNTAIN POWER FOR ) CLAIM OF CONFIDENTIALITY AUTHORITY TO INCREASE ITS ) RELATING TO DISCOVERY RATES AND CHARGES IN IDAHO ) RESPONSES AND APPROVAL OF PROPOSED ) ELECTRIC SERVICE SCHEDULES ) AND REGULATIONS ) 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' response to IPUC Set 17 Company proprietary information that could be used to its commercial disadvantage. 1 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 10ffi day of October, 2024. Respectfully submitted, By Joe Dallas Senior Attorney Rocky Mountain Power 2