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HomeMy WebLinkAbout20241023PAC to Staff 277-280.pdf RECEIVED Wednesday, October 23, 2024 IDAHO PUBLIC UTILITIES COMMISSION _ ROCKY MOUNTAIN POWER A DIVISION OF PACIFICORP 1407 W North Temple, Suite 330 Salt Lake City, Utah 84116 October 23, 2024 Monica Barrios-Sanchez Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A Boise, ID 83714 monica.barriossanchez(a�puc.idaho.gov SecretgUgpuc.idaho.gov RE: ID PAC-E-24-04 IPUC Set 19 (277-280) Please find enclosed Rocky Mountain Power's Responses to IPUC 19th Set Data Requests 277- 280. The Confidential Attachments IPUC 279 and 280 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 elogechohawk.com(C) Lance Kaufman/IIPA lanceAae isg insi hg t.com(C) Matthew Nykiel/ICL matthew.nykiel(&gmail.com Brad Heusinkveld/ICL bheusinkveldgidahoconservation.org Thomas J. Budge/Bayer tjgracineolson.com(C) Brian C. Collins/Bayer bcollinsgconsultbai.com Greg Meyer/Bayer gme ergconsultbai.com Kevin Higgins/Bayer khigginsgenergystrat.com(C) Neal Townsend/Bayer ntownsendgeneraystrat.com(C) Ronald L. Williams/PIIC rwilliams(cr�,hawleytroxell.com Brandon Helgeson/PIIC bhel_eg songhawleytroxell.com Bradley Mullins/PIIC brmullins&mwanalytics.com Val Steiner/PIIC val.steiner(cr�,itafos.com Kyle Williams/PIIC williamsk(c�r�,byui.edu PAC-E-24-04/Rocky Mountain Power October 23, 2024 IPUC Data Request 277 IPUC Data Request 277 Please provide the Company's cost-assignment policy when a customer requests a large load increase that requires a new or upgraded line extension at transmission level voltages. The discussion should include the following issues: (a) Please explain the Company's policy for allocating the project costs between direct assigned to the customer and network-assigned to all ratepayers; (b) Please explain how line extension allowances are determined, how the Company recovers revenue for those allowances, and how the Company accounts for the additional new revenue from the customer; (c) Please explain if and how the above policies differ if the requesting customer is a transmission and interconnection customer such as a municipal power agency; and (d) Please explain if and how the above policies differ if the load increase is caused by the collective impact of small customer growth. Response to IPUC Data Request 277 (a) For large customers, whether a facility is direct-assigned or is considered to be a network upgrade is dependent, respectively, on whether a facility is being built for the sole use and benefit of the customer requesting service or whether the facility will be integrated with and support the Company's transmission and distribution networks for the general benefit of all users of such networks. Main grid network upgrades or Western Electricity Coordinating Council (WECC) critical facilities are paid for by the Company in entirety and incorporated into rate base. (b) Please refer to Rule 12.3.a. The Company grants customers taking service at 46,000 volts or greater an extension allowance of the meter, current transformers and potential transformers necessary to measure the customer's usage. Large customers pay facilities charges to recover the cost of line extension facilities paid for with an allowance. The Company interprets "additional new revenue"to mean line extension advance, or contributions in aid of construction(CIAC). Based on the foregoing interpretation, the Company responds as follows: For ratemaking purposes, CIAC reduces the associated rate base. (c) Costs for large load increases on the transmission system from a Network Customer taking Network Integration Transmission Service (NITS)under the Company's Open Access Transmission Tariff(OATT) Section III are PAC-E-24-04/Rocky Mountain Power October 23, 2024 IPUC Data Request 277 assigned based on the definitions of Direct Assigned Facilities and Network Upgrades found in the Company's OATT. (d) The Company interprets this question to refer to subpart(a) of this data request. The Company further interprets this question to refer to growth of retail customer loads served by a Network Customer taking NITS under the Company's OATT Section III. Each Network Customer has the obligation to provide annual load and resource information updates as described in Sections 29.2(ix) and 31.6 of the GATT. Based on the foregoing interpretations,the Company responds as follows: Provided the Network Customer has included the projected load increases caused by the collective small retail customer growth in the annual load and resource update, and the load increase is not a material change as defined in Section 31.6 of the OATT and clarified in Business Practice#9 (https://www.oasis.oati.com/woa/docs/PPW/PPWdocsBP9.pdf), the Company will include the collective load increases in the Attachment K planning process, and as part of the Company's Local Transmission System Plan, and have cost responsibility to construct and place into service sufficient electric facilities to serve the projected load increases. Recordholder: Nick Highsmith/Kris Bremer/ Scott Beyer Sponsor: Shelley McCoy/Rick Vail PAC-E-24-04/Rocky Mountain Power October 23, 2024 IPUC Data Request 278 IPUC Data Request 278 Please provide the Company's cost-assignment policy when it executes a generation interconnection request. Please explain how the Company allocates the project cost between direct-assigned to the generator, and network-assigned to all ratepayers. Response to IPUC Data Request 278 The Company assigns costs based on the relevant jurisdictional tariff requirements which most commonly is defined in the Company's Open Access Transmission Tariff(GATT) which contains definitions of cost allocation for direct assigned facilities and network upgrades. Recordholder: Kris Bremer Sponsor: Rick Vail PAC-E-24-04/Rocky Mountain Power October 23, 2024 IPUC Data Request 279 IPUC Data Request 279 Please provide the following information about the "TJOR/2018/C/003 - C7 Data Centers Load Increase"project: (a) Please provide the initial Appropriation Request(APR) document and subsequent changes; (b) Please provide the current project schedule, showing the major work breakdown structure, the current progress, and the critical path for substantial completion; (c) Please explain how much of the project budget was allocated between direct- assigned and network-assigned, and the Company's basis for that allocation; (d) Please explain if a line extension allowance was granted to the customer, and if so,provide the worksheet calculations for that allowance; and (e) Please explain if the network-assigned costs will be offset by any corresponding sources of revenue for the network ratepayers, and if so, please explain the method used. Response to IPUC Data Request 279 (a) Please refer to Confidential Attachment IPUC 279. (b) The "TJOR/2018/C/003 - C7 Data Centers Load Increase"project was completed on June 27, 2023 and therefore does not have a current project schedule. (c) The project budget was 100 percent network upgrade. 100 percent of the improvements needed for this project would benefit the system and not just the customer. (d) The customer was not given a line extension allowance. (e) The network assigned costs were offset by the customer's contributions in aid of construction(CIAC) for their proportionate share of the network upgrades. 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. PAC-E-24-04/Rocky Mountain Power October 23, 2024 IPUC Data Request 279 Recordholder: Russell Updike Sponsor: Shelley McCoy PAC-E-24-04/Rocky Mountain Power October 23, 2024 IPUC Data Request 280 IPUC Data Request 280 Please provide the following information about the "TIUT/2020/C/004 - Q0155 DAMPS Heber Light& Power" project: (a) Please provide the initial Appropriation Request("APR") document and subsequent changes; (b) Please explain how much of the project costs were allocated between direct- assigned and network-assigned, and the Company's basis for that allocation; and (c) Please explain if the network-assigned costs will be offset by any corresponding sources of revenue for the network ratepayers, and if so, please explain the method used. Response to IPUC Data Request 280 (a) Please refer to Confidential Attachment IPUC 280 which provides the following documents: • APR 24019037 Q0155 Heber 2nd POD approved 07-27-2021 CONF. • APR 94013447 Q0155 Heber 2nd POD approved 08-03-2023 CONF. (b) PacifiCorp determines direct assigned costs and network upgrade costs based on the definitions in its Open Access Transmission Tariff(GATT). Direct assigned costs were $639,904 and network upgrade costs were $6,818,021. Please refer to Confidential Attachment IPUC 280, specifically"APR 94013447 Q0155 Heber 2nd POD approved 08-03-2023 CONF". (c) PacifiCorp's current transmission formula rate (included in PacifiCorp's GATT) was approved by the Federal Energy Regulatory Commission(FERC) in Docket ERI 1-3643-000. The formula rate is a fixed method/template for calculating a rate based on defined inputs. The Company's transmission formula rate is updated annually with the annual transmission revenue requirement(ATRR) that represents the annual total cost of providing firm transmission service over the test year. The ATRR calculation incorporates all transmission system investments by the Company, a return on rate base, income taxes, expenses (including operations and maintenance (O&M)), and certain revenue credits, among other specific elements and adjustments. Transmission assets, including new transmission capital and transmission network upgrades, are included in the ATRR, weighted by months in service. The ATRR is converted into a rate by dividing the ATRR by firm transmission demand, and this wheeling rate is charged to all third-party transmission customers. PAC-E-24-04/Rocky Mountain Power October 23, 2024 IPUC Data Request 280 Generation(interconnection) is typically added when a customer anticipates a need or growth in load or seeking to sell the output. Any network interconnection cost will increase the rate base and add to the revenue requirement shared by all network customer as required by FERC rules. PacifiCorp does not collect revenues on generation interconnections, but any load increase over time, or if a customer utilized point-to-point(PTP) transmission service, will be the source of additional revenues to help cover the network upgrade costs. 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: Eva Kwitman/Ernie Knudsen Sponsor: Rick Vail 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 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's response to IPUC Set 19 contains 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 23rd day of October, 2024. Respectfully submitted, By Joe Dallas Senior Attorney Rocky Mountain Power 2