20171204Avista to Staff 9-12.pdf

ldaho Pubric uriliues Commission
Oflice of the SecretaryHECEIVED
DEC 0 tr 2017 frwstfr
IPUC (Hanian)
;orp,Boise, ldaho
December 4,2017
Idaho Public Utilities Commission
472W. Washington St.
Boise,lD 83702-0074
Attn: Daphne Huang
Deputy Attorney General
Re: Production Request of the Commission Staff in Case No. AVU-E-I7-08
Dear Ms. Huang,
Enclosed are Avista's responses to IPUC Staffs production requests in the above referenced
dockets. Included in this mailing are the original and two paper copies of Avista's responses to
production requests: Staff 9 - 12. Also enclosed on three separate CD's are copies of Avista's
responses to the production requests. The electronic versions of the responses were emailed on
t2l04lt7.
Also included both on paper and on a separate CD are Avista's CONFIDENTIAL responses to PR
9C, and lzc. This response contain TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and is separately filed under IDAPA 3 I .01 .01, Rule 067 and 233,
and Section 9-340D,Idaho Code. It is being provided under a sealed separate envelope, marked
CONFIDENTIAL.
If there are any questions regarding the enclosed information, please contact Paul Kimball at (509)
495-4584 or via e-mail at [e-mail]
Sincerely,
*7
Paul Kimball
Regulatory Analyst
Enclosures
CC (Email):
Avista Corp.
1411 East Mission P.O.Box3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 800-727-9170
AVISTA CORPORATION
RESPONSE TO REQUEST F'OR INFORMATION
JURISDICTION: IDAHO
CASE NO: AVU-E-17-08
REQUESTER: IPUCTYPE: Production Request
REQUEST NO.: Staff - 9
DATE PREPARED:
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
ty27t20t7
N/A
James Gall
Energy Resources
(s09) 49s-2189
REQUEST:
Pages l2-2 and l2-3 indicate that operating costs for the entire Colstrip plant are expected to
increase when Units I and 2 close. Please describe how these increased operating costs were
included when the retirement dates for Units 3 and 4 were modeled. In addition, please provide
the values used for the increased operating cost in each retirement scenario and an explanation for
how the increased operating cost increase numbers were determined.
RESPONSE:
Please see Avista's response 9C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately filed under
IDAPA 31.01.01, Rule 067 and 233,and Section 9-340D,Idaho Code.
Upon closure of units I & 2, the common O&M costs associated with Colstrip operations will
increase as the allocation of plant costs will reduce from four units to two. The increase in common
O&M costs for units 3 & 4 is estimated to be $5.5 million (2014 dollars), which was developed by
one of the owners of units I &2. Avista's share of the increased common O&M costs would be
l5%. h is important to note that the total plant common operating costs are not increasing as a
result of the closure of units I &2. Rather, the existing common operating costs, some of which
were allocated among four units, will then be allocated among only units 3 & 4.
Staff PR_9C Confidential Attachment A includes the annual payment forecast for each Colstrip
related scenario. Upon review of this data, the costs in the 2023 shutdown scenario were
inadvertently not removed until2030. Since the original analysis showed it was more economic to
shut the plant down to avoid the high costs, this correction makes no impact on the conclusion.
Further, in the event units 1 & 2 shut down, all scenarios assume a $10 million dollar capital
payment to transition the plant from four units to two operating units in 2022. This payment is
included in all scenarios.
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AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
RECEIVED
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-17-08
IPUC
Production Request
Staff - 10
DATE PREPARED: lll27l20l7WITNESS: .?NITEC:U
PH 3: 22
RESPoNDER: Jaq.gg.,Q{f; iJ BLtCDEPARTMENT:, ;.pnffi'.ffi9wf,S$SlONTELEPHONE: [phone]
REQUEST:
Please provide the $/kW - year value for deferred T&D. 2017 Electic IRP at 5-14.
RESPONSE:
The values are included in table 5.4 of the 2017 IRP, page 5-14. For convenience the table is also
provided below. The transmission $/kW-year is $13.77, and distribution is $15.95 per kW-year.
Washinqton $294,988,593 $675,072,411
$153,799,772 $348,486,297ldaho
$448,788,365 $1,023,558,708Total
Revenue Requirement $448,859,497 $1,099,1 86,748
1,693 1,693Peak Load (MW)
$265 $649Current $/kW
$13.77 $15.95Levelized Cost
$29.72Total Levelized cost
Transmission Net
Book Value
Distribution Net
Book Vale
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-17-08
IPUC
Production Request
Staff - I I
DATE PREPARED
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
tU27l20t7
N/A
James Gall
Energy Resources
(s09) 49s-218e
REQUEST:
Please explain why Avista does not conduct energy efficiency audits of the Colstrip generation
plant. 2017 Electric IRP at 5-14.
RESPONSE:
Avista only studied resources the Company owns a majority interest in. Given its minority interest
in Colstrip, the Company could not perform such a study absent approvals by the ownership.
Further, the operator of the project o'Talen" has replaced equipment in the past for efficiency gains,
including Variable Frequency Drives to improve plant efficiency.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-17-08
IPUC
Production Request
Staff - 12
DATE PREPARED: lll27l20l7WITNESS: N/A
RESPONDER: James Gall
DEPARTMENT: Energy ResourcesTELEPHONE: [phone]
REQUEST:
Please provide the following cost information in table form for each of the resources the Company
modeled in its 2017 IRP to meet future resource needs:
a. Type of Resource, Technology
b. Nameplate (MWac)
c. Nameplate (MWh for storage resources)
d. Levelized Energy Costs ($/lvtWnl
e. Levelized Capacity Costs ($/kW-mo.)f. Plant Capital ($/kW): Engineering, Procurement & Construction, Other Owner's Costs
s. Fixed O&M ($/kW-mo.)
h. Variable O&M ($A,IWh)
i. Transmission Capital ($lkW;j. Annual Capacity: Annual Capacity Factor (AC- AC,%)k. Economic Life: Yearsl. Integration Charge ($/MWh)
m. Heat Rate (Btu/kWh)
RESPONSE:
Please see Avista's response 12C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately filed under
IDAPA 31.01.01, Rule 067 and233,and Section 9-340D,Idaho Code.
Staff PR_I2C Confidential Attachment A contains the requested data.
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