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Home My WebLink About20110322IPC Objection to NIPPC 5, 6.pdfDONOVAN E. WALKER Lead Counsel dwalkertãidahopower.com RECElìlf:::-ì "' ,,,,; :1.../ 1SIDA~POR~ An IDACORP Company March 21,2011 VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilties Commission 472 West Washington Street P.O. Box 83720 Boise, Idaho 83720-0074 Re: Case No. GNR-E-11-01 IN THE MATTER OF THE COMMISSION'S INVESTIGATION INTO DISAGGREGA TlON AND AN APPROPRIATE PUBLISHED AVOIDED COST RATE ELIGIBILITY CAP STRUCTURE FOR PURPA QUALIFYING FACILITIES Dear Ms. Jewell: Enclosed for filing please find an original and three (3) copies of Idaho Power Company's Objections to Production Requests Nos. 5 and 6 of the Northwest and Intermountain Power Producers Coaliion's First Production Request to Idaho Power Company, Avista Corporation and Rocky Mountain Power in the above matter. Very truly yours, ~an:walk~r -: &T DEW:csb Enclosures 1221 W. Idaho St. (83702) P.O. Box 70 Boise, ID 83707 DONOVAN E. WALKER (ISB No. 5921) LISA D. NORDSTROM (ISB No. 5733) Idaho Power Company P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 dwalkerCãidahopower.com InordstromCãidahopower.com Attorneys for Idaho Power Company Street Address for Express Mail: 1221 West Idaho Street Boise, Idaho 83702 RECE/VfÐ1 -"."-, 2011 HAR 2/ pu fl 4: 52 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE COMMISSION'S ) INVESTIGATION INTO DISAGGREGATION ) AND AN APPROPRIATE PUBLISHED ) AVOIDED COST RATE ELIGIBILITY CAP ) STRUCTURE FOR PURPA QUALIFYING )FACILITIES. ) ) ) ) ) ) ) ) ) CASE NO. GNR-E-11-01 IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER Idaho Power Company ("Idaho Powet' or "Company") objects to Production Requests Nos. 5 and 6 of the Northwest and Intermountain Power Producers Coalition's First Production Request to Idaho Power Company, Avista Corporation, and Rocky Mountain Power dated March 7, 2011, as follows: IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER-1 REQUEST FOR PRODUCTION NO.5: For the purpose of the following request assume guaranteed minimum capacity of 50 MW wind project over 20 year period, with an on-line date of January 1, 2012, that would be added to your system using the "IRP Methodology" as approved by the Idaho Public Commission in Order No. 26576 in Docket IPC-E-95-09. Please calculate the estimated avoided costs, in the following format: (a) on a $/MWh basis levelized over the 20 year contract period (b) on a non-Ievelized $/MWh basis annually over the 20 year contract period, (c) on a $/MWh basis seasonal rates over the 20 year contract period, (d) for (a) through (c), separate the avoided cost between the capital and energy components. OBJECTION TO REQUEST FOR PRODUCTION NO.5: Idaho Power objects to Northwest and Intermountain Power Producers Coalition's ("NIPPC") Request for Production NO.5. Idaho Power needs additional information in order to be able to answer this Request. Specifically, in order to calculate an avoided cost price for a wind resource as requested, Idaho Power wil need the following information: (1) nameplate capacity; (2) hourly energy shape for at least every hour for a one-year period; (3) estimated capacity factor; and (4) on-line date. The response to this Request was prepared by Randy Allphin, Senior Energy Contracts Coordinator, Idaho Power Company, in consultation with Donovan E. Walker, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER-2 REQUEST FOR PRODUCTION NO.6: In support of the last response, please provide supporting data, in electronic format where possible, the source of the values assumed, workpapers, notes, and an explanation why particular values were assumed. Specifically, please provide: (a) The inputs to the power supply model used, including but not limited to: (i) Fuel costs for each year of the 20 years for: Coal, Natural Gas, and Other. (ii) Fixed and Variable O&M costs for each year of the 20 years, (iii) Capacity factors, (a) For existing resources, (b) For the modeled wind resource. (iv) Heat rates for existing resources (v) System loads for each year of the 20 years, including On- peak by season, and Off-peak by season. (vi) DSM MWh for each year 0 f the 20 years (b) The output values used in the energy supply model, including but not limited to the following: (i) Off system purchases for each year of the 20 years, including MWh, and Price per MWh. (ii) Off system sales for each year of the 20 years, including MWh, and Price per MWh. (iii) Capacity factors, including each existing resource, and the modeled wind resource. (c) For the financial model used to find the present value of the revenue requirement (PVRR), please provide the input values used, including but not limited to the following: (i) the resource used to for the capital cost, (ii) the cost of capital, (iii) the capital IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER-3 carring cost, (iv) tax rate assumptions - (state, federal, local), (v) economic life of the system resources. (d) The levelization model used including all assumptions. OBJECTION TO REQUEST FOR PRODUCTION NO.6: Idaho Power objects to NIPPC's Request for Production NO.6. Idaho Power needs additional information in order to be able to answer this Request. Please see the Company's Response to NIPPC's Request for Production NO.5 above. The response to this Request was prepared by Randy Allphin, Senior Energy Contracts Coordinator, Idaho Power Company, in consultation with Donovan E. Walker, Lead Counsel, Idaho Power Company. DATED at Boise, Idaho, this 21st day of March 2011. ~tU:Qs=_õN . WALKER rney for Idaho Power Company ~ IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER-4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 21 st day of March 2011 I served a true and correct copy of IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Donald L. Howell, II Kristine A. Sasser Deputy Attorneys General Idaho Public Utilities Commission 472 West Washington P.O. Box 83720 Boise, Idaho 83720-0074 -- Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email don.howeIlCãpuc.idaho.gov kris.sasserCãpuc.idaho.gov Avista Corporation Michael G. Andrea Clint Kalich Avista Corporation 1411 East Mission Avenue - MSC-23 P.O. Box 3727 Spokane, Washington 99220-3727 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email michael.andreaCãavistacorp.com c1int.kalichCãavistacorp.com PacifiCorp d/b/a Rocky Mountain Power Daniel E. Solander J. Ted Weston Rocky Mountain Power 201 South Main Street, Suite 2300 Salt Lake City, Utah 84111 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email daniel.solanderCipacificorp.com ted. westonCipacificorp.com Kenneth Kaufmann LOVINGER KAUFMANN, LLP 825 NE Multnomah, Suite 925 Portland, Oregon 97232 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email kaufmannCilklaw.com Bruce Griswold PacifiCorp 825 NE Multnomah Portland, Oregon 97232 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email bruce.griswoldCipacifiCorp.com IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER-5 Exergy, Grand View Solar, J. R. Simplot, Northwest and Intermountain Power Producers Coalition, & Board of Commissioners of Adams County, Idaho Peter J. Richardson Gregory M. Adams RICHARDSON & O'LEARY, PLLC 515 North 2th Street P.O. Box 7218 Boise, Idaho 83702 Exergy Development Group James Carkulis, Managing Member Exergy Development Group of Idaho, LLC 802 West Bannock Street, Suite 1200 Boise, Idaho 83702 Grand View Solar II Robert A. Paul Grand View Solar II 15960 Vista Circle Desert Hot Springs, California 92241 J.R. Simplot Company Don Sturtevant, Energy Director J.R. Simplot Company One Capital Center 999 Main Street P.O. Box 27 Boise, Idaho 83707-0027 Northwest and Intermountain Power Producers Coalition Robert D. Kahn, Executive Director Northwest and Intermountain Power Producers Coalition 1117 Minor Avenue, Suite 300 Seattle, Washington 98101 Renewable Energy Coalition Thomas H. Nelson, Attorney P.O. Box 1211 Welches, Oregon 97067-1211 Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email peterCirichardsonandoleary.com gregCirichardsonandoleary. com Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email jcarkulisCiexergydevelopment.com Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email robertapaul08Cigmail.com Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email don.sturtevantCisimplot.com Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email rkahnCinippc.org Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email nelsonCithnelson.com IDAHO POWER COMPANY'S OBJECTIONS. TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER-6 John R. Lowe, Consultant Renewable Energy Coalition 12050 SW Tremont Street Portland, Oregon 97225 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email jravenesanmarcosCiyahoo.com Cedar Creek Wind, LLC, & Dynamis Energy, LLC Ronald L. Wiliams WILLIAMS BRADBURY, P.C. 1015 West Hays Street Boise, Idaho 83702 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email ronCiwiliamsbradbury.com Cedar Creek Wind, LLC Scott Montgomery, President Cedar Creek Wind, LLC 668 Rockwood Drive North Salt Lake, Utah 84054 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email scottCiwesternenergy.us Dana Zentz, Vice President Summit Power Group, Inc. 2006 East Westminster Spokane, Washington 99223 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email dzentzCisummitpower.com Dynamis Energy, LLC Wade Thomas, General Counsel Dynamis Energy, LLC 776 East Riverside Drive, Suite 15 Eagle, Idaho 83616 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email wthomasCidynamisenergy.com Idaho Windfarms, LLC Glenn Ikemoto Margaret Rueger Idaho Windfarms, LLC 672 Blair Avenue Piedmont, California 94611 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email glenniCienvisionwind.com MargaretCienvisionwind .com Interconnect Solar Development, LLC R. Greg Ferney MIMURA LAW OFFICES, PLLC 2176 East Franklin Road, Suite 120 Meridian, Idaho 83642 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email gregCimimuralaw.com IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER-7 Bil Piske, Manager Interconnect Solar Development, LLC 1303 East Carter Boise, Idaho 83706 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email bilpiskeCicableone.net Intermountain Wind LLC and Renewable Northwest Project Dean J. Miler McDEVITT & MILLER LLP 420 West Bannock Street P.O. Box 2564 Boise, Idaho 83701 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email joeCimcdevitt-miler.com Paul Martin Intermountain Wind LLC P.O. Box 353 Boulder, Colorado 80306 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email paulmartinCiintermountainwind.com North Side Canal Company and Twin Falls Canal Company Shelley M. Davis BARKER ROSHOLT & SIMPSON, LLP 1010 West Jefferson Street, Suite 102 P.O. Box 2139 Boise, Idaho 83701-2139 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email smdCiidahowaters.com Brian Olmstead, General Manager Twin Falls Canal Company P.O. Box 326 Twin Falls, Idaho 83303 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email olmsteadCitfcanal.com Ted Diehl, General Manager North Side Canal Company 921 North Lincoln Street Jerome, Idaho 83338 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email nscanalCicableone.net IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER-8 Board of Commissioners of Adams County, Idaho Bil Brown, Chair Board of Commissioners of Adams County, Idaho P.O. Box 48 Council, Idaho 83612 Birch Power Company Ted S. Sorenson, P.E. Birch Power Company 5203 South 11 th East Idaho Falls, Idaho 83404 Blue Ribbon Energy LLC M. J. Humphries Blue Ribbon Energy LLC 4515 South Ammon Road Ammon, Idaho 83406 Arron F. Jepson Blue Ribbon Energy LLC 10660 South 540 East Sandy, Utah 84070 Conventional Renewable Energy Group Gary Seifert Kurt Myers Idaho National Laboratory Conventional Renewable Energy Group 2525 Fremont Avenue Idaho Falls, Idaho 83415-3810 Idaho Conservation League Benjamin J. Otto Idaho Conservation League 710 North Sixth Street P.O. Box 844 Boise, Idaho 83701 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email bdbrownCifrontiernet.net Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email tedCitsorenson.net Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email blueribbonenergYCigmail.com Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email arronesgCiaol.com Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email Gary.SeifertCiinl.gov Kurt. MyersCiinl.gov Hand Delivered U.S. Mail _ Overnight Mail FAX -. Email bottoCiidahoconservation.org IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER-9 Renewable Northwest Project Megan Walseth Decker Senior Staff Counsel Renewable Northwest Project 917 SW Oak Street, Suite 303 Portland, Oregon 97205 Hand Delivered U.S. Mail _ Overnight Mail FAX -. Email meganCirnp.org Snake River Allance Ken Miler Clean Energy Program Director Snake River Allance 350 North 9th Street #B61 0 P.O. Box 1731 Boise, Idaho 83701 Hand Delivered U.S. Mail _ Overnight Mail FAX -. Email kmilerCisnakeriverallance.org ~~ov . Walker ~ IDAHO POWER COMPANY'S OBJECTIONS TO PRODUCTION REQUESTS NOS. 5 AND 6 OF THE NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY, AVISTA CORPORATION AND ROCKY MOUNTAIN POWER-10