20120411PAC to Exergy 1-8.pdf

RECEIVED
201? APR H AM 9:00
IDAHO ?UiL P' I • -, U I tLI lr
201 South Main, Suite 2300
Salt Lake City, Utah 84111
ROCKY MOUNTAIN
POWER
'A DIVISION OF PACIFICORP
April 10, 2011
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
515 N. 27th Street
P.O. Box 7218
Boise, Idaho 83702
[e-mail] (C)
gregrichardsonandoleary.com (W)(C)
RE: ID GNR-E- 11-03
Exergy Data Request (1-8)
Please find enclosed Rocky Mountain Power's responses to Exergy Data Requests 1-8. Alsc
provided are Attachment Exergy 1 -1 and 3. Provided on the enclosed Confidential CD are
Confidential Attachments Exergy 1 —2, 6 —(1-3) and 8. Confidential information is provided
subject to the terms and conditions of the protective agreement.
If you have an y questions, please feel free to call me at [phone].
Sincerely,
<a T,64 X-,
J. Ted Weston
Manager, Regulation
Enclosure
C.c.: Jean JewelluIPUC [e-mail]
Donald L. Howell, II [e-mail]
Kristine A. Sasser kris.sasser(äpuc.idaho.gov
Donovan E. Walker [e-mail]
Lisa Nordstrom [e-mail]
Michael G. Andrea [e-mail]
Ken Kaufmann (E-mail Only) [e-mail]
Daniel Solander [e-mail]
Dean J. Miller .joe@,Mcdevitt-miller.com
Thomas H. Nelson [e-mail]
John R. Lowe jravenesanmarcos(yahoo.com
R. Greg Ferney gregmimuralaw.com
Bill Piske [e-mail]
Ronald L. Williams [e-mail]
Wade Thomas [e-mail]
Shelley M. Davis [e-mail]
Brian Olmstead [e-mail]
Robert A. Paul robertaj,au108(gmail.com
James Carkulis [e-mail]
Arron F. Jepson [e-mail]
M.J. Humphries blueribbonenergy2gmail.com
Ted Diehl [e-mail]
Bill Brown [e-mail]
Ted S. Sorenson [e-mail]
Glenn Ikemoto glenni(envisionwind.com
Margaret Rueger [e-mail]
Megan Walseth Decker [e-mail]
Benjamin J. Otto bottoidahoconservation.org
Ken Miller kmiller(snakeriveralliance.org
Robert D. Kahn [e-mail]
Don Sturtevant [e-mail]
Mary Lewallen [e-mail]
GNR-E-11-03/Rocky Mountain Power
April 10, 2012
Exergy Data Request 1
Exergy Data Request 1
Please provide a copy for the PowerPoint presentation the Company presented at
the meeting to present and discuss IRP Models at the Idaho Public Utilities
Commission on December 15, 2011. Include all work papers, spreadsheets in
electronic format with formulas intact, and model outputs used in producing the
PowerPoint presentation.
Response to Exergy Data Request 1
Please refer to Attachment Exergy 1 -1 for the requested PowerPoint presentation
and Confidential Attachment Exergy 1 -2 for the workpapers. Many of the inputs
and presentation slides prepared for the December 15, 2011 presentation were
preliminary and have been replaced by updated studies included in exhibits and
testimony. Please refer to the Company's response to Exergy Data Request 6 for
these updated studies.
Recordholder: Laren Hale I Bradley Mullins
Sponsor: Kelcey Brown
GNR-E- 11-03/Rocky Mountain Power
April 10, 2012
Exergy Data Request 2
Exergy Data Request 2
For each of the five QF configurations presented in Table A of Kelcey Brown's
Direct Testimony, please provide work papers, spreadsheets in electronic format
with formulas intact, and model outputs used in producing the values found in
Table A. For each of Company's gas-fired generation plants, please list the annual
capacity factor, by year, beginning in 2013 through the end of the 20 year analysis
period found in the model runs for each of the five QF configurations.
Response to Exergy Data Request 2
Please refer to the Company's response Exergy Data Request 6. The capacity
factors of the Company's gas plants are listed in the GRID avoided cost study
files on the NPC tab, rows 747 through 759.
Recordholder: Laren Hale / Bradley Mullins
Sponsor: Kelcey Brown
GNR-E-1 1-03/Rocky Mountain Power
April 10, 2012
Exergy Data Request 3
Exergy Data Request 3
If the Company were to offer a Qualifying Facility (QF) a contract with IRP
Methodology contract pricing with the methodology in effect on the date of this
request, please state if the assumptions in the rate calculation would be consistent
with the assumptions included in the 2011 IRP Addendum to the 2011 IRP flied
with the Idaho Public Utilities Commission on April 1, 2011 (PAC-E-1 1-10).
Please provide the following inputs that would be used in offering a QF contract
and indicate if the inputs are consistent with the 2011 IRP Addendum:
(a)Natural gas fuel forecast,
(b)Firm load forecast,
(c)Resource stack,
(d)Forecast of the year and month of first future peak load deficit.
Response to Exergy Data Request 3
It is the Company's practice to update avoided cost modeling inputs to the best
information available at the time of the QFs pricing request.
(a)The natural gas fuel forecast would be consistent with the Company's most
recent Official Forward Price Curve (OFPC). The current OFPC is dated
March 31, 2012, and a copy is provided as Attachment Exergy 3. The
Company's 2011 IRP addendum used the September 2010 Official Forward
Price Curve.
(b)The firm load forecast would be updated to be consistent with the latest
Company long term firm load forecast. The current forecast was prepared in
November 2011, and is not the same load forecast that was used in the 2011
IRP Addendum.
(c)The Company updates the resources included in the study to the best
information available at the time of the QFs pricing request. The current
inputs are consistent with the 2011 IRP Addendum.
(d)The year and month of the first future peak load deficit is not used in the
study. The next deferrable base load resource is consistent with the preferred
portfolio as listed in a Company Integrated Resource Plan (IRP) or IRP
update. The current deferrable base load resource is listed in Table 8.16 of the
Company's 2011 IRP and Table 3 of the 2011 IRP Addendum.
Recordholder: Laren Hale / Bradley Mullins
Sponsor: Kelcey Brown
GNR-E-1 1-03/Rocky Mountain Power
April 10, 2012
Exergy Data Request 4
Exergy Data Request 4
Reference the Resource Portfolio contained in the Company's 2011 IRP
Addendum (Table 3, p. 8), stating the Company plans to add a 625 MW CCCT in
2014. Please provide the prices the Company would offer a QF that would
provide power in the same configuration as the CCCT. In other words, please run
the projected output of the 625 MW CCCT through the Company's IRP
Methodology as though it were a QF requesting contract pricing.
Response to Exergy Data Request 4
The Company has contracted for the construction of the Lake Side II CCCT
which displaces the 625 MW CCCT named in 2011 IRP. The next deferrable
CCCT (proxy resource) is the 597 MW CCCT F 2x1 resource located in Utah
south and planned for 2016.
The Company has not performed the requested analysis. However, a QF that
exactly matches the proxy resource generation profile and location will receive
avoided cost prices that are equal to the proxy resource's cost.
Recordholder: Laren Hale / Bradley Mullins
Sponsor: Kelcey Brown
GNR-E-11-O3IRocky Mountain Power
April 10, 2012
Exergy Data Request 5
Exergy Data Request 5
According to the Commission's accepted "IRP Methodology" (IPUC Order No.
26576, IPC-E-95-9) and IPUC Staff Witness Rick Sterling's direct testimony
Exhibit 101, "the avoided cost of the QF project is the difference in the present
value of the revenue requirements (PVRR) between the base case resource plan
and a modified resource plan that includes the QF resource." (Exhibit 101, IPC-E-
95-9, R. Sterling, page 14.) Please explain in detail how the Company
incorporates the "revenue requirement" as it would in filing for a certificate of
public convenience and necessity (i.e. return of and on investment, all taxes, etc.)
in the calculation of rates offered in contracts to QFs.
Response to Exergy Data Request 5
Please refer to the Direct Testimony of Company witness, Kelcey Brown, pages
9-10, for a description of the "IRP Methodology." Please refer to the Company's
response to Exergy Data Request 6 for examples of this calculation.
The proxy resource payment factor incorporates the "revenue requirement"
including the return on investment, taxes, and other components of revenue
requirement. The payment factor is listed in Table 6.3 and Table 6.4 of the 2011
IRP.
Recordholder: Laren Hale / Bradley Mullins
Sponsor: Kelcey Brown
GNR-E- 11-03/Rocky Mountain Power
April 10, 2012
Exergy Data Request 6
Exergy Data Request 6
Reference Direct Testimony of Kelcey Brown, pp. 9-10, stating,
The first simulation (the Base Simulation) calculates the PVR of the preferred
portfolio. The second simulation (the Avoided Cost Simulation) calculates the
PVR of a modified version of the preferred portfolio that includes the QF at no
cost and includes the energy impact associated with the deferral of a portion of the
next avoidable CCCT in a manner that maintains resource adequacy and system
reliability equivalent to that of the Base Simulation. The difference in PVRR from
the GRID studies between the Avoided Cost. Simulation and the Base Simulation
is used to determine the avoided energy cost. The avoided energy cost does not
include the benefit of deferring the fixed costs of the next avoidable CCCT.
Please provide an electronic copy of the GRID model along with an example,
including all inputs and outputs, of the above described method of finding
avoided energy cost.
Response to Exergy Data Request 6
The Company has received a signed Confidentiality Agreement from Mr.
Reading, and has begun preparing internet access to the GRID model. Mr.
Reading's personal internet access credentials will be provided under a separate
letter from the PacifiCorp lIT department.
For a copy of the GRID project used to develop the illustrative pricing provided in
the Direct Testimony of Company Witness Kelcey Brown, please refer to
Confidential Attachment Exergy 6-1.
For the calculations of avoided cost pricing, please refer to Confidential
Attachment Exergy 6 -2.
For the GRID input files used to prepare the avoided cost pricing, please refer to
Confidential Attachment Exergy 6 -3
Confidential information is provided subject to the terms and conditions of the
protective agreement in this proceeding.
Recordholder: Laren Hale / Bradley Mullins
Sponsor: Kelcey Brown
GNR-E-1l-O3IRocky Mountain Power
April 10, 2012
Exergy Data Request 7
Exergy Data Request 7
Reference Direct Testimony of Kelcey Brown, p. 13, stating, "The Company
updates the GRID model based on the most recently available information each
time a QF requests avoided cost pricing. This includes updates related to new
contracts, fuel prices, forward price cures, load forecasts and other assumptions."
Please provide the current updates to the GRID model that would be applied to a
QF requesting avoided cost pricing on the date of this production request.
Response to Exergy Data Request 7
The studies provided in the Company's response to Exergy Data Request 6
include all of the current updates to the GRID model and are the most recent
studies performed using the Idaho IRP methodology.
Recordholder: Laren Hale / Kelcey Brown
Sponsor: Kelcey Brown
GNR-E-1 1-03/Rocky Mountain Power
April 10, 2012
Exergy Data Request 8
Exergy Data Request 8
Please provide all data and work papers used to develop the capacity contributions
of the five generation types displayed in the table found on page 1 of Exhibit 201
(Technical Appendix to Kelcey Brown's direct testimony).
Response to Exergy Data Request 8
Please refer to Confidential Attachment Exergy 8. Confidential information is
provided subject to the terms and conditions of the protective agreement in this
proceeding.
Recordholder: Laren Hale / Bradley Mullins
Sponsor: Kelcey Brown