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Home My WebLink About20120601Staff to Canal 1-2.pdfKRISTINE A. SASSER DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION P0 BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0357 IDAHO BAR NO. 6618 " '.i Z J!!7 I 4 It. If IL ..jLhi Mfl II. 14 . Ui E MMlSSQN Street Address for Express Mail: 472 W WASHINGTON BOISE ID 83702-5918 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE COMMISSION'S REVIEW OF PURPA QF CONTRACT PROVISIONS INCLUDING THE SURROGATE AVOIDED RESOURCE (SAR) AND INTEGRATED RESOURCE PLANNING (IRP) METHODOLOGIES FOR CALCULATING PUBLISHED AVOIDED COST RATES. CASE NO. GNR-E-11-03 COMMISSION STAFF'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF TWIN FALLS CANAL COMPANY AND NORTH SIDE CANAL COMPANY The Staff of the Idaho Public Utilities Commission, by and through its attorney of record, Kristine A. Sasser, Deputy Attorney General, responds as follows to the Twin Falls Canal Company and North Side Canal Company's First Production Request to Commission Staff. REQUEST FOR PRODUCTION NO. 1: Please provide an electronic copy in the original software with all the formulae intact of the work-paper files used to produce Exhibit No. 303. STAFF'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF TFCC AND NSCC 1 JUNE 1, 2012 RESPONSE TO REQUEST NO. 1: Please see the attached spreadsheets entitled "Exhibit 303 .xlsx" and "Updated Avoided Cost Model.xlsm". The first spreadsheet consists of the graph shown in Exhibit No. 303. In the second spreadsheet, the worksheet entitled "Avoid New" calculates the values used in the graph. Specifically, refer to cells D20 and AP27. In the same spreadsheet, the worksheet entitled "New Data" includes data used in the calculations in "Avoid New." The remaining worksheets summarize the levelized and non-levelized rates resulting from "Avoid New" for each utility. This response was prepared by Dr. Cathleen M. McHugh, Utilities Analyst. Dr. McHugh will be the sponsor at hearing. REQUEST FOR PRODUCTION NO. 2: Please provide an electronic copy in the original software with all the formulae intact of all work-paper files used to produce Exhibit No. 304. RESPONSE TO REQUEST NO. 2: Please see the attached spreadsheets entitled "Staff Ex 304 graph.xlsx." The figures used in Exhibit No. 304 were computed by the utilities, not by Staff; consequently, Staff does not possess the original software used to generate the results presented in Exhibit No. 304. This response was prepared by Rick Sterling, Engineering Supervisor. Mr. Sterling will be the sponsor at hearing. DATED at Boise, Idaho, this 1" day of June 2012. a. Kristi e A. Sasser Deputy Attorney General Technical Staff: Rick Sterling Cathleen McHugh i:umisc/prodreq response/gnre 11 .3ksrpscm staff response to tfcc nscc V pr.doe STAFF'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF TFCC AND NSCC 2 JUNE 1, 2012 $120 $100 (I) tn tn tn $80 t--, I-i C-) - $60 C) tn C) C) —I $40 $20 rr _ - u Cr cD9 F \ 11113 119 Iq Dedbctons to acn foi' integration and for transmLssk*osts and are Included for aft utikties Comparison of Proposed SAR Methodology Rates Levelized Rates for 20-yr Contract Term, January 2013 Online Date $120 C c.. 10V9 0 $100 $80 D $60 U N C(T1 )p $40 $20 $0 - - 0 \ VZO~ 119 c- , $36.68 $37.07 Idaho Power Company PURPA IRP Methodology Levelized value for 20 year Contract term coming online in January 2013 Comparison of Proposed IRP Methodology Rates Levelized Rates for 20-yr Contract Term, January 2013 Online Date Ene r- (I) rJ tn tj - - . t'J (0 00 0 0 . C' (0 ITI (J C a Natural Gas Price Forecast 2012 REPORT. EARLY RELEASE - JANUARY 2012 by Year FUEL COS1 YEAR (2010$ per MMBtu) ($ per MMBtu) $IMWh 2009 4.49 4.44 31.53 2010 5.02 5.02 35.63 2011 4.16 4.24 30.11 2012 3.98 4.09 29.07 2013 3.91 4.07 28.89 2014 3.76 3.97 28.21 2015 3.98 4.29 30.43 2016 4.01 4.41 31.28 2017 4.18 4.68 33.21 2018 4.39 5.01 35.59 2019 4.55 5.30 37.66 2020 4.67 5.55 39.42 2021 5.00 6.06 43.02 2022 5.34 6.60 46.87 2023 5.52 6.97 49.51 2024 560 7.22 5127 2025 5.63 7.41 52.59 2026 5.80 7.78 55.21 2027 6.02 8.24 58.48 2028 610 8.51 60.41 2029 6.10 8.67 61.57 2030 6.15 8.92 63.31 2031 6.30 9.31 66.07 2032 6.48 9.74 69.16 2033 6.64 10.17 72.21 2034 682 10.64 75.51 AVOIDED COST CALCULATION MODEL Version 10 Idaho Public Utilities Commission 513112012 PRELIMINARY 1.Choose Utility pcp V. 2.Choose Condition Nul Note: Currently this model does not compute Fueled rates correctly. •1 3.Choose specific resource 0 2 20-yr Levelized rate 7 2012 on-line date: 45.08 8 Ii3 Clme ti,j,. 4890 Used in 9 2014 on-fine, date: 48.95 10 2015 on-line date: 51.30 11 2016 on-line date: 53.70 12 2017 on-line date: 56.23 13 14 15 INPUT DATA PCP DATA UR J "SAR PLANT LIFE (YEARS) 30 SAR" PLANT COST ($/k%) 1313.00 BASE YEAR OF "SAR COST 2008 "SAR CAPACITY FACTOR (%) 90.0% HEAT RATE (BTU/kW) 7,100 JTIUTY WEIGHTED COST OF CAPITAL (%): 7.980% RATEPAYER DISCOUNT RATE (%) 7.980% SAR FIXED O&M ($/IcS) 14.57 'SAR" VARIABLE O&M (s/MiMi) 1.77 CURRENT YEAR GAS PRICE ($/MMBTU 4.09 CURRENT YEAR FUEL COST (S/MW,) 2907 BASE YEAR, O&M EXPENSES 2008 BASE YEAR FUEL COST NjjjR#M@M ESCALATION RATE; "SAR" (%) 140% r ESCALATION RATE; O&M (%) 200% ADJUSTABLE PORTION ($/M) 000 To CAPITAL CARRYING CHARGE (% 11.662% LEVEL CARRYING COST ($/M) 'TILTING RATE (%) 1.401Z TYPE OF RATES. NON-FUELED CURRENT YEAR 2012 16 17 18 19 20 21 22 23 24 25 General inflation rate: 2.0% per year Note: The Annual Energy Outlook includes both a real and nominal fomca be updated when model is capable of computing 'Fueled' Updated Avoided Cost Model.xlsm CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 1ST DAY OF JUNE 2012, SERVED THE FOREGOING STAFF RESPONSE TO THE FIRST PRODUCTION REQUEST OF TWIN FALLS CANAL COMPANY AND NORTH SIDE CANAL COMPANY, IN CASE NO. GNR-E-11-03, BY E-MAILING AND MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE FOLLOWING: DONOVAN E WALKER JASON B WILLIAMS IDAHO POWER COMPANY P0 BOX 70 BOISE ID 83707-0070 MICHAEL G ANDREA AVISTA CORPORATION 1411 EMISSION AVE SPOKANE WA 99202 ROBERT D KAHN NW & INTERMOUNTAIN POWER PRODUCERS COALITION 1117 MINOR AVE STE 300 SEATTLE WA 98101 ROBERT A PAUL GRAND VIEW SOLAR II 15690 VISTA CIRCLE DESERT HOT SPRINGS CA 92241 THOMAS H NELSON RENEWABLE ENERGY COALITION P0 BOX 1211 WELCHES OR 97067 R GREG FERNEY MIMURA LAW OFFICES PLLC 2176 E FRANKLIN RD STE 120 MERIDIAN ID 83642 DANIEL E SOLANDER TED WESTON ROCKY MOUNTAIN POWER 201 S MAIN ST STE 2300 SALT LAKE CITY UT 84111 PETER J RICHARDSON GREGORY M ADAMS RICHARDSON & O'LEARY 515N 27Th STREET BOISE ID 83702 DON STIJRTEVANT ENERGY DIRECTOR J R SIMPLOT COMPANY P0 BOX 27 BOISE ID 83707-0027 JAMES CARKULIS EXERGY DEVELOPMENT GROUP OF IDAHO LLC 802 W BANNOCK ST STE 1200 BOISE ID 83702 JOHN R LOWE RENEWABLE ENERGY COALITION 12050 SW TREMONT ST PORTLAND OR 97225 BILL PISKE MGR INTERCONNECT SOLAR DEVELOPMENT LLC 1303 E CARTER BOISE ID 83706 CERTIFICATE OF SERVICE RONALD L WILLIAMS WADE THOMAS WILLIAMS BRADBURY DYNAMIS ENERGY LLC 1015 W HAYS ST 776 E RIVERSIDE DR BOISE ID 83702 STE 15 EAGLE ID 83616 BRAIN OLMSTEAD MEGAN WALSETH DECKER GENERAL MANAGER SR STAFF COUNSEL TWIN FALLS CANAL CO RENEWABLE NW PROJECT P0 BOX 326 421 SW 6TH AVE STEI125 TWIN FALLS ID 83303 PORTLAND OR 97204 TED DIEHL BILL BROWN CHAIR GENERAL MANAGER BOARD OF COMMISSIONERS NORTH SIDE CANAL CO OF ADAMS COUNTY ID 921 N LINCOLN ST P0 BOX 48 JEROME ID 83338 COUNCIL ID 83612 TED S SORENSON P E GLENN IKEMOTO BIRCH POWER COMPANY MARGARET RUEGER 5203 SOUTH ll EAST IDAHO WINDFARMS LLC IDAHO FALLS ID 83404 672 BLAIR AVE PIEDMONT CA 94611 M J HUMPHRIES ARRON F JEPSON BLUE RIBBON ENERGY LLC BLUE RIBBON ENERGY LLC 3470 RICH LANE 10660 SOUTH 540 EAST AMMON ID 83406 SANDY UT 84070 DEAN J MILLER BENJAMIN J OTTO MeDEVI1T & MILLER LLP ID CONSERVATION LEAGUE P0 BOX 2564 P0 BOX 844 BOISE ID 83701 BOISE ID 83702 KEN MILLER MARV LEWALLEN SNAKE RIVER ALLIANCE CLEARWATER PAPER CORP BOX 1731 STEIIOO BOISE ID 83701 601 W RIVERSIDE AVE SPOKANE WA 99201 ENERGY INTEGRITY PROJECT TAUNA CHRISTENSEN 769N 1100E SHELLEY ID 83274 3 ~(QnQ" SECIZETARY CERTIFICATE OF SERVICE