20120601Staff to PAC 1.1.pdf

KRISTINE A. SASSER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 6618
RECEIVED
ZUT2 JUN -I Alit!: 13
IDAHO PUL
JIJUTIES COMMISSION
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
)
CASE NO. GNR-E-11-03
PROVISIONS INCLUDING THE
SURROGATE AVOIDED RESOURCE (SAR) COMMISSION STAFF'S
AND INTEGRATED RESOURCE PLANNING ' RESPONSE TO THE FIRST
(IRP) METHODOLOGIES FOR ) PRODUCTION REQUEST OF
CALCULATING PUBLISHED AVOIDED ) ROCKY MOUNTAIN POWER
COST RATES. )
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 Rocky Mountain Power's
First Production Request to Commission Staff.
REQUEST NO. RMP 1.1: Please provide all documents and workpapers used in Staff's
surrogate avoided resource calculations, with all formulas intact.
RESPONSE NO. RMP 1.1: Please see the attached spreadsheet entitled "Updated
Avoided Cost Model.xlsm". There are no workpapers associated with the spreadsheet.
This response was prepared by Dr. Cathleen M. McHugh, Utilities Analyst. Dr. McHugh will be
the sponsor at hearing.
STAFF'S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF RMP I JUNE 1, 2012
DATED at Boise, Idaho, this 1 '- day of June 2012.
"
Aml I MM A. Sass~W
Deputy Attorney General
Technical Staff: Rick Sterling
Cathleen McHugh
i:umise/prodreq response'gn1 I I .3ksrpscm staff response tormp V pr.doc
STAFF'S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF RMP 2 JUNE 1, 2012
Updated Avoided Coat Model.xlsm
AVOIDED COST CALCULATION MODEL Version 10
Idaho Public Utilities Commission 513112012
PRELItvHNARY
1.Choose Utility H vi
2.Choose Condition -°-°
Nur
Note: Currently this model does not compute Fueled rates correctly. -1
3.Choose specific resource 0
2 H 3
20-yr L.evelized rate 7
2012 on-line date: 4505 8
2013 .46.9O Used in E;th 303 9
2014 on-fine date: 48.95 10
2015 on-fine date: 51.30 11
2016 on-line date: 53.70 12
2017on-Iinedate: 5623 13
14
15
16
17
18
19
20
21
22
23
24
25
INPUT
DATA
PCP
DATA
SAR PLANT LIFE (YEARS) 30
SAR PLANT COST (5/kW) 1313.00
BASE YEAR OF SAR COST 2008
"SAR CAPACITY FACTOR (%) 90.0%
HEAT RATE (BTU/VW) 7,100
J ILITY WEIGHTED COST OF CAPITAL (¼): 7.980%
RATEPAYER DISCOUNT RATE (%) 7.980%
SAR FIXED O&M (5/kW) 14.57
SAR" VARIABLE OW ($fMVth) 1.77
CURRENT YEAR GAS PRICE ($IMMBTU 4.09
CURRENT YEAR FUEL COST ($/MWi) 29.07
EASE YEAR, O&M EXPENSES 2008
BASE YEAR FUEL COST
ESCALATION RATE; -SAR" (% 1.40%
ESCALATION RATE OW (%) 2.00%
ADJUSTABLE PORTION (5/MIMi) 0.00
CAPITAL CARRYING CHARGE (%) 1t%
LEVEL CARRYING COST (5/MYth
"TILTING" RATE (¼) 1.40%
TYPE OF RATES NON-FUELED
CURRENT YEAR 2012
General inflation rate: 2.0% per year
Note: The Annual Energy Outlook includes both a real and nominal forecat
To be updated when model is capable of computing Fueled
C,)
t-I
_ - 05 - - - CD
CD 0 CL
o
CD CL
CD
- 0
CD -
Natural Gas Price Forecast
2012 REPORT - EARLY RELEASE - JANUARY 2012
Nominal Price
by Year FUEL COST
YEAR (2010$ per MMBtU) (S 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 3.95 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 455 5.30 3766
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 5.60 7.22 51.27
2025 5.63 7.41 52.59
2026 5.80 7.78 55.21
2027 6.02 8.24 58.48
2028 6.10 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 6.82 10.64 75.51
2035 7.05 11.19 79.46
C
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 ROCKY MOUNTAIN POWER, IN CASE NO. GNR-E-1 1-03, 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
515 N 27TF1 STREET
BOISE ID 83702
DON STURTEVANT
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 STE 1125
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 I TH 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
McDEVITF & MILLER LLP ID CONSERVATION LEAGUE
P0 BOX 2564 P0 BOX 844
BOISE ID 83701 BOISE ID 83702
KEN MILLER MARV LEWALLEN
SNAKE RIVER ALLIANCE CLEAR WATER PAPER CORP
BOX 1731 STE 1100
BOISE ID 83701 601 W RIVERSIDE AVE
SPOKANE WA 99201
ENERGY INTEGRITY PROJECT
TAUNA CHRISTENSEN
769N 1100E
SHELLEY ID 83274
SECRETARY
CERTIFICATE OF SERVICE