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HomeMy WebLinkAbout200306181st Response of Idaho Power to Staff.pdfr.i!~-('C'it:"nI; ' ..- '' '_\.... ,.; r~J :, ::"1 BARTON L. KLINE ISB # 1526 MONICA MOEN ISB # 5734 Idaho Power Company P. O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2682 FAX Telephone: (208) 388-6936 .. .. -- .. ZLC3 JU;~ 17 PM 4: 24 , ',- ,,- --- '" _ .. 'T" 1 I- ' - --;" ' 'to ' ' 'I II' C" - nuUil:"'iii':":) l..J lnlili.J,) V ,'1 Attorneys for Idaho Power Company Street Address for Express Mail 1221 West Idaho Street Boise , Idaho 83702 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AN ACCOUNTING ORDER AUTHORIZING THE INCLUSION OF POWER SUPPLY EXPENSES ASSOCIATED WITH THE PURCHASE OF CAPACITY AND ENERGY FROM PPL MONTANA LLC IN THE POWER COST ADJUSTMENT. CASE NO. IPC-E -03- IDAHO POWER COMPANY' RESPONSE TO FIRST.. PRODUCTION REQUEST OF THE COMMISSION STAFF COMES NOW, Idaho Power Company ("Idaho Power" or "the Company and in response to the First Production Request of the Commission Staff to Idaho Power Company dated June 10, 2003, herewith submits the following information: REQUEST NO.1: Please discuss whether transmission capacity is available from Mid-Columbia and Palo Verde during the'hours covered by the proposed agreement with PPL Montana. If transmission capacity is available, please describe the transmission path. Provide copies of any analysis or other evidence to support your answer. IDAHO POWER COMPANY'S RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF, Page RESPONSE TO REQUEST NO.1: Energy transmitted from Mid- Columbia to Idaho Power must cross the transmission lines of at least one company other than Idaho Power (IPCo); Bonneville Power Administration (BPA), PacifiCorp (PAC) or Avista (AVA). Idaho Power must purchase capacity from one of these companies and it must also have internal capacity available to deliver energy from the point of interconnection to its customers. Typically during the summer months , Idaho Power purchases all the available inbound transmission capacity from the Pacific Northwest to serve its customers. The descriptions of these paths are as follows: Mid-C -7 BPA -7 IPCo (Connecting to Idaho Power at LaGrande Substation) Mid-C -7 PAC -7 IPCo (Connecting to Idaho Power at Enterprise Substation) Mid-C -7 AVA -7 IPCo (Connecting to Idaho Power at Lolo Substation) As of June 17 2003, Idaho Power s Open Access Same time Information System (OASIS) indicates 0 MW of Yearly Firm transmission available from LaGrande into IPCo s system. The Idaho Power OASIS indicates there is no available Monthly Firm transmission from LaGrande into IPCo s system for the months of June, July and August 2003. As of June 17 , 2003, Idaho Power s OASIS indicates 0 MW of Yearly Firm transmission available from Enterprise into IPCo s system. The Idaho Power OASIS indicates there is no available Monthly Firm transmission from Enterprise into IPCo system for the months of June , July and August 2003. As of June 17 2003, Idaho Power s OASIS indicates 0 MW of Yearly Firm transmission available from Lolo into IPCo s system. The Idaho Power OASIS indicates there is no available Monthly Firm transmission from Lolo into I PCo s system for the months of June, July and August 2003. IDAHO POWER COMPANY'S RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF, Page 2 If energy is purchased at Palo Verde , the energy must flow across the transmission systems of at least two companies , the most likely being Arizona Public Service Company (APS) and PacifiCorp (PAC). This path would be described as: PV -7 APS -7 PAC -7 IPCo (Connecting to Idaho Power at Borah/Brady Substations) As of June 17 2003, Arizona Public Service s OASIS indicates 0 MW of Yearly Firm transmission available from PV to Mead. The APS OASIS indicates there is no available Monthly Firm transmission from PV to Mead for the months of June , July and August 2003. As of June 17, 2003, PacifiCorp s OASIS indicates 554 MW of Yearly Firm transmission available from Mead to Idaho Power s Borah/Brady substations. The PacifiCorp OASIS indicates available Monthly Firm transmission from Mead to Idaho Power s Borah/Brady for the months of June , July and August 2003 of 692 MW, 692 , and 692 MW respectively. Though there is transmission available on this path, a corresponding reservation must be made on the Idaho Power system and the Idaho Power OASIS indicates zero firm capacity for these time periods. The response to this request was prepared by , Kent McCarthy, Planning Engineer, Idaho Power Company, in consultation with Barton L. Kline , Senior Attorney, Idaho Power Company. REQUEST NO.2: Assuming transmission capacity is available , please provide an estimate of the additional costs that would be incurred for transmission to the Idaho Power system for purchases made at Mid-Columbia and Palo Verde during the term of the proposed agreement with PPL Montana. (Reference page 11 , lines 5- of Greg Said's direct testimony). IDAHO POWER COMPANY'S RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF, Page 3 RESPONSE TO REQUEST NO.2: Assuming firm transmission capacity is available (which it is not), the estimated additional costs that would be incurred for transmission to the Idaho Power system for purchases made at Mid-Columbia and Palo Verde during the term of the proposed agreement with PPL Montana are shown in the attached table. As shown in the attached table, firm transmission can be purchased on either an annual or monthly basis. If purchased on a monthly basis , Idaho Power would only need to pay for the months the transmission is actually used. However, there is no guarantee the transmission would be available from one year to the next. If the transmission is purchased on a yearly basis , Idaho Power receives roll-over rights and can renew the transmission rights from year to year. However, Idaho Power would be paying for 12 months of service while potentially only using the transmission 3 months of the year. The response to this request was prepared by , Kent McCarthy, Planning Engineer, Idaho Power Company, in consultation with Barton L. Kline , Senior Attorney, Idaho Power Company. REQUEST NO.3: Please provide forward price curves for Q3 heavy load hour products (or other products more comparable to the PPL Montana agreement) for delivery during the term of the proposed contract, that have been developed by Idaho Power based on market price quotes obtained and compiled during the period January 2 , 2003 to the present. Please provide this information in both a graphical and a tabular format. IDAHO POWER COMPANY'S RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF, Page 4 RESPONSE TO REQUEST NO.3: The information requested in Staff' Request No.3 is confidential and protected from public inspection, examination or copying in accordance with the provisions of Idaho Code 340 et seG. and 48-801 et seG.The requested material is provided separately to Staff in accordance with RP 233. The response to this request was prepared by Kirk Whittaker, Risk Analyst, Idaho Power Company, in consultation with Barton L. Kline , Senior Attorney, Idaho Power Company. REQUEST NO.4: Please provide a description of the information used by the Company to develop the forward price curves, along with a description of how this information is used to develop the forward price curves. RESPONSE TO REQUEST NO.4: The information requested in Staff' Request No.4 is confidential and protected from public inspection, examination or copying in accordance with the provisions of Idaho Code 340 et seG. and 48-801 et seG.The requested material is provided separately to Staff in accordance with RP 233. The response to this request was prepared by , Kirk Whittaker, Risk Analyst, Idaho Power Company, in consultation with Barton L. Kline, Senior Attorney, Idaho Power Company. DATED at Boise, Idaho, this 17th day of June , 2003. elf- BARTON L. KLINE Attorney for Idaho Power Company IDAHO POWER COMPANY'S RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF, Page 5 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 17th day of June , 2003, I served a true and correct copy of the within and foregoing IDAHO POWER COMPANY' RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF upon the following named parties by the method indicated below , and addressed to the following: Scott Woodbury Deputy Attorney General Idaho Public Utilities Commission 472 W. Washington Street O. Box 83720 Boise, Idaho 83720-0074 Hand Delivered S. Mail Overnight Mail FAX (J;A jc~ BARTON L. KLINE CERTIFICATE OF SERVICE IDAHO POWER COMPANY Response to Request No. Re s p o n s e t o R e q u e s t N o . Qu o t e s - M a y 8 , 2 0 0 3 Mid - Co l u m b i a 0 3 Pa l o V e r d e 20 0 3 20 0 3 $ 4 6 , 50 I M W h $ 6 4 , 25 I M W h Mi d - C t o B P A t o I P C o Mi d - C t o P A C t o I P C o Mi d - C t o A V A t o I P C o PV t o A P S t o P A C t o I P C o Mo n t h l y Mo n t h l y Mo n t h l y Mo n t h l y De l i v e r e d De l i v e r e d An n u a l Tr a n s m i s s i o n An n u a l Tr a n s m i s s i o n An n u a l Tr a n s m i s s i o n An n u a l Tr a n s m i s s i o n HL H r s MW h Tr a n s m i s s i o n 12 \ Lo s s e s 13 ) Tr a n s m i s s i o n 12 \ Lo s s e s ( 3 \ Tr a n s m i s s i o n (2 ) Lo s s e s 13 \ Tr a n s m i s s i o n (2 ) Lo s s e s 13 \ Ju n e 0 4 41 6 28 0 $9 7 2 , 4 8 0 $2 4 3 12 0 $2 9 , 4 0 3 94 4 00 0 $4 8 6 00 0 $6 9 32 9 34 4 00 0 $3 3 6 00 0 $4 6 , 4 2 6 31 3 60 0 03 0 80 0 $1 4 9 24 9 Ju l v 0 4 43 2 56 0 $9 7 2 , 4 8 0 $2 4 3 , 12 0 $3 0 53 4 $1 , 94 4 00 0 $4 8 6 00 0 $7 1 99 5 34 4 00 0 $3 3 6 00 0 $4 8 21 1 31 3 60 0 03 0 80 0 $1 5 4 99 0 Au o u s t 0 4 41 6 10 , 4 0 0 $9 7 2 , 4 8 0 $7 5 97 5 18 8 94 4 00 0 $1 5 1 , 87 5 $2 1 , 66 5 $1 , 34 4 , 00 0 $1 0 5 00 0 $1 4 50 8 31 3 60 0 $3 2 2 12 5 $4 6 64 0 Ju n e 0 5 41 6 28 0 $9 7 2 , 4 8 0 $2 4 3 , 12 0 $2 9 , 4 0 3 $1 , 94 4 00 0 $4 8 6 00 0 $6 9 32 9 34 4 00 0 $3 3 6 , 00 0 $4 6 , 4 2 6 31 3 60 0 03 0 80 0 $1 4 9 , 24 9 Ju l v 0 5 40 0 00 0 $9 7 2 , 4 8 0 $2 4 3 12 0 $2 8 , 27 2 $1 , 94 4 , 00 0 $4 8 6 00 0 $6 6 66 2 34 4 00 0 $3 3 6 , 00 0 $4 4 64 0 31 3 60 0 03 0 80 0 $1 4 3 , 50 9 Au o u s t 0 5 43 2 56 0 $9 7 2 , 4 8 0 $2 4 3 12 0 $3 0 , 53 4 94 4 , 00 0 $4 8 6 00 0 $7 1 99 5 $1 , 34 4 00 0 $3 3 6 , 00 0 $4 8 21 1 31 3 60 0 03 0 80 0 $1 5 4 99 0 Ju n e 0 6 41 6 28 0 $9 7 2 , 4 8 0 $2 4 3 12 0 $2 9 , 4 0 3 94 4 00 0 $4 8 6 00 0 $6 9 32 9 34 4 , 00 0 $3 3 6 00 0 $4 6 , 4 2 6 31 3 60 0 03 0 , 80 0 $1 4 9 24 9 Ju n e 0 6 40 0 00 0 $9 7 2 , 4 8 0 $2 4 3 , 12 0 $2 8 27 2 $1 , 94 4 00 0 $4 8 6 00 0 $6 6 66 2 34 4 , 00 0 $3 3 6 00 0 $4 4 64 0 31 3 , 60 0 03 0 80 0 $1 4 3 , 50 9 Au Q u s t 0 6 43 2 56 0 $9 7 2 , 4 8 0 $2 4 3 , 12 0 $3 0 53 4 94 4 00 0 $4 8 6 00 0 $7 1 99 5 34 4 00 0 $3 3 6 00 0 $4 8 21 1 31 3 , 60 0 $1 , 03 0 80 0 $1 5 4 , 99 0 Ju n e 0 7 41 6 28 0 $9 7 2 , 4 8 0 $2 4 3 12 0 $2 9 , 4 0 3 $1 , 94 4 00 0 $4 8 6 00 0 $6 9 32 9 34 4 , 00 0 $3 3 6 00 0 $4 6 42 6 31 3 60 0 03 0 80 0 $1 4 9 24 9 Ju n e 0 7 40 0 00 0 $9 7 2 , 4 8 0 $2 4 3 , 12 0 $2 8 27 2 $1 , 94 4 00 0 $4 8 6 00 0 $6 6 , 66 2 $1 , 34 4 , 00 0 $3 3 6 00 0 $4 4 , 64 0 $3 , 31 3 60 0 03 0 , 80 0 $1 4 3 50 9 Au Q u s t 0 7 43 2 56 0 $9 7 2 , 48 0 $2 4 3 12 0 $3 0 53 4 94 4 00 0 $4 8 6 , 00 0 $7 1 99 5 $1 , 34 4 00 0 $3 3 6 00 0 $4 8 21 1 31 3 60 0 03 0 80 0 $1 5 4 99 0 Ju n e 0 8 40 0 32 , 00 0 $9 7 2 , 4 8 0 $2 4 3 12 0 $2 8 , 27 2 94 4 00 0 $4 8 6 00 0 $6 6 66 2 34 4 00 0 $3 3 6 , 00 0 $4 4 64 0 31 3 , 60 0 $1 , 03 0 80 0 $1 4 3 , 50 9 Ju n e 0 8 41 6 28 0 $9 7 2 , 4 8 0 $2 4 3 12 0 $2 9 40 3 94 4 , 00 0 $4 8 6 00 0 $6 9 32 9 34 4 00 0 $3 3 6 00 0 $4 6 , 4 2 6 31 3 60 0 $1 , 03 0 80 0 $1 4 9 24 9 Au o u s t 0 8 41 6 28 0 $9 7 2 , 4 8 0 $2 4 3 , 12 0 $2 9 40 3 $1 , 94 4 00 0 $4 6 6 00 0 $6 9 , 32 9 34 4 , 00 0 $3 3 6 00 0 $4 6 , 4 2 6 31 3 60 0 03 0 80 0 $1 4 9 24 9 Ju n e 0 9 41 6 33 , 28 0 $9 7 2 48 0 $2 4 3 12 0 $2 9 , 4 0 3 94 4 , 00 0 $4 8 6 00 0 $6 9 32 9 34 4 00 0 $3 3 6 , 00 0 $4 6 , 4 2 6 31 3 , 60 0 $1 , 03 0 80 0 $1 4 9 , 24 9 Ju n e 0 9 41 6 28 0 $9 7 2 , 4 8 0 $2 4 3 , 12 0 $2 9 , 4 0 3 $1 , 94 4 00 0 $4 8 6 00 0 $6 9 , 32 9 34 4 , 00 0 $3 3 6 00 0 $4 6 , 4 2 6 31 3 60 0 03 0 , 80 0 $1 4 9 24 9 Au g u s t 0 9 41 6 28 0 $9 7 2 , 4 8 0 $2 4 3 12 0 $2 9 , 4 0 3 94 4 00 0 $4 8 6 00 0 $6 9 32 9 34 4 00 0 $3 3 6 00 0 $4 6 , 4 2 6 31 3 , 60 0 03 0 80 0 $1 4 9 24 9 To t a l s 57 6 16 0 83 4 , 88 0 $1 , 4 0 3 00 5 $5 0 9 03 7 $1 1 66 4 00 0 80 4 62 5 20 0 25 7 06 4 , 00 0 93 9 00 0 $8 0 3 74 3 $1 9 , 88 1 60 0 94 8 , 57 5 $2 , 58 3 , 87 6 Ad d i t i o n a l t r a n s m i s s i o n c o s t p e r M W h d e l i v e r e d : Ad d i t i o n a l l o s s e s p e r M W h d e l i v e r e Ad d i t i o n a l c o s t p e r M W h d e l i v e r e d : $1 0 , $0 , $1 1 , $2 , $0 , $3 , $2 0 , $2 , $2 2 , $4 , $2 , $6 , $1 4 , $1 . 4 0 $1 5 , $3 , $1 . 4 0 $4 , $3 4 , $4 , $3 8 , $1 V , $4 . 4 8 $1 4 , No t e s : (1 ) P P L M o n t a n a w i l l d e l i v e r 2 5 M W d u r i n g A u g u s t 2 0 0 4 , (2 ) T h r e e m o n t h s o f t r a n s m i s s i o n , (3 ) L o s s e s a r e c a l c u l a t e d u s i n g t h e c o s t o f e n e r g y a s s o c i a t e d w i t h t h e a b o v e M a y 8 , 2 0 0 3 q u o t e m u l t i p l i e d b y t h e l o s s r a t e s a s s o c i a t e d w i t h e a c h t r a n s m i s s i o n c o m p a n y , In p r a c t i c e , l o s s e s a r e n o n n a l l y c h a r g e d b a s e d o n d a i l y i n d e x p r i c e s a t t h e v a r i o u s t r a d i n g h u b s , Re s p o n s e t o R e q u e s t N o . Qu o t e s - M a y 8 , 2 0 0 3 Mi d - Co l u m b i a 0 3 Pa l o V e r d e 20 0 3 20 0 3 $ 4 6 , 50 I M W h $ 6 4 , 25 I M W h Mi d - C t o B P A t o N W M T t o I P C o Mi d - C t o A V A t o N W M T t o I P C o Mo n t h l y Mo n t h l y De l i v e r e d De l i v e r e d An n u a l Tr a n s m i s s i o n An n u a l Tr a n s m i s s i o n HL H r s MW h Tr a n s m i s s i o n (2 ) Lo s s e s ( 3 ) Tr a n s m i s s i o n (2 ) Lo s s e s ( 3 ) Ju n e 0 4 41 6 28 0 94 8 48 0 $9 8 7 12 0 $9 1 30 4 32 0 , 00 0 $5 7 9 12 0 $1 0 8 , 32 6 Ju l y 0 4 43 2 56 0 $3 , 94 8 48 0 $9 8 7 12 0 $9 4 81 5 32 0 00 0 $5 7 9 12 0 $1 1 2 49 3 Au Q u s t 0 4 ( 1 ) 41 6 10 , 4 0 0 94 8 , 4 8 0 $3 0 8 , 4 7 5 $2 8 53 2 32 0 00 0 $1 8 0 97 5 $3 3 85 2 Ju n e 0 5 41 6 28 0 94 8 , 4 8 0 $9 8 7 12 0 $9 1 30 4 32 0 00 0 $5 7 9 , 12 0 $1 0 8 32 6 Ju l v 0 5 40 0 00 0 94 8 , 4 8 0 $9 8 7 12 0 $8 7 79 2 32 0 00 0 $5 7 9 12 0 $1 0 4 16 0 Au a u s t 0 5 43 2 56 0 94 8 , 4 8 0 $9 8 7 12 0 $9 4 81 5 32 0 00 0 $5 7 9 12 0 $1 1 2 49 3 Ju n e 0 6 41 6 28 0 94 8 48 0 $9 8 7 12 0 $9 1 30 4 32 0 00 0 $5 7 9 12 0 $1 0 8 32 6 Ju n e 0 6 40 0 00 0 94 8 48 0 $9 8 7 12 0 $8 7 79 2 32 0 00 0 $5 7 9 12 0 $1 0 4 16 0 Au q u s t 0 6 43 2 56 0 94 8 , 4 8 0 $9 8 7 12 0 $9 4 81 5 32 0 00 0 $5 7 9 12 0 $1 1 2 , 4 9 3 Ju n e 0 7 41 6 28 0 94 8 , 48 0 $9 8 7 12 0 $9 1 30 4 32 0 00 0 $5 7 9 12 0 $1 0 8 , 32 6 Ju n e 0 7 40 0 00 0 94 8 , 4 8 0 $9 8 7 12 0 $8 7 79 2 32 0 00 0 $5 7 9 12 0 $1 0 4 16 0 Au q u s t 0 7 43 2 56 0 94 8 , 48 0 $9 8 7 12 0 $9 4 81 5 32 0 00 0 $5 7 9 12 0 $1 1 2 , 4 9 3 Ju n e 0 8 40 0 00 0 94 8 , 4 8 0 $9 8 7 12 0 $8 7 79 2 32 0 00 0 $5 7 9 12 0 $1 0 4 16 0 Ju n e 0 8 41 6 28 0 94 8 , 4 8 0 $9 8 7 12 0 $9 1 30 4 32 0 00 0 $5 7 9 12 0 $1 0 8 32 6 Au a u s t 0 8 41 6 28 0 $3 , 94 8 , 4 8 0 $9 8 7 12 0 $9 1 30 4 32 0 00 0 $5 7 9 12 0 $1 0 8 32 6 Ju n e 0 9 41 6 28 0 94 8 , 4 8 0 $9 8 7 12 0 $9 1 30 4 32 0 00 0 $5 7 9 12 0 $1 0 8 32 6 Ju n e 0 9 41 6 28 0 $3 , 94 8 , 4 8 0 $9 8 7 12 0 $9 1 30 4 32 0 00 0 $5 7 9 12 0 $1 0 8 32 6 Au g u s t 0 9 41 6 28 0 94 8 , 4 8 0 $9 8 7 12 0 $9 1 30 4 32 0 00 0 $5 7 9 12 0 $1 0 8 32 6 To t a l s 57 6 16 0 $2 3 69 0 88 0 69 6 50 5 58 0 69 5 $2 5 , 92 0 00 0 $3 , 34 2 00 5 87 5 40 1 Ad d i t i o n a l t r a n s m i s s i o n c o s t p e r M W h d e l i v e r e d : Ad d i t i o n a l l o s s e s er M W h d e l i v e r e d : Ad d i t i o n a l c o s t p e r M W h d e l i v e r e d : $4 1 , $2 , $4 3 , $9 , $2 , $1 2 , $4 4 , $3 , $4 8 , $5 , $3 , $9 , No t e s : (1 ) P P L M o n t a n a w i l l d e l i v e r 2 5 M W d u r i n g A u g u s t 20 0 4 , (2 ) T h r e e m o n t h s o f t r a n s m i s s i o n , (3 ) L o s s e s a r e c a l c u l a t e d u s i n g t h e c o s t o f e n e r g y a s s o c i a t e d w i t h t h e a b o v e M a y 8 , 2 0 0 3 q u o t e m u l t i p l i e d b y t h e l o s s r a t e s a s s o c i a t e d w i t h e a c h t r a n s m i s s i o n c o m p a n y - In p r a c t i c e , l o s s e s a r e n o r m a l l y c h a r g e d b a s e d o n d a i l y i n d e x p r i c e s a t t h e v a r i o u s t r a d i n g h u b s ,