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HomeMy WebLinkAbout200406231st Response of U S Geo to Staff.pdfConley E. Ward (ISB No. 1683) GIVENS PURSLEY LLP 601 W. Bannock Street O. Box 2720 Boise, ID 83701-2720 Telephone: (208) 388-1200 Fax: (208) 388-1300 cew(fj)gi venspursley. com FILED rv1l!:JHECEt\lED ii"tl ~ 4: v~ C'j J...hi rfl Ii) . \0 ,~U~~:~IC . UTiLiTIES CUt"H1ISS10N Attorneys for U.S. Geothermal, Inc. S:\CLIENTS\6667\2\USGeo Rsp to 1st Prod Req of IPC.DOC BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION S. GEOTHERMAL, INC., an Idaho corporati on Case No. IPC-04- Complainant S. GEOTHERMAL, INC. RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST vs. IDAHO POWER COMPANY, an Idaho corporation Respondent. BOB LEWANDOWSKI ~d MARK SCHROEDER Case No. IPC-04- Complainants vs. IDAHO POWER COMPANY, an Idaho corporati on Respondent. COMES NOW U.S. Geothermal, Inc. ("S. Geothermal"), by and through its attorneys of record, Givens Pursley LLP , and hereby responds to the First Production Request of Idaho ORIGINAL S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST - Page 1 of Power Company to U.S. Geothermal, Inc. All responses were prepared by Kevin Kitz, in consultation with counsel. REQUEST NO.1: Please provide the following for each turbine generator that will be used to generate electric energy to be delivered to Idaho Power under the Firm Energy Sales Agreement U.S. Geothermal seeks to obtain from Idaho Power as a result of this complaint proceeding: (a)The manufacturer s nameplate capacity rating in KW. (b)Documentation showing how the manufacturer s nameplate rating is computed. RESPONSE: In the USGEO testimony to the Idaho Public Utilities Commission (IPUC), filed after this request for information from Idaho Power (IPCo), USGEO indicated that it does not yet know the precise turbine generator rating. As soon as that information is available, USGEO will provide that information to Idaho Power. To summarize the testimony submitted to the IPUC, the reason that the information is not known at this time is: Detailed engineering of the power plant has not yet been started, and the exact parasitic load of the power plant is not yet known. The turbine generator nameplate is in part dependent on the combined load of the production well pumps and injection well pumps, which in turn is a function of the well performance, which is not precisely known at this time. The turbine generator nameplate rating is dependent on the outcome of the complaint currently before the IPUC, and whether the proposed contract will be based on an annual average generation, or a delivery not to exceed 10 MW in any hour. S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST - Page 2 of 12 REQUEST NO.2: Does U.S. Geothermal intend to deliver any electric energy generated by any of the turbine generators identified in Request No.1 to any entity other than Idaho Power? If the answer is yes, please identify the prospective recipients, the amounts which may be delivered to these recipients and the reason for such deliveries. RESPONSE: USGEO has no other contracts, nor immediately pending contracts, which would be served by RRGPP generator(s). USGEO is pursuing other opportunities for power sales from the first unit or additional units at Raft River. These opportunities include BP A, other BP A customers in Oregon, and the ongoing PacifiCorp renewables RFP. Over the next several years, as more geothermal resource is proven-up, USGEO would expect to add additional capacity under the FERC QF number of the first power plant. (The FERC limit is no more than 80 MW. The reason for pursuing sales to other parties is that Idaho Power has offered only 850/0 the regional non-firm rate for deliveries above the 10 MW limit from the RRGPP firm capacity New firm capacity of any type, including geothermal, cannot be built for the spot market dump rate being offered by Idaho Power. Therefore in order to build a strong geothermal power business, U.S. Geothermal Inc. must seek other purchasers than Idaho Power. REQUEST NO.3: Please provide a map showing the location of each well and turbine generator that will be used to generate electric energy to be delivered to Idaho Power under the Firm Energy Sales Agreement U.S. Geothermal seeks to obtain as a result of this complaint. The map should be to scale with the scale explicitly stated. RESPONSE: The general conceptual layout for the development of the RRGPP is shown in Figure 1. It includes all information for requests numbers three and four, to the extent that the information is known at this time. A summary description follows. S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST - Page 3 of 12 Wells & Pipelines: The existing five production wells are located within 1 000' to 6 000' of the tentative power plant site. The current injection wells are located about 3 000 feet beyond the furthest production well, or about 9 000' from the power plant site. The geothermal water is pumped from the wells with downhole pumps. Pipelines will deliver the water from the production wells to the power plant. Where the flow from more than one well can be combined in a single pipeline, it will be. At the power plant site, the flow from all the wells will be combined in a single pipe to the first power plant heat exchanger. After the geothermal water has passed through the power plant, it will be delivered to the injection wells through another pipeline. Production and injection pipeline routes will be optimized within the constraints of land use, ownership, and leases. Additional wells will be required for the 10 MW operation. New wells will likely be sited near existing wells. Power Distribution Lines: Each of the production wells will require a power supply to operate the downhole pumps. Additionally, high-pressure injection pumps may be required at the two injection wells. The power lines used to supply these pumps will be separate distribution poles from those used for the local domestic and irrigation loads of the Raft River Rural Electric Co-Op (RRREC) in order to improve power plant reliability and availability. Distribution lines will most likely be at 34.5kV. They will originate from the power plant, following existing distribution corridors. At least some of the distribution lines will be able to be back-fed from the RRREC to enable power plant startup. Transmission Lines From the 13.8kV power plant generator(s), the power will be transmitted 2.5 miles north-east to the 138/34.5 kV Bridge Substation. Bridge is a point of delivery of the Bonneville Power Administration (BP A) to the RRREC. Power from the RRGPP will be delivered to the BP A side of the 34.5 kV buss through a buss expansion. There is room S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST - Page 4 of 12 in the substation yard for the expansion. Power deliveries at Bridge will be metered at the substation. Discussions with BP A confirm that the amount of power deemed delivered to Idaho Power under the proposed PURP A contract will be the power deliveries metered at Bridge minus any losses determined by the BP A transmission group. REQUEST NO.4: Please provide a drawing showing how the wells and turbine- generators shown on the map provided in response to Request No.3 will be interconnected to deliver energy to the electrical systems of Idaho Power, BP A and Raft Rural Electric Co-op. RESPONSE: Please see Response to Request No.3 above. REQUEST NO.5: Please identify the months, days within the months, and hours within the days when U.S. Geothermal expects its energy deliveries to Idaho Power will exceed 10 000 kWh's per hour. For each month, day and hour identified, please specify the amounts by which S. Geothermal expects its energy deliveries to exceed 10 000 kWh's per hour. RESPONSE: As IPCo knows, the output from a fully capable thermal plant is a function of the ambient conditions. Therefore, IPCo is essentially requesting USGEO to forecast the weather on an hourly basis for the next 20 years, which is neither reasonable nor possible. Although IPCo s request cannot be answered precisely, USGEO has examined historical hourly data over a 10-year period, and has attached the histograms of the temperatures and resultant generation that would occur for the RRGPP at full capability in answer to IPCo' s InquIry. Figure 2 is the preliminary theoretical output of a 10MW plant versus temperature. Figure 3 is a 10 year histogram of the hourly temperatures. Table 1 provides the data used in Figures 2 and 3. S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST - Page 5 of 12 REQUEST NO.6: What is the expected capacity factor of the Facility (as that term is defined in Exhibit A to your Complaint)? RESPONSE: USGEO presumes that IPCo is requesting information on the annual capacity factor of the RRGPP. The geothermal power industry has a long history of operating binary plants at 95% annual capacity factor or greater. USGEO expects similar performance from the RRGPP, and based the net monthly energy, provided in the table of Article 6.2 of the proposed contract as being 95% of the maximum monthly energy. The maximum monthly energy amount is the expected net output of a 10MW air-cooled geothermal power plant, at the historical monthly average temperature. Geothermal power plants do not require an annual scheduled maintenance period. When routine scheduled maintenance is required, USGEO will try to schedule it during Season (March, April, May) when power is least needed by IPCo. Because there will be few shutdowns during Seasons 2 and 3 , net energy deliveries during those seasons will generally be closer to the Maximum Monthly Energy amounts. It is both conceivable and likely that the RRGPP could deliver a 100% capacity factor in years in which the annual average temperature is 48OF (the presumed design temperature). In those years in which the annual average temperature is greater than 48O , especially if there is a long hot summer, the annual capacity factor could be several percent lower. On the other hand for those years with lower than expected annual average temperature, or those years with particularly cool summers, the RRGPP will be capable of an annual capacity factor greater than 100%. However, USGEO has agreed to deliveries monthly, seasonally, and annually in deference to IPCo, even though such caps are a contractual artifice and produce a negative economic impact for USGEO. S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST - Page 6 of 12 REQUEST NO.7: During maintenance outages or at other times when the Facility energy loads exceed the Facility s total generation, does U.S. Geothermal expect to purchase back-up, supplemental or any other type of power from Raft River Rural Electric Co-op or from any other entities? If so, please provide the best available estimate of the amounts and timing of such purchases. RESPONSE: Backup power will be supplied by the RRREC. REQUEST NO.8: Based upon the fuel source and the technology being used by the Facility, will the Facility operate as a flat, around-the-clock, base load generation resource or will it run as an intermittent generation resource? RESPONSE: Unless down for scheduled maintenance, the RRGPP will operate at full capability between 95% and 100% of the time, on an annual basis. As discussed above, the capability of the plant is a function of ambient conditions. For this reason the output of the RRGPP is not flat, but will vary based on the temperature of the air going to the air-cooled condensers. S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST - Page 7 of 12 Fieure 1 (RRGPP facilities, geothermal fluid handling, and interconnection) June 25 , 2004 I I38kV line to Minidoka -If Interconnect at 34.5kV at the existing BP substation at Bridge, Idaho (2.5 miles from Raft River Geothermal Power Plant - not to scale) roo" ",, \, roo Oa.---~--------_.... ..... 18 ,..--- -..... MW-6 \ 0 M\jV-6 I..... - - - 34.5 kV interconnect between power plant & BP A Bridge Substation 138 kV transmission line from Minidoka to Bridge to W. Wendover - - - - Hot geothermal water from production wells to power plant Cooled geothermal water from power plant to injection wells . . Tentative Power Plant Location BP A/Raft River Co-op 138/34.5kV substation S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST - Page 8 of 12 ~ 12. !. 10. ::::s.& 8. ::::s 'S 6. ~ 4. .!!! D. 2. 3500 ~ 3000 g' 2500"CI 2000 ::::s ::J: '0 1500 1000 14,F iaure-2 Generation from a 1 OMW Geothermal Power Plant as a function of drybulb temperature ~ ~ ~ & ~ ~ ~ ~ # ~ # # ~ # # # ~ ~ # # # # # Temperature (degF . in 2 degree increments) 4500 Fiaure 3 Raft River Geothermal Power Plant. US Geothermal. Inc. Histogram of 10 years of drybulb data in 2degF increments froJu~et-4Neattier-StatiOA-iJ:l-Malta~ - i!es-NE-o~aft-a.iveJ:. .. Annual Average T = 48F . . 4000 500 ~ p ~ ~ ~ ~ & ~ # ~ # ~ & # $ # ~ ~ ~ $ # ~ ~ Drybulb Temperature (degF) S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST- Page 9 of 12 S. G e o t h e r m a l , I n c . Ta b l e 1 Ra f t R i v e r G e o t h e r m a l P o w e r P l a n t 10 y e a r s o f d r y b u l b d a t a i n 2 d e g F i n c r e m e n t s fr o m t h e A g r i m e t w e a t h e r s t a t i o n i n M a l t a . I d a h o ( - 2 0 m i l e s N E o f R a f t R i v e r ) An n u a l A v e r a g e T e m p e r a t u r e = 4 8 d e g r e e s F a h r e n h e i t Te m er a t u r e s B e l o w A n n u a l A v e r a e T e m er a t u r e Ye a r 0: : 0 0:: 2 .: : 4 .:: 6 .: : 8 .: : 1 0 0:: 1 2 0: : 1 4 0:: 1 6 0: : 1 8 .:: 2 0 0: : 2 2 .:: 2 4 0: : 2 6 .:: 2 8 0: : 3 0 .:: 3 2 .: : 3 4 .:: 3 6 0: : 3 8 0:: 4 0 .: : 4 2 .:: 4 4 .: : 4 6 .:: 4 8 19 9 4 11 8 16 9 26 1 21 5 27 0 32 0 36 3 47 2 37 1 42 0 31 3 30 7 32 4 32 0 19 9 5 10 7 14 7 20 0 22 8 27 6 37 8 38 3 38 9 37 2 41 1 46 7 46 3 41 0 19 9 6 15 2 19 5 23 1 31 1 36 8 38 6 44 4 42 5 41 3 43 8 40 4 40 4 36 0 19 9 7 11 7 15 1 20 5 29 0 28 5 37 0 38 7 41 3 39 8 34 4 35 9 32 9 29 3 29 7 19 9 8 16 5 20 6 23 2 32 7 41 1 49 2 43 4 47 1 47 2 44 2 44 0 42 1 19 9 9 12 4 16 9 15 6 22 2 28 7 35 4 48 7 48 4 50 6 42 8 36 6 36 6 33 5 35 8 20 0 0 11 8 18 3 20 3 25 8 26 9 29 7 33 7 41 2 40 6 43 3 39 1 34 6 32 6 33 3 33 5 20 0 1 10 9 13 1 14 9 16 7 24 8 22 9 25 8 32 8 33 0 34 7 26 7 30 5 29 1 31 4 26 6 28 9 29 1 20 0 2 12 2 13 3 14 2 20 0 24 3 28 4 26 8 30 1 30 7 35 1 32 8 33 4 33 9 33 6 31 7 28 7 29 6 20 0 3 10 8 13 3 18 8 23 0 28 9 38 2 39 8 38 2 41 8 39 7 40 9 37 8 32 6 29 1 20 0 4 11 6 13 6 14 5 14 7 18 3 15 7 12 9 10 6 To t a l H 20 1 11 7 16 9 23 4 30 3 40 6 48 3 66 6 80 6 97 1 13 8 4 18 0 8 22 3 3 25 3 6 30 1 1 35 2 8 40 4 9 41 7 7 41 0 7 39 5 4 38 2 8 36 4 5 35 3 5 34 2 6 Ex p e c t e d G e n e r a t i o n B e l o w t h e A n n u a l A v e r a Q e T e m p e r a t u r e (M W ) 12 . 12 . 12 . 12 . 12 . 12 , 12 , 12 , 12 , 11 . 11 . 11 . 11 . 11 . 11 . 11 . 4 11 . 11 . 11 . 10 . 10 . 10 . 10 . 10 . 10 . To t a l H o u r s B e l o w t h e A n n u a l A v e r a g e T e m p e r a t u r e ( 4 8 d e g F ) % o f y e a r b e l o w d e s i g n p o i n t 49 , 66 5 56 % Te m p e r a t u r e s A b o v e A n n u a l A v e r a a e T e m p e r a t u r e Ye a r .: : 5 0 .:: 5 2 .: : 5 4 .:: 5 6 .: : 5 8 .:: 6 0 .: : 6 2 .: : 6 4 .:: 6 6 .: : 6 8 .:: 7 0 .:: 7 2 .: : 7 4 .: : 7 6 .:: 7 8 .:: 8 0 .: : 8 2 .: : 8 4 .: : 8 6 .:: 8 8 .:: 9 0 .:: 9 2 .: : 9 4 .: : 9 6 .: : 9 8 .: : 1 0 0 ::0 0 1 0 0 19 9 4 29 3 28 4 27 2 26 1 25 5 22 5 24 7 21 8 21 9 19 1 17 2 18 8 14 3 14 6 14 3 14 2 13 0 11 1 12 3 11 3 19 9 5 41 4 35 2 36 3 32 8 32 3 24 1 22 2 19 6 18 3 18 7 16 4 15 4 12 1 13 4 11 2 10 1 19 9 6 32 0 35 0 30 1 26 5 22 9 21 9 21 7 19 3 18 3 14 6 13 4 11 3 12 7 14 0 16 2 12 8 10 5 19 9 7 31 0 30 0 29 6 25 1 27 6 28 2 23 2 25 4 21 0 21 4 21 4 14 9 16 2 11 7 12 9 10 1 10 8 19 9 8 36 4 33 4 29 3 25 6 23 5 24 2 21 6 16 9 17 3 15 6 13 0 12 4 19 9 9 29 4 27 9 25 1 24 6 25 3 23 9 20 5 21 8 19 4 16 5 16 4 17 5 14 6 11 1 12 2 11 3 20 0 0 28 6 25 6 24 1 23 0 23 6 21 4 19 5 22 9 21 2 20 7 18 6 18 1 15 3 14 4 11 3 13 9 11 3 10 3 11 2 20 0 1 29 9 22 3 25 8 27 3 24 1 26 3 24 2 22 1 21 4 17 7 21 4 18 3 19 4 14 7 14 4 13 5 11 4 10 9 10 5 20 0 2 28 3 26 6 27 1 24 3 21 8 21 8 21 9 20 0 20 0 16 8 17 3 13 6 17 4 17 0 14 3 12 8 14 0 11 7 20 0 3 30 6 25 8 24 0 24 2 20 9 23 1 23 2 22 3 19 2 15 6 15 4 18 0 16 2 17 2 14 1 14 5 15 0 15 7 10 2 20 0 4 To t a l H 3 2 1 5 29 3 6 28 2 7 26 2 9 24 8 9 23 9 9 22 4 5 21 3 4 20 0 2 17 8 4 17 1 8 15 8 8 14 8 0 13 7 2 12 8 8 11 9 1 11 4 8 10 2 1 88 4 83 0 67 3 52 3 32 3 21 4 13 0 Ex p e c t e d G e n e r a t i o n B e l o w t h e A n n u a l Av e r a Q e T e m p e r a t u r e (M W ) 10 . 8. 4 5. 4 To t a l H o u r s A b o v e t h e A n n u a l A v e r a g e T e m p e r a t u r e ( 4 8 d e g F ) 39 , 14 6 % o f y e a r a b o v e d e s i g n p o i n t 44 % S. G E O T H E R M A L , I N C . S R E S P O N S E T O I D A H O P O W E R C O M P A N Y ' S F I R S T P R O D U C T I O N R E Q U E S T - P a g e 1 0 o f I) -:;' g: J DATED this ~day of June 2004. (yJ b-L S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST - Page 11 of CERTIFICA TE SERVICE I HEREBY CERTIFY that on this J '0 day of June 2004, I caused to be served a true and correct copy of the foregoing document by the method indicated below and addressed to the following: Jean Jewell Idaho Public Utilities Secretary 472 W. Washington Street O. Box 83720 Boise, ID 83720-0074 S. Mail Hand Delivered Overnight Mail Facsimile Barton L. Kline Idaho Power Company 1221 W. Idaho Street O. Box 70 Boise, ID 83707 S. Mail Hand Delivered Overnight Mail Facsimile Peter J. Richardson Richardson & O'Leary 99 E. State Street, Ste. 200 O. Box 1849 Eagle, ID 83616 S. Mail Hand Delivered Overnight Mail acsimil e UJ~ Coni S. GEOTHERMAL, INC.S RESPONSE TO IDAHO POWER COMPANY'S FIRST PRODUCTION REQUEST - Page 12 of 12