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Home My WebLink About20060712IPC to Staff 18.pdfIDAHO POWER COMPANY O. BOX 70 BOISE, IDAHO 83707 RECEIVED 2006 JUL '2 PH 2: IDAHO Purj! IC UTILITIES COI\4r.1/SSION An IDACORP Company July 12, 2006 Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street P. O. Box 83720 Boise, Idaho 83720-0074 Re:Case No. IPC-06- Idaho Power Company s First Supplemental Response to the First Production Request of Commission Staff Dear Ms. Jewell: Please find enclosed for filing an original and two (2) copies of Idaho Power Company s First Supplemental Response to the First Production Request of Commission Staff regarding the above-described case. I would appreciate it if you would return a stamped copy of this transmittal letter to me in the enclosed self-addressed stamped envelope. Very truly yours q(~ (fi. Monica B. Moen MBM:sh Enclosures Telephone (208) 388-2692 Fax (208) 388-6936, E-mail MMoenriY;dahopower.com BARTON L. KLINE ISB #1526 MONICA B. MOEN ISB #5734 Idaho Power Company P. O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2682 FAX Telephone: (208) 388-6936 RECEIVED 2006 JUL 12 PH 2= 25 IDAHO PUBLIC UTILITIES COMMISSION Attorney 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 A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE RATE BASING OF THE EVANDER ANDREWS POWERPLANT. CASE NO. IPC-06- IDAHO POWER COMPANY'S FIRST SUPPLEMENTAL RESPONSE TO THE FIRST PRODUCTION REQUEST OF 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 16, 2006, herewith submits the following supplemental information: IDAHO POWER COMPANY'S FIRST SUPPLEMENTAL RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF Page REQUEST NO. 18: Please perform the following computer simulation runs for Idaho Power s system using the AURORA model. Before making any runs however, review all assumptions for the transmission interconnections to Idaho Power system , all assumptions for Idaho Power s existing generating plants, power purchase and sales contracts , load shape and any other necessary input assumptions and make any necessary adjustments so that the-model corresponds as closely as possible to actual conditions. Insure that the load , and fuel price forecasts assumed in the modeling runs are consistent with those of the 2006 IRP. It may be desirable to use the AURORA Portfolio" feature to model Idaho Power for purposes of the following analyses. Perform an hourly simulation beginning June 1 , 2007 and extending through December 2032 (running five years beyond the conclusion of the period of interest as recommended by EPIS) under an operating mode in which no new capacity can be added within the Idaho Power system and supply deficiencies are met through power imports from outside Idaho Power s system. Based on the results of this run , identify the number and timing of any hours in which transmission constraints limit the amount of power that can be imported. In addition , identify those transmission interconnections on which constraints occur. Identify the timing and duration of any load curtailment predicted by the model. Report the results in graphical format, including any narrative necessary to interpret the results. IDAHO POWER COMPANY'S FIRST SUPPLEMENTAL RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF Page 2 Perform a long-term optimization (capacity addition) study for the period June 1 , 2007 through December 2032. Use hourly dispatch to fully capture peak load hours. Confirm that the new resource choices available match those identified in the Company s 2006 IRP and that the Evander Andrews project is also available as a choice at the prices and terms assumed in the RFP analysis. Assume also that market purchases are an available option. Based on the results of this run, identify the type , timing and location of new resources added along with the amount of capacity and energy associated with each new resource. Confirm whether the Evander Andrews project is chosen as an alternative to meet load. Summarize the months and the hours within each month when the Evander Andrews plant would be used to meet load. Identify any other resources selected by the model. Perform an hourly simulation beginning June 1 , 2007 and extending through December 2032 assuming that capacity and energy is available in accordance with the Evander Andrews project but at zero cost. Compare the net power supply cost Over the duration of the simulation to the net power supply cost for the model rim conducted in part "b" above. Compare the difference in net power supply cost to the cost of the Evander Andrews project. IDAHO POWER COMPANY'S FIRST SUPPLEMENTAL RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF Page 3 RESPONSE TO REQUEST NO. 18: The information requested in subparts "" and "b" has been provided. Attached hereto as "Response to Request No. 18(c)" is Idaho Power s response to subpart "" of this Request No. 18. DATED at Boise , Idaho, this 12th day of July 2006. (13. MONICA B. MOEN Attorney for Idaho Power Company IDAHO POWER COMPANY'S FIRST SUPPLEMENTAL RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF Page 4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 12th day of July, 2006, I served a true and correct copy of the within and foregoing IDAHO POWER COMPANY'S FIRST SUPPLEMENTAL RESPONSE TO THE FIRST PRODUCTION REQUEST OF COMMISSION STAFF upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Hand Delivered Donovan Walker US. Mail Deputy Attorney General Overnight Mail Idaho Public Utilities Commission FAX 472 W. Washington (83702)Email: Donovan.walkerCfYpuc.idaho.gov O. Box 83720 Boise, Idaho 83720-0074 Industrial Customers of Idaho Power Hand Delivered Peter 1. Richardson, Esq.-1L US. Mail Richardson & O'Leary Overnight Mail 515 N. 27th Street FAX O. Box 7218 Email: peterCfYrichardsonandoleary.com Boise, Idaho 83702 Don Reading Ben Johnson Associates Hand Delivered 6070 Hill Road US. Mail Boise, Idaho 83702 Overnight Mail FAX Email: dreadingCfYmindspring.com Mountain View Power, Inc.Hand Delivered Ronald L. Williams US. Mail Williams Bradbury, P.Overnight Mail O. Box 2128 FAX Boise, Idaho 83701 Email: ron cfy williamsbradbury .com Robert D. Looper, President Hand Delivered Mountain View Power, Inc.US. Mail 1015 W. Hays Street Overnight Mail Boise, Idaho 83702 FAX Email: rlooperCfYspellc.com f3. Monica B. Moen CERTIFICATE OF SERVICE, Page IDAHO POWER COMPANY CASE NO. IPC-O6- FIRST PRODUCTION REQUEST OF COMMISSION STAFF SUPPLEMENTAL RESPONSE TO REQUEST NO. Request 18 C - Avoided cost analysis with 170 MW generating resource added to the portfolio at zero cost. Reduced resources added in 18 B by 170MW (48MW CHP 2009- 2012, and 122 MW Coal in 2012) to account for capacity displacement of 170 MW resource. Total zero cost MWh over the 25 year study period are 38 060 881 with an estimated nominal value of $69 per MWh ($2 640 869,220/38 060 881) Total Portfolio Cost comparison Idaho Power Co. Total Portfolio Cost Comparison Jun 2007 - Dec 2032 170 MW zero cost resource with displaced RMT capacity Nominal Dollars k.";\ffdo:LI(i);- . '::. '!:jiil leOl:f;i:;;!/fL.",i:': '!:,,::TotaIJ4ost 027 598.i Total Evander : Total , $1 386 729. 640,869.