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Home My WebLink About20060816IPC to Staff 76-80.pdfIDAHO POWER COMPANY O. BOX 70 BOISE, IDAHO 83707 RECEIVED 200G AUG \ 6 PH 4: 32 IO,o.HO P.l!BUC . i UTILITIES CONIN11SSION An IDACORP Company August 16, 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 Response to the Second Production Request of the Commission Staff Dear Ms. Jewell: Please find enclosed for filing an original and two (2) copies of Idaho Power Company s Response to the Second Production Request of the Commission Staff regarding the above-referenced matter. 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 (/J. Monica B. Moen MBM:sh Enclosures Telephone (208) 388-2692, Fax (208) 388-6936, E-mail MMoen(g)idahopower.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 200G AUG \ 6 PH 4: 33 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 EV ANDER ANDREWS POWERPLANT. CASE NO. IPC-06- IDAHO POWER COMPANY' RESPONSE TO THE SECOND PRODUCTION REQUEST OF COMMISSION STAFF COMES NOW , Idaho Power Company ("Idaho Power" or "the Company"), and , in response to the Second Production Request of the Commission Staff to Idaho Power Company dated July 19 , 2006, herewith submits the following information: IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF COMMISSION STAFF Page REQUEST NO. 76: Please provide data or analysis to support the required Idaho Power Company gas supply construction costs added by Idaho Power to each bid. RESPONSE TO REQUEST NO. 76: The gas analysis worksheet is attached hereto and identified as "Response to Request No. 76." This worksheet was developed by Power Engineers at the request of Idaho Power s Peaking Resource RFP Evaluation Team. Power Engineers reviewed the gas supply available at each site and the gas pressure requirements of the generation equipment proposed at each site. Power Engineers verified the gas pressure availability and performed engineering calculations to determine the size of the gas line required and whether compression equipment would be needed to accommodate the proposed equipment. The cost of the gas connection was supplied by Power Engineers with input from Idaho Power. Careful consideration for consistency in the gas analysis of each Respondent's proposal was maintained. The response to this request was prepared by F. Gregory Hall , Principal Engineer, Idaho Power Company, in consultation with Monica B. Moen, Attorney II Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF COMMISSION STAFF Page 2 REQUEST NO. 77: Please provide data or analysis to support the costs added by Idaho Power to each bid for capitalized property taxes. RESPONSE TO REQUEST NO. 77: The amounts added to each bid for estimated capitalized property taxes were based on an assumption that Idaho Power would capitalize the property taxes for that portion of the tax year that the plant was still under construction. This period was assumed to be January through March of 2008. The plant cost amount was multiplied by the estimated tax levy rate for the site and then divided by four to determine the amount of taxes that would be capitalized for the three- month period of January-March 2008. See also the document attached to the Response to Request No. 78 for the capitalized property tax amounts attributed to each proposal. The response to this request was prepared by Randy Henderson Business Analyst, Idaho Power Company, in consultation with Monica B. Moen Attorney II , Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF COMMISSION STAFF Page 3 REQUEST NO. 78: Please provide data or analysis to support the costs added by Idaho Power to each bid for air and use permitting costs. RESPONSE TO REQUEST NO. 78: Please refer to the document attached hereto and identified as "Response to Request No. 78." The costs that were used are based on the Company s experience with past projects and ongoing air permitting costs at the existing gas turbine plants. As stated in the RFP, Idaho Power would provide all air permitting costs for the Bennett Mountain and Evander Andrews sites. The developer would be responsible for the costs of air permitting any other sites. With that in mind, the Company allocated $300 000 for the costs of permitting the Evander Andrews and Bennett Mountain proposals. This amount includes development of the Permit to Construct ($80 000), CEMS certification ($25 000), Relative Accuracy Test Audit ($25 000), Tier 1 Title V Permit Application ($100 000), Performance Testing ($20 000) and miscellaneous consultation ($50,000). Idaho Power allocated $150 000 for permitting costs for each or the other sites. This amount includes the Tier 1 Permit Application ($100 000) and miscellaneous consultation ($50 000). The Tier 1 Title V Permit Application is developed after the Permit to Construct is issued and was not included in any of the Respondents' bids. To maintain consistency among each of the proposals with regard to this analysis, the costs of the Tier 1 Permit Application and miscellaneous consultation were added to proposals that were located at sites other than Bennett Mountain and Evander Andrews. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF COMMISSION STAFF Page 4 The response to this request was prepared by F. Gregory Hall , Principal Engineer, Idaho Power Company, in consultation with Monica B. Moen , Attorney Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF COMMISSION STAFF Page 5 REQUEST NO. 79: Please explain the difference between the $49 999,000 firm contract price shown on line 21 of witness Said's direct testimony and the plant cost amount shown on the Stage II Price Screening Score Sheets. RESPONSE TO REQUEST NO. 79: The $49 999,000 firm contract price resulted from extensive final contract negotiations with Siemens Power Generation, Inc. while the $50 055,000 figure represents the amount Siemens originally submitted in its bid. The difference in cost is due to negotiations between the parties concerning detailed components of Siemens' original bid. Those negotiations resulted in reducing the final turnkey price slightly. The plant cost used for evaluation of the Siemens bid was based on the $50 055 000 amount, plus approximately $727 000 of directly assigned capital costs by Idaho Power for items such as capitalized property taxes, air use and permitting costs , and required gas construction. Please refer to the document attached to the Response to Request No. 78. The response to this request was prepared by Randy Henderson Business Analyst, Idaho Power Company, in consultation with Monica B. Moen Attorney II , Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF COMMISSION STAFF Page 6 REQUEST NO. 80: Please provide an electronic copy of all input and output files used to perform the AURORA analysis requested in Staff Request No. 18. Please state the version of AURORA used. RESPONSE TO REQUEST NO. 80: Please refer to the CD files attached hereto as "Response to Request No. 80. The response to this request was prepared by Karl Bokenkamp, General Manager, Power Supply Operations and Planning, Idaho Power Company, in consultation with Monica B. Moen, Attorney II , Idaho Power Company. DATED at Boise, Idaho , this 16th day of August 2006. CB ?J1he- MONICA B. MOEN Attorney for Idaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF COMMISSION STAFF Page 7 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 16th day of August 2006 , I served a true and correct copy of the within and foregoing IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF COMMISSION STAFF upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Donovan Walker Deputy Attorney General Idaho Public Utilities Commission 472 W. Washington (83702) O. Box 83720 Boise, Idaho 83720-0074 ~Hand Delivered - U.S. Mail Overnight Mail FAX --X- Email: Donovan.walker(g)puc.idaho.gov Industrial Customers of Idaho Power Peter J. Richardson , Esq. Richardson & O'Leary 515 N. 2ih Street O. Box 7218 Boise , Idaho 83702 Hand Delivered X U.S. Mail Overnight Mail FAX --X- Email: peter(g) richardsonandoleary.com Don Reading Ben Johnson Associates 6070 Hill Road Boise, Idaho 83702 Hand Delivered X U.S. Mail Overnight Mail FAX Email: dreading(g)mindspring.com (f;~ Monica B. Moen CERTIFICATE OF SERVICE, Page IDAHO POWER COMPANY CASE NO. IPC-O6- SECOND PRODUCTION REQUEST OF COMMISSION STAFF RESPONSE TO REQUEST NO. 76 IDAHO POWER COMPANY CASE NO. IPC-O6- SECOND PRODUCTION REQUEST OF COMMISSION STAFF RESPONSE TO REQUEST NO. 78 IDAHO POWER COMPANY CASE NO. IPC-O6- SECOND PRODUCTION REQUEST OF COMMISSION STAFF RESPONSE TO REQUEST NO. 80