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Home My WebLink About20061204IPC to staff 1-7.pdfIDAHO .:!!! POWE R (B) L.I"Q r- r. F \" G , !:.~ Monica B. Moen Attorney II l~~b DEC - \ PH 4~ 4 \ ,,'ro c.I \\:)\iC r1l'r\U((,iIll' . .~, ,.. "~ "J \J1\U\Tc.~ \U i'li ' December 1 , 2006 An IDACORP Company 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- In The Matter Of The Application Of Idaho Power Company For Approval Of An Agreement Between Avimor, LLC Idaho Power To Provide Electric Transmission And Substation Facilities To The Avimor Multi-Use Development Dear Ms. Jewell: Please find enclosed for filing an original and seven (2) copies of Idaho Power Company s Response to the First Production Request of the Commission Staff; I would appreciate it if you would return a stamped copy of this transmittal letter in the enclosed self-addressed , stamped envelope. Very truly yours (b. Monica B. Moen MBM:sh Enclosures Telephone (208) 388-2692 Fax (208) 388-6936 E-mail mmoenlfflidahopower.com MONICA MOEN , ISB # 5734 BARTON KLINE , ISB # 1526 Idaho Power Company 1221 West Idaho Street P. 0, Box 70 Boise , Idaho 83707 Telephone: (208) 388-2692 FAX Telephone: (208) 388-6936 Attorney for Idaho Power Company """'- \/r- . I-i'. \i V'-, , -'- ZO05 DEC - I P~1~: 41 ID/\HCJ F U;,1!..1G UTILITiES COivHAISSIOl', BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF AN AGREEMENT BETWEEN AVIMOR , LLC AND IDAHO POWER TO PROVIDE ELECTRIC TRANSMISSION AND SUBSTATION FACILITIES TO THE AVIMOR MULTI-USE DEVELOPMENT ) CASE NO. IPC-06- IDAHO POWER COMPANY' RESPONSE TO THE 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 November 17, 2006 , herewith submits the following information: IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - REQUEST NO.Does the Company have other transmission and substation facilities agreements, similar to the Avimor Facilities Agreement , that are currently being drafted or out for signature? If the answer is yes , please provide those agreements with a description of the stage of the negotiations. RESPONSE TO REQUEST NO.1: The Company is currently in negotiations with a development company in the Donnelly area that proposes to construct a new residential and commercial development. That development is expected to require approximately 20 MW of power. Construction of a new feeder for the development would fall under the Company s Rule H. Discussions between the parties have also included estimated costs for constructing a new substation on the property that would eliminate the need for the new feeder. The Company would enter into a separate agreement with the development company for construction of the substation.It is anticipated that the substation agreement would be similar to the Avimor Facilities Agreement. The response to this request was prepared by Tom Barber, Engineering Project Leader, Idaho Power Company, in consultation with Monica Moen , Attorney II Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 2 REQUEST NO.2: In the Avimor Agreement the facilities cost is estimated to be $4.3 million, Please divide those costs into transmission line and distribution substation costs. RESPONSE TO REQUEST NO.Transmission line costs are approximately $2 100 000 and substation costs are approximately $2 200 000. The response to this request was prepared by Tom Barber, Engineering Project Leader, Idaho Power Company, in consultation with Monica Moen, Attorney II Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 3 REQUEST NO.3: Under Company design criteria how many residential customers could the 10 MW substation serve? RESPONSE TO REQUEST NO.3: Given the nature of the development , the size of homes anticipated in the development and the fact that natural gas would be available in the development , each home will require between 5 and 15 kW of substation capacity. The 10 MW substation would support between 1 300 and 1 500 homes in the Avimor project. The response to this request was prepared by Tom Barber, Engineering Project Leader, Idaho Power Company, in consultation with Monica Moen , Attorney II Idaho Power Company, IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 4 REQUEST NO.4: Without changes in the voltage or size of the transmission line , to what capacity could the substation be expanded? How many residential customers could be served from the expanded substation? Approximately what would be the substation expansion cost? RESPONSE TO REQUEST NO.4: This substation is designed for 40 MW of total load. It will be originally constructed to accommodate a load of 10 MW. When that load is approached , the substation can be expanded to accommodate a load of 20 MW at a cost of between $150 000 to $200 000 (2006 dollars). After the 20 MW load is reached the facility could be expanded to its final design load of 40 MW. This final expansion would also cost between $150 000 and $200 000 (2006 dollars). Although this substation could be expanded to 80 MW of capacity, the developer s plan forecasts a need for approximately 35 MW total build-out load, The conductor of the transmission line can handle up to 143.5 MW and is the minimum sized conductor that we use at this voltage (138 kV), Once the substation is expanded to a capacity of 40 MW of total load and assuming an average load of 10 kW per household and that development characteristics of the subdivision remain the same, the expanded substation could serve between 5 200 and 6000 residential customers, The response to this request was prepared by Tom Barber , Engineering Project Leader, Idaho Power Company, in consultation with Monica Moen , Attorney II Idaho Power Company, IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 5 REQUEST NO.It is the Staff's understanding that the proposed substation is initially to be served by a single transmission line. Does the Company currently have plans to extend a second transmission line to the substation for reliability or other reasons? If the area around Avimor builds out , would the Company extend a second transmission line to the substation? RESPONSE TO REQUEST NO.5: There will only be one transmission line into the substation at this time. If future development occurs in the nearby area , the Company may need to build a second transmission line from this substation to the north or to the west. Actual conditions at the time of that development would dictate how future growth could be served most cost-effectively. The response to this request was prepared by Tom Barber, Engineering Project Leader, Idaho Power Company, in consultation with Monica Moen , Attorney II Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 6 REQUEST NO.6: The facilities included in the Avimor Agreement include a transmission line and a distribution substation. What rate base cost per customer for these types of facilities is currently included in residential rates? Please show the calculation of the two parts, transmission line and distribution substation, separately. RESPONSE TO REQUEST NO.6: The following table provides the rate base amount for transmission lines and distribution substation facilities allocated to the residential class according to the Company s class cost of service study prepared in the 2005 general rate case (Case No. IPC-05-28) adjusted in conformance with the Commission s Order No. 30035. Idaho Power Company Transmission Lines and Distribution Substation - Residential Rate Base Case No. IPC-05-28 (Adjusted per Order No. 30035) Test Year - 2005 Rate Base Averaqe Customers Rate Base per CustomerResidential Distribution -Substation $ 125 040 370 708 348 345 176 345 176 $ 362. $141. Transmission Lines Total $ 173 748 718 $ 503. The response to this request was prepared by Tim E. Tatum , Senior Analyst Pricing and Regulatory Services , Idaho Power Company, in consultation with Monica Moen , Attorney II , Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 7 REQUEST NO.7: Please provide the calculations in Request No.6 above but base those calculations on date from the Company s IPC-03-13 case. RESPONSE TO REQUEST NO.7: The following table provides the rate base amount for transmission lines and distribution substation facilities allocated to the residential class according to the Company s class cost of service study prepared in the 2003 general rate case (Case No, I PC-03-13) adjusted in conformance with the Commission s Order No. 29505. Idaho Power Company Transmission Lines and Distribution Substation - Residential Rate Base Case No. IPC-03-13 (Adjusted per Order No. 29505) Test Year - 2003 Residential Rate Base Averaqe Customers Rate Base per Customer Transmission Lines Distribution -Substation $ 102 987 004 516 437 334 917 334 917 $ 307. $ 112. Total $ 140 503,441 $ 419. The response to this request was prepared oy Tim E. Tatum , Senior Analyst Pricing and Regulatory Services, Idaho Power Company, in consultation with Monica Moen , Attorney II , Idaho Power Company. Respectfully submitted this 151 day of December 2006, MONICA B, MOEN Attorney for Idaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 8 CERTIFICATE OF MAILING I HEREBY CERTIFY that on the 1 5t day of December 2006, I served a true and correct copy of the within and foregoing document upon the following named parties by the method indicated below, and addressed to the following: Weldon B. Stutzman Deputy Attorney General Idaho Public Utilities Commission 472 W. Washington Street Boise , Idaho 83702 ) U.S. Mail, Postage Prepaid (X) Hand Delivered ) Overnight Mail ) Facsimile (X) Email weldon.stutzman(Q)puc,idaho.qov Duane Black Executive Senior VP & C. SunCor Development Company 80 E. Rio Salado Parkway, Suite 410 Tempe, AZ 85281 (X) U.S. Mail , Postage Prepaid ) Hand Delivered ) Overnight Mail ) Facsimile ) Email (13. MONICA B. MOEN IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 9