20070207IPC to Staff 24, 26.pdf

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IDAHO
POWER
An IDACORP Company
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Monica B. Moen
Attorney II
February 6, 2007
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 an Accounting
Order Authorizing the Inclusion of Power Supply Expenses Associated With
the Purchase of Capacity and Energy From TelocasetWind Power Partners
LLC in the Company s Power Cost Adjustment
Dear Ms. Jewell:
Please find enclosed for filing an original and two (2) copies of Idaho Power
Company s Second Supplemental Response to the First Production Request
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
Monica B. Moen
MBM
Enclosures
O. Box 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
MONICA MOEN ISB # 5734
BARTON L. KLINE ISB # 1526
Idaho Power Company
P. O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
Attorneys for Idaho Power Company
Street Address for Express Mail
1221 West Idaho Street
Boise, Idaho 83702
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR APPROVAL OF A
POWER PURCHASE AGREEMENT
WITH TELOCASET WIND POWER
PARTNERS, LLC AND TO INCLUDE
THE ASSOCIATED EXPENSES IN THE
COMPANY'S ANNUAL POWER COST
ADJUSTMENT.
CASE NO. IPC-06-
IDAHO POWER COMPANY'
SECOND SUPPLEMENTAL
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 dated
January 19, 2007 , herewith submits the following supplemental information:
IDAHO POWER COMPANY'S SECOND SUPPLEMENTAL RESPONSE TO THE FIRST PRODUCTION REQUEST
OF THE COMMISSION STAFF-
REQUEST FOR PRODUCTION NO. 21: Will any of the network upgrade
payments to be made by Telocaset be subject to refund or reimbursement? If so
please describe how the reimbursement will be made.
RESPONSE TO REQUEST NO. 21: CONFIDENTIAL
IDAHO POWER COMPANY'S SECOND SUPPLEMENTAL RESPONSE TO THE FIRST PRODUCTION REQUEST
OF THE COMMISSION STAFF - 2
REQUEST FOR PRODUCTION NO. 24: Will there be any costs that Idaho
Power will incur in order to make use of the forecasts provided for the Telocaset
project? If so, please describe and estimate those costs.
RESPONSE TO REQUEST NO. 24: The expenses to be borne by the seller
Telocaset, include, but are not limited to, all initial setup costs, ongoing maintenance costs
and periodic update costs for the forecasting service. Hardware costs to be borne by
Idaho Power associated with viewing the forecasted information, if any, are not anticipated
to be significant. At this time, no additional staffing is necessary to make use of the
forecasts.
The response to this request was prepared by Dave Churchman , Energy
Transaction Specialist II , Idaho Power Company, in consultation with Monica Moen
Attorney II , Idaho Power Company.
IDAHO POWER COMPANY'S SECOND SUPPLEMENTAL RESPONSE TO THE FIRST PRODUCTION REQUEST
OF THE COMMISSION STAFF - 3
REQUEST FOR PRODUCTION NO. 26: What is Idaho Power s most recent
forecast of expected firm wholesale electric energy prices for the next five and ten-year
periods for heavy and light load hours? Please identify the source and date on which the
forecasts were made.
RESPONSE TO REQUEST NO. 26: Long term retail electric price forecasts are
provided in Idaho Power s most recent Integrated Resource Plan (2006 IRP, Appendix A
Sales and Load Forecast). Idaho Power does not forecast prices over a short term time
horizon; however, the Company does track short term forward market prices. The prices
below are from the January 25, 2007 Operating Plan presented to the Company s Risk
Management Committee:
Month
Mar-
Apr-
May-
Jun-
Jul-
Aug-
Sep-
Oct-
Nov-
Dec-
Jan-
Feb-
Mar-
Apr-
May-
Jun-
Jul-
Aug-
Sep-
Oct-
Nov-
Heavy Load*
$ 56.
$ 54.
$ 42.
$ 47.
$ 66.
$ 83.
$ 78.
$ 62.
$ 66.
$ 70.
71 .
$ 68.
$ 68.
61.43
$ 44.
$ 43.
$ 71.
$ 89.
$ 83.
$ 66.
69.42
Light Load*
$ 49.
$ 34.
$ 29.
$ 28.
$ 44.
$ 56.
$ 52.
$ 54.
$ 57.
$ 60.
$ 58.
$ 58.
$ 58.
$ 39.
$ 36.
$ 33.
$ 47.
$ 60.
$ 56.
$ 57.
$ 60.
Please note that although these values are carried out to two digits for consistency with the Operating Plan
monthly values are typically accurate within a range of several dollars due to current market transparency
and liquidity.
IDAHO POWER COMPANY'S SECOND SUPPLEMENTAL RESPONSE TO THE FIRST PRODUCTION REQUEST
OF THE COMMISSION STAFF - 4
Current observed heavy load (no calendar light load markets were available)
market price estimates received from third party brokers on Thursday, February 1 , 2007
are as follows:
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Bid Offer Bid Offer Bid Offer Bid Offer Bid Offer Bid Offer
I 67.25 68.25 I 65.50 66.50 I 63,50 64.50 I 60.75 61.75 I 58.50 60,00 I 57.00 59.00 I
The response to this request was prepared by Dave Churchman , Energy
Transaction Specialist II , Idaho Power Company, in consultation with Monica Moen
Attorney II , Idaho Power Company.
IDAHO POWER COMPANY'S SECOND SUPPLEMENTAL RESPONSE TO THE FIRST PRODUCTION REQUEST
OF THE COMMISSION STAFF - 5
REQUEST FOR PRODUCTION NO. 27: Please provide estimates of the timing,
frequency and duration of expected curtailment under Section 9.22 of the Telocaset
Agreement for: a) the first 66 MW of generation capacity, and b) the next 34
MW increment of generation capacity.Also provide copies of any written or
electronic communications between Idaho Power and Horizon concerning the timing,
frequency and duration of expected curtailment due to transmission constraints.
RESPONSE TO REQUEST NO. 27: CONFIDENTIAL
DATED at Boise , Idaho , this 6th day of February 2007.
fly.
MONICA B. MOEN
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S SECOND SUPPLEMENTAL RESPONSE TO THE FIRST PRODUCTION REQUEST
OF THE COMMISSION STAFF - 6
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 6th day of February 2007 , I served a true and
correct copy of the within and foregoing upon the following named parties by the
method indicated below, and addressed to the following:
Donovan E. Walker
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington Street
Post Office Box 83720
Boise, Idaho 83720-0074
) U.S. Mail , Postage Prepaid
(X) Hand Delivered
) Overnight Mail
) Facsimile
(X) Email donovan.walker~ puc.idaho.qov
Monica B. Moen
IDAHO POWER COMPANY'S SECOND SUPPLEMENTAL RESPONSE TO THE FIRST PRODUCTION REQUEST
OF THE COMMISSION STAFF - 7