20090511IPC to Staff 30.pdf

BARTON L. KLINE
Lead Counsel
1SIDA~POR(B
An IDACORP Company
May 8,2009
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-09-03
LANGLEY GULCH POWER PLANT
Dear Ms. Jewell:
Enclosed for filing are an original and three (3) copies-of Idaho Power Company's
Supplemental Response to the Commission Staff's Production Request No.,. in theabove matter. 30
In addition, also enclosed are four (4) copies of a disk containing confidential
information in response to Staffs production Request No. 30. Please note this information
should be handled in accordance with the Protective Agreement in place between the
parties.
veM~rs,~~~
Barton L. Kline
BLK:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
BARTON L. KLINE, ISB #1526
LISA D. NORDSTROM, ISB #5733
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: 208-338-6936
bkline(Cidahopower.com
Inordstrom(Cidahopower.com
2009 Mti y _0
· 0 PI1 4: 4 S
Attorneys 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 IDAHO POWER
COMPANY'S APPLICATION FOR A
CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY FOR
THE LANGLEY GULCH POWER PLANT.
)
) CASE NO. IPC-E-09-03
)
) IDAHO POWER COMPANY'S
) SUPPLEMENTAL RESPONSE TO THE
) COMMISSION STAFF'S PRODUCTION
) REQUEST NO. 30
)
COMES NOW, Idaho Power Company ("Idaho Power" or "the Company"), and in
supplemental response to Production Request No. 30 of the Commission Staff to Idaho
Power Company dated March 25, 2009, herewith submits the following information:
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 1
REQUEST NO. 30: Please perform the following computer simulation runs for
Idaho Powets system using the AURORA modeL. Before making any runs, however,
review all assumptions for the transmission interconnections to Idaho Power's 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 2008 IRP Update. It may be desirable to use the
AURORA "Portolio" feature to model Idaho Power for purposes of the following
analyses.
a. Perform an hourly simulation beginning December 1, 2012, and
extending through December 2037 (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.
b. Perform a long-term optimization (capacity addition) study for the
period December 1,2012 through December 2037. Use hourly dispatch to fully capture
peak load hours. Confirm that the new resource choices available match those
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 2
identified in the Company's 2008 IRP Update and that the Langley Gulch 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 Langley
Gulch project is chosen as an alternative to meet load. Summarize the months and the
hours within each month when the Langley Gulch plant would be used to meet load.
Identify any other resources selected by the modeL.
c. Perform an hourly simulation beginning December 1, 2012, and
extending through December 2037 assuming that capacity and energy is available in
accordance with the Langley Gulch 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 run conducted in part "b" above. Compare the difference in net power supply
cost to the cost of the Langley Gulch project.
SUPPLEMENTAL RESPONSE TO REQUEST NO. 30:
b. In completing Request 30.b., the Aurora Long Term ("LT") optimization
study dispatch resolution was set to evaluate every 3rd hour, Monday, Wednesday,
Friday, and Sunday for the 1st and 3rd week of each month. The reduced resolution
from the every hour/every day resolution was necessary for the study to be completed
without exceeding computing capabilities. Assumptions and changes are contained on
the enclosed CD in the change set file "RFP _L T _90_95_ 43" located in project
"WECC_OWI_ 4_Zone_DefauIC200807014_IRP2009_L T.apz" and described below.
(This CD contains proprietary information to be disclosed only to licensed Aurora users.
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 3
As such, the CD is only being provided to the Commission Staff. If other parties are
licensed Aurora users, please contact Bart Kline.) The modeling setup was largely as
provided by EPIS. The resulting Aurora output is located in the file "Request 30 B
L T.mdb" and "Request 30_BLT _run.mdb" and summarized in the file "Request 30
B C 90H 70L 95P .xlsx".- - - -
The LT study performed for Request 30.b. incorporated changes to the New
Resource table as compared to the Aurora table provided by EPIS. The changes
allowed for resource options to be consistent with those analyzed in the 2008 IRP
update. Both fixed and variable costs are considered when calculating the value of
resource options used in determining the WECC portolio. The RPS value of energy
from renewable resources is not considered in the Aurora LT optimization.
There are some differences in the method for identifying future resources using
the Company's IRP approach as compared to the process requested in 30.b. Those
differences are as follows:
1. The Company's IRP process does not modify the New Resource
Table provided by EPIS.
a. The cost and operational characteristics defined by EPIS are
not modified in the Company's Integrated Resource Plan ("IRP") process. Capital costs
are important in establishing the L T resource mix to satisfy future load growth in the
WECC. The capital costs do not influence the portolio modeling that occurs using the
L T results. Only the operational characteristics, constraints, and variable costs are
used in the dispatch logic that sets area energy prices and determines the marginal
hourly costs. The capital costs used in the selection process are important in relation to
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 4
the evaluation of the resources choices available to Aurora. The relative difference in
cost between resources is important and assumed to be correct as supplied by EPIS.
The New Resource Tables' future capital cost accuracy for individual resource types is
not an overriding consideration in the WECC IRP future modeling setup and resource
selection for Idaho Power.
b. The future load growth, hydro conditions, and fuel prices are
not changed for the IRP LT process.
2. Idaho Power's view of future legislative impacts on new resources
is not captured in the Aurora L T algorithm.
a. Significant judgment is used in adjusting the future resources
from the Aurora L T optimization as initially created and as described in the above
section.
i. An evaluation of the individual state RPS compliance
requirements and adjustments in the future resources to satisfy those RPS standards.
ii. Carbon intensive resources added in the L T process
are evaluated for reasonableness and altered accordingly.
iii. Neighboring utility IRP resources plans are evaluated
and adjustments made accordingly to the resource modifier table in Aurora.
The Company's IRP process reflects a narrowing of the focus from the entire
WECC Aurora L T future resources to the Idaho Power area future resource planning.
The assumptions used to define new resource requirements that drive the processes
are therefore significantly different. The Aurora L T future resources are planned under
the default EPIS future assumptions. Idaho Power plans for new resources under other
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 5
then median expected future conditions. This includes higher load growth of 70th
percentile, lower hydro conditions of 90th percentile, and more extreme peaking
conditions of 95th percentile. The resource planning process is done outside of Aurora
and includes reserve margin and detailed transmission operational considerations.
These and other items normally done outside of Aurora have been included in
the Aurora architecture where possible. The goal was to mimic as closely as possible
the way resources needs are determined and planned for at Idaho Power. It is of
course impossible to have Aurora duplicate precisely the normal planning and
evaluation process; therefore, Aurora results may not be entirely consistent with the
usual process
The results of the Aurora L T process added new resources to the Idaho South
area. The time period of the study was 2012-2037 and the new resource added are
shown in the list below:
Resource Begin
Date
1/1/2012
1/1/2012
1/1/2012
1/1/2012
1/1/2012
1/1/2013
1/1/2013
1/1/2013
1/1/2013
11112013
111/2014
1/1/2014
1/1/2014
1/1/2014
1/1/2014
1/1/2015
1/1/2015
1/1/2015
1/1/2015
1/1/2015
Name
New Resource 7654 from 848 Wind
New Resource 7655 from 848 Wind
New Resource 8798 from 916 IRP _RFP _CCCT
New Resource 8824 from 917 IRP Geothermal #1
New Resource 8825 from 917 IRP Geothermal #1
New Resource 7656 from 848 Wind
New Resource 7657 from 848 Wind
New Resource 8799 from 916 IRP _RFP _CCCT
New Resource 8826 from 917 IRP Geothermal #1
New Resource 8827 from 9171RP Geothermal #1
New Resource 4924 from 648 SCCT Adv
New Resource 7658 from 848 Wind
New Resource 7659 from 848 Wind
New Resource 8828 from 917 IRP Geothermal #1
New Resource 8829 from 917 IRP Geothermal #1
New Resource 4925 from 648 SCCT Adv
New Resource 7660 from 848 Wind
New Resource 7661 from 848 Wind
New Resource 8830 from 917 IRP Geothermal #1
New Resource 8831 from 9171RP Geothermal #1
Capacity kW
50000
50000
306800
15000
15000
50000
50000
306800
15000
15000
230000
50000
50000
15000
15000
230000
50000
50000
15000
15000
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 6
Fuel
WND
WND
NG
GST
GST
WND
WND
NG
GST
GST
NG
WND
WND
GST
GST
NG
WND
WND
GST
GST
1/1/2016 New Resource 1428 from 448 CCCT gas/oil Adv 400000 NG
1/1/2016 New Resource 7662 from 848 Wind 50000 WND
1/1/2016 New Resource 7663 from 848 Wind 50000 WND
1/1/2017 New Resource 7664 from 848 Wind 50000 WND
1/1/2017 New Resource 7665 from 848 Wind 50000 WND
1/1/2018 New Resource 7666 from 848 Wind 50000 WND
1/1/2018 New Resource 7667 from 848 Wind 50000 WND
1/1/2019 New Resource 7668 from 848 Wind 50000 WND
1/1/2019 New Resource 7669 from 848 Wind 50000 WND
1/1/2020 New Resource 534 from 248 IGCC 550000 Coal
1/1/2020 New Resource 7670 from 848 Wind 50000 WND
1/1/2020 New Resource 7671 from 848 Wind 50000 WND
1/1/2021 New Resource 7672 from 848 Wind 50000 WND
1/1/2021 New Resource 7673 from 848 Wind 50000 WND
New Resource 53 from 48 Scrubbed Sub-Critical
1/1/2025 PulverizedCoal 600000 Coal
The associated annual Capacity factor for the first RFP _ CCCT project 8798 is shown in
the table below, which would equate to being the Langley Gulch Project.
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
50%
63%
68%
72%
76%
78%
76%
74%
73%
76%
74%
72%
75%
71%
71%
69%
63%
62%
62%
60%
60%
57%
55%
55%
55%
54%
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 7
c. The Total Portolio Costs (which consist of all variable costs from all
resources defined in the Idaho Power portolio plus market purchases and less market
sales) from the Aurora portolio analysis comparing the New Resource 8798 from 916
IRP _RFP _CCCT at near zero cost compared to the LT build out with the project as
provided in section b above is shown in the table below in nominal $OOO's.
2012 83,139 63,186 19,953
2013 812,239 619,019 193,220
2014 810,722 613,344 197,378
2015 801,183 602,522 198,661
2016 750,736 552,313 198,423
2017 745,802 546,679 199,123
2018 746,870 549,297 197,573
2019 760,218 561,258 198,960
2020 623,623 419,517 204,106
2021 633,692 427,470 206,223
2022 698,212 482,910 215,302
2023 763,833 540,702 223,130
2024 819,561 584,775 234,785
2025 755,301 511,384 243,917
2026 812,405 557,639 254,766
2027 877,226 611,910 265,317
2028 960,179 677,519 282,660
2029 1,006,364 712,023 294,341
2030 1,081,760 773,459 308,301
2031 1,180,753 857,872 322,881
2032 1,268,650 931,014 337,636
2033 1,359,299 1,010,146 349,153
2034 1,476,806 1,110,916 365,890
2035 1,568,510 1,187,388 381,122
2036 1,704,254 1,306,831 397,423
2037 1 1
The results are interesting but difficult to draw a meaningful conclusion from as the zero
cost unit dispatched at nearly 100 percent of available capacity for all hours. The result,
approximately 2,486,000 MWh of zero cost energy per year or approximately 62.4
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 8
milion MWh over the study period, reduces the total cost by $6.7 bilion dollars
compared to the portolio results from 30.b.
The response to this Request was prepared by Rick Haener, Planning Analyst,
Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power
Company.
DATED at Boise, Idaho, this 8th day of May 2009.
(Q~)êC
BARTON L. KLINE
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 9
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 8th day of May 2009 I served a true and correct
copy of IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE TO THE
COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 upon the following named
parties by the method indicated below, and addressed to the following:
Commission Staff
Scott Woodbury
Deputy Attorney General
Idaho Public Utilties Commission
472 West Washington
P.O. Box 83720
Boise, Idaho 83720-0074
Industrial Customers of Idaho Power
Peter J. Richardson, Esq.
RICHARDSON & O'LEARY PLLC
515 North 27th Street
P.O. Box 7218
Boise, Idaho 83702
Dr. Don Reading
Ben Johnson Associates
6070 Hil Road
Boise, Idaho 83703
Invenergy Thermal Development
LLC
Dean J. Miler
McDEVITT & MILLER LLP
420 West Bannock Street
P.O. Box 2564
Boise, Idaho 83701
Willam Borders
Assistant General Counsel
Invenergy Thermal Development LLC
One South Wacker Drive, Suite 1900
Chicago, Ilinois 60606
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IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 10
Snake River Allance
Ken Miler
Snake River Allance
P.O. Box 1731
Boise, Idaho 83701
Idaho Irrigation Pumpers
Association, Inc.
Eric L. Olsen
RACINE, OLSON, NYE, BUDGE &
BAILEY, CHARTERED
P.O. Box 1391
201 East Center
Pocatello, Idaho 83204-1391
Anthony Yankel
Yankel & Associates, Inc.
29814 Lake Road
Bay Vilage, Ohio 44140
Idaho Conservation League
Betsy Bridge
Idaho Conservation League
710 North Sixth Street
P.O. Box 844
Boise, Idaho 83701
Northwest and Intermountain Power
Producers Coalition
Susan K. Ackerman
9883 NW Nottage Drive
Portland, Oregon 97229
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~¡u
Barton L. Kline
--
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE
TO THE COMMISSION STAFF'S PRODUCTION REQUEST NO. 30 - 11