20090511IPC to Staff 1-3, 5-10.pdf

esIDA~POR~
An IDACORP Company
DONOVANE. WALKER
Corporate Counsel
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-09-07
ADVANCED METERING INFRASTRUCTURE ("AMlJ INVESTMENT IN RATE
BASE
Dear Ms. Jewell:
Enclosed for filing please find an original and three (3) copies of Idaho Power
Company's Response to the First Production Request of the Commission Staff to Idaho
Power Company in the above matter.
Very truly yours,~?~Donovan E. Walker
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Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise. ID 83702
DONOVAN E. WALKER (ISB No. 5921)
BARTON L. KLINE (ISB No. 1526)
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
dwalker(áidahopower.com
bkline(áidahopower.com
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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 MAnER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS RATES
DUE TO THE INCLUSION OF ADVANCED
METERING INFRASTRUCTURE ("AMI")
INVESTMENT IN RATE BASE.
)
) CASE NO. IPC-E-09-07
)
) IDAHO POWER COMPANY'S
) RESPONSE TO THE FIRST
) PRODUCTION REQUEST OF THE
) COMMISSION STAFF TO IDAHO
) POWER COMPANY
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 April 23, 2009, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 1
REQUEST NO.1: As technology evolves over time, the potential benefits of the
AMI system may also change. As of today, has the Company seen an incremental
change in benefits of the AMI system that have been captured in the revenue
requirement analyses? Please explain and list them.
a. Please list all of the immediate benefits AMI can provide after
deployment.
RESPONSE TO REQUEST NO.1: The benefits of deploying the AMI system
across our electrical system have not changed since our filing for the Certificate of
Public Convenience and Necessity.
As detailed in the filing, the benefits wil lag the investment. Economies of scale
must be reached and process changes implemented before benefits can be realized.
Having said that, our deployment plan is focused on completely saturating operational
areas as quickly and effectively as possible, capturing the benefits of AMI as soon as
practicaL. However, our immediate focus must be on deploying AMI without impacting
electrical service or ongoing customer services. These constraints cause the
implementation of AMI services to be somewhat piece meal until an operational area
can be completely deployed.
Quantified Benefits
Once all of the meters on a meter reading route have been replaced with AMI
meters and the route has passed all quality inspections, the route is converted to the
automated reading process and will no longer be read manually for monthly cycle
billng. In addition, customer movement readings will be taken via the AMI system for
converted routes. The most immediate benefits of AMI deployment will be the
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2
elimination of costs associated with manual monthly biling cycle meter reading and
manual meter reading in support of customer movement. These benefits wil lag the
initial deployment of AMI by several months and wil not be fully realized until an
operational area is completely deployed and the processes have been converted to
automated processes.
The Company expects to implement outage management softare and services
using the AMI system once an operational area is completely deployed and the
processes for reading and customer movement have been automated. Our schedule is
to implement the outage management system approximately six months after
completing the meter installations in an operational area.
Non-Quantified Benefits
The Company also expects the following non-quantifiable benefits:
· Reduced meter reading errors
· Reduced meter reading estimations
· Reduced customer complaints related to manual meter reading
activity
· The availability of additional energy use data to assist in resolving
customer energy use questions (daily and hourly energy use data is
available from most meters shortly after meter installation)
The response to this Request was prepared by Mark Heintzelman, Delivery
Services Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3
REQUEST NO.2: Please list and explain any changes, issues or problems the
Company encountered so far during the implementation of AMI.
a. Did the Company need to deviate from the original implementation
plan because of those problems or issues? Please explain.
RESPONSE TO REQUEST NO.2: The Company is stil on schedule for the
original 3 year implementation plan. The AMI deployment is on schedule and Idaho
Power has not had any unanticipated problems or issues. The Company has shifted
some meter exchanges planned for 2009 to 2010.
The response to this Request was prepared by Mark Heintzelman, Delivery
Services Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4
REQUEST NO.3: Company witness Courtney Waites states that "due to the
downturn in the economy, stations equipment orders are being filled more quickly."
a. Please quantify the amount (number and dollars) of stations
equipment the Company has received to date.
b. Please provide a comparison of this quantity to the required
number of stations equipment for the full deployment of AMI. What percentage of the
entire project does this equipment represent?
c. Please list AND provide details of the remaining equipment needed
for full deployment of AMI.
RESPONSE TO REQUEST NO.3:
a. The Substation Control Equipment ("SCE") installed through March 31,
2009, is $1.8 millon, which covers 22 substations. Fourteen of these substations are
commissioned and the remaining 8 are in progress. In addition to what has been
installed, the Company has SCE on hand of approximately $605,000, which is
estimated to complete the remaining 8 in progress as well as start the upgrades for 7
other substations.
b. The Company anticipates approximately 150 substation upgrades by the
end of 2011. Assuming the remaining 8 substations in progress are completed, that
would represent a project completion rate of 15 percent of the overall stations
implementation with another 4 percent of substations started.
c. The equipment needed is the same from substation to substation. For the
most part, it consists of nuts, bolts, connectors, fuses, conduit, transformers, cement,
duct wiring, and module interfaces.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5
The response to this Request was prepared by Courtney Waites, Pricing Analyst,
and Mark Heintzelman, Delivery Services Leader, Idaho Power Company, in
consultation with Donovan E. Walker, Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6
REQUEST NO.5: Please provide the actual numbers to date for the AMI meters
installed, actual dollar amount of capital investment and the actual O&M costs. Please
provide supporting documents.
RESPONSE TO REQUEST NO.5: As of March 31, 2009, the Company has
installed 21,179 AMI meters in the Boise area, of which 6,939 were converted to the
automated meter reading processes.
Meter purchases to date include a two month operating supply to insulate the
project from any supply chain issues and accommodate the peaks and valleys that wil
invariably occur in meter exchange rates related to weather and customer density. All
costs related to AMI meters installations, including labor, are capitalized.
The following is a summary of the total investment in meters as of March 31,
2009:
Actual- YTD
B00600021 - Phase 2 AMI- AMI Meters 2008 Total $1,491,608
B00600021 - Phase 2 AMI - AMI Meters 2009 Mar-09 YTD Total $ 3,950,612
Grand Total $ 5,442,220
The response to this Request was prepared by Mark Heintzelman, Delivery
Services Leader, and Courtney Waites, Pricing Analyst, Idaho Power Company, in
consultation with Donovan E. Walker, Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7
REQUEST NO.6: Please provide detailed schedules showing the monthly
O&M costs and all benefits.
RESPONSE TO REQUEST NO.6: Please see the enclosed CD for a detailed
schedule showing the O&M costs and benefits during the deployment period.
The response to this Request was prepared by Courtney Waites, Pricing Analyst,
Idaho Power Company, in consultation with Donovan E. Walker, Corporate Counsel,
Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8
REQUEST NO.7: Please provide schedules showing when the Information
Technology, Meter Data Management System and Two-Way Automated
Communication System Net Server equipment was or wil be installed. Please show the
capital costs, O&M costs and benefits associated with each.
RESPONSE TO REQUEST NO.7: The Meter Data Management System and
Two-Way Automated Communication System Net Server equipment was installed and
tested between May and September, 2008. The following is a summary of Information
Technology expenditures associated with the AMI project through March 31,2009:
Actual- YTD
B00809335 - AM i - IT 2008 Total $229,387
B00809335 - AM I - IT 2009 Mar-09 YTD Total $264,767
Grand Total Grand Total Grand Total $494,154
There are no O&M costs/benefits related to IT expenditures as of March 31, 2009. The
2009 IT expenditures are related to softare license agreements.
The response to this Request was prepared by Courtney Waites, Pricing Analyst,
Idaho Power Company, in consultation with Donovan E. Walker, Corporate Counsel,
Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 9
REQUEST NO.8: Please provide schedules and supporting workpapers to
calculate Exhibit NO.3 at December 31,2009.
RESPONSE TO REQUEST NO.8: Please see the worksheets included on the
enclosed CD for a recalculation of Exhibit NO.3 at December 31,2009. Two versions of
the recalculation have been included on the CD. The first version calculates the
revenue requirement based on firm jurisdictional revenues of $694,048,476,
comparable to the calculation in Exhibit NO.3. However, since Exhibit NO.3 was filed,
the Company's revenues have increased to $700,186,283 (based on Order No. 30754).
The second worksheet calculates the revenue requirement at December 31, 2009,
using the new firm jurisdictional revenues. Also included on the enclosed CD are the
supporting worksheets used for the calculation of Exhibit NO.3 at December 31,2009.
The response to this Request was prepared by Courtney Waites, Pricing Analyst,
Idaho Power Company, in consultation with Donovan E. Walker, Corporate Counsel,
Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 10
REQUEST NO.9: Please provide an update on the availability of stimulus funds
for AMI investments. Please document Idaho Power's request for stimulus funds and
the process being followed by providing copies of requests, letters, internal and external
memorandums, emails, etc.
RESPONSE TO REQUEST NO.9: Idaho Power is actively pursuing
opportunities to leverage funding for the Advanced Metering Infrastructure ("AMI")
project available through the American Recovery and Reinvestment Act of 2009
("ARRA"). An internal group is reviewing, researching, and evaluating potential
opportunities and is developing a white paper vision for the IPC Smart Grid 2020.
Targeted completion of this white paper is June 1. In addition, the Company is utilizing
our relationship with other organizations such as the Edison Electric Institute, which is
heavily involved in the ARRA programs. Many of the projects currently indicate that the
applications are stil in the draft phase. The Company will continue to monitor these
projects and when the window is open, it will apply for funding.
Idaho Power did apply unsuccessfully to the State of Idaho for initial funding of
AMI. A copy of the proposal is included on the enclosed CD.
The response to this Request was prepared by Courtney Waites, Pricing Analyst,
Idaho Power Company, in consultation with Donovan E. Walker, Corporate Counsel,
Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 11
REQUEST NO. 10: Please provide a copy of the most recent implementation
plan showing installation areas and equipment.
RESPONSE TO REQUEST NO. 10:
2008
- Construction in 4 Capital Region Substations
- Material procurement and logistics planning
2009
- Construction in 23 Capital and 4 Canyon Regions Substations
- Exchange of 157,000 meters in Capital Region
2010
- Implement OMS Integration in Capital Region
- Construction in 42 Canyon/Payette Regions, Mountain Home Operating
Area, and 8 Eastern Region Substations
- Exchange of 150,000 meters in Canyon/Payette Regions and Mountain
Home Operating Area
2011
- Implement OMS Integration Canyon/Payette Regions and Mountain Home
Operating Area
- Construction in 14 Eastern and 44 Southern Region Substations
- Exchange of 144,000 meters in Eastern & Southern Regions
2012
- Implement OMS Integration Eastern & Southern Regions
The response to this Request was prepared by Mark Heintzelman, Delivery
Services Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
DATED at Boise, Idaho, this 8th day of May 2009.
?tdtt
ONOVAN E. WALKER
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 12
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 8th day of May 2009 I served a true and correct
copy of the IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY upon the
following named parties by the method indicated below, and addressed to the following:
Commission Staff
Neil Price
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington
P.O. Box 83720
Boise, Idaho 83720-0074
-- Hand Delivered
U.S. Mail
_ Overnight Mail
FAX
-- Email NeiI.Price(ápuc.idaho.gov
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IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -13