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HomeMy WebLinkAbout20110812ICIP 4-32 to IPC.pdfIdaho Public Utilties Commission Office of the SecretaryRECEIVED Peter J. Richaon ISB # 3J95 Or Adams ISB # 7454 RI SON & O'LEAY PLLC 515 N. 27th Stret Boise, Idao 83102 Telephone: (208) 938.2236 Fax: (208) 938.7904 JUL 20 2011 Boise, Idao Attrneys for the Indll Customers of Idao Powe BEFORE TH IDAHO PUBLIC UTIITIE COMMSSION IN TH MATT OF THE ) APPLICATION OF IDAHO POWE)c COMPAN FOR AUTHORITY TO ) INCREASE ITS RATES AN CHAGES ) FOR ELECTRC SERVICE TO ITS ) CUSTOMERS IN TH STATE OF IDAHO ) CASE NO. IPC.E.ll~08 . SECOND REQUESTS FOR PRODUCTION OFTHE INDUSTRL CUSTOMERS OF IDAHO POWER Puuat to Rule 225 of the Rules of Procedur of the lâaoPublic Utilities CommiSsion (the ''Cmmssion''), the Industral Cusomer of Idao Power ("ICIP") herby requests that Idaho PowerCQmpany ('IdaoPowet' or the "Company") provide reonss to the followi with SUrtg docuent, where applicable. The respons to ths pruction reues is due August 10,2011. Ths producton request is to be considered as contiuing, and Idaho Power is reuested to provide by way of supplerhen respèS additiona document tht it or any peson ae, on its be may later obta tht will augment the respoiÍs or documents produced Pleas prvide electrnic copies, or if unavailable a physica copy, to Mr. Richdsn an Mr. Adas at the addrs noted above, and to Dr. Don Reading at: 6010 Hil Roa Bois, Idao 83703, Tel: (208) 342. i 100; Fax: (208) 384- 1511 ;drag~dspri.com. For each item, plea indica the nae of th persn(s) prear the answers, along with the job title of such peon(s) and the witness at heag whoc ce sponsor the anwer. Some of the following reues may include diselo$Usdeemed by Idao Power to. ~ confdential. Counel and the expe witness for th Industal Cusmers of Ida Powe have executed the protective ageement to obta and use such matials acordig thetemis of tht agreement. SECOND REQUESTS FOR PRODUèTION OF TH ICIP IPC.E-ii~8 PAGE 2 REQUEST FOR PRODUCTION NO. 4 Referce Direct Tesmony of'ScSpa pp. 34 - 41. Plea prvide all suprtng documention, workpain eleconic fomiat, data an asons us in the development oftheptopsed facilties charges reues inihs testimony, includng the values in the table shown on pae 40. REoYST FORPRODUCTIQN NO.5 Reference Dir Testmony of ScottSpar, pp. 34-41. Pl: provide all s ort documentation, work pape in electc fomiat, data, and assuption the deelopment of the value used by the Compay in the development of the curent .1.1% monthy faties chage for Schedule 19 in 1981 in Cas No. U-I006-298. RET FOR PRODUCTION NO.6: Referece Dir Tesony of Scott Spa, p. 4 i (stti tht the estited reucon in reenue receved by the Compy thugh the failties chage "wil result in incre in the reenue reuirements for each cutomer class that collect facilties charge revenue"). REQUEST FOR PRODUCTION NO. 7: Referce Dit Testony of Scott Spaks, p. 41 (sting tht the estited reduction in reenu reeived by the Company thoug the facilties chage "will rest in increases in th revenue reuients for eac. customer clas tht collect facilties chatge revenue"). (a) pany believethàt it is entitled to reai reenue neutr with re to any ehaesin th s chage calculd in 19871 Does the Compay coider th level of faciiti chage set for Schedule 19 cusomers in 1987 in Case No. U-l00ó-298to bea "grdfer" rate to which it is entled into pertuty? If not pleas explain. SECÒND REQUESTS :fOR PRODUCTION OF TH ICIP IPC..E-II-08 PAGE 3 (b) Pleas identfy any other rate recvery mehasm auorid by th Commssion whch alows the Company to incre a cusomer cla's revenue requienent solely to kee the Compay renue neut when it is fai, jus and renable to reuc some component of that customer clas's rates. REQUEST FOR PRODUCTION NO.8: Refernce Direct Testiony of Scott Spaks, p. 35 (discussing the customer schedules th have paid the facilities chage). (a) Pleas provide the revenue reved bythc~Company from facilties chages for each rate SchedtÛe d~crbedfor the period 1987 thug 2010. (b) Are there an other ra Schedules, or Speia Contrt Customer, th the Company received facilties chage revenue from durg'the perod 1987 though 201 O? If so pleas identify th Schedule or Specia Contr Cusomer an provide the amout collect for each year, o:rgand by Schedule. REOUEST FOR PRODUCTION NO.9: Is th Company Wili to sell the Company-owned faclities beyondtl point of delivery to its customers ~t the deprec' book value? If yes, pleas ~lai why ths option is not provided for in the Schedule 19. . If no, pleàs explai why. ßEST FOR PRODUCTION NO. lO: Is the Company wiDing to sell the Compay-owred facilties beyond the point of delivery to its cusmers at the fai market value? If yes, plea explai why ths option is not provide for in the Schede 19 taff. If no, pleas explain why. REQUEST FOR PRODUCTION NO.1 1: Refernce the enailcontaiedin ICIP Secod Request for Prduction AtthmentL. Please explain why the Compay detelmined it could aot sen Compay-ownedfacilties beyond the point of delivery toJ.R. Simplot Co y. Please include explaon of both bass asered for the decision not to sell facilties - (1) . § 61-328 and (2) the way Idaho Power wats to ru its business asa regulated public utity. REQUEST FOR PRODUCTON NO. 12: Doe the Compay provide cusomers payig the facilties chage with any option to ever stop paying the facilties chage, an acquirand control their own equipment on their own pr? If so, please identify the langue in the existing or proposetarffhighlighting ths option for cusomers, and expla how ths proces works. Pleae includ explanon of theJengt of tie SECOND REQUESTS FOR PRODUCTION OF THE ICIP ipC-E-l1-08 PAGE 4 it woud tae Idao Power to provide cusomers with a caculaton of the cost for the cuomer to pay Idao Power to remove the facilties and stp paying :t facilties chge. Since 1981, how many cusmer have (1) inqui into ths option, (2) exercise ths opton? REQUEST FOR PRODUCTION NO. 13: Plea prvide the capital expenditus the Compay ha paid for facilties beyond th point ôf deliverfor th year i 987 thoug 2010, organized by rate Schedulë. REST FOR PRODUCTION NQ. 14: Referece Dir Testony of Scott Spaks, p. 39, lies 15-20. Does the ince caed by the Compay cover or indem customer fr acident or injur asiated wi Compa- owned facties inled beyond th Compy's Point of Deliver? If not, doe th Company mae ne custmers awar of the customer's lack of coverge or indemficatÎon for Idaho Power eqpment on thei prper? REQUT FOR PRODUCTIN NO. 15: Referece Dirt TesonycöfScott Sparks, p. 39, lines 18-19 (sting th policy covers equipmen subjec to th failties charge for "proper, casty, and workers compenson"). Pleas explai what "prpert" is covered and in wha fashion. Pleae explain why Idaho Power believes th thepölity covers ~'popy" but does not cover "facilty replaceent cost/" REQQET FOR PRODUCTION NO. 16: Refence Diret Testimony of Scott Spaks, p. 39, lines 15-20. Pleas provide a eopyofthe curtly effeCtve insuce poliè(ies )referenêe,; and identify theprovisiol1 that aply to equpment subjec to the facilties charge. REQUEST FORPRODUCnON NO. 17: RefereceDirTestionyofScottSpaks,p. 39. lies 15-20. Plea provde the inurce preum pad by the Company for eah year for the yes 1987 though 2010 related to facilties chage equipment, orgazed by Schedule. REQUET FOR PRODUCTON NO. 18: Referce Dire Tesony of Scott Sparks, p. 39, lines 15-20. Plea provide the inurce clai for Company-owned equipment asociated with :t facilties chage fied by th Company for each yea for the yea 1981 though 201 O,organzed by rate Schedule. REQU FOR PRODUCTION NO. 19: Referenc Dirct Tesmony of Scott Sparks, p. 35, line 1 (stg, "At the option of the SECOND REQUETS FOR PRODUCTION OF TH ICIP IPC-E-ll-DS PAGES Company, facities chaes may be offered. . . .). Is th faclities char optona for Schedule i 9 c\lmers, or does the Company choose whether any falities beyond the point of dever will be owned by the Compay? REQUEST FOR PRODUCTION NO. 20: Reference the Scedule 19 Tarff (a) Plea admt or deny tht the Schedule 19 Tar st: At the option of the Compay, trformers and other facilties ined beyond the Point of Deliver. to provided Pr or Trasmision Serice ma be owned, opeated, and maitaed by the Company in consideration of the CusOíner paying a Facilties Chage Kr the Company. (b) Pleas adt or deny tht the Schedule 19 taff provides no stteent tht cusomers have the option to own and ope~ al facilties beyond th point of delivery. If ~y, pleae explai (c) Plea provide the legal bass for the Compay to reui th itown faciltis on the propert of Schedule. 19 cusmer. If the customer does not conse to the Compay placing and maitag such equipment on the cu:tmer's prope, does the Compay believe th the tar gives it the legal right to do so? Does the Company obta wrtten const from custmer to place facilties on the cusmers' prope? Wh ty qfco~nt does the Company obtan? REQlJST FOR PRODUCTION NO..21: Refernce Direct Testiony of Scott Spaks p. 38, lines 12-13 (stti tht the "Book Depreiation" compoent of th. facilties chage us "a strght line anua dereciaton of asset based ona levelize 31 year basis"). (a) Pleas adit or deny that the Compay does not reduce the pricipa of th intial investment in facilties by a depreciati factor. If deny, pleas expla how the Company xeduc the prinipa. (b) Plea adt or deny th the priciple on failties subject to the failties cha is the sae in yea i as it would be in yea 50. Ifdeny, plea explai. REQUEST FOR PRODUCTION NO. 22: Reference Dirct Testimony of Scott ~par, p. 38, lis 12-13 (stting tht the "Book Depreciation" component of the facilties chage ussc~'a staight lie anua depiation of assets bas on a levelizd 3 i year bas~'). Pleae ai why cutomer should pay an additiona chae for the depreiàton in value of the ilties. Please explai why. dereciàton SECOND REQUESTS FOR PRODUCTION OF TH ICIP IPC-E~ii -08 PAGE 6 in vaue of the facilties over tie should not decrease the amount cumer pay ovettie for us of tht equpment. REQUEST FOR PRODUCTION NO. 23: Referce Diret Testiony of Sctt Spars, p. 38, lies 12-13 (sttig tht the "Bok Depaton" compoent of the facilties charge uses "a stght lie anal depreiaton of asse based on a leve1iz 31 yea basis"). Plea identify any rate-bas asse for which the COmmssion allows the Company to chage the same anua rate on the same prcipal amount overtie when the value of the asset decrases oYer tie. REQUEST FORPRODUCTIÓN NO. 24: Referce Dir Testiony of Scott Sparks, p~ 38~ lies 12~ 13 (stati tht the "Bok Depciation" component of the faities chage uss "a stght line anua deprciaton of aset ba on a leveli 31 year basis"). (a) 1llea explai what steps Idah Powe taes if a piece of equipment fa prior to th expiraton of the 31-year depecation schedule. (b) Dos the Company have manufctuer's waties on any of the equipment subject to thetailties chage? (c) Ha the Compay ever fied an insue clai to replace equipmeìt subject the faclities chage since 19877 REQUET FOR PRODUCTION NO~ 25: Reference Dirct Tesony of Scôtt Spa, p. 38, lies 12-13 (stting tht the "Book Depreciaoii.t component of the facilities chage uses "a stght lin anual depeciation of asse ba on a levelize.31 year basiS"). (a) Plea explaI if Idaho Powe contiues to chage the failties cha (the monthy perentage rate multiplied by the Compay's inti.inestit) afer the 31 yea depeciaton peod expi. (b) For SChedules 9, 19,24 and Speial Cont Customers. pleae identify the oldest piecs of equipment for which the Compay is st asessing the monthy facilties charge to a cutome in each class. Please include the yea the Compay purhas and instaled the equipmet, the Schedule of the cutomer, and the initial cost of the piece of equipment. (e) . With regar to the piec of eqpment ideed în(bj,is the Company stl caculatng the customers' monthy facilties chae by multiplying the mony facilties chage pecege by the initial investment? SECOND REQUESTS FOR PRODUCTION OF TH ICIP IPG.E-11 -08 PAGE 1 REQUEST FOR PRODUCTION NO. 26: Reference Direc Testimony of Scott Spaks, p. 40. Pleae adt or dey tht th exstg facilties chage mechansm cacuatd ein 1987 for Scheule 19 includes a 0.560 % anua chge to the cusomer for depreciation, andthe proposed chage. includs an anual depreciation chae of 3 .23%. If deny, p1eae explain. Please explai in detl the baSs for the increas in the depreiation chage to Schedule 19 custmer. REQJST FOR PRODUCTION NO. 27: Reference Drrec Testimony of Scott Spar, p. 35, lines 17-22. PleaJdentify the Commssion orde and the case number authorizig the Company to stp offerng th facilties chage to . Schedules 15 ande 41. If no such orcler or case exist, pleas explai the reon the Compay stoppe offerig th facilties charges to those Schedules. Did the CompanNaUow any cusmer from those Schedules to puihae the Company-owned failties when it discontiue the facilties chage for cusomer Scbedules? Why or why not? REUEST FOR PRODUCTION NO. 28: Refernce Direc Testiony of Scott Spaks, p. 41, lies 1-3 (stg tht the primar cost component tht has drven the reucton in the facilties chage ra is the Rate of Retu which ha decreased since the las update). (a) Pleae adt or deny tht the Rae of Retu used in the 1981 calculation for Scheule 19 waN 9.9S2%. If deny, pleas identi the Rate of Re us in 1987. (b) Plea identify the Comssion cas number for lÙlgeneral rate. caes filed by Idao Power since 1987, and the Compay's autorized Rate ofRein each of those cass. (c) Please adt or deny tht the Rae of Ret autrize in 2005 (lC-E-OS-28), 2007 (IPC-E-07-08),:2008 (IPC..E..8-10), wa less than the Ra ofRet used to cacuat the facilties charge since 1987. It deny, please expla (d) Please explai why the Company ha not updad th facilties chge sice 1987 in lighof the decreas in Rate of Ret ocurng at the tie of gener rate cas filings listed in (c). Has.the Company be overchin for th facílties chge by failing to updte the charge prior to now? REQUST FOR PRODUCTION NO. 29: Reference Dir Testiony of Scot Spa,p. 40. Plee provide evdece justifying the Compay's proposa to c~ge a highr percentage for opeation and mantece for Schedule 19 compard to Schedule 41. REQUEST FOR PRQDUCTION NO. 30: SECOND REQUETS FOR PRODUCTION OF TH ICIP IPC-E-11-08 PAGE 8 Reférce Dir TestionyófMattew Laki, pp. 21-25 (discussin the Compay's proposed met oíadjus coincident peak demad for the impact .0£ demand response (OR) progr). Plea provide: (a) Electronic copies of all input output, and adjustment spadheet us to adjus c;oincidet pe demd data. for the impa of DR prgram, (b) Th work papers suortng and the.docuent.titled, "Pea Responsibilty Mets for the 20 i 1 Gener Rate Case" refer~ced ,on page 24:, eand (e) The Globa Eiiergy Parers LLC researh docuent titled, "Ded Respns: It's AResùr, So Treat It Like One." . REQUEST FOR PRODUCTION NO. 31: Reference th Compay's Application, pp. 5-6.. 1 15. (a) Plea exlai any difference to rates betw increing the BE Rider abve 4.15% to cover the aproxiately $11.3 milion in demand respns incentive payments and the Company's prposed tratment to include that sae amount asapower supply expens in base ràte. (b) Ar there differeces in cost-allocation betwen custmer classe under the two approaches? Pleas explai. (c) How does Idao Power propose to alocate the de respse inentive paymenasa powe suply expense in base raes among cutoer classes? (d) Wil the inve payment costs be assigned to the custmer clas reeiving the incentive payment, or will it be assigned to all cuomer classes the same as a syst resoure? If the cost ar assigned as a systm resoure, does the cost of servce sty allocate them 100.4 to deman to account for their use to address pe demand? If not, pleae explai why. REQUEST FOR PRODUCTION NO. 31: Referlíce Dire Testony of Grg Said, p. 24 (sttig the "te Compay intends to accum Custom Effciency incentve payments as a reguatory asse with a cang chage equà to the curtly autored rate of retu until th Company's nat revenue requirment pro"). Pleae providè the revenue requireent impact tht would occur if the Custom Effciency incentie payments were reuested and authoried for recover in ths eae. REQUEST FOR PRODUCTION NO. 32: SECOND REQUESTS FOR PRODUCTION OF iH ieipIPC-E-ll-08 . PAGE9 Referce Order No. 31 093 (approvig an increae in normized bas power supply cost of approximately $25 milion for afliate Bòdger Coal Compay ("BCC") mine coss and noti "because any profits obtaed by Bee ar passe on to Idao Power's cusmers in rate cass, the usua concern abut improper chages to cusmers in afiate trtions is largely removed"). (a) Please identi the Bee profits occuig since the las genral rate ca. (b) Please identi where in the Compay~s filig the profits:fowback to customers in ths cae. (c) Pleae explai the.changes to net power supply expense in ths ca relat to BeC cost. Have operating costs change for BeC coal? Has the Company requed a corresndig change in NPSE in ths ca? (d) Plea provide the Compay's lower market or cost anysis in of the Bee costs rting the reque for the Bee component ofNPSE in thscas, per Order No. 30530, Coe of Conduct at p. 2, , 8(g). Than you for your prompt atntion to ths Second Reque for Prouction. ryAdas RICHASON & O'LEAY, PLLC SECOND REQUESTS FOR PRODUCTION OF THE ieip IPC-E-II-08 PAGE 10 IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-1'1-08 ATTACHMENT i TO SECOND PRODUCTION REQUESTS OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER JUY 20,2011 ,2Adams From: Sent: To: Cc: Subjec:t: Wiliams, Jason IJWiliam~idahoper.comi Wednesday, Apnl 06, 2011 3:51 PM Gre Adams Don Reading RE: Simplotfalit discussn Greg, After internal discussion, we have d that we would rather discuss the entire issue with your from our perspectiv, tbis is not about price. As i shared ho PoWer has dèCided it is not g the facilities to decision are: 1) our statutory 0 to hold other customersutility owned assets; and 2)the way we as a reulated publi we cango over the buy-out price method plot's request, that methodology and Iti had I ng on wer's decision to not sell those facilities. At point, debating the methodology we used as part of this analysis would not be productive as it wil not impact the decision we have already made. Thanks, Jason Jaso Willltms ldàho .(208) Frm: Greg Adam Set: Wednesy, Ap To: WlIiams, JaSOn ee: Don Reaing Subj RE: Simplot facilit diSCssion Jason, Thanks for letting us know about the problem ldaho Power éncuntered in calculati amount that Idaho Power . would need to charge Simplot for existins facilties beyond the point of the meter to ( cover the book value of the facilties, or (2) keep the other Schedule 19 cusomers whole. After discussing the issue wlth our consultant, Don Reading, we were wondering if you oould please send us the work papers associated with your investigation in advance of our mæting Monday? That woald enable .us to have a more substantive discussion. Thanks again. Adas & O'Lear PLLC sis th Stret, 83702 P.O..Box 7218, 83707 Boise, Idao Voice: 208.938.2236 1 ICIP's Second Production Requests Attachment 1 Page 1 Fàesitile: 208.938.7904 Greg, As a follow-up to our discussion of last week. Idaho Power has made a determination relating to the sale of Schedule 19 facilities for Simplot. We would like to invite you and representatives of Simplot to meet wit our folks to discuss. We could be available at Idaho Powets dowtown offce on either Monday, Apñl11 at 11 am or Friday, April 15at11 am. Please let me know jf either ofthese times work for you and Simplot. If so, I can give you a call and we can diSCU$ an agenda to make sure we cover everyhìh~ that Simplot has asked. Thanks, Jason osur un apièablè law. If you íi Jìortb inde t~. )'\1 ar héreby an reliae t1ern) is STRlCTL Y fR.OHlBlT. If eeive t1isIn its enre, wheder in elecíc or ha oo fbrm. Thk YOe 2 , ICIP's Second Production Requests Attachment 1 Page 2 CERTIFICATE OF SERVICE I HEBY CERTIFY that on the 20th day of July, 20il,a tneand corrt copy of the with and foregoing SECOND REQUESTS FOR PRODUCTION OF TH INUSTRI CUSTOMERS OF IDAHO POWER IN CASE NO.IPC~E-ll -08 was served in the maner shwn to: Ms. Jean JewellCosion Sec Idao Pllblic Utities Commsson POÐox8312Ò Boise, ID 83720-74 _ Han Delivery ~ U.S. Máil, pOstae pre-pad F aøsitile X Eleconic Mal Lis D Nordstrm Jasori B Willams Idaho Power Company PO Box7Q Boise, Idao 83701-0070 _ Had Delivery U.S. Mail, poste pre-paid Facsimle X Electrnic Mail Donovan Walr Greg Said Idaho Powe Company. POBox 70 Boise, Idao 83707-0010 _ Hand Deliver _U.S. Mail, poste pre-paid Facsimile X Electronic Mail Eric L. Olsen Raine, Olson, Nye, Budge &; Baey, Charerd P.O. Box 1391; 201 E. Ceter Poe , Idaho 83204-1391 Han Delivery u.s. MfAl, postae prepaid Facsimle X Electronic Mail nyYanel Lae Ro Bay Vilage, Ohio 44 1 40 tony(!yankel.net Hand belivery U.S. Ma, poste pre-pad.-.,...c.-'.-'" _ __"".',"'., "-.,,,,-,-.. . _', ..__...".'e Facsimile Ã- Electronic . Mail Donad L Howell, n Kal Klein Idaho Pulic Utilities Commission 472 W Washingtn Boise ID 83702 _ Hand Delivery _ u.s. Mail, poste pre-paid Facsimle X. ElectrniQ Mal Arur Per Bruer US Deparent of Energy 1000 Indepndence Ave SW Wasbington DC 20585 Arur,bmdertqJig.doe.gov Dwight Etheridge Exeter Associe.tes, Inc. 5565 Sterétt Place Ste 310 Columbia MD 2104 detherie'$exeterassoci¡tes.com _ Had Delivery _ U.S. Mal, poste pre-paid Facsimle. X Electrnic Mai _ Hand Delivery __ U.S. Mail, postage pre-paid Facsimile X Electrnic Mail Steven A Portr ElectrCity & Fossil Energy US Deparent of Energy §teven,lZrter'$bg.doe.gov (email only) -- Han Delivery U.S, MaiL, poste pre-paid -- Facsimile. X Electronic Mai John RHamond Jr Batt Fisher Push & Alclnnan LtP POBox B08 Boise ID 83701 _ Had Delivéry __ U.S. Mail, postae pte-paid Facsimile X Elecnic Mai KurJBoebm Boehm Kur & Lowéry 36 E Seventh St Ste 1510 _ Hand Delivery __ U.S. Mail, postage pre..pad Facsimile X Electronic Mai~ .... BradMPuy CAPA 2019N 11th St Boise ID 83702 _ Hand Delivery __ U.S. Mal, postge pre-pd Facsimile X Elecnic Mail Richad E Malmgrn Micro Tecll c 800 South Fed Way _ Hand Delivery __ U.s. Mail, poe pre-paid Facsimile X Electronic Mai Mar V York Thorvald A Nelson Matk A Da"\dson Hollad & Har 6380 Fiddlers Gr~en Circle Ste 500GreenwO 80111 _ Hand Delivery __ u.s. Mail,postge pre-pad Facsimile X. Electrnic Mail Benjamin Otto Idaho Consation League POBox 844 . Boise ID 83701 , -- Hand D;elivery __ U.S. Mal, postage pre-paid Facsimle . X Electrnic Mal Ken MiUer Snae River Aliance PO Box 1131 Boise ID 83701 _ Hand Delivery __ U.S. Mail, postae pre-pad Facsimile X ElecOlC Mail il;