20130905IPC to Staff 26-31,33,35.pdf

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An IDACORP Company
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LlsA D' NoRDSTRoM ?fll?' Si-P -lr
Lead Counse! : ,,,i: i:
September 4,2013
Pi{ h:58
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-13-16
Certificate for Public Convenience and NecessityforJim Bridger Units 3 and
4 - ldaho Power Company's First Response to the Third Production
Request of the Commission Staff
Dear Ms. Jewell:
Enclosed for filing in the above matter are an original and three (3) copies of ldaho
Power Company's First Response to the Third Production Request of the Commission
Staff ("Staff') to ldaho Power Company. ln addition, enclosed in a separate envelope are
an original and three (3) copies of ldaho Power Company's Confidential Responses to
Request Nos. 28, 33, and 35 of the Third Production Request of the Commission Staff to
ldaho Power Company.
Also, enclosed are four (4) copies of a confidential disk containing information
responsive to Staffs Third Production Request. Please handle the confidential information
in accordance with the Protective Agreement executed in this matter.
The responses to Request Nos. 25, 32,34, and 36-38 will be provided once ldaho
Power Company has received the worksheets, estimates, studies, etc., that were used to
determine the cost estimates for the different cost items forthe selective catalytic reduction
controls from Pacifi Corp.
Sincerely,
K*- Q '4^**"--
Lisa D. tlorostrok
LDN:csb
Enclosures
1221 W. ldaho St. (83702)
P.O. Box 70
Boise. lD 83707
LISA D. NORDSTROM (lSB No. 5733)
JENNIFER M. REINHARDT-TESSMER (!SB No. 7432)
ldaho Power Company
1221West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
I no rd strom@ ida hopower. com
irei n hardt@ ida hopower. com
Attorneys for Idaho Power Company
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR A
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY FOR THE INVESTMENT
IN SELECTIVE CATALYTIC REDUCTION
CONTROLS ON JIM BRIDGER UNITS 3
AND 4.
Fl1 1,. rot t: ,;. ut(J
CASE NO. |PC-E-13-16
IDAHO POWER COMPANY'S
FIRST RESPONSE TO THE
TH!RD PRODUCTION REQUEST
OF THE COMMISSION STAFF
TO ]DAHO POWER COMPANY
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
COMES NOW, ldaho Power Company ("ldaho Powe/' or "Company"), and in
response to Request Nos. 26-31, 33, and 35 of the Third Production Request of the
Commission Staff to ldaho Power Company dated August 21, 2013, herewith submits
the following information:
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY. 1
REQUEST NO. 26: Please provide a copy of all the worksheets (with all
formulas intact) used to develop the SAIC "static" analysis including: all the output,
operational forecasts, input data, and assumptions.
RESPONSE TO REQUEST NO. 26: Please see the confidential Excel files
provided on the confidential CD that were used in the preparation of the SAIC model
(SA/C IPC Coal Upgrade lnvestment Eva Model.xlsx (Attachment 1)). The confidential
input files are as follows:
Master IPC Share Valmy Jim Bridger.xlsx (Attachment 2)
JB Master IPC Share JB1 JB2 NG Conversion.xlsx (Attachment 3)
Valmy 1 2 NG Conversion Run Rate Cap Ex Update.x/sx (Attachment 4)
Undepreciated Plant Calc for Valmy 1.xlsx (Attachment 5)
Plant Net Book Forecast.xlsx (Attachment 6)
SA/C Generation J81234 Vl2 NG HML 2013-2032.x1sx (Attachment 7)
The confidential CD will be provided to those parties that have executed the
Protective Agreement in this matter.
The response to this Request is sponsored by Tom Harvey, Joint Projects
Manager, ldaho Power Company.
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY.2
REQUEST NO. 27: Please explaan why ldaho Power applied a Sumas basis,
rather than a Rockies or AECO basis to develop its natural gas forecast for the Coal
Unit Environmenta! Investment Analysis. Please provide the Sumas differentials and
the Henry's Hub forecast that were used to develop the natural gas forecast.
RESPONSE TO REQUEST NO. 27: The Coal Unit Environmental lnvestment
Analysis used the 2012 U.S. Energy lnformation Administration Annua! Energy Outlook
for a forecasted Henry Hub price. ldaho Power uses a Sumas price rather than a
Rockies or an AECO price because the majority of the natural gas transport the
Company holds on the gas pipeline is from Sumas. Currently, ldaho Power does not
have firm rights to any natural gas transport capacity from Rockies or AECO. The
Sumas forecasted price of natural gas is derived by adding the Henry Hub price and the
Sumas basis. The forecasted Sumas price can be found on page 96 of Appendix C of
the 2013 lntegrated Resource Plan. Please refer to the below table for the Henry Hub
price forecast and the Sumas basis.
Henry Hub Natural Gas Price Forecast and Sumas Basis
Year
Henry Hub Price Forecast
Planning Case - Nominal $s
t1l
Sumae Basis
Nomlnal $s
121
Sumas Price Forecast - Derived
Nominal $sr3l=tll+t2l
20'13
2014
2015
20't6
2017
2014
2019
2020
2021
2022
2023
2024
2025
2026
2027
2024
2029
2030
2031
2032
w.44
$4.69
w.97
$5.09
$5.28
$5.50
$5.82
$6.16
$6.67
$7.29
$7.81
$8.26
$4.77
$9.26
$9.82
$10.27
$1 0.78
$1 1 .36
$1 1 .94
$12.61
$0. 02
$0. 07
$0. 09
$0.10
$0.12
$0.14
$0.'16
$0.18
$0.20
$o.22
$0.24
$0.26
$0.28
$0.30
$0.32
$0.34
$o.36
$0.38
$0.40
$o.42
$4.46
$4.76
$5.06
$5.19
$5.40
$s.64
$5.98
$6.34
$6.87
$7.51
$8.05
$8.52
$9.05
$9.56
$10..14
$10.61
$1 1. 14
$11 .74
$12.34
$13.03
The response to this Request is sponsored by Tom Harvey, Joint Projects
Manager, ldaho Power Company.
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3
REQUEST NO. 28: Please provide the cost assumptions and basis used to
estimate decommissioning costs for Jim Bridger Unit 3 and Unit 4 in the gas conversion
and retire/replace scenarios of the Coal Unit Environmental lnvestment Analysis.
Please provide a cost breakdown by generating unit and timing of costs.
RESPONSE TO REQUEST NO. 28: The response to this Request is
confidential and will be provided separately to those parties that have executed the
Protective Agreement in this matter.
The response to this Request is sponsored by Tom Harvey, Joint Projects
Manager, ldaho Power Company.
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4
REQUEST NO. 29: Was the sale of the Bridger Coal Company mining operation
considered in the gas conversion and retire/replace scenarios of the Coal Unit
Environmental lnvestment Analysis? Hypothetically, what would the Company estimate
as its market value at the end of years 2015 and 2016 as share of the coal no longer
used for Units 3 and 4?
RESPONSE TO REQUEST NO. 29: The sale of Bridger Coal Company was not
considered in the gas conversion and retire/replace scenarios of the Coal Unit
Environmental lnvestment Analysis. ldaho Power does not have an estimate of the
hypothetica! market value of Bridger Coal Company at the end of years 2015 and 2016
if coal was no longer used for Jim Bridger Units 3 and 4.
The response to this Request is sponsored by Tom Harvey, Joint Projects
Manager, ldaho Power Company.
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REOUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5
REQUEST NO. 30: Did the Company adjust its natural gas price forecast based
on different CO2 prices by assuming that natural gas prices and CO2 prices are
positively correlated in its Coal Unit Environmental lnvestment Analysis?
RESPONSE TO REQUEST NO. 30: The natural gas price forecast was not
adjusted based on different COz prices for the Coal Unit Environmental lnvestment
Analysis. Due to the uncertainty surrounding potential CO2 prices, ldaho Power did not
investigate the correlation between natural gas prices and COz prices. Please see page
5 of the Coal Unit Environmental lnvestment Analysis for a description of the natural gas
price forecast assumptions and page 6 for a description of the carbon adder
assumptions.
The response to this Request is sponsored by Tom Harvey, Joint Projects
Manager, ldaho Power Company.
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6
REQUEST NO. 31: Please describe the method and factors used to develop the
projected generation forecast contained in Table 4-26 in the SAIC study. Please
provide all worksheets used to derive them with all formulas intact.
RESPONSE TO REQUEST NO. 31: The 2O-year annual unit generation
forecast used in the SAIC study is an output from the AURORA model. The AURORA
model used the 2013 Integrated Resource Plan setup with the 2013 assumptions
available at the time the forecast was run. The 2013 assumptions included the natural
gas price forecasts, the carbon adder assumptions, load forecast, and hydro forecast.
Please see Attachment 7 provided with the Company's response to Staff's Production
Request No. 26.
The response to this Request is sponsored by Richard Haener, Fuels
Management Coordinator, ldaho Power Company.
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7
REQUEST NO. 33: Referring to ldaho Power's response to Staff Production
Request No. 1, please provide the basis/method for developing the Boiler and Air
Preheater Reinforcement Work estimate (i.e., actual quotes, contracts, historical
comparable cost, etc.) and all documents and worksheets (with formulas intact) used to
develop the estimate.
RESPONSE TO REQUEST NO. 33: The response to this Request is
confidential and will be provided separately to those parties that have executed the
Protective Agreement in this matter.
The response to this Request is sponsored by Tom Harvey, Joint Projects
Manager, ldaho Power Company.
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REOUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8
REQUEST NO. 35: Refening to ldaho Powe/s response to Staff Production
Request No. 1, please provide the basis/method for developing the Low Temp
Economizer Control System estimate (i.e., actual quotes, contracts, historical
comparable cost, etc.) and all documents and worksheets (with formulas intact) used to
develop the estimate.
RESPONSE TO REQUEST NO. 35: The response to this Request is
confidential and will be provided separately to those parties that have executed the
Protective Agreement in this matter.
The response to this Request is sponsored by Tom Harvey, Joint Projects
Manager, ldaho Power Company.
DATED at Boise, ldaho, this 4th day of September 2013.
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY.9
Attorney for ldaho Power Company
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 4th day of September 20131 served a true and
correct copy of IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
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
Kristine A. Sasser
Deputy Attorney General
ldaho Public Utilities Commission
47 2 W est Wash i ngton (83702 )
P.O. Box 83720
Boise, ldaho 83720-007 4
lndustrial Customers of ldaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON ADAMS, PLLC
515 North 27th Street (83702)
P.O. Box 7218
Boise, ldaho 83707
Dr. Don Reading
6070 Hill Road
Boise, Idaho 83703
ldaho Conservation League
Benjamin J. Otto
ldaho Conservation League
710 North Sixth Street
Boise, ldaho 83702
Snake River Alliance
Dean J. Miller
Chas. F. McDevitt
Celeste K. Miller
McDEVITT & MILLER LLP
420 West Bannock Street
P.O. Box 2564
Boise, ldaho 83701
Hand Delivered
U.S. Mail
Overnight Mail
FAX
Email [e-mail]
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FAXX Email [e-mail]
o req @ richa rd so nadams. co m
_Hand Delivered
U.S. Mai!
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Email [e-mail]
chas@ mcd evitt-m i I ler. co m
ck@ mcdevitt-m i I ler. co m
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY. 1O
Ken Miller, Clean Energy Program Director
Snake River Alliance
P.O. Box 1731
Boise, ldaho 83701
Hand Delivered
U.S. Mail
,Ovemight Mail
FAXX Email [e-mail]
IDAHO POWER COMPANY'S FIRST RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 11
Christa Bearry, Lega! Assistant