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Home My WebLink About20130906IPC to Staff 25, 32, 34 and 36-39.pdfHO PIER An IDACORP Company 2O1 SEP —P1 12:O JENNIFER M.REINHARDT-TESSMER Corporate Counsel fT_I \jreinhardtcidahopower.com September 6,2013 VIA HAND DELIVERY Jean D.Jewell,Secretary Idaho Public Utilities Commission 472 West Washington Street Boise,Idaho 83702 Re:Case No.IPC-E-13-16 Certificate for Public Convenience and Necessity for Jim Bridger Units 3 and 4 —Idaho Power Company’s Second 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 Idaho Power Company’s Second Response to the Third Production Request of the Commission Staff (“Staff”)to Idaho Power Company.In addition,enclosed in a separate envelope are an original and three (3)copies of Idaho Power Company’s Confidential Responses to Request Nos.34 and 36-38 of the Third Production Request of the Commission Staff to Idaho Power Company. Also,enclosed are four (4)copies of a confidential disk containing information responsive to Staff’s Third Production Request.Please handle the confidential information in accordance with the Protective Agreement executed in this matter. Sincerely, J nnifer M.Reinhardt-Tessmer J RT:csb Enclosures 1221 W.Idaho St.(83702) P.O.Box 70 Boise,ID 83707 LISA D.NORDSTROM (ISB No.5733) JENNIFER M.REINHARDT-TESSMER (ISB No.7432) Idaho Power Company 1221 West Idaho Street (83702) P.O.Box 70 Boise,Idaho 83707 Telephone:(208)388-5825 Facsimile:(208)388-6936 lnordstromtidahopower.com jreinhardtidahopower.com 2r13SE —‘3 P !2:hO fH iHc’ Attorneys for Idaho Power Company 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 INVESTMENT IN SELECTIVE CATALYTIC REDUCTION CONTROLS ON JIM BRIDGER UNITS 3 AND 4. CASE NO.IPC-E-13-16 IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY COMES NOW,Idaho Power Company (“Idaho Power”),and in response to Request Nos.25,32,34,and 36-39 of the Third Production Request of the Commission Staff to Idaho Power Company dated August 21,2013,herewith submits the following information: IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -1 ) ) ) ) ) ) ) ) ) REQUEST NO.25:Please provide a list of any new facility investments subject to this filing that will be shared between any of the Jim Bridger generation units.If a facility is shared,please provide the total cost of the facility (broken down by capital, operation,or maintenance)and a percentage of cost allocated to each unit. RESPONSE TO REQUEST NO.25:The anhydrous ammonia receiving depot will be a common facility shared between Jim Bridger Units 3 and 4 only.Currently, there is not a “breakout cost”from the Engineering,Procurement,and Construction contract for the depot only.It is assumed that all associated initial capital,run-rate capital,operational,and maintenance costs for this common facility will be shared between Units 3 and 4 at a rate of 50 percent per each. The response to this Request is sponsored by Tom Harvey,Joint Projects Manager,Idaho Power Company. IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -2 REQUEST NO.32:Referring to Idaho Power’s response to Staff Production Request No.1,please provide a cost breakdown of all individual items listed in the Development Phase cost category (Permitting,Wyoming and Utah docket proceeding cost,completion of design basis and project concept studies,baseline performance testing,etc.).Please show the cost for each generation unit (Jim Bridger Unit 3 and Unit 4)and by actual vs.remaining forecast.For forecasted items,please provide the basis/method for developing the 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.32:A breakdown of items listed in the Development Phase Cost category is included in the Excel spreadsheet provided on the confidential CD.The confidential CD will be provided to those parties that have executed the Protective Agreement in this matter. The expected costs identified in the confidential spreadsheet as “Forecast Costs 2013 —Jun-Dec”are assumed to be final,with the exception of possible unforeseen adjustments or unidentified costs that may be incurred,since the development phase is complete. The response to this Request is sponsored by Tom Harvey,Joint Projects Manager,Idaho Power Company. IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -3 REQUEST NO.34:Referring to Idaho Power’s response to Staff Production Request No.1,please provide the basis/method for developing the Economizer Upgrade 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.34:The response to this Request is confidential and will be provided separately to those parties that have executed the Protective Agreement in this mailer. The response to this Request is sponsored by Tom Harvey,Joint Projects Manager,Idaho Power Company. IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -4 REQUEST NO.36:Referring to Idaho Power’s response to Staff Production Request No.1,please provide the basis/method for developing the Flue Gas Reinforcement 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.36:The response to this Request is confidential and will be provided separately to those parties that have executed the Protective Agreement in this mailer. The response to this Request is sponsored by Tom Harvey,Joint Projects Manager,Idaho Power Company. IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -5 REQUEST NO.37:Referring to Idaho Power’s response to Staff Production Request No.1,please provide the basis/method for developing the Spare Parts Allowance 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.37: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,Idaho Power Company. IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -6 REQUEST NO.38:Referring to Idaho Power’s response to Staff Production Request No.1,please provide a cost breakdown of all individual items listed in the Other Cost category (PacifiCorp’s engineer performance requested work through the project implementation phase,initial fills of lubricants and ammonia reagent,etc.)by the cost for each generation unit (Jim Bridget Unit 3 and Unit 4).Please provide the basis/method for developing the category 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.38: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,Idaho Power Company. IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -7 REQUEST NO.39:Please explain how cost estimates for mercury controls (MATs),Clean Water Act compliance,and Coal Combustion Residual compliance used in the Coal Unit Investment Analysis were derived and explain what means (benchmarks,price quotes,etc.)were used to ensure accuracy. RESPONSE TO REQUEST NO.39:Please see below. Mercury Controls.The capital estimates were based in part upon analysis performed by Sargent &Lundy that assumed the Jim Bridger power plant was going to use activated carbon and calcium bromide (“CaSt”)and potentially a scrubber re emission chemical.After testing was completed in 2011,the estimates were refined to include the assumption that the plant would only use CaSt and the scrubber re-emission chemical.These refined numbers were derived in large part from budgetary quotes from chemical suppliers as well as PacifiCorp’s corporate engineering’s estimate for project management.The operations and maintenance numbers are based upon the testing that was completed at the plant,mercury levels in the coal,and budgeted plant capacity factors. CCR Proiects.Pond project estimates are based upon studies completed by Tetra Tech.Landfill projects are based upon scale-ups of actual landfill project costs at the Huntington plant. Clean Water Act 316(b)Proiects.This project estimate was developed by PacifiCorp corporate environmental staff with guidance from Mid-America Electric Holdings Company in estimating the costs associated with studies/intake structure modifications necessary to comply with the final 316(b)rule. The response to this Request is sponsored by Tom Harvey,Joint Projects Manager,Idaho Power Company. IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -8 DATED at Boise,Idaho,this 6th day of September 2013. JEN N I F Afforne Idaho Power Company IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -9 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 6th day of September 2013 I served a true and correct copy of IDAHO POWER COMPANY’S SECOND 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 ____Hand Delivered Kristine A.Sasser ____U.S. Mail Deputy Attorney General ____Overnight Mail Idaho Public Utilities Commission ____FAX 472 West Washington (83702)X Email kris.sasser(puc.idaho.ciov P.O.Box 83720 Boise,Idaho 83720-0074 Industrial Customers of Idaho Power ____Hand Delivered PeterJ.Richardson ____U.S. Mail Gregory M.Adams ____Overnight Mail RICHARDSON ADAMS,PLLC ___FAX 515 North 27th Street (83702)X Email peterrichardsonadams.com P.O.Box 7218 qreq(richardsonadams.com Boise,Idaho 83707 Dr.Don Reading ____Hand Delivered 6070 Hill Road ____U.S. Mail Boise,Idaho 83703 ____Overnight Mail ____FAX X Email dreadingmindspring.com Idaho Conservation League ____Hand Delivered Benjamin J.Otto ____U.S. Mail Idaho Conservation League ____Overnight Mail 710 North Sixth Street ____FAX Boise,Idaho 83702 X Email botto(idahoconservation.orq Snake River Alliance ____Hand Delivered Dean J.Miller ____U.S. Mail McDEVIU &MILLER LLP ____Overnight Mail 420 West Bannock Street ____FAX P.O.Box 2564 X Email joemcdevitt-miller.com Boise,Idaho 83701 IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -10 Ken Miller,Clean Energy Program Director ____Hand Delivered Snake River Alliance ____U.S. Mail P.O.Box 1731 ____Overnight Mail Boise,Idaho 83701 FAX X Email kmillersnakeriveralliance.orq Wj i Christa Bearry,Ll ista,) IDAHO POWER COMPANY’S SECOND RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -11