20141216IPC to Staff 5.pdf

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An IDACORP Company
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DONOVAN E. WALKER
Lead Counsel
[e-mail]
December 16,2014
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-14-26
Mountain Home Solar, LLC - ldaho Power Company's 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 Response to the Third Production Request of the Commission
Staff.
An externa! hard drive containing the requested files is provided. The files
provided on the external hard drive are confidential and should be handled in
accordance with the Protective Agreement in this matter.
DEW:csb
Enclosures
6novan E. Walker
1221 W. ldaho St. (83702)
PO. Box 70
Boise. lD 83707
DONOVAN E. WALKER (lSB No. 5921) , ij. i":i: ' ',' '' .
ldaho Power Company
1221West Idaho Street (83702) ?illt 0[(] I 6 PFI L: 56
P.O. Box 70
Boise, ldaho 8370T ii';'i iu-r '. ., .
Telephone: [phone] UTILITIIS'lli'i' 'i'jir:ii{'''
Facsimile: [phone]
dwal ker@ idahopower. com
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
oF IDAHO POWER COMPANY FOR ) CASE NO. !PC-E-14-26
APPROVAL OR REJECTTON OF AN )
ENERGY SALES AGREEMENT WITH ) IDAHO POWER COMPANY'S
MOUNTATN HOME SOLAR, LLC FOR THE ) RESPONSE TO THE THIRD
SALE AND PURCHASE OF ELECTRIC ) PRODUCTTON REQUEST OF THE
ENERGY.) coMMrssroN srAFF To rDAHo
) POWER COMPANY
)
COMES NOW, ldaho Power Company ("ldaho Powe/'), and in response to the
Third Production Request of the Commission Staff to ldaho Power Company dated
December 10,2014, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 1
REQUEST NO. 5: Please re-calculate the rates for the project by using in
AURORA the exact generation quantities and hourly and monthly shapes as are
represented in Appendix I of the Agreement. Please compare the resulting rates to
those contained in Replacement Appendix E included as Attachment 1 to ldaho Powefs
lnitial Comments. Please compare the 2O-year levelized rates under both scenarios
and calculate the difference in the total 2O-year contractual obligation. With your
answer, please provide copies of all AUROM and Excel files used for the analysis.
RESPONSE TO REQUEST NO. 5: ldaho Power already uses the exact
generation quantities and hourly and monthly shapes as contained within Appendix I in
the incremental cost lntegrated Resource Plan ("!RP") model in the incremental pricing
tool. One input into the AURORA model that is required to establish the hourly
generation resource stack of existing resources (not including the proposed qualifying
facility ("QF') project) is the estimated hourly generation from all available resources
that exist prior to the addition of the proposed QF project. ln many cases, ldaho Power
does not have specific hourly energy estimates from the various QF projects; instead,
Idaho Power only has monthly energy estimates. Therefore, to create an hourly energy
shape of these QF resources, ldaho Power shapes the monthly energy estimates by
using generic information related to the resource types. ln the case of solar projects,
this hourly shaping has been based upon industry and Ioca! information with regards to
solar radiation and the expected energy deliveries from generic solar projects. Because
some solar projects are now providing hourly energy estimates, a potential
enhancement to the incremental cost !RP model will be to include the project specific
hourly energy estimates (when available) in the cumulative solar hourly energy shapes
IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2
that are used in establishing the hourly generation resource stack. ldaho Power has
included the applicable information for the revised incremental cost IRP model runs with
this response. A comparison of the 2O-year levelized rates under both scenarios ls
listed below.
20-year Level ized Rates
Mountain Home Solar
lst 3rdProduction Production DifferenceRequest Request
$61.56 $61 .43 ($o.r a1
Below is the difference in the total 2O-year contractual obligation.
2O -year Gontractual Obl i gation-l ncl ud i ng I nteg ration
Mountain Home Solar
1st 3rdProduction Production Difference
Request Request
$80,182,081 $79,917,971 ($264,210)
Please see the directory titled '|PC-E-14-26 thru 29 IPUC Staffs Third
Production Request" and the confidential subdirectory titled "CONFIDENTIAL-IPC-E-14-
26-Mountain Home Solar-IPUC 3rd PROD Request-Response 5" on the extemal hard
drive for the Exce! files used for the analysis. ln addition, please see the directory titled
'IPC-E-14-26 thru 29 IPUC Staffs Third Production Request" and the confidential
subdirectory titled "CONFIDENTIAL-IPC-E-14-26 thru 29-AURORA Change Set-IPUC
3rd PROD Request-Response 5" for the AURORA files. Because of the very Iarge size
of the requested files, they are being provided to Staff on the accompanying extemal
hard drive. The files and data contain non-public, confidential, and proprietary dispatch
costs or project generation of Idaho Power resources and should be handled in
accordance with the Protective Agreement. The extemal hard drive and file
IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3
subdirectories are marked "CONFIDENTIAL.' However, to maintain the integrity of the
files, the files themselves are not further marked or identified as confidential.
The response to this Request is sponsored by Randy C. Allphin, Energy
Contracts Coordinator Leader, Idaho Power Company.
DATED at Boise, ldaho, this 16h day of December 2014.
IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4
Attomey for ldaho Power Company
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 16th day of December 2014 ! served a true and
correct copy of IDAHO POWER COMPANY'S 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
Kristlne A. Sasser
Deputy Attomey Genera!
ldaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-OOl 4
Mountain Home Solar, LLC
Dean J. Miller
McDEVITT & MILLER, LLP
420 West Bannock
Boise, ldaho 83702
Mark van Gulik
Mountain Home Solar, LLC
P.O. Box 7354
Boise, ldaho 83707
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IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5