20141211IPC to Staff 5.pdf

TrllmloNPO1TER
AN IDACORP COMDANV
DONOVAN E. WALKER
Lead Counsel
[e-mail]
December 11,2014
DEW:csb
Enclosures
?tFrDEC trl P'i{
,i,
I '1.ll.: -:- r. ,--, " 1:
i 11 il-i I 1i-.-t '-' - '"'
$Z?
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-14-34
American Falls Solar, LLC - ldaho Power Company's Response to the
Third Production Request of the Commission Staff
Dear Ms. Jewell:
Enclosed for filing in the above matter are an original and three (3) copies of
ldaho Power Company's Response to the Third Production Request of the Commission
Staff.
An extemal hard drive containing the requested files is provided. The files
provided on the extemal hard drive are confidential and should be handled in
accordance with the Protective Agreement in this matter.
u/U
1221 W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
DONOVAN E. WALKER (lSB No. 5921 ) r;:i: C i: i1.,,,: r
ldaho Power Company
1221West ldaho Street (83702\ ?illir DEC I I pH 3: 22P.O. Box 70
Boise, ldaho ggTOT i*tiiiru*l _,...-,,,;.,.- ^Telephone: (208) 3gg-s312 l.tTti-l-iiii c*.ri-il:j$:'i'r.
Facsimile: [phone]
[e-mail]
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
rN THE MATTER OF THE APPLTCATTON )
oF IDAHO POWER COMPANY FOR ) CASE NO. !PC-E-14-34
APPROVAL OR REJECTTON OF AN )
ENERGY SALES AGREEMENT WITH ) IDAHO POWER COMPANY'S
AMERICAN FALLS SOLAR, LLC FOR THE ) RESPONSE TO THE THIRD
SALE AND PURCHASE OF ELECTRIC ) PRODUCTION REQUEST OF THE
ENERGY.) coMMrssroN STAFF To IDAHO
) 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. PIease compare the resulting rates to
those contained in Replacement Appendix E included as Attachment 1 to ldaho Powe/s
lnitial Comments. Please compare the 20-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 AURORA 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 Integrated Resource Plan ("lRP") model in the incremental pricing
tool. One input into the AUROM 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, Idaho Power
does not have specific hourly energy estimates from the various QF projects; instead,
ldaho 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. In the case of solar projects,
this hourly shaping has been based upon industry and local 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 IRP 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. Idaho 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 is
Iisted below.
20-year Level ized Rates
lst Production 3rd Production
American Falls Solar Request
$63.77
Request
$63.61
Difference
($o.to1
Below is the difference in the total 2O-year contractual obligation.
20-year Contractual O bl i gation-l ncl ud i ng I nteg ration
f st Production 3rd ProductionRequest Request urrerence
$63,283,155 $62,998,577 ($284,578)
Please see the directory titled "lPC-E-14-33,34 IPUC Staffs Third Production
Request" and the confidential subdirectory titled 'CONFIDENTIAL-lPC-E-14-34-
American Falls Solar-IPUC 3rd PROD Request-Response 5" on the external hard drive
for the Excel files used for the analysis. ln addition, please see the directory titled "lPC-
E-14-33,34 IPUC Staffs Third Production Request" and the confidential subdirectory
titled "CONFIDENTIAL-lPC-E-14-33,34-AURORA Change Set-IPUC 3rd PROD
Request-Response 5" for the AUROM files. The files and data contain non-public,
confidential, and proprietary dispatch costs or project generation of ldaho Power
resources and should be handled in accordance with the Protective Agreement. The
external hard drive and file subdirectories are marked .CONFIDENTIAL.' However, to
maintain the integrity of the files, the files themselves are not further marked or
identified as confidential.
IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISS]ON STAFF TO IDAHO POWER COMPANY - 3
American Falls Solar
The response to this Request is sponsored by Randy C. Allphin, Energy
Contracts Coordinator Leader, ldaho Power Company.
DATED at Boise, ldaho, this 11h day of December 2014.
IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4
Attorney for ldaho Power Company
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 11ft day of December 20141 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
Kristine A. Sasser
Deputy Attomey General
ldaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
American Falls Solar, LLC
Ron Williams
Williams Bradbury, P.C
1015 West Hays Street
Boise, ldaho 83702
Ben Fairbanks
Director, Development
First Wind
Hand Delivered
U.S. Mail
Overnight Mail
FAXX Email [e-mail]
Hand Delivered
U.S. Mail
Ovemight Mail
FAXX Email [e-mail]
_Hand Delivered
U.S. Mail
Overnight Mail
FAXX Email [e-mail]
IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5
Christa Bearry, Lega! Assistant