20170302IPC to Micron 4 CORRECTED Supplemental.pdf

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LISA D. NORDSTROiI
Lead Counsel
! [e-mail] ,l ilisl0ii
March 2,2017
VIA HAND DELIVERY
Diane M. Hanian, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re Case No. IPC-E-16-24
Recovery of Costs Associated with North Valmy Power Plant - ldaho
Power Company's Corrected Supplemental Response to Micron
Technology, lnc.'s Data Request No. 14
Dear Ms. Hanian:
Enclosed for filing in the above matter please find an original and three (3) copies
of ldaho Power Company's Corrected Supplemental Response to Micron Technology,
lnc.'s Data Request No. 14. After ldaho Power Company ("Company") filed its
supplemental response, it found an error in the analysis specific to the levelized
revenue requirement on incremental investments. The Company has corrected the
error and apologizes for any confusion this may have caused. The original
supplemental response stated in subpart a ". decommissioning costs would be
$8,830,210 on an ldaho jurisdictional basis. . . ." This amount is incorrect and should be
". . . decommissioning costs would be $10,068,386 on an ldaho jurisdictional basis. . . ."
Also enclosed are four (4) copies of a non-confidential disk containing the
corrected analysis responsive to Micron Technology, lnc.'s data request.
lf you have any questions regarding this matter, please do not hesitate to contact
Very truly yours,
bc-a
LDN:csb
Enclosures
cc: Service List
1221 W. ldaho St. (83702)
PO. Box 70
Boise, lD 83707
An IDACORP Company
me.
D. Nordstrom
LISA D. NORDSTROM (lSB No. 5733)
Idaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I n ordstrom @ ida hopower. com
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORIry TO INCREASE ITS RATES
FOR ELECTRIC SERVICE TO RECOVER
COSTS ASSOCIATED WITH THE NORTH
VALMY PLANT
CASE NO. !PC-E-16-24
IDAHO POWER COMPANY'S
CORRECTED SUPPLEMENTAL
RESPONSE TO MICRON
TECHNOLOGY, INC.'S DATA
REQUEST NO. 1-4
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COMES NOW, ldaho Power Company ("ldaho Powe/' or "Company"), and
corrects its supplemental response to Micron Technology, lnc.'s Data Request No. 14
to Idaho Power Company dated February 1,2017, as follows:
IDAHO POWER COMPANY'S CORRECTED SUPPLEMENTAL
RESPONSE TO MICRON TECHNOLOGY, INC.'S DATA REQUEST NO. 1-4 - 1
REQUEST NO. 14: Please quantify the dollar revenue requirement difference
between the Company's proposal to accelerate Valmy depreciation rates, and leaving
the currently-approved depreciation rates in place (i.e., no acceleration), regardless of
the actual retirement dates for Valmy 1 and Valmy 2 under each of the following
scenarios:
a. lncluding full recovery of the forecasted capital additions and
decommissioning costs described in Exhibit 2 of Mr. Larkin's testimony; and
b. Without including recovery of the forecasted capital additions and
decommissioning costs. (ln other words, including only the plant investment through
12-31-16).
CORRECTED SUPPLEMENTAL RESPONSE TO REQUEST NO. 14: To
perform the above-requested analysis, ldaho Power assumed a 2035 depreciable life
for all Valmy investments and assumed the same capital addition forecast included in
Exhibit No. 2 to Mr. Larkin's testimony. Please see the corrected Excel file provided
electronically with this response for the workpapers that support the analysis.
a. The Valmy incremental annual levelized revenue requirement under a
2035 depreciable life including full recovery of forecasted capital additions and
decommissioning costs would be $10,068,386 on an ldaho jurisdictional basis
compared to the $28,497,934 presented in Exhibit No. 2.
b. The Valmy incremental annual levelized revenue requirement under a
2035 depreciable life excludinq full recovery of forecasted capital additions and
decommissioning costs would be $6,364,611 on an ldaho jurisdictional basis compared
IDAHO POWER COMPANY'S GORREGTED SUPPLEMENTAL
RESPONSE TO MICRON TECHNOLOGY, INC.'S DATA REQUEST NO. 14 - 2
to the $22,260,512 presented in Exhibit No. 2. Please note, levelized revenue
requirement computations are based on an estimated plant balance at May 31,2017.
The response to this Request is sponsored by Matt Larkin, Revenue
Requirement Manager, ldaho Power Company.
DATED at Boise, ldaho, this 2nd day of March 2017.
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LIYA 6. r.roRosrRott
Attorney for ldaho Power Company
IDAHO POWER COMPANY'S CORRECTED SUPPLEMENTAL
RESPONSE TO MICRON TECHNOLOGY, INC.'S DATA REQUEST NO. 1-4 - 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 2nd day of March 2017 ! served a true and
correct copy of IDAHO POWER COMPANY'S CORRECTED SUPPLEMENTAL
RESPONSE TO MICRON TECHNOLOGY, INC.'S DATA REQUEST NO. 1-4 upon the
following named parties by the method indicated below, and addressed to the following:
Gommission Staff
Camille Christen
Deputy Attorney General
Idaho Public Utilities Commission
47 2 W est Wash ington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
Micron Technology, Inc.
Thorvald A. Nelson
Frederick J. Schmidt
EmanuelT. Cocian
Brian T. Hansen
HOLLAND & HART, LLP
6380 South Fiddlers Green Circle, Suite 500
Greenwood Village, Colorado 80111
Pete Bennett
Micron Technology, lnc.
8000 South FederalWay
Boise, ldaho 83707
ldaho lrrigation Pumpers Association, lnc.
Eric L. Olsen
ECHO HAWK & OLSEN, PLLC
505 Pershing Avenue, Suite 100
P.O. Box 6119
Pocatello, ldaho 83205
Anthony Yankel
12700 Blake Avenue, Unit 2505
Lakewood, Ohio 44107
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etcocian@hol land hart. com
bhansen@hollandhart. com
klha lltO hol land hart. com
kmtrease@ hol land hart. com
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IDAHO POWER COMPANY'S CORRECTED SUPPLEMENTAL
RESPONSE TO MICRON TECHNOLOGY, INC.'S DATA REQUEST NO. 1-4 - 4
ldaho Conservation League
Benjamin J. Otto
ldaho Conservation League
710 North Sixth Street
P.O. Box 844
Boise, ldaho 83701
Sierra Club
Travis Ritchie
Sierra Club
2101 Webster Street, Suite 1300
Oakland, California 94612
United States Department of Energy and
Federal Executive Agencies
Steven Porter
Office of the General Counsel (GC-76)
The United States Department of Energy
1000 lndependence Avenue, SW (Room 6D-033)
Washington, D.C.20585
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Christa Bearry,
IDAHO POWER COMPANY'S CORRECTED SUPPLEMENTAL
RESPONSE TO MICRON TECHNOLOGY, INC.'S DATA REQUEST NO. 1-4 - 5
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