20170317IPC to Staff Redacted 24-28.pdf

STHM
An TDACORP Company
.. : : :.i i., j -; f,:, i). e."I I i i: /_.,tJLISA D. NORDSTROM
Lead Counsel
I [e-mail]
March 17,2017
VIA HAND DELIVERY
Diane Hanian, Secretary
ldaho Public Utilities Commission
472 W est Washington Street
Boise, Idaho 83702
Re: Case No. !PC-E-16-24
Recovery of Costs Associated with North Valmy Power Plant - ldaho Power
Company's Response to the Second Production Request of the Commission
Staff
Dear Ms. Hanian:
Enclosed forfiling in the above matter please find an original and three (3) copies of
ldaho Power Company's Response to the Second Production Request of the Commission
Staff.
Also enclosed are four (4) copies each of non-confidential and confidential disks
containing information responsive to Staffs production requests. Please handle the
confidential information in accordance with the Protective Agreement executed in this
matter.
Very truly yours,
Lisa D
LDN:kkt
Enclosures
PO. Box 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I nord stro m @ida hopower. co m
'!'!^,-l\/r-ft
: .:-1,-, -- I '"' t": U
'. "'-. '-l nx ,. a1
Attomey for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORIW TO INCREASE RATES FOR
ELECTRIC SERVICE TO RECOVER
COSTS ASSOCIATED WITH THE NORTH
VALMY PLANT.
)
)
)
)
)
)
)
)
CASE NO. IPC-E-16-24
IDAHO POWER COMPANY'S
RESPONSE TO THE SECOND
PRODUCTION REQUEST OF
THE COMMISSION STAFF
COMES NOW, ldaho Power Company ("ldaho Powef' or "Company'), and in
response to the Second Production Request of the Commission Staff to ldaho Power
Company dated February 24,2017, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCT]ON REOUEST OF THE COMMISSION STAFF - 1
REQUEST NO. 24: Please provide the book value of the North Valmy Power
Plant, by FERC sub-account, as of the 121311201 1 as reflected in rates as of the last
general rate case.
RESPONSE TO REQUEST NO. 24: The following is a list of the book values of
the North Valmy Power Plant ("Valmy'') on an ldaho jurisdictional basis, by sub-account,
as of December 31,2011, and cunently included in customer rates:
310.1
310.2
311
312.1
312.2
3',t4
315
316.0
316.4
316.5
316.6
352
353
391.1
391.2
394
397
Land & Land Rights
Land &Water Rights
Structures & lmprovements
Boiler Plant Equipment-Scrubbers
Boiler Plant Equipment-Other
Turbogenerator Units
Accessory Electric Equipment
Misc Power Plant Equip
Misc Power Plant Equip
Misc Power Plant Equip
Misc Power Plant Equip
Structures & lmprovements
Station Equipment
ffice Fumiture & EquipFumiture
Office Fumiture & Equip-Computers
Tools, Shop, Garage Equip
Communication Equip
Total
$ 646,510.59
411,694.89
60,559,393.50
18,829,7U.93
166,102,157.16
48,524,209.60
26,9il,007.74
5,231,919.06
38,077.09
17,230.71
101,453.91
736,516.83
6,132,155.68
77,945.56
596,102.69
176,073.65
178,029.11
$ o.oo $
(20,46/..371
(37,877,689.46)
(14,245,212.59)
(92,084,209.07)
(25,720,192.15)
(18,578,801.96)
(2,467,U1.8O1
(25,146.31)
(15,825.50)
(7,799.27)
(4s0,691.10)
(2,157,979.491
(1,948.64)
(417,271.881
(27,475.65)
(29,671.53)
646,510.59
391,230.51
22,681,704.O4
4,58/.,522.35
74,017,948.09
22,804,017.45
8,385,205.78
2,704.,577.25
12,930.78
't,405.21
93,654.64
245,825.74
3,974,176.19
75,996.92
178,830.81
148,598.00
148,357.58
$ 335,323,212.09 $(194,167,720.76) $ 141,155,491.93
The response to this Request is sponsored by Courtney Waites, Senior
Regulatory Analyst, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF - 2
REQUEST NO. 25: Please provide the additions and retirements to the North
Valmy Power Plant, by FERC sub-account for the years 2012 through what was
included in the cunent filing. Please provide the source documents for the plant
additions and retirements.
RESPONSE TO REQUEST NO. 25: Please see the attachment on the non-
confidential CD that provides the actual plant additions and retirements at Valmy from
January 1, 2012, to July 31, 2016, as included in the Company's cunent filing. The
forecasted plant changes by Federal Energy Regulatory Commission ("FERC") sub-
accountfrom August 1,2016, through May31 ,2017, were provided in the Company's
Response to Micron's Request No. 1-2 on the tab titled Valmy Existing Balance 5-31-
17. Idaho Powe/s detail of the forecasted plant additions for June 1, 2017, thnrugh
December 31,2025,can be found in the Company's Response to Micron's Request No.
1-2 on the tab titled Valmy Forecast.
The Company did not prepare the June 1, 2017, through December 31, 2025,
forecasted additions by FERC plant sub-account. In addition, ldaho Power has not
forecasted retirements for the August 1,2016, through December 31,2025, time period
for any Valmy plant balances. ldaho Power has summarized the plant additions and
retirements from 2012 through July 2016 by work order, in the attachment to this
response, worksheet tab "Summary by Work Order." Because the number of source
documents associated with these additions and retirements is voluminous, ldaho Power
will provide detailed work order level activity for any work orders selected by ldaho
Public Utilities Commission ("Commission") Staff ("Staff'). From the work order level
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF - 3
activity detail, a secondary sample would be necessary to trace transactions back to
source documents (i.e., invoices from NV Energy).
The response to this Request is sponsored by Donna Wheeler, Finance Team
Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REOUEST OF THE COMMISSION STAFF.4
REQUEST NO. 26: PIease provide the source documents for the estimates for
future plant additions and retirements to the North Valmy Power Plant included in the
filing.
RESPONSE TO REQUEST NO. 26: The confidential attachment provided on
the confidentia! CD is the source document received from NV Energy supporting the
estimates of future plant additions at Valmy included in the filing.
ldaho Power does not use a forecast of future retirements as part of the levelized
revenue requirement computation. The exclusion of retirements allows for full collection
of existing investments by the proposed end-of-life date.
The confidential attachment wlll be provided to those parties that have executed
the Protective Agreement in this matter.
The response to this Request is sponsored by Randy Hendercon, Finance Team
Leader ll, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF - 5
REQUEST NO. 27: Decommissioning Costs are currently accounted for as an
Asset Retirement Obligation. Please provide Staff with the accounting and joumal
entries, details and source documents related to this ARO.
RESPONSE TO REQUEST NO. 27: ldaho Power wishes to clarify that there are
other expenditures included in decommissioning costs, such as tearing down existing
facilities that do not meet the definition of an Asset Retirement Obligation ("ARO").
These costs are included in the revenue requirement in this filing, but are not presented
in the attachment to this response, which relates specifically to AROs.
AROs are legal obligations associated with the removal and retirement of
tangible long-lived assets. Specific AROs identified at Valmy include AROs related to
asbestos remova!, evaporative ponds, landfills, and fue! tanks. ldaho Power is following
the accounting treatment outlined in Commission Order No. 29414, which calls for the
Company to record a regulatory asset for (1) the cumulative financial statement impact
resulting from the Company's implementation of Accounting Standards Codification
("ASC') 410 (formerly Statement of Financial Accounting Standards 143), and (2) the
ongoing annual differences between the ASC 410 depreciation and accretion expenses
and the annual depreciation expenses that are curently authorized by the Commission
in depreciation rates and accruals.
Pursuant to Order No. 29414, ldaho Power provides the Commission annually by
June 1, and as part of any rate case filing, all joumal entries made under the
requirements of ASC 410.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMM]SSION STAFF - 6
Please see the aftachment provided on the non-confidential CD that supports the
Valmy-related accounting and joumal entries, details, and source documents at
December 31, 2016.
The response to this Request is sponsored by Matt Larkin, Revenue
Requirement Manager, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REOUEST OF THE COMMISSION STAFF. T
REQUEST NO. 28: Did the cunent Depreciation Study include a review and
analysis of the North Valmy Power Plant as it pertains to salvage value? Please explain.
RESPONSE TO REQUEST NO. 28: No. As described in the direct testimony of
Company witness Mr. John Spanos in Case No. IPC-E-16-23, the review and analysis
of a!! Valmy-related items are being handled outside of the Company's cunent
Depreciation Study.
The response to this Request is sponsored by Courtney Waites, Senior
Regulatory Analyst, ldaho Power Company.
DATED at Boise, ldaho, this 17h day of March 2017.
.NO
Attomey for ldaho Company
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REOUEST OF THE COMMISSION STAFF - 8
CERTIFICATE OF SERVICE
t HEREBY CERTIFY that on the 17th day of March, 2017,1 served a true and
conect copy IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF upon the following named
parties by the method indicated below, and addressed to the following:
Commission Staff
Cami!!e Christen
Deputy Attomey General
ldaho Public Utilities Commission
47 2 W est Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
Micron Technology, lnc.
Thorvald A. Nelson
Frederick J. Schmidt
Emanue! T. 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
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF - 9
X Hand Delivered
_U.S. Mail
_Ovemight Mail
_FAXX Email [e-mail]
_Hand DeliveredX U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
[e-mail]
etcocian@ho!land hart. com
bhansen@hol landhart.com
[e-mail]
kmtrease@holland hart. com
_Hand DeliveredX U.S. Mail
_Ovemight Mai!
_FAXX Email [e-mail]
[e-mail]
_Hand DeliveredX U.S. Mail
_Ovemight Mail
_FAXX Email [e-mail]
_Hand DeliveredX U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
ldaho Gonservation League
Benjamin J. Otto
ldaho Conservation League
710 North Sixth Street
P.O. Box 844
Boise, ldaho 83701
_Hand DeliveredX U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
Sierra Glub
Travis Ritchie
Siena CIub
2101 Webster Street, Suite 1300
Oakland, Califomia 94612
_Hand DeliveredX U.S. Mail
_Ovemight Mail
_FAXX Email [e-mail]
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
_Hand DeliveredX U.S. Mail
Ovemight Mail
_FAXX Email [e-mail]
T Executive Assistant
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF.lO