20170405IPC to Staff Redacted 31-36.pdf

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i-i An IDACORP Company
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LISA D. NORDSTROiI
Lead Counsel
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April 5, 2017
VIA HAND DELIVERY
Diane Hanian, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re Case No. !PC-E-16-24
Recovery of CostsAssociated with North Valmy Power Plant- ldaho Power
Company's Response to the Fourth Production Request of the Commission
Staff
Dear Ms. Hanian
Enclosed forfiling in the above matter please find an originaland three (3) copies of
ldaho Power Company's Response to the Fourth Production Request of the Commission
Staff.
Also enclosed are four (4) copies each of non-confidentia! 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,
U4-0@
Lisa D. Nordstrom
LDN:csb
Enclosures
1221 W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
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lnordstrom@ hooower.com
Attorney 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
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CASE NO. IPC-E-16-24
IDAHO POWER COMPANY'S
RESPONSE TO THE FOURTH
PRODUCTION REQUEST OF
THE COMMISSION STAFF
COMES NOW, ldaho Power Company ("ldaho Power" or "Comp?ry"), and in
response to the Fourth Production Request of the Commission Staff to ldaho Power
dated March 17,2017, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH
PRODUCTION REQUEST OF THE COMMISSION STAFF - 1
REQUEST NO. 31: Please provide a description of the categories of cost
included in the Fixed Cost column reflected in Harvey Exhibit No. 6. For each
forecasted year, please provide a breakdown of fixed costs by Valmy Unit #1, Valmy
Unit #2, and Valmy common facilities and then further broken down by cost category
and/or identified by FERC account.
RESPONSE TO REQUEST NO. 31: The "Fixed Costs" column in Exhibit No. 6
consists of book depreciation, tax, finance costs, operations and maintenance ("O&M')
expense, property tax and insurance, new investment, and decommissioning costs.
The breakdown of the cost between Valmy Unit 1, Valmy Unit 2, and Valmy common
facilities and cost categories for the 202512025,203112034, 201912025 unit shutdown
timing alternatives is set forth in the confidential Excel file provided on the confidential
CD. The confidentia! CD will be provided to those parties that have executed the
Protective Agreement in this matter.
The response to this Request is sponsored by Tom Harvey, Resource Planning
and Operations Director, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH
PRODUCTION REQUEST OF THE COMMISSION STAFF - 2
REQUEST NO. 32: Please provide the same breakdown of costs provided as a
result of the previous request but using a 2019 Valmy Unit #1 and 2025 Valmy Unit #2
closure scenario.
RESPONSE TO REQUEST NO. 32: Please see the confidential Excel file
provided with the Company's response to the Idaho Public Utilities Commission Staffs
("Staff') Request No. 31, which includes the 201912025 scenario cost breakdown.
The response to this Request is sponsored by Tom Harvey, Resource Planning
and Operations Director, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH
PRODUCTION REQUEST OF THE COMMISSION STAFF - 3
REQUEST NO. 33: Please provide Valmy plant annual operation and
maintenance expense currently embedded in base rates broken out by FERC account.
RESPONSE TO REQUEST NO. 33: The followi ng chart provides a breakdown
of the estimated O&M expenses associated with Valmy currently included in customer
rates:
IDAHO POWER GOMPANY
OPERATION AND MAINTENANCE EXPENSES
2011 TestYear
FERC
ACCOUNT
NUMBER DESCRIPTION VALMY
Non-PCA Related - Valmy Plant O&M500 Oper and supv engineering505 Electric expenses506 Misc steam power expenses510 Main supv and engineering511 Main of structures512 Main of boiler plant513 Main of electric plant
514 Main of misc steam plant
924 Property insurance
$ 656,261
2,360,521
2,096,838
111,231
341,782
8,827,209
1,383,249
267,092
330 832
$ 16,375,005
PCA Related - Valmy Plant O&M501 Fuel $ 40,859,298
The response to this Request is sponsored by Courtney Waites, Senior
Regulatory Analyst, ldaho Power Company.
]DAHO POWER COMPANY'S RESPONSE TO THE FOURTH
PRODUCTION REQUEST OF THE COMMISSION STAFF - 4
REQUEST NO. 34: Please provide actual Valmy plant operations and
maintenance expense broken out by FERC account for the past 12 months.
RESPONSE TO REQUEST NO. 34: Please see the Excelworkbook on the non-
confidential CD for the actual Valmy plant O&M expenses broken out by Federal Energy
Regulatory Commission account for 2016.
The response to this Request is sponsored by Randy Henderson, Finance Team
Leader ll, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH
PRODUCTION REQUEST OF THE COMMISSION STAFF - 5
REQUEST NO. 35: Exhibit No. 6 of Mr. Harvey's Testimony shows total power
supply costs generated by AURORA. Please provide the version of AURORA software
used and provide al! AURORA files and other worksheets (with formula intact)
associated with the calculation.
RESPONSE TO REQUEST NO. 35: The AURORA version that was used for
this analysis is 11.5.1097. The AURORA project file, input database, and template are
provided on the confidential CD. The confidential CD wil! only be provided to those
parties that have executed the Protective Agreement in this matter.
The response to this Request is sponsored by Tom Harvey, Resource Planning
and Operations Director, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH
PRODUCTION REQUEST OF THE COMMISSION STAFF - 6
REQUEST NO. 36: ldaho Power's Response to Staffs Production Request No.
2 states that a supplemental analysis is being prepared for filing to help clarify the
differences between the December 31 , 2019, and December 31, 2025, Valmy Unit #1
shutdown dates. Please provide the version of AURORA softutare used in the analysis
and provide all AURORA files and other worksheets (with formula intact) associated
with the calculation.
RESPONSE TO REQUEST NO. 36: The AURORA version that was used for
this analysis is 12.1.1046. The AURORA project file, input database, and template are
provided on the confidential CD. The confidential CD will only be provided to those
parties that have executed the Protective Agreement in this matter.
Please see confidential Aftachments 2 through 6 provided in the Company's
supplemental response to Staffs Request No. 2 and confidentialAttachment 4 provided
with this response for the worksheets associated with the calculations.
The response to this Request is sponsored by Tom Harvey, Resource Planning
and Operations Director, ldaho Power Company.
DATED at Boise, Idaho, this Sth day of April2017.
ISA D
Attorney for ldaho Power Company
IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH
PRODUCTION REQUEST OF THE COMM]SSION STAFF - 7
CERTIFICATE OF SERVICE
I HEREBY CERTTFY that on the Sth day of April 2017 t served a true and correct
copy of IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION
REQUEST OF THE COMMISSION STAFF upon the following named parties by the
method indicated below, and addressed to the following:
Commission Staff
Camille Christen
Deputy Attorney General
ldaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
Micron Technology, lnc.
Thorvald A. Nelson
Frederick J. Schmidt
Emanuel 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 FOURTH
PRODUCTION REQUEST OF THE COMMISSION STAFF - 8
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kmtrease@ hol land hart. com
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ldaho Conseruation League
Benjamin J. Otto
ldaho Conservation League
710 North Sixth Street
P.O. Box 844
Boise, ldaho 83701
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Sierra Club
Travis Ritchie
Sierra Club
2101 Webster Street, Suite 1300
Oakland, California 94612
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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, Legal
IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH
PRODUCTION REOUEST OF THE COMMISSION STAFF - 9