20180711Staff 7-21 to IPC.pdf

EDITH PACILLO
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5430
IN THE MATTER OF THE PETITION OF
IDAHYDRO, SHOROCK HYDRO, INC., J.R.
SIMPLOT COMPANY, AND RENEWABLE
ENERGY COALITION FOR MODIFICATION
OF THE 90/110 PERFORMANCE BAND AND
CALCULATION OF OPERATION AND
MAINTENANCE CHARGES FOR PURPA
QUALIFYING FACILITES.
R,LCEIVE.D
:ll0 J'iL I I Pil 3: h2
CASE NO. IPC.E.18.O7
SECOND PRODUCTION
REQUEST OF THE
COMMISSION STAFF TO
IDAHO POWER COMPANY
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iSsrcu
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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The Staff of the Idaho Public Utilities Commission, by and through its attorney of record,
Edith Pacillo, Deputy Attorney General, request that Idaho Power Company (ldaho Power or
Company) provide the following documents and information as soon as possible, by
WEDNESDAY, AUGUST 1, 2018.
This Production Request is continuing, and Idaho Power is requested to provide, by way
of supplementary responses, additional documents that it or any person acting on its behalf may
later obtain that will augment the documents produced.
Please provide answers to each question and supporting workpapers that provide detail or
are the source of information used in calculations. Idaho Power is reminded that responses
pursuant to Commission Rules of Procedure must include the name and phone number of the
person preparing the document, and the name, location and phone number of the record holder
and if different the witness who can sponsor the answer at hearing if need be. IDAPA
31.01.01.228.
SECOND PRODUCTION REQUEST
TO IDAHO POWER I JULY I I, 2OI8
In addition to the written copies provided as response to the questions, please provide all
Excel and electronic files on CD with formulas activated.
REQUEST NO. 7: If Idaho Power purchases power from a Qualified Facility (QF) on a
month-ahead basis and the amount of power actually delivered over the course of that month
does not match the monthly estimates, please list and describe the sources of incremental costs
incurred by Idaho Power to cope with the differential. In addition, with regard to these
incremental costs, please provide answers to the following questions:
a. For each of these sources of incremental cost, please describe how these incremental
costs increase as the size of the differential between the specified amount of
generation and the actual amount of generation changes.
b. Please describe how these incremental costs to the Company can be estimated?
Please provide actual historical data to quantify each of these sources of incremental
cost; and if the amount of incremental cost is dependent on the size of the differential
between the contracted amount of generation and the actual amount of generation (or
other factors), please reflect this in your data.
c. Does Idaho Power believe that the 90/1 10 requirement is intended to recover these
incremental costs? Please explain.
d. Please compare this to market purchases or other power purchases.
REQUEST NO. 8: In the "Answer to Interrogatory No. 2" of "Idaho Power Company's
Answers and Responses to J.R. Simplot's First Interrogatories, Requests for Admission, and
Requests for Production to Idaho Power Company", the Company described the process for
developing the Operating Plan, which reflects the economic dispatch of the Company's resources
on a monthly basis. According to Idaho Power, QF contract estimated generation amounts, most
recent l2-month history, five-year rolling average, project adjusted estimated net energy
amounts, and any previous or current adjustments are used to develop the plan. Data from the
Operating Plan is used in the development of short-term forecasts, to determine trends and
expectations for energy deliveries on a long-term and near-term basis, including day-head.
Throughout the month, this process compares balance of month purchases and sales with Idaho
Power available generation, the CSPP forecast and load forecast to derive a preliminary plan for
SECOND PRODUCTION REQUEST
TO IDAHO POWER 2 JULY 11, 2018
the day...The preliminary plan is then forwarded to the day-ahead process, where the forecasting
process updates the preliminary plan to correct short or long positions, based on three-day
trending of average output from generation resources, to estimate expected deliveries for the
upcoming day.
a. Does Idaho Power use the QF energy estimation amounts for purposes other than the
development of the Operating Plan, the Preliminary Plan for the Day, and the Day-
ahead Process? Ifso, please describe them in detail.
b. Please describe in details how an inaccurate estimate can affect the Operating Plan,
the Preliminary Plan for the Day, and the Day-ahead Process. Please support your
answers with examples.
c. Is developing improved forecasting capabilities an appropriate replacement for
901110?
REQUEST NO. 9: Does Idaho Power estimate generation amounts of its own hydro and
other variable resources? If so, please answer and provide the following:
a. Describe the estimation process.
b. Quantify the accuracy of Idaho Power's estimates compared to QFs' estimates.
c. If Idaho Power believes its estimates are more accurate than QFs' estimates, please
discuss whether it is possible to allow QFs affected by this case to use the same
estimate service and share the cost of the service.
REQUEST NO. 10: Please provide a schematic of the typical installation of a QF
transmission level interconnection (13SkV to 161kV). Show components and equipment items
from the existing system tie-in through to the QF generator. Please identify each item, the point
of delivery, and the limits of the Company's O&M responsibility.
REQUEST NO. 11: Please provide a schematic of the typical installation of a QF
distribution level interconnection (below l38kV). Show components and equipment items from
the existing system tie-in through to the QF generator. Please identify each item, system tie-in
point, the point of delivery, and the limits of the Company's O&M responsibility.
SECOND PRODUCTION REQUEST
TO IDAHO POWER J JULY 1I, 2OI8
REQUEST NO. 12: In the "Response to Request for ProductionNo. 1.2" of"Idaho
Power Company's Response to Renewable Energy Coalition's First Request for Production",
Idaho Power stated that the workpapers supporting the calculation of the 0.4 percent rate for 138
kV interconnections and above were not available.
a. Please confirm that Attachment A to this request is the workpaper used to calculate
the 0.4 percent rate.
b. Please update the 0.4 percent rate by using the most recent input data (i.e.12 months
ending December 31,2017), and provide worksheets (with formula intact) to show
the calculation steps.
REQUEST NO. 13: The Company's response to Renewable Energy Coalition's first
production request No. 1.3 provides the data for calculating a current version of the 35-year
levelized Distribution Operation and Maintenance rate of 0.70%. Please explain how this rate,
when applied to the initial construction cost of a QF interconnection, provides an accurate
levelized monthly estimate of O&M expense. In addition, please provide the following:
a. Please provide a detailed description for each item in Line Nos. l-47 and explain why
each of the items are included in the calculation of the O&M rate.
b. Are there any other components beyond those listed on lines I and2 (poles and
conductors) necessary for distribution level QF interconnections? If so, what are
they? If they are not included, why not?
REQUEST NO. 14: Please provide the same information for the calculation of the 35-
year levelized Transmission Operation and Maintenance rate of 0.40% as requested in the
previous question. Please include subparts a and b in your response.
REQUEST NO. 15: Please explain why the 35-year levelized Distribution Operation
and Maintenance rate is different than the 35-year levelized Transmission Operation and
Maintenance rate.
REQUEST NO. 16: What sort of expenditure in time and resources does it take to
integrate the monthly output estimates into your resource stack?
SECOND PRODUCTION REQUEST
TO IDAHO POWER 4 JULY 11, 2018
REQUEST NO. 17: At the time the legally enforceable obligation is incurred, do you
know whether you will pay the QF published avoided costs or Surplus Energy Price for the
electricity you purchase from the QF?
REQUEST NO. 18: According to Idaho Power's response to Interrogatory number 2
from the J.R. Simplot Co., a forecast for each QF is developed based on; "a number of factors
including contract estimated generation amounts, most recent 12-month history, five-year rolling
average, project-adjusted estimated net energy amounts, and any pervious or current adjustments.
Generally, the starting point is the rolling five-year historical average of monthly generation . . ."
Given the numerous factors considered, and that the starting point is the five-year plan, admit or
deny that an accurate estimate is feasible without the 90/110 performance band.
REQUEST NO. 19: How many times have small hydro QFs fallen outside the 90/110
performance band? By how much as a percentage?
REQUEST NO.20: Have there been any increased operation difficulties integrating
electricity from wind QFs with the replacements to the 90/l l0 requirement in Order No. 30488?
REQUEST NO.21: How do you define "firm energy" in regards to QF energy sales in
Idaho? How does this definition differ from what you consider the industry definition standard
of"firm energy?"
Dated at Boise, Idaho, this I 19 O^rof July 2018
Pacillo
Deputy Attorney General
Technical Staff: Yao Yin (7-12)
Rick Keller (13-15)
i:umisc:prodreq/ipcel8.Tepyyrk prod req2 ipc
SECOND PRODUCTION REQUEST
TO IDAHO POWER 5 JULY TI,2OI8
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Attachment A
Case No. IPC-E-18-07
Production Request
07lllll8 Page 3 of 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS llth DAY OF JULY 2018, SERVED
THE FOREGOING SCOND PRODUCTION REQUEST OF THE COMMISSION
STAFF TO IDAHO POWER COMPANY IN CASE NO. IPC-E-I8-07, BY MAILING
A COPY THEREOF, POSTAGE PREPAID, TO THE FOLLOWNG:
DONOVAN WALKER
LEAD COLTNSEL
IDAHO POWER COMPANY
PO BOX 70
BOISE rD 83707-0070
E-mail : dwalker@idahopower. com
dockets@ idahopower. com
DAVID H ARKOOSH
LAW OFFICE OF DAVID
ARKOOSH
PO BOX 2817
BOISE ID 83701
E-mail : [e-mail]
J KAHLE BECKER
ATTORNEY AT LAW
223 N 6TH STREET #325
BOISE ID 83702
E-mail: [e-mail]
TAMARACK ENERGY PARTNERS HIP
c/o MICHAEL C CREAMER
PRESTON N CARTER
601 W BANNOCK
BOISE ID 83702
E-mail: [e-mail]
pnc@ givenspurd ley. com
CLINT KALICH, MANAGER
RESOURCE PLANNING & ANALYSIS
AVISTA CORPORATION
1411 E MISSION AVE, MSC-7
SPOKANE WA992O2
E-mail: [e-mail]
C TOM ARKOOSH
ARKOOSH LAW OFFICES
PO BOX 2900
BOISE ID 83701
E-mail : [e-mail]
PETER J RICHARDSON
GREGORY M ADAMS
RICHARSON ADAMS PLLC
515 N 27TH STREET
BOISE ID 83702
E-mail : [e-mail]
gre q@richardsonadams. com
IRION SANGER
SANGER LAW PC
I I I7 SE 53RD AVE
PORTLAND OR 97215
E-mail: [e-mail]
MICHAEL G ANDREA
SENIOR COUNSEL
AVISTA CORPORATION
I4I I E MISSION AVE, MSC-23
SPOKANE W A 99202
E-mail: [e-mail]
Y
CERTIFICATE OF SERVICE