20190507IPC to Staff 2nd Supplemental 9.pdf

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An IDACORP Company
JULIA A. HILTON
Senior Counsel
[e-mail]
May 7 ,2019
VIA HAND DELIVERY
Diane M. Hanian, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-19-08
Recovery of Costs Associated with North Valmy Power Plant - ldaho Power
Company's Second Supplemental Response to the Second Production
Request of the Commission Staff
Dear Ms. Hanian
Enclosed for filing in the above matter are an original and three (3) copies of ldaho
Power Company's Second Supplementa! Response to the Second Production Request of
the Commission Staff.
Also enclosed are four (4) copies of a non-confidential disk containing information
responsive to Staff's Request No. 9.
lf you have any questions about the enclosed documents, please do not hesitate to
contact me.
Very truly
lia A. Hi
JAH:csb
Enclosures
1221 W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
R€CEIVED
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Attomeys for ldaho Power Company
BEFORE THE !DAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS RATES
FOR ELECTRIC SERVICE TO RECOVER
COSTS ASSOCIATED WITH THE NORTH
VALMY POWER PLANT
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CASE NO. ]PC-E-19-08
IDAHO POWER COMPANY'S
SECOND SUPPLEMENTAL
RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE
COMMISSION STAFF
COMES NOW, ldaho Power Company ("ldaho Power" or "Company") and further
supplements its response to the Second Production Request of the Commission Staff to
ldaho Power Company dated April 1 1, 2019, as follows:
IDAHO POWER COMPANY'S SECOND SUPPLEIT/IENTAL RESPONSE TO
THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 1
JULIA A. HILTON (lSB No. 7740)
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 h ilton@ idahopower. com
I n ord strom @ ida hopowe r. com
REQUEST NO. 9: Please provide a detailed explanation and supporting
documentation and analysis substantiating the statement quoted below from Harvey's
Direct Testimony, on Page No. 22. Please include a description and a breakdown of
the "certain costs" that could be reduced and why remaining cost categories could not
be reduced.
Therefore, it is unlikely that ldaho Power's exit from Unit 2
operations prior to 2025 would result in material savings
because the only payment obligation relief would come from
a reduction in certain costs associated with ldaho Power's
capacity reduction in Unit 2 operations.
SUPPLEMENTAL RESPONSE TO REQUEST NO. 9: Please see the Excel file
provided on the enclosed CD for ldaho Power's analysis to determine the cost of exiting
the North Valmy power plant ("Valmy") Unit 2 operations in 2019 relative to the
Company's proposed exit at year-end 2025. The first page of the Excel file is the long-
term capacity expansion ("LTCE") buildout between the two AURORA simulations.
. The LTCE for Portfolio 14 allowed Valmy 2 to retire anywhere between
2019-2025, and the model kept Valmy 2 until 2025.
o The LTCE for the forced closure of Valmy 2 year-end 2019 moved the
early Jim Bridger power plant ("Bridger") retirement in Portfolio 14 from year 2022 lo
year 2026 to replace Valmy's lost capacity.
The second page of the Excel file shows the hourly portfolio simulations, between the
two LTCES.
. The net present value ("NPV") for Portfolio 14 is $5.1 billion.
o The NPV for the Valmy 2 year-end 2019 is $5.2 billion.
o The cost of running Bridger longer to replace the capacity that
Valmy provides proves to be more expensive.
IDAHO POWER COMPANY'S SECOND SUPPLEMENTAL RESPONSE TO
THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 2
The supplemental response to this Request is sponsored by Tom Harvey,
General Manager of Power Supply, Planning and Operations, ldaho Power Company.
DATED at Boise, ldaho, this 7th day of May 2019.
J A. HIL N
Attorney for ho Power Company
IDAHO POWER COMPANY'S SECOND SUPPLEMENTAL RESPONSE TO
THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 7th day of May 2019 I served a true and correct
copy of IDAHO POWER COMPANY'S SECOND SUPPLEMENTAL RESPONSE TO
THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF upon the
following named parties by the method indicated betow, and addressed to the following:
Gommission Staff
Edward Jewell
Deputy Attorney General
ldaho Public Utilities Commission
47 2 W est Wash ington Street (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
X Hand Delivered
_U.S. Mai!
_Overnight Mail
FAXX E-mail edward.iewel uc.idaho.oov
ldaho Conseruation League
Benjamin J. Otto
ldaho Conservation League
710 North 6th Street
Boise, ldaho 83702
_Hand DeliveredX U.S. Mail
_Overnight Mail
_FAXX E-mail [e-mail]
Christa Bearry, Legal
IDAHO POWER COMPANY'S SECOND SUPPLEIUIENTAL RESPONSE TO
THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 4