20190508IPC to Staff Supplemental 14-16.pdf

RECEIVED
:019 HAY -8 Pll lr: 35
3Iffi*.
An IDACORP Company
JULIA A. HILTON
Senior Counsel
ih i ![e-mail]
,,,,],riff boiolffi l8 t' t*
May 8, 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 Supplementa! Response to the Third 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 Supplementa! Response to the Third Production Request of the
Commission Staff.
Very truly yours
ia A.n
JAH:csb
Enclosures
1221 W. ldaho 5t. (83702)
P.O. Box 70
Boise, lD 83707
JULIA A. HILTON (lSB No. 7740)
LISA D. NORDSTROM (lSB No. 5733)
Idaho Power Company
1221\Nest Idaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
i h i lton@ idahopower. com
I no rdstrom @ ida h opowe r. co m
RECEIVED
i,$19 t{Ay -g pil t: 35
,.' rl?ifisctulfrh | 8r, o *
Attorneys for ldaho Power Company
BEFORE THE IDAHO 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
)
)
)
)
)
)
)
)
)
CASE NO. IPC-E-19-08
IDAHO POWER COMPANY'S
SUPPLEMENTAL RESPONSE
TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION
STAFF
COMES NOW, ldaho Power Company ("ldaho Power" or "Company") and
supplements its response to the Third Production Request of the Commission Staff to
ldaho Power Company dated May 1 ,2019, as follows:
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE TO
THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 1
REQUEST NO. 14: Please explain why the 2017 budgeted amount of $24,185
for the Valmy Unit 1 'TWIP lnstall" (Project No.27467689) is significantly less than the
actual cost of $274,822 shown in Exhibit No. 3.
SUPPLEMENTAL RESPONSE TO REQUEST NO. 14: Pursuant to an oral
request made bythe ldaho Public Utilities Commission Staff ("Staff') at a May6,2019,
meeting between the Company, Staff, and the ldaho Conservation League, ldaho
Power is providing the following information with regard to the Company's processes for
monitoring budget-to-actual variances for capital projects at the North Valmy power
plant ("Valmy").
Generally speaking, Idaho Power has established guidelines at Valmy to allow
the plant to manage the capital budget as needed and directed by the plant manager,
without exceeding the yearly budget, or adding large projects without authorization by
the partnership. These guidelines provide the appropriate level of oversight while
allowing the plant operator to practically manage the plant and any variances that may
occur throughout the budget year. The following guidelines are in place to monitor
capital expenditures at Valmy:
. lf the capital forecast is greater than the capital budget by more than
$100,000 (ldaho Power share), it will be reviewed and authorized in writing.
. Any time an individual capital project with a value greater than $1
million (current budget year, 100 percent partnership share) is expected to exceed the
current year original budget by 20 percent, it will be reviewed and authorized in writing
prior to starting or continuing.
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE TO
THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 2
. All neWunbudgeted capital projects larger than $1,000,000 (100
percent partnership share) will be reviewed and authorized in writing prior to starting the
project.
lndividual capital prolect variances are discussed between the partnership during
ownership meetings and other meetings as directed by the partnership. NV Energy
does not formally provide budget versus actual variance explanations at the project
level on a routine or scheduled basis.
ln addition to the guidelines, NV Energy produces an Authorization for
Expenditures ("AFE") request for all capital projects. AFEs include the project title, date,
project manager, description and purpose of the expenditure, cost and budget
information, along with various other information to provide support for the project. lf
the project is expected to exceed the AFE amount by either 10 percent or $100,000, a
supplemental AFE is required. Currently, ldaho Power provides authorization to NV
Energy of all AFEs and supplemental AFEs for each project. ldaho Power has
requested that no projects begin, and the budget may not be exceeded, unless the AFE
is approved by both NV Energy and ldaho Power.
Please see the attached AFE dated June 28, 2016, and supplemental AFE dated
September 21, 2017, associated with the Turbine Water lnduction Protection ('TWIP')
system installation on Unit 1.
!n addition to the AFEs, the TWIP system installation on Unit 1 was discussed
during three ownership meetings. A copy of the October 13, 2016, July 27, 2017, and
September 26, 2017, meeting minutes are available for review at the Company's
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE TO
THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF.3
corporate headquarters. Please contact Tami White at [phone] or Camilla
McClusky at [phone] to schedule a time to review the requested information.
Lastly, in addition to the plant-specific guidelines detailed above, ldaho Power
performs holistic budget reviews on a quarterly basis. This includes capital
expenditures at all of the Company's facilities (including Valmy) and therefore provides
an additional review process through which the Company monitors its capital spend at
Valmy.
The supplemental response to this Request is sponsored by John Carstensen,
Joint Projects Leader, ldaho Power Company.
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE TO
THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 4
REQUEST NO. 15: Please explain why the 2015116 budgeted amount of
$287,575 for the Valmy Unit 1 "Clarifier Recirculation Drives" (Project No. 27430166) is
significantly less than the actual cost of $541,177 shown in Exhibit No. 3.
SUPPLEMENTAL RESPONSE TO REQUEST NO. 15: A descri ption of the
guidelines to monitor capital expenditures at Valmy and the AFE request are provided in
the Company's supplemental response to Staffs Production Request No. 14. Please
\
see the attached AFE dated November 19, 2014, and the supplemental AFEs dated
December 1, 2015, and July 28, 2016, associated with the Unit 1 clarifier recirculation
drives project. ln addition to the AFEs, the Unit 1 clarifier recirculation drives project
was discussed during an ownership meeting on Apri|21,2016. A copy of the meeting
minutes is available for review at the Company's corporate headquarters. Please
contact Tami White at [phone] or Camilla McClusky at [phone] to
schedule a time to review the requested information.
The supplemental response to this Request is sponsored by John Carstensen,
Joint Projects Leader, ldaho Power Company.
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE TO
THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 5
REQUEST NO. 16: Please explain why the 2018 budgeted amount of $225,054
for the Valmy Unit 1 "Pulverizer Rebuild" (Project No. 27501116) is less than the actual
cost of $319,565 shown in Exhibit No. 3.
SUPPLEMENTAL RESPONSE TO REQUEST NO. 16: A description of the
guidelines to monitor capital expenditures at Valmy and the AFE request are provided in
the Company's supplemental response to Staffs Production Request No. 14. Please
see the attached AFE dated September 13, 2017, and the supplemental AFE dated
April 19,2018, associated with the Unit 1 pulverizer rebuild. In addition to the AFE, the
Unit 1 pulverizer rebuild was discussed during an ownership meeting on May 3, 2018.
A copy of the meeting minutes is available for review at the Company's corporate
headquarters. Please contact Tami White at [phone] or Camilla McClusky at
[phone] to schedule a time to review the requested information.
The supplemental response to this Request is sponsored by John Carstensen,
Joint Projects Leader, ldaho Power Company.
DATED at Boise, ldaho, this 8th day of May 2019.
A. HI N
Attorney fo ldaho Power Company
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE TO
THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF.6
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 8th day of May 2019 I served a true and correct
copy of IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE COMMISSION STAFF upon the following named
parties by the method indicated below, and addressed to the following:
Gommission Staff
Edward Jewell
Deputy Attorney General
!daho Public Utilities Commission
472 West Washington Street (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
X Hand Delivered
_U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
Idaho Conservation League
Benjamin J. Otto
ldaho Conservation League
710 North 6th Street
Boise, ldaho 83702
_Hand DeliveredX U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
Christa Bearry,
IDAHO POWER COMPANY'S SUPPLEMENTAL RESPONSE TO
THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 7
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. IPC-E-I9-08
IDAHO POWER COMPANY
SUPPLEMENTAL RESPONSE TO
STAFF'S PRODUCTION REQUEST NO. 14
XIUVEneTBy AuthorizationForExpenditures o10 I
hformstlor AFE Type Capitrt
hojcctTirk
Brlsincas UDlt NrrDc
Dcprbnclt NsEc
FERC Accout Narr
Vl'l'WlP, lrsuu Proj. Code vAI !,15
Eucrg Supply BUC0& I
Dcd. Code pt20
312 ..9lm0t8Projaol Sbrt Drls
Projcct Mer
8OI|.^ER{ALVES ,' AUxlLt{RY STEAM CO,HTROL SYSTEM.!00.00% AccL Co&
6r'1,2016 l!.Scpico Dsto tllAolt Cottrpbri fut
Ross, Dcsris B Compmy AfE lndcx Nurntor vAl I'lJ-l
aod Scc Autbsibtion for
2 ' AFE Cost Informaoon 3 - Budgct lnformrtlon
ATE
Orlgir.l AFE
SuplanorAl rdditi,ons
TstEl AFE oo.r (@1001/6)
Lsbor (10, l l, 12)
Storca (50, 59)
Non{loek loo& (51)
Outsidc rcn'ic€i (40)
Puretrr.s (54, 55. 55, 70)
Expases (75)
Ohcr (81, 97, 99)
L^rbor ovcrtesds (10, J I )
Trl!ryo'tstisD (60)
Malrrial ov.rtads (52, 53)
A&6 sd C&pr'lsl sreharyc (32, 13)
ClACrBining (8r,86)
Srb.orel Crpirrl Plm
Finrncing (t0) AIUDC
Cl,AC.,Brlling rcvorrel for 100% cost
Cootiagcmy
Totrl AFE cotl (@100%)
s s 364,395
.__ 7t49U
(0)
t t6d395
EUDGET
CunBBt )e!r aapitil pleo
Olhar y?rrr oaltrl plao
AFUDC
CIACrBiUint rgvrmal
Torl Amrled Bsdgct (@100%)
$ 200,000
1,819
(100,000)
t5,998 s 201t59
(l?r,00o)
r 17J.000@ AfE (0YtrYIJdcr Bud8ct r (r52J361
r4J95
r 75,000
E 36{395
4 - Erpcrdlturc $cbcdulc @ Not vlth AFUDC
Totrl
5 5
tl .it'l/, ,lr,ll.i
cdt ria, Thir pmjcct will rcsuh h r dcceartd pobabllity of duugc or llilut of lht rtam tntinc due to r wrlrr inductioo crrcnl.
ry8ten not m*l
Yerr Irt O(r 2nd Ott 3rd Otr 4rD olr
Pris s t t s
ml6 s t 5,,1{tl s t.to,t ,fil,rl2
7At',l 3 12.000 t 12.000 $5.000
2018 24,000 3 24.S)0 s 9.079 c
Bevood t I $s
Tord Caollal Totrl E,pGD&
ss l(n.8t5s 2t@t r?,fr9
5
s
(Corponenu and lT dnrc6/ impocts)Drle krdcr/Supsrvisor Dale
(Olgpirg contrrctual comrnimmt)Drt,Dat
(P.vironmentrl imgecls)Drtc
Regulatioo (> slm)DrL
F tlml D.lc Daie
DfiePSSm anrl lcise componsob (aoy valur))Dale cEo
Darc $38,2016
valDy
XtUVEnergy Authorizerion For Expenditures
I - Gtnerrl Informrtlon
Projcct Tltlc
Busincss Unit N.ms
D€partEcnt NaEr
FERC Accoun( Nsmo
Pmject Start Date
Projcct Mgr
AfE TYPE Srrpplq"otal Drte
Pmj. Code
BU Codc
ry.Code
AccL Code
wm|?:
vAll45VI TWIP.Instail
gucre/ Srrppty I
Valmy Dl20
BOILER.VALVES I EXTRACTION SYSTEM#100.00%3t2
ln-Senrice Datc lA4nOlT Completc Dale l2t1l/20l7
AFE InduNuober vAll45-2CoognnyNorth
Outage Requircd (YedNo): No fu 1S3p 6 fsft this poject will cxtsad the ouage? (YesNo):No
E[d dctails. Sce Authorizatirn for
Sulryhmeurl is for iocrcascd coet to proctrs and hsrall the new molor oper.tsd ulvce, A rec€ot audi( of the Vatory unit I stram tlrbilc wrlcr hduction
Fotccd0tr systsmhrs dcterminod &at the existing potecti@ docs aot mcet tbe ASME TDPn-2013 critcria. This poject will rcsult ir a decreascd pobability
of &mrge or frilrue of the steam trbiac due to a watcr iaducli@ ereot.
3 - Budgc( lnformrtlon
AFE
Origioal AfE
Spphncaul additioos
Total AFE Appoval Cost
Dsnnis B
(scludca molilgBy ad CIAC rcvc{r.t)
BUDGET
Cunot year approvcd capitrl plao (Fall 2016 Ptan)
Resllocatcd AEout
Otler ycars capiral phn
AFUDC
s
s
$
3
s
4l
157
Total Approvcd Budget
AFE (Ovcr)AJndcr Bodgct
AUoc.tGd Amouot
Plcaso itrdicate BID bci4 tansfcncd from ard tte bal dollrs ransftned
Budgct lD AEt Tnndcrrod
vAt r40
fotrl Trrnrfcrrad
Total
TotelCasful Totel Erocnec
3 $3 107,565s 203,781
s
Is 3l I,346
$
$
s
s
4
Rsfcreucc Onb: Cost @ 100% with Partncr Billing aod
without AFUDC: $ 6031Ia"00
cttdil only if rdrancea aad prtpopneatr crcced custqm
2E,7EE
1,909
(301,70?)
ttt346
actusl cosB and oomilitmats for gld scrvices.
2,tg
188
489,07t
3,393
7,336
499
69,859
$301,707
9,639
$
2 - AFE Cort luformrtlon
l l, 12)
(50, 59)
goo& (51)
sewicrs (40)
(s4,55,56, 70)
u5l
(81, 97,99)
(30, 3 l)
(60)
overhcads (52,53)
rud Capital surchrrge (32, 33)
Bi[hs
(8s,86).
Rcvrrsat (ifrcquired)
AFE Approvd Coet
(@Ner)
(80)AFUDC
Yerr lrt Otr 2rd Otr 3rd Otr 4th Otr
Prbr $s $t
2016 $s I 27903 I 79,62
2017 $ il5.90l r $ l7B7E s 48J38 s 152,966
2018 t $$$
Bq'ond $$$3
s
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. !PC-E-l9-09
IDAHO POWER COMPANY
SUPPLEMENTAL RESPONSE TO
STAFF'S PRODUCTION REQUEST NO. 15
{Ss
IUVEnergy-AUTHORIZATION FOR EXPENDITURES
I - General Informatlon
Project Title
Business Unit Nante
Department Name
FERC Account Name
AFE Type Capital
Vl Clarificr Recirculation Drive, Replace
DEte llllgB0l4
Proj. code -j'€ol+-YA \ \Zq
Generation & Eoergy Supply BL.l Code GEN
Dept. Code D120
Acct. Code 314
Valmy
TURBOGENERATOR UNTTS
Proj. Stat Date 3lZ/2A15 Complete Date 4lt8,not6
Project Mgr M.Hartman AFE lndex Number
Description and purpose ofexpenditure (Attach supporting details, See Authorization lor Expendrtures Procedures.)
Tlrc rcirculotior system is ir n€d of s modiriGtion ml'q bc6 mtgisl rrrce qigiml installslion,
I lud 2. 'fhc clarificr will cnjoy grcrtcr trrnc ir scryirc and th. wetcr qulity wiJl irnprovc 0s o dircct rcaull, Ilointonucc ofahc systcm \vill be reduccd.
2 - AFE Cost Information (@ 100%)
Labor(10,11, l2)
Stores (50, 52, 59)
Non-stock goods (51)
Outside services (40)
Purchases (53, 54, 55, 56, 70)
Expenses (75)
Other (81,97,99)
Labor Overheads (30, 3 I )
Transportation (60)
Project supervision (33)
Ceneral overhead (32)
Toral AFE cost (@ 100%)
Financing (80) AFUDC
l'otai $
4 - Expenditure Schedule (@NET)
5 - Technicrl
$$
3 - Budgct Information
OriginalAFE (@ 100%)
Supplernental addition 1@l 00%)
ToralAFE (@ 100%)
Partnership (NVE %) / CIAC
Total AFE (@ Net)
Less:
Budget current year (@NET)
Budget other yea(s) (@NE'l')
Total approved budget (@ Net)
4t,920
3s,000 s0%
ztJ,960
$20,006
1,285 242,574
1,218 262,580
$
$
37,503.00
4.416.97
4t .9t9.97 (Over)under budget (@ Net)$24t,620
Total Capital
1S$ 37,503 $
$$
$$
$$
Year lst Qtr 2nd Qtr 3rd Qtr 4th Qtr
Prior $$$$
20i 5 $ 1.500 $ 10,000 s 7.252 $
2A16 $$$$
2017 $$$$
Beyond $$$$
(ComponeBts and lT stra{eB/ impacls)D.le l=ader/Supcwisor (up to S25k)Date
{Ongoing contractual commiments)DIte (up to $t00k)Dare
Environmenlal (En\ironnlcnlal impac(s)Darc (up ro $ lm)Date
VP Rcgulation (> $lm)Datc (up to $-5rn)Date
P $lm)Dole Ite$id!flr (up to S25m)Datc
(> S5m and lqse componcnts (any valuc))Date !\lullC CEO (: S25m)Date
41,920
SNVEnergy AUTEOR-UAATION FOR EXPENDIIURES 9gSc"f .{ tp r"O t
I - Gcnerel Informrtioo
Project Title
Business Unit Name
Depadment Narne
FERC Account Name
Project Stsrt Dato
AFE Typc Supplemental
Vl Clarilier Recirculation Drive, Replace
Generation & Energy Supply
Valmy
TURBOGENERATOR UNITS
lu20ts In-Service Date l0nE/2A16
$26,000
444,016
35
2t,684
33,596
(262"58r)
262,580.50
19,524 AFE (Over)under budget
262,s8t
Date wtn,Ls
Budgct lD vAl124
BU Code GEN
Project Mgr Lance Foreman Company spp AFE lndex Number vAn24-2
Desoription and purpose ofexpenditure (Attach supporting details. See Authorization for Expenditures Procedures.)
2 - AFE Cost loformation (@ 100%)
Dcpt. Code
Acct. Code
Completc Date
Dl20
314
$ 41,920
$ 502,765
$ 544,68s
t 485.149
$-
!7,130
$-
$ 487,479
Labor(10, ll, 12)
Stores (50, 52, 59)
Non-stock goods (51)
Outside sewices (40)
Purchases (53, 54, 55, 56, 70)
Expenses (75)
Ofter (81, 97, 99)
Labor Overheads (30, 3 I )'Ilansportation (60)
A&O and Capital surchargc (32,33)
CtAClBiUing (E5, 86)
Subtotrl Crpltel Piau
!inancing (80) AFUDC
CIAC/Billing reversal tbr l0O% cost
Contiogency
Total AFII cost (@ 100%)
3 - Budget lnformrtion
AFE
Original AFE (@ 100%)
S upplemental additions (@l oOW
Total AFE (@ 100%)
Budget
Current year Capital plan (Fall 2015 Approved Plan)
Other year Capital plan
AFUDC
CIACIBilling rcversal
Total approved budget (@ 100%)
$
$544,684.73
$ (57,206)
'I'otel Capitrl Erpense (O&M)
$$
$ 40,012 $
$ 4E5,149 $
$$
$$
4 - Expcnditure Schedule (@l0O%) - without AFUDC
5 - Tcchnicrl 6-
componcolr src o ned ofrcpl.ccmcnt md updatin! duc to sonosrot .dd olhc. snvi.onncntal daorgc Thc Rrkc urmbly rr m[lrng prrts ad E {t nccd ofrcpsir od a oodifie8lion to allow
to lE.forE u it w dcrigrcd Thc vailour chcmical fccd pprng comp@nb ra ro di$cpnir ud m occd of rcplac@cnt Thcrc gc o0!rr @porilt! thst hayr $vcrc wmoo &tivity 6rt rcquira
whcn thc chcmical fccd lina rc rcrtwcd as rcquircd Thir prcjcct wilt alBo hllp maobin unit .cliability rcdE. urplanord outr&c .vant!
lo systcm
Ycrr lst Qtr 2nd Qtr 3rd Qtr 4th Qtr
Prior $$$$
2015 $$$ 10,000 $ 30.012
2016 $ 200.000 $ 200,000 $ 85,149 $
2011 $$$$
Beyond $$$$
Lcrda/Supcnisor (up to t25k Eud. 32 5K Uobud)Dat€(Componats ud [T srrarcgy imprcts)Dals
(Otrgoing coutmctual wmiElutr)DNte (up ro $100k Bud, $l0k Unbud)Date
(Eoviromeotel impacts)Ostt (up to $Ln Bud, Il00K Uabud)Date
VP Rcgulatim (> S lm)Drtc l2UDbud)
(> Slm)Dalc to $25m $5M Unbud)Date
(:'l5rn ud lcasc cmpoucots (rny valuc))Datc CEQ (Unlimilcd)Datc
10128120t6
YNVEnergy Authorization For Expenditures
| - Gencrel Informrtion
ProJect Title
Busrness Unit Name
Department Name
FFIRC Account Name
AFE Type Caprtal Dale
Prol Code
Bti Code
Dept Code
Acct Code
Cornplete Date
7/28t2016
vAr i24
8
Dt20
12^5n016
vA I I 24-l
$544,685
614,46']
s r,r59,152
Vl Clarifier Recirculation Drive, Replace
Energy Supply
Valrnr
CO.JLING SYS TREATMENT SYSTEM / CLARIFIER.IOO OO9O
ProJect Start Date
Prqect Mgr
2/t t2015 In-Servrce Date I t/10/20t6
Bob I lus(cd Company SPPCO AFE lndex Numher
details Scc Authorrzation for rcs Procedures
I 6,500
3 - Bndget lnformslion
AFE
Otigrnal AFti
Supplemental addrtions
Total rlFIj cost (@r100%)1.051,412
l_1.05 I
BUT'GET
Currenl year capital plan (Fall 20 I 5 Approved Plan)
Other years caprtal plan (201 5 Actuals)
AFt,,DC
CIAC/Billing reversal
Total Approved Budget (@ I 00%)
s73,040 AFI) (fh'er)/ttndcr Budgct
r,r 59,r 52
Total approrcd AFE cost ot $ I,l 59.1 52 ( 1009o) consists ol thc
rpprovcd AFE amount ot I 1,146,080 and $ t3,0? I AFUDC.
ron and
2 - AFE Cost lnformstion
Labor(10. I l, 12)
Stores (50, 59)
Non-stock goods (5 | )
()utsrde services (40)
Purchascs (54. 55. 56, 70)
Expenses (75 )
Other (81. 97,99)
Labor overhcads (J0,3 I )
Transportatron (60)
[\'lalerial overheads (52, 5J)
A&G and Capital surcharge (32, 3J)
CIAC/Billing (85. 86)
Sublolrl Capite! Phn
Frnancrng (80) AFIJDC
CIAC/Bi|ling reversal for 100% cost
Contingency
Totrl AFf, cosl (@100o/o)
ol'rlrrrc Attach
$
s 485. i 49
I8,015
2,12t
s
lz6t.s92)
525,90{
$ (613,248)
Totrl CNpit|l Totel Expensr
$
$t9.4 t0
$ 566,?01
S
$
s 586.t ll S
r 1.071
i71,042
"l - Erpenditure Schedule (@ Net with AFt'DC
5 - Tcchnical
Tolrl
CIR ?t6" €
7/z t/r s
upplemental is for newly discovered repair work rs required to complete and retum the Valmy unit I clanfier to service Work identified includes: Tank
per the API 653 inspectron, Fxisting lced well modrfication in order to support the new drafl tube, Engineering analysis o[the bridge structure (bridge
supports all oJ the n$v recirculation drrve equipment as well as the feed uell); Bridge s{ructural stiflbning/rcinforcemenl, Bridge structural lead paint
ahatement (requlred to rnstall strtlenrng/terntbrcement malenal), Additional repairs to the arrchor channel (identrfied during the tank lnspecllon) however
additional corrosion/erosron was lbund urrder and behrod the seal nnB once rt was removed, i 40 sq lt ol-addrtronal intemal tank coating required due to the
nccd tank reparrs, lnstallation ol'requrred hand rails st drive skad loca(lon (personnel protcct,on)i Paintlng of hand rails, lnstallation ofthe drive skld support
hcamr, Painlrng ol'the drrve skid support beams
Yerr lst Otr 2nd Otr 3rd 0lr dlh Otr
Prror $$5 s
201 5 $2.635 s 3.445 5 61'7 S t2.693
20t6 s 907 $ 120.95,1 s 32',7.129 s I t'l;l t4
201 7 $$$$
Bevond s $$$
6
lT (Components and lT strategy impacts)Date DateLeader/Supervrsor
[-egal (Ongorng cont(actual commitnlenls)Date DateManager
Envaronmental (Finvironmental impacts)Date u[rve l)ate
VP Regulation (> $ I m)Date
(> $lm)Date Dale
(any value))BHE CEO Date
I r(.1 l.r )lzz 1 r'
64,058
(57r.042 )
BEFORE THE
IDAHO PUBLIG UTILITIES GOMMISSION
cAsE NO. IPC-E-I9-08
IDAHO POWER COMPANY
SUPPLEMENTAL RESPONSE TO
STAFF'S PRODUCTION REQUEST NO. 16
XlUyEnergy Authortzedon For Expenditures
I - Gcnerrl Irforodor
Prujcct TiUc
Depumcnt Nrnc
FERC AccomtNrms
Prcjcct Slai Dde
AFE TYPE Casitrl Dac
Proj. Code
BU Cod!
Dcpt. Codc
AsLCode
xl,/rpt?
vAl040Vl Pulverizc "8" Major Robuild 2Ol7
Eoergy Sryply 8
Vahy Dl20
312
.vAr0+0-t
No
Pulvaizcr Equipr6nt
utnotE In-Srvicc Drtc 5tfinut Complctc Drt 6/I20lt
Pmjcor Mer Reimbsyev, M[hstd Coopany Nonh AIE Iodex lt{umbcr
Is &ac a risk this projcct will extrDd the outrge? (Ycs/No):
Total Tnntfrrred
Ouuge RGquiEd (YesNo):No
ad Soc for
Pulvcdren ore rrilizcd to grind coal o fuc &st bcforc bciog truspoilod !o hrt€r fionts. This proccss wcan out roll whccl asssEblies, lablc grindilg $€8D.nBr
and iarcrior of pulv6iz6 oquiptrcot. The normel opcratiog life cycle of a Vahy utft I puhcrircr is roughly I E o 24 months. i.outine inspcctions at 3 ,000 hour
rod roquircd uaintcoancc ar pcrfonncd to asurc thc mmimrm lifc of th pulvcriza rcbuild. Maja ovcriaul includcs rqllacements of roll whccls, ak rcah cosl
rhict&, boarings, wcar rcsistatrt ccramic lincrr, olascificr vooo rcplaocrneot, coal feodcr werr componeot redacemot, garbor urd lub,ricrtion rystem
rcfirbighoml spring irme wear plate rcphceoat, pyrits plow rc'pllccoat, rnd othcr arsocirtcd rvolding od rc-buildiog rs occiM duo io aosions lo the
glrlvaizcr housiog md assrrciatcd oquipmsnt. Tbe rcbuild resulu in a trdvcriza is acr oew condition. Ttc bcncfit ofthis projcct is the contiaued rclisblc
optretioo of Vaby unit I for supplyinS pow€r to ow cutomss. Moinhiniog rhe equipmot h good worti4 condition ruults ia reliabb sod €fficiant po'lfcr
gEnr'ffioo, tfthe pulvcrizcr condition d€tEriorrlcs &c units ef6cicocy is dccrcascd thlrs iocrcrsing the fuel usagc and pow€r cost3 to lhe custotrErs. If&e unit
crnnot operatc &ctr it oust b6 rcplac€d with higba cost power.
3 - Brdg€t htormrdon
A1'E
Original AFE
Supplcocntel adrlitixr
Total A.FE Al,prnval Cost
BUDGET
Currcnt 1ar approvod capiul plan
Reatlocatcd Amount
Otba }lcds capiBl pb (Fall 2016 Approvcd Plan)221
ATUDC
Total Approvcd Brdget
AFE (Ovcr)furdcr Budg?a
Allocated Aaouot
I
Plcage indieto BID bcing tranrfcrrcd from aod tho total rlollan transfemd
Budgct lD Arnt Tnnrfcrrtd
VA2.O?E
3
$
$
$
4 - Erpcndltrre Schtdule (croludcs morhgacy ud CLAC noml)
Reftlure Only: Cost @ l00o/o with Paracr Billing and
withou AFUDC: I 5t0'064
crcdit only lf edvsncer and prepaymmts rxcosd culm€r
for eotud cosls 8d corNnit8rntg for tmdr and wices,
- AI'E Cofi Informrtion
r,250
t 4,400
3J0,000
IE0,000
3.0,10
3,875
37,499
$290 032
1,026
$293,05t
toods (5 I )
servicls (,{0)
55, 56, 70)
(7s)
(81,9?,99)
(30,3l)
(60)
ovatcads (52, 53)
lld C.pit8l $xcbat8c (32,33)
Billing
(85, 86).
Rcvcoal (ifrcquired)
AFE ApprL.l Cort
(r0. [, t2)
(50.5e)
(@ Nct)
(80)AFUDC
Ycer lrt Otr 2rd Qlr 3rd Qrr 'llt Qtr
Prior s 3 $3
2018 $u6,01s 3 66.9E1 $i
20t9 $$$$
2020 $$$s
Bsmad $$$$
Toul C.Dltrl Totr! Erp.Dtc
$t
$ 293.05E
$
s
$$ 293.058Told
$
s
---_-* . * (290,012)
!(NVEnergy Authorization For Expenditures
I - General Informatioo
Projmt Title
Busincss Unit Namc
Depanment Nme
FERC Account Name
Projrct S(il1 Dale
AFE TYPE Supplemcntal Date {n9n0l8'
V I Pulverizer "8" Major Rcbuild 2017 Proj. Codc
BU Code
Dept Code
Acct. Code
Completc Date
vAl040
8
Dl00
3t2
6nt20t8
vAr040-2
Energy Suooly
VP Power Ccneration
fulverizer Equipment
UUz0lE In-Seryice Dare 5179t20t8
Co.puny-}g1!- AFEIndexNumbcr
Is thcrc a risk this projccr will cxtcnd thc ourage? (YcVNo)'
Projecr Mgr Reimbaycv, Mahsud
Outagc Rcquircd (Yes/No)
md of
NoYcs
dctails- Sre Authorization for
Totsl Trrnslerred
4 - Expenditun Schcdule (qcludcs conriogcncy ed CIAC revgsal)
Year lst Otr 2nd Otr 3rd Otr 41h Qt.
Prior s $$$
201 8 s 320.024 $ 5,649 $$
2419 $$s s
2020 $s $$
Beyond $s $$
3 - Budget Infomation
AF'E
Original AFE
Supplcmcntal additions
Total AFE Apprcval Cost
32,6l.5
s 325.6?.1
BUDGET
Curcn( ycil approved capi(al plan 225.054
Rcallocatcd Amouol
Other years capital plm
AI'IJDC
Toul Approved Budget
AFE (Over)/Under Budget
Allocated Amount
Plcasc indicatc BII) bcing transfcrrcd from and thc total dolhrs transfcrcd
Budget ID Aml Trsnsferred
$-
Tol.al Capital Total Drpense
$$
$ 325"674
$
$
s
$ 32s,674
26
s
$
$
$
$
Supplcnmtal is for the additional cost of rcfirbishmmt of thc pulvcrizrr elatric motor (600hp) that had to bs rebuilt in ordcr to complete this prcject.
l,tllvcrirm ae utilizcd to grind coal lo fine dus( belore being transported [o bumer fronts. This process wcars out roll wheel ssemblies, table grinding
rcgmcnl.(, and interior of pulvcrizer cquipmcnt The nomal operating lifc cyclc of a Valmy unit I pulverizer is roughly I8 to 24 months. Routine inspcctions ar
3,($0 houm and required rnaintenance are perfomed to ensure the maimum life of rhe pulverizer rebuild. Major overhaul includcs rcplaccmcnrs o{ roll
whccls. air seals, coal shields, bearings, wear rcsistant ccramic lincrs, classifier vme replrcement. coal fe€der wear component replacement, gearbox and
hbricatron system refurhishmcnt, spring frmc wear plare replaccmcnt, pyrites plow rcpleement, and othcr assmiatcd wclding and rc-huilding as rreeded due
(o erosions to ihc pulvcrizcr housing and associaLcd cquipmcnt. Thc rcbuild rcsults in a puivcrizcr in ncar ncx condition.Thc bcncfit of lhis projcct is (hc
comiruq! rehablc operatiun o[Ytrlmy unit t [0r supplyjng power to our cus(omen- Maintairring rhe equipmenr in good working condition results in re]iable
and efficient power genera(ion. If the pulvcrizer condition dcteriorates the units cfficief,cy is dccreaed thus increasing the lucl usage and power msts to the
(l$torrf,N, If the unit canno( operate then it must be replaced with higher cost power.
I.abor(10. ll^ ll)
$torut (5t1.59)
fdln-sl(rk B{xd\ (J I )
Outsidc scwices (40)
Purchases (54, 55. 56,70)
Expenscs (75)
orher (8 1, 97, 99)
l:bor ovcrhcads (30, 3 I )
Transponation (60)
Material oYerheads (52, 53)
A&G aud Capit:rl surchargc (32, 33)
Putnership Billing
crAC (85. 86)a
Subbral (@ Net)
Financing (80) AFUDC
Contingency
CIAC Reversal (if required)
Total AFE Approvel Cost
For Refcrcncc Only: Cost @ 100% with Panocr Billint and wihout AFUDC
J 647,277
14,t71
(32 1, r 36)
4,538
$59.598
62,868
384,488
14,054
2,239
t9,946
44,945
$321,136
$325,fft4
l - A['Fl Cct lnfomation
Tolal