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HomeMy WebLinkAbout20200306Staff 1-2 to IPC.pdfEDWARD JEWELL DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE,IDAHO 83720-0074 (208)334-0314 '?E IDAHO BAR NO.10446 Street Address for Express Mail: 11331 W CHINDEN BVLD,BLDG 8,SUITE 201-A BOISE,ID 83714 Attorneyfor the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF )IDAHO POWER FOR A VALIDATED )CASE NO.IPC-E-19-18 ECONOMIC CLOSURE DATE FOR NORTH )VALMY POWER PLANT UNIT 2 )FIRST PRODUCTION )REQUESTOF THE )COMMISSION STAFF TO )IDAHO POWER COMPANY The Staff of the Idaho Public Utilities Commission,by and through its attorney of record, Edward Jewell,Deputy AttorneyGeneral,request that Idaho Power Company (Company)provide the followingdocuments and information as soon as possible,or by FRIDAY,MARCH 27,2020. This Production Request is continuing,and the Company is requested to provide,by way of supplementaryresponses,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,supporting workpapers that provide detail or are the source of information used in calculations.The Company 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.Reference IDAPA 31.01.01.228. FIRST PRODUCTION REQUEST TO IDAHO POWER 1 MARCH 6,2020 In addition to the written copies provided as response to the questions,please provide all Excel and electronic files on CD with formulas activated. The justification provided in the Company's Application for a December 31,2025,Valmy Unit 2 closure date is no longer valid given that the modeled analysis provided in this filing was completed prior to:1)Idaho Power determining that the Long Term Capacity Expansion(LTCE) functionalitywas not a feasible method for ensuring that the portfolios it produced were least-cost, least-risk portfolios in Idaho Power's system;and 2)because "Idaho Power identified eight modifications to its modeling inputs to ensure more accurate modeling results."(See Amended 2019 IRP,p.2).Given that the Company no longer has confidence in the LTCE model's results, which was used to produce Analysis Numbers 1 and 3 described in this filing (See Application,pp. 3-5),Staff requests dispatch model runs and cost comparisons similar in method to the Company's Number 2 analysis,but using updated input assumptions included in the Amended 2019 IRP,and the full costs and savings of the Framework Agreement.Each of these comparisons are described below. REQUESTNO.1:Please provide the Net Present Value (NPV)difference and an annual breakdown of the cost and benefit value streams (capital,fixed operation and maintenance,Net Power Supply Expense,etc.)used to calculate the NPV differences,between the followingamended IRP portfolios and alternative futures: a.the IRP "Preferred Portfolio"with a Valmy Unit 2 shutdown date of December 31, 2025 and the same portfolio using a Valmy Unit 2 shutdown date of December 31, 2024 using "planning"natural gas and "planning"CO2 assumptions. b.the IRP "Preferred Portfolio"with a Valmy Unit 2 shutdown date of December 31, 2025 and the same portfolio using a Valmy Unit 2 shutdown date of December 31, 2023 using "planning"natural gas and "planning"CO2 assumptions. c.the IRP "Preferred Portfolio"with a Valmy Unit 2 shutdown date of December 31, 2025 and the same portfolio using a Valmy Unit 2 shutdown date of December 31, 2024 using "low"natural gas and "high"CO2 assumptions. FIRST PRODUCTION REQUEST TO IDAHO POWER 2 MARCH 6,2020 d.the IRP "Preferred Portfolio"with a Valmy Unit 2 shutdown date of December 31, 2025 and the same portfolio using a Valmy Unit 2 shutdown date of December 31, 2023 using "low"natural gas and "high"CO2 assumptions. e.the least cost,least risk IRP Portfolio without the Boardman to Hemingway Transmission Project using a Valmy Unit 2 shutdown date of December 31,2025 and the same portfolio with a Valmy Unit 2 shutdown date of December 31,2024 using "planning"natural gas and "planning"CO2 assumptions. f.the least cost,least risk IRP Portfolio without the Boardman to Hemingway Transmission Project using a Valmy Unit 2 shutdown date of December 31,2025 and the same portfolio with a Valmy Unit 2 shutdown date of December 31,2023 using "planning"natural gas and "planning"CO2 assumptions. g.the least cost,least risk IRP Portfolio without the Boardman to Hemingway Transmission Project using a Valmy Unit 2 shutdown date of December 31,2025 and the same portfolio with a ValmyUnit 2 shutdown date of December 31,2024 using "low"natural gas and "high"CO2 assumptions. h.the least cost,least risk IRP Portfolio without the Boardman to Hemingway Transmission Project"using a Valmy Unit 2 shutdown date of December 31,2025 and the same portfolio with a Valmy Unit 2 shutdown date of December 31,2023 using "low"natural gas and "high"CO2 assumptions. REQUESTNO.2:Does an earlier shutdown of the Valmy Unit 2 violate any system reliability constraints in any of the portfolios requested to be modeled above?If reliability constraints are violated by closing Valmy Unit 2 earlier than December 31,2025,please provide evidence/justification that operating Unit 2 until the end of 2025 is the least cost alternative. DATED at Boise,Idaho,this Ú¾day of March 2020. Edward Jewel Deputy Atto y General i:umise:prodreq/ipcel9.18ejrk prod reql FIRST PRODUCTION REQUEST TO IDAHO POWER 3 MARCH 6,2020 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 6th DAY OF MARCH 2020,SERVED THE FOREGOING FIRST PRODUCTION REQUESTOF THE COMMISSION STAFFTOIDAHOPOWERCOMPANY,IN CASE NO.IPC-E-19-18,BY MAILING A COPY THEREOF,POSTAGE PREPAID,TO THE FOLLOWING: LISA D NORDSTROM MATT LARKIN REGULATORY DOCKETS IDAHO POWER COMPANY IDAHO POWER COMPANY PO BOX 70 PO BOX 70 BOISE ID 83707-0070 BOISE ID 83707-0070 E-mail:mlarkin@idahopower.com E-mail:lnordstrom@idahopower.com dockets@idahopower.com BENJAMIN J OTTO ID CONSERVATION LEAGUE 710 N 6TH ST BOISE ID 83702 E-mail:botto idahoconservation.org SE0RËTA Y CERTIFICATE OF SERVICE