20200414IPC to Staff Supplemental Response 1.pdf

LISA D. NORDSTROM
Lead Counsel
[e-mail]

April 14, 2020

VIA ELECTRONIC FILING

Diane Hanian, Secretary
Idaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, Idaho 83714

Re: Case No. IPC-E-19-18
Validation of North Valmy Power Plant Unit 2 Closure in 2025
Idaho Power Company’s Supplemental Response to the First Production
Request of the Commission Staff

Dear Ms. Hanian:

Attached for electronic filing in the above matter is Idaho Power Company’s
Supplemental Response to the First Production Request of the Commission Staff
(Request No. 1).

If you have any questions about the enclosed documents, please do not hesitate to
contact me.

Very truly yours,

Lisa D. Nordstrom

LDN:kkt
EnclosureS
RECEIVED
2020April 14,PM4:37
IDAHO PUBLIC
UTILITIES COMMISSION
IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO
THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 1
LISA D. NORDSTROM (ISB No. 5733)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]

Attorney for Idaho Power Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF IDAHO POWER FOR A VALIDATED
ECONOMIC CLOSURE DATE FOR NORTH
VALMY POWER PLANT UNIT 2
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CASE NO. IPC-E-19-18

IDAHO POWER COMPANY’S
SUPPLEMENTAL RESPONSE
TO THE FIRST PRODUCTION
REQUEST OF THE
COMMISSION STAFF

COMES NOW, Idaho Power Company (“Idaho Power” or “Company”) and
supplements its response to the First Production Request of the Commission Staff to
Idaho Power Company dated March 6, 2020, as follows:

IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO
THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 2
REQUEST NO. 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 following amended 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.
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,
IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO
THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 3
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 Valmy Unit 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.
RESPONSE TO REQUEST NO. 1: Please see the attached file for an addendum
to the Company’s Response to Request No. 1.
The response to this Request is sponsored by Jared Hansen, Resource Planning
Leader, Idaho Power Company.
DATED at Boise, Idaho, this 14th day of April 2020.

LISA D. NORDSTROM
Attorney for Idaho Power Company

IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO
THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 4
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on this 14th day of April 2020, I served a true and correct
copy of the within and foregoing IDAHO POWER COMPANY’S SUPPLEMENTAL
RESPONSE TO THE FIRST PRODUCTION REQUEST OF COMMISSION STAFF upon
the following named parties by the method indicated below, and addressed to the
following:

Commission Staff
Edward Jewell
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-0074

Hand Delivered
U.S. Mail
Overnight Mail
FAX
X Email [e-mail]

Idaho Conservation League
Benjamin J. Otto
Idaho Conservation League
710 North 6th Street
Boise, Idaho 83702

U.S. Mail
Overnight Mail
FAX
X Email [e-mail]

Industrial Customers of Idaho Power
Peter J. Richardson
RICHARDSON ADAMS, PLLC
515 North 27th Street (83702)
P.O. Box 7218
Boise, Idaho 83707

Hand Delivered
U.S. Mail
Overnight Mail
FAX
X Email [e-mail]

Dr. Don Reading
6070 Hill Road
Boise, Idaho 83703
Hand Delivered
U.S. Mail
Overnight Mail
FAX
X Email [e-mail]

________________________________
Kimberly Towell, Executive Assistant
System Net Power Cost Bridger Unit Shutdown 2020 2021 2022 2023 2024 2025Unit Closure Scenario B2H Natural Gas CO2 Year Ending:$$$$$$Preferred Portfolio with Valmy Unit #2 shutdown end of 2025 With Planning Planning 458,428,000 487,660,000 497,899,000 503,807,000 524,606,000 551,048,000
With Planning Planning 458,428,000 487,660,000 497,899,000 503,807,000 524,606,000 551,048,000
With Low (planning)Hi 458,827,000 488,534,000 607,343,000 629,365,000 676,824,000 735,226,000
With Low (planning)Hi 458,827,000 488,534,000 607,343,000 629,365,000 676,824,000 735,226,000
Without Planning Planning 458,342,000 488,496,000 498,946,000 504,780,000 525,165,000 551,168,000
Without Planning Planning 458,342,000 488,496,000 498,946,000 504,780,000 525,165,000 551,168,000
Without Low (planning)Hi 458,342,000 488,499,000 606,220,000 626,643,000 678,718,000 742,852,000
Without Low (planning)Hi 458,342,000 488,499,000 606,220,000 626,643,000 678,718,000 742,852,000
Fixed Costs
Capital Fixed O&M Exit Fees Total Capital Fixed O&M Exit Fees Total Capital Fixed O&M Exit Fees Total Capital Fixed O&M Exit Fees Total Capital Fixed O&M Exit Fees Total Capital Fixed O&M Exit Fees Total2,107,624$ 1,437,000$ Note 3 3,544,624$ 2,326,614$ 1,143,000$ Note 3 3,469,614$ 2,622,820$ 809,000$ Note 3 3,431,820$ 2,623,208$ 490,000$ Note 3 3,113,208$ 2,326,324$ 234,000$ Note 3 2,560,324$ 1,844,743$ -$ -$ 1,844,743$ 2,107,624$ 1,437,000$ Note 3 3,544,624$ 2,326,614$ 1,143,000$ Note 3 3,469,614$ 2,622,820$ 809,000$ Note 3 3,431,820$ 2,623,208$ 490,000$ Note 3 3,113,208$ 2,326,324$ 234,000$ Note 3 2,560,324$ 1,844,743$ -$ -$ 1,844,743$
397,530,063$ 93,850,000$ -$ 491,380,063$ 396,118,455$ 101,165,000$ -$ 497,283,455$ 384,461,392$ 100,886,000$ -$ 485,347,392$ 367,749,015$ 88,108,000$ -$ 455,857,015$ 347,353,648$ 76,683,000$ -$ 424,036,648$ 328,321,591$ 82,181,000$ -$ 410,502,591$ 397,530,063$ 93,850,000$ -$ 491,380,063$ 396,118,455$ 101,165,000$ -$ 497,283,455$ 384,461,392$ 100,886,000$ -$ 485,347,392$ 367,749,015$ 88,108,000$ -$ 455,857,015$ 347,353,648$ 76,683,000$ -$ 424,036,648$ 328,321,591$ 82,181,000$ -$ 410,502,591$ 397,530,063$ 93,850,000$ -$ 491,380,063$ 396,118,455$ 101,165,000$ -$ 497,283,455$ 384,461,392$ 100,886,000$ -$ 485,347,392$ 367,749,015$ 88,108,000$ -$ 455,857,015$ 347,353,648$ 76,683,000$ -$ 424,036,648$ 328,321,591$ 82,181,000$ -$ 410,502,591$
System Net Power Cost Bridger Unit Shutdown 2020 2021 2022 2023 2024 2025Unit Closure Scenario B2H Natural Gas CO2 Year Ending:$$$$$$Preferred Portfolio with Valmy Unit #2 shutdown end of 2025 With Planning Planning 458,428,000 487,660,000 497,899,000 503,807,000 524,606,000 551,048,000 Preferred Portfolio with Valmy Unit #2 shutdown end of 2024 and With Planning Planning 458,428,000 487,660,000 497,898,000 525,347,000 543,990,000 569,017,000 Cost Difference - - (1,000) 21,540,000 19,384,000 17,969,000
Preferred Portfolio with Valmy Unit #2 shutdown end of 2025 With Planning Planning 458,428,000 487,660,000 497,899,000 503,807,000 524,606,000 551,048,000 Preferred Portfolio with Valmy Unit #2 shutdown end of 2023 and With Planning Planning 458,428,000 487,660,000 497,898,000 525,347,000 545,148,000 569,053,000 Cost Difference - - (1,000) 21,540,000 20,542,000 18,005,000
Preferred Portfolio with Valmy Unit #2 shutdown end of 2025 With Low (planning)Hi 458,827,000 488,534,000 607,343,000 629,365,000 676,824,000 735,226,000 Preferred Portfolio with Valmy Unit #2 shutdown end of 2024 and With Low (planning)Hi 458,428,000 487,666,000 606,742,000 652,281,000 702,082,000 767,169,000 Cost Difference (399,000) (868,000) (601,000) 22,916,000 25,258,000 31,943,000
Preferred Portfolio with Valmy Unit #2 shutdown end of 2025 With Low (planning)Hi 458,827,000 488,534,000 607,343,000 629,365,000 676,824,000 735,226,000 Preferred Portfolio with Valmy Unit #2 shutdown end of 2023 and With Low (planning)Hi 458,428,000 487,666,000 606,742,000 652,281,000 701,991,000 767,438,000 Cost Difference (399,000) (868,000) (601,000) 22,916,000 25,167,000 32,212,000
Preferred Portfolio with Valmy Unit #2 shutdown end of 2025 Without Planning PlanningPreferred Portfolio with Valmy Unit #2 shutdown end of 2024 and Without Planning PlanningCost Difference - - - - - -
Preferred Portfolio with Valmy Unit #2 shutdown end of 2025 Without Planning PlanningPreferred Portfolio with Valmy Unit #2 shutdown end of 2023 and Without Planning PlanningCost Difference - - - - - -
Preferred Portfolio with Valmy Unit #2 shutdown end of 2025 Without Low (planning)HiPreferred Portfolio with Valmy Unit #2 shutdown end of 2024 and Without Low (planning)HiCost Difference - - - - - -
Preferred Portfolio with Valmy Unit #2 shutdown end of 2025 Without Low (planning)HiPreferred Portfolio with Valmy Unit #2 shutdown end of 2023 and Without Low (planning)HiCost Difference - - - - - -
Fixed Costs
Capital Fixed O&M Exit Fees Total Capital Fixed O&M Exit Fees Total Capital Fixed O&M Exit Fees Total Capital Fixed O&M Exit Fees Total Capital Fixed O&M Exit Fees Total Capital Fixed O&M Exit Fees TotalValmy Unit #2 Cost with Shutdown End of 2025 2,107,624$ 1,437,000$ Note 3 3,544,624$ 2,326,614$ 1,143,000$ Note 3 3,469,614$ 2,622,820$ 809,000$ Note 3 3,431,820$ 2,623,208$ 490,000$ Note 3 3,113,208$ 2,326,324$ 234,000$ Note 3 2,560,324$ 1,844,743$ -$ -$ 1,844,743$ Valmy Unit #2 Cost with Shutdown End of 2024 2,107,624$ 1,437,000$ Note 3 3,544,624$ 2,326,614$ 1,143,000$ Note 3 3,469,614$ 2,622,820$ 809,000$ Note 3 3,431,820$ 2,623,208$ 490,000$ Note 3 3,113,208$ 2,326,324$ 234,000$ Note 3 2,560,324$ 1,844,743$ -$ -$ 1,844,743$ Valmy Unit #2 Cost with Shutdown End of 2023 2,107,624$ 1,437,000$ Note 3 3,544,624$ 2,326,614$ 1,143,000$ Note 3 3,469,614$ 2,622,820$ 809,000$ Note 3 3,431,820$ 2,623,208$ 490,000$ Note 3 3,113,208$ 2,326,324$ 234,000$ Note 3 2,560,324$ 1,844,743$ -$ -$ 1,844,743$
Bridger Unit Cost with Shutdown End of 2025 397,530,063$ 93,850,000$ -$ 491,380,063$ 396,118,455$ 101,165,000$ -$ 497,283,455$ 384,461,392$ 100,886,000$ -$ 485,347,392$ 367,749,015$ 88,108,000$ -$ 455,857,015$ 347,353,648$ 76,683,000$ -$ 424,036,648$ 328,321,591$ 82,181,000$ -$ 410,502,591$ Bridger Unit Cost with Shutdown End of 2024 397,530,063$ 93,850,000$ -$ 491,380,063$ 396,118,455$ 101,165,000$ -$ 497,283,455$ 384,461,392$ 100,886,000$ -$ 485,347,392$ 367,749,015$ 88,108,000$ -$ 455,857,015$ 347,353,648$ 76,683,000$ -$ 424,036,648$ 328,321,591$ 82,181,000$ -$ 410,502,591$ Bridger Unit Cost with Shutdown End of 2023 397,530,063$ 93,850,000$ -$ 491,380,063$ 396,118,455$ 101,165,000$ -$ 497,283,455$ 384,461,392$ 100,886,000$ -$ 485,347,392$ 367,749,015$ 88,108,000$ -$ 455,857,015$ 347,353,648$ 76,683,000$ -$ 424,036,648$ 328,321,591$ 82,181,000$ -$ 410,502,591$ Bridger Unit Cost with Shutdown End of 2022 397,530,063$ 93,850,000$ -$ 491,380,063$ 396,118,455$ 101,165,000$ -$ 497,283,455$ 384,461,392$ 100,886,000$ -$ 485,347,392$ 367,749,015$ 88,108,000$ -$ 455,857,015$ 347,353,648$ 76,683,000$ -$ 424,036,648$ 328,321,591$ 82,181,000$ -$ 410,502,591$
Notes:1. In alignment with the Company's Response to Staff's Request No. 2, the Company did not perform the "Without B2H" scenarios with a Bridger unit life extenstion, as the B2H online date is not until 2026 in the Preferred Portfolio.2. Capital costs equal the net book value of the plant investments.3. Exit Fees associated with the Valmy Framework Agreement are included in the Fixed O&M amounts.
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