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HomeMy WebLinkAbout20201229IPC to Staff 94-104.pdfsrm. iEil# rlvsjil i*:'il *[t ?S PH l*r 3l Ann oonpcotrofiy LISA D. NORDSTROM Lead Gounsel lnordstrom@idahopower.com December 28,2020 VIA ELECTRONIC FILING Jan Noriyuki, Secretary ldaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg 8, Suite 201-A(83714) PO Box 83720 Boise, ldaho 83720-0074 Re Case No. IPC-E-19-19 201 9 lntegrated Resource Plan Dear Ms. Noriyuki: Attached for electronic filing, pursuant to Order No. 34602, is ldaho Power Company's Response to the Fourth Production Request of the Commission Staff. lf you have any questions about the aftached documents, please do not hesitate to contact me. Very truly yours, X* !.7(^l-+^-*, Lisa D. Nordstrom LDN:slb Attachment(s) LISA D. NORDSTROM (lSB No. 5733) ldaho Power Company 1221West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 I n ord strom @ ida hopower. com Attorney for ldaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY'S 201 9 INTEGRATED RESOURCE PLAN ) ) ) ) ) ) ) ) ) CASE NO. IPC-E-19-19 IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY COMES NOW, Idaho Power Company ("ldaho Powed' or "Company"), and in response to the Fourth Production Request of the Commission Staff to ldaho Power Company dated December 4,2020, herewith submits the following information: IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 1 REQUEST NO. 94: ln its response to Staffs Production Request No. 90, the Company states, "Combining the WECC-optimized portfolios was done by maintaining similar resource selections and timing to the porffolios shown in Table 8.5." Please provide an example to illustrate how this is accomplished and explain how different resource selections are treated for each pair of portfolios that are combined. Are they excluded so that only similar resource selections are left in the fina! combined portfolios? Please explain why or why not. RESPONSE TO REQUEST NO. 94: As an example, WECC optimized portfolios P(1) and P(2) were combined to create the manually-optimized (Planning Gas - Planning Carbon, or "PGPC") portfolios. This was done by recognizing the similarities among the two portfolios. Both portfolios selected the same resources in similar quantities. These resources were selected and the timing and quantity of the resources were selected to meet the guiding principles listed in the Second Amended 2019 lRP. paqes 1 15-1 16. The resource selections and quantities of the WECC-optimized portfolios P(1) and P(2) are compared to the manually-optimized portfolios PGPC below: NaturalGas Wind Solar Battery Demand Response P(1)933 0 320 90 50 P(2)933 0 320 80 50 PGPC (1)933 0 320 80 50 PGPC (2}933 0 320 80 50 PGPC (3)933 0 320 80 50 PGPC (4)911 0 350 80 50 Four of the six portfolio combinations were similar to the example given above, containing the same selection of resources in different quantities to meet the guiding principles. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2 For the high gas, high carbon ("HGHC") portfolio combinations, there were some variations between the resourcesthe modelselected to meetthe growing system demand and to replace coal generation. The goal was to determine if portfolios with different selected resources could be manually optimized to compete with the best performing portfolio resource mixes identified in the Long-Term Capacity Expansion process. ln these cases, clean (non-carbon emitting), flexible resources were selected based on the cost and performance attributes of the available resources. The combination of the WECC-optimized portfolios P(23) and P(24) are compared to the manually-optimized portfolios HGHC B2H below: As listed in the guiding principles, no carbon-emitting resources were added to the high gas, high carbon portfolios. As shown, the natural gas resources selected in the WECC-optimized portfolio P(23) were replaced in the manual portfolios with non-carbon emitting nuclear, biomass, and geothermal generation. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3 Natural Gas Wind Solar Battery Geothermal Nuclear Pumped Storage Biomass Demand Response P(23)500 7200 1050 80 0 0 0 0 t5 P(241 0 1200 1045 80 0 0 s00 30 0 HGHC B2H (1)0 1200 1150 80 60 L20 0 50 50 HGHC B2H (2)0 1200 L150 80 60 L20 0 50 50 HGHC B2H (3)0 1200 1160 80 60 L20 0 60 50 HGHC B2H (4)0 1100 1160 80 30 180 0 30 50 REQUEST NO. 95: ln its response to Staffs Production Request No. 93, the Company states, "For baseload resources such as hydro, biomass and cogeneration, the monthly average megawatts of the generation estimates are used to determine each QF's contribution to capacity." ls the capacity contribution of non-QF baseload resources detennined in the same wafl lf not, please explain in detail how it is determined. RESPONSE TO REQUEST NO. 95: The capacity contribution of non-Qualifying Facility ("QF') baseload resources that sell their generation output to Idaho Power under Power Purchase Agreements is detemined in the same manner as QF baseload resources. For all non-QF and QF resources under contract with the Company, capacity is based on historical information adjusted to include additional forecast information known to ldaho Power. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4 REQUEST NO. 96: ln its response to Staffs Production Request No. 93, the Company states, "For solar and wind resources the total nameplate capacity of each resource type is multiplied by a peak hour capacity factor to determine the contribution to peak." Please explain whether this statement applies to both QF and non-QF solar and wind. RESPONSE TO REQUEST NO. 96: This statement applies to both Qualifying Facility ('QF') and non-QF solar and wind resources. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5 REQUEST NO. 97: ln its response to Staffs Production Request No. 93, the Company states, "For example in the 201g lntegrated Resource Plan the tota! "nameplate capacity of wind QFs was multiplied by a peak hour capacity factor of 5 percent." Please answer the following questions. a. Please describe how peak hour capacity factors are determined for both QF and non-QF solar and wind. b. !n the lncremental Cost lntegrated Resource Plan (lClRP) Methodology, the peak hour capacity factors for wind QFs are listed in the following table. Please describe the relationship between the peak hour capacity factors used in the IRP capacity planning process and the peak hour capacity factors used in the ICIRP Methodology. RESPONSE TO REQUEST NO. 97: a. The peak hour capacity factor of five percent for Qualifying Facility ('QF") and non- QF wind resources has been a long-standing assumption used in the Company's lntegrated Resource Plan ("lRP") for determination of a wind resource's contribution to peak hour capacity. lt is based on industry information and practice, and the Company believes it has been a reasonable representation of a wind resource's contribution to peak hour capacity for long-term planning purposes. However, this capacity factor is being re-evaluated for the 2021 lRP. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6 Benchmark Tvoe Benchmark Peak Hour (July 3 - 7 PIrl) Averase Caoacitv Factor Peak Hour (July 3 - 7 Pll) 90th Percentih Caoacitv Fador Wird ldaho Porcr Wind (200&2011)27.40/o 3.9% The capacity factors applied to QF and non-QF solar are detailed in Table 4.1 of the Second Amended 2019 IRP and the process for determining the factors is described in Section 4, under the heading of Solar-Capacitv Value, of the Second Amended 2019|RP. b. As described in subpart a. above, ldaho Power has utilized a peak hour capacity factor of five percent for wind resources in the Company's long-term IRP process that is applied to al! months of any given year. The Incremental Cost Integrated Resource Plan Avoided Cost Methodology ("lClRP Methodology") was developed and approved by the ldaho Public Utilities Commission in Case No. GNR-E-11-03 and is used to calculate resource-specific avoided cost prices. The peak hour capacityfactor in the ICIRP Methodologyforwind resourceswas established using actualwind data on the ldaho Power system for July peak hours during the years 2008-2011 . Because the peak hour capacity factor used in the ICIRP Methodology is used to set an avoided cost of capacity, a more specific capacity factor is applied. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7 REQUEST NO. 98: ln its response to Staffs Production Request No. 61(b), the Company states that for the 2021 lRP, the Company developed tools to ensure that the planning margin is maintained specifically for the Company, versus building and optimizing resources for the WECC, but not necessarily ldaho Power's system. The Company also states that these tools were used during the manual optimization process for the 2019 IRP and can be used to check the effectiveness of the capacity expansion tools selected for the 2021 lRP. Please describe the "tools" used during the manual optimization process for the 2019 lRP and explain how these tools can ensure the planning margin is maintained specifically for the Company. RESPONSE To REQUEST No. 98: The AURORA Long-Term capacity Expansion model performs a load and resource balance anatysis. The Company created a tool to replicate the load and resource balance performed by AURORA, to manually add or remove resources and adjust the timing of the resources that were selected by AURORA. The planning margin tool and a comparison of a manually optimized and WECC optimized portfolio is included in the Excel spreadsheet accompanying this response. As shown in the Excel spreadsheet, holding the planning margin closer to the 15 percent limit reduces the number and size of resource overbuilds and overall portfolio costs. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8 REQUEST NO. 99: In its response to Staffs Production Request No. 66, the Company states, "The Long-Term Capacity Expansion (LTCE) ensures that adequate resources are built throughout the WECC by adhering to strict planning margins by area, as well as other model constraints. For example, the planning margin for ldaho Power is 15 percent; if the Company's demand is 3,500 megawatts, AURORA builds enough resources to meet 4,025 MW (4,025 = 3,500*1.15) of demand for the Company's area." lf the LTCE ensures that adequate resources are built throughout the WECC by adhering to strict planninq marqins bv area, please explain why the "tools" mentioned in the Company's Response to Staffs Production Request No. 61 (b) are needed to ensure the planning margin is maintained specifically for the Company. RESPONSE TO EST NO. 99:The LTCE capacity function ensures the planning margin for each area is met; however, each area can exceed the specified planning margin. Resource selections within an area may target a need elsewhere in the WECC, so the model can exceed a planning margin if the resource selection makes overall economic sense. The Company placed limits to reduce the amount of overbuilds within its area; however, excess resource builds can still occur if resource costs specific to the Company are Iower than resource costs elsewhere within the WECC. Using the tool ensures the selected resources are optimized for ldaho Power's system. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 9 REQUEST NO. 100: ln its response to Staffs Production Request No. 8g, the Company states, "According to Energy Exemplar and based on current testing, the newest version of the AURORA Long-Term Capacity Expansion software is capable of simultaneously modeling the WECC and ldaho Power, with the concunent goal of meeting the planning margin for all entities within the WECC. The ptanning margin is still the main driverfor new resource builds and retirements, with no priority given to a specific area within the model." Please answer the following questions. a. lf the LTCE adheres to strict planning margins by area, as mentioned in the Company's Response to Staffs Production Request No. 66, has the concurrent goal of meeting planning margin for each entity within the WECC already been achieved by optimizing for the WECC only? b. ls a priority given to ldaho Power's service territory by optimizing the service area? lf so, please explain how the priority is given in the mode! and what impacts are expected to be seen for ldaho Power's service territory. c. Please provide the objective function used to simultaneously optimize for the WECC and ldaho Power. d. Does ldaho Power's practice of simultaneously modeling the WECC and ldaho Power guarantee that the same ldaho Power Portfolio would be obtained as would be obtained by optimizing for ldaho Power's system only, without attempting to meet the planning margins of all entities in the WECC? IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 1O RESPONSE TO REQUEST NO. 1OO: a. No. The model has the option to allow areas that are assigned to a pool to share resources. This option may help meet the overall planning margin for the pool but may also overbuild local areas to optimize for the system as a whole. b. No priority is given to a specific area within the model. All areas are treated the same. c. The objective function is to meet the planning margins by area or pool level with the least overall system cost. The detailed optimization function can be found within the Aurora application by accessing Help > Additional Resources > Simulation Logic > Modeling Details > Commitment Optimization Logic Details' d. No. However, the Company is part of the WECC, and the interplay with market interactions is necessary when designing a portfolio. A WECC buildout needs to be performed to provide a market future for costing portfolio builds, in order to determine a least cost Portfolio. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power ComPanY. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY. 11 REQUEST NO. 101: ln its response to Staffs Production Request No.88, the Company describes a hierarchy consisting of a primary objective of meeting hourly demand, and a secondary objective of meeting regulation reserve requirements. The regulation reserves are input into AURORA, and designated to be served by a select set of Company resources. Please answer the following questions: a. What resources are designated to meet regulation reserve requirements. b. Will any of the new resources selected be designated to meet regulation reserve requirements? Based on this hierarchy, does the LTCE @nsume allthe designated resources to meet demand before it selects new resources? lf so, do the resulting portfolios still have any regulation reserve left when new resources in a late stage are added? lf not, to what degree does the LTCE consume the designated resources to meet demand before they select new resources? How is that degree determined? RESPONSE TO REQUEST NO. ToI: a. The following resources are designated to meet regulation reserve requirements in the Aurora model: Brownlee Units 1-5 Hells Canyon Units 1-3 Oxbow Units 1-4 Danskin Units 1-3 Bennett Mountain Unit 1 Langley Gulch Unit 1 Bridger Units 1-4 IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 12 b. For new resource selections, the following are designated to meet regulation reserve requirements: Reciprocating Engines Batteries Small Modular Nuclear Reactors Hydro Pumped Storage Single-Cycle Combustion Turbines Combined-Cycle Combustion Turbine New resources are selected through the Long-Term Capacity Expansion ("LTCE") process. The LTCE process ensures a minimum planning margin of 15 percent is met for ldaho Power's system; therefore, resources can meet demand. If additional regulation reserve requirements are imposed on the portfolio through future resource buildouts, the model identifies and builds resources that are designated to meet regulation requirements. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 13 REQUEST NO. 102: Page 104 of the Company's Second Amended lRP states, "The AURORA portfolio development process is more precise in using the defined resource characteristics and established quantitative requirements associated with those resources. Examples include increasing regulation requirements with solar generation additions or maintaining a peak hour planning margin and applying hourly regulating reserve requirements in the economic selection and timing of resource additions and retirements." Please provide examples that illustrate how regulating reserve requirements are applied in the economic selection and timing of resource additions and retirements while maintaining a peak hour planning margin. RESPONSE TO REQUEST NO. 102: The design of the Long-Term Capacity Expansion ('LTCE') buildouts starting on page 46 of the Second Amended 2019 IRP Technical Appendix illustrate how economics and regulation requirements are applied. For example, on paoe 47, Portfolio 14 (Planning Gas - Planning Carbon) buildout includes: 600 megawatts of gas, 320 megawatts of solar, 80 megawatts of batteries and 45 megawatts of demand response to meet the planning margin, as well as the regulation requirements for that scenario. When the scenario is adjusted as shown on paqe 57, Portfolio 2a (High Gas - High Carbon) buildout includes: 1,200 megawatts of wind, 1,045 megawatts of solar, 80 megawatts of batteries, 500 megawatts of pumped storage and 30 megawatts of biomass. Both portfolios build resources to meet the planning margin, as well as resources that are designated to meet regulation reserye requirements; however, Portfolio 24 selected pumped storage which is better suited to the High Gas - High Carbon scenario. lt is also worth mentioning that the first Combined-Cycle Combustion Turbine ("CCCT") and the pumped hydro storage are built when the final IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REOUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 14 Bridger unit is exited, for which the timing is different between the two portfolios. This demonstrates that a capacity resource was needed, as well as a resource that can provide regulation reserye requirements. Other examples are available throughout the LTCE buildouts. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY. 15 REQUEST NO. 103: Please explain if a regulation reserve shortfall can cause loss of load. lf so, please explain if there is a way to quantiff loss of Ioad caused by regulation reserye shortfal!. RESPONSE TO REQUEST NO. 103: A regulation reserve shortfall cannot cause a loss of load event. A loss of load event occurs when demand exceeds supply. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 16 REQUEST NO. 104: !n its response to Staffs Production Request No. 62, the Company states, "The Overarching goa! of Step lV was to verify and validate the AURORA model outputs to ensure that the model produced logical and consistent results." Please provide the following information: 1 . A list of the specific functions that the Company validated for both models. 2. For each function validated, please provide the specific tests that were conducted, the results that the Company expected from each test, whether or not the actual results matched expectations, and if results and expectations did not match, provide an explanation and a conclusion for the discrepancy. RESPONSE TO REQUEST NO. 104: 1. The specific functions validated during the 2019 IRP Review are listed as the subheadinqs to Section 5 in the 2019 IRP Review Report. 2. Detailing the specific tests conducted and the results and conclusions are the primary purpose of Section 5 and Section 6 of the 2019 IRP Review Report. The response to this Request is sponsored by Jared Hansen, Resource Planning Leader, ldaho Power Company. DATED at Boise, ldaho, this 28th day of December 2020. X*!.(,,*+r-*, LISA D. NORDSTROM Attorney for ldaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 17 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 28th day of December 2020,1 served a true and correct copy of IDAHO POWER COMPANY'S RESPONSE To THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Edward Jewell Deputy Attomey General ldaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg. No. 8, Suite 201-A(83714) PO Box 83720 Boise, lD 83720-0074 ldaHydro C. Tom Arkoosh ARKOOSH LAW OFFICES 802 W. Bannock Street, Suite LP 103 P.O. Box 2900 Boise, lD 83701 ldaho Conservation League Benjamin J. Otto ldaho Conservation League 710 N. 6th Street Boise, lD 83702 STOP B2H Coalition Jack Van Valkenburgh Van Valkenburg Law, PLLC P.O. Box 531 Boise, lD 83701 Jim Kreider STOP B2H Coalition 60366 Marvin Road La Grande, OR 97850 Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email edward.iewell@puc.idaho.qov _Hand Delivered _U.S. Mail Overnight Mail _FAXX Email tom.arkoosh@arkoosh.com stacie rkoosh.com erin.ceci l@a rkoosh.com _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email botto@idahoconservation.orq _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email iack(Ovanva burohlaw.com _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email iim@stopb2h.orq IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 18 ldaho Sierra Club Julian Aris, Associate Attorney Gloria D. Smith Sierra Club 2101 Webster Street, Suite 1300 Oakland, CA 94612 lndustrial Customers of ldaho Power Peter J. Richardson RICHARDSON ADAMS, PLLC 515 N.27th Street P.O. Box 7218 Boise, lD 83702 Dr. Don Reading 6070 Hill Road Boise, lD 83703 Micron Technology, lnc. Austin Rueschhoff Thorvald A. Nelson Holland & Hart, LLP 555 17th Street, Suite 3200 Denver, CO 80202 Jim Swier Micron Technology, lnc. 8000 South Federal Way Boise, lD 83707 _Hand Delivered _U.S. Mail Overnight Mail _FAXX Email iulian.aris@sierraclub.orq, G loria. sm ith@sierraclu b.o rq : ana.bovd@sierraclub.orq _Hand Delivered -U.S. Mail -Overnight Mail _FAXX Email peter@richardsonadams.com -Hand Delivered -U.S. Mail _Overnight Mail _FAXX Email dreadinq@mindsprinq.com Hand Delivered U.S. Mail Overnight Mail FAXX Email darue off@holland com tnelson@hol dhart.com aclee@ holland hart.com oloaroa noamari @ hol land hart. com Hand Delivered U.S. Mail Overnight Mail _ FAXX Email iswier@micron.com Stephanie L. Buckner IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY. 19 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC-E-I9-19 IDAHO POWER COMPANY ATTACHMENT TO REQUEST NO. 98 (EXCEL SPREADSHEET ATTACHED TO EMA|LI ro IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF