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HomeMy WebLinkAbout20220323IPC to Staff 18-20.pdfLISA D. NORDSTROM Lead Counsel lnordstrom@idahopower.com March 23, 2022 Jan Noriyuki, Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-21-37 Application of Idaho Power Company for Authority to Establish A New Schedule to Serve Speculative High-Density Load Customers Dear Ms. Noriyuki: Attached for electronic filing, pursuant to Order No. 35058, is Idaho Power Company’s Response to the Second Production Request of the Commission Staff in the above entitled matter. If you have any questions about the attached documents, please do not hesitate to contact me. Sincerely, Lisa D. Nordstrom LDN:sg Enclosure RECEIVED 2022 MAR 23 PM 4:13 IDAHO PUBLIC UTILITIES COMMISSION IDAHO POWER COMPANY’S RESPONSE TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 1 LISA D. NORDSTROM (ISB No. 5733) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 lnordstrom@idahopower.com Attorney for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO ESTABLISH NEW SCHEDULE TO SERVE SPECULATIVE HIGH-DENSITY LOAD CUSTOMERS. ) ) ) ) ) ) ) ) CASE NO. IPC-E-21-37 IDAHO POWER COMPANY’S RESPONSE TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY COMES NOW, Idaho Power Company (“Idaho Power” or “Company”), and in response to Second Production Request of the Commission Staff (“IPUC or Commission”) dated March 2, 2022, herewith submits the following information: IDAHO POWER COMPANY’S RESPONSE TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2 REQUEST FOR PRODUCTION NO. 18: In the Application, page 5, the Company states, “Within the span of several months, Idaho power received seventeen (17) viable and unique inquires totaling over 1,950 MW.” Please respond to the following: a. Have any of the 17 inquiries continued to pursue obtaining service with the Company after the initial inquiry? b. For each of the inquiries that have continued pursuit of service with the Company, what service schedule did they request and which of the current schedules provides the best fit for their service requirements. c. For each of the 17 inquiries that did not pursue service, please provide the reasons for discontinuing pursuit of service. RESPONSE TO REQUEST FOR PRODUCTION NO. 18: a. No. After conducting their initial due diligence, the 17 inquiries are not currently pursuing service. b. Please see the answer to (a). c. The 17 inquiries did not provide specific reasons for not pursuing service with Idaho Power. The response to this Request is sponsored by Megan Ronk, Economic Development & Innovation Director, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3 REQUEST FOR PRODUCTION NO. 19: Because of the Company’s obligation to serve, if the Company was to establish a schedule for High Density Load Customers that was not interruptible, what protections would need to be included that would protect remaining customers from paying for potential stranded assets? Please include any specific changes that would need to be made to existing schedules or rules, including but not limited to changes to Rule L: Deposits. RESPONSE TO REQUEST FOR PRODUCTION NO. 19: In advance of the Company’s filing to require High Density Load customers to be interruptible, Idaho Power also evaluated a moratorium for commercial High Density Load customers similar to what was enacted by the Chelan County and Douglas County Public Utility Districts in Washington State.1 Other than a potential moratorium, the Company has not evaluated establishing a schedule for High Density Load customers which does not include interruptibility and does not have a list of customer protections for an alternate proposal. The intent of Idaho Power’s filing requiring interruptibility is in consideration of potential future stranded costs borne by all other Idaho Power customers arising from the need for additional investment in the Company’s generation and transmission infrastructure to serve the proposed Schedule 20 customer segment. The Company’s existing standard service schedules do not offer the forum to address the potential for stranded assets associated with generation and transmission infrastructure investment 1 Washington State County Moves to Limit New Bitcoin Mining Firms, Coindesk, March 21, 2018. https://www.coindesk.com/markets/2018/03/21/washington-state-county-moves-to-limit-new-bitcoin- mining-firms/ Douglas PUD puts moratorium on new data centers, crypto miners, The Wenatchee World, May 17, 2019. https://www.wenatcheeworld.com/business/douglas-pud-puts-moratorium-on-new-data-centers-crypto- miners/article_6872aeec-78df-11e9-8c8b-b752987751bc.html IDAHO POWER COMPANY’S RESPONSE TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4 to serve a speculative customer segment. The response to this Request is sponsored by Paul Goralski, Regulatory Consultant, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5 REQUEST FOR PRODUCTION NO. 20: In reference to the 90 percent Effective Load Carrying Capability (“ELCC”) and the required 225 hours of possible curtailment mentioned in Response to Staff’s Production Request No. 6. Please respond to the following: a. Please explain how the 90 percent ELCC threshold was determined. b. Please provide the workpapers with formulae enabled used to determine 225 hours of possible curtailment. RESPONSE TO REQUEST FOR PRODUCTION NO. 20: a. The Effective Load Carrying Capability (“ELCC”) of a simple cycle combustion turbine is slightly above 90 percent. The Company believes an ELCC of 90 percent for Schedule 20 coupled with the ability to curtail Schedule 20 demand during a system emergency (as provided for in Rule J, Continuity, Curtailment and Interruption of Electric Service) will avoid the need to add incremental capacity resources. b. ELCC analysis supporting the 225 hours of possible curtailment was determined using Idaho Power’s Loss of Load Expectation (“LOLE”) tool, which was created in MATLAB® and requires a license to run. The MATLAB® algorithm is comprised of a multitude of interplaying scripts which apply the methods and equations described in the Reliability Evaluation of Power Systems (Billinton & Allan 1984) textbook. Idaho Power has provided the scripts as attachments to this response and can host an on-site meeting to demonstrate the tool, if desired. IDAHO POWER COMPANY’S RESPONSE TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6  Billinton, Roy, and Ronald N. Allan. Reliability Evaluation of Power Systems. Pitman Books Limited, 1984. The response to this Request is sponsored by Jared Ellsworth, Transmission Distribution & Resource Planning Director, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7 DATED at Boise, Idaho, this 23rd day of March 2022. LISA D. NORDSTROM Attorney for Idaho Power Company IDAHO POWER COMPANY’S RESPONSE TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 23rd day of March 2022, I served a true and correct copy of Idaho Power Company’s Response to Second 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 Riley Newton Deputy Attorney General Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg No. 8, Suite 201-A (83714) PO Box 83720 Boise, ID 83720-0074 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: Riley.Newton@puc.idaho.gov Industrial Customers of Idaho Power Peter J. Richardson Richardson Adams, PLLC 515 N. 27th Street P.O. Box 7218 Boise, Idaho 83702 Hand Delivered U.S. Mail Overnight Mail FAX FTP Site X Email: peter@richardsonadams.com Dr. Don Reading 6070 Hill Road Boise, ID 83703 Hand Delivered U.S. Mail Overnight Mail FAX FTP Site X Email: dreading@mindspring.com 2140 Labs LLC Elizabeth A. Koeckeritz Givens Pursley LLP 601 W. Bannock Street Boise, Idaho 83702 Hand Delivered U.S. Mail Overnight Mail FAX FTP Site X Email: eak@givenspursley.com ________________________________ Stacy Gust, Regulatory Administrative Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-21-37 IDAHO POWER COMPANY REQUEST NO. 20 ATTACHMENT 1 SEE ATTACHED ZIP FILE