20220418NIPPC 1-3 to IPC.pdf

Gregory M. Adams (ISB No. 7454)
Richardson Adams, PLLC
515 N.27n Steet
Boise,Idaho 83702
Telephone: [phone]
Fax: [phone]
greg@richardsonadams. com
Attorney for Northwest and lntermountain Power Producers Coalition
BEFORE THE IDAHO PI.]BLIC U-TILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
AUTHORITY TO PROCEED WITH
RESOURCE PROCUREMENTS TO MEET
IDENTIFIED CAPACITY DEFICIENCIES IN
2023,2024, AND 2025 TO ENSURE
ADEQUATE, RELIABLE, AND FAIR-
PRICED SERVICE TO ITS CUSTOMERS
CASE NO. IPC-E-21-41
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NORTTIWE ST AI\D INTERMOI JNTAIN
POWER PRODUCERS COALITION'S
FrRST SET OF PRODUCTION REQUESTS
AND FIRST SET OF INTERROGATORIES
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Pursuant to Rule 225 of the Rules of Procedure of the Idaho Public Utilities Commission
(the "IPUC" or "Commission"), the Northwest and lntermountain Power Producers Coalition
("N[PPC") by and through its attorney of record, Gregory M. Adams, hereby requests that Idaho
Power Company ("Idaho Power" or the "Company") provide responses to the following
interrogatories, requests for admission and production requests.
DEFINITIONS
Unless otherwise specified in an individual request, the following words have the
following meanings in these interrogatories, requests for admission and production requests:
1. "Documents" refers to all writings and records of every type in your possession, control,
or custody, whether or not claimed to be privileged or otherwise excludable from discovery,
including but not limited to: testimony and exhibits, mernorandq papers, correspondence, letters,
NORTHWEST AND TNTERMOI.JNTAIN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
PC-E-2L-41 - PAGE 1
reports (including drafts, preliminary, intermediate, and final reports), surveys, analyses, studies
(including economic and market studies), summaries, comparisons, tabulations, bills, invoices,
statements of services rendered, charts, books, pamphlets, photographs, maps, bulletins,
corporate or other minutes, notes, diaries, log sheets, ledgers, tanscripts, microfilm, microfiche,
computer data (including E-mail), computer files, computer tapes, computer inputs, computer
outputs and printouts, vouchers, accounting statements, budgets, work papers, engineering
diagrams (including "one-line" diagrams), mechanical and electrical recordings, telephone and
telegraphic communications, speeches, and all other records, written, electrical, mechanical, or
otherwise, and drafts of any of the above.
"Documents" includes copies of documents, where the originals are not in your
possession, custody or control.
"Documents" includes every copy of a document which contains handwritten or other
notations or which otherwise does not duplicate the original or any other copy.
"Documentso'also includes any attachments or appendices to any document.
2. "Identification" and "identifr" mean: When used with respect to a document, stating the
nature of the document (gg, letter, memorandum, minutes); the date, if any, appearing thereon;
the date, if known, on which the document was prepared; the title of the document; the general
subject matter of the document; the number of pages comprising the document; the identity of
each person who wrote, dictated, or otherwise participated in the preparation of the document;
the identity of each person who signed or initiated the document; the identity of each person to
whom the document was addressed; the identity of each person who received the document or
reviewed it; the location of the document; and the identity of each person having possession,
custody, or control of the document.
NORTHWEST AND INTERMOUNTATN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
IPC-E-21.4I _ PAGE 2
When used with respect to a person, stating his or her full name; his or her most recently known
home and business addresses and telephone numbers; his or her present title and position; and his
or her present and prior connections or associations with any participant or party to this
proceeding.
3. "ldaho Power Company" and "the Company" and "ldaho Power" refer to Idaho Power
Company, any affiliated company, or any officer, director or employee of Idaho Power Company
or any affiliated company.
4. o'Person" refers to, without limiting the generality of its meaning, every naturalperson,
corporation, parfirership, association (whether formally organized or ad hoc), joint venture, unit
operation, cooperative, municipality, commission, govemmental body or agency, or any other
group or organization.
5. "Studies" or "study" includes, without limitation, reports, reviews, analyses and audits.
6. The terms "and" and "or" shall be construed either disjunctively or conjunctively
whenever appropriate in order to bring within the scope of this discovery any information or
documents which might otherwise be considered to be beyond their scope.
7. The singular form of a word shall be interpreted as plural, and the plural form of a word
shall be interpreted as singular, whenever appropriate in order to bring within the scope of this
discovery request any information or documents which might otherwise be considered to be
beyond their scope.
8. "Work papers" means documents that show the source, calculations, and details
supporting the material referenced.
INSTRUCTIONS
NORTHWEST AND TNTERMOUNTATN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
IPC-E-21-41 _ PAGE 3
1. These interrogatories, requests for admission and production requests call for all
information, including information contained in documents, which relate to the subject matter of
the interrogatories, requests for admission and production requests and which is known or
available to you.
2. Where an interrogatory, request for admission or production request has a number of
separate subdivisions or related parts or portions, a complete response is required to each such
subdivision, part or portion. Any objection to an interrogatory, request for admission or
production request should clearly indicate the subdivision, part, or portion to which it is directed.
3. Each response should be furnished on a separate page. Electronic versions of the
document, including studies and analyses, must be fumished if available.
4. If you cannot answer any of these interrogatories, requests for admission and production
requests in full, after exercising due diligence to secure the information necessary to do so, state
the answer to the extent possible, state why you cannot answer in full, and state what information
or knowledge you have concerning the unanswered portions.
5. If, in answering any of these interrogatories, requests for admission and production
requests, you feel that any request or defurition or instruction applicable thereto is ambiguous, set
forth the language you feel is ambiguous and the interpretation you are using in responding to the
interrogatories, requests for admission and production requests.
6. If a document requested is unavailable, identi$ the document, describe in detail the
reasons the document is unavailable, state where the document can be obtained, and speciff the
number of pages it contains.
7. If you assert that any document has been destoyed, state when and why it was destoyed
and identifr the person who directed the destruction. If the document was destroyed pursuant to
NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORMS
IPC-E-21-4I _PAGE4
your document destruction program, identi$ and produce a copy of the guideline, policy, or
company manual describing such document destruction program.
8. If you refuse to respond to any interrogatories, requests for admission and production
requests by reason of a claim of privilege, confidentiality, or for any other reason, state in writing
the type of privilege claimed and the facts and circumstances you rely upon to support the claim
of privilege or the reason for refusing to respond. With respect to requests for documents to
which you refuse to respond, identi$, each such document, and specifu the number of pages it
contains. Please provide: (a) a brief description of the document; (b) date of document; (c) name
of each author or preparer; (d) name of each person who received the document; and (e) the
reason for withholding it and a statement of facts constituting the justification and basis for
withholding it.
9. Identiff the person from whom the inforrnation and documents supplied in response to
each interro gatory, request for admission and production request were obtained, the person who
prepared each response, the person who reviewed each response, and the person who will bear
ultimate responsibility for the truth of each response.
10. If no document is responsive to an interrogatory, request for admission and production
request that calls for a document, then so state.
I l. These requests for documents and responses are continuing in character so as to require
you to file supplernental answers as soon as possible if you obtain further or different
information. Any supplemental answer should refer to the date and use the number of the
original request or subpart thereof.
NORTHWEST AND TNTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
TPC-E-21-41 _ PAGE 5
12. Whenever these interrogatories, requests for admission and production requests
specifically request an answer rather than the identification of documents, the answer is required
and the production of documents in lieu thereof will not substitute for an answer.
13. To the extent that the Company believes it is burdensome to produce specific inforrration
requested, please contact counsel foTNIPPC to discuss the problem prior to frling an answer
objecting on that basis to determine if the request can be modified to pose less difficulty in
responding.
14. To the extent the Company objects to any of the requests please contact counsel for
NIPPC to determine if the request can be modified to produce a less objectionable request.
FIRST REQUESTS FOR PRODUCTION
Request for Production 1: Please provide all documents related to the 2021 and2022 RFPs
exchanged between Idaho Power by Black and Veatch.
Request for Production 2: Please provide all documents produced by Idaho Power in
response to discovery requests made in IPUC Case No. IPC-E-21-09.
Request for Production 3: Reference ldaho Power Response to Oregon PUC Staf|s UIN/2210
Data RequestNos. 30,32, &33 (attached to the Response to IPUC StaffProduction Request l),
discussing Idaho Power's December 10,2022 Notice of Intent to issue the2022 RFP, "an email
regarding the Notice of Intent on Decemb er 22, 2021" in which "respondents were instructed to
reply by 5 :00 PM on Decemb er 23, 2021' o, and also asserting that despite the Decemb er 22, 2021
email: 'potential respondents can register and submit a proposal anytime up to the proposal due
date of March20,2022." Please provide copies of the following documents:
a. December 10,2021Notice of Intent
NORTHWEST AND INTERMOI.JNTATN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQI'ESTS AND FIRST SET OF INTERROGATORIES
rcc-E-21-41 - PAGE 6
b. The email regarding the Notice of lntent sent on December 22,2021
c. All documents Idaho Power relies upon in support of the assertion that Idaho
Power communicated to potential bidders that "potential respondents can register and
submit a proposal anlime up to the proposal due date of March 20,2022*, as asserted in
response to OPUC Data Request 33.
FIRST INTERROGATORIES
Interrogatory 1: Please explain whether IPUC Staffwas invited to and, if so, whether it
attended meetings, telephone calls, and other discussions between Idaho Power and Black and
Veatch related to the 2021 and 2022 RFPs.
Interrogatory 2: Identiff the date that Idaho Power frst contacted Black and Veatch
regarding potential retention for the scope of work related to the 2021 and 2022 RFPs.
Interrogatory 3: Please explain whether Idaho Power contacted any companies to serve as
an independent evaluator other than Black and Veatch, for the 2021 RFP or the 2022RFP and, if
so, please explain the selection process Idaho Power used to select Black and Veatch, including
the involvement of IPUC Staffor any other stakeholders in the selection of Black and Veatch.
Interrogatory 4: Identi$ the Idaho Power employees involved in development of the 2021
and2022 RFPs or in the evaluation of bids and selection of fural resources. For each such
employee, provide a brief explanation of the employee's job title and role related to the RFPs.
Interrogatory 5: Please explain whether Black and Veatch or Idaho Power identified and
considered whether to offer to accept bids in the 2021 or 2022 RFPs for a storage tolling
agreement under which the utility contracts with an independent power producer for dispatch
rights to charge and discharge the storage facility in exchange for a $/lvIW-month payment, such
as the "Storage Capacity Agreement" included in Appendix B of Portland General Electric
NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
wc-E-21-41 - PAGE 7
Company's 2021 All-Source RFP (Oregon PUC Docket No. UM 2166), the "Battery Storage
Agreement" included in Appendix E-3 of PacifiCorp's 2020 All-Source RFP (Oregon PUC
Docket No. UM 2059), and the "Battery Storage Agreement" or "Tolling Agreement" option
included in Appendix E-3 of PacifiCorp's 2022 All-Source RFP (Oregon PUC DocketNo. UM
2193). Explain the steps Idaho Power took to evaluate this potential contract structure.
Interrogatory 6: Please explain whether Black and Veatch or Idaho Power identified and
considered whether to offer to accept bids in the202l or 2022 RFPs for a PPA for coJocated
renewable energy generating resource with energy storage system including $A4Wh payment for
delivered energy and $/IvlW-month payment for the utility's dispatch right to charge and
discharge the battery, such as the "Hybrid Resource PPA" included in Appendix C of Portland
General Electric Company's 2021 All-Source RFP (Oregon PUC DocketNo. UM 2166),the
"PPA for Resource plus BESS'included in Appendix E-2 of PacifiCorp's 2020 All-Source RFP
(Oregon PUC Docket No. UM 2059), and the PPA for collocated renewable energy generating
resource with energy storage system included in AppendixB-2.2 PacifiCorp's2022 All-Source
RFP (Oregon PUC Docket No. UM 2193). Explain the steps Idaho Power took to evaluate this
potential contract structure.
Interrogatory 7: Please confirm that Idaho Power did not offer to accept any non-utility
ownership bids for any storage resources in the 2021 or 2022 RFPs whatsoever, including
standalone storage tolling agteements, such as those referenced in lnterrogator! 4, or power
purchase agreements that include dispatch rights for co-located battery storage facilities, such as
those referenced in Interrogatory 5. If Idaho Power did offer to accept any such bids, identifr
and explain the requirements for such bids and where in the 2021 or 2022RFP (page number)
such requirements were explained.
NORTHWEST AND TNTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
wc-E-21-41 - PAGE 8
Interrogatory 8: Reference Idaho Power's Response to IPUC Staff Production Request 12,
stating: 'oBased on discussions with external legal counsel familiar with PPA terms for energy
storage projects, utility curtailment of a battery storage facility under the terms of the PPA is
compensable - i.e., absent emergency conditions or an event of force majeure, it is typical and
market-standard in a PPA that the utility compensate the asset owner for energy that would have
flowed during the curtailment, despite not receiving the energy. The off-taker typically is
required to make the generator 'whole' by paying the contract price for all energy that the
generating facility would have produced and delivered to the delivery point, but for the
curtailment by off-taker. "
a. Does Idaho Power agree that this statement is not an accurate description of a
storage tolling agreement structure such as those referenced in Interrogatory 4?
b. If not, please explain how the utility could be required to pay for undelivered
energy under such a tolling agreement that grants the utility the express right to charge
and discharge the storage facility.
Interrogatory 9: Reference Idaho Power's Response to IPUC StaffProduction Request 12,
stating: "Seeking to negotiate a contract that allows for, and pre-pays for, curtailment is not
likely available in the market at a reasonable price, based on Idaho Power's discussions with
external legal counsel."
a. Provide the documents exchanged between Idaho Power and extemal legal
counsel in support of this assertion.
b. Please explain how the conclusion asserted above can be squared with the facts
that other utilities have entered into storage tolling agreements similar to those referenced
in Interrogatory 4,that 200 MW of standalone Battery Storage Agreement bids and 535
NORTHWEST AND TNTERMOUNTATN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
IPC-E-21-41 - PAGE 9
MW of battery storage co-located with solar bids made the final shortlist in PacifiCorp's
2020 All-Source RFP (reference shortlist filing p. 2-
https://edocs.puc.state.or.us/efrlocs/[IAlVum2059hah16646.pdfl, and that the only other
two utilities subject to the Oregon resource procurement rules have included such option
in currently ongoing RFPs.
Interrogatory 10: Reference Idaho Power's Application atp.4, stating: "What the OPUC
Resource Procurement Rules do not contain, however, is an exception or exemption from the
lengthy procurement process for when a utility identifies a critical and time-sensitive need to
obtain capacity resource to reliably serve load." Please explain how this statement is consistent
with the facts that ldaho Power filed a request to waive the OPUC's Resource Procurement
Rules for this same solicitation in OPUC Docket No. 2210, the OPUC denied waiver but directed
Idaho Power to file a notice of exceptions, and Idaho Power subsequently filed such a notice of
exceptions under OAR 860-089-0100 for the resources acquired pursuant to the 2021 RFP.
Interrogatory 1.1: Reference Idaho Power's Application at p. 18, stating: "The required
CPCN process as well as the subseque,nt rate making proceedings will provide considerable
oversight of the procurement process", and at p. 34, requesting an IPUC order "eliminating the
IPUC requirement to comply with OPUC Resource Procurement Rules".
a. Is it accurate to state that under Idaho Power's proposal, the IPUC, IPUC Staff,
and stakeholders such as NIPPC would have no ability to review, comment, and propose
changes to the design of solicitations for major generation resources prior to Idaho Power
issuing such solicitations?
b. [f subpart a. does not accurately characterize Idaho Power's proposal in this case,
please explain how the IPUC, IPUC Staff, and stakeholders such as NIPPC would be able
NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
PC-E-2141 - PAGE IO
to comment upon and influence the design of Idaho Power's future solicitations for major
resources before such solicitations are issued.
Interrogatory 12: Reference Idaho Power's Application at p. 30, stating: 'oMost PPAs are much
shorter in duration than the physical and economic life of the underlying asset and generally start
with a low and attractive cost in the first year but increase every year thereafter."
a. Does ldaho Power agree that a low cost in the early years of the resource results
in lower rate increases and rate shock to Idaho Power's customers?
b. If Idaho Power's concern is with short terms, why doesn't Idaho Power simply
issue a solicitation for PPAs and storage tolling agreements with longer terms, such as 30
years or more as has been done in other utilities' recent RFPs?
Interrogatory 13: Reference ldaho Power's Application at p. 30, stating: "When Idaho Power
owns an asset, customers benefit from locking in the fixed costs over the full life of the
underlying asset, and as market prices go up, customers pay less on a non-levelizedbasis than
they did the first year the resources was in service due to depreciation."
a. Does Idaho Power agree that the highest revenue requirement for a utility-
owned/rate-based generation resource will typically be in the early years of the resource
due to higher returns on the undepreciated rate base? That is, the revenue requirement is
not typically levelized as the quoted statement suggests, but instead is inverted and higher
in the early years. [f not, explain why not.
b. Does Idaho Power agree that such higher revenue requirement in the early years
of the resource results in higher rates charged to Idaho Power's customers and more risk
of rate shock? [f not, explain why not.
NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
IPC-E-21.41 _PAGE 11
c. Please explain how Idaho Power's customers can rely on'ofixed costs" of a utility-
owned resource when Idaho Power retains the right under the law and cost-of-service
ratemaking to recover its acfual, prudent costs, which could be far in excess of the
amount forecasted by Idaho Power in an RFP or CPCN proceeding.
Interrogatory 14: Reference Idaho Power's Response to IPUC StaffProduction Request 4,
asserting that tdaho Power's request to the IPUC related to the 2021 and 2022 RFPs differs from
the request to the Oregon PUC, as the IPUC request relates to broader long-term resource
procurement policy and seeks to change Idaho's policy adopted in 2013 that requires ldaho
Power to follow the Oregon resource procurement rules.
a. When did Idaho Power first become aware of its concerns that the Oregon
resource procurement rules should not be used in Idaho?
b. Why did ldaho Power not file an application to change Idaho's policy adopting
the Oregon resource procurement rules at some point between 2013 and 2020 to ensure
the long-term policy question could be fully vetted before the next major resource
acquisition became necessary?
Interrogatory 15: Reference ldaho Power Response to Oregon PUC Staff s UM2210Data
Request No. 33 (attached to the Response to IPUC StaffProduction Request 1), stating that
notwithstanding ldaho Power's December 22,2021 Notice of Intent's statement that the deadline
for potential bidders to register to participate in the 2022RFP was December 23,2022:
"potential respondents can register and submit a proposal anytime up to the proposal due date of
March 20,2022." Please explain how and when Idaho Power communicated to potential bidders
that Idaho Power would allow for registration and proposals anytime up to March 20,2022, and
NORTHWEST AND INTERMOUNTAIN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
rcc-E-21-41 -PAGE 12
identiff all documents supporting the assertion that zuch communication was made by Idatro
Power.
Respecttully submitted this l8th day of April2022.
RICHARDSON ADAMS, PLLC
C,L
M. Adams (ISB No. 7454)
515 N.276 Steet
Boise,Idaho 83702
Telephone: [phone]
Fax [phone]
greg@richardsonadams. com
Attomeys for Northwest and Intermountain Power
Producers Coalition
NORTHWEST AND INTERMOI.JNTAIN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF IN]ERROGATORTES
PC-E-21-41-PAGE 13
CERTIFICATE OF SERVICE
I HEREBY certit/ that I have on this 18th day of April 2022, served the foregoing
document by electronic mail to the following:
JanNoriyuki
Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise,ID 83720-0074
j an.noriyuki@puc. idaho. gov
Dayn Hardie
Deputy Attorney General
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
dayn. hardie@puc. idaho. gov
Donovan Walker
Regulatory Dockets
PO Box 70
Boise,ID 83707-0070
dwalker@idahopower. com
dockets@idahopower. com
Timothy E. Tatum
Idaho Power Company
PO Box 70
Boise, lD 37707-0070
ttatum@idahopower. com
Dr. Don Reading
6070 Hill Road
Boise, tD 83703
dreading@mindspring. com
Peter J. Richardson
Richardson Adams, PLLC
515 N. 27ft Street
PO Box 7218
Boise, tD 83702
peter@richardsonadams. com
Benjamin J. Otto
Emma E. Sperry
Idaho Conservation League
710 N. 6ft Street
Boise, ID 83702
botto@idahoconservation. org
esperry@idahoconservation. org
Tom Arkoosh
Amber Dresslar
Arkoosh Law Offices
913 W. River Street, Ste 450
PO Box 2900
Boise,ID 83701
tom. arkoosh@arkoosh. com
amber.dresslar@arkoosh. com
erin. cecil@arkoosh. com
Abigail R. Germaine
Elam & Burke, P.A.
251E. Front St., Suite 300
PO Box 1539
Boise,ID 83701
[e-mail]
Scott Miller, Executive Director
Western Power Trading Forum
1540 River Park Dr., Suite 2l I
Sacramento, CA 95815
[e-mail]
Jim Kreider
STOP B2H Coalition
60366 Marvin Rd.
La Grande, OR 97850
[e-mail]
NORTHWEST AND INTERMOUNTATN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORMS
TPC-E-21-4I _ PAGE 14
Jack Van Valkenburgh
Van Valkenburgh Law, PLLC
PO Box 531
Boise,ID 83701
j ack@vanvalkenburghlaw. com
Ed Jewell
Deputy City Attorney
Boise City Attorney's Office
150 N. Capitol Blvd.
PO Box 500
Boise,ID 83701-0500
ej ewell@cityofboise. org
boisecityattorney@cityofboise. org
Wil Gehl
Energy Program Manager
Boise City Dept. of Public Works
150 N. Capitol Blvd.
PO Box 500
Boise,ID 83701-0500
wgehl@cityofboise. org
Max Greene
Regulatory & Policy Director
Renewable Northwest
421 SW 6th Ave., Suite 1400
Portland, OR97204
[e-mail]
U,--
By:
M. Adams (ISB No. 7454)
NORTHWEST AND INTERMOI.JNTAIN POWER PRODUCERS COALITION'S FIRST SET
OF PRODUCTION REQUESTS AND FIRST SET OF INTERROGATORIES
PC-E-21-41 - PAGE 15