20230124Staff 1-20 to IPC.pdf

CHRIS BURDIN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE,IDAHO 83720-0074
[phone]
IDAHO BAR NO.9810
Street Address for Express Mail:
11331 W CHINDEN BLVD,BLDG 8,SUITE 201-A BOISE,ID 83714
Attorneyfor the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )COMPANY'S APPLICATION FOR )CASE NO.IPC-E-22-29
APPROVAL OF A POWER PURCHASE )AGREEMENT WITH PLEASANT VALLEY )SOLAR,LLC.)REDACTED FIRST
)PRODUCTION REQUESTOF
)THE COMMISSION STAFF
)TO IDAHO POWER COMPANY
STAFF of the Idaho Public Utilities Commission ("Staff"),by and through its attorney of
record,Chris Burdin,Deputy Attorney General,hereby requests that Idaho Power Company
("Company"or "Idaho Power")provide the followingdocuments and informationas soon as
possible,but no later than MONDAY,FEBRUARY 6,2023.
This Production Request is continuing,and Idaho Power is requested to provide,by way of
supplementary responses,additional documents that it,or any person acting on its behalf,may later
obtain that will augment the documents or information produced.
REDACTED FIRST PRODUCTION
REQUEST TO IDAHO POWER COMPANY 1 JANUARY ,2023
Please provide answers to each question;supporting workpapers that provide detail or are
the source of informationused in calculations;and the name,job title,and telephone number of
the person preparing the documents.Please also identify the name,job title,location,and
telephone number of the record holder.
In addition to the written copies provided as response to the requests,please provide all Excel
spreadsheets and electronic files with formulas intact and enabled.
REQUESTNO.1:Please describe the competitive procurement process used to procure
the Pleasant Valley Solar Power Purchase Agreement ("PPA")and provide all other proposals
considered in the procurementprocess.
REQUESTNO.2:Please provide a comparison of the Pleasant Valley Solar PPA,the
PPA Template provided in Case No.IPC-E-21-42,and the Black Mesa PPA in Case No.IPC-E22-
06.Please list major differences contained in the Pleasant Valley Solar PPA compared to the other
two PPAs.
REQUESTNO.3:Schedule 33 contains informationwith respect to Renewable
Resource Agreements.Please confirm that Schedule 33 will be updated and filed with the
Commission after each Renewable Resource Agreement is approved.If not,please explain why
not.
REQUESTNO.4:Please respond to the followingquestions regarding Section l l.l(II)
"Renewable Resource PPAs"of the Special Contract between Brisbie and Idaho Power.
a.Section 11.l(II)of the Special Contract states:"[fjor each Renewable Resource PPA,
Customer will within ten Business Days after the execution of Idaho Power of such
Renewable Resource PPA,deliver a Guaranty from Guarantor
identified by Idaho Power as of the date of such Renewable Resource PPA as
sufficient to satisfy Customer's performance of its aggregate obligations hereunder as
they relate to payment of amounts due from Customer with respect to
under such
REDACTED FIRST PRODUCTION
REQUEST TO IDAHO POWER COMPANY 2 JANUARY 24,2023
Renewable Resource PPA."Has the Customer delivered the Guaranty from
Guarantorto Idaho Power for the Pleasant Valley Solar PPA?What is
amount in the Guaranty?Please provide the workpaper that calculates
Section 11.l(II)of the Special Contract also states:
REQUESTNO.5:Section 1.35 defines Expected Energy,which means "
of Net Output in the first,full Contract Year,reduced by an
in the first Contract Year,and per Contract Year thereafter..."Please respond to the
following.
a.Please confirm that "reduced by an in the first
Contract Year"should have been "reduced by an in
the second Contract Year."Please explain.
b.Please explain why two different degradation factors are used.
c.Please describe the relationship between the Estimated Net Output Amount for each
month and the Expected Energy for each year.Specifically,when the Seller modifies
the Estimated Net Output Amount at the monthlylevel,is the Expected Energy for each
year re-calculated for that year based on the modified estimates,and recalculated with
the annual degradationfactor for the future years?
d.Section 1.35 also states:"[i]f at Final Completion the Facility's Nameplate Capacity
Rating is less than the Expected Nameplate Capacity Rating,Expected Energy shall be
reduced proportionallyper year for each full MW of Nameplate Capacity Rating below
the Expected Nameplate Capacity Rating."Please explain how the Expected Energy
information is used in the PPA and provide an example to illustrate how the reduction
is calculated.In addition,please explain,as a result of the reduction,how the Estimated
Net Output Amount at the monthlylevel will be adjusted accordingly.
REDACTED FIRST PRODUCTION
REQUEST TO IDAHO POWER COMPANY 3 JANUARY 24,2023
e.Please confirm that Expected Energy is a concept at the annual level,instead of the
monthlylevel.If so,please further confirm the "Expected Energy"stated in Section
7.12.1 and Section 7.12.2.2 should have been the "Estimated Net Output Amount,"
which is a concept at the monthlylevel.
REQUESTNO.6:Section 4.3.2 states:"[i]f Commercial Operation of the Facility is
achieved based on less than one hundred percent (100%)of the Expected Nameplate Capacity
Rating,then Seller in its discretion may inform Idaho Power,by written notice received no later
than ten (10)Business Days after the Commercial Operation Date,that Seller intends to bring the
Facility above the Required Percentage up to but not exceeding one hundred percent (100%)of the
Expected Nameplate Capacity Rating,together with a Final Completion Schedule for the
additional capacity that Seller intends to add."Should the first 100%have been the Required
Percentage,which is defined in Section 1.114?If not,please explain why.
REQUESTNO.7:Section 1.40 defines "Final Completion,"which means "following
the Commercial Operation Date when Commercial Operation of the Facility is achieved based on
less than one hundred percent (100%)of the Expected NameplateCapacity Rating,the
achievement by Seller of the conditions set forth in Section 4.2 (e)and (f)with respect to the
portion of the Facility at or greater than the Required Percentage of the Expected Nameplate
Capacity Rating as elected by Seller in its discretion pursuant to Section 4.3.2."Please respond
to the following.
a.Should the 100%have been the Required Percentage,which is defined in
Section 1.114?If not,please explain why.
b.If not and if the Facility is on the Commercial Operation Date to start
with,how is "the portion of the Facility at or greater than the Required
Percentage of the Expected Nameplate Capacity Rating"determined?
c.Should "the portion of the Facility at or greater than the Required Percentage of the
Expected Nameplate Capacity Rating"have been "the additional capacity Seller
added"?
REDACTED FIRST PRODUCTION
REQUEST TO IDAHO POWER COMPANY 4 JANUARY 24,2023
d.Does Section 1.40 intend to express the meaning that once 4.2 (e)and (f)are achieved
for the additional capacity Seller added,Final Completion is achieved?
REQUESTNO.8:According to Section 7.7.3,Seller shall provide an initial 12X24
forecast Net Output with the executed PPA and update this forecast at least every two years on a
mutually agreed upon schedule that is intended to coincide with the Integrated Resource Plan.
Please describe the relationship between this 12X24 forecast,the Estimated Net Output Amount
for each month,and the Expected Energy for each year.Specifically,are the updates of all three
synchronized?If so,please provide workpapers showing the synchronization.
REQUESTNO.9:Please provide an example of how Solar Energy Production
Forecasting Monthly Cost is determined for the first Contract Year,where there is no historical
data,and the second Contract Year,where there is historical data,according to Section 7.7.2.
REQUESTNO.10:Please confirm that,according to Section 3.1,before this PPA and
the Special Contract are approved,the Company cannot accept deliveries of Net Output and
Green Tags from the Seller.
REQUESTNO.11:Section 6.1.1 states that:"[bjetweenthe Effective Date and the
Commercial Operation Date,Seller shall sell and deliver to Idaho Power all Test Energy and Net
Output."Has the Pleasant Valley project delivered any Test Energy currently?If so,when did
the project start delivering Test Energy?If not,when will the project start delivering Test
Energy?
REQUESTNO.12:Mr.Tatum's Direct Testimony in Case No.IPC-E-21-42 states that
Brisbie anticipates beginning operations in .Please respond to the followingquestions.
a.Please explain if Brisbie still anticipates beginning operations in based on the
most recent information from Brisbie.
b.Please confirm that before the Commercial Operation Date,Test Energy generated by
REDACTED FIRST PRODUCTION
REQUEST TO IDAHO POWER COMPANY 5 JANUARY 24,2023
c.Please confirm that Brisbie will meet its entire load using energy from Idaho Power
and will pay the two-block rates contained in Schedule 33 before the Commercial
Operation Date of the Pleasant Valley project.
d.Please confirm that the Renewable Energy Credits ("RECs")associated with Test
Energy will be owned by Idaho Power and will not be owned by Brisbie.
REQUESTNO.13:Please explain how the amount of Facility Development Security
($90,000 per MW of Nameplate Capacity Rating)is determined.
REQUESTNO.14:Please explain how the amount of Default Security ($90,000per MW
of Nameplate Capacity Rating)is determined.
REQUESTNO.15:Section 7.12 states that Output Guarantee means 90%of the Expected
Energy of the Facility for a month less any quantities of Output that were not deliveredto the Point
of Delivery (or accepted by Idaho Power)in such month during periods constituting Seller
Uncontrollable Minutes.Please respond to the following.
a.According to Section 1.35,please confirm that the Expected Energy of the Facility for
a month is measured at the Point of Delivery.
b.If so,please explain the rationale behind the calculation.Specifically,why is the
Output Guarantee calculated as 90%of an amount measured at the Point of Delivery
minus an amount not delivered at the Point of Delivery.
c.Please explain why the Output Guarantee is set only based on a 90%floor without an
upper-limitceiling.
REQUESTNO.16:Please explain why Section 7.12.2.1 "Liquidated Damages for Output
Shortfall"does not consider transmission charges associated with moving replacement energy to
the Point of Delivery,which are considered in Section 12.2.1 "Remedy for Seller's
Failure to Deliver."
REDACTED FIRST PRODUCTION
REQUEST TO IDAHO POWER COMPANY 6 JANUARY 24,2023
REQUESTNO.17:Please explain why the Green Tags Price Component is not
considered in Section 1.130 "Seller's Cost to Cover,"but is considered in Section 1.58 "Idaho
Power's Cost to Cover."
REQUESTNO.18:Section 1.130 "Seller's Cost to Cover"states:"[fjor any days prior
to the Commercial Operation Date,the Seller's Cost to Cover shall be zero dollars ($0)."Please
explain if a similar treatment should be applied to Section 1.58 "Idaho Power's Cost to Cover."
(i.e."For any days prior to the Commercial Operation Date,Idaho Power's Cost to Cover shall be
zero dollars ($0)."
REQUESTNO.19:Please respond to the followingregarding Section 12.2.2 "Remedy
for Idaho Power's Failure to Purchase."
a.Please confirm that under the circumstance described in Section 12.2.2,Seller is
allowed to sell the Net Output and Green Tags not purchased by Idaho Power to third
parties.
b.This section states Idaho Power shall pay Seller an amount equal to Seller's Cost to
Cover multipliedby the amount of Net Output not purchased,less amounts received by
Seller pursuant to Section 12.6.Please provide an example to demonstrate the
calculation.
c.Why does Idaho Power not provide "additional transmission charges"to Seller
associated with moving the Net Output to the third party,which are considered in
Section 12.2.1 "Remedy for Seller's Failure to Deliver"?
d.Why does Idaho Power not provide "additional costs or expenses"incurred as a result
of Idaho Power's Default,which are considered in Section 12.2.1 "Remedy for
Seller's Failure to Deliver"?
REQUESTNO.20:What rate design does the Company intend to use to compensate
Brisbie for Capacity Value for energy delivered from this contract given the proceeding in Case
No.IPC-E-22-06?
REDACTED FIRST PRODUCTION
REQUEST TO IDAHO POWER COMPANY 7 JANUARY 24,2023
DATED at Boise,Idaho,this 24th day of January 2023.
Chris Burdin
Deputy Attorney General
i:umisc:prodreq/ipce22.29cbyy prod eq
REDACTED FIRST PRODUCTION
REQUEST TO IDAHO POWER COMPANY 8 JANUARY 24,2023
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 24TH DAY OF JANUARY 2023,SERVED THE FOREGOING REDACTED FIRST PRODUCTION REQUESTOFTHECOMMISSIONSTAFFTOIDAHOPOWERCOMPANY,IN CASE NO.IPC-E-22-29,BY E-MAILING A COPY THEREOF,TO THE FOLLOWING:
DONOVAN E WALKER TIM TATUMIDAHOPOWERCOMPANYCONNIEASCHENBRENNERPOBOX70IDAHOPOWERCOMPANYBOISEID83707-0070 PO BOX 70E-MAIL:[e-mail] BOISE ID [e-mail] E-MAIL:ttatum [e-mail] [e-mail]
SECRETARY
CERTIFICATEOF SERVICE