19901022IPC to Staff 13.pdf

SNAKE RIVER ../ :?-?¿;3
HYDROPOWER
I DAHR~El~crVVE R
FILED 0
90 OCT 22 Pll 2 3tt
COMPANY
BOX 70 . BOISE, IDAHO 83707
October 20, 1990
iDAHO PUBLIC
UTILITIES COMMISSION/?p~
Mrs. Myrna J. Walters
Secretary
Idaho Public Utilities Commission
Statehouse
Boi se, Idaho 83720
Re: Response to Commission Staff's Second Production Request
Case No. IPC-E-90-8
Dear Mrs. Walters:
Please find enclosed for filing an original and three (3) copies ofIdaho Power Company's Response to Commission Staff's Second Production
Request.
I f you have any questions, please feel free to call me.
Sincerely,
CX¿v ~ MßLarryCi R;pieÝ~
Attorney
LDR:mmb
Enclosures
..4 ..
LARRY D. RIPLEY
c/o Idaho Power Company
P. O. Box 70
Boi se, Idaho 83707
[phone]
STEVEN L. HERNDON
IDAHO POWER COMPANY
P. O. Box 70
Boi se, ID 83707
[phone]
RECEIVED II
FILED 0
SO aCT 22 pr~ 2 3~
'rc A 'J
ii-" Iih"IiO PUBLICU i iLl nES COMMISSION
Attorneys for Idaho Power Company
Street Address for Express Mail:
1220 West Idaho Street
Boi se, Idaho 83702
FAX Telephone No. [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR A )
CERTIFICATE OF PUBLIC CONVENIENCE )
AND NECESSITY FOR THE RATE BASING )
OF THE MILNER HYDROELECTRIC PROJECT )
OR IN THE ALTERNATIVE )
A DETERMINATION OF EXEMPT STATUS )
FOR THE MILNER HYDROELECTRIC )PROJECT )
)
CASE NO. IPC-E-90-8
RESPONSE TO COMMISSION STAFF'S
SECOND PRODUCTION REQUEST
COMES NOW, Idaho Power Company and in response to the Second
Production Request of the Commission Staff dated October 9, 1990, herewith
submi ts the fo 11 owi ng i nformat ion:
REQUEST
13 On page 9 of your App 1 i cat i on you state:
Depending upon the number of water years util ized in the
computation, the cost per kilowatt hour would range from a
maximum of 52.93 mi 11 s per ki 1 owatt hour based upon a cost for
RESPONSE
13
..
the powerhouse of $63,350,600, 60 years of water data and a 50
year levelized cost; to 37.80 mills per kilowatt hour based
upon a powerhouse cost of $60,334,000, 20 years of water data
and a 50 year level ized cost . . .
Pl ease provi de copi es of all workpapers, documents and
underlying data used to determine the foregoing cost
est i mates for the Mi 1 ner project.
The requested i nformat ion is attached.
The information was prepared under the direction and supervision of
J. LaMont Keen, Control 1 er, Idaho Power Company. Mr. Keen is a
witness in the Milner Proceeding.
DATED th is 19th day of October, 1990.
2
.....
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on this 19th day of October, 1990, I mailed a
true and correct copy of the within and foregoing, RESPONSE TO COMMISSION STAFF'S
SECOND PRODUCTION REQUEST, postage prepaid and addressed as follows:
Mr. Harold C. Miles
316 Fi fteenth Avenue South
Nampa, ID 83651
Grant E. Tanner
DAVIS WRIGHT TREMAINE
1300 SW Fi fth Avenue
Suite 2300
Portland, OR 97201
R. Mi chae 1 Southcombe
CL emons, Cosho & Humphrey, P. A.
815 West Washington
Boise, ID 83702
R. Scott Pasl ey
Ass i stant General Counsel
J. R. Simplot Company
P.O. Box 27
Boise, ID 83707
David H. Hawk
Di rector, Energy Natural Resources
J. R. Simplot Company
P. O. Box 27
Boise, ID 83707
Owen H. Orndorff
Orndorff & Peterson
1097 West River Street, Suite 230
Boi se, ID 83702
Peter J. Richardson
DAVIS WRIGHT TREMAINE
Jefferson PL ace, Sui te 400
350 N. Ninth
Boise, ID 83702
James N. Roethe
Pi 11 sbury, Madi son & Sutro
P . 0 . Box 7880
San Francisco, CA 94120
Michael S. Gilmore
Brad M. Purdy
Idaho Public Utilities Commission
Statehouse Ma i 1
Boi se, ID 83720-0001
3
.
Idaho Power Company
Milner Hydroelectric Project
Assumptions
Cost of Capital
Debt
Preferred Stock
Common Stock
Total Composite Rate
Financing for Dam Rehabiltation is at 10% over a 20 Year Term
Taxes
Federal Tax Rate
Composite Tax Rate
Tax Life
Tax Method is MACRS with half year convention
Ad Valorem Rate
Kwh Taxes
Project Characteristics
Expected Facilty Cost
Capped Facilty Cost
Generation - 60 Yr Water
Generation - 20 Yr Water
Dam Rehabliitation Cost
Operating Assumptions
Annual O&M Cost
Ferc license cost
Headwater Benefit Costs
Insurance (% of Capital Cost)
Mitigation Cost First 5 Years
Mitigation Cost After 5 Years
Water Bank Payment
Capitalized Mitigation
Escalation Rate
.
Percent
50.00%
10.00%
40.00%
34.00%
38.10%
20 Years
0.7381%
.5 Mils
$60,333,900
$63,350,600
194.7 Mwhs
268.4 Mwhs
$11,721,900
$272,217
$60,743
$16,873
0.06854%
$40,424
$12,284
9,500 Acre Feet at 2.925/AF
$613,400
4.00%
Rate
10.00%
9.50%
12.25%
10.85%
"
. Idaho Power Company .Owership Feasibility Analysis
Milner Hydroelectric Project
Investment is $60,333,900 with 20 Years of Water
.,
Assumptions-------------------------Description Amount
Sumary Of Results-------------------------Descripton Amount
FinancingCompositionDebtPreferredCommonTotalCostDebtPreferred
CommonTotal
Discount Rate
Taxes
Tax Life
Declining Rate
Composite Tax Rate
Deferred Tax Rate
Facilitr
Tota Investment
Annual Generation,KWH
OperationO&M Variable,Mills
O&M Esc Rate
Property Tax
Property Tax Esc
Property Insurance
Insurance EscRl tr Esc (Every 5 Yrs)
MitLgation Exp, 5 Yrs
Mitigation Exp, ongoing
Water Bank Payment
Cnstr Loan Debt Service
Cnstr Loan Debt TermKH Tax, MillsKH Tax! $CapitalLzed Mitigation
50.000%10.000%40.000%100.000%
10.000%9.500%12.250%10.850%10.850%
Total Cost
P.V. Cost
Levelized Annual Paymt
Levelized Mills/KW
352,162
92,697
10,146
37.80
20
150.00%38.10%34.00%
$60,333.9268,400,000
1.304.000%0.738%0.000%0.06854%4.000%30.000%40.412.327.81,376.850200.50
134-613.4
...Idaho Power Company .
Ownership Feasibility Analysis
Milner Hydroelectric Project
"
Carrying Total Property Other Total P. v.P.v.
Year Costs O&M Tax & Ins Expenses Cost Factors Cost----------------------------------------------------------------------------
1 9,849 350 487 1,757 12,442 0.9021 11,225
2 9,423 364 488 1,760 12,035 0.8138 9,794
3 9,113 378 490 1,763 11,745 0.7342 8,623
4 8,818 394 492 1,767 11,470 0.6623 7,597
5 8,535 409 494 1,770 11,208 0.5975 6,697
6 8,264 426 496 1,725 10,910 0.5390 5,881
7 8,004 443 498 1,727 10,671 0.4862 5,189
8 7,754 460 500 1,729 10,443 0.4386 4,581
9 7,498 479 502 1,731 10,210 0.3957 4,040
10 7,241 498 504 1,733 9,976 0.3570 3,561
11 6,984 518 507 1,736 9,744 0.3220 3,138
12 6,726 539 509 1,738 9,512 0.2905 2,763
13 6,469 560 512 1,740 9,281 0.2621 2,432
14 6,212 582 514 1,743 9,051 0.2364 2,140
15 5,954 606 517 1,746 8,823 0.2133 1,882
16 5,697 630 520 1,748 8,595 0.1924 1,654
17 5,439 655 523 1,827 8,445 0.1736 1,466
18 5,182 681 526 1,830 8,220 0.1566 1,287
19 4,925 709 529 1,833 7,996 0.1413 1,130
.20 4,667 737 532 1,837 7,774 0.1274 991
21 4,532 767 536 489 6,324 0.1150 727
22 4,463 797 540 592 6,392 0.1037 663
23 4,338 829 543 595 6,306 0.0936 590
24 4,213 8&2 547 599 6,222 0.0844 525
25 4,088 897 551 603 6,139 0.0761 467
26 3,963 933 556 607 6,058 0.0687 416
27 3,838 970 560 740 6,108 0.0620 378
28 3,713 1,009 565 745 6,031 0.0559 337
29 3,588 1,049 569 749 5,955 0.0504 300
30 3,463 1,091 574 754 5,882 0.0455 268
31 3,337 1,135 579 759 5,811 0.0410 238
32 3,212 1,180 585 931 5,908 0.0370 219
33 3,087 1,227 590 937 5,842 0.0334 195
34 2,962 1,276 596 942 5,777 0.0301 174
35 2,837 1,327 602 948 5,715 0.0272 155
36 2,712 1,380 609 954 5,655 0.0245 139
37 2,587 1,436 615 1,178 5,815 0.0221 129
38 2,462 1,493 622 1,184 5,761 0.0200 115
39 2,337 1,553 629 1,191 5,710 0.0180 103
40 2,212 1,615 636 1,198 5,661 0.0162 92
41 2,087 1,680 644 1,206 5,616 0.0146 82
42 1,961 1,747 652 1,496 5,856 0.0132 77
43 1,836 1,817 660 1,504 5,817 0.0119 69
44 1,711 1,889 669 1,512 5,781 0.0108 62
45 1,586 1,965 678 1,521 5,749 0.0097 56
46 1,461 2,043 687 1,530 5,721 0.0088 50----------------------------------------------------------------------------
Total 221,341 44,383 25,731 60,106 352,162 9.1359 92,697
Level 7,473 529 508 1,636 10,146
'.
. Idaho Power Company 4I
Ownership Feasibility AnalysLs
Milner Hydroelectric Project
Carrying Cost Assumptions Book Deferred Deferred Earnings---------------------------------
Description Amount Year Depr Taxes I.T.C.Base---------------------------------------------------------------------------------
Financing 1 2.17 0.54 0.00 97.29com~sition 2 2.17 1. 72 0.00 93.40ebt50.000%3 2.l7 1.53 0.00 89.70
Preferred 10.000%4 2.17 1.36 0.00 86.16
Common 40.000%5 2.17 1.20 0.00 82.78
Total 100.000%6 2.17 1.06 0.00 79.55
Cost 7 2.17 0.92 0.00 76.46
Debt 10.000%8 2.17 0.80 0.00 73.48
Preferred 9.500%9 2.17 0.78 0.00 70.53
Common 12.250%10 2.17 0.78 0.00 67.58Total10.850%11 2.17 0.78 0.00 64.63
Discount Rate 10.850%12 2.17 0.78 0.00 61.68
13 2.17 0.78 0.00 58.72
Taxes 14 2.17 0.78 0.00 55.77
MACRS Tax Life 20 15 2.17 0.78 0.00 52.82
Composite Rate 38.10%16 2.17 0.78 0.00 49.87
Deferred Rate 34.00%17 2.17 0.78 0.00 46.92
18 2.17 0.78 0.00 43.97Facilitr192.17 0.78 0.00 41.01Tota Invest 60,334 20 2.17 0.78 0.00 38.06
21 2.17 0.02 0.00 35.87
22 2.17 -0.74 0.00 34.43
23 2.17 -0.74 0.00 33.00
24 2.17 -0.74 0.00 31.57
25 2.17 -0.74 0.00 30.13
26 2.17 -0.74 0.00 28.70
27 2.17 -0.74 0.00 27.26
28 2.17 -0.74 0.00 25.83
29 2.17 -0.74 0.00 24.39
30 2.17 -0.74 0.00 22.96
31 2.17 -0.74 0.00 21.52
32 2.17 -0.74 0.00 20.09
33 2.17 -0.74 0.00 18.65
34 2.17 -0.74 0.00 17.22
35 2.17 -0.74 0.00 15.78
36 2.17 -0.74 0.00 14.35
37 2.17 -0.74 0.00 12.91
38 2.17 -0.74 0.00 11.48
39 2.17 -0.74 0.00 10.04
40 2.17 -0.74 0.00 8.61
41 2.17 -0.74 0.00 7.17
42 2.17 -0.74 0.00 5.74
43 2.17 -0.74 0.00 4.30
44 2.17 -0.74 0.00 2.87
45 2.17 -0.74 0.00 1.43
46 2.17 -0.74 0.00 0.00------------------------------
Total 100.00 0.00 0.00
'..Idaho Power Company .
Ownership Feasibility Analysis
Milner Hydroelectric Project
Total TotalAverageBookTaxInterestTax Tax
Year Return Charges Depr I.T.C.Expense Deductions Base--------------------------------------------------------------------------------
1 10.70 13.41 3.75 0.00 4.93 8.68 4.73
2 10.35 14.23 7.22 0.00 4.77 11.99 2.25
3 9.93 13.64 6.68 0.00 4.58 11.25 2.38
4 9.54 13.08 6.18 0.00 4.40 10.57 2.50
5 9.17 12.54 5.71 0.00 4.22 9.94 2.61
6 8.81 12.04 5.28 0.00 4.06 9.34 2.70
7 8.46 11.56 4.89 0.00 3.90 8.79 2.77
8 8.13 11.11 4.52 0.00 3.75 8.27 2.84
9 7.81 10.76 4.46 0.00 3.60 8.06 2.70
10 7.49 10.44 4.46 0.00 3.45 7.91 2.53
11 7.17 10.12 4.46 0.00 3.31 7.77 2.36
12 6.85 9.80 4.46 0.00 3.16 7.62 2.18
13 6.53 9.48 4.46 0.00 3.01 7.47 2.01
14 6.21 9.16 4.46 0.00 2.86 7.32 1.84
15 5.89 8.84 4.46 0.00 2.71 7.18 1.67
16 5.57 8.52 4.46 0.00 2.57 7.03 1.49
17 5.25 8.20 4.46 0.00 2.42 6.88 1.32
18 4.93 7.88 4.46 0.00 2.27 6.73 1.15
19 4.61 7.56 4.46 0.00 2.12 6.59 0.98
20 4.29 7.24 4.46 0.00 1.98 6.44 0.80
21 4.01 6.20 2.23 0.00 1.85 4.08 2.13
22 3.81 5.25 0.00 0.00 1. 76 1. 76 3.49
23 3.66 5.09 0.00 0.00 1.69 1.69 3.41
24 3.50 4.94 0.00 0.00 1.61 1.61 3.32
25 3.35 4.78 0.00 0.00 1.54 1.54 .3.24
26 3.19 4.63 0.00 0.00 1.47 1.47 3.16
27 3.04 4.47 0.00 0.00 1.40 1.40 3.07
28 2.88 4.31 0.00 0.00 1.33 1.33 2.99
29 2.72 4.16 0.00 0.00 1.26 1.26 2.90
30 2.57 4.00 0.00 0.00 1.18 1.18 2.82
31 2.41 3.85 0.00 0.00 1.11 1.11 2.74
32 2.26 3.69 0.00 0.00 1.04 1.04 2.65
33 2.l0 3.54 0.00 0.00 0.97 0.97 2.57
34 1.95 3.38 0.00 0.00 0.90 0.90 2.48
35 1. 79 3.23 0.00 0.00 0.83 0.83 2.40
36 1.63 3.07 0.00 0.00 0.75 0.75 2.32
37 1.48 2.91 0.00 0.00 0.68 0.68 2.23
38 1.32 2.76 0.00 0.00 0.61 0.61 2.15
39 1.17 2.60 0.00 0.00 0.54 0.54 2.06
40 1.01 2.45 0.00 0.00 0.47 0.47 1.98
41 0.86 2.29 0.00 0.00 0.39 0.39 1.90
42 0.70 2.14 0.00 0.00 0.32 0.32 1.81
43 0.54 1.98 0.00 0.00 0.25 0.25 1. 73
44 0.39 1.82 0.00 0.00 0.18 0.18 1.64
45 0.23 1.67 0.00 0.00 0.11 0.11 1.56
46 0.08 1.51 0.00 0.00 0.04 0.04 1.48----------------------------------------------------------------------
Total 200.37 300.37 100.00 0.00 92.33 192.33 108.03
':
. Idaho Power Company .
Ownership Feasibility Analysis
Milner Hydroelectric Project
Composite NetTaxesIncome Total P.V.P.v.
Year Bef ITC I.T.C.Taxes Cost Factors Cost----------------------------------------------------------------------
1 2.91 0.00 2.91 16.32 0.90 14.73
2 1.38 0.00 1.38 15.62 0.81 12.71
3 1.47 0.00 1.47 15.11 0.73 11.09
4 1.54 0.00 1.54 14.62 0.66 9.68
5 1.60 0.00 1.60 14.15 0.60 8.45
6 1.66 0.00 1.66 13.70 0.54 7.38
7 1.71 0.00 1.71 13.27 0.49 6.45
8 1. 75 0.00 1. 75 12.85 0.44 5.64
9 1.66 0.00 1.66 12.43 0.40 4.92
10 1.56 0.00 1.56 12.00 0.36 4.28
11 1.45 0.00 1.45 11.57 0.32 3.73
12 1.34 0.00 1.34 11.15 0.29 3.24
13 1.24 0.00 1.24 10.72 0.26 2.81
14 1.13 0.00 1.13 10.30 0.24 2.43
15 1.03 0.00 1.03 9.87 0.21 2.10
16 0.92 0.00 0.92 9.44 0.19 1.82
17 0.81 0.00 0.81 9.02 0.17 1.56
18 0.71 0.00 0.71 8.59 0.16 1.34
19 0.60 0.00 0.60 8.16 0.14 1.15
20 0.49 0.00 0.49 7.74 0.13 0.99
21 1.31 0.00 1.31 7.51 0.11 0.86
22 2.15 0.00 2.15 7.40 0.10 0.77
23 2.10 0.00 2.10 7.19 0.09 0.67
24 2.05 0.00 2.05 6.98 0.08 0.59
25 1.99 0.00 1.99 6.78 0.08 0.52
26 1.94 0.00 1.94 6.57 0.07 0.45
27 1.89 0.00 1.89 6.36 0.06 0.39
28 1.84 0.00 1.84 6.15 0.06 0.34
29 1. 79 0.00 1. 79 5.95 0.05 0.30
30 1. 74 0.00 1. 74 5.74 0.05 0.26
31 1.68 0.00 1.68 5.53 0.04 0.23
32 1.63 0.00 1.63 5.32 0.04 0.20
33 1.58 0.00 1.58 5.12 0.03 0.17
34 1.53 0.00 1.53 4.91 0.03 0.15
35 1.48 0.00 1.48 4.70 0.03 0.13
36 1.43 0.00 1.43 4.49 0.02 0.11
37 1.37 0.00 1.37 4.29 0.02 0.09
38 1.32 0.00 1.32 4.08 0.02 0.08
39 1.27 0.00 1.27 3.87 0.02 0.07
40 1.22 0.00 1.22 3.67 0.02 0.06
41 1.17 0.00 1.17 3.46 0.01 0.05
42 1.12 0.00 1.12 3.25 0.01 0.04
43 1.06 0.00 1.06 3.04 0.01 0.04
44 1.01 0.00 1.01 2.84 0.01 0.03
45 0.96 0.00 0.96 2.63 0.01 0.03
46 0.91 0.00 0.91 2.42 0.01 0.02------------------------------------------------------------
Total 66.49 0.00 66.49 366.86 9.14 113.16
..,
Aent
..Rate Generatio0.0 142 01.5 50 752.0 25 502.5 51 129Total268254
Debt Incentive calitai Mitigation Water KW Total
Year Service Royalty Royalty I ems 5 Yr Ongoing Bank Tax other------------------------------------------------------------------------------
1 1,377 (26)254 ($62 )40 12 28 134 1,757
2 1,377 (26)254 ~62 )42 13 29 134 1,760
3 1,377 (26)254 62 )44 13 30 134 1,763
4 1,377 (26)254 (62 )45 14 31 134 1,767
5 1,377 (26)254 (62 )47 14 33 134 1,770
6 1,377 (26)254 (62 )0 15 34 134 1,725
7 1,377 (26 )254 (62 )0 16 35 134 1,727
8 1,377 (26)254 (62 )0 16 37 134 1,729
9 1,377 (26 )254 (62 )0 17 38 134 1,731
10 1,377 (26)254 (62 )0 17 40 134 1,733
11 1,377 (26)254 (62 )0 18 41 134 1,736
12 1,377 (26 )254 (62 )0 19 43 134 1,738
13 1,377 (26)254 (62 )0 20 44 134 1,740
14 1,377 (26)254 (62 )0 20 46 134 1,743
15 1,377 (26)254 (62 )0 21 48 134 1,746
16 1,377 (26)254 (62 )0 22 50 134 1,748
17 1,377 (26)330 (62)0 23 52 134 1,827
18 1,377 (26)330 (62 )0 24 54 134 1,830
19 1,377 ~26)330 (62 )0 25 56 134 1,833
20 1,377 26)330 (62 )0 26 59 134 1,837
21 0 0 330 (62)0 27 61 134 489
22 0 0 428 (62 )0 28 63 134 592
23 0 0 428 ~62)0 29 66 134 595
24 0 0 428 62 )0 30 68 134 599
25 0 0 428 (62 )0 31 71 134 603
26 0 0 428 (62 )0 33 74 134 607
27 0 0 557 (62 )0 34 77 134 740
28 0 0 557 (62 )0 35 80 134 745
29 0 0 557 (62 )0 37 83 134 749
30 0 0 557 (62)0 38 87 134 754
31 0 0 557 (62 )0 40 90 134 759
32 0 0 724 (62 )0 41 94 134 931
33 0 0 724 (62 )0 43 97 134 937
34 0 0 724 (62 )0 45 101 134 942
35 0 0 724 (62 )0 47 ios 134 948
36 0 0 724 (62 )0 48 110 134 954
37 0 0 941 (62 )0 50 114 134 1,178
38 0 0 941 (62 )0 52 119 134 1,184
39 0 0 941 (62 )0 55 123 134 1,191
40 0 0 941 (62 )0 57 128 134 1,198
41 0 0 941 (62 )0 59 133 134 1,206
42 0 0 1,224 (62 )0 61 139 134 1,496
43 0 0 1,224 (62 )0 64 144 134 1,504
44 0 0 1,224 (62 )0 66 150 134 1,512
45 0 0 1,224 (62)0 69 156 134 1,521
46 0 0 1,224 (62)0 72 162 134 1,530------------------------------------------------------------------------
Total 27,537 (524)25,075 (2,857)219 1,558 3,525 6,173 60,706
P. v.11,073 (211)2,709 (567)161 170 384 1,226 14,945
(~ 10%)11,722 (223 )
. Idaho Power Company .
Ownership Feasibility Analysis
Milner Hydroelectric Project
Investment is $63,350,600 with 60 Years of Water
AssumptionsDescr ipt ion Amount Sumary Of Results-------------------------Descripton Amount
FinancingCompositionDebtPreferred
CommonTotalCostDebtPreferred
CommonTotal
Discount Rate
Taxes
Tax Life
Declining Rate
Composite Tax Rate
Deferred Tax Rate
Facilitr
Tota Investment
Annual Generation,KWH
Opration
O&M Variable, Mills
O&M Esc Rate
Property Tax
Property Tax Esc
Property Insurance
Insurance Esc
Rltr Esc (Every 5 Yrs)
MitLgation Exp, 5 Yrs
Mitigation Exp, Ongoing
Water Bank Payment
Cnstr Loan Debt Service
Cnstr Loan Debt TermKH Tax, MillsKH Tax, $
Capitalized Mitigation
50.000%10.000\40.000%100.000%
10.000%
9.500%12.250%10.850%10.850%
Total Cost
P.V. Cost
Levelized Annual Paymt
Levelized Mills/KWH
20150.00%38.10%34.00%
$63,350.6194,700,000
1.804.000%0.738%0.000\0.06854%
4.000%30.000%40.412.327.81,376.850
200.5097-613.4
345,699
94,156
10,306
52.93
f .-\.Idaho Power Company .
Ownership Feasibility Analysis
Milner Hydroelectric Project
Carrying Total Property other Total P. v.P.v.
Year Costs O&M Tax & Ins Expenses Cost Factors Cost----------------------------------------------------------------------------
1 10,342 350 511 1,547 12,749 0.9021 11,501
2 9,894 364 513 1,550 12,321 0.8138 10,027
3 9,569 378 515 1,553 12,015 0.7342 8,821
4 9,259 394 516 1,557 11,726 0.6623 7,766
5 8,962 409 518 1,560 11,450 0.5975 6,841
6 8,677 426 520 1,515 11,138 0.5390 6,004
7 8,404 443 523 1,517 10,886 0.4862 5,293
8 8,142 460 525 1,519 10,646 0.4386 4,670
9 7,873 479 527 1,521 10,400 0.3957 4,115
10 7,603 498 529 1,523 10,154 0.3570 3,625
11 7,333 518 532 1,526 9,908 0.3220 3,191
12 7,063 539 534 1,528 9,664 0.2905 2,807
13 6,792 560 537 1,530 9,420 0.2621 2,469
14 6,522 582 540 1,533 9,178 0.2364 2,170
15 6,252 606 543 1,536 8,936 0.2133 1,906
16 5,982 630 546 1,538 8,696 0.1924 1,673
17 5,711 655 549 1,565 8,481 0.1736 1,472
18 5,441 681 552 1,568 8,243 0.1566 1,291
19 5,171 709 556 1,572 8,007 0.1413 1,131
20 4,901 737 559 1,575 7,772 0.1274 990
21 4,759 767 563 228 6,316 0.1150 726
22 4,686 797 567 262 6,313 0.1037 655
23 4,555 829 570 266 6,221 0.0936 582
24 4,424 862 575 270 6,130 0.0844 517
25 4,292 897 579 274 6,042 0.0761 460
26 4,161 933 583 278 5,955 0.0687 409
27 4,030 970 588 323 5,911 0.0620 366
28 3,898 1,009 593 327 5,827 0.0559 326
29 3,767 1,049 598 332 5,746 0.0504 290
30 3,636 1,091 603 337 5,667 0.0455 258
31 3,504 1,135 608 342 5,589 0.0410 229
32 3,373 1,180 614 400 5,567 0.0370 206
33 3,242 1,227 620 405 5,494 0.0334 183
34 3,110 1,276 626 411 5,424 0.0301 163
35 2,979 1,327 632 417 5,356 0.0272 146
36 2,848 1,380 639 423 5,290 0.0245 130
37 2,716 1,436 646 498 5,296 0.0221 117
38 2,585 1,493 653 505 5,236 0.0200 104
39 2,454 1,553 660 512 5,178 0.0180 93
40 2,322 1,615 668 519 5,124 0.0162 83
41 2,191 1,680 676 526 5,073 0.0146 74
42 2,059 1,747 684 623 5,114 0.0132 68
43 1,928 1,817 693 63l 5,069 0.0119 60
44 1,797 1,889 702 640 5,028 0.0108 54
45 1,665 1,965 711 648 4,990 0.0097 48
46 1,534 2,043 721 657 4,956 0.0088 43----------------------------------------------------------------------------
Total 232,408 44,383 27,018 41,889 345,699 9.1359 94,156
Level 7,847 529 533 1,396 10,306
.. .., I(
Idaho Power COmpany .
Ownership Feasibility AnalysLs
Milner Hydroelectric project
Carrying Cost Assumptions Deferred Deferred Earnings---------------------------------BookDescriptionAmountYearDepr Taxes I.T.C.Base--------------------------------_._---------------------------------------------_.-
Financing 1 2.17 0.54 0.00 97.29Composition22.17 1. 72 0.00 93.40Debt50.000%3 2.17 1.53 0.00 89.70Preferred10.000%4 2.17 1.36 0.00 86.16
Common 40.000%5 2.17 1.20 0.00 82.78Total100.000%6 2.17 1.06 0.00 79.55Cost72.17 0.92 0.00 76.46Debt10.000%8 2.17 0.80 0.00 73.48Preferred9.500%9 2.17 0.78 0.00 70.53
Common 12.250%10 2.17 0.78 0.00 67.58Total10.850%11 2.17 0.78 0.00 64.63
Discount Rate 10.850%12 2.17 0.78 0.00 61.68
13 2.17 0.78 0.00 58.72
Taxes 14 2.17 0.78 0.00 55.77
MACRS Tax Life 20 15 2.17 0.78 0.00 52.82Composite Rate 38.10%16 2.17 0.78 0.00 49.87
Deferred Rate 34.00%17 2.17 0.78 0.00 46.92
18 2.17 0.78 0.00 43.97Facilitr192.17 0.78 0.00 41.01Tota Invest 63,351 20 2.17 0.78 0.00 38.06
21 2.17 0.02 0.00 35.87
22 2.17 -0.74 0.00 34.43
23 2.17 -0.74 0.00 33.00
24 2.17 -0.74 0.00 31.57
25 2.17 -0.74 0.00 30.13
26 2.17 -0.74 0.00 28.70
27 2.17 -0.74 0.00 27.26
28 2.17 -0.74 0.00 25.83
29 2.17 -0.74 0.00 24.39
30 2.17 -0.74 0.00 22.96
31 2.17 -0.74 0.00 21.52
32 2.17 -0.74 0.00 20.09
33 2.17 -0.74 0.00 18.65
34 2.17 -0.74 0.00 17.22
35 2.17 -0.74 0.00 15.78
36 2.17 -0.74 0.00 14.35
37 2.17 -0.74 0.00 12.91
38 2.17 -0.74 0.00 11.48
39 2.17 -0.74 0.00 10.04
40 2.17 -0.74 0.00 8.61
41 2.17 -0.74 0.00 7.17
42 2.17 -0.74 0.00 5.74
43 2.17 -0.74 0.00 4.30
44 2.17 -0.74 0.00 2.87
45 2.17 -0.74 0.00 1.43
46 2.17 -0.74 0.00 0.00------------------------------
Total 100.00 0.00 0.00
.. .-".Idaho Power copany ·Ownership Feasibility Anaiy~
Milner Hydroelectric Project
Total Total
. Average Book Tax Interest Tax Tax
Year Return Charges Depr I.T.C.Expense Deductions Base-------------------------------------_._-----------------------------------------
1 10.70 13.41 3.75 0.00 4.93 8.68 4.73
2 10.35 14.23 7.22 0.00 4.77 11.99 2.25
3 9.93 13.64 6.68 0.00 4.58 11.25 2.38
4 9.54 13.08 6.18 0.00 4.40 10.57 2.50
5 9.17 12.54 5.71 0.00 4.22 9.94 2.61
6 8.81 12.04 5.28 0.00 4.06 9.34 2.70
7 8.46 11.56 4.89 0.00 3.90 8.79 2.77
8 8.13 11.11 4.52 0.00 3.75 8.27 2.84
9 7.81 10.76 4.46 0.00 3.60 8.06 2.70
10 7.49 10.44 4.46 0.00 3.45 7.91 2.53
11 7.17 10.12 4.46 0.00 3.31 7.77 2.36
12 6.85 9.80 4.46 0.00 3.16 7.62 2.18
13 6.53 9.48 4.46 0.00 3.01 7.47 2.01
14 6.21 9.16 4.46 0.00 2.86 7.32 1.84
15 5.89 8.84 4.46 0.00 2.71 7.18 1.67
16 5.57 8.52 4.46 0.00 2.57 7.03 1.49
17 5.25 8.20 4.46 0.00 2.42 6.88 1.32
18 4.93 7.88 4.46 0.00 2.27 6.73 1.15
19 4.61 7.56 4.46 0.00 2.12 6.59 0.98
20 4.29 7.24 4.46 0.00 1.98 6.44 0.80
21 4.01 6.20 2.23 0.00 1.85 4.08 2.13
22 3.81 5.25 0.00 0.00 1. 76 1. 76 3.49
23 3.66 5.09 0.00 0.00 1.69 1.69 3.41
24 3.50 4.94 0.00 0.00 1.61 1.61 3.32
25 3.35 4.78 0.00 0.00 1.54 1.54 3.24
26 3.19 4.63 0.00 0.00 1.47 1.47 3.16
27 3.04 4.47 0.00 0.00 1.40 1.40 3.07
28 2.88 4.31 0.00 0.00 1.33 1.33 2.99
29 2.72 4.16 0.00 0.00 1.26 1.26 2.90
30 2.57 4.00 0.00 0.00 1.18 1.18 2.82
31 2.41 3.85 0.00 0.00 1.11 1.11 2.74
32 2.26 3.69 0.00 0.00 1.04 1.04 2.65
33 2.10 3.54 0.00 0.00 0.97 0.97 2.57
34 1.95 3.38 0.00 0.00 0.90 0.90 2.48
35 1. 79 3.23 0.00 0.00 0.83 0.83 2.40
36 1.63 3.07 0.00 0.00 0.75 0.75 2.32
37 1.48 2.91 0.00 0.00 0.68 0.68 2.23
38 1.32 2.76 0.00 0.00 0.61 0.61 2.15
39 1.17 2.60 0.00 0.00 0.54 0.54 2.06
40 1.01 2.45 0.00 0.00 0.47 0.47 1.98
41 0.86 2.29 0.00 0.00 0.39 0.39 1.90
42 0.70 2.14 0.00 0.00 0.32 0.32 1.81
43 0.54 1.98 0.00 0.00 0.25 0.25 1.73
44 0.39 1.82 0.00 0.00 0.18 0.18 1.64
45 0.23 1.67 0.00 0.00 0.11 0.11 1.56
46 0.08 1.51 0.00 0.00 0.04 0.04 1.48----------------------------------------------------------------------
Total 200.37 300.37 100.00 0.00 92.33 192.33 108.03
~.Idaho Power Company .
Ownership Feasibility Analy s
Milner Hydroelectric Project
Composite NetTaxesIncome Total P.V.P.V.Year Bef ITC I. T. C.Taxes Cost Factors Cost----_._-------------------------------------------------_._----------_._-
1 2.91 0.00 2.91 16.32 0.90 14.73
2 1.38 0.00 1.38 15.62 0.81 12.71
3 1.47 0.00 1.47 15.11 0.73 11.09
4 1.54 0.00 1.54 14.62 0.66 9.68
5 1.60 0.00 1.60 14.15 0.60 8.45
6 1.66 0.00 1.66 13.70 0.54 7.38
7 1.71 0.00 1.71 13.27 0.49 6.45
8 1. 75 0.00 1. 75 12.85 0.44 5.64
9 1.66 0.00 1.66 12.43 0.40 4.92
10 1.56 0.00 1.56 12.00 0.36 4.28
11 1.45 0.00 1.45 11.57 0.32 3.73
12 1.34 0.00 1.34 11.15 0.29 3.24
13 1.24 0.00 1.24 10.72 0.26 2.81
14 1.13 0.00 1.13 10.30 0.24 2.43
15 1.03 0.00 1.03 9.87 0.21 2.10
16 0.92 0.00 0.92 9.44 0.19 1.82
17 0.81 0.00 0.81 9.02 0.17 1.56
18 0.71 0.00 0.71 8.59 0.16 1.34
19 0.60 0.00 0.60 8.16 0.14 1.15200.49 0.00 0.49 7.74 0.13 0.99
21 1.31 0.00 1.31 7.51 0.11 0.86
22 2.15 0.00 2.15 7.40 0.10 0.77
23 2.10 0.00 2.10 7.19 0.09 0.67242.05 0.00 2.05 6.98 0.08 0.59
25 1.99 0.00 1.99 6.78 0.08 0.52261.94 0.00 1.94 6.57 0.07 0.45
27 1.89 0.00 1.89 6.36 0.06 0.39
28 1.84 0.00 1.84 6.15 0.06 0.34291. 79 0.00 1. 79 5.95 0.05 0.30
30 1. 74 0.00 1. 74 5.74 0.05 0.26311.68 0.00 1.68 5.53 0.04 0.23
32 1.63 0.00 1.63 5.32 0.04 0.20
33 1.58 0.00 1.58 5.12 0.03 0.17
34 1.53 0.00 1.53 4.91 0.03 0.15351.48 0.00 1.48 4.70 0.03 0.13
36 1.43 0.00 1.43 4.49 0.02 0.11
37 1.37 0.00 1.37 4.29 0.02 0.09
38 1.32 0.00 1.32 4.08 0.02 0.08391.27 0.00 1.27 3.87 0.02 0.07
40 1.22 0.00 1.22 3.67 0.02 0.06
41 1.17 0.00 1.17 3.46 0.01 0.05
42 1.12 0.00 1.12 3.25 0.01 0.04
43 1.06 0.00 1.06 3.04 0.01 0.04441.01 0.00 1.01 2.84 0.01 0.03
45 0.96 0.00 0.96 2.63 0.01 0.03460.91 0.00 0.91 2.42 0.01 0.02------------------------------------------------------------
Total 66.49 0.00 66.49 366.86 9.14 113.16
.... "~ ~-.
Rate Generatio 4Ient .0.0 142 01.5 50 752.0 3 52.5 llg)Ag)Total
Debt Incentive Capital Mitigation Water KWH Total
Year Service Royalty Royalty Items 5 Yr ongoing Bank Tax other------------------------------------------------------_._----------------------
1 1,377 (26)80 ($62 )40 12 28 97 1,547
2 1,377 (26)80 (62 )42 13 29 97 1,550
3 1,377 (26)80 (62 )44 13 30 97 1,553
4 1,377 (26)80 (62 )45 14 31 97 1,557
5 1,377 (26)80 (62 )47 14 33 97 1,560
6 1,377 ~26)80 (62 )0 15 34 97 1,515
7 1,377 26)80 (62 )0 16 35 97 1,517
8 1,377 (26)80 (62 )0 16 37 97 1,519
9 1,377 ~26)80 (62 )0 17 38 97 1,521
10 1,377 26)80 (62 )0 17 40 97 1,523
11 1,377 (26)80 (62 )0 18 41 97 1,526
12 1,377 (26)80 (62 )0 19 43 97 1,528
13 1,377 (26)80 (62 )0 20 44 97 1,530
14 1,377 (26)80 (62 )0 20 46 97 1,533
15 1,377 (26)80 (62 )0 21 48 97 1,536
16 1,377 (26)80 (62 )0 22 50 97 1,538
17 1,377 (26)105 (62 )0 23 52 97 1,565
18 1,377 (26)ios (62 )0 24 54 97 1,568
19 1,377 (26)105 (62 )0 25 56 97 1,572
20 1,377 (26 )ios (62 )0 26 59 97 1,575
21 0 0 ios (62 )0 27 61 97 228
22 0 0 136 (62 )0 28 63 97 262
23 0 0 136 (62 )0 29 66 97 266
24 0 0 136 (62 )0 30 68 97 270
25 0 0 136 (62 )0 31 71 97 274
26 0 0 136 (62 )0 33 74 97 278
27 0 0 177 (62 )0 34 77 97 323
28 0 0 177 (62 )0 35 80 97 327
29 0 0 177 (62 )0 37 83 97 332
30 O'0 177 ~62 )0 38 87 97 337
31 0 0 177 62)0 40 90 97 342
32 0 0 230 (62 )0 41 94 97 400
33 0 0 230 (62 )0 43 97 97 405
34 0 0 230 (62 )0 45 101 97 411
35 0 0 230 (62 )0 47 105 97 417
36 0 0 230 (62 )0 48 110 97 423
37 0 0 299 (62 )0 50 114 97 498
38 0 0 299 (62 )0 52 119 97 505
39 0 0 299 (62 )0 55 123 97 512
40 0 0 299 (62 )0 57 128 97 519
41 0 0 299 (62 )0 59 133 97 526
42 0 0 388 (62 )0 61 139 97 623
43 0 0 388 (62 )0 64 144 97 631
44 0 0 388 (62 )0 66 150 97 640
45 0 0 388 (62 )0 69 156 97 648
46 0 0 388 (62 )0 72 162 97 657------------------------ ------------------------------------------------
Total 27,537 (524)7,953 (2,857)219 1,558 3,525 4,478 41,889
P.v.1l,073 (211)859 (567 )161 170 384 889 12,758
(8 10%)11,722 (223 )