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HomeMy WebLinkAbout20070904PAC to IIPA 4-1 to 4-16.pdf~ ~\;ro~OUNTAIN 20 I South Main. Suite 2300 Salt lake City. Utah 84111 QF.r.E\\1ED ~,~ .J August 31 , 2007 "., Iulll SEP - L\ t\ i~ ' '0 Eric Olsen Idaho Irrigation Pumpers Assoc Racine, Olsen, Nye, Budge & Bailey 201 East Center Pocatello, ID 83204 );" i ;, UTiUT\\:~i RE:PAC-07- IIPA Set 4 (1-16) Please find enclosed Rocky Mountain Power s Responses to IIPA 4th Set Data Requests 1 - 4.16. Provided on the enclosed CD are Attachments lIP A 4.3 and 4. If you have any questions, please feel free to call me at (801) 220-4975. Sincerely, Brian Dickman, Manager Regulation IEJP Enclosures Cc:Tony YankellIIPA Jean JewelllIPUC Randall C. Budge/Monsanto James R. SmithIMonsanto Maurice Brubaker/Monsanto Richard Anderson/Energy Strategies Conley Ward/Agrium Dennis Peseaul Agrium Brad Purdy/CAP AI Timothy Shurtz P AC-07-05/Rocky Mountain Power August 31 2007 lIP A 4th Set Data Request 4.1 liP A Data Request 4. Please provide electronically a listing of the most recent data available of all dates, times, and expected magnitude of all dispatched curtailments when Idaho irrigation load was curtailed under the pilot program of Schedule 72A. Response to liP A Data Request 4. 2007 Idaho Irrigation Load Management Program Schedule 72A Dispatch Date Dispatch Time Estimated Magnitude (megawatts) Jul-3:30p - 7:00p 12-Jul-4:00p - 7:00p 16-Jul-3:30p - 7:00p 19-Jul-4:00p - 7:00p 23-Jul-4:00p - 7:00p 26-Jul-4:00p - 7:00p 3 1-Jul-4:00p - 7:00p Total July Aug-4:00p - 7:00p Aug-4:00p - 7:00p 10-Aug-4:00p - 7:00p 13-Aug-4:00p - 7:00p 15-Aug-4:00p - 7:00p 17-Aug-4:00p - 7:00p Total August (to date) Estimation methodology: The estimate of curtailment magnitude for Idaho s 2007 Schedule 72A program is based on the nameplate rating of the pumping equipment participating in the Schedule 72A pilot control program. (This response was prepared under the direction of Jeff W. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. ) PAC-07-05/Rocky Mountain Power August 31 , 2007 IIPA 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I, near the bottom of page ES- 10 there is a reference to the fact that participant incentives are currently capped at approximately 50% of "incremental measure costs" of Class 2 DSM resources. Please explain what "incremental measure costs" are and give an example. If "incremental measure costs" are not an appropriate term, please explain what the 50% is related to. What is the basis for the 50% cap? Is there a related cap applied to Class 1 or 3 DSM resources? Please explain the relationship between such a cap for Class 1 and 3 resources compared to Class 2. Response to liP A Data Request 4. Incremental measure costs" refers to investments required to be made by customers in order to participate in Class 2 DSM programs. Customer incentives for Class 2 DSM programs are typically measured as a percentage of out of pocket customer costs up to a cap. The Idaho Irrigation Energy Savers program uses the 50% cap explicitly in the incentive calculation (see Idaho Schedule 155.4). The term is appropriate as used in the report. Energy efficiency programs are designed to provide incentives for the purchase of more energy efficient equipment not to pay customers for replacing equipment. The equipment also needs to deliver energy savings over time. For these reasons, most programs pay a percentage (less than 100%) of the incremental costs so the customer is invested in equipment upgrades and efficient operation over time. The 50% cap is explicitly incorporated into several incentive formulas in the company s energy efficiency programs and is the basis for setting the incentive levels in other programs. Other utilities and program administrators use a similar percentage cost cap in many of their program designs. For these reasons 50% was used in this study in the assessment of the expected achievable potential for Class 2 resources. In the case of Class 1 and 3 resources, customers typically are not required to make investments in equipment to participate in demand-side resource programs. As a result, customer incentives are tied to metrics such as kilowatts available for control rather than as a percentage of out of pocket customer costs up to a cap, as in the case for Class 2 programs. In designing incentive structures for Class 1 and Class 3 programs, programs P AC- E-07 -05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4.2 typically are required to pay an incentive each time (per month or per year) the capacity resource is made available for control or controlled. Unlike Class 1 and 3 resources, energy efficiency programs typically pay an incentive once and the energy efficiency resources are realized over time. These are some of the reasons that incentive design considerations (including the use of percent of customer costs) differ between these resource types. (This response was prepared under the direction of Jeff W. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. PAC-07-05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I page 12 that PacifiCorp provided "2000-2005 hourly profiles by rate class . Please provide an electronic copy of this information. Response to liP A Data Request 4. Attachment lIP A 4.3 contains the referenced data "2000-2005 hourly profiles by rate class." The files contain complete data for some states (annual periods as noted in individual state files), single year data for others and was lacking available California data at the time the profiles were created. In all the cases except California, the most recent year s data for each state and rate schedule were used in the development of hourly system load profiles. In the case of California, Oregon s load profiles by customer class were used. Single year data was used (as opposed to multiple year averages) in order to retain the peak characteristics of the load shapes for Class 1 and Class 3 capacity focused products. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. IDAHO P AC-O7- ROCKY MOUNTAIN POWER lIP A DATA REQUEST SET 4 (1-16) TT A CHMENT lIP A 4. ON THE ENCLOSED CD PAC-07-05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4.4 liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I page 12 that PacifiCorp provided cost information regarding "PacifiCorp program experience . Please provide an electronic copy of this information. Response to liP A Data Request 4.4 The company s program experience, costs and program performance information were collected over time through a series of verbal exchanges during the study development. As such, there is no specific electronic record to provide. The company s experiences were used to help challenge the reasonableness of other utility program best practice information gathered in the development of program assumptions. To the extent the company s data was captured in the report, it is provided through its documentation in Volume II, Appendix B-1 in the "Sources or Assumptions" references. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. P AC-07-05/Rocky Mountain Power August 31 , 2007 IIPA 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I page 12 that PacifiCorp provided cost information regarding "the system hourly shape for 2006, Figure 3... " a. Was this "system" load data for Retail only, or did it include Retail and Wholesale Sales?b. If this was for Retail load only, please provide an electronic copy of this load data, specifying date, hour, and load. (c) If this was for Retail plus Wholesale sales, please provide an electronic copy of this load data broken out between Retail and Wholesale sales specifying date hour, and load. Response to liP A Data Request 4. The load data was Retail only. The actual system hourly data for 2006 had not been compiled at the time the report was being completed. Therefore, the report used 2005 actual data modifying the 2006 sales data to reflect the expected 2006 system hourly load profile. Refer to Attachment lIP A 4.5 for the 2006 Sales with 2005 System Shape as the referenced data. See lIP A 4- (This response was prepared under the direction of Jeff W. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. ) IDAHO P AC-O7- ROCKY MOUNTAIN POWER lIP A DATA REQUEST SET 4 (1-16) ATTACHMENT lIP A 4. ON THE EN CLOSED CD P AC-07-05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I page 13 there is a statement at the bottom of the page that loads based on the highest 40 hours for the winter and summer were estimated and then spread over end-use hourly load profiles and calibrated. Please provide a detailed example of what was done, based upon the Idaho Irrigation load. Response to liP A Data Request 4. No calibration of irrigation loads was necessary given irrigation loads are comprised of, for the most part, a single end use. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. PAC-07-05/Rocky Mountain Power August 31 , 2007 IIPA 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I page 17 there is a statement that Rocky Mountain Power s avoided cost of capacity is $98. a. Is this value of$98 based on a "kW-year" basis? Please explain what these units represent.b. 'Is this capacity value only related to the peak hour of the year, the highest 40 hours of the year, the peak hour of each month, etc. Please provide all calculations and studies used to develop this value of$98. Response to liP A Data Request 4. In section 6, Estimating Economic Potential , the reference to the company s estimated avoided cost of capacity of $98 for Rocky Mountain Power was based on dollars per kilowatt per year. It represents an estimate of the value used to set the upper boundary for screening capacity resources for their cost-effectiveness within the study. The capacity represents the company s coincident peak loads. Coincident peak loads are derived by forecasting and then aligning the hourly maximum loads each month across the entire system. Coincident peak is the highest load hour each month across the entire system. The $98 value used to screen load management demand-side resources in Rocky Mountain Power s service territory was derived from proxy modeling of load management resources within the company s 2007 Integrated Resource Plan. For the development of that plan, the company commissioned a smaller potential assessment and costing of five load management program concepts into supply curve formats for comparative modeling against supply-side resource alternatives. The five program concepts developed and modeled were: (1) a fully dispatchable winter resource, (2) a fully dispatchable summer resource, (3) a fully dispatchable large commercial and industrial resource, (4) a scheduled firm irrigation resource, and (5) a thermal energy storage resource. In Rocky Mountain Power s service territory, the model selected all available fully dispatchable summer resources (at $58/kw/yr), all available fully dispatchable large commercial and industrial resources (at $82/kw/yr) and all scheduled firm irrigation resources (at $27/kw/yr). Based on the modeling results the company determined the value of the resources to be greater than $82/kw/yr (based on the model selecting the fully dispatchable large commercial and industrial resources) but less than $119/kw/yr (the cost for the thermal energy storage resources that weren P AC- E-07 -05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4. selected). The $98/kw/yr was selected as the estimated value to Rocky Mountain Power, ignoring unique resource characteristics (such as dispatchability, hours, etc.), after which load management resources become uneconomic in relation to other resource alternatives. No additional analysis was done in arriving at the $98/kw/yr figure. The company s 2007 Integrated Resource Plan is available in an electronic format at http://www.pacificorp.comlNavigation/Navigation23807.html. The proxy supply curve study conducted for the plan is provided in Appendix B of that document. (This response was prepared under the direction of Jeff W. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. P AC-07-05/Rocky Mountain Power August 31 2007 lIP A 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I page 22 the levelized cost for irrigation in RMP is listed at $47. a. Please provide a breakdown of the dollars associated with each component that makes up this value (i.e. installation, administration, incentives, etc. b. If this cost is based upon both Schedule 72 and 72A, please provide a breakdown of the dollars associated with each component that makes up this $47 value based upon Schedule 72 and 72A separately (i.e. installation administration, incentives, etc. Response to liP A Data Request 4. a. The $/kw/yr value was derived using the achievable resource potential (providing program size) and the standard program cost assumptions (referenced below) to derive a total program cost. This cost was then levelized over a 20-year planning period to identify the resource value. As such, a breakdown of the cost components beyond that provided in Volume II Appendix B-1 of the report (Capacity-Focused Resource Materials: Detailed Assumptions by Program Option) is not available. The resource cost assumptions are: Overhead: First Cost - $400 000, Admin Cost adder 15%, Technology and installation cost - $100 000, Incentive annual cost/kW $20 Marketing Cost/new participant $20, Ongoing maintenance and communication / kW $10. For a complete breakdown of costs see Table B-1 0 page B-, Volume II. b. The costs do not assume a particular program however they do draw from estimated costs of several programs such as the company s Idaho Schedule 72 and 72A as well as Idaho Power s program. The $47 is meant to represent a proxy for program costs, actual implementation costs may vary with factors such as size of program, average pump size, and pump configurations impacting those costs. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. P AC-07-05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I page 22 the levelized cost for Residential DLC AC in RMP is listed at $93. Please provide a breakdown of the dollars associated with each component that makes up this value (i.e. installation administration, incentives, etc. Response to liP A Data Request 4. The $/kw/yr value was derived using the achievable resource potential (providing program size) and the standard program cost assumptions (referenced below) to derive a total program cost. This cost was then levelized over a 20-year planning period to identify the resource value. As such, a breakdown of the cost components beyond that provided in Volume II, Appendix B-1 of the report (Capacity-Focused Resource Materials: Detailed Assumptions by Program Option) is not available. The resource cost assumptions are: Overhead: First Cost - $400 000, Admin Cost adder 15%, Technology and installation cost - $175 Incentive annual cost $20 for residential and 40$ for small commercial, Marketing Cost/new participant $25, communication cost per customer $10. For a complete breakdown of costs and other assumptions see Table B-, page B-, Volume II. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. ) P AC-07-05/Rocky Mountain Power August 31 , 2007 IIPA 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I page 24 the levelized cost for Residential TOU in RMP is listed at $166. a. Please provide a breakdown of the dollars associated with each component that makes up this value (i.e. installation, administration, incentives, etc.b. Ifthis price reflects the cost of Schedule 36 in Idaho, what adjustments should be made to get these costs under the $98 kW-year figure in the study?c. The Company is proposing to give Schedule 36 the "standard" rate increase in this case. This suggests that the Company does not feel that the rate- of-return for this customer group is that far from normal. Given this, on what basis does the July 11 th report come up with such different conclusions?d. If the Company were going to change Schedule 36 to be more in line with the July 11th study recommendation, what rates (presumably a three tiered rate) would it suggest? Response to liP A Data Request 4. a. The $/kw/yr value was derived using the achievable resource potential (providing program size) and the standard program cost assumptions (referenced below) to derive a total program cost. This cost was then levelized over a 20-year planning period to identify the resource value. such, a breakdown of the cost components beyond that provided in Volume II Appendix B-1 of the report (Capacity-Focused Resource Materials: Detailed Assumptions by Program Option) is not available. The resource cost assumptions are: Overhead: First Cost - $400 000, Admin Cost adder 15% Technology and installation cost - $100, Marketing Cost/new participant $25. For a complete breakdown of costs and other assumptions see Table B- page B-, Volume II. b. The data and assumptions concerning costs and other technical inputs were based on data from TOU programs offered by the company as well as other utilities. The price therefore represents a blend of costs rather than one particular utility program. c. The price increase requested for Schedule 36 is derived from the results of the company s class cost of service study filed in this case. As noted in the company s response to part "b" above, the data and assumptions concerning costs and other technical inputs to the July 11 , 2007, study were based on data from TOU programs offered by the company as well as other utilities. The price therefore represents a blend of costs rather than one particular utility program. P AC- E-07 -05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4.10 d. The company has not performed the requested analysis. (This response was prepared under the direction of Jeff W. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. P AC- E-07 -05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I page 36 it states that 100 MW of irrigation load has been contracted for load management, but "less than half are available at any time due to the alternating schedules of program participants." It is also stated that: "only 75% of the load will be available. Please supply in electronic format, any data upon which these statements are based. Response to liP A Data Request 4. With respect to that report, in Volume II page B-, the assumptions regarding event participation are provided. The report assumes that of the program participants, 50% of participating loads will elect a scheduled firm control option (similar to Idaho s Schedule 72) and 50% will elect a dispatchable control option (similar to Idaho s Schedule 72A). Under these assumptions during any given day, 50% of the scheduled firm participant loads would be curtailed and, upon dispatch, 100% of the dispatchable loads would be available; thus arriving at the assumption that 75% of the loads participating are curtailed during an event. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. PAC-07-05/Rocky Mountain Power August 31 , 2007 IIPA 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume I page 46 it states that newer TOU programs tend to have a differential of greater than 10 cents /kWh. PacifiCorp were to revise its Schedule 36 in order to be compatible with these newer TOU programs, what rates would be appropriate for winter and summer usage? Response to liP A Data Request 4. The company has not performed the requested analysis. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. ) PAC-07-05/Rocky Mountain Power August 31 , 2007 IIPA 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume II page B-13 there is a listing of information for the Irrigation demand side management program. a. How do these costs and assumptions compare with those recently experienced regarding the Company s experience with Schedule 72 in Idaho?b. How do these costs and assumptions compare with those recently experienced regarding the Company s experience with Schedule 72A in Idaho?c. What is contained in the $10 figure for "Incentives (annual costs per participating kW)? Response to liP A Data Request 4. a. As noted in Volume II Page B-13 of the study s assumptions, they are similar however represent a composite of programs (see references to Idaho Power and PacifiCorp program similarities and differences in the Sources or Assumption column). They are slightly higher in some areas, such as the technology costs and communications portion of ongoing maintenance and communications, than those typically realized with Schedule 72 in Idaho. These costs are more representative of anticipated Schedule 72A in Idaho or technology that as employed provides greater control flexibility and network reliability. The remaining assumptions and costs are similar to the company Schedule 72 program and Idaho Power s irrigation load management program except where noted in the Sources and Assumptions column. b. As noted in the company s response to part "" the study s costs and assumptions are a composite of program costs and assumptions however are more closely in alignment, in regards to the technology and communication costs, with the equipment employed under the company s Schedule 72A in Idaho. They assume that similar control equipment as that deployed in the company s Schedule 72A dispatchable pilot program would be utilized by both control options (Schedule 72 and Schedule 72A) in the future to improve control functionality and network reliability. c. The $10 figure labeled "Incentives (annual cost per participation k W)" is mis- labeled. It should read "Ongoing Maintenance and Communications." It represents the annual costs to maintain installations including hardware recursive communications and field labor costs. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response P AC- E-07 -05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4. at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. ) PAC-07-05/Rocky Mountain Power August 31 , 2007 IIPA 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. With respect to that report, in Volume II page B-24 there is a listing of information for the Residential TOU program. a. The incremental cost of meters is listed as $100. What is the maximum load a meter of this cost is designed to carry? b. Will this meter handle 3 phase power?c. Why does "this analysis assume revenue neutrality for the utility" when some customers will accrue bill savings?d. How should the rates for Schedule 36 be designed in order to be revenue neutral for the Company and show a differential of 10 cents or more per kWh? Response to liP A Data Request 4. The $100 incremental cost was based on the average cost differential between a standard residential meter and a residential time of use meter with an assumed amperage rating of200. The price difference between a single and three phase 200 amperage rated meter is immaterial and the study made no assumption as to a single or three phase meter when calculating incremental costs. This analysis assumes revenue neutrality for the utility because, during the rate making process of each schedule, there is a targeted amount of revenue that proposed rates are to collect; and while it is true some customers may accrue bill savings from these proposed rates, other customers may receive bill increases based on individual usage. The company has not performed the requested analysis. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. PAC-07-05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. In addition to the two volume report, there was some supplemental material provided. As a part of that material there was a Figure 29 that related an Irrigation forecast for Idaho between 2006 and 2027. It appears that the 2006 value for Idaho Irrigators at generation was less than 72 aMW. What was the actual value for 2006? What loss factor was assumed? Response to liP A Data Request 4. The actual value for 2006 was 66.25 aMW with an assumed loss factor of7.1% to arrive at a grossed up value of 70.95 aMW. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. ) PAC-07-05/Rocky Mountain Power August 31 , 2007 lIP A 4th Set Data Request 4. liP A Data Request 4. On July 11 , 2007 there was a report issued by PacifiCorp assessing demand side resources. In addition to the two volume report, there was some supplemental material provided. As a part of that material there was a Figure 42 that related to Idaho Single Family Heating load. Is this data for Schedule 1 , 36, or both? Response to liP A Data Request 4. The specific end use shapes used in the study, such at the Idaho single family heating load, were derived from building simulations, not meter data, and therefore are representations of the expected load shapes. (This response was prepared under the direction of JeffW. Bumgarner, who is also the recordholder. It has not been determined who will sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. )