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HomeMy WebLinkAbout20070917PAC to Monsanto 7-1, 7-3 to 7-9.pdf~ ~~ro ~OUNTAIN RECEi\ 20 I South Main, Suite 2300 Salt lake City, Utah 84111 70(17 (,CD ., , ",uUU. 'JU tff 9: 29 U T it ) IN~t)dd~X~;;~;i I ~ SiC. September 14 2007 Randall C. Budge RACINE, OLSON, NYE, BUDGE & BAILEY, CHARTERED O. Box 1391; 201 E. Center Pocatello, Idaho 83204-1391 RE:PAC-07- Monsanto Data Request Set 7 (1- Please find enclosed Rocky Mountain Power s Response to Monsanto Data Request 7.1 - , excluding 7.2. The Response for Monsanto 7.2 was sent on September 12 2007. Provided on the enclosed CD is Attachment Monsanto 7.6. Provided on the enclosed Confidential CD is Confidential Attachment Monsanto 7.5 c. This information is confidential and is being provided to parties who have signed a confidentiality agreement pursuant to the protective order in this case. If you have any questions, please feel free to call me at (801) 220-4975. Sincerely, ~~ /)/ Brian Dickman, Manager Regulation Enclosures Cc:James R. SmithIMonsanto Maurice Brubaker/Monsanto Richard Anderson/Energy Strategies Jean Jewell/IPUC Eric Olsen/lIP A Tony Y ankellIIP A Conley Ward/Agrium Dennis Peseaul Agrium Brad Purdy/CAP AI Timothy Shurtz PAC-07-05/Rocky Mountain Power September 14, 2007 Monsanto ih Set Data Request 7. Monsanto Data Request 7. Reference Attach Monsanto l.13b.xls: Please provide the supporting detail on historical rates by major customer class on a $ per kWh basis that support the percentage changes presented in Mr. Griffith's table. Response to Monsanto Data Request 7. The referenced table uses only percentage increases to base rates as ordered by the Idaho Commission since 1988 and as shown in the table. There is no further supporting detail. (Mark E. Tucker prepared this response and is also the recordholder. William R. Griffith is expected to sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. PAC-07-05/Rocky Mountain Power September 14, 2007 Monsanto 7th Set Data Request 7.3 Monsanto Data Request 7. Please provide an update of the actual or expected on-line dates for all rate base additions referenced in Tabs 8.8.4 and 8.5 of Exhibit 11. Response to Monsanto Data Request 7. An upda~e of the actual and/or expected on-line dates for rate base additions referenced in Tabs 8.8.4 and 8.5 of Exhibit 11 was provided in response to IPUC Audit Request 126. Please refer to the company s response to IPUC Audit Request 126. (Aaron R. Lively prepared this response and is also the recordholder. Steven R. McDougal is expected to sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. P AC-07-05/Rocky Mountain Power September 14, 2007 Monsanto 7th Set Data Request 7.4 Monsanto Data Request 7.4 (a) Has Rocky Mountain Power prepared another gas cost forecast since filing its case? (b) If so, please provide the impacts of this updated gas cost forecast on this general rate case. Response to Monsanto Data Request 7. (a) Yes. (b) The company s filed Net Power Cost (NPC) study was $861.1 million. The company corrected the filed NPC to $826.4 million in the company s response to IPUC Data Request 107. Updating NPC for the company s most recent Official Market Price Forecast dated June 2007 and for recent gas transactions increases NPC to $827.5 million. (This response was prepared under the direction of Mark T. Widmer who is also the recordholder. Mark T. Widmer is expected to sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. P AC- E- 7 -5/Rocky Mountain Power September 14 2007 Monsanto Company s Data Requests 7- Monsanto Company s Data Request 7- Reference Attachment Monsanto 3.2L: a. Please provide all assumptions and calculations pertaining to the $1. million value attributed to the Mid-C to P ACEU spread as well as a written description of this separate valuation. b. Please explain why reserves held on northeast hydro units were not included or recognized in the non-spin reserves valuation contained in the spreadsheet Monsanto Final 20060508 01.07-12.09 _Reserves & Curtailmentxls. c. Please provide a table similar to Attachment Monsanto 3.2a listing market prices as well as the names and incremental costs of the incremental units used in valuing the operating reserves in Attachment Monsanto 3.2L. d. Please detail how the inclusion of Lakeside impacts the valuation of reserves. Is this because Lakeside was selected significantly more times as the highest in-the-money resource in the "Include Lakeside in the Reserve Stack" column on Attachment Monsanto 3 .2L ? e. Please fully explain why the $1.9 million can no longer be supported when Lakeside is a part ofthe resource stack. Does the elimination of this $1.9 million value depend upon whether or not Lakeside is the highest cost incremental unit in-the-money? Response to Monsanto Company s Data Request 7- a. Occasionally, the company holds non-spin reserves on hydro units in the company s West balancing area for the benefit of the company s East balancing area. When the company holds non-spin reserves in the West balancing area in this manner, transmission from the West side ofthe system to the East side ofthe system is often set aside in order to deliver the reserve energy when there is a contingency. With the Monsanto reserves product available, the company may avoid having to set aside this transmission for reserve energy, which allows the transmission to be used for other purposes. To capture this impact, we evaluated the economics of utilizing the transmission to move energy from the West to the East balancing area instead of holding that transmission open for reserve use. Experience indicates that, on average, 40 MW of West to East transmission capability would become available as a result of the Monsanto reserves product The economic evaluation for this calculation is extremely confidential, price and transaction sensitive, and commercially proprietary. Disclosure of this information may give an undue advantage to competitors and therefore requires PAC-5/Rocky Mountain Power September 14 2007 Monsanto Company s Data Requests 7- the highest level of confidential treatment Please contact Brian Dickman at 801- 220-4975 or Barry Bell at 801-220-4985 to make arrangements to review. The file name is MIDC PACEU Spread Value on 40MW.xls. b. The estimated impact of the Monsanto reserve product in relation to the reserves held on the northwest hydro units is extremely confidential, price and transaction sensitive, and commercially proprietary. Disclosure of this information may give an undue advantage to competitors and therefore requires the highest level of confidential treatment This information is in the same file referred to in response to part a. Please contact Brian Dickman at 801-220-4975 or Barry Bell at 801-220-4985 to make arrangements to review. c. Please refer to confidential Attachment Monsanto 7.5c.pdf. d. The impact of the inclusion of Lakeside is detailed in the previously provided Attachment Monsanto 3.2L. As shown in the previously provided Attachment Monsanto 3.2a, Lakeside was only selected as the highest cost "in-the-money resource for the months of April 2008 and April 2009. e. The fact that the $1.9 million can no longer be supported is not solely a function of whether Lakeside is part of the reserve stack or whether or not Lakeside is the highest cost incremental unit in-the-money. As shown in Confidential Attachment Monsanto 7., the highest cost in-the-money resource for the time period evaluated was always a resource that is located in the East Therefore, the company determined that since the opportunity cost or incremental reserve value that Monsanto provides is related to resources in the East, the potential value of freeing up West to East transmission does not exist and is not justifiable. (This response was prepared under the direction of Mark T. Widmer who is also the recordholder. Mark T. Widmer is expected to sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. IDAHO P AC-O7- ROCKY MOUNTAIN POWER MONSANTO DATA REQUESTS SET 7 (1- CO NFID ENTIAL A TT A CHMENT MONSANTO 7. ON THE ENCLOSED CONFIDENTIAL CD P AC- E-07 -05/Rocky Mountain Power September 14 2007 Monsanto 7th Set Data Request 7. Monsanto Data Request 7. Reference Attachment Monsanto 3.2L: Please provide the revision to this attachment that has the "buy-through" switch set to "FALSE" for all years (2007 2008 and 2009). Response to Monsanto Data Request 7. Please refer to the attachment "Attach Monsanto 7.doc" for the revised attachment for Monsanto 3 .2L. (This response was prepared under the direction of Mark T. Widmer who is also the recordholder. Mark T. Widmer is expected to sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. IDAHO P AC-O7- ROCKY MOUNTAIN POWER MONSANTO DATA REQUESTS SET 7 (1- ATTACHMENT MONSANTO 7. ON THE ENCLOSED CD PAC-07-05/Rocky Mountain Power September 14, 2007 Monsanto 7th Set Data Request 7. Monsanto Data Request 7. Please provide a valuation of the economic curtailment similar to that found in the spreadsheet Monsanto 2007-06-01dApp_TestimonyV2.xls but where curtailment is 500 hours rather than 800 hours. Response to Monsanto Data Request 7. (This response was prepared under the direction of Mark T. Widmer who is also the recordholder. Mark T. Widmer is expected to sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response. P AC-07-05/Rocky Mountain Power September 14, 2007 Monsanto ih Set Data Request 7. Monsanto Data Request 7. Reference Response to Monsanto Data Request 3.4 where the 2008 and 2009 value of curtailments under the GRID model were provided. Please provide a similar valuation under the GRID model but where curtailment is 500 hours rather than 800 hours. Provide copies of all GRID model runs used in the valuation. Response to Monsanto Data Request 7. Monsanto can prepare this curtailment valuation study using the GRID computer provided by the Company and the GRID project provided as Attachment Monsanto 3.3a. To complete this study: 1. Import the GRID project Attachment Monsanto 3.a. Select Do not import for all data seriesb. Select Group griduser in two places 2. Create a Demand Charge data series excluding Monsanto Curtailment a. Export the "Demand Charge" date series; b. open in Microsoft Excel and remove the rows containing Monsanto Curtailment" c. save the revised file as a CSV file; d. import the revised file as a new "Demand Charge" data series 3. Create a "Monsanto Curtailment" resource with 500 hours of curtailment a. Copy the Monsanto Curtailment resource located under Resources, Resource Type (Contracts) b. Change the MAX ANNUAL TAKE (MWH) from 53 600 (67 MW x 800 hours) to 33,500 (67 MW x 500 hours) c. Save as a new Monsanto Curtailment resource 4. Create a with Monsanto Curtailment (500 Curtailment Hours) Scenarioa. Select and copy a "wo Monsanto Curtailment" scenario b. Using the copied scenario i. change the demand charge selection (GRID editor step 2) to the imported demand data series created in step 2 above ii. change the Monsanto Curtailment resource (GRID editor step 4) to the new resource named in step 3 above c. Save the copied scenario as a new scenario 5. Run the two scenarios and extract the NPC results 6. Import the NPC results into the Microsoft Excel workbook and compare the difference between the two scenarios. (This response was prepared under the direction of Mark T. Widmer who is also the recordholder. Mark T. Widmer is expected to 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 September 14, 2007 Monsanto ih Set Data Request 7. Monsanto Data Request 7. Follow up to Response to Monsanto 4.15 Please confirm or deny that it is the Company s proposal to seek a lower rate of return in the class cost of service study in order to recognize the rate mitigation cap. If denied, then please explain. Response to Monsanto Data Request 7. Confirm. The rate mitigation cap results in a lower revenue requirement and a lower requested increase, which results in a lower target rate of return as calculated in the class cost of service study. (Mark E. Tucker prepared this response, is the recordholder, and is expected to sponsor this response at hearing. Please contact Brian Dickman at 801-220-4975 to discuss this response.