20070918PAC to Staff 57, 59.pdf

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September 17, 2007
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Scott Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
472 W Washington
Boise, ID 83702-5983
Neil Price
Deputy Attorney General
Idaho Public Utilities Commission
472 W Washington
Boise, ID 83702-5983
RE:PAC-07-
IPUC Production Data Request 56-
Please find enclosed Rocky Mountain Power s Response to IPUC Production Requests
57 and 59.
If you have any questions, please feel free to call me at [phone].
Sincerely,
~ ()~
Brian Dickman, Manager
Regulation
Enclosures
cc:Jean Jewell/IPUC
Randall C. Budge/Monsanto
James R. Smith/Monsanto
Maurice Brubaker/Monsanto
Richard AndersonlEnergy Strategies
Eric Olsen/lIP A
Tony Y ankel/IIP A
Conley WardiAgrium
Dennis Peseaul Agrium
Brad Purdy/CAP AI
Timothy Shurtz
PAC-07-05/Rocky Mountain Power
September 17, 2007
IPUC Production Data Request 57
IPUC Production Data Request 57
Please explain the interconnection/transmission credits and the Energy Trust of
Oregon credits associated with the Goodnoe Hills project. What is the basis for
the credits? How are the credit amounts computed? Have any funds yet been
received from the Energy Trust of Oregon? If not, has the Energy Trust made a
firm commitment of funds to the Goodnoe Hills project?
Response to IPUC Production Data Request 57
Transmission interconnection/transmission credits are a result of the project's
Large Generator Interconnection Agreement (LGIA) with the Bonneville Power
Administration (BP A). The project developer previously entered into the LGIA
with BPA and assigned the LGIA to PacifiCorp upon PacifiCorp s acquisition of
the project development assets. The BP A LGIA provides for the refunds of
certain amounts paid by the developer (and PacifiCorp subsequent to development
asset purchase) that can be used as a credit against BP A transmission services.
The credit provisions of the BP A LGIA are typical of interconnection agreements
that are consistent in form with Federal Energy Regulatory Commission
established pro-forma agreements. The credits are computed by BP A and on the
basis of facilities constructed that are considered by BP A to be an upgrade to the
BP A transmission network.
The Energy Trust of Oregon Inc. (ETO) has made a firm commitment of funds
associated with the Goodnoe Hills project. The amount ofthe commitment was
based on PacifiCorp s grant request which, in turn, was based on PacifiCorp
understanding of the funds the ETO had available for such a grant. Funds will be
paid by the ETO after the project reaches commercial operation in late 2007. The
basis for the ETO grant is for the ETO to utilize public purpose funds from
PacifiCorp s customers in Oregon to fund renewable resources.
(Mark R. Tallman prepared this response and is 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
September 17, 2007
IPUC Production Data Request 59
IPUC Production Data Request 59
Please compute the present value revenue requirement and the levelized cost of
energy for the Goodnoe Hills project assuming a value for green tags of $5 per
MWh for the first five years of the project life.
Response to IPUC Production Data Request 59
PVRR(d)*
Nominal Levelized
Delivered Cost *
+$13 7QJ;123** '
$68.45/MWh
* Assuming a value for renewable energy credits ("green tags" of $5 per MWh for
the first five years of the project life.
* * Positive sign denotes that the differential present value revenue requirement
has net projected costs that exceed net projected revenues if the value of green
tags or the cost of compliance with renewable portfolio standards is equal to $1.
per MWh.
(Rick T. Link prepared this response and is 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.