20100713PAC to Monsanto 3 (1-41).pdf

~ROCKY MOUNTAIN
POWER
A DISION OF PAIFICORP RECE
201 South Main. Suite 2300
Salt lake City. Uth 84111
zim JilL l 3 AM 9= 22
July 12,2010
Randall C. Budge
RACINE, OLSON, NYE, BUDGE &
BAILEY, CHARTERED
P.O. Box 1391; 201 E. Center
Pocatello, Idao 83204-1391
RE: ID PAC-E-I0-07
Monsto Data Request Set 3 (1-41)
Please fid enclosed Rocky Mountan Power's responses to Monsanto Data Requests 3.1-3.4,
3.7-3.13,3.18,3.24, and 3.29-3.41. The remaining responses wil be provided separately.
Provided on the enclosed Confdential CD are Confdential Attchments Monsanto 3.1, 3.4, 3.11,
3.24, and 3.35. Confdential Attchments are Confdential and are provided to paries that have
signed a protective order in ths docket.
If you have any questions, please feel free to call me at [phone].
Sincerely,
J.TiUW~ /~
J. Ted Weston
Manager, Regulation
Enclosure:
C.c: James R. Smith
Richard Anderson
George C. Carer, III
Denns Peseau
Gareth R. Kajander
Maurce Brubaker
Brian Collns
Michal Gorman
Kath Iverson
Mark Widmer
Michal Stak
Michal C. Creer
Eric L. Olsen
Jea Jewell
Ben Ot
PAC-E-I0-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.1
Monsanto Data Request 3.1
Please provide the Hermston fuel cost calculation for ths docket and Wyomig
Docket No. 20000-352-ER-09.
Response to Monsanto Data Request 3.1
Please refer to Confdential Attchment Monsanto 3.1 for Hermston fuel cost in
the curent proceeding. The same inormation in Confdential Attchment
Monsanto 3.1 was also used in Wyoming Docket No. 20000-352-ER-09. Ths
information is confidential and is provided subject to the terms and conditions of
the protective agreement in ths proceeding.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
PAC-E-l 0-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.2
Monsanto Data Request 3.2
Please provide the Hermiston purchase power price calculation from Wyoming
Docket No. 20000-352-ER-09.
Response to Monsanto Data Request 3.2
Please refer to the Company's response to Monsanto Data Request 2.5 for the
information in the Wyoming docket. Specifically, please refer to tab "Hermston"
in the NPC workbook.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
PAC-E-I0-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.3
Monsanto Data Request 3.3
Please the reduction in APS Supplementa volume in ths case compared to
Wyomig Docket No. 20000-352-ER-09.
Response to Monsanto Data Request 3.3
Assumg Monsanto requests the explantion of the reduction, the two cases have
different base periods for the normalized volumes.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
P AC-E-l 0-07/Rocky Mounta Power
July 12,2010
Monsanto Data Request 3.4
Monsanto Data Request 3.4
Please provide the actul NPC report ($ and MWh) for the most recent period
completed. Ths request is continuig and the updated NPC report should be
provided when a new month of actu information is available.
Response to Monsanto Data Request 3.4
Please refer to Confdential Attchment Monsanto 3.4 for the actu 2010 NPC
report through May. Confdential information is provided subject to the terms
and conditions of the protective agreement in ths proceeding.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
P AC-E-l 0-07/Rocky Mountai Power
July 12, 2010
Monsanto Data Request 3.7
Monsanto Data Request 3.7
Please explain the reasons for the 24MW reduction in Dave Johnston's peak
capacity and provide the supporting documentation.
Response to Monsanto Data Request 3.7
Assumng Monsanto is referrng to a comparson between Dave Johnston's peak
capacity included in the curent proceeding and the capacity included in the
Wyoming general rate case Docket No. 20000-352-ER-09, the Dave Johnston
peak capacity is 14MW lower in the curent proceedig. The curent capacity
excluded a tubine upgrade (l0MW tht has not occured as previously planed
and the reduction in capacity (4.2MW) due to installation of the scrubber on Dave
Johnton Unit 3.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
P AC-E-l 0-07/Rocky Mounta Power
July 12,2010
Monsanto Data Request 3.8
Monsanto Data Request 3.8
Please explain the reasons for the 6MW reduction in Jim Bridger's peak capacity
and provide the supporting documentation.
Response to Monsanto Data Request 3.8
Assumg Monsanto is referrg to a comparson between Jim Bridger's peak
capacity in the curent proceeding and the capacity included in the Wyoming
general rate case Docket No. 20000-352-ER-09, the cUrent proceeding revised
the impact of a tubine upgrade (from 9MW to 3. 7MW) and the reduction in
capacity (2MW due to instalation of the scrubber on Jim Bridger Unit 1.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
PAC-E-I0-07/Rocky Mountan Power
July 12,2010
Monsanto Data Request 3.9
Monsanto Data Request 3.9
Please provide a project breakdown of non-owned east and non-owned west wid
generation included in the GRID wind integration calculation.
Response to Monsanto Data Request 3.9
Please refer to the Company's response to Monsanto Data Request 2.12.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
P AC-E-l 0-07/Rocky Mountan Power
July 12,2010
Monsanto Data Request 3.10
Monsanto Data Request 3.10
Please provide the calculation and supporting workpapers for the Sunyside QF
pnces.
Response to Monsanto Data Request 3.10
Please refer to the Company's response to Monsanto Data Request 2.11.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
P AC-E-l 0-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.11
Monsanto Data Request 3.11
Please explai the drop in Blundell fuel prices from Wyomig Docket No. 20000-
352-ER-09 to ths docket and provide supporting workpapers.
Response to lVonsanto Data Request 3.11
In 2008 PacifiCorp Energy began an expansion project of the Roosevelt Hot
Sprigs Area (Blundell Steam Field). The project included the successfu drllng
of one production well and one injection well. The project also included the tie-in
of these new wells into the existing steam field for steam delivery to the Blundell
Plant. The cost of these wells and the well integration project was forecasted for
an in-service date of Janua 2010 and was included in the depreciation porton of
the Blundell fuel price as modeled in Wyoming Docket No. 20000-352-ER-09.
Since that time, the in-service date of the well integration project ha been moved
to December 2010. Please refer to the supporting work papers in Confdential
Attchment Monsanto 3.11. Ths inormation is confidential and is provided
subject to the terms and conditions of the protective agreement in ths procedig.
Recordholder:
Sponsor:
Brian Durng
To Be Determed
P AC-E-l 0-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.12
Monsanto Data Request 3.12
Please provide the calculation and supporting workpapers for the gas physical
included in GRI.
Response to Monsanto Data Request 3.12
Please refer to the Company's response to Monsanto Data Request 2.10.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
PAC-E-I0-07/Rocky Mountan Power
July 12,2010
Monsanto Data Request 3.13
Monsanto Data Request 3.13
Please provide the calculation and supporting workpapers for the Clay Basin
Storage included in GRID.
Response to Monsanto Data Request 3.13
Please refer to the Company's response to Monsanto Data Request 2.10.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
P AC-E-l 0-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.18
Monsanto Data Request 3.18
Please identify the transaction pull date for STF contracts included in GRID.
Response to Monsanto Data Request 3.18
The STF transactions were extracted on May 4, 2010.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
PAC-E-I0-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.24
Monsanto Data Request 3.24
Please provide the same inormation requested in the prior request for the Dunap
wind project.
Response to Monsanto Data Request 3.24
To the extent this request seeks all correspondence to management regarding the
decision to enter the transaction, PacifiCorp objects to this request on the grounds
that it is overly broad and unduly burdensome. Without waiving ths objection,
please note that Dunap is a Company-owned facilty and therefore there is no
agreement for it. The documentation that exists is associated with approvals for
the capita expenditue and is provided as redacted Confdential Attchment
Monsato 3.24. Confdential inormation is provided subject to the terms and
conditions of the protective order in ths proceeding.
Recordholder:
Sponsor:
Stacey Kusters
Hui Shu
PAC-E-IO-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.29
Monsanto Data Request 3.29
Please provide the calculation and supporting workpapers for the Grant
Reasonable credit.
Response to Monsanto Data Request 3.29
Please refer to the Company's response to Monsanto Data Request 2.10.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
PAC-E-I0-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.30
Monsanto Data Request 3.30
Please explain the methodology used to calculate the Black Hils CT purhase
contract and provide the calculation and supporting workpapers.
Response to Monsanto Data Request 3.30
Please refer to the Company's response to Monsanto Data Request 2.72.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
PAC-E-I0-07/Rocky Mountan Power
July 12,2010
Monsanto Data Request 3.31
Monsanto Data Request 3.31
Please provide the calculation and supportng workpapers for the Electric Swaps
credit included in GRID.
Response to Monsanto Data Request 3.31
Please refer to the Company's response to Monsanto Data Request 2.10.
Recordholder:
Sponsor:
HuiShu
Hui Shu
P AC-E-l 0-07/Rocky Mountan Power
July 12,2010
Monsanto Data Request 3.32
Monsanto Data Request 3.32
Please provide the calculation and supporting workpapers for the STF Index
trades included in GRID.
Response to Monsanto Data Request 3.32
Please refer to the Company's response to Monsanto Data Request 2.10.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
PAC-E-I0-07/Rocky Mountai Power
July 12,2010
Monsanto Data Request 3.33
Monsanto Data Request 3.33
Please provide calculation and support for 75% assumption utilzed on page 3.6.3
of the Green Tag revenue calculation.
Response to Monsanto Data Request 3.33
The Company considers the requested information to be of utmost commercial
sensitivity and highly confdential. Please contact Ted Weston at 801-220-2963
to discuss arangements for review.
Recordholder:
Sponsor:
Paul Johnon
Hui Shu
P AC-E-l 0-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.34
Monsanto Data Request 3.34
Please provide support for assumption of $5.00 price for remaing available sold
green tags utilzed on page 3.6.3 of the Green Tag revenue calculation.
Response to Monsanto Data Request 3.34
The $5.00 per MWH REC price is based on assumptions as explained in recent
Company IRPs:
2007 IRP Discussion:
Renewable Energy Credits - Renewable energy credits (RECs), also known as
green tags, are certificates that represent the reporting rights for a quatity of
energy generated from a specific resource. Markets have developed around
buying and sellng RECs. Consumers desirg to encourge renewable resources
may purchase RECs, sometimes matchig all or a portion of their electrc power
usage. Utilities may also purchae RECs to satisfy mium renewable energy
requirements established in some states.
Since PacifiCorp's 2003 IRP, a value has been ascribed to the green tags
generated by owned renewable energy projects. That value was estimated to be
$5 per megawatt-hour of generation for the first five year of production (constat
nomi dollars). PacifiCorp called a number of green tag suppliers to ascertn
whether the market value of RECs had substatially changed from where it has
been over the past few year. Despite the expectation that increasing stte
mimum requirements for renewable generation would push market prices up,
there was no clear indication that market prices ha gone up. The potential
market impacts of state standads was discussed, but the consensus was tht the
effect on market prices would be highy dependent on the specifcs of state
requirements, and did not clearly indicate a specific direction for green tag prices.
In light of ths, PacifiCorp has chosen to reta its REC value assumption of$5
per megawatt-hour for five year in const nomi dollars.
2008 IR Discussion:
Renewable Energy Certficàtes - Absent either a RPS compliance obligation or an
opportty to ban unbundled renewable energy certficate (RCs) for futu
year RPS compliance, PacifiCorp has historically relied on an assumption tht a
renewable project may generate $5 per megawatt-hour for five years from the sale
of unbundled RECs. Unbundled REC sales have helped mitigate the near-term
cost differential between new reewable resources and tradtiona generatig
resources.
However, once greenhouse gas emissions ar reguated surlus unbundled REC
sales would cease. PacifiCorp assumes if an unbundled REC is sold, then the
underlying power (aka "null" power) would likely have a carbon emissions rate
imputed to it by regulatory autorities, thus obligating PacifiCorp to purchae
either allowances or cabon offsets sucient to cover the imputed carbon
P AC-E-l 0-07/Rocky Mountai Power
July 12, 2010
Monsanto Data Request 3.34
emissions. By sellng an unbundled REC, PacifiCorp may generate revenue, but
risks incurng a new carbon liabilty. Once greenhouse gases are reguated-and
until the unbundled REC and carbon markets are reconciled-PacifiCorp plans to
cease sellng unbundled RECs.
Recordholder:
Sponsor:
Paul Johnon
Hui Shu
P AC-E-l 0-07/Rocky Mountain Power
July 12,2010
Monsanto Data Request 3.35
Monsanto Data Request 3.35
Please provide calculation and support for non-wid 2010 vintage REC sales.
Response to Monsanto Data Request 3.35
Please refer to Confdential Attchment Monsanto 3.35. Ths inormation is
confdential and is provided subject to the terms and conditions of the protective
agreement in ths proceeding.
Recordholder:
Sponsor:
Paul Johnson / Brian Dickman
Hui Shu
P AC-E-l 0-07/Rocky Mountai Power
July 12,2010
Monsanto Data Request 3.36
Monsanto Data Request 3.36
Please provide an update of the Green Tag revenue adjustment for tranactions
completed as of June 30, 2010.
Response to Monsanto Data Request 3.36
There are no additional transactions completed as of June 30, 2010 that were not
already included in the case.
Recordholder:
Sponsor:
Paul Johnson
Hui Shu
PAC-E-I0-07/Rocky Mountan Power
July 12,2010
Monsanto Data Request 3.37
Monsanto Data Request 3.37
Please list all tyes of actions that the Company taes to balance it system for
inter-hour wind integration, includig whether wholesale tranactions are STF or
non-firm and ran them from highest to.lowest in terms of historical / expected
volumetrc use.
Response to Monsanto Data Request 3.37
Actions taken to balance the system for inter-hour wind integration include the
followig, in order of expected volumetrc use:
. Hourly fi wholesale transactions
. Re-dispatch of wholesale contrcts with hourly flexibilty
. Re-dispatch of generation resources
. Hourly non-fi wholesale trsactions
. Wind curlment
Recordholder:
Sponsor:
Greg Maxfield
Hui Shu
P AC-E-l 0-07/Rocky Mounta Power
July 12,2010
Monsanto Data Request 3.38
Monsanto Data Request 3.38
Please provide a breakdown of the $6.50IMWh charge for wid integration by
time periods and components that are available.
Response to Monsanto Data Request 3.38
Please refer to the Company's response to Monsanto Data Request 2.20. The
Company does not have fuer details.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
P AC-E-l 0-07/Rocky Mountan Power
July 12,2010
Monsanto Data Request 3.39
Monsanto Data Request 3.39
Please provide the Company's estimate of the amount of spinng reserves
required to meet the intra-hour reserve requirement for wind generation included
inGRI.
Response to Monsanto Data Request 3.39
The amount of sping reserve required in GRI is determned based on the
NERC requiement that the Company needs to hold an amount of contigency
reserve that equals 5% of wid generation, and half of that must be sping. In
addition, the wid integration chage incorporates the additional intra-hour
requiement to integrate the intermittent resource into the Company's portfolio.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
P AC-E-l 0-07/Rocky Mountan Power
July 12,2010
Monsanto Data Request 3.40
Monsanto Data Request 3.40
Has the Company performed any calculations of intra-hour wid integration costs
using the GRID model? If yes, please provide the calculation, supportng
workpapers and conclusions reached for each calculation.
Response to Monsanto Data Request 3.40
Yes. The Company has recently calculated the impact of modeling a higher
reserve requirement of the wind facilties: addi 33% to the NERC required 5%
reserve requirement. That is, the reserve requirements of the wid facilties are
assumed to be 37% of the generation, and half of them spinng. The increases in
net power costs which resulted from higher reserve requirements are comparble
to the wid integration costs tht the Company used. By chagig ths one
parameter, Monsanto should be able to perform the study.
Recordholder:
Sponsor:
Hui Shu
Hui Shu
PAC-E-I0-07/Rocky Mountan Power
July 12,2010
Monsanto Data Request 3.41
Monsanto Data Request 3.41
Please provide a GRID model populated with the latest forecast inormation for
201 i, 2012 and 2013 so that Monsanto can evaluate the system value of
Monsanto curlments and non-spin reserves.
Response to Monsanto Data Request 3.41
The Company objects to the request on the basis that the Company has not
prepared such an analysis. The Company has provided the GRI model to
Monsanto so they can perform their own anysis. The net power cost stdy in
the curent proceeding includes the contract that was entered into in 2007 and is
curently in effect for Monsanto curlment and non-spin reserves.
Recordholder:
Sponsor:
Hui Shu
Hui Shu