20100809PAC to Staff 77-108, 110.pdf

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~ROCKY MOUNTAIN
POWER
A DISION OF PAAC
ot: ('~,~-,i,V
201 South Main, Suite 2300
Salt Lake City, Utah 84111
ZDIßAUG -9 AM to: 06
August 6, 2010
Scott Woodbur
Idaho Public Utilties Commission
472 W. Washington
Boise, ID 83702-5918
Neil Price
Idaho Public Utilties Commssion
472 W. Washington
Boise, ID 83702-5918
RE: ID P AC-E-l 0-07
IPUC Data Requests (77-111)
Please find enclosed Rocky Mountain Power's responses to IPUC Data Requests 77-111,
excluding 109 and 111. These responses will be provided when available. Provided on the
enclosed CD are Attchments ¡PUC 77, 81 -(1-2), 85, 93, and 101. Provided on the enclosed
Confdential CD are Confdential Attachments IPUC 78 -(1-2), 79 -(1-2),82,84,86 -(1-2),87-
(1-2),88,90,94 -(1-2),95 -(1-2), 99, 100 -(1-3), and 110 -(1-2). 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,
1d .,~ /4e
J. Ted Weston
Manager, Regulation
Enclosure:
C.c. Rady Budge/Monsato
Jean Jewell/UC
Eric OlsenlIPA
Ben Oto/ICL
'-.
PAC-E-I0-07/Rocky Mountain Power
Augut 6, 2010
IPUC Production Data Request 77
IPUC Production Data Request 77
Pleas provide a copy of an evaluation manua or other document that describes
how bids submitted in the 2008R RFP were to be evaluated. If no manua exists,
please provide a description of all price and non-price scorig criteria including
gudelines related to how scores were to be assigned and how project costs were
to be computed.
Response to IPUC Production Data Request 77
Pleae refer to Attchment IPUC 77. Section 6 (pages 19-24) describe how bids
were evaluated.
Recordholder:
Sponsor:
Rick Link
Mark Tallman
"
P AC-E-l 0-07/Rocky Mountain Power
August 6, 2010
IPUC Production Data Request 78
IPUC Production Data Request 78
Please provide copies of all spreadsheets, scores and analysis used to evaluate
price and non-price factors for development of the Initial Shortlist for the 200SR
RFP (for example, PacifiCorp's Strctug and Pricing RFP Model), Please
provide a sumar of the results of the Intial Shortlist evaluation, Please provide
the requested information in an electronic, executable format with formulas intact.
Response to IPUC Production Data Request 78
Please refer to Confdential Atthment IPUC 78 -1 for a sumar of intial
shortlist results.
Please refer to Confdential Attchment IPUC 78 -2 for a table which identifies
the nae of each highly confdential atthment contaning the analysis
supporting initial shortlist price scores for each bid and the name of each
confdential attchment containg the initial shortlist non-price score for each
bid.
The Company considers the economic analyses of RFP bids to be of utmost
commercial sensitivity and highy confdentiaL. The models will be made
available for review at the Company's offces; no copies can be made. Please
contact Ted Weston at [phone] to discuss argements for review onsite,
Confdential information is provided subject to the terms and conditions of the
protective agreement.
Recordholder:
Sponsor:
Rick Link
Mark Tallman
-.
PAC-E-1O-07/Rocky Mountain Power
August 6, 2010
IPUC Production Data Request 79
IPUC Production Data Request 79
Please provide copies of all sumar spreadsheets, scores and analysis used to
evaluate price and non-price factors for development of the Final Shortlist for the
2008R RFP, It is not necessar to provide a copy of the IR PaR model, but Sta
would like to see the results of the IR PaR anysis and the results of the ACC
calculations for each of the five proposals on the Initial Shortlist. Please clearly
identify the Forward Price Cure used for the analysis and state the date on which
it was developed. Please provide the requested information in an electronic,
executable format with formulas intact.
Response to IPUC Production Data Request 79
Please refer to Confdential Attachment IPU C 79 -1 for a sumar of final
shortlist results,
Please refer to Confdential Atthment IPUC 79 -2 for a table which identifies
the name of each highy confdential attchment containing the analysis
supporting the final shortlist evaluation.
The forward price cure used to develop project revenues for each bid under the
next highest alternative cost of compliance method (the ACC method) was the
March 31, 2008 forward price curve completed on March 31, 2008,
The Company considers the economic analyses of RFP bids to be of utmost
commercial sensitivity and highy confdentiaL. The models will be made
available for review at the Company's offces; no copies can be made. Please
contat Ted Weston at [phone] to discuss argements for review onsite.
Confdential information is provided subject to the terms and conditions of the
protective order in this proceeding.
Recordholder:
Sponsor:
Rick Lin
Mark Tallman
-,
PAC-E-10-07/Rocky Mountain Power
August 6, 2010
IPUC Production Data Request 80
IPUC Production Data Request 80
Please provide a copy of all reports prepared by the independent evaluator for the
2008R RFP, If an independent evaluator was not used, please explain why.
Response to IPUC Production Data Request 80
The 2008R RFP did not use an independent evaluator. The 2008R RFP solicited
resources for less than 100 megwatt therefore the procurement rues in Oregon
and Uta did not apply.
Recordholder:
Sponsor:
Stacey Kusters
Mark Tallman
-.
PAC-E-l 0-07/Rocky Mountan Power
August 6, 2010
IPUC Production Data Request 81
IPUC Production Data Request 81
Please provide a copy of the reguatory gudelines for resource procurement as
stipulated by the Oregon and Uta Commssions,
Response to IPUC Production Data Request 81
Please refer to Attchments IPUC 81 -1 and IPUC 81 -2,
Recordholder:
Sponsor:
Stacey. Kusters
Mark Tallman
~.
PAC-E-1O-07/Rocky Mountain Power
Augus 6, 2010
IPUC Production Data Request 82
IPUC Production Data Request 82
Please provide monthy generation totas for the Three Buttes project from the
commercial operation date of December 1, 2009 through the curent month,
Response to IPUC Production Data Request 82
Please refer to Confdential Attchment IPUC 82 for the requested information.
Confdential information is provided subject to the terms and conditions of the
protective agreement in ths proceeding,
Recordholder:
Sponsor:
Hui Shu
Stefan Bird
~,
PAC-E-IO-07/Rocky Mounta Power
August 6, 2010
IPUC Production Data Request 83
IPUC Production Data Request 83
Pleae separately identify and quatify all amounts paid for RECs associated with
the Thee Buttes PP A.
Response to IPUC Production Data Request 83
The Thee Buttes PP A contas a single contract price, The contract price is
derined as follows in Section 1,1 of the agreement:
"Contract Price" means the applicable price, expressed in
$/MWfor Net Output, Green Tags and Capacity Rights
stated in Section 5.1.
The contract price is set fort in Exhibit 5.1 of the PP A, Please refer to the
Company's response to IPUC Production Data Request 84 for a copy of Exhbit
5,1.
Recordholder:
Sponsor:
Paul Clements
Stefan Bird
~,
PAC-E-1 0-07/Rocky Mountan Power
Augut 6, 2010
IPUC Production Data Request 84
IPUC Production Data Request 84
Please provide (in an electronic form only) all exhbits attched to the Thee
ButtesPPA,
Response to IPUC Production Data Request 84
Please refer to Confdential Attchment IPUC 84, Confdential information is
provided subject to the terms and conditions of the protective agreement in this
proceeding,
Recordholder:
Spon~or:
Paul Clements
Stefan Bird
~.
P AC-E-1 0-07/Rocky Mountain Power
August 6, 2010
IPUC Production Data Request 85
IPUC Production Data Request 85
Please provide a copy of an evaluation manua or other document that describes
how bids submitted in the Amended 2008R-l RFP were to be evaluated (if
different than the manual used for the 2008R RFP). If no manual exists, pleae
provide a description of all price and non-price scoring criteria including
guidelines related to how scores were to be assigned and how project costs were
to be computed.
Response to IPUC Production Data Request 85
Please refer to the Attchment IPUC 85. Section 6 (pages 26-33) describes how
bids were evaluated.
Recordholder:
Sponsor:
Rick Link
Mark Tallman
PAC-E-I0-07/Rocky Mountai Power
August 6, 2010
IPUC Production Data Request 86
IPUC Production Data Request 86
Please provide copies of all spreadsheets, scores and analysis used to evaluate
price and non-price factors for development of the thee Initial Shortlists for the
Amended 2008R-l RFP (for example, PacifiCorp's Strctung and Pricing RFP
Model), Please provide a sumar of the results of the Initial Shortist
evaluation, Please provide the requested information in an electronic, executable
formt with formulas intact.
Response to ¡PUC Production Data Request 86
Please refer to Confdential Attchment IPUC 86 -1 for a sumar of initial
shortlist results,
Please refer to Confdential Attchment IPUC 86 -2 for a table which identifies
the nae of each highy confdential attachment containg the analysis
supportng initial shortlist price scores for each bid and identifies the name of
each confdential attchment contanig the initial shortlist non-price score for
each bid,
The Company considers the economic analyses ofRFP bids to be of utmost
commercial sensitivity and highy confdentiaL. The models will be made
available for review at the Company's offces; no copies can be made, Please
contat Ted Weston at [phone] to discuss argements for review onsite.
Confdential inormation is provided subject to the terms and conditions of the
protective agreement in ths proceeding.
Recordholder:
Sponsor:
Rick Link
Mark Tallman
P AC-E-1 0-07/Rocky Mountain Power
Augut 6, 2010
IPUC Production Data Request 87
IPUC Production Data Request 87
Please provide copies of all sumar spreadsheets, scores and analysis used to
evaluate price and non-price factors for development of the Final Shortlist for the
Amended 2008R-1 RFP. It is not necessar to provide a copy of the IR PaR
model, but Sta would like to see the results of the IR PaR analysis and the
results of the ACC calculations for each of the five proposals on the Initial
Shortlist. Please clearly identify the Forward Price Cure used for the analysis
and state the date on which it was developed. Please provide the reuested
information in an electronic, executable format with formulas intact.
Response to IPUc Production Data Request 87
Please refer to Confdential Attchment IPUC 87 -1 for a sumar of final
shortlist results.
Please refer to Confdential Attachment IPUC 87 -2 for a table which identifies
the name of each highy confdential attchment contanig the analysis
supporting the fmal shortlist evaluation.
The forward price cure used to develop project revenues for each bid under the
next highest alternative cost of compliance method (the ACC method) was the
Februar 27, 2009 forward price cure completed on Febru 27,2009,
The Company considers the economic analyses ofRFP bids to be of utmost
commercial sensitivity and highy confdential, The models will be made
available for review at the Company's offces; no copies can be made, Please
contact Ted Weston at [phone] to discuss arangements for review onsite.
Confdential information is provided subject to the terms and conditions of the
protective agreement in this proceeding,
Recordholder:
Sponsor:
Rick Lin
Mark Tallman
P AC-E-1 0-07/Rocky Mounta Power
August 6, 2010
¡PUC Production Data Request 88
IPUc Production Data Request 88
Please provide (in an electronic form only) all exhibits in the Boston Pacific
report of the Independent Evaluators in the 2008R-1 RFP,
Response to IPUc Production Data Request 88
Please refer to Confdential Attchment IPUC 88, Ths inormation is
confdential and is provided subject to the terms and conditions of the protective
agreement in ths proceeding,
Recordholder:
Sponsor:
Stacey Kusters
Stefan Bird
P AC-E-IO-07 /Rocky Mountain Power
August 6,2010
IPUC Production Data Request 89
IPUC Production Data Request 89
Pleas provide a copy of any independent evaluator's report other than the Boston
Pacific report prepared for the Oregon PUC,
Response to IPUc Production Data Request 89
No independent evaluator report were prepared other than the Boston Pacific
report prepared for the Oregon PUC.
Recordholder:
Sponsor:
Staey Kusters
Mark Tallman
PAC-E-10-07/Rocky Mountan Power
August 6, 2010
IPUC Production Data Request 90
IPUC Production Data Request 90
Please provide (in an electronic form only) all exhbits attached to the Top of the
WorldPPA,
Response to IPUc Production Data Request 90
Please refer to Confdential Attchment IPUC 90, Confdential inormation is
provided subject to the terms and conditions of the protective ageement in this
proceeding.
Recordholder:
Sponsor:
Jim Schroeder
Stefan Bird
PAC-E-1 0-07/Rocky Mounta Power
August 6, 2010
IPUC Production Data Reauest 91
¡PUC Production Data Request 91
Please separately identify and quatify all amounts paid for RECs associated with
the Top of the World PPA.
Response to IPUc Production Data Request 91
The evaluation of Top of World PPA does not have a seperate amount paid for
RECs,
Recordholder:
Sponsor:
Stacey Kusters
Stefan Bird
l'
P AC-E-1 0-07/Rocky Mountan Power
August 6,2010
IPUC Production Data Request 92
IPUc Production Data Request 92
It appear that all of the bids placed on the final shortlist had positive ACC and
"Adjusted ACC" scores, Please explain why the Company stil decided to pursue
the winng bid when its ACC score was positive,
Response to IPUc Production Data Request 92
When compared to other bids, the Company owned project was one of the most
favorable resources for customers on a least cost risk adjusted basis,
Recordholder:
Sponsor:
Stacey Kusters / Rick Lin
Mark Tallman
P AC-E-1 0-07/Rocky Mounta Power
August 6, 2010
IPUC Production Data Request 93
IPUc Production Data Request 93
Please provide a copy of an evaluation manua or other document that describes
how bids submitted in the Amended 2008R-1 RFP were to be evaluated (if
different th the manual used for the 2008R or 2008R-1 RFPs), If no manual
exists, please provide a description of all price and non-price scoring criteria
including guidelines related to how scores were to be assigned and how project
costs were to be computed,
Response to IPUc Production Data Request 93
Please refer to Attchment IPUC 93 (the Company assumes IPUC is askig for
the manua for the 2009R RFP rather than the 2008R-l RFP requested). Section 6
(pages 20-27) describes how bids were evaluated,
Recordholder:
Sponsor:
Rick Lin
Mark Tallman
PAC-E-l 0-07/Rocky Mountain Power
August 6, 2010
IPUC Production Data Request 94
IPUc Production Data Request 94
Please provide copies of all spreadsheets, scores and anysis used to evaluate
price and non-price factors for development of the thee Initial Shortlists for the
Amended 2009R RFP (for example, PacifiCorp's Strctung and Pricing RFP
Model), Please provide a sumar of the results of the Intial Shortlist
evaluation, Please provide the requested information in an electronic, executable
format with formulas intact.
Response to IPUc Production Data Request 94
Please refer to Confdential Attchment IPUC 94 -1 for a sumar of intial
shortlist results,
Please refer to Confdential Attachment IPUC 94 -2 for a table which identifies
the nae of each highy confdential attchment containg the analysis
supporting intial shortlist price scores for each bid and a table which identifies
the nae of each confdential attchment contang the initial shortlist non-price
score for each bid,
The Company considers the economic analyses of RFP bids to be of utmost
commercial sensitivity and highly confdentiaL. The models will be made
available for review at the Company's offces; no copies can be made, Please
contact Ted Weston at [phone] to discuss arangements for review onsite,
Confdential information is provided subject to the terms and conditions of the
protective agreement in this proceeding,
Recordholder:
Sponsor:
Rick Lin
Mark Tallman
PAC-E-1O-07/Rocky Mountain Power
August 6, 2010
IPUC Production Data Request 95
IPUc Production Data Request 95
Please provide copies of all sumar spreadsheets, scores and anysis used to
evaluate price and non-price factors for development of the Final Shortlist for the
Amended 2009R RFP. It is not necessar to provide a copy of the IR PaR
model, but Staff would like to see the results of the IR PaR analysis and the
results of the ACC calculations for each of the five proposals on the Intial
Shortlist. Please clearly identify the Forward Prce Cure used for the analysis
and state the date on which it was develope, Please provide the requested
information in an electronic, executable format with formulas intat.
Response to IPUc Production Data Request 95
Please refer to Confdential Attchment IPU C 95 -1 for a sumar of final
shortist results,
Please refer to Confdential Attchment IPUC 95 -2 for a table which identifies
the name of each highy confdential atthment contanig the analysis
supporting the final shortlist evaluation.
The forward price cure used to develop project revenues for each bid under the
next highest alternative cost of compliance method (the ACC method) was the
August 24, 2009 forward price cure completed on August 24, 2009.
The Company considers the economic analyses of RFP bids to be of utmost
commercial sensitivity and highy confdential, The models will be made
available for review at the Company's offces; no copies can be made, Please
contat Ted Weston at [phone] to discuss argements for review onsite.
Confidential information is provided subject to the terms and conditions of the
protective agrement in ths proceeding,
Recordholder:
Sponsor:
Rick Lin
Mark Tallman
PAC-E-10-07/Rocky Mounta Power
Augut 6, 2010
IPUC Production Data Request 96
IPUC Production Data Request 96
Please explain why a Company Benchmark was prepared and evaluated in the
2009R RFP, but not in either the 2008R or 2008R-1 RFPs,
Response to IPUc Production Data Request 96
The due date for proposals under RFP 2008R was March 31, 2008, At that time,
the Company did not have a wid-powered generation resource at a development
stage such that it met the benchmk requiements of the RFP.
Likewise, a benchmark proposal would have had to be submitted in RFP 200SR-1
by December 8, 2008. At that time, the Company did not have a wid-powered
generation resource at a development stage such that it met the benchmark
requiements of the RFP.
Recordholder:
Sponsor:
Mark Tallman
Mark Tallman
PAC-E-1O-07/Rocky Mounta Power
August 6, 2010
IPUC Production Data Request 97
IPUC Production Data Request 97
Please explain why it was a goal of the Company to select a mix of PP As and
BOTs in each of the thee Initial Shortlists,
Response to IPUc Production Data Request 97
The Company did not have a pre-determined goal to select resources with a PP A
or BOT strctue. The evaluation of bids in the RFP process allows the Company
to compare bids with either tye of strctue to establish the most favorable
resource to customers on a least cost least risk adjusted basis, As such, the
Company encourges a diverse range of bids (fuel, strctues, and counterparies)
in the procurement process. Notwthstading any desire by the Company to
receive a varety of bid structues, the market is the one that determines the mix of
bids received,
Recordholder:
Sponsor:
Stacey Kusters / Rick Link
Mark Tallman
PAC-E-I0-07/Rocky Mountan Power
August 6,2010
IPUC Production Data Request 98
IPUC Production Data Request 98
Please explain why a Company-owned project was selected in the 2009R RFP
instead of a PP A.
Response to IPUc Production Data Request 98
When compared to other bids, the Company owned project was one of the most
favorable resources for customers on a least cost risk adjusted basis.
Recordholder:
Sponsor:
Stacey Kusters / Rick Link
Mark Tallman
PAC-E-10-07/Rocky Mountan Power
Augut 6, 2010
IPUC Production Data Request 99
IPUC Production Data Request 99
Please provide (in an electronic form only) all exhbits in the Boston Pacific Final
Closing Report of the Independent Evaluators in the 2009R RFP,
Response to IPUc Production Data Request 99
Please refer to Confdential Atthment IPU C 99, Ths inormation is
confdential and is provided subject to the terms and conditions of the protective
agreement in place in this proceeding,
Recordholder:
Sponsor:
Stacey Kusters
Mark Tallman
P AC-E-1 0-07/Rocky Mountan Power
August 6, 2010
IPUC Production Data Request 100
IPUC Production Data Request 100
Please provide a copy of any independent evaluator's report other th the Boston
Pacific Benchmark Memo and the Boston Pacific Closing Report prepared for the
Oregon PUC.
Response to IPUc Production Data Request 100
Please refer to Confdential Attchments IPUC 100 -1, though IPUC 100 -3.
Ths inormation is confdential and is provided subject to the terms and
conditions of the protective agrement in ths proceeding,
Recordholder:
Sponsor:
Stacey Kusters
Mark Tallman
.
PAC-E-10-07/Rocky Mountain Power
August 6, 2010
IPUC Production Data Request 101
IPUC Production Data Request 101
Please provide workpapers or other documentation showig how the estimated
operation and maintenance costs of $2.4 millon for the Dunap I project were
derived,
Response to IPUc Production Data Request 101
Please refer to Attchment IPUC 101,
Recordholder:
Sponsor:
Karl Mortensen
Stefan Bird
..
PAC-E-10-07/Rocky Mounta Power
Augut 6, 2010
IPUC Production Data Request 102
IPUc Production Data Request 102
Please describe any safeguads or controls that have ben put in place to gud
against the possibilty that the ultimate costs to constrct the Dunap 1 project will
not exceed the costs assumed in the RFP bid evaluations,
Response to IPUc Production Data Request 102
At the time of submitt into the RFP 2009R process, a large majority of the costs
associated with the Dunap I project could reasonably be forecasted on the basis
of then-curent contractul commtments or actu expenditues up until that tie,
For example, propert costs were materially known and major equipment in the
form of wind tubine generators, switch gear and the collector substation step-up
transformer were subject to contrct. In addition, the balance of plant
constrction costs was contractuly established at that point in time, Finally,
prudent contingency was included in the estimate, In tota, at the time of
submitt into the RFP 2009R process, approximately 95% of the Dunap I costs
could reasonably be forecasted on the basis of contrctu commitments or actu
spend to date,
Recordholder:
Sponsor:
Mark Tallman
Mark Tallman
. .., -r
PAC-E-I0-07/Rocky Mountain Power
August 6, 2010
IPUC Production Data Request 103
IPUC Production Data Request 103
It appear that all of the bids placed on the final shortlist had positive ACC and
"Adjusted ACC" scores, Please explain why the Company stil decided to pursue
the winning bid when its ACC score was positive.
Response to IPUc Production Data Request 103
Please refer to the Company's response to IPUC Data Request 92.
Recordholder:
Sponsor:
Staey Kusters
Mark Tallman
..
PAC-E-1O-07/Rocky Mounta Power
Augst 6, 2010
IPUC Production Data Request 104
IPUc Production Data Request 104
For each ófthe wind resources discussed in the testimony of Mark Tallman,
please describe in detal how the projects were identified and selected. Please
discuss any RFPs that were issued and present the results of those RFPs, Please
provide copies of all spreadheets or other analysis of both quatitative and
qualitative factors, including economic analysis used to compare proposals,
Response to IPUc Production Data Request 104
The Company developed each wid resource discussed in the testimony of Mark
Tallman outside of a renewable request for proposa process. Please refer to the
Company's response to IPUC Data Requests 107 and ios for a description of the
competitive procurement processes associated with each wind project.
Recordholder:
Sponsor:
Mark Tallman
Mark Tallman
. .
P AC-E-10-07 /Rocky Mounta Power
August 6, 2010
IPUC Production Data Request 105
IPUC Production Data Request 105
Please describe how the Company decides whether to acquire new wind
generation resources through PP As vs. though BOT arangements, In your
answer, specifically address how the Company weighs the risks or owng and
operating a project (e,g" online delays, generation shortfalls, equipment failurs,
mechancal availability, etc,) against PPAs in which these types of risks are borne
by the project owner,
Response to IPUc Production Data Request 105
The Company has acquired new wid generation resources via the renewable
resource for proposal process (RFP) via the build own trfer (BOT) and power
purchase agreements (pP A) strctues. The Company compares all valid and
compliant alternatives presented to it by bidders via its renewable resource RFPs;
PP A, BOT or otherwse. The comparson metrcs are the levelized cost of energy
(LCOE) as well as other non-price factors,
The Company does not agree that the project owner under a PP A inerently bear
the referenced risks, For example, no bidder is obligated to bid based on its costs,
Bidders are free to bid whatever price they believe the Company will tract at.
Therefore, a bidder is able to hedge whatever risks it bears by chaging a premium
above cost or by requiring an internal rate of retu above their cost of capita,
One risk the Company has quatified in recent renewable RFPs has been the risk
to customers where the Company does not own the right to continue operating or
repower the asset at cost at the end of its initial life (the "Termal Value").
Typically, in a PPA strctue, the Company is unable to receive the Termal
Value right at cost, Under a BOT strctue, the Company holds the Terminal
Value, The Company has thus quatified Termina Value associated with
alternatives in its more recent renewable RFPs,
Finally, thus far, the Company has been unable to receive contractu assurances
associated with PP A generation levels or BOT generation levels,
Recordholder:
Sponsor:
Mak Tallman
Stefan Bird
"
P AC-E-1 0-07/Rocky Mountain Power
August 6, 2010
IPUC Production Data Request 106
IPUc Production Data Request 106
Please describe how transmission costs are considered in the analysis of wind
project proposals, For each wid project discussed by Company witnesses in this
case, please state the transmission costs associated with the project and describe
how each cost was determined,
Response to IPUc Production Data Request 106
The Company's valuation of wind projects contan the expected dirctly assigned
transmission interconnection costs associated with that paricular wind project.
Costs associated with interconnection facilities classified as network facilties are
not included in the analysis since their cost allocation between different tyes of
transmission customers is determined by the Federal Regulatory Commssion
(FERC), In addition, FERC determines applicable cost recovery methodologies
based on transmission taiffs approved or determined by FERC,
Recordholder:
Sponsor:
Mark Tallman / Stacey Kusters
Mark Tallman / Stefan Bird
4., .
PAC-E-I0-07/Rocky Mountan Power
August 6, 2010
IPUC Production Data Request 107
IPUC Production Data Request 107
Please discuss the procurement process for each of the following categories for
wind projects owned and operated by the Company:
A, materials and equipment (e.g., wid tubine generators, electrical generators,
communcation and control facilties, substations, transformers, etc,)
B, labor and professiona services (e,g" constrction contracts, engineering
contracts, permitting contracts, etc,)
C. operation and maintenance
In your answers, please specifically address whether the procurement process is
competitive, and discuss any specific practices or procedures tht help to ensure
that materials, equipment, labor, professional servces, and operation and
maitenace are procured for the lowest cost.
Response to IPUc Production Data Request 107
The response below to IPUC 107 addresses the Seven Mile Hil, Glenrock,
Rollng Hils, High Plai, McFadden Ridge I, Glenrock III and Seven Mile Hil
II wid resources,
A. Regarding wid tubine generators (WTGs), please refer to IPUC Data
Request 108. Other than the WTGs and a backup generator for the
operations/maintenance buildig at Seven Mile Hil, there were no other
electrcal generators procured, Equipment and constrction services were
competitively procured for the Seven Mile Hil, Glenrock, Rollng Hils and
High Plains projects, The on-site equipment and constrction servces
contractor utilzed for Seven Mile Hil, Glenrock and Rolling Hils was used
for Glenrock III and Seven Mile Hil II on a sole source basis due to
permitting restrctions and to gai cost effciencies. The on-site equipment
and constrction services contractor utilzed for High Plains was utilzed for
McFadden Ridge II on a sole source basis due to permitting restrctions and to
gain cost effciencies,
B. Please refer to A, above regarding constrction services. Engineerig labor
and professional services for the projects referenced above were provided by
vendors who had previously been established via a competitive procurement
process or were otherwse identified as the preferred provider for the specific
professional service(s) requied,
C, Operation and maitenance services were acquied via competitive
procurement processes,
Recordholder:
Sponsor:
Mark Tallman
Mark Tallman
.. .. .
PAC-E-IO-07/Rocky Mountain Power
Augut 6, 2010
IPUC Production Data Request ios
IPUc Production Data Request 108
Please explain why all of the wind tubine generators for the wind resources
discussed by Mark Tallman have been acquied from GE, Were bids obtained
from other tubine manufactuers?
Response to IPUc Production Data Request 108
The wind tubine generators (WTGs) associated with Seven Mile Hil and Rolling
Hils were procured on a sole source basis due to limited market availabilty and
the then-curent expected expiration of Federal production ta credits at the end of
2008,
The WTGs associated with Glenrock were procured on a sole source basis due to
limited market availability and the then-curent expected expiration of Federal
production ta credits at the end of 2008, However, a bid was received from
another tubine supplier who claimed availabilty, Because of limted market
availability, it was determined to be a sole source procurement.
The WTGs associated with High Plains, McFadden Ridge I, Glenrock II and
Seven Mile Hil II were acquied via a competitive procurement process,
Recordholder:
Sponsor:
Mark Tallma
Mark Tallman
It .. ,.
P AC-E-l 0-07/Rocky Mountain Power
Augut 6, 2010
IPUC Production Data Request 110
IPUC Production Data Request 110
For each of the wind resources, please compare the final cost of each project as
booked for ratemakg purses to the costs tht were assumed for each project
durng the evaluations that compared the projects to other alterntives. Please
explain any instaces wherein the final project costs exceeded bid costs or other
intial estimates,
Response to IPUc Production Data Request 110
Please refer to Confdential Atthments IPUC 110 -1 and 110 -2 for a
comparson of the amounts included in Docket PAC-E-1O-07 and the costs
contaned in the individual project approval documents. Confdential inormation
is provided subject to the terms and conditions of the protective agreement in ths
proceeding,
Recordholder:
Sponsor:
Steven R. McDougal/Mark Tallman
Mark Tallman