20100827PAC to Monsanto 9 (1-7).pdf

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~ROCKY MOUNTAIN
POWER
A DIISION OF PAACORP
August 26,2010
Radal C. Budge
RACIN, OLSON, NY, BUDGE &
BAILEY, CHATERED
P.O. Box 1391; 201 E. Center
Pocatello, Idaho 83204-1391
RE: ID PAC-E-1O-07
Monsanto Data Request Set 9 (1-7)
C' t: (" r- ,Fi=-.v,Cl
iow AIlS 27 AM 9: I 7
unL~Wmp
201 South Main, Suite 2300
Salt Lake City, Uta 84111
Please fid enclosed Rocky Mountain Power's responses to Monsanto Data Requests 9.1-9.7.
Provided on the enclosed Conf4ential CD are Confdential Atthments Monsanto 9.1,9.3, and
9.5 -(1-2). The Confdential Attchments are Confdential and are provided to pares tht have
signed a protective order in ths docket:
If you have any questions, please feef free to call me at [phone].
Sincerely,
J"'~ k: Ú/~ i~
J. Ted Weston
Manager, Reguation
Enclosur:
C.c: James R. Smith
Richad Anderson
Gerge C. Carer, III
Denns Pesea
Gath R. Kajander
Mauce Brubaker
Brian Colli
Michal Gorman
Kath Iverson
Mark Widmer
EricL. Olsen
Jea Jewell
Ben Otto
)PAC-E-1 0-07/Rocky Mountain Power
August 26,2010
Monsanto Data Request 9.1
Monsanto Data Request 9.1
Please provide the root cause analyses and other communications which discussed
the Naughton 3 outages that occured during April and May 2010, that led to
payment of liquidated damages.
Response to Monsanto Data Request 9.1
There was no outage at Naughton 3 in April or May of2010 that resulted in
liquidated damages. Please refer to Confidential Attachment Monsanto 9.1 for
the Root Cause Analysis for Naughton 3 related to the spring 2009 outage. This
information is confdential and is provided subject to the terms and conditions of
the protective agreement in this proceeding.
Recordholder:
Sponsor:
Brad Holmes
Chad Teply
.:
,J PAC-E-10-07/Rocky Mountain Power
August 26, 2010
Monsanto Data Request 9.2
Monsanto Data Request 9.2
Please provide the calculation of liquidated damages related to the above
referenced Naughton 3 outages, the date the payment was received and the FERC
account the payment was booked to.
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Response to Monsanto Data Request 9.2
The Company received $500,000 in liquidated damages for the extended outage at
Naughton 3 based on the maximum amount agreed to in the contract. A credit for
this amountwas received on Siemens invoice 96030962, dated 06/09/2009. The
credit was recorded in FERC 555, Purchased Power Expense.
Recordholder: Chuck Moulton
Sponsor: Chad Teply
Î ¡ ¡, . ;,' ::1.
PAC-E-10-07/Rocky Mountain Power
August 26, 2010
Monsanto Data Request 9.3
Monsanto Data Request 9.3
Please identify the specific Naughton 3 planed and or forced outages shown in
Confidential Attachment Monsanto 2.8-2 related to the liquidated damage
payment and the portion of each event related to the liquidated damages.
The specific event pertaining to the i1quidated damages payment is included in
Confidential Attachment Monsanto 9.3. .This information is confidential and is
provided subject to the terms and conditions of the protective agreement in this
proceeding.
Response to Monsanto Data Request 9.3
Recordholder:
Sponsor:
Chuck Moulton
Chad Teply
,j'
't
PAC-E-1 0-07/Rocky Mountain Power
August 26,2010
Monsanto Data Request 9.4
Monsanto Data Request 9.4
Please identify whether the liquidated damages payment received by the
Company for these outages has been included in the curent filing or a previous
fiing. If they are included in the current filing please identify where they are
included.
Response to Monsanto Data Request 9.4
As mentioned in the response to DR 9.2, the liquidated damage outage costs were
recorded in FERC account 555 in June 2009 as an offset to purchased power. In
the curent general rate case the histQrical period costs are removed and
normalized through the net power' cost adjustment shown on page 5.1 of Steve
McDougal's Exhibit No. 2. ' '
Recordholder:
Sponsor:
Steve McDougal
Steve McDougal
'1,"'. ¡.1
PAC-E-10-07!Rocky Mountain Power
August 26, 2010
Monsanto Data Request 9.5
Monsanto Data Request 9.5
Please provide a sumary of any other liquidated damage payments received by
the Company during 2009 and 2010 related to outages or delays for new
generation projects or contracts. For liquidated damages related to outages
provide the same information requested in Monsanto 9.1 through 9.4. For
liquidated damages related to new generation or contracts provide the information
requested in Monsanto 9.2 and Monsanto 9.4.
Response to Monsanto Data Request 9.5
In addition to the Naughton 3 outage specifically mentioned in Monsanto 9.1
through 9.3, there were two additional liquidated damage payments received in
2009 and 2010, both related to plant outages.
Jim Bridger Unit 2 - The liquidated damages related to the spring 2009 Bridger
Unit 2 Boiler Overhaul were a result of the contractor returing the unit to service
2.5 days late. The contractor needed the additional time to correct alignent
issues in the coutat slope area of the boiler. There was no Root Cause Analysis
done because the correction needed was visibly obvious and there were no other
underlying issues to be reviewed. The amount of the credit was $625,000
($250,000 per day based on the e;gree,pie:pt),: It was agreed with the contractor that
the credit adjustment would be inCluded asa reduction in the 2010 rates for the
scheduled Unit 1 overhauL. Please rdfer t~ Confidential Attachment Monsanto
9.5 -1 for a copy of the Change OrdeL and the 2010 Unit 1 Overhaul Pricing Sheet
which includes an adjustment for theliq~idated damages. The outage event data
from Confdential Attchment Monsanto 2.8 -2 is included in Confidential
Attachment Monsanto 9.5 -2. The liquidated damages were credited to FERC
Account 107, Constrction Work in Progress, and, therefore, not included in the
operating results of this filing.
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Hunter Unit 1 - Liquidated damagespf $20,067 were received from a contractor
in conjunction with the Hunter UIlt l 20'10, Qverhaul. The damages were received
due to late delivery of critical valves.' Nó'ltoot Cause Analysis was done. A
credit memo was received on invoice,number 90359189, dated 8/2/10, and the
amount was credited to FERC account 935. There was no additional outage time
for the delay. The additional overtime costs used to install the valves were offset
by the liquidated damages. Since the credit was received and recorded in 2010, it
is not included in the operating results of this filing.
Confdential information is provided .su~Ject to the terms and conditions of the
protective agreement in ths proceediilg." ' ,I
i
Recordholder:
Sponsor:
Chuck Moulton / Brian Dickman
Chad Teply / Brian Dickman
PAC-E-10-07/Rocky Mountain Power
August 26, 201 0
Monsanto Data Request 9.6
Monsanto Data Request 9.6
The Company experienced an exceedingly high number of fuel quality outages at
the Jim Bridger generation facilty during the four year period that thermal
generation was normalized in this case. Provide a detailed explanation of why the
outages incured, why there were so many compared to other plants in
PacifiCorp's system and justificationforwhy they should be included in rates,
Response to Monsanto Data Request 9.6
Unlike natural gas or diesel fuel, coal is not ahomogenized commodity. All coal
plants are affected by changes in coal quality and their ability to blend coals.
Coal quality can var dramatically from seam to seam or within a seam. Though
blending of coals, both the Bridger Mine and the Bridger Plant minimize quality
variations that undermine optimal plant performance. Although the mine does
attempt to deliver a consistent product, at times, it is limited by the size of the
stockpiles and physical logistics. Unsurrisingly, the development of Bridger
Coal's underground mine has resulted in increased varabilty in Bridger Coal's
coal quality. Bridger Coal's surface operation historically delivered a consistent
coal blend though mining of coal in multiple exposed pits. With the
development of the underground mine and the scaling back of the surface
operation, Bridger Coal has less capacity to blend coaL. The inherent quality
variabilty in the underground mine will likely pose futue blending challenges
during periods of high ash content, low heat content, etc.
In Uta, where all coal is produced ,by untterground mines, blending facilties at
Huntington and Hunter enable thè Còmpaíy to mix coals as necessar to provide
the power plants with a consistent coal quality. These facilities allow the
Company to effciently and economically segregate, stockpile and reclaim
underground coal based on a paricular coal quality. Without a similar facilty at
the Bridger Plant, both the Bridger Mine and the Bridger Plant are potentially
limited at times in their abilty to blend Bridger underground coal during periods
of high ash, low heat content, etc.
Over the years the Bridger plant has refined their operations to preemptively
restrct the unts based on ash and/or sodium content of the coaL. In 2007, Bridger
Coal's ash content increased as a rtslllt oftle underground mine's elevated ash
content. The plant experienced sa'me'los~eßdue to damage to the bottom ash. ,t ¡ i."
hoppers caused by falling slag. ', ¡ l
By proactively curling the unts durng periods of high ash and high sodium
whether caused by Bridger Coal or Black Butte, the plant has been able to
minimize operational losses compared to removing the unts from service to
repair bottom ash hoppers or two or thee days to de-slag. The decision to curail
loads has had the effect of decreas~~ as~: ~oading on the units as is shown in the
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I PAC-E-10-07/Rocky Mountain Power
August 26,2010
Monsanto Data Request 9.6
reductions in losses experienced in 2008 and 2009. An offsetting factor that has
positively impacted the slagging/fouling situation is the installation of Low-NOx
burers on the units. "..i í
Recordholder:
Sponsor:
Brian Durning
Cindy A. Crane
,P AC-E-1 0-07/Rocky Mountain Power
August 26, 2010
Monsanto Data Request 9.7
Monsanto Data Request 9.7
Please provide the root cause analyses for the fuel quality outages at Jim Bridger
during the above referenced period.
Response to Monsanto Data Request 9.7
There were no root cause analyses completed related to fuel quality outages at
Bridger during the referenced period.
Recordholder:
Sponsor:
Brad Holmes
Chad Teply
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