20120601PAC to Staff 1-6.pdf

201 South Main, Suite 2300
Salt Lake City, Utah 84111 ROCKY MOUNTAIN RECEIvEr POWER
A OMSON OF PACIFIcORP
2i2 MAY 3I PM 4:48
May 31, 2012
fl, c mu UTILiTIES OOMIss
VIA EMAIL
AND OVERNIGHT DELIVERY
Kristine A. Sasser
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702-5918
Kris.Sassertuc.idaho.gov
RE: ID PAC-E-12-08
IPUC Production Data Request (1-6)
Please find enclosed Rocky Mountain Power's responses to IPUC Data Requests 1-6. Provided
on the Non-Confidential CD are Attachments IPUC 3, 4, 5-1, 5-2 and 6. Provided on the
enclosed Confidential CD is Attachment IPUC 2.
If you have any questions, please feel free to call me at [phone].
Sincerely,
J. Ted Weston
Manager, Regulation
Enclosure
C.c.: Jean Jewell/IPUC (3 copies of CDs) Jean.fewe1lpuc.idaho.gov
Terri CarlockJIPUC [e-mail] (W)
PAC-E-12-08/Rocky Mountain Power
May 31, 2012
IPUC Production Data Request 1
IPUC Production Data Request 1
Please provide the economic analysis including cost/benefit analysis associated
with retrofitting the Carbon plant with emissions control equipment. Please
include all workpapers with formulas included and operational.
Response to IPUC Production Data Request 1
The Company does not currently have plans to retrofit the Carbon plant with
emissions control equipment. Potentially responsive environmental retrofit
feasibility assessments and economic reviews to date have been completed in
anticipation of litigation and are attorney-client privileged and/or attorney-client
work product. The Company will continue to assess current environmental
compliance requirements and if viable compliance solutions are identified, will
re-assess the associated environmental retrofit economics. The Company does
not currently anticipate identifying a viable environmental retrofit compliance
solution for the Carbon plant.
PAC-E-12-O8IRocky Mountain Power
May 31, 2012
IPUC Production Data Request 2
IPUC Production Data Request 2
Please provide the economic analysis including cost/benefit analysis associated
with the conversion to natural gas for the Carbon plant. Please include all
workpapers with formulas included and operational.
Response to IPUC Production Data Request 2
The Company does not currently have plans to convert the Carbon plant to natural
gas. However, please refer to Confidential Attachment IPUC 2 for previous
cost/benefit analysis completed in this regard. The attached analysis was
completed in 2010, and assumed a 2012 conversion and a life-of-plant through
2030. The analysis assumes a highly beneficial impact from deferment of
demolition costs with extension of plant life through 2030 reducing the capital
requirement for the natural gas conversion. The analysis also does not
contemplate the viability of converting the units to natural gas with respect to
current environmental compliance requirements that could require further
installation of emissions reduction systems to comply as a natural gas fired plant.
The Company will continue to assess current environmental compliance
requirements and if viable compliance solutions are identified, will re-assess
natural gas conversion economics. The Company does not currently anticipate
identifying a viable environmental compliance solution associated with natural
gas conversion.
PAC-E-12-08/Rocky Mountain Power
May 31, 2012
IPUC Production Data Request 3
IPUC Production Data Request 3
Please provide emissions records by year for the Carbon plant for 2008 to date.
Response to IPUC Production Data Request 3
The emissions inventories provided to the State of Utah for the years 2008
through 2011 are included in Attachment IPUC 3.
PAC-E-12-08/Rocky Mountain Power
May 31, 2012
IPUC Production Data Request 4
IPUC Production Data Request 4
Please provide schedules showing book value by year, including at a minimum:
initial cost, additions, retirements and accumulated depreciation for the Carbon
plant from initial construction to date.
Response to IPUC Production Data Request 4
Please refer to Attachment IPUC 4 for the Carbon plant details.
PAC-E-12-08/Rocky Mountain Power
May 31, 2012
IPUC Production Data Request 5
IPUC Production Data Request 5
Please provide schedules with supporting documentation showing the detail of the
estimates to decommission the facility and remediate the site.
Response to IPUC Production Data Request 5
As a result of various state orders approving the Company's 2002 depreciation
study, PacifiCorp was required to select a third-party consultant to investigate and
evaluate steam production demolition costs. After consultation with
representatives from the Utah, Oregon, and Idaho commissions, Black & Veatch
was selected to complete a terminal net salvage study of Carbon Units 1 & 2 and
certain other plants. The resulting demolition cost per kW for the Carbon Plant in
2004 dollars was:
Carbon plant: $28,289,120 /172,000 kW capacity = $164 per kW
This amount included only about $2.8 million relating to asbestos removal and
did not include all expected costs for landfill closure, coal pile closure, and
balance of plant site remediation.
The Black & Veatch study is included as Attachment IPUC 5 -1.
Please refer to Attachment IPUC 5 -2 for the calculation of the current estimate of
$56,800,869 (escalated). This is a high level calculation based on the 2004 Black
& Veatch study, with additional adjustments for escalation, landfill closure, coal
pile closure, and balance of plant site remediation preliminary estimates.
PAC-E-12-08/Rocky Mountain Power
May 31, 2012
IPUC Production Data Request 6
IPUC Production Data Request 6
Please provide topographic maps and airflow maps of the Carbon plant site.
Response to IPUC Production Data Request 6
The topographic map is provided as Attachment IPUC 6. PacifiCorp does not
have airflow maps of the Carbon plant site.