20150205PAC to Staff 2,16.pdf

ROCKY MOUNTAIN
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February 5,2015
Jean Jewell
Idaho Public Utilities Commission
472 W. Washington
Boise,ID 83702-5918
i ean..i ewell@puc. idaho. eov (C)
Neil Price
[e-mail]. eov (C)
RE: ID PAC-E-14-10
IPUC Data Request (l-16)
Please find enclosed Rocky Mountain Power's Responses to IPUC Data Requests 2 and 16.
Provided on the enclosed Confidential CD is Confidential Attachment IPUC 16. Confidential
information is provided subject to the terms and conditions of the protective agreement in this
proceeding.
If you have any questions, please feel free to call me at [phone].
Sincerely,
J'k*l tl,^*frru /t*,.
J. Ted Weston
Manager, Regulation
Enclosures
PAC-E- 1 4- I O/Rocky Mountain Power
February 5,2015
IPUC Data Request 2
IPUC Data Request 2
For each ofthe cost categories in the previous request (by plant), provide an
annual cost forecast over a20 year time horizon.
Response to IPUC Data Request 2
An all-in forecast of Net Power Costs for each year of the remaining lives of
Hunter and Huntington Plants is included in the workpapers in respone to IPUC 4.
Please note that the continuing costs related to the Deer Creek mine that will be
amortized to the Huntington and Hunter plants' fuel costs can be viewed, by
plant, in the work papers, specifically the tables entitled "Huntinglon - Base" and
"Hunter - Base" of the worksheet entitled ooFuel Cons Master" from folder "EW
Fin Model l2-15-l4ll1-5-14 Bowie Evaluation - Perfect Regulation/Bowie
Sale". Please refer to lines 116 to 118 for Huntington, and lines135 to 137 for
Hunter.
The costs include the principal cost categories of continuing union pension
expense, amortization of the regulatory asset, and Hunter and Huntington Coal
Supply Agreement (CSA) costs.
Recordholder: Brad Davis
Sponsor: Doug Stuver
PAC-E- 1 4- 1 0/Rocky Mountain Power
February 5,2015
IPUC Data Request 16
IPUC Data Request 16
Please provide a schedule of all current and potential capital investments
(including descriptions and dollar amounts) necessary for operating the Hunter
and Huntington Facilities through their remaining lives. Please include all
investment necessary to meet current and prospective environmental regulations.
Response to IPUC Data Request 16
While it is not possible to accurately predict all potential capital investments
necessary to meet prospective environmental regulations through the remaining
lives of the Hunter and Huntington facilities, the Company has developed the data
set provided in Confidential Attachment IPUC 16 as one of its 2015 Integrated
Resource Plan (IRP) core cases (Case C01-R) for portfolio assessment. Case C01-
R is a reference case that includes known and potential future environmental
compliance requirements, including potential installation of selective catalytic
reduction (SCR) equipment for RegionalHaze compliance on all Hunter and
Huntington units. Case C01-R also incorporates proxy environmental compliance
costs for Clean Water Act 316(b) compliance, Coal Combustion Residuals (CCR)
compliance, and Effluent Limitation Guidelines compliance. In addition, the
attachment includes projected run-rate capital. The proxy environmental
compliance cost assumptions incorporated into Case C01-R represent one of
several potential compliance outcomes considered by the Company and will be
updated in the future as the subject environmental compliance requirements
emerge. Data for capital projects beyond 2035 has not been projected.
Confidential information is provided subject to the terms and conditions of the
protective agreement in this proceeding.
Recordholder: Chad Teply
Sponsor: Doug Stuver