20170925Utah_DPU Set 10 (1-5).pdf

1407 W.NorthTemple
ROCKY MOUNTAIN Salt Lake City,UT 84116
POWER
A DIVISION OFPACIFICORP
September 18,2017
Erika Tedder
Division of Public Utilities
160 E 300 S,4th Floor
Salt Lake City,UT 84114
[e-mail]
etedder@u_ttaalah gov (C)
RE:UT Docket No.17-035-39
DPU 10th Set Data Request (1-5)
Please find enclosed Rocky Mountain Power's Responses to DPU 1016 Set Data Requests 10.1-
10.5.
If you have any questions,please call Tarie Hansen at [phone].
Sincerely,
Bob Lively
Manager,Regulation
Enclosures
C.c.:Dan Kohler/DPU [e-mail](C)
Dan Peac/DPU dpeaco daymarkea.com (C)(W)
Aliea Afnan/DPU (W)
[e-mail] (W)
Béla Vastag/OCS bvasjag@ut_ah_gov(C)
Philip Hayet/OCS phayet@jlgennnso_m(C)
Gary A.Dodge/UAE gdo_dge@hj_dlaw.co_m(C)
Kevin Higgins/UAE (C)
Neal Townsend/UAE ntownsend energystrat.com (C)(W)
Sophie Hays/UCE (C)
Kate Bowman/UCE [e-mail](C)(W)
Emma Rieves/UCE [e-mail](C)(W)
17-035-39 /Rocky Mountain Power
September 18,2017
DPU Data Request 10.1
DPU Data Request 10.1
Link Direct Testimony.In reference to Table 2 and Table 3 of the Link Direct
Testimony,please provide versions of these benefits tables on a project-by-project basis
for each Repowering Project.Provide all supporting work papers used to calculate the
net benefits of each project under the various scenarios.
Response to DPU Data Request 10.1
PacifiCorp has not performed the requested analysis.As described in the Direct
Testimony of Company witness,Rick T.Link,line 303 through 334,PacifiCorp first
started with the wind repowering scope assumed in the 2017 Integrated Resource Plan
(IRP)preferred portfolio that included 905 megawatts (MW)of existing wind resource
capacity.PacifiCorp then analyzed the present value revenue requirement (PVRR)impact
with and without Leaning Juniper.Because repowering of the Leaning Juniper facility,
which has the lowest expected annual capacity factor relative to other wind facilities in
PacifiCorp's fleet,provides incremental net benefits,all remaining wind facilities within
the project scope would generate more PTCs and provide even larger incremental net
benefits if repowered.Consequently,PacifiCorp did not analyze any further reductions to
the wind repowering scope beyond its analysis of Leaning Juniper.
17-035-39 /Rocky Mountain Power
September 18,2017
DPU Data Request 10.2
DPU Data Request 10.2
Link Direct Testimony.In reference to Exhibit RTL-1,please provide all analysis and
documentation supporting the forecast of incremental energy production on a project-by-
project basis.
Response to DPU Data Request 10.2
Please refer to the Company's response to DPU Data Request 1.5,specifically
Confidential Attachment DPU 1.5,which provides an analysis of energy production
prepared by the Company's consultant Black &Veatch (B&V).Please also refer to the
Company's response to OCS Data Request 5.4,subpart (c),specifically Confidential
Attachment OCS 5.4,which provides the work papers used to develop the incremental
energy production for each wind project.
17-035-39 /Rocky Mountain Power
September 18,2017
DPU Data Request 10.3
DPU Data Request 10.3
Link Direct Testimony Work Papers.Regarding the project revenue requirements
included in the "Repower Results Direct Testimony.xlsm"work paper:
10.3.1 Please provide a detailed accounting of revenue requirements on a project by
project basis.
10.3.2 Please provide a reconciliation of the annual revenue requirements for the
repowering projects (see,e.g.row 89 of the "Price-Policy Annual-PaR"sheet)
with the 20 year levelized values (see,e.g.row 62 of the "Price-Policy Annual -
PaR"sheet.This reconciliation should demonstrate how these representations of
project costs tie to the same set of project-by-project cost inputs.Please also
provide a reconciliation of these values to the project-specific capital cost values
included in Exhibit RTL-1.
Response to DPU Data Request 10.3
(1)Detailed revenue requirements for all repower resources are provided in the
confidential work papers supporting the Direct Testimony of Company witness,Rick
T.Link,specifically the folder "Wind Projects\Linked Repower".Detailed revenue
requirement calculations (formulas intact)are included on the "Generic"tab in rows
1726 through 1755.
(2)Referencing the confidential work paper supporting Mr.Link's Direct Testimony,
specifically the folder "Exhibits Figures Tables",the confidential file "Repower
Results Direct Testimony",the "Cost of Project"in row 62 of the "Price-Policy
Annual -PaR"tab includes capital recovery (property taxes,depreciation,rate of
return and income taxes),O&M and production tax credit on a real levelized basis
over the life of the wind plant plus wind tax on an annual basis.
Row 89 of the "Price-Policy Annual -PaR"sheet)is the annual revenue requirement
for capital recovery only.Row 93 of the "Price-Policy Annual -PaR"sheet)is the
annual revenue requirement includingcapital recovery,O&M,production tax credit
and Wind Tax.
The capital recovery component of the revenue requirement on rows 62 and 89 of the
"Price-Policy Annual -PaR"sheet are based on the project-specific capital cost
values included in Exhibit RTL-1.Please refer to the folder "Wind Projects\Linked
Repower".Detailed capital costs are included on the "Generic"tab in rows 138
through 238.
At a high level,these three data points therefore have the followingrelationship:
17-035-39 /Rocky Mountain Power
September 18,2017
DPU Data Request 10.3
Repower CapitalInvestment
...is used to calculate >
Capital Recovery
...which is a component of >
Cost ofProject
Formulas provided in rows 62 and 89 can be traced to their respective confidential
work papers,which include:
Individual repower resource confidential work papers:
Folder:"Wind Projects\Linked Repower"
Repower resource summary confidential work paper:
Folder:"Other Summary Reports",file "RePower Data 20170516 LGIA Limit vl3"
17-035-39/Rocky Mountain Power
September 18,2017
DPU Data Request 10.4
DPU Data Request 10.4
Link Direct Testimony Work Papers.Regarding the Forward Price Curve Values
provided in the Wind Project work papers (e.g."IRP Repower LGIA Limit vl3 WIC
LJ.xlsm"):
10.4.1 Please provide the source of the FPC values provided in this work paper (Rows
127:131 of the 'Existing','ExistRepwr',and 'Repower'sheets).
10.4.2 Please explain all FPC discrepancies between the worksheets.For example,the
Wyoming FPC values in the 'Repower'sheet are significantlylower than the
values in the 'Existing'sheet.
Response to DPU Data Request 10.4
Referencingthe exampled file "IRP Repower LGIA Limit vl3 WIC LJ"provided with
the confidential work papers supporting the Direct Testimony of Company witness,Rick
T.Link,the Company responds as follows:
(1)The value of generationresulting from repowering is calculated in the Integrated
Resource Plan (IRP)model.Therefore,the forward price curve (FPC)data on the tab
"Existing",tab "ExistRepwr",and tab "Repower"of the file "IRP Repower LGIA
Limit vl3 WIC LJ.xlsm"are not used and are not current.
(2)Please refer to the Company's response to subpart (1)above.
17-035-39 /Rocky Mountain Power
September 18,2017
DPU Data Request 10.5
DPU Data Request 10.5
Link Direct Testimony Work Papers.Regarding the Generation (MWHs)values provided
in the Wind Project work papers (e.g."IRP Repower LGIA Limit vl3 WIC LJ.xlsm"):
10.5.1 Please provide the source of the generationvalues provided in this work paper
(Rows 9:21 of the 'Existing','ExistRepwr',and 'Repower'sheets).
10.5.2 Please reconcile these values with the generationvalues provided in Exhibit RTL-
1 and explain all discrepancies.
10.5.3 Please explain why some projects show a decrease in annual generationafter
repowering (see,e.g.Glenrock III).
Response to DPU Data Request 10.5
(1)Please refer to the Company's response to OCS Data Request 5.4,subpart (c)and
specifically Confidential Attachment OCS 5.4,which provides the confidential work
papers used to develop the generationvalues for each wind project.
The generation values were copied onto the tab "Generation (LGIA Limited)"of the
confidential file "IRP Repower LGIA Limit vl3 WIC LJ.xlsm".
The source for the generation values on rows 9:21 of the tab "Existing"is rows 22:36
on the tab "Generation (LGIALimited)".
The source for the generation values on rows 9:21 of the tab "ExistRepwr"and tab
"Repower"is rows 5:19 on the tab "Generation (LGIALimited)".The tab
"ExistRepwr"shows generationfrom existing wind turbine generators (WTG)
pending retirement plus continued generationfrom WTGs at Glenrock I,Glenrock III
and RollingHills that will not be retired.The production tax credits (PTC)associated
with this generationexpires between 2018 and 2020;that is,10 years after these
WTGs were originally installed.
The tab "Repower"shows generation from repowered WTG.This generation is
eligible for PTCs for 10 years from the date repowered.
(2)The generationvalues on of the tab "Existing"in rows 22:36 are the same values
provided in the Direct Testimony of Company witness,Rick T.Link,specifically
Confidential Exhibit RMP-(RTL-1)rows 8:21.The sum of the generation values on
the tab "ExistRepwr"and tab "Repower"in rows 8:21 are the same values provided
in Confidential Exhibit RMP_(RTL-1)rows 25:38.
(3)The tab "ExistRepwr"shows generation from existing WTGs pending retirement plus
continued generation from WTGs at Glenrock I,Glenrock III and RollingHills that
17-035-39 /Rocky Mountain Power
Septernber 18,2017
DPU Data Request 10.5
will not be retired.32 WTGs will not be repoweredincludingeight at Glenrock I,six
at Glenrock III and 18 at RollingHills.All WTGs at the remaining wind plants will
be repowered.The sum of the generationvalues on the tab "ExistRepwr"and
"Repower"shows increased generationafter repowering.