20170925Utah_DPU Set 7 (1-35)2.pdf

1407 W.North Temple
ROCKY MOUNTAIN Salt Lake City,UT 84116
POWER
A DIVISfDN OF PACIFICORP
September 5,2017
Erika Tedder
Division of Public Utilities
160 E 300 S,4th Floor
Salt Lake City,UT 84114
[e-mail](C)
RE:UT Docket No.17-035-39
DPU 7th Set Data Request (1-35)
Please find enclosed Rocky MountainPower's Responses to DPU 7th Set Data Requests 7.1,
7.25-7.27,and 7.33.Also provided are Attachments DPU 7.25,7.26,7.27,and 7.33.
Confidential Response Documents are provided on yellowpaper.Confidential information is
provided subject to Public Service Commission of Utah (UPSC)Rules 746-1-602 and 746-1-
603.
If you have any questions,please call Tarie Hansen at [phone].
Sincerely,
Bob Lively
Manager,Regulation
Enclosures
C.c.:Dan Kohler/DPU (C)
Dan Peac/DPU (C)(W)
Aliea Afnan/DPUaafnan daymarkea.com (W)
Béla Vastag/OCS [e-mail](C)
Philip Hayet/OCS [e-mail]_m (C)
Gary A.Dodge/UAE gdoclge@hj_dJlaw.co_m (C)
Kevin Higgins/UAE (C)
Neal Townsend/UAE [e-mail](C)(W)
17-035-39 /Rocky Mountain Power
September 5,2017
DPU Data Request 7.1
DPU Data Request 7.1
Link Testimony.In reference to Mr.Link's Testimony,lines 326-328:Please provide a
reference to specific work papers where the $20 million value is calculated.If this value
is not calculated in work papers already provided,please provide all analysis supporting
this value.
Response to DPU Data Request 7.1
The value is based on the difference in cost between the followingstudies:
Leaning Juniper:Please refer to the confidential work papers supporting the Direct
Testimony of Company witness,Rick T.Link;specifically the folder entitled "SO Model
Summary Reports",the file entitled "SO Portfolio DEV-MM-RPE-LJ 1705161849".
GoodnoeHills:Please refer to the confidential work papers supporting Mr.Link's Direct
Testimony;specifically the folder entitled "SO Model Summary Reports",the file
entitled "SO Portfolio EGCC-RPE-EGN-MM 1705161851".
Please refer to the "PVRR Table"worksheets in each workbook referenced above,cell
X54.The incremental benefit of GoodnoeHills (present value of revenue requirements
differential (PVRR(d)))based on these work papers is $18 million and incorrectlystated
as $20 million in Mr.Link's Direct Testimony.
17-035-39 /Rocky Mountain Power
September 5,2017
Confidential DPU Data Request 7.25
DPU Data Request 7.25
CONFIDENTIAL REQUEST-Link Testimony Workpapers:Repower Results Direct
Testimony.xlsx.
Response to DPU Data Request 7.25
Please refer to the followingdescription of each element:
PaR Mean Fuel:These lines includes the projected system fuel cost,including start-
up costs,for all existing and new resources.The projection of system fuel cost
represents the stochastic mean as reported from the Planning and Risk (PaR)model.
The projected system fuel costs are available for the baseline simulation without wind
repowering (row 8)and in the simulation with wind repowering (row 34).Changes in
least-cost dispatch and changes in the resource portfolio between the two simulations
drives the change in projected system fuel costs.
PaR Mean FOT:These lines include the projected variable cost of front office
transactions (FOT).FOTs are included in each resource portfolio and are a
component of the least-cost mix of resources needed to maintain a 13 percent
planning reserve margin (PRM).The projection of FOT costs represents the
stochastic mean as reported from PaR.The projected FOT costs are available for the
baseline simulation without wind repowering (row 9)and in the simulation with wind
repowering (row 35).The FOT costs vary between the two simulations because the
least-cost resource portfolio,which includes FOTs,varies between the two
simulations.
PaR Mean LT Contracts:These lines include the projected fixed and variable costs
from long-term contracts.This includes existing purchase,sales,and exchange
contracts,includingpurchases from qualifyingfacilities (QF).The projection of fixed
and variable costs from long-term contracts represents the stochastic mean as reported
from PaR.The projected fixed and variable costs from long-term contracts are
available for the baseline simulation without wind repowering (row 10)and in the
simulation with wind repowering (row 36).Changes in least-cost dispatch between
the two simulations drives the change in projected fixed and variable costs from long-
term contracts.
17-035-39 /Rocky Mountain Power
September 5,2017
Confidential DPU Data Request 7.25
PaR Mean System Balancing:These lines include the projected net cost or benefit
of off-system purchases (cost)and sales (benefit).The projected net cost or benefit of
off-system purchases and sales represents the stochastic mean as reported from PaR.
The projected net cost or benefit off-system purchases and sales are available from
the baseline simulation without wind repowering (row 11)and in the simulation with
wind repowering (row 36).Changes in least-cost dispatch and changes in the resource
portfolio between the two simulations drives the change in the projected net cost or
benefit of off-system purchases and sales.
PaR Sub-Total Mean NPC:This is the sum of the data in the PaR Mean Fuel,PaR
Mean FOT,PaR Mean LT Contracts,and PaR Mean System Balancing lines.It
reflects the stochastic mean forecast of net power costs (NPC)as reported from PaR.
The projected NPC is available from the baseline simulation without wind
repowering (row 12)and in the simulation with wind repowering (row 38).Changes
in least-cost dispatch and changes to the resource portfolio between the two
simulations drives the change in the projected NPC.
PaR Mean Emissions:These lines include the projected system emissions costs tied
to the carbon dioxide (CO2)priCC RSsumptions for any given price-policy scenario.It
reflects the stochastic mean forecast of emissions costs as reported from PaR.The
projected emissions cost is available from the baseline simulation without wind
repowering (row 14)and in the simulation with wind repowering (row 40).Changes
in least-cost dispatch and changes in the resource portfolio between the two
simulations drives the change in projected emissions costs.
PaR Mean VOM:These lines include the projected variable operations and
maintenance (VOM)costs for both new and existing generating facilities and the
bid/ask premium applied to FOTs.This line item reflects the stochastic mean forecast
of VOM and bid/ask-FOT premiums as reported from PaR.Costs reported in this line
item are available from the baseline simulation without wind repowering (row 15)
and in the simulation with wind repowering (row 41).Changes in least-cost dispatch
and changes in the resource portfolio between the two simulations drive the change in
VOM and bid/ask-FOT premiums.
PaR Mean DSM:These lines include the projected system variable cost associated
with new demand-side-management (DSM)resources.This line item reflects the
stochastic mean forecast of variable DSM costs as reported from PaR.Costs reported
in this line item are available from the baseline simulation without wind repowering
(row 16)and in the simulation with wind repowering (row 42).Changes in least-cost
dispatch and changes in the resource portfolio between the two simulations drive the
change in variable DSM costs.
PaR Mean Deficiency:These lines include the cost of energy not served (ENS)and
reserve deficiencies which can arise with the stochastic simulation performed using
17-035-39 /Rocky Mountain Power
September 5,2017
Confidential DPU Data Request 7.25
PaR.This line reflects the stochastic mean cost of ENS and reserve deficiencies as
reported by PaR.These costs are available from the baseline simulation without wind
repowering (row 17)and in the simulation with wind repowering (row 43).Changes
in least-cost dispatch and changes in the resource portfolio between the two
simulations drive the change in ENS and reserve deficiencies.
PaR Sub-Total Mean Other Variable:This is the sum of the data in the PaR Mean
Emissions,PaR Mean VOM,PaR Mean DSM,and PaR Mean Deficiency lines.It
reflects the stochastic mean forecast of non-NPC system variable costs as reported
from PaR.These costs are available from the baseline simulation without wind
repowering (row 18)and in the simulation with wind repowering (row 44).Changes
in least-cost dispatch and changes to the resource portfolio between the two
simulations drive the change in non-NPC system variable costs.
SO Sub-Total Fixed Costs:These lines include all fixed costs that are not affected
by economic dispatch of system resources from the System Optimizer model (SO
model).This includes any up-front capital costs for new resources,fixed run-rate
operating costs for new and existing resources,any applicable decommissioning
costs.These costs are available from the baseline simulation without wind repowering
(row 20)and in the simulation with wind repowering (row 46).Changes in the
resource portfolio between the two simulations drive the change in total system fixed
costs.
Total Mean System Costs:This is the sum of the data in the PaR Sub-Total Mean
NPC,PaR Sub-Total Mean Other Variable,and PaR Sub-Total Fixed Costs lines.In
aggregate,this line reflects the stochastic mean of total system costs as reported by
PaR and the SO model.These costs are available from the baseline simulation
without wind repowering (row 22)and in the simulation with wind repowering (row
48).Changes in least-cost dispatch and changes in the resource portfolio between the
two simulations drive the change in system costs.
PaR Total Variable Cost from Annual:These lines sum total system variable costs
from the line item detail reported above.Changes in least-cost dispatch and changes
in the resource portfolio between the two simulations (with and without wind
repowering)drive the change in total system variable costs calculated from the line
item detail reported in the file.
PaR Total Variable from Summary:These lines report the total system variable
cost from the summary data reported from each PaR simulation (with and without
wind repowering).Changes in least-cost dispatch and changes in the resource
portfolio between the two simulations (with and without wind repowering)drive the
change in total system variable costs calculated from the line item detail reported in
the file.
17-035-39 /Rocky Mountain Power
September 5,2017
Confidential DPU Data Request 7.25
Delta (Row 27 and Row 55):This row subtracts the PaR Total Variable from
Summary value from the PaR Total Variable Cost from Annual value.The purpose
of this calculation is to validate that the total system variable cost calculated from the
various line items matches the aggregate total system variable cost reported from
PaR.
Total System from Summary:These lines report the total system cost from the
summary data reported from each PaR simulation,includingfixed system costs (with
and without repowering).Changes in least-cost dispatch and changes in the resource
portfolio between the two simulations (with and without wind repowering)drive the
change in total system costs.
Delta (Row 30 and Row 58):This row subtracts the Total System from Summary
value from the total system costs calculated from the line item data above.The
purpose of this calculation is to validate that the total system cost calculated from the
various line items matches the aggregate total system cost reported from PaR.
Net RepowerCost in Model:This row of data reflects the full cost associated with
the wind repowering project as included in the SO model and the PaR model.
Net Change in Repower GWh:This row of data reflects the incremental energy
(gigawatt-hours (GWh)associated with the wind repowering project over time.
For all other lines,please refer to Attachment DPU 7.25.
17-035-39 /Rocky Mountain Power
September 5,2017
Confidential DPU Data Request 7.26
DPU Data Request 7.26
CONFIDENTIAL REQUEST-Link Testimony Workpapers:Repower Results Direct
Testimony.xlsx.
Response to DPU Data Request 7.26
(a)Please refer to Attachment DPU 7.26.
(b)The reference to "PaR"on the worksheet should have referred to "SO"and was
mislabeled.
17-035-39 /Rocky Mountain Power
September 5,2017
Confidential DPU Data Request 7.27
DPU Data Request 7.27
CONFIDENTIAL REQUEST-Link Testimony Workpapers:RePower2017051
LGIALimit vl3.xlsx.
Response to DPU Data Request 7.27
Please refer to Attachment DPU 7.27.
17-035-39 /Rocky Mountain Power
September 5,2017
Confidential DPU Data Request 7.33
DPU Data Request 7.33
CONFIDENTIAL REQUEST-Link Testimony Workpapers:SO Model Summary
Reports.
Response to DPU Data Request 7.33
(a)Please refer to the Company's response to DPU Data Request 7.32 subpart (a);
specifically Attachment DPU 7.32.
(b)Please refer to Attachment DPU 7.33.Variation between cases with and without wind
repowering are due to changes in least cost economic dispatch (variable and fixed
costs)and changes in the resource portfolio (fixed costs).
(c)Please refer to the Company's response to subpart (b)above.
17-035-39 /Rocky Mountain Power
September 5,2017
Confidential DPU Data Request 7.33
(d)The present value of revenue requirement (PVRR)data worksheet is an output report
created by the System Optimizer model (SO model)in the "csv"(comma separate
values)format.As such there are no electronic spreadsheet.For the study referenced in
the above stated request ("SO Portfolio EGCC-RPE-EGN-LH 1705161902"),the file
"PVRR-EGCC-RPE-EGN-LH0000.csv".Please refer to the confidential work papers
supporting the Direct Testimony of Company witness,Rick T.Link;specifically the
followingfolder /file path:
SO Model Inputs-Outputs.zip\SO Model Inputs-Outputs\Price-emissions
scenarios\Repower\EGCC-RPE-EGN-LH