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HomeMy WebLinkAbout20170925Utah_OCS Set 5 (1-11)2.pdf1407 W.North Temple ROCKY MOUNTAIN Salt Lake City,UT 84116 POWER A DIVISION OF PACIFICORP September 6,2017 Gavin Mangelson Office of Consumer Services 160 East 300 South Salt Lake City,Utah 84111Mo_n@utaah.gov (C) RE:UT Docket No.17-035-39 OCS 5th Set Data Request (1-11) Please find enclosed Rocky MountainPower's Responses to OCS 5th Set Data Requests 5.4-5.7. Provided on the enclosed Confidential CD is Confidential Attachment OCS 5.4.Confidential information is provided subject to Public Service Commission of Utah (UPSC)Rules 746-1-602 and 603. If you have any questions,please call Tarie Hansen at (801)220-2053. Sincerely, Bob Lively Manager,Regulation Enclosures C.c.Erika Tedder/DPU dpudatarequest@utah.govetedder@utah.gov(C) Dan Kohler/DPU dkoehler@daymarkea.com(C) Dan Peac/DPU (C)(W) Aliea Afnan/DPUaafnan@dayma_rkea.co_m(W) Philip Hayet/OCS phavet@jkenn.com (C) Gary A.Dodge/UAE gdodge@hj.dla_w.co_m(C) Kevin Higgins/UAE (C) Neal Townsend/UAE nttownsend@energy_grat.co_m (C)(W) 17-035-39 /Rocky Mountain Power September 6,2017 OCS Data Request 5.4 OCS Data Request 5.4 Refer to the Company's estimates for wind generation. (a)Does the Company anticipate that existing wind facilities and re-powered wind facilities may degrade over time?Please explain and provide evidence showing that wind performance does/does not degrade over time. (b)Do the energy estimates provided account for potential degradationover time?Please explain. (c)Please provide all work papers used to determine the hourly energy patterns for existing and repowered projects pasted in the followingfiles /tabs: IRP Repower LGIA Limit vl3 WIC LJ.xlsm /Generation (LGIA Limited) IRP Repower LGIA Limit vl3 40-Yr LJ.xlsm /Generation (LGIA Limited) IRP Repower No Limit vl3 WIC LJ.xlsm /Generation(No LGIA Limited) Response to OCS Data Request 5.4 (a)Yes.The Company has identified that project generationdegradationoccurs at an increasing rate near a wind facility's end-of-life as the costs of making investments to maintain equipment availabilityis no longerjustified by the remaining asset life.The costs and generation impacts are represented in the data provided in each of the three work papers referenced in subpart (c)of this request. (b)Yes.Referencing the confidential work papers that accompanied the Direct Testimony of Company witness,Rick T.Link,specifically the folder "Other Summary Reports",the file "RePower Data 20170516 LGIA Limit vl3.xlsx",the tab "Dunlap",cells AK20 and AL20,degradation can be seen in the repoweredresource as it approaches end-of-life.Similar degradationcan be seen in cells AA37 and AB37 for the non-repoweredresource. (c)PacifiCorp makes the clarification that the data represented in the indicated work papers /worksheets is annual and not hourly.Hourly energy patterns are not developed or provided,as hourlywind energy is not an inputto the models.With this clarification,please refer to Confidential Attachment OCS 5.4,which provides the work papers used to develop the annual generationvalues for each wind project. Confidential information is provided subject to Public Service Commission of Utah (UPSC)Rule 746-1-602 and 746-1-603. 17-035-39 /Rocky Mountain Power September 6,2017 OCS Data Request 5.5 OCS Data Request 5.5 Please see "Repower Results Direct Testimony.xlsm"tab:"Price-Policy Annual -PaR" rows 16 and 20.Please explain what Energy Efficiency/DSM costs are included in PaR under the variable costs category (row 16)and what costs are included as fixed costs (row 20).Please provide work papers for each providing the derivation of each DSM cost. Response to OCS Data Request 5.5 Referencing the confidential work papers that accompanied the Direct Testimony of Company witness,Rick T.Link,specifically folder "Exhibits Figures Tables",file "Repower Results Direct Testimony": Row 16,"PaR Mean DSM":"PaR Mean DSM"is the sum of three cost components, of which "fuel"is the most relevant: (1)Fuel:The Planning and Risk (PaR)model reports the input "contract Price"for demand-side management (DSM)as fuel cost. (2)Start costs:There are no start costs modeled for energy efficiency/DSM. (3)Variable operations and maintenance (VOM):In the System Optimizer model (SO model),DSM costs are modified for a stochastic risk credit.PaR "inherits" this stochastic risk credit from the SO model.Because PaR is a stochastic model and inherentlyincludes the cost of stochastic risk,the SO stochastic risk credit is removed by modeling an offsetting value as VOM. "PaR Mean DSM"values are taken from "PaR Stochastic Summary"work papers provided with the confidential work papers supporting the Direct Testimony of Company witness,Rick T.Link,specifically folder "PaR Summary Reports".The three cost components described above are on tab "Cost Summary"(rows 102,206 and 310)of the "PaR Stochastic Summary"work papers.The tab "Cost Summary" summarizes data provided in tab "PaR StationData"of the same work paper. Please refer to Attachment OCS 1.5 -1 for the energy efficiency/DSMinputs, specifically the folder "Inputs -PUBLIC\DSM\Class 2",the file "IRP2017 DSM2 potential-20161021 with adjustments". Row 20,"SO Sub-Total Fixed Costs": "SO Sub-Total Fixed Costs"values are taken from "SO Portfolio"work papers provided with Mr.Link's confidential work papers in folder "SO Model Summary Reports".PacifiCorp models all energy efficiency/DSMcost as VOM and or fuel costs and therefore no costs related to energy efficiency/DSMare included in this line. 17-035-39 /Rocky Mountain Power September 6,2017 OCS Data Request 5.6 OCS Data Request 5.6 Please explain why the Long-Term Contracts change between the "baseline"and "with wind repowering"cases (see "Repower Results Direct Testimony.xlsm"tab:"Price- Policy Annual -PaR"lines 10 and 36 (specifically cells X10 and X36).Are these contracts priced relative to wholesale market costs?Please explain. Response to OCS Data Request 5.6 The differences in long-term contracts values between the two cases are due to the inclusion of renewables in the long-term contracts category reportedby the Planning and Risk (PaR)model.The combination of selected resources changes between the "baseline" and "with wind repowering"cases based on a least-cost/least-riskportfolio optimization, resulting in a difference in the "PaR Mean LT Contracts"rows. The long-term contracts"category of data includes portfolio elements such as interruptible loads and exchanges that can change relative to market price curves. However,the two cases being compared are using the same price curve assumptions (medium gas,medium carbon dioxide (CO2)),and there are no changes to non-renewable long-term contract portfolio elements. Details of long-term contract elements are provided with the confidential work papers supporting the Direct Testimony of Company witness,Rick T.Link,specifically the folder "PaR Summary Reports",the files "PaR Stochastic Summary",tab "PaR StationData". 17-035-39 /Rocky Mountain Power September 6,2017 OCS Data Request 5.7 OCS Data Request 5.7 Please explain why the Long-Term Contracts change between "baseline"in the Mod Gas, Mod CO2 scenario and the High Gas,0 CO2 scenarios (see "Repower Results Direct Testimony.xlsm"tab:"Price-Policy Annual -PaR"lines 10 and 505 (specifically cells X10 and X505).Are these contracts priced relative to wholesale market costs?Please explain. Response to OCS Data Request 5.7 Please refer to the Company's response to OCS Data Request 5.6.