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Home My WebLink About20170925Utah_OCS Set 7 (1-9).pdf1407 W.North Temple ROCKY MOUNTAIN Salt Lake City,UT 84116 POWER A DIVISION OF PACIFICORP September 7,2017 Gavin Mangelson Office of Consumer Services 160 East 300 South Salt Lake City,Utah 84111 n (C) RE:UT Docket No.17-035-39 OCS 7th Set Data Request (1-9) Please find enclosed Rocky Mountain Power's Responses to OCS 7th Set Data Requests 7.1-7.9. Provided on yellow paper are Confidential Responses OCS 7.6,7.7,7.8,and 7.9.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. Bob Lively Manager,Regulation Enclosures C.c.Erika Tedder/DPU dpudatarequest@utah.gov_e_ttedder@utahgov(C) Dan Kohler/DPU dkoehler@daymarkea.com(C) Dan Peac/DPU (C)(W) Aliea Afnan/DPU aafnan daymarkea.com (W) Philip Hayet/OCS phayet@ilsennsom (C) Gary A.Dodge/UAE gdodge@hjdlaw.com_(C) Kevin Higgins/UAE M (C) Neal Townsend/UAE (C)(W) 17-035-39 /Rocky Mountain Power September 7,2017 OCS Data Request 7.1 OCS Data Request 7.1 Refer to the Direct Testimony of Rick Link,Table 2.Please provide a revised version of this table and supply all work papers electronicallyused to develop the results,based on replacing the 35%federal income tax rate assumed in the calculations with a federal income tax rate of: (a)15%; (b)20%;and (c)25%. Response to OCS Data Request 7.1 PacifiCorp has not performed the requested analysis. 17-035-39 /Rocky Mountain Power September 7,2017 OCS Data Request 7.2 OCS Data Request 7.2 Refer to the Direct Testimony of Rick Link,Table 3.Please provide a revised version of this table and supply all work papers electronically used to develop the results,based on replacing the 35%federal income tax rate assumed in the calculations with a federal income tax rate of: (a)15%; (b)20%;and (c)25%. Response to OCS Data Request 7.2 PacifiCorp has not performed the requested analysis. 17-035-39 /Rocky Mountain Power September 7,2017 OCS Data Request 7.3 OCS Data Request 7.3 Refer to the Direct Testimony of Rick Link,Table 4.Please provide a revised version of this table and supply all work papers electronically used to develop the results,based on replacing the 35%federal income tax rate assumed in the calculations with a federal income tax rate of: (a)15%; (b)20%;and (c)25%. Response to OCS Data Request 7.3 PacifiCorp has not performed the requested analysis. 17-035-39 /Rocky Mountain Power September 7,2017 OCS Data Request 7.4 OCS Data Request 7.4 Refer to the Direct Testimony of Rick Link,Table 5.Please provide the sensitivity results of doing both the repowering and new wind/transmission projects for each of the 9 price-policy case scenarios.Please provide these results for SO Model,PaR Stochastic- Mean,PaR Risk-Adjusted,and the analysis with impacts quantified through2050 (consistent with Link Table 3). Response to OCS Data Request 7.4 PacifiCorp has not performed the requested analysis. 17-035-39 /Rocky Mountain Power September 7,2017 OCS Data Request 7.5 OCS Data Request 7.5 For the results produced in the question immediately above,please provide a revised version of these results and supply all work papers electronically used to develop the results,based on replacing the 35%federal income tax rate assumed in the calculations with a federal income tax rate of: (a)15%; (b)20%;and (c)25%. Response to OCS Data Request 7.5 PacifiCorp has not performed the requested analysis. 17-035-39 /Rocky Mountain Power September 7,2017 OCS Data Request 7.6 OCS Data Request 7.6 Explain why the Company expects that it will achieve such a significant percentage increase in generationat the Washington and Oregon Repower projects,compared to the Wyoming projects (more than double the percentage increase expected at the Wyoming projects). Confidential Response to OCS Data Request 7.6 There are several reasons that the Washington and Oregon projects will have higher percentage increases in generationthan the Wyomingprojects with repowering.Most importantly,the Washington and Oregon erojects will be retrofitted with larger rotors that result in a greater increase (between percent to percent)in the rotor swept area of the wind turbines as compared to the Wyoming projects ( percent).Second,average wind speeds at the Washington and Oregon projects are lower than at the projects in Wyoming.This results in lower capacity factors for the Washington and Oregon projects as compared to the Wyoming projects,as shown in Table 1 of Confidential Exhibit RMP (TJH-3)accompanying the Direct Testimony of Company witness,Timothy J.Hemstreet.Because of the lower wind speeds in Washington and Oregon,those projects operate at full nameplate capacity a lower percentage of the time as compared to the projects in Wyoming.Thus,when operated within their existing transmission rights (with no increase in the projects' transmission capacities),the Washington and Oregon projects generally have a greater ability to increase their energy output without being limited b their transmission rights. Finall ,the Washin ton and Ore on pr °ects enerall whichresults in a larger percentage increase in energy output as compared to the Wyoming projects. 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 7,2017 OCS Data Request 7.7 OCS Data Request 7.7 CONFIDENTIAL REQUEST-Explain why Exhibit TJH-3,Page 2 of 2 shows a projected generation increase for Leaning Juniper of about %,but in the Company's internal decision making process,discussed in a document supplied in response to DPU l.4, APR20005145_Proj_Proposal_REDACTED CONF.pdf,at page 5,it indicates the ercent increase is ex ected to be much lower, %. Confidential Response to OCS Data Request 7.7 The chanze in the projected generationincrease for the Leaning Juniper project is due to 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 7,2017 OCS Data Request 7.8 OCS Data Request 7.8 CONFIDENTIAL REQUEST-The file in the Question above at page 7,states that Wyoming Please state if and how PacifiCorp will allocate the impact of that decision entirelyto Wyoming thereby ensuring that benefits promised to Utah will remain. Response to OCS Data Request 7.8 The Company will allocate Repowering costs and benefits to its various jurisdictions under the state allocation methodologies approvedby each state.For Utah,the Company will allocate costs and benefits utilizingthe 2017 Protocol while it is in effect and any approved allocation methodology subsequent to the 2017 Protocol. 17-035-39 /Rocky Mountain Power September 7,2017 OCS Data Request 7.9 OCS Data Request 7.9 CONFIDENTIAL REQUEST-At page 9 of the document supplied in response to DPU l4 (APR20005145_Proj_Proposal_REDACTED CONF.pdf),it states that are being included that would protect in the case higher capital costs of construction are incurred.Will PacifiCorp absorb the higher costs if any?Also,at line 266 in Mr.Teply's testimony in Docket 17-035-40,Mr.Teply were accounted for with regard to the new wind projects,but not the repowered wind projects. Confidential Response to OCS Data Request 7.9 Referencing the Company's response to DPU Data Request 1.4,specifically the provided redacted attachment "APR20005145_Proj Proposal_REDACTED CONF",the oro ect scope is limited to .The Company has applied contingencies in deriving the cost assumptions for the repowering project that involve subsequent project construction.The identification of contingency within a project construction estimate is intendedto capture cost risks and uncertainty and does not represent an allocation of cost risk between the Company and its customers. Confidential information is provided subject to Public Service Commission of Utah (UPSC)Rule 746-1-602 and 746-1-603.