20170926PAC to IIPA 2.pdf

ROCKY MOUNTAIN
POWER
A DIVISION OF PACWICORP 1407 W North Temple,Suite 330
Salt Lake City,Utah 84116
September 26,2017
Eric L.Olsen
ECHO HAAWK &OLSEN,PLLC
505 Pershing Ave.,Ste.100
Pocatello,Idaho 83205
elg@echo_h wk.co_m (C)
RE:ID PAC-E-17-06
IIPA 2nd Set Data Request (18)
Please find enclosed Rocky MountainPower's Response to IIPA 2nd Set Data Request 18.
If you have any questions,please feel free to call me at [phone].
Sincerely,
J.Ted Weston
Manager,Regulation
Enclosures
C.c.:Ronald L.Williams/PIIC (C)
Jim Duke/PIIC (C)(W)
Kyle Williams/PIICwilliamskgLbby_ui.e_du(C)(W)
Val Steiner/PIIC [e-mail] (C)(W)
James R.Smith/Monsanto (C)(W)
Maurice Brubaker/Monsanto (C)(W)
Katie Iverson/Monsanto (C)
AnthonyYankel/IIPA [e-mail] (C)
Randall C.Budge/Monsanto [e-mail](C)
Thomas J.Budge/Monsanto [e-mail](C)(W)
Diane Hanian/IPUC (C)
PAC-E-17-06 /Rocky Mountain Power
September 26,2017
IIPA 2nd Set Data Request 18
IIPA Data Request 18
On the Confidential Dise,there is a spreadsheet titled "CONF JKL Exhibits 12-14
Repower ID 6.28.17 Work Papers".Please answer the following:
a.Is there any confidential material in any of the Tabs in that spreadsheet?
b.The meaning of the data under Tab "NPC and Cost Rollup"is unclear.The
PTC's stop in 2030.By contrast,the reduction in NPC gets quite large after 2030,
only to drop again soon thereafter,and then to get quite large again around 2038.
Please explain what this data represents.
c.Regarding Tab "Rate Base for Exh RTL-5"please answer the following:
i.There does not appear to be a Rich Link Exhibit 5.Please clarify.
ii.Is line 7 (Operating Expenses)for the Repower Case or the Status Quo Case?
iii.Is line 19 (Federal Production Tax Credit)only for the Status Quo Case?
Response to IIPA Data Request 18
(a)Yes.
(b)Under the tax regulations,PTC benefits expire ten years after the
repowering in-service date.The last scheduled in-service date for
repowering is projected to be near the end of 2020;therefore,PTC benefits
will expire ten years later in the early portion of the year 2030.
The repowering NPC benefit in the workbook represents the difference
between the Company's projections of system NPC in the status quo
scenario without repowering compared to the repowering scenario.Please
refer to the Direct Testimony of Rick T.Link for discussion of the
methodology used to determine these benefits.The increase in repowering
NPC benefits near and after 2038 reflect that without repowering,existing
wind farms are projected to retire after 30 years of operation,resulting in an
increase in NPC from replacement resources.Repowering extends the life
of zero-fuel-cost wind resources,thus avoiding the increase in NPC,and
results in the increased NPC benefit seen.The change in wind energy
between the status quo and repowering scenarios is summarized in Figure 4
in Mr.Link's Direct Testimony.
(c)
(i)The Tab "Rate Base for Exh RTL-5"is the naming convention
initiallyused in the workbook development for Utah and Wyoming
repowering filings that carried over to the Idaho Repowering filing.
Rick Link's Utah and Wyoming Exhibit RMP_(RTL-5)is the same
as Idaho Exhibit No.10.
PAC-E-17-06 /Rocky Mountain Power
September 26,2017
IIPA 2nd Set Data Request 18
(ii)Line 7 represents the incremental change in O&M between the
repowering case and the status quo case.
(iii)Line 19 represents the federal PTC revenue requirement benefit of the
repowering case.
Recordholder:Rick Link
Sponsor:Rick Link