20171017PAC to Staff 38-40.pdf

ROCKY MOUNTAINPOWER^***"""°"1407 W North Temple,Suite 330
Salt Lake City,Utah 84116
October 17,2017
Diane Hanian
Idaho Public Utilities Commission
472 W.Washington
Boise,ID 83702-5918
diane.holtra nuc.idaho.cos (C)
RE:ID PAC-E-17-06
IPUC 4th Set Data Request (38-40)
Please find enclosed Rock)Mountain Power s Responsesto IPt (4"'Set Data Requests 38-40.
Also provided on the enclosed Confidential CD is Confidential Attachment IPEC 39.
Confidential information is provided subject to the terms and conditions of the protectise
agreement in this proceeding
Confidential information is provided subject to the protective order in this proceeding.
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/PUC (C)
Brad Mullins/PHC (C)
Jim Duke/PIIC (C)(W)
Kyle Williams/PUC swilliiamst byui.gdu (C)(W)
Val Steiner/PUC ygger@agtigggom (C)(W)
James R.Smith/Monsanto -(C)(W)
Brian C.Collins/Brubaker&Associates M (C)(W)
Maurice Brubaker/MonsantoM (C)(W)
Katie Iverson/MonsantoMm_(C)
Eric L Olsen/HPA go@echo_hawkyyn(C)
Anthony Yankel/HPA t¾elge](C)
Randall C.Budge/Monsanto [e-mail] (C)
Thomas J.Budge/Monsanto tjh@racinelag (C)(W)
PAC-E-17-06 /Rocky Mountain Power
October 17,2017
IPUC 4'"Set Data Request 38
IPUC Data Request 38
In reference to the wind integration cost that is calculated on line 61 of the
Repower Data 20170516 LGIA Limit vl3 file in the Summary tab.please explain
where this wind integration cost is found in the Project Net Costs calculated on
lines 88-93 of the Repower Results Direct Testimon)in the Price-Polic)Annual-
PaR tab.
(a)If wind integration cost is included in the Project Net Cost.please explain
where it is included and provide work papers,model output,etc.to show how
it is included.
(b)If wind integration cost is not included in the Project Net Cost.please explain
where in the PVRR(d)analysis.lines 87-102 ofthe Repower Results Direct
l estimony ille in the Price-Policy Annual PaR tab.it is included.In
addition.provide the tlle where it is calculated and the total wind integration
project cost value.
(c)If wind integrationcost is not included in the PVRR(d)analysis,please
explain why it was not included.
Response to IPUC Data Request 38
f a)The wind integration cost is not included in the Project Net Cost but instead
reported on line 96 labeled net power costs (NPC)under System impacts.
Please refer to the contidential work papers supporting the Direct i estimony
of Company witness.Rick f.I.ink.specifically:
Folder:Exhibits Figures Tables
File:Repower Results Direct Testimony
fab:Price-Policy Annual -PaR.
(b)Please refer to the Company 's response to subpart (a)abos e
(c)Please refer to the Company s response to subpart (a)abos e.
Recordholder:Dan Swan
Sponsor:Rick Link
PAC-E-17-06 /Rocky Mountain Power
October 17,2017
IPUC 4*Set Data Request 39
IPUC Data Request 39
In reference to IPUC Production Request response 36 part (c).please provide the
input assumptions used to calculate the production tax credit portion of the
Proposed Station Fixed Costs.This should include.but not limited to the percent(100°o.80°o.etc)of PTC received and the S/MWh for each year in service.
Response to IPUC Data Request 39
Please refer to Confidential Attachment IPUC 39.which pros ides the production
tax eredit (PTC)portion of the Proposed Station I ixed Costs.
Confidential information is pros ided subject to the terms and conditions of the
protective agreement in this proceeding
Recordholder:Dan Swan
sponsor:Rick Link
P A('-I -17-06 /Rocky Mountain Power
October 17,2017
IPl'C 4"'Set Data Request 40
IPUC Data Request 40
Please explain why the Company s models (System Optimizer and PaR)included
the 300 MW of Wyoming wind in year 2021 in the Company s baseline scenario
used for comparison of the l'ompany's proposal to calculate the PVRR(d).Please
provide the specific driser(s)for including it into the baseline.For example.was
it included to meet capacity deneits.RPS requirements in other states.etc.Please
pros ide documentation.work papers.and or model outputs that illustrates the
Company s explanation.
Response to IPUC Data Request 40
The S)stem Optimizer model (SO model)includes a broad range ofexpansion
resources.including prox)wind resources.that can be used to meet capacity
requirements inclusive of a 13 percent planning reserie margin (PRM)and energy
requirements serving all customer loads.that minimize the present value of
revenue requirements (PYRR).lhe SO model produces a portfolio which
simultaneously optimi7es all of these factors over the entire study period.in this
case from 2017 through 2036.
lhe 300 megawatts (MW)of Wyoming wind in 2021 nas selected as a least cost
option by the SO model,recognizing it is eligible for 100 percent of production
tax credits (P i t')by being placed in service by December 31.2020.Note:this
resource was not selected to meet state-specitic policy objectives.such as
requirements to meet renewable portfolio standards (RPS)targets.No state-
specific RPS constraints were included in the study.
The 300 MW n ind resource in 2021 prot ides capacity through the end of the
study term.The selection of the resource indicates that it was a lower cost option
for meeting both peak load requirements and energy requirements over that entire
time frame relative to other alternatives.For instance.had the resource been
added in 2022.the effective cost n ould be higher as it n ould not has e been
eligible for PTC's.Since the model chose to add wind at the last possible time that
maintained P 10'eligibility .it indicates that the t alue of the PTC's.along w ith the
capacity and energ)benetits the resource provided outneighed the additional cost
of acquiring it earlier than resources would have been needed solely from a
capacity standpoint.Because asailable front office transactions (FOT)are
sufficient to meet the ('ompany's capacity requirements in the early y ears of the
stud).the capacity benefits of this resource are small during the first seieral y ears
atier being placed in service.
Recordholder:Dan Swan
Sponsor:Rick Link