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HomeMy WebLinkAbout20171121PAC to Staff 59-60.pdfRECEIVED ROCKY MOUNTAINPOWER 2817 NOV 21 PM 5:09 ^wm 1407 W North Temple,Suite 330laUBUCSaltLakeCity,Utah 84116 8 COMMISSION November 21,2017 Diane Hanian Idaho Public Utilities Commission 472 W.Washington Boise,ID 83702-5918 diane.holt@puc.idaho.gov(C) RE:ID PAC-E-17-07 IPUC 5*Set Data Request (59-60) Please find enclosed Rocky Mountain Power's Responses to IPUC 5*Set Data Requests 59-60. Provided on the enclosed CD is Confidential Attachment IPUC 60.Confidential information is providedsubject to the terms and conditions of the protective agreement in this proceeding. If you have any questions,please feel free to call me at (801)220-2963. Sincerely, J.Ted Weston Manager,Regulation Enclosures C.c.:Ronald L.Williams/PIIC ron@williamsbradburv.com(C) Brad Mullins/PIIC brmullins@mwanalytics.com (C) Jim Duke/PIIC jduke@idahoan.com (W) Kyle Williams/PIIC williamsk@byui.edu (W) Val Steiner/PIICval.steiner@agrium.com (W) Brian C.Collins/Brubaker &Associates bcollins@consultbai.com (C)(W) James R.Smith/Monsanto jim.r.smith@monsanto.com (C)(W) Maurice Brubaker/Monsantombrubaker@consultbai.com (C)(W) Katie Iverson/Monsantokiverson@consultbai.com (C) Eric Olsen/IIPA elo@achohawk.com (C) AnthonyYankel/IlPA tonv@yankel.net(C) Randall C.Budge/Monsanto reb@racinelaw.net (C) Thomas J.Budge/Monsanto tib@racinelaw.net (C)(W) PAC-E-17-07 /Rocky Mountain Power November 21,2017 IPUC 5*Set Data Request 59 IPUC Data Request 59 Please provide the terms and conditions related to mechanical availability guarantees that the Company plans to stipulate in its contracts for liquidated damages with each manufacturer supplying wind turbines for the new wind projects in this case.This should include,but not limited to,the percentage of mechanical availabilityluptime (i.e.the portion of time the turbine is availableto produce electricity whether or not the wind is blowing),the warranty period,any factors for degradation,etc. Response to IPUC Data Request 59 Mechanical availability guaranties are normally negotiated through operations and maintenance (O&M)contracts to operate wind projects rather than through turbine supply agreements with manufactures.Guaranties for lower mechanical losses have a cost premium.PacifiCorp normally targets mechanical availability guaranty losses of less than 4 percent and evaluates cost and benefits based upon the estimated impacts to the levelized cost of energy for customers. Recordholder:Ken Clark Sponsor:TBD PAC-E-17-07/Rocky Mountain Power November21,2017 IPUC 5th Set Data Request 60 IPUC Data Request 60 Please provide the wind turbine percentage of mechanical availability assumed in the models that derived the NPVRR(d)contained in Rick Link's direct testimony. Response to IPUC Data Request 60 The wind values used in the models that derived the net present value of revenue requirements differential (NPVRR(d))are based on a combination of the performance of existing wind farms in the vicinity of Medicine Bow,Wyoming and the confidential "Utility-Scale Wind Generation Study for the 2017 IRP" report,which is provided as Confidential Attachment IPUC 60,.This report was prepared for PacifiCorp by Black and Veatch (B&V)in 2016.B&V stated in the report that wind turbine availability loss (mechanical availability loss)is "typicallyestimated at 3 to 5 percent"and is a factor included in the net capacity factor (NCF)calculation.B&V used an availability loss of 4 percent during the first 20 years of operation of wind projects in the generation assumptions of the report.The existing wind farms in the Medicine Bow.Wyoming area have average availability rate losses between 2 percent and 4 percent between 2010 and 2016. Confidential information is provided subject to the terms and conditions of the protective agreement in this proceeding. Recordholder:Ken Clark Sponsor:TBD