20180207PAC to Staff 19-20 - Redacted.pdf

RECElVED
ROCKY MOUNTAINPOWER 2018 FEB -7 AM ll:0 1
A DIVISION OF i¼QFICORP .,1407 W North Temple,Suite 330
Salt Lake City,Utah 84116OMMISSION
February 7,2018
Ronald L.Williams,ISB No.3034
802 W.Bannock Street,Suite 900
Boise,ID 83702
ron williamsbradbury.com(C)
RE:ID PAC-E-17-07
PIIC 4*Set Data Request (19-20)
Please find enclosed Rocky Mountain Power's Responses to PIIC 4*Set Data Requests 19-20.
Provided on the enclosed Confidential CD is ConfidentialResponsePIIC 19 and Confidential
Attachments PIIC 19 --(1-2).
Confidential information is provided subject to the terms and conditions of the protective
agreement 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.:Brad Mullins/PIIC [e-mail] (C)
Jim Duke/PIIC [e-mail] (W)
Kyle Williams/PIIC [e-mail] (W)
Val Steiner/[e-mail] (W)
Brian C.Collins/Brubaker&Associates [e-mail] (C)(W)
James R.Smith/Monsanto [e-mail] (C)(W)
Maurice Brubaker/Monsanto [e-mail] (C)(W)
Katie Iverson/Monsanto [e-mail] (C)
Eric Olsen/IIPA [e-mail] (C)
AnthonyYankel/IIPA [e-mail](C)
Randall C.Budge/Monsanto [e-mail] (C)
Thomas J.Budge/Monsanto tib racinelaw.net (C)(W)
Diane Hanian/IPUC diane.holt puc.idaho.cov (C)
PAC-E-17-07 /Rocky Mountain Power
February 7,2018
PIIC 4"'Set Data Request 19
PIIC Data Request 19
Reference the Jan 16th 2018 Supplemental Direct Testimony work paper of Mr.
Link titled:"\Transmission Project\Gateway_IRP Data 21%US Tax (VL).xlsx":
(a)Please explain why the formulas in this work paper have been replaced with a
link to the following file:"Energy Gateway GM 2017 03 13 21%US
Tax.xlsm."
(b)Please provide a copy of Excel the file "Energy Gateway GM 2017 03 13 21%
US Tax.xlsm,"identified in the referenced work paper.
(c)Please explain why the annual revenue requirement computations for the
Transmission Projects,which were included in the Transmission Project work
papers accompanying the Company's Direct Testimony,have been excluded
from the referenced work paper.
(d)Please provide all of the revenue requirement computations,which were used
in the referenced work paper to develop annual revenue requirements for the
Transmission Projects.Please provide these computations in a manner
substantially similar what was provided in Direct Testimony (e.g.the
"Generic Model"in the file titled "Energy Gateway GM 2017 03 13 w
Bonus.xlsm").
(c)In the revenue requirement computations provided in responseto sub-request
"d."of this request,please identify each change that was made to the revenue
requirement computations to incorporate the provisions of the Tax Cuts and
Jobs Act,relative to the work papers used in the Company's Direct
Testimony.
(f)In the revenue requirement computations provided in response to sub-request
"d."of this request,please identify any other changes made that were
unrelated to the Tax Cuts and Jobs Act,relative to the work papers used in the
Company's Direct Testimony.
Confidential Response to PIIC Data Request 19
(a)Please refer to Confidential Attachment PIIC 19-1.The detailed calculations
are performed in this spreadsheetand reported in "Gateway_IRP Data 21%
US Tax (VL)".The latter spreadsheetwas provided with the confidential work
papers supporting the supplemental direct testimony of Company witness,
Rick T.Link,specifically in folder "Transmission Project".The spreadsheet
contained in Confidential Attachment PIIC 19-1 should have been provided
with the confidentialwork papers.
PAC-E-17-07 |Rocky MountainPower
February 7,2018
PIIC 4"'Set Data Request 19
(b)Please refer to ConfidentialAttachment PIIC 19-1.
(c)Please refer to ConfidentialAttachment PIIC 19-1 and Confidential
Attachment PIIC 19-2.The spreadsheets contained in Confidential
Attachment PIIC 19-1 and Confidential Attachment PIIC 19-2 should have
been provided with the confidential work papers.
(d)Please refer to Confidential Attachment PIIC 19-1 and Confidential
Attachment PIIC 19-2.
(e)The Tax Cut &Jobs Act reduced the federal tax rate from 35 percent to 21
percent.This had the followingimpacts:
Reduced the Company's effective tax rate from 37.951 percent to 24.587
percent.
Increased the Company's discount rate from 6.57 percent to 6.91 percent.
Bonus depreciation on post-2017 investments eliminated.
Accumulated deferred income tax (ADIT)reduced due to the lower tax
rate and loss of bonus depreciation.
(f)Other changes that are unrelated to the Tax Cuts and Jobs Act:
"Energy Gateway GM 2017 03 13 w Bonus.xlsm":No other changes,
transmission models are now combined.
Confidential information is provided subject to the terms and conditions of the
protective agreement in this proceeding.
Recordholder:Mark Paul
Sponsor:Rick Link
PAC-E-17-07 /Rocky Mountain Power
February 7,2018
PIIC 4th Set Data Request 20
PIIC Data Request 20
Please provide the Excel financial models that were used to calculate the nominal
and levelized revenue requirements for each of the Wind Projects identified in
Table 1SD of the Supplemental Direct and Rebuttal Testimony of Rick T.
Link.Please provide these work papers in a format substantially similar to the
work papers included in the folder "/Wind Projects"in the Company's Direct
Testimony (e.g."TB Flats I
250 RFPBM V13G_EPC_03312017-30YR-GW4_FINAL.xlsx").
Response to PIIC Data Request 20
Due to the ongoing nature of the 2017 Renewable Request for Proposals (2017R
RFP),the financial models associated with the 2017R RFP that contain the
derivation of inputs used in the system optimizer (SO)model and the planning
and risk model (PaR)are considered commercially sensitive and highly
confidential.The Company does not typicallypermit access to commercially
sensitive 2017R RFP documentation until the RFP has been concluded.Please
contact Ted Weston at [phone] or YvonneHogle at [phone] to
make arrangements for review.
Recordholder:Ron Scheirer
Sponsor:Rick Link