20180208PAC to Staff UT UAE Set 4 (1-2).pdf

1407 W.NorthTemple
ROCKY MOUNTAIN Salt Lake City,UT 84116
POWER
A DMSION OF PACIFICORP
January 29,2018
Gary A.Dodge
Phillip Russell
HATCH,JAMES &DODGE
10 West Broadway,Suite 400
Salt Lake City,Utah 84101
gdodge@hj_dlaw.coom (C)
prussellghidlaw.co_m (C)
Kevin Higgins
Neal Townsend
ENERGY STRATEGIES
215 S.State Street,#200
Salt Lake City,UT 84111
[e-mail] (C)
[e-mail](C)(W)
RE:UT Docket No.17-035-40
UAE 4*Set Data Request (1-2)
Please find enclosed Rocky Mountain Power's Redacted Responses to UAE 4th Set Data
Requests 4.1-4.2.Provided on the enclosed Confidential CD are Confidential Responses UAE
4.1 and 4.2 and Confidential Attachments UAE 4.1 -(1-2).Confidential information is provided
subject to Public Service Commission of Utah (UPSC)Rule 746-1-602 and 746-1-603.
If you have any questions,please call me at [phone].
Sincerely,
Jana Saba
Manager,Regulation
Enclosures
C.c.Erika Tedder/DPU [e-mail]@utah.gov(C)
Dan Kohler/DPU [e-mail](C)
Dan Peac/DPU [e-mail] (C)(W)
Aliea Afnan/DPU [e-mail] (W)
Philip Hayet/OCS p_hayet@j_k_enn.com_(C)
Béla Vastag/OCS [e-mail] (C)
Sophie Hays/UCE [e-mail](C)
Kate Bowman/UCE [e-mail](C)(W)
Emma Rieves/UCE [e-mail](C)(W)
Lisa Tormoen Hickey/[e-mail] (C)
Mitch Longson/Interwest [e-mail] (C)
Nancy Kelly/WRA [e-mail](C)
Jennifer Gardner/WRA [e-mail](C)
Penny Anderson/WRA [e-mail] (W)
Peter J.Mattheis/Nucor [e-mail] (C)
Eric J.Lacey/Nucor [e-mail] (C)(W)
William J.Evans/UIEC [e-mail]
Vicki M.Baldwin/UIEC [e-mail](W)
Chad C.Baker/UIEC [e-mail] (W)
17-035-40 /Rocky Mountain Power
January 29,20 18
UAE Data Request 4.1
UAE Data Request 4.1
CONFIDENTIAL REQUEST-Reference the confidential Excel work paper provided
with the January 16,2018 testimony of Rick T.Link with file path
(a)Please explain why many of the formulas in this work paper have been replaced with
a link to the followingfile:
(b)Please provide a copy of the Excel file
identified in the referenced work paper.
(c)Please explain why the annual revenue requirement computations for the
Transmission Projects,which previously were included in the work p er with file
name
hich was submitted with the Company's
June 2017 filing in this docket,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 to what
has been provided in the work pa.er with file name
which was submitted with the Company's June 2017 filing in this docket.
(e)In the revenue requirement computations provided in response to 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 file name
hich was submitted
with the Company's June 2017 filing in this docket.
(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 file name
which was submitted with the Company's June 2017 filing in this docket.
17-035-40 /Rocky Mountain Power
January 29,2018
UAE Data Request 4.1
Response to UAE Data Request 4.1
(a)Please refer to Confidential Attachment UAE 4.1-1.The detailed calculations are
performed in this spreadsheet and reported in "Gateway_IRP Data 21%US Tax
(VL)".The latter spreadsheet was provided with the confidential work papers
supporting the supplemental and rebuttal testimony of Company witness,Rick T.
Link,specifically in folder "Transmission Project".The spreadsheet contained in
Confidential Attachment UAE 4.1-1 should have been provided with the confidential
work papers.
(b)Please refer to Confidential Attachment UAE 4.1-1.
(c)Please refer to Confidential Attachment UAE 4.1-1 and Confidential Attachment
UAE 4.1-2.The spreadsheets contained in Confidential Attachment UAE 4.1-1 and
Confidential Attachment UAE 4.1-2 should have been provided with the confidential
work papers.
(d)Please refer to Confidential Attachment UAE 4.1-1 and Confidential Attachment
UAE 4.1-2.
(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 unrelatedto the Tax Cuts &Jobs Act:
"Energy Gateway GM 2017 03 13 w Bonus.xlsm":No other changes.
"Wind Network TB Flats I &II v2.xlsm":
The Wind Network TB Flats I and II transmission models are now
combined.
17-035-40 /Rocky Mountain Power
January 29,2018
UAE Data Request 4.1
Confidential information is provided subject to Public Service Commission of Utah Rule
746-1-602 and 746-1-603.
17-035-40 /Rocky Mountain Power
January 29,2018
UAE Data Request 4.2
UAE Data Request 4.2
CONFIDENTIAL REQUEST-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 Testimonyof
Rick T.Link.Please provide these work papers in a format substantially similar to the
work papers included in the folder
provided with the Direct Testimony of Rick Link in the
Company's June 2017 filing in this docket.
Response to UAE Data Request 4.2
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 model (SO model)and the planning and Risk (PaR)model
are considered commercially sensitive and highly confidential.The Company does not
typically permit access to commercially sensitive 2017R RFP documentation until the
RFP has been concluded.Please contact Jana Saba at [phone] or Yvonne Hogle at
[phone] to make arrangements for review.