20180208PAC to Staff WY WPSC Set 5 (1-4).pdf

ROCKY MOUNTAINPOWER
A DIVISION OF PAClFICORP 1407 W North Temple,Suite 330
Salt Lake City,Utah 84116
February 1,2018
Meridith Bell
2515 Warren Avenue,Suite 300
Cheyenne,Wyoming 82002
RE:Wyoming Docket 20000-520-EA-17
WPSC 5th Set Data Request (1-4)
Please find enclosed Rocky Mountain Power's Responses to WPSC 5th Set Data Requests 5.1-
5.4.Also provided is Confidential Response WPSC 5.3.Confidential informationis provided
subject to the terms and conditions of the protective agreement in this proceeding.
If you have any questions,please call me at [phone].
Sincerely,
Stacy Splittstoesser,
Manager,Regulation
Enclosures
C.C.:Lori L.Brand/WPSC [e-mail] (W)
John Burbridge/WPSC [e-mail](W)
Michelle Bohanan/WPSC [e-mail] (W)
Kara Seveland/WPSC [e-mail](W)
Morgan Fish/WPSC [e-mail] (W)
Dave Walker/WPSC [e-mail] (W)
Perry McCollom/WPSC [e-mail](W)
Abigail C.Briggerman/WIEC [e-mail](C)
Patti Penn/WIEC [e-mail](W)
Thor Nelson/WIEC [e-mail] (C)(W)
Emanuel Cocian/WIEC [e-mail] (W)
Adele Lee/WIEC [e-mail] (W)
Nik Stoffel/[e-mail] (C)(W)
Christopher Leger/OCA [e-mail] (C)
Crystal J.McDonough/[e-mail] (C)
Callie Capraro/NLRA [e-mail]
Lisa Tormoen Hickey/[e-mail] (C)
Brandon L.Jensen/RMSC [e-mail] (C)
Roxane Perruso/TOTCO [e-mail]
Jane M.France/TOTCO [e-mail] (C)
Constance E.Brooks/Anadarko [e-mail] (C)
Danielle Bettencourt/Anadarko [e-mail](C)(W)
Paul Kapp/Anadarko [e-mail] (C)
Lisa Christian/TOTCO [e-mail] (C)
J.Kenneth Barbe/Southlandkbarbe wsmtlaw.com (C)
20000-520-EA-17 /Rocky Mountain Power
February 1,2018
WPSC Data Request 5.1
WPSC Data Request 5.1
If not already provided,as soon as possible,please provide electronic copies of
spreadsheets used in the Supplementfiled January 16,2018 (Supplement)with formulas
intact.Also,please provide the work papers associated with the Supplement as soon as
possible.
Response to WPSC Data Request 5.1
Electronic copies of spreadsheets and work papers for the supplemental filing on January
16,2018 were provided on CD at the time of the filing.
Respondents:Not Applicable
Witness:Not Applicable
20000-520-EA-17 /Rocky Mountain Power
February 1,2018
WPSC Data Request 5.2
WPSC Data Request 5.2
Please provide a standalone analysis of the change in economics from the original base
case due to changes in the tax law.Please discuss the changes due to the federal income
tax corporate rate,bonus depreciation,ADIT,production tax credits,domestic production
activities deduction,and any other significant tax changes impacting the Projects.
Response to WPSC Data Request 5.2
PacifiCorp has not performed the requested analysis.
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.
The production tax credit was unchanged.However,the benefit to customers after tax
gross-up was reduced by approximately 18 percent.
Accumulated deferred income tax (ADIT)reduced due to the lower tax rate and loss
of bonus depreciation.
Respondents:Shay LaBray /Mark Paul
Witness:Nikki Kobliha
20000-520-EA-17 /Rocky Mountain Power
February 1,2018
WPSC Data Request 5.3
WPSC Data Request 5.3
Please provide a standalone analysis of the change in economics from the original base
case due to changes from final RFP selection and other non-tax changes included through
the date of the Supplement.Please discuss major cost changes associated with the final
RFP selection included in the Supplement.Please identify any unknown costs not
included in the Supplement.
Confidential Response to WPSC Data Request 5.3
PacifiCorp has not performed the requested analysis.
The Company has compiled a worksheet with the original base case wind assets (all
PacifiCorp benchmarks)and the current final short list (FSL)case wind assets.Due to the
ongoing nature of the 2017R Request for Proposals (2017R RFP),the document
associated with the foregoing 2017R RFP information is 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 Stacy Splittstoesser at [phone] or Yvonne Hogle at [phone]
to make arrangements for review.
Variances between the two cases are:
Original base case includes the followingproxy benchmark and power purchase
agreement (PPA)assets:
-Ekola Flats 250 megawatts (MW)
-McFadden Ridge II 109 MW
-TB Flats I and TB Flats II 500 MW
-Proxy PPA 320 MW
FSL case includes the followingassets:
-TB Flats I and II (PacifiCorp)500 MW
-McFadden Ridge II (PacifiCorp)109 MW
-Cedar Spring (NextEra Energy)400 MW
-Uinta (Invenergy)161 MW
All benchmarks and build-transfer agreement (BTA)projects have a 30-year life;FSL
assets include one asset (Cedar Springs)that is 50 percent PPA/50 percent BTA.The
PPA has a 20-year term.
All benchmarks and BTA bids have production tax credit (PTC)benefits;FSL assets
have PTC benefits except PPA (value imbedded in pricing).
All figures assume a 35 percent Federal income tax rate for comparability.
20000-520-EA-17 /Rocky Mountain Power
February 1,2018
WPSC Data Request 5.3
O
Confidential information is provided subject to the terms and conditions of the protective
agreement in this proceeding.
Respondents:Shay LaBray /Ron Scheirer
Witness:Rick Link
20000-520-EA-17 /Rocky Mountain Power
February 1,2018
WPSC Data Request 5.4
WPSC Data Request 5.4
Will there be extra excess capacity available as a result of the Transmission Projects?
(a)If so,what will happen with the extra excess capacity available on the new
transmission lines,given two of the Wind Projects are outside of the general vicinity
of the Transmission Projects?
(b)Are the new transmissions segments tentativelyfully subscribed (inclusive of the
Wind Repowering discussed in Docket 20000-519-EA-17)or is there additional
capacity for other third parties?
(c)Do the economics provided in the Supplement account for the Transmission Projects
operating near full capacity,or do the economics leave out any significant
unsubscribed capacity?
Response to WPSC Data Request 5.4
The Company assumes that the term "excess capacity"as used in this data request refers
to capacity associated with transmission service.Based on the foregoing assumption,the
Company responds as follows:
(a)The addition of the D.2 Project facilities will result in the formation of the Aeolus
West transmission path,which will utilize transmission facilities in the existing TOT
4A transmission path and will measure transmission flows from eastern to central
Wyoming.Of the projects selected to the short list in the 2017R Request for
Proposals (2017R RFP),only Uinta County is located west of the Aeolus West cut
plane.By utilizingexisting thermal and wind generation,and proposed wind,on the
east side of the Aeolus West cut plane,the east to west transmission capacity on this
path will be fully utilized.
(b)Please refer to the Company's response to subpart (a)above.
(c)The economics provided in the Company's supplemental testimony assume
transmission capacity is available for the Company's new wind projects,whether
owned or contracted,and existing resources.Use of the line is driven by economic
dispatch of these resources within the available transmission.The economic analysis
does not assume any incremental transmission rights go unused.
Respondents:Craig Quist /Robyn Kara /Dan Swan
Witness:Rick Vail