The URL can be used to link to this page

Home My WebLink About20180329PAC to Staff UT UAE Set 5 (1-29) (1).pdf1407 W.North Temple ROCKY MOUNTAIN Salt Lake City,UT 84116 POWER A DIVISION OF PACIFICORP March 9,2018 Gary A.Dodge Phillip Russell HATCH,JAMES &DODGE 10 West Broadway,Suite 400 Salt Lake City,Utah 84101 gdodge@hjdlaw.com (C) prussell@hjd_law.com (C) Kevin Higgins Neal Townsend ENERGY STRATEGIES 215 S.State Street,#200 Salt Lake City,UT 84111 khiggins@energystrat.com (C) ntownsend@energvstrat.com(C)(W) RE:UT Docket No.17-035-40 UAE 5th Set Data Request (1-29) Please find enclosed Rocky MountainPower's Responses to UAE 5th Set Data Requests 5.1-5.3, 5.5-5.6,5.17,and 5.27.The remaining responses will be provided seperately.Also provided are Attachments UAE 5.5 -(1-2)and 5.27-1.Provided on the enclosed Confidential CD are Confidential Attachments UAE 5.6 and 5.27-2.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 (801)220-2823. Sincerely, Jana Saba Manager,Regulation Enclosures C.c.Erika Tedder/DPU dpudatarequest@utah.govetedder@utah.gov(C) Dan Kohler/DPU dkoehler@daymarkea.com(C) Dan Peac/DPU dpeaco@daymarkea.com (C)(W) Aliea Afnan/DPU aafnan@daymarkea.com(W) Philip Hayet/OCS pha_yet@j_kenn.com(C) Béla Vastag/OCS bvastag@utah.gov(C) Sophie Hays/UCE sophie@utahcleanenergy.ora(C) Kate Bowman/UCE kate@utaheleanenergy.org(C)(W) Emma Rieves/UCE emma@utaheleanenergy.org(C)(W) Lisa Tormoen Hickey/Interwestlisahickey@newlawaroup.com (C) Mitch Longson/Interwest mloneson@mc2b.com (C) Nancy Kelly/WRAnkelly@westernresources.org(C) Jennifer Gardner/WRA jennifer.gardner@westernresources.org(C) Penny Anderson/WRA penny.anderson@westernresources.ore (W) Peter J.Mattheis/Nucor pjm@smxblaw.com (C) Eric J.Lacey/Nucor ejl@smxblaw.com (C)(W) William J.Evans/UIEC bevans@parsonsbehle.com Vicki M.Baldwin/UIEC vbaldwin@parsonsbehle.com(W) Chad C.Baker/UIEC cbaker@parsonsbehle.com (W) 17-035-40 /Rocky Mountain Power March 9,2018 UAE Data Request 5.1 UAE Data Request 5.1 Reference the February 16,2018 Second SupplementalDirect Testimony of Rick T. Link,lines 6 through 10:Please confirm that PacifiCorp did not prepare an updated resource needs assessment when developing the economic analysis identified in the referenced testimony?Please provide an explanation for PacifiCorp's response. Response to UAE Data Request 5.1 The Company assumes that "resource needs assessment"refers to the Company's 2017 Integrated Resource Plan (IRP)Volume I,Chapter 5 (Load and Resource Balance). Based on the foregoing assumption,the Company responds as follows: No,the Company did not prepare an updated needs assessment relevant to the second supplemental direct testimony filing.Resource need is an endogenous consideration of every System Optimizer model (SO model)and Planning and Risk (PaR)model run,in which the models are identifyingthe optimal least-cost,least-risk means to meet all system requirements.To the extent that the Company has updated loads,prices,resources parameters,etc.,"resource need"has been automatically updated in the models. The Company will include an updated load and resource balance assessment in its 2017 IRP Update,to be filed with the Public Service Commission of Utah (UPSC)on March 31,2018. 17-035-40/Rocky Mountain Power March 9,2018 UAE Data Request 5.2 UAE Data Request 5.2 Reference the Second SupplementalDirect Testimony of Rick T.Link,lines 6 through 10:When performing the referenced analyses,did PacifiCorp update the cost of supply side resources other than the Wind Projects to reflect the passage of the Tax Cuts and Jobs Act,and/or any other changes that have occurred since its IRP was filed in 2017. Response to UAE Data Request 5.2 Yes,the Company updated the cost of all supply side resources automatically by updating the capital recovery factor and discount rate in the models to align with recent tax legislation. 17-035-40/Rocky Mountain Power March 9,2018 UAE Data Request 5.3 UAE Data Request 5.3 Reference the Second SupplementalDirect Testimony of Rick T.Link at lines 68 through 78:When preparing the nominal and levelized revenue requirement calculations,what assumptions did PacifiCorp make with respect to the termination of the Power Purchase Agreement (PPA)portion of Cedar Springs facility (i.e.did PacifiCorp assume that the PPA portion would be renewed,and if so,at what price.)? Response to UAE Data Request 5.3 The Company assumed the contract terminates at the termination date.The Company did not assume the automatic renewal of power purchase agreements (PPA)in the Second Supplemental direct testimony filing.This is consistent with the treatment of contracts, including PPAs and qualifying facilities (QF),in the 2017 Integrated Resource Plan (IRP). 17-035-40 /Rocky Mountain Power March 9,2018 UAE Data Request 5.5 UAE Data Request 5.5 Please provide a copy of PacifiCorp's most recently completed depreciation study,along with the final rates by FERC account and sub-account that have been approvedby the Utah Public Service Commission. Response to UAE Data Request 5.5 Please refer to Attachment UAE 5.5-1,which provides the most recent depreciation study filed with the Public Service Commission of Utah (UPSC)on January 22,2013 in Docket 13-035-02. Please refer to Attachment UAE 5.5-2,which provides a copy of the stipulation associated with that filing which provides the final rates approvedby the UPSC. 17-035-40 /Rocky Mountain Power March 9,2018 UAE Data Request 5.6 UAE Data Request 5.6 Please provide PacifiCorp's most recently completed long-term load forecast,with hourly loads,and includingall time periods considered in the forecast. Response to UAE Data Request 5.6 Please refer to Confidential Attachment UAE 5.6,which provides the most recently completed hourly,system-level long-term load forecast. Confidential information is provided subject to Public Service Commission of Utah (UPSC)Rule 746-1-602 and 746-1-603. 17-035-40 /Rocky Mountain Power March 9,2018 UAE Data Request 5.17 UAE Data Request 5.17 Please identify the date that PacifiCorp issued the forward price curve used in the revenue requirement analyses in the Second Supplemental Direct Testimony of Rick T.Link. Response to UAE Data Request 5.17 The Company's December 2017 Official Forward Price Curve,used in the revenue requirement analyses in the second supplemental direct testimony of Company witness, Rick T.Link,was issued January 2,2018. Accompanying scenarios,used in revenue requirement analyses,were based on projections issued by third-parties in late December 2017 and early January 2018. 17-035-40 /Rocky Mountain Power March 9,2018 UAE Data Request 5.27 UAE Data Request 5.27 Reference the Second Supplemental Direct Testimony of Rick Link,lines 46 through53. Please provide UAE Consultant Bradley Mullins with the built to transfer agreements underlyingeach of the wind projects included in the final shortlist. Response to UAE Data Request 5.27 Please refer to Attachment UAE 5.27-1 and Confidential Attachment UAE 5.27-2,which provide the pro-forma contract forms used in connection with the solicitation of balance of plant (BOP)engineer,procure,construct (EPC)contract proposals for the Ekola Flats and TB Flats I and II Wind Projects,and the solicitation of build transfer agreement (BTA)proposals for the Cedar Springs and Uinta Wind Projects. The Company will be engaging in detailed negotiations of definitive BOP EPC contracts and BTAs with the intent ofhavingexecutable agreements negotiated by April 16,2018. The Company will supplement this response as additional information becomes available. Confidential information is provided subject to Public Service Commission of Utah (UPSC)Rule 746-1-602 and 746-1-603.