20180329PAC to Staff WY WIEC Set 21 (1-13) (2).pdf

ROCKY MOUNTAIN
POWER
A DIVlSION OF PACIFICORP 1407 W North Temple,Suite 330
Salt Lake City,Utah 84116
March 15,2018
Abigail C.Briggerman,#7-5476
Holland &Hart LLP
6380 South Fiddlers Green Circle,Suite 500
Greenwood Village,CO 80111
[e-mail](C)
RE:Wyoming Docket 20000-520-EA-17
WIEC 21st Set Data Request (1-13)
Please find enclosed Rocky Mountain Power's Responses to WIEC 21 Set Data Requests 21.1-
21.5.
If you have any questions,please call me at [phone].
Sincerely,
Stacy Splittstoesser,
Manager,Regulation
Enclosures
C.C.:Meridith Bell/WPSC [e-mail](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)
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/WIEC [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/Southland [e-mail] (C)
20000-520-EA-17 /Rocky Mountain Power
March 15,2018
WIEC Data Request 21.1
WIEC Data Request 21.1
Please admit that the way revenue requirements affect customer rates for a company
owned asset is that the revenue requirements are initiallythe highest and decrease
overtime as the asset is depreciated.If the response to this request is anything other than
an unqualified admission please explain the response in detail.
Response to WIEC Data Request 21.1
Revenue requirements for Company-owned resources are made up of a variety of
components includingreturn on rate base,depreciation,operations and maintenance
(O&M),fuel and taxes,all of which can vary over time.Some of the changes,such as the
expiration of production tax credits (PTC)or major overhauls and improvements can
increase the revenue requirement,while items such as increases in accumulated
depreciation can decrease revenue requirement.
Respondent:Terrell Spackman
Witness:Joelle Steward
20000-520-EA-17 /Rocky Mountain Power
March 15,2018
WIEC Data Request 21.2
WIEC Data Request 21.2
Please admit that the way the nominal revenue requirements analyses are performed,is
that the revenue requirements for a company owned asset is that the revenue
requirements are initiallythe highest and decrease overtime as the asset is depreciated.If
the response to this request is anything other than an unqualified admission please
explain the response in detail.
Response to WIEC Data Request 21.2
Please refer to the Company's response WIEC Data Request 21.1.
Respondent:Terrell Spackman
Witness:Joelle Steward
20000-520-EA-17 /Rocky Mountain Power
March 15,2018
WIEC Data Request 21.3
WIEC Data Request 21.3
Please admit that the way that the Company's levelized revenue requirements analysis for
Company owned assets is performed uses revenue requirements that are initially low and
increase over time.If the response to this request is anything other than an unqualified
admission please explain the response in detail.
Response to WIEC Data Request 21.3
For revenue requirement associated with initial capital,this is correct.The inflation-
adjusted real levelized method used by the Company for these specific costs is the
preferred approach to evaluate different resource alternatives,aligns with how resource
portfolios are evaluated in the integrated resource plan (IRP),and add addresses potential
distortions in resource selections for capital-intensive assets that have different lives and
in-service dates.
Respondent:Terrell Spackman
Witness:Joelle Steward
20000-520-EA-17 /Rocky Mountain Power
March 15,2018
WIEC Data Request 21.4
WIEC Data Request 21.4
Is the Company proposing to recover the costs associated with the Combined projects
consistently with the way the revenue requirements are modeled in its levelized analysis?
If not please explain why not.
Response to WIEC Data Request 21.4
No,the Company is proposing to calculate the nominal revenue requirement for recovery
through the resource tracking mechanism (RTM)consistent with the methodology used
in general rate cases (GRC).
The system modeling results provide a view of economic analysis that is consistent with
the planning period and approach used to identify a least-cost,least-risk preferred
portfolio in the Integrated Resource Plan (IRP).This type of analysis was used to identify
new wind and transmission projects as an element of PacifiCorp's least-cost,least-risk
plan in the 2017 IRP and has been used to evaluate past resource acquisitions and plant
investments.
Respondent:Terrell Spackman
Witness:Joelle Steward
20000-520-EA-17 /Rocky Mountain Power
March 15,2018
WIEC Data Request 21.5
WIEC Data Request 21.5
How are the revenue requirements that flow into Joelle Steward's analysis modeled,
using levelized revenue requirements or nominal revenue requirements?Please explain
the rationale for this approach in detail.
Response to WIEC Data Request 21.5
The revenue requirements that flow into Joelle Steward's exhibits are calculated as
nominal revenue requirements.
Respondent:Terrell Spackman
Witness:Joelle Steward