20180329PAC to Staff WY WPSC Set 7 (1-5).pdf

ROCKY MOUNTAIN
POWER
A DIVlSION OF PACIFICORP 1407 W North Temple,Suite 330
Salt Lake City,Utah 84116
March 26,2018
Meridith Bell
2515 Warren Avenue,Suite 300
Cheyenne,Wyoming 82002
m ov (C)
RE:Wyoming Docket 20000-520-EA-17
WPSC 7 h Set Data Request (1-5)
Please find enclosed Rocky Mountain Power's Responses to WPSC 7th Set Data Requests 7.1-
7.5.
If you have any questions,please call me at [phone].
Sincerely,
Stacy Splittstoesser,
Manager,Regulation
Enclosures
C.C.:Lori L.Brand/WPSC lori.brand wyo.gov (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/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/[e-mail] (C)
20000-520-EA-17 /Rocky Mountain Power
March 26,2018
WPSC Data Request 7.1
WPSC Data Request 7.1
Referencing the Second SupplementalDirect Testimony of Cindy A.Crane filed on
February 16,2018,what are the depreciation lives assumed by the Company's 200 MW
Power Purchase Agreement as referenced on page 4.Please provide the operational life
utilized by the 200 MW PPA provider.Please explain the assumptions.
Response to WPSC Data Request 7.1
The depreciable life is not used to establish revenue requirement for a power purchase
agreement (PPA).The bidder did not specify how it would depreciate its asset backing
the 200 megawatt (MW)PPA.
Respondents:Alex Lee
Witness:Rick Link
20000-520-EA-17 /Rocky Mountain Power
March 26,2018
WPSC Data Request 7.2
WPSC Data Request 7.2
Please put together an estimate for the base case assuming a 20-year anticipated
operational life on the wind projects rather than the 30-year anticipated operational life
identified by the Company on page 15 of the original Direct Testimony of Chad A.
Teply.Please include the estimated annual revenue requirement over a 20-year
operational life.Please also include the $per kW analysis.
Response to WPSC Data Request 7.2
The Company objects to this request as overlybroad,undulyburdensome,and
requiring the development of a special study or information not readily available in the
format requested or maintained in the ordinary course of business.Without waiving
these objections,the Company responds as follows:
The Company has not performed this analysis.The projects are anticipated to have a 30-
year operational life,consistent with industry standard assumptions of a 30-year asset life
for wind projects designed to industry design standards.
Respondents:Randy Baker
Witness:Rick Link
20000-520-EA-17 /Rocky Mountain Power
March 26,2018
WPSC Data Request 7.3
WPSC Data Request 7.3
Referencing page 9 of the original Direct Testimony of Cindy A.Crane which states,"the
Transmission Projects will allow greater dispatch flexibilityof the Company's existing
generatingassets,includingthe Wyomingcoal fleet.Overall,this greater dispatch
flexibilitywill lead to a slight reduction in coal-based generationfrom the Company's
Wyoming coal fleet."This statement seems to indicate curtailment of existing generation.
Are there other Company costs besides the identified non-Company costs of "the
projected reduction in royalties associated with reduced coal utilization"with curtailing
existing generation?If so,please explain where the costs for curtailingexisting
generationto accommodate the proposed transmission and wind projects will be
accounted for and recovered.
Response to WPSC Data Request 7.3
The economic re-dispatch of the system is an inherent part of the Company's modeling,
and is represented in the work papers and optimization results that have been provided.
Consistent with system operations,the Planning and Risk (PaR)model will back down
dispatchable resources when doing so creates a system benefit,and so long as doing so
conforms to all system constraints and requirements.The slight reduction in coal-based
generation,which reduces fuel and operating costs in favor of lower-cost energy,is a cost
savings.
Respondents:Randy Baker
Witness:Rick Link
20000-520-EA-17 /Rocky Mountain Power
March 26,2018
WPSC Data Request 7.4
WPSC Data Request 7.4
Does the Company anticipate any early retirement of existing generationdue to the
proposed wind projects,and will there be costs associated therewith?If so,please explain
how any costs associated with such early retirement will be accounted for and recovered.
Response to WPSC Data Request 7.4
The Company does not anticipate any early retirement of existing generationdue to the
proposed wind projects.
Respondents:Rick Link
Witness:Rick Link
20000-520-EA-17 /Rocky Mountain Power
March 26,2018
WPSC Data Request 7.5
WPSC Data Request 7.5
In Docket No.20000-519-EA-17,on page 15 of the Direct Testimony of TimothyJ.
Hemstreet he identified certain "major turbine components"which were experiencing
high failure rates,such as gearboxes.
(a)If the proposed wind projects in this docket fail at a similar rate to those identified in
Sub 519,will ratepayers be responsible for the full repair and/or replacement costs
over the life of the wind projects after the warranty period?Please explain.
(b)Did the Company run an analysis of costs where the proposed wind projects failed at
a similar rate to those identified in Sub 519?Please explain.
Response to WPSC Data Request 7.5
(a)Due to the design advancements in the wind industry in the past 10 years,and the fact
that the impacted gearbox models will not be supplied in either the repoweredwind
turbines or new wind turbines,the Company does not believe it will experience
gearbox component issues as described in the testimony of Company witness,
TimothyJ.Hemstreet in Docket 20000-519-EA-17.Operations and maintenance
(O&M)costs and ongoing capital costs for the new wind projects will be treated as
any other operating expenses for resources within the Company's generation
portfolio.
(b)No,the Company did not perform the requested speculative analysis.Please refer to
the Company's response to subpart (a)above.
Respondents:Randy Baker /Tim Hemstreet
Witness:Rick Link