HomeMy WebLinkAbout20190117PAC to Staff 13-20.pdfECEIVED
ROCKY MOUNTAIN
BP.HE.#",,i^
ISSION
1407 W North Temple, Suite 330
Salt Lake City, Utah 84116
RE:
January 17,2019
Diane Hanian
Edward Jewell
Idaho Public Utilities Commission
472W. Washington
Boise,ID 83702-5918
diane. holt(a).puc. idaho. eov (c)
edward/j ewell@puc. idaho. qov (C)
ID PAC-E-I8-08
IPUC 3'd Set Data Request (13-20)
Please find enclosed Rocky Mountain Power's Responses to IPUC 3'd Set Data Requests 13-20.
Also provided is Attachment IPUC 13. Provided on the enclosed Confidential CD are
Confidential Attachments IPUC 15, 16, and 18. Confidential information is provided subject to
the terms of the non-disclosure agreement in this docket.
Sincerely,
1sl-
J. Ted Weston
Manager, Regulation
Enclosures
C.c.: Ronald L. WilliamslPllC ron(dwilliamsbradbury.com (C)
Brad Mullins/PIIC brmullins@mwanalytics.com
Jim Duke/PIIC i duke(didahoan.com
Kyle Williams/PtrC williamsk@b)rui.edu
Val Steiner/PIIC val. steiner@itafos. com
Randall C. Budge/IMonsanto rcb @rac inel aw. net (C)
Thomas J. Budge/I\rlonsanto tj b(E racinelaw. net (CXW)
Maurice Brubaker/]vlonsanto mbrubaker@consultbai.com (C)
Ben Otto/ICL botto(d.idahoconservation.ore (C)
Eric Olsen/IIPA elo(d,echohawk. com (C)
Dr. Lance Kaufrnar/IIPA lance@aeeisinsieht.com (C)
Anthony YankeVIIPA tony(@yankel.net (C)
Matthew Gerhart/Sierra Club matt. eerhart(d sierraclub. ors
Ana Boyd/S ierra Club ana. boyd(rD.sierraclub. ors
?lliiJflF{ i? AFI ll:2?
PAC-E-I8-08 / Rocky Mountain Power
January 17,2019
IPUC 3"1 Set Data Request l3
IPUC Data Request 13
According to Exhibit No 7, page 1, in Timothy Hemstreet testimony, Viva
Naughton is exempt from FERC License. Please explain what makes Viva
Naughton exempt.
Response to IPUC Data Request 13
Viva Naughton was exempted from licensing requirements as contained in Part I
of the Federal Power Act because it met the definition of a small hydroelectric
project of five megawatts (MW) or less. Please refer to Attachment IPUC 13,
which provides a copy of the Federal Energy Regulatory Commission's (FERC)
exemption for the Viva Naughton hydroelectric project, dated August 6,1982.
Recordholder: Todd Olson
Sponsor: Tim Hemstreet
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PAC-E-18-08 / Rocky Mountain Power
January 17,2019
IPUC 3'd Set Data Request 14
IPUC Data Request 14
On line 54 in the spreadsheet titled AWEC 0013 exhibit 2 CONF that has capital
additions identified on Cell 16l, which states "VivaNaughton FERC Compliance
CYIT-}0," please provide a listing of all projects and their projected costs to
achieve FERC compliance.
Response to IPUC Data Request 14
The capital addition "Viva Naughton FERC Compliance CYlT-20. is one multi-
year project. Although the project title may be interpreted as having many
embedded projects, it is only one project that will have capital spending over
several years. The project work includes removal of the fuseplug, installation of a
new emergency spillway and an erosion protection wall in the existing service
spillway, geotechnical investigations, design, permitting, construction, and quality
control. The projected cost is $4.8 million, placed in service in2020, as provided
with the Company's response to Monsanto Data Request 14, specifically
Attachment Monsanto I 4- 1.
Recordholder: Ryan Witbeck / Mike Mortensen
Sponsor: To Be Determined
IPUC Data Request 15
Please provide a schedule showing all capital projects planned for 2018, 2019,
and2020, including the planned cost for each the following plants:
(a) Naughton
(b) Dave Johnston
(c) Hunter
(d) Huntington
(e) Jim Bridger
(f) Wyodak
PacifiCorp objects to this request as overly broad and not reasonably calculated to
lead to the discovery of admissible evidence within the scope of this proceeding.
Without waiving these objections, the Company responds as follows:
Providing all capital projects less than $l million would be voluminous and
overly burdensome; thus, the attachment provides capital projects over $1 million
for the steam generation plants specified above.
Please refer to Confidential Attachment IPUC 15 for forecasted capital projects,
for the steam generation plants specified above, from October 2018 through
December 2020.
Confidential information is provided subject to the terms of the non-disclosure
agreement in this docket.
Recordholder: Tom Evans / Justus Evangelista
Sponsor: To Be Determined
PAC-E-I8-08 / Rocky Mountain Power
January I7,2019
IPUC 3d Set Data Request 15
Response to IPUC Data Request 15
PAC-E-I8-08 / Rocky Mountain Power
January 17,2019
IPUC 3'd Set Data Request 16
IPUC Data Request 16
Please reconcile the schedule above with the amounts in the Attachment
Monsanto l4-1, as provided in response to Monsanto's Production Request No.
14.
Response to IPUC Data Request 16
The Company assumes that the reference to "schedule above" is intended to be a
reference to IPUC Data Request 15. Based on the foregoing assumption, the
Company responds as follows:
Please refer to Confidential Attachment IPUC 16 for a reconciliation of schedules
provided with the Company's response to IPUC Data Request 15.
Confidential information is provided subject to the terms of the non-disclosure
agreement in this docket.
Recordholder: Kent Ipson
Sponsor: To be Determined
PAC-E-18-08 / Rocky Mountain Power
January 17,2019
IPUC 3'd Set Data Request l7
IPUC Data Request 17
Please update the 2018 capital additions and retirements as provided in response
to Monsanto's Production Request No. 14 with actual amounts.
Response to IPUC Data Request 17
Due to the timing of this request, the Company's actual results for capital
additions and retirements as of December 3 I , 201 8 is not possible at this time.
The Company will supplement this response in early March 2019, after
PacifiCorp's December 31,2018, Securities Exchange Commission (SEC) Form
l0-K has been filed with the SEC.
Recordholder: Justus Evangelista/Kent lpson
Sponsor: To be Determined
PAC-E-I8-08 / Rocky Mountain Power
January 17,2019
IPUC 3'd Set Data Request 18
IPUC Data Request 18
Please provide the Ownership and Operating Agreements for each of the coal
units not fully owned by the Company.
Response to IPUC Data Request 18
Please refer to Confidential Attachment IPUC 18 for the respective joint-owned
power plants ownership and operations agreements.
Confidential information is provided subject to the terms of the non-disclosure
agreement in this docket.
Recordholder: Megan Withroder
Sponsor: Chad Teply
PAC-E-18-08 / Rocky Mountain Power
January 17,2019
IPUC 3'd Set Data Request 19
IPUC Data Request 19
For each of the coal units referenced in Request No. 18, please provide a detailed
explanation by unit of any contractual limitations the Company has for shortening
the operating life of the unit to match the depreciation lives provided in the
Company's filing.
Response to IPUC Data Request 19
PacifiCorp objects to this data request as the request asks for legal analysis of the
Company's contractual obligations which are dictated by individual plant
definitive agreements. These definitive agreements are often ambiguous or silent
on precise issues related to operating responsibilities or decisions, thus needing
legal interpretation of the Company's contractual obligations and liabilities.
Recordholder: Megan Withroder
Sponsor: Chad Teply
PAC-E-I8-08 / Rocky Mountain Power
January 17,2019
IPUC 3'd Set Data Request 20
IPUC Data Request 20
Please provide all analyses conducted by PacifiCorp that supports the proposed
sequence of depreciation end-dates: Cholla Unit 4 and Craig Unit I in2025, Craig
Untt2 in2026, Colstrip Units 3 and 4 in 2027, and Jim Bridger Unit 1 in2028.
Please explain to what extent this date sequence is based on the age of plants,
PVRR, reliability, operating agreements, or other factors?
Response to IPUC Data Request 20
Cholla Unit 4: Per testimony from company witness, Chad A. Teply, PacifiCorp
is recommending to accelerate the depreciable life for Cholla Unit 4 from2042 to
2025 to align with the unit's approved Regional Haze Rule compliance
obligations. The United States (U.S.) Environmental Protection Agency (EPA)
approved the Arizona State Implementation Plan (SIP) incorporating an
alternative Regional Haze compliance approach that avoids selective catalytic
reduction (SCR) installation by retiring the coal unit by the end of April 2025,
with the option of natural gas conversion by end of July 2025. PacifiCorp
arralyzed various Regional Haze compliance alternatives for Cholla Unit 4 as part
of the 2015 Integlated Resource Plan (IRP), specifically Confidential Volume III,
to pages 28 through 45. A redacted version of the 2015 IRP, specifically
Confidential Volume III can be accessed by utilizing the following website link:
http://www.pacificorp.com/content/dam/pacificorp/doc/Enerey_Sources/Inteqrate
d Resource Plan/2015 20l5IRP-Vol3-C oalAnalvsis-
REDACTED.pdf
By 2025, Cholla Unit 4 will be 44 years old. PacifiCorp owns 100 percent of
Cholla Unit 4 and shares common facilities that support non-owned units at the
Cholla plant with Arizona Public Service Company (APS). APS is the plant
operator. The Cholla power plant is interconnected to APS' transmission system
and APS maintains responsibility for transmission reliability on that system.
Craie Unit 1: PacifiCorp is recommending acceleration of the depreciable life for
Craig Unit I from2034 to 2025 to align with the unit's approved Regional Haze
Rule compliance timeline as per Mr. Teply's testimony. The U.S. EPA approved
the Colorado SIP incorporating an alternative RegionalHaze compliance
approach that avoids SCR installation by retiring the coal unit by the end of
December 2025,withthe option of natural gas conversion. Craig Unit 1 will be 45
years old in2025. PacifiCorp's20l7IRP and 2017IRP Update preferred
portfolios assume Craig Unit 1 retires at the end of 2025. Further discussion of the
2017 IRP and20l7 IRP Update preferred portfolios can be accessed by utilizing
the following website link to PacifiCorp's 2017 IRP and 2017 IRP Update:
PAC-E-I8-08 / Rocky Mountain Power
January 17,2019
IPUC 3'd Set Data Request 20
http://www.pacifi corp.com/content/dam/pacificorp/doc/Enerev Sources/Inteerate,{ p-.^,.-^- pl.-/1nr'7 rDDtlnl7 IPP Vnhrmcl TPP E'inql ndf
and
http : //www.pac i fi corp. com/contenVdam/pacifi corp/doc/Ener gy_Sources/Inte grate
d Resource_Plar/20 I 7%20IRP%20Update/20 I 7_IRP_Update.pdf
Crais Unit 2: Per Mr. Teply's testimony, PacifiCorp's recommendation to
accelerate the depreciable life for Craig Unit 2 from 2034 to 2026 is to facilitate
least-cost, least-risk analysis, decision making and planning as Craig Unit I
approaches retirement in2025. The unit will be 47 years old in 2026.PacifiCorp's
previously filed [RP's have not included analysis of a Craig Unit22026
retirement date. That analysis is being performed as part of the 2019 IRP process
that is currently in-progress.
Colstrip Unit 3 and Colstrio Unit 4: In the same light as Craig Untt2, to facilitate
least-cost, least-risk analysis, decision making and planning, PacifiCorp's
recommendation is to accelerate the depreciable life of Colstrip Unit 3 and
Colstrip Unit 4. Puget Sound Energy (PSE), a25 percent owner has settlement
agreements in place with regulators to accelerate depreciable life of the units to
2027. Avista, joint owner that holds 15 percent ownership is currently in
settlement negotiations with regulators to do the same. PacifiCorp's
understanding is that stakeholders in Colstrip Unit 1 and Colstrip Untt2, which
share common facilities with Colstrip Unit 3 and Colstrip Unit 4, have agreed to
retire those units in 2022.Retirement of Colstrip Unit 1 and Colstrip Urrtt2 could
put upward pressure on cofirmon costs sharing when only Colship Unit 3 and
Colstrip Unit 4 remain operating. Colstrip Unit 3 and Colstrip Unit 4 will be 43
years old and 4 I years old, respectively , n 2027 . PacifiCorp's previously filed
IRP's have not included analysis of a Colstrip Unit 3 and Colstrip Unit 4 2027
retirement date. That analysis is being performed as part of the 2019 IRP process
that is currently in-progress.
Jim Brideer Unit l: PacifiCorp's2017 IRP and 2017 IRP Update preferred
portfolios analyzed the economics of Jim Bridger Unit I assuming a retirement at
the end of 2028 in lieu of SCR implementation by December 2022 and continued
operation through the units currently approved depreciable life of 2037. The 2028
retirement scenario economics demonstrate customer benefits when compared to
the SCR implementation scenario. As such, PacifiCorp is recommending to align
the depreciation of Jim Bridger Unit I to the 2017 IRP preferred portfolio. The
recommendation is to accelerate Jim Bridger Unit l's depreciable life from2037
to 2028. The discussion of the 2028 early retirement analysis in-lieu of SCR
implementation in 2022 is reflected in pages 73 through 75 of PacifiCorp's 2017
IRP Update and can be accessed by utilizing the following website link:
PAC-E-I8-08 / Rocky Mountain Power
January 17,2019
IPUC 3'd Set Data Request 20
http://www.pacificom.com/contenVdam/pacificorp/doc/Energ],_Sources/lnteerate
d_Resource_Plan/20 I 7%20IRP%20Update/20 I 7_IRP-Update.pdf
The discussion of the 2017 IRP preferred portfolio assumptions that assume Jim
Bridger retires in2028 inJieu of SCR can be accessed by utilizing the following
website link:
http://www.pacificorp.com/contenVdam/pacificorp/doc/Energ)r_Sources/Inteerate
d_Resource Plan/2 0 I 7_IRP/2 0 I 7_IRP_VolumeI_IRP_Final.pdf
Jim Bridger Unit 1 will be 54 years old by 2028.
Recordholder: Irene Heng / Shay LaBray
Sponsor: Chad Teply / Rick Link