20190603PAC to IIPA 1a OPUC 10.pdf

UM 1968 / PacifiCorp
May 30, 2019 OPUC Data Request 10 OPUC Data Request 10 a. Jim Bridger power Decom Cost (from the Study, see attach OPUC 6-2 1st Supp - Worksheet for Jim Bridger) is 5 times higher than what you have used in your Depreciation Study in the item of “Terminal Retirement Net Salvage (Decom cost), (attach OPUC 6-3 in Excel). Why?
b. I don’t see the Contingency factor (%) for the Decom project in the study. What was the Contingency % you used?
c. Confirm that your decommissioning costs, include the contingency %, are all included
into the depreciation study and get recovered through the depreciation as part of “terminal net salvage values”. Response to OPUC Data Request 10 a. Only the demolition and salvage values from the studies in Attachment OPUC 6-2 1st Supplemental were used in the preparation of Attachment OPUC 6-3. The demolition and salvage values from studies were adjusted for inflation and changes in the value
of scrap steel. The environmental costs in the studies in Attachment OPUC 6-2 1st Supplemental were not used in preparation of Attachment OPUC 6-3. PacifiCorp environmental cost estimates, including retirement obligations, pond and landfill closures, asbestos
removal, and environmental obligations, were used in the preparation of Attachment OPUC 6-3. Cell L269 in Attachment OPUC 6-3 shows the cost of retirement less returns from salvage.
b. A contractor’s line-item contingency for heavy equipment repair is included in the demolition costs on page 20 of the CB&I study in Attachment OPUC 6-2 1st Supplemental. No other contingencies were included.
c. No line-item contingencies were included in the studies used to support the depreciation study. As previously discussed, the studies inherently reflect a +/- 30 percent estimating accuracy, due to the estimating methodology applied.
Despite PacifiCorp's diligent efforts, certain information protected from disclosure by the attorney-client privilege or other applicable privileges or law may have been included in its responses to these data requests. PacifiCorp did not intend to waive any applicable privileges or rights by the inadvertent disclosure of protected information, and PacifiCorp reserves its right to request the return or destruction of any privileged or protected materials that may have been inadvertently disclosed. Please inform PacifiCorp immediately if you become aware of any inadvertently disclosed information.