20200824PAC to Staff 1-8.pdf

1407 W North Temple, Suite 330 Salt Lake City, Utah 84116 August 24, 2020 Jan Noriyuki
Dayn Hardie
Idaho Public Utilities Commission 472 W. Washington Boise, ID 83702-5918 [e-mail] (C)
[e-mail]
RE: ID PAC-E-20-03
IPUC 1st Set Data Request (1-8) Please find enclosed Rocky Mountain Power’s Responses to IPUC Data Requests 3-4 and 6-8. The remaining responses will be provided separately. Also provided is Attachment IPUC 6-1.
Provided via encryption are Confidential Attachments IPUC 3, 4, 6-2, and 7. Confidential
information is provided subject to protected under IDAPA 31.01.01.067 and 31.01.01.233, the Idaho Public Utilities Commission’s Rules of Procedure No. 67 – Information Exempt from Public Review, and further subject to any subsequent Non-Disclosure Agreement (NDA) executed in this proceeding.

If you have any questions, please feel free to call me at [phone]. Sincerely,

____/s/____ J. Ted Weston Manager, Regulation
Enclosures
C.c.: Eric L. Olsen/IIPA [e-mail] Anthony Yankel/IIPA [e-mail]
RECEIVED
2020 August 24 PM 4:45
IDAHO PUBLIC
UTILITIES COMMISSION
PAC-E-20-03 / Rocky Mountain Power August 24, 2020
IPUC Data Request 3 IPUC Data Request 3 Please provide an actual-to-estimate project cost comparison for the Foote Creek I
re-powering wind project broken down by major cost category. For each cost category, please indicate the basis used to provide the estimate, and how the Company ensured that it was incurred at least cost. Please provide responses in Excel format with formulas intact and enabled.
Response to IPUC Data Request 3
The Foote Creek I project is still under construction, and actual final costs are not yet known. Please refer to Confidential Attachment IPUC 3 which provides the estimated costs of the Foote Creek I repowering project by major cost category consistent with the amounts contained in the project change appropriation request (APR) which was approved on July 24, 2019. Actual project costs by category
will not be known until after the project achieves commercial operation. Estimated amounts were derived by the project development team using best engineering judgment as informed by market conditions and experience with projects of similar scope. Where applicable, competitive bidding is used to ensure the project cost elements are obtained at least cost, consistent with the
Company’s procurement policy.
Confidential information is provided subject to protected under IDAPA 31.01.01.067 and 31.01.01.233 and further subject to any subsequent Non-Disclosure Agreement (NDA) executed in this proceeding.
Recordholder: Tim Hemstreet
Sponsor: To Be Determined
PAC-E-20-03 / Rocky Mountain Power August 24, 2020
IPUC Data Request 4 IPUC Data Request 4 Please provide an actual-to-estimate project cost comparison for the Pryor
Mountain wind project broken down by major cost categories. For each cost category, please indicate the basis used to provide the estimate, and how the Company ensured that it was incurred at least cost. Please provide responses in Excel format with formulas intact and enabled.
Response to IPUC Data Request 4
The Pryor Mountain project is still under construction, and actual final costs are not yet known. Please refer to Confidential Attachment IPUC 4 which provides the estimated cost by major cost category in the appropriation request (APR) which was approved June 24, 2019. Actual project costs by category will not be known until after the project achieves commercial operation. Estimated amounts
were derived by the project development team using best engineering judgment as informed by market conditions and experience with projects of similar scope. Where applicable, competitive bidding is used to ensure the project cost elements are obtained at least cost, consistent with the Company’s procurement policy.
Confidential information is provided subject to protected under IDAPA 31.01.01.067 and 31.01.01.233 and further subject to any subsequent Non-Disclosure Agreement (NDA) executed in this proceeding.
Recordholder: Bob Van Engelenhoven
Sponsor: To Be Determined
PAC-E-20-03 / Rocky Mountain Power August 24, 2020
IPUC Data Request 6 IPUC Data Request 6 Please provide any supporting documentation including any contracts for the
following amounts listed in Table I: (a) Gross EPIS. (b) Accumulated Depreciation.
(c) CWIP. (d) M&S.
(e) Liquidated Damages. (f) GE safe harbor lease termination payment. (g) Savings due to O&M Expense.
(h) Savings due to Depreciation Expense. Response to IPUC Data Request 6
Please refer to the following for the Company’s responses to subparts (a), (b), (c), (d), (g), and (h): Please refer to Attachment IPUC 6-1.

Please refer to the following for the Company’s responses to subparts (e) and (f): (e) Liquidated Damages – the requested information is considered highly confidential and commercially sensitive. The Company requests special
handling. Please contact Ted Weston on [phone] to make
arrangements for review. (f) GE safe harbor lease termination payment - please refer to Confidential Attachment IPUC 6-2 which provides a copy of the agreement between the
Arizona Public Service Company (APS) and General Electric Company (GE)
dated November 12, 1981. Confidential information is provided subject to protected under IDAPA 31.01.01.067 and 31.01.01.233, the Idaho Public Utilities Commission’s Rules of
Procedure No. 67 – Information Exempt from Public Review, and further subject
to any subsequent Non-Disclosure Agreement (NDA) executed in this proceeding.
PAC-E-20-03 / Rocky Mountain Power August 24, 2020
IPUC Data Request 6 Recordholder: Nicholas Highsmith
Sponsor: To Be Determined
PAC-E-20-03 / Rocky Mountain Power August 24, 2020
IPUC Data Request 7 IPUC Data Request 7 Please provide the methodology and process the Company used to estimate the
decommissioning costs. Please include any work papers used to estimate the decommissioning costs. Response to IPUC Data Request 7
Please refer to Confidential Attachment IPUC 7 which provides a copy of the Cholla Power Plant Unit 4 Decommissioning Study/Engineering Cost Estimate issued on October 18, 2018. This document provides a breakdown of the estimated decommissioning cost of Cholla Unit 4 into the component phases, and the considerations made to determine the necessary tasks that drive the cost
estimates. All decommissioning studies and engineering cost estimates are subject to updates, adjustments, and revisions. Furthermore, the PacifiCorp share of certain common costs has not been finalized. Confidential information is provided subject to protected under IDAPA
31.01.01.067 and 31.01.01.233, the Idaho Public Utilities Commission’s Rules of Procedure No. 67 – Information Exempt from Public Review, and further subject to any subsequent Non-Disclosure Agreement (NDA) executed in this proceeding.
Recordholder: Gavin Mangelson
Sponsor: To Be Determined
PAC-E-20-03 / Rocky Mountain Power August 24, 2020
IPUC Data Request 8 IPUC Data Request 8 In reference to Production Request No. 7, please provide a schedule showing the
estimated expense per year. Please include which major tasks will be performed in each year. Response to IPUC Data Request 8
The Company clarifies that the context of IPUC Data Request 7 is regarding the decommissioning of Cholla Unit 4. Based on the foregoing clarification, the Company responds as follows: It is anticipated that the costs of Phase II will be incurred between Q4 2020 and
the Q1 2021 / Q2 2021. It is anticipated that the costs of Phase III will be incurred in 2021. The remaining costs will be incurred when the entire plant is retired after the shutdowns of Cholla Unit 1 and Cholla Unit 3, (expected to run through 2025) and include 30 years of post-closure monitoring for the coal combustion residuals (CCR) units.
Recordholder: Gavin Mangelson
Sponsor: To Be Determined