20210729PAC to Bayer 34.pdf

ROCKY MOUNTAIN
POWER
A DIVISION OF PACIFICORP
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July 29,2021
Randall C. Budge/Bayer randy @,racineolson. com (C)
Thomas J. BudgeiBayer ti @racineolson. com (WXC)
Brian C. Collins/Bayer [e-mail] (WXC)
Maurice Brubaker/B ayer mbnrbaker@consultba i. c om (C)
Kevin Higgins/Bayer [e-mail] (C)
Lance Kaufinan/B ayer lance (Oae s i sinsi eht. com (C)
James R. Smith/Bayer iim. r. [e-mail] (C)
Mike Veile lBayer m [e-mail]
Courfirey Higgins/Bayer [e-mail]
Milli Picharo/Bayer [e-mail]
Neal Townsend/Bayer [e-mail]
RE: ID PAC-E-21-07
Bayer Set 2od (34)
Please find enclosed Rocky Mountain Power's Response to Bayer 2nd Set Data Request 34.
Provided via BOX is Confidential Attachment Bayer 34. Confidential information is provided
subject to protection 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 the Non-Disclosure Agreement (NDA) executed in this proceeding.
If you have any questions, please feel free to call me at [phone]
Sincerely,
-/sl-J. Ted Weston
Manager, Regulation
Enclosures
C.c.: Jan Noriyuki/IPUC [e-mail] (C)
Ronald L. Williams/PIIC ron@,williarnsbradburv.com
Bradley G. Mullins/PIIC [e-mail]
Adam Gardner/PIIC AGardner@ idahoan. com (W)
Kyle Williams/PIIC [e-mail] (W)
Val Steiner/PIIC val. steiner(D. itafos. com (W)
Eric L. Olsen/IIPA [e-mail] (C)
Anthony Yankel/IIPA tonv@,vankel.net (C)
Ben Otto/ICL botto @)idahoconservation. ore (C)
1407 W North Temple, Suite 330
Salt Lake City, Utah 84116
PAC-E-21-07 / Rocky Mountain Power
hl/ry 29,2021
Bayer Data Request 34
Bayer Data Request 34
Regarding the work papers of Craig Eller and RMP's Response to Bayer Set l,
Request No. 13, there are two linked spreadsheets found in his confidential work
papers that have not been provided. These two linked spreadsheets are necessary
to understand the source and calculations used in Mr. Eller's Exhibit 36.
Specifically:
(a) Please provide the following linked spreadsheet used to calculate the
"Operating Reserve Values" shown in cells C5 through 09 on Exhibit 36,
page 3: "27 - ID - Bayer - I a - GRID AC Study CONF (OpRsv).xlsm".
Please provide all linked spreadsheets, if any, and macros used in this
requested Excel file.
(b) Please provide the following linked spreadsheet used to calculate theo'Economic Curtailment Values" and "SCCT Dispatch Margins" shown in
cells C5 through N8, as wells as cells C17 through O20, on Exhibit 36, page
4:'oBayer - SCCT EIM Value 2017 - 2020 Conf.xlsb". Please provide all
linked spreadsheets, if any, and macros used in this requested Excel file.
(c) Please provide a written description of the source for all underlying
assumptions in these linked spreadsheets, as well as a description of the
modeling and analysis used in the determination of all values on pages 3 and 4
of Exhibit 36.
Response to Bayer Data Request 34
The Company assumes that the reference to "Exhibit 36" is intended to be a
reference to confidential work paper "Confidential Exhibit No. 36 - Intemrptible
Product Value Update". Based on the foregoing assumption, the Company
responds as follows:
(a) Please refer to Confidential Attachment Bayer 34.
(b) Please refer to Confidential Attachment Bayer 34
(c) Operating Reserve Value - The operating reserve values identified in
Confidential Exhibit No. 36 were calculated in the Company's Generation and
Regulation Initiative Decision Tool (GRID), and represent the average value
of operating reserves by month, assuming a flat product (i.e. identical in all
hours). Two GRID studies were prepared to produce this value. The first
GRID sfudy reflects the Company's current owned resources and contracts,
along with future proxy resources identified in the Company's 20l9Integrated
Resource Plan (IRP). This first GRID study also excluded all of Bayer's
intemrptible load products. The second GRID study is identical to the first
PAC-E-21-07 / Rocky Mountain Power
July 29,2021
Bayer Data Request 34
except that it also reduces east side spinning reserve requirements by 100
megawatts (MW) in each hour. For both studies, GRID economically
dispatches the Company's portfolio to meet load and operating reserve
obligations. In the second GRID study, net power costs (NPC) are reduced
because up to 100 MW of capacity on resources that would otherwise have
been held back to meet operating reserve requirements can be used to serve
load or support wholesale sales, if it is economic to do so. If freed up
generators are more economic than what otherwise would have served load,
the reduction in cost represents the benefit from the operating reserve
capability. Similarly, if freed up generators support additional wholesale sales,
the difference between the fuel cost and the wholesale sales revenue
represents the benefit from the operating reserve capability.
Key GRID inputs include:
o 2019IRP preferred portfolio.o Market prices: March 31,2021Official Forward Price Curve (OFPC).o Load forecast: June 2020.
Economic Curtailment Value and Simple Cycle Combustion Turbine
(SCCT) Dispatch Margin - The economic curtailment value and SCCT
dispatch margin identified in Confidential Exhibit No. 36 were calculated
using historical energy imbalance market (EIM) prices.
In any interval in which market prices at the Bayer load point exceeded $250
per megawatt-hour ($A4Wh), the Economic Curtailment Value is calculated
as the difference between the greater of the l5-minute market prices (Real-
Time Pre-Dispatch or RTPD), and the five-minute market prices (Real-Time
Dispatch or RTD) less Bayer's retail energy charges. This represents the
potential value of resources that would be freed up as a result of Bayer's load
being intemrpted, less the retail revenue that the Company would no longer
receive for load that was intemrpted. The sum of the value in intervals where
EIM prices exceeded $2504{Wh is then converted to a value per kilowatt-
month (kW-month).
The SCCT dispatch margin represents the expected net revenue if the
Company were to acquire a SCCT and offer it into the EIM, and represents
the diflerence between the market prices during intervals when the SCCT
would be economic to generate and the SCCT operating costs. The fixed costs
and operating characteristics of the SCCT are from the Company's 2019IRP,
and reflect values for the first SCCT added in the 2019 IRP preferred
portfolio, which is a brownfield resource planned for the Company's
Naughton facility n 2026.
PAC-E-21-07 / Rocky Mountain Power
I:uJy 29,2021
Bayer Data Request 34
Lost Benefits of SCCT - If the Company acquired a SCCT and used it to
provide operating reserves, on a per-kilowatt (kW) basis, the savings are
expected to be equivalent to the value of operating reserves provided by
Bayer's operating reserves product, except that the expected value is reduced
for the assumed forced outage rate for the SCCT. This calculation is shown in
Confidential Exhibit No. 36, tab "Summary", cell D5.
If the Company acquired a SCCT and used it to provide operating reserves
and flexible dispatch in EIM, then on a per-kW basis, the savings are slightly
different from the value provided by Bayer's economic curtailment product.
The economic curtailment product provides operating reserves value from
maintaining short-notice dispatch capability and from deploying energy under
favorable market conditions. As with the operating reserve product described
above, the value of operating reserves from the SCCT are reduced based on its
forced outage rate. The value of economic energy dispatch from the SCCT
represents the margin between the SCCT operating costs (including start-up
and fuel expense), and the market price, in those intervals where the SCCT is
economic to dispatch. The combination of these elements is shown in
Confidential Exhibit No. 36, tab "Summary", cell Dl l. In contrast, the value
of the Bayer economic energy dispatch represents the margin between Bayer's
retail electricity rate and the market price, but only in those intervals where
market prices are in excess of a minimum level identified in the contract.
Confidential information is provided subject to protection 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 the Non-Disclosure Agreement (NDA) executed in this proceeding.
Recordholder:Dan MacNeil
Sponsor:Craig M. Eller