20210809PAC to Staff 50-110-Redacted.pdf

ROCKY MOUNTAIN
POWER
A OtVtStON OF PACTFTCORP ,,t;1 j,ili, --3 F.H l+: 39 1407 W North Temple, Suite 330
Salt Lake City, Utah 84116
.-. ,\Jil
August 9,2021
Jan Noriyuki
Idaho Public Utilities Commission
472W. Washington
Boise, ID 83702-5918
i an. norivuki@tr''uc. idaho. eov (C)
RE ID PAC-E-21.07
IPUC Set 3 (50-110)
Please find enclosed Rocky Mountain Power's Responses to IPUC 3'd Set Data Requests 50, 53-
55, 59-60, 65,68-69,72,74,76, and 82. The remaining response will be provided under
separate cover. Provided via e-mail are the non-confidential Attachments and provided via
encryption and BOX are the Confidential Attachments and Confidential Responses. 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 subsequentNon-Disclosure Agreement (NDA)
executed in this proceeding.
If you have any questions, please feel free to call me at [phone].
Sincerely,
--Jsl-J. Ted Weston
Manager, Regulation
Enclosures
C.c.: Ronald L. Williams/PIIC [e-mail]
Bradley G. Mullins/PIIC [e-mail]
Adam Gardner/PIIC [e-mail] (W)
Kyle Williams/PIIC [e-mail] (W)
Val Steiner/PIIC [e-mail] (W)
Eric L. OlsenflIPA [e-mail] (C)
Anthony Yankel/IIPA tonv @vankel.net (C)
Randall C. Budge/B ayer randv @rac ineolson. com (C)
Thomas J. Budge/Bayer tj @.rac ineol son. com (W)(C)
Brian C. Collins/Bayer bco I I ins(D.consul tbai. com (\D(C)
Maurice BrubakeriB ayer mbrubaker@,c onsu ltba i. c om (C )
Kevin Higgins/Bayer khiqsins@enerey strat. com (C)
Lance Kautnan/Bayer [e-mail] (C)
James R. SmithlBayer jim. r. smith@icloud. com (C)
Brad Purdy [e-mail] (C)
Ben Otto/ICL [e-mail] (C)
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 50
IPUC Data Request 50
CONFIDENTIAL REQIIEST - Following up on Production Request No. 3,
please provide a description of the services rendered, copies of invoices, and
status of any ongoing litigation involved for the following events.
Confidential Response to IPUC Data Request 50
The Company objects to this request to the extent the information is protected by
the attorney-client privilege. Subject to and without waiving this objection, the
Company provides the following information:
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 50
Confidential information is provided subject to protection under IDAPA
31.01.01 .067 and31.01.01.233, 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:Emily Wegener
Steve McDougalSponsor:
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 53
IPUC Data Request 53
Does the AIP amount stated on page 4.2.2 nchtde the Incentive Payment and
Long Term Incentive Plan (LTIP) shown on the response to Production Request
No. 24? If not please state where the Incentive Payments and LTIP are included
in the rate case.
Response to IPUC Data Request 53
Officer annual incentive payments, part of total compensation, are included in
Exhibit No. 40 on page 4.2.5. Long-term incentive plan (LTIP) is recorded
below-the-line and not included in the revenue requirement of this general rate
case (GRC) proceeding.
Recordholder: Nick Highsmith
Sponsor:Steve McDougal
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 54
IPUC Data Request 54
Please include the amount of AIP available (potential AIP) and the annual
amounts awarded for 2018 through 2020.
Response to IPUC Data Request 54
Please refer to table below for a summary of annual incentive plan (AIP)
budgeted and awarded for 2018 through 2020:
Calendar Year Potential AIP Actual AIP
cY 2018 $25.783.851
cY 2019 I s30.010.s 17
cY 2020 s22.968.7t6
Confidential information is provided subject to protection under IDAPA
31.01.01 .067 afi 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:Leslie Chase
Sponsor Steve McDougal
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 55
IPUC Data Request 55
Please provide the Company policy manual and categories for the AIP. Please
include the annual amounts awarded for each category for 2018 through 2020,
Response to IPUC Data Request 55
A11full-time and part-time non-represented employees, in exempt job grades
higher than 14 are eligible to participate in the annual incentive plan (AIP). The
employee must have been in an incentive-eligible job prior to October I of the
plan year to qualifu.
Employees who are employed for less than the plan term due to retirement (as
defined by the Company) or disability will be considered eligible and may receive
a pro-rated award at the discretion of management.
Employees who are on a qualified leave during the plan term will be eligible for
participation in the plan.
The Company does not have a breakout of AIP by category. Please refer to the
Company's response to IPUC Data Request 54 for the amounts.
Recordholder:Shelley Zoller
Steve McDougalSponsor:
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 59
IPUC Data Request 59
Please provide the total costs included in the case for the Green House Gas
(GHG) compliance as well as the amounts allocated to Idaho.
Response to IPUC Data Request 59
The greenhouse gas (GHG) costs or GHG revenues included in the test period in
this general rate case (GRC) are related to PacifiCorp's participation in the
California Independent System Operator's (CAISO) energy imbalance market
(EIIO. The Company does not forecast GHG costs and GHG benefits
independently of one another; rather, the Company uses historical GHG revenues
net of costs (that is, net benefits) to forecast expected future GHG benefits. Those
calculations are provided in Confidential Attachment IPUC 59.
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:Lori Oathes / Justin Waterman
Sponsor:Mike Wilding
PAC-E-2147 / Rocky Mormtain Power
August 9,2421
IPUC DataRequest 60
IPUC Date Requost 60
Please provide the total GHG revenues the Company has included in the case and
the amount alloca.td to Idaho.
Responso to IPUC Deta Rcquest 60
Please refer to the Company's response to IPUC Data Request 59, specifically
Confidential Attachment IPUC 59.
Recordholder:Lori Oathes / Justin Waterman
Sponsor:Mike Wilding
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 65
IPUC Data Request 65
Please provide the invoices for the credit facility expense as provided for on
Exhibit No. 40 page 4.1 I .1. Please also include the month end balance of each
credit facility for year ending 2020.
Response to IPUC Data Request 65
Please refer to Confidential Attachment IPUC 65-l which provides copies of the
invoices for the quarterly bank credit facility commitnent fees paid during 2020,
as well as the annual advance admin agent bank fees paid during 2020 for the two
PacifiCorp revolving credit facilities in effect during the year ended 2020.
In addition to the quarterly and annual period fee expenses accrued n2020,
PacifiCorp also incurred upfront bank commitrnent and arrangement fees at the
inception of these two credit agreements in 2018, as well as annual extension fees
paid in 2019. These deferred expenses amortize over the remaining terms of the
agreements, a portion of which was recognized as expense n2020 as summarized
in Confidential Attachment IPUC 65-2, which also provides invoice and
amortization schedule support for these defened costs.
Please refer to Confidential Afachment IPUC 65-3 which provides the month-end
available balances for each of the two $600 million credit facilities in effect for
the year ended 2020.In addition, in reporting available period end net liquidity in
the Securities and Exchange Commission (SEC) l0-Q / 10-K quarterly filings,
PacifiCorp further reduces the total available period end commitnent balances for
two additional items:
(1) the back-stop liquidity provided in support of PacifiCorp's commercial paper
borrowing progftlm. PacifiCorp had a maximum daily commercial paper
borrowings outstanding amount of $152 million for the year ended 2020, and
(2) the liquidity support provided by the credit facilities in the remarketing of
PacifiCorp's outstanding unenhanced variable rate Pollution Control Revenue
Bonds (PCRB) - a total outstanding balance which ranged between $218
million and $256 million during the year ended 2020. The remarketed variable
rate PCRBs have historically been PacifiCorp's lowest cost form of long-term
debt.
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.
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 65
Recordholder: Kristi Olson lMattFechner
Sponsor:Steve McDougal
PAC-E-21-07 / Rocky Mountain Power
August 5,2027
IPUC Data Request 68
IPUC Data Request 68
Please explain why the accumulated depreciation reduces every month for the
Trapper Mine as shown on ExhibitNo. 40 page 8.2.1.
Response to IPUC Data Request 68
Due to a formula error, accumulated depreciation was not properly calculated in
Exhibit No, 40 page 8.2. 1.
Please refer to Attachment IPUC 74 which provides an updated calculation for
accumulated depreciation as well as more up-to-date acfual plant balances. The
Company will include this updated calculation in its rebuttal testimony.
Recordholder:Aaron Rose
Sponsor:Steven McDougal
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 69
IPUC Data Request 69
Please explain the reasoa that the inventory is increasing each month for the
Trapper Mine as shoum on ExhibitNo. 40 page 8.2.1.
Response to IPUC Data Request 69
The forecast provided by the Trapper Mine operator reflects a $6 million
inventory balance at the end of 2021, so the rnonthly 2021 values are fiended to
arrive at that amormt by the end of 2021.
Recordholder:Dauiel Moody/ Ktuk Nigro
Steven McDougalSponsor:
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 72
IPUC Data RequestT2
Please provide the rationale and any supporting documentation for increasing the
fuel stock on hand for the Naughton power plant shown on Exhibit No. 40 page
8.6.1.
Response to IPUC Data RequestT2
Recordholder:Dan Moody / Kirk Nigro
Steve McDougalSponsor:
PAC-E41-07 / Rocky Mountain Power
August 9,2021
IPUC DataRequest 74
IPUC Data RequestT4
Please update Adjustuent Nos. 8.2 (Trapper Mine) and 8.3 Qim Bridger) to
actuals as those months become available.
Response to IPUC Deta RequestT4
Please refer to Attachment 74 which provides updated versirons of Adjustnrent 8.2
(Trapper Mine), aud Adjus&ent 8.3 (Jim Bridger).
Recordholder: Justin Waterman / Dan Moody
Sponsor:Steve McDougal
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 76
IPUC Data Request 76
Please provide the rationale for continuing to hold coal in the Rock Garden as
provided on Exhibit No. 40 page 8.6.1.
Response to IPUC Data Request 76
The fuel inventory held at the Rock Garden represents a "safety" coal reserve
stockpile. This safety pile exists to mitigate ongoing risks that are inherent in
underground mining operations used by the existing coal mining companies in
Utah that provide coal to both the Hunter and Huntington power plants. In
addition to the underground mining risks, there are financial risks associated with
the coal companies as well. In recent years a significant number of Utah coal
companies have filed for bankruptcy. The Rock Garden "safeq/" pile provides
additional security of supply against some of these unknown risks.
Recordholder: Dan Moody / Kirk Nigro
Sponsor:Steve McDougal
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 82
IPUC Data Request 82
Regarding the Customer Relationship Management (CRM) system upgrade,
please provide the following information:
(a) Project details - scope, budget and schedule.
(b) Phase completion dates and added functionality;
(c) Services provided and costs associated with purchased services; and
(d) Breakout of O&M expenses
Response to IPUC Data Request 82
(a) Project Details - scope, budget, and schedule.
Scope
Upgrade, fully re-design and re-write the existing end-of-life call center GTx system.
Provide increased focus on Customer Relationship Management (CRM). Benefits for
the upgraded system include effrcient customer call handling with enhanced UI and
process flows, customer-account or site-service centric dashboards, integrated soft-
phones, reduced agent training with a more intuitive look and feel, context sensitive
knowledge base for more informed agents, work queue/case management, outbound
correspondence push notifications, and email management. The upgrade leverages
existing back-office systems (work queue, correspondence, IVR, Telecom integration
for call handling) which are fully functional.
The new CRM system, Customer Experience System (CES), is based on Verint CRM
products: Engagement Management (EM) and Knowledge Management (KM).
CES/EM consists of nine (9) redesigned processes:
1 Agent Setup and Wrap Up
2. Manual Search
3. Inbound Pop (automated search)4. Manage Customer Data
5. Customer-Account Dashboard
6. Site-Service Dashboard
7. Connect
8. Disconnect9. Reconnect
The integrated CES/EM processes are either Customer-Account, or Site-Service
based. Once agents are logged in, the Manual Search or Inbound Pop processes
are used to identifu and verifr customers. Once identified and verified, agents
provide service to customers from either the Customer-Account Dashboard
process or the Site-Service Doshboard process. Customer account-based requests
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 82
(use cases) initiate from the Customer-Account Dashboord. Site service-based
requests (use cases) initiate from the Site-Service Dashboard All CES/EM
processes and UI forms are also integrated with the CESA(M application,
providing context sensitive data panels for agents to review process and state
regulatory information as they navigate thru the CES/EM system, in response to
customer requests.
CES/KM, Knowledge Management is also a stand-alone application and contains
the following stand-alone functionality :
o Content Authoring and Publishing
o Generalknowledge
o Process information
o State regulations
o Script and information text
Budget
Original APR: $9,120,263
Approved PCN Amount: $9,820,263 - revised total project cost.
Schedule
Kick-off Proj ect: 12 I I 5 l20l 8
Phase 1 Implementation: 1211812020
o Back-Office Work - no customer on the phone
Phase 2 Implementation: 312612021
o Defect fixes, small enhancements based on usabilityo Back-Office, Inbound Calls (customer on the phone), Work Queue
Phase 3 Implementation: 711012021o Defect fixes, small enhancements based on increased usability
o Correspondence Batch
Close Proj e ct: 8 13 1 I 2021
Note: Call center agents have been cutoverfi'om GTx to CES in weeHy increments,
after agents are trained in the CES Training environment. The formal cutover
began after the Phase 2 implementation. GTx and CES systems both utilize the
same back-end CN system and data repository. This architecture provides the
ability for the systems to co-exist and facilitated an incrementol transition fi"om
GTx to CES which eliminated the risk of one large transition between GTx and
CES.
(b) Phase completion dates and added functionality
Added Functionality
New functionality includes improvements to process flows, agent usability, centralized
dashboards with the ability to tab between functional areas while retaining the
PAC-E-21-07 / Rocky Mountain Power
August 9,2021
IPUC Data Request 82
customer account context, integrated soft-phones, and integrated knowledge. The CES
system was also designed to provide "multi-perspective" functionality which provides
the flexibility to service customers by navigating between multiple customer accounts
as the customer requests account information and/or updates, without losing work or
having to complete transactions before switching customer accounts.
(c) Services provided and costs associated with purchased services;
Services
Verint professional services were utilized during this project for development,
configuration, and product support.
Total cost of services to date: $3,241,071
(d) Breakout of O&M expenses.
O& M Expenses
Licenses: S479,580.56
OMAG: $44,879.39
Recordholder:John Webb / Daniel Cupparo
Steve McDougalSponsor: