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HomeMy WebLinkAbout20210812PAC to Bayer 63-80.pdfROCKY MOUNTAIN FIOWER 1407 W North Temple, Suite 330 Salt Lake City, Utah 84116 August 12,2021 Randall C. Budge/Bayer randy (@racineolson. com (C) Thomas J. Budge/Bayer ti @racineolson. com (W)(C) Brian C. Collins/Bayer bcollins@consultbai. com fi\D(C) Maurice Brubaker/Bayer mbmbaker@consultbai.com (C) Kevin Higgins/Bayer khiseins@enereystrat.com (C) Lance Kaufman/Bayer lance@aegisinsi eht. com (C) James R. Smith/Bayer j im. r. smi th@ic loud. com (C) Mike Veile/Bayer m ike. vei le@bayer.com Courtney Higgins/Bayer ch i s s i ns @energy strat. com Milli Picharo [Bay u m pi ch ardo @enersy strat.c om Neal Townsend/Bayer ntownsend@energvstrat.com RE ID PAC.E.2I-07 Bayer Set 5ft (63-80) Please find enclosed Rocky Mountain Power's Responses to Bayer 5ft Set Data Request 63-70, 72, and 75-80. The remaining responses will be provided under separate cover. Also provided are Attachments Bayer 76,77, and 80. Provided via encryption are Confidential Attachments Bayer 68,69,70,72,78, and 79. 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 (801)220-2963. Sincerely, -Jsl-J. Ted Weston Manager, Regulation Enclosures C.c.: Jan Noriyuki/IPUC ian.norivuki@puc.idaho.eov (C) Ronald L. Williams/PIIC ron@williamsbradburv. com Bradley G. Mullins/PIIC brmull ins@mwanalvtic s. com Adam GardnerlPIIC AGardner@idahoan.com (W) Kyle Williams/PIIC williamsk@bvui.edu (W) Val Steiner/PIIC val.steiner@itafos.com (W) Eric L. Olsen/IIPA elo@echohawk.com (C) Anthony Yankel/IIPA tonv@vankel.net (C) Ben Ouo/ICL botto@idahoconservation.orq (C) Ronald L. Williams/PIIC ron@rruilliamsbradburv.com Bradley G. Mullins/PIIC brmullins@mwanalvtics.com Adam Gardner/PlC AGardner@idahoan.com (W) Kyle Williaurs/PtrC williamsk@bvui. edu (W) Val SteinerlPIIC val. steiner@ itafos. com (W) Eric L. Olsen/IIPA elo@echohawk.com (C) Anthony Yankel/IPA tonv@vankel.net (C) Brad Purdy bmpurdy@hotmail.com (C) PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 63 Bayer Data Request 63 Test Period. Please confirm that the test period approved in RMP's most recent general rate cases in Utah and Wyoming utilized a2021test period with a l3- month average rate base. If RMP disagrees, please explain in detail the basis for the disagreement. Response to Bayer Data Request 63 Confirmed. The test period in the Company's Utah general rate case (GRC) and Wyoming GRC reflected a2021test period using a 13-month average rate base and a requested rate effective date of January 1,2021. Recordholder:Nick Highsmith Sponsor:Steve McDougal PAC-E-2I-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 64 Bayer Data Request 64 Test period. Please prepare and provide a complete set of Idaho revenue requirement models, adjustnents, and work papers, comparable in all respects to RMP's as-filed models/work papers used to produce RMP witress Steven R. McDougal's Exhibit No. 40, but that reflects a 13-month average rate base amount for 2021. In preparing these revenue requirement models, please do not reflect any annualizations for any adjustrnents with changes occurring during the 2021 calendar year, including any post-2020 capital additions. Please provide the models/work papers in Excel format with formulas intact. Response to Bayer Data Request 64 PacifiCorp objects to this request as overly burdensome and requiring the creation of a new analysis that is beyond the scope of discovery in this proceeding. Notwithstanding the foregoing objection, the Company responds as follows: The Company has not performed the requested calculation and to do so would require gathering new forecasts and projections. The test period in this general rate case (GRC) has been prepared in a manner that is consistent with the Company's prior Idaho general rate case proceedings, which the Idaho Commission has approved. Notably, the use of an end-of-period calendar year 2021 testperiod ensures that costs associated with capital investrnent is used in useful and properly aligned with customer rates beginning with the January l, 2022 rate effective date proposed in this proceeding. Recordholder: Nick Highsmith Sponsor Steve McDougal PAC-E-2I-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 65 Bayer Data Request 65 Accum ulated Depreciation/Am o rtlzation Reserve. I s RMP adj usting the accumulated depreciation/amortization reserve for existing plant in the base period to reflect year-end 202L balances? If not, please explain why RMP didn't reflect year-end 2021balances and identiff the time period RMP is proposing for this reserve balance in its filing. If so, please provide a workpaper in Excel format that rolls forward the year-end2020 reserve balances to year-end 2021 balances and the location within RMP's adjustments where each of the roll forward adjustments are located. Response to Bayer Data Request 65 The Company is not walking all the depreciationlamortization reserve balances forward to year-end 202l.The Company did not walk all the reserve balances to 2021 as the Company has not included all202l capital additions in this general rate case (GRC). The Company did not include capital additions less than $5 million in the GRC consistent with prior GRC filings. If the Company included all of the capital additions and associated depreciation expense, it would be appropriate to adjust the reserve amounts. The base period reserve balances are year-end 2020 andthe Company is adjusting the reserve balance for the major plant additions being included in the filing in Adjustrnent 6.2. The Company also adjusted the reserve balance in the following adjustments: Nodal Pricing (No. 5.2), Hydro Decommissioning (No. 6.3), New Depreciation Study (No. 6.5), Klamath Hydroelectric Settlement Agreement (No. 8.10), and the New Wind and Repowering Capital Additions Adjustrnent (No. 8.15). Recordholder Laura Miller Sponsor:Steven McDougal PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 66 Bayer Data Request 66 Adjustment 8.15 - New Wind and Repowering Capital Addition. In the Confidential 8.15 exhibit file, the values on p. 8.15.1 appear to show the calendar year 2020 gross plant in service capital additions for each resource. Please confirm that RMP's proposed depreciation expense adjustrnent is intended to derive an annualized depreciation expense at the 2013 depreciation rates for each resource. In addition, please explain why RMP did not also reflect the incremental depreciation expense in accumulated depreciation. Response to Bayer Data Request 66 Confirmed for the projects listed on page 8.15.1. Adjusftnent 8.15 did annualize the depreciation expense for the projects that went into service n2020 shown on page 8. 1 5. I . The capital projects that will go into service n 2021 shown on page 8.15.2 reflect the stipulated depreciation rate. Adjusfrnent 6.5 New Depreciation Study incorporates the stipulated depreciation rate for the 2020 projects listed on page 8.15.1. (See page 6.5.4) The Idaho general rate case (GRC) is based on a year-end rate base methodology with capital projects greater than $5 million. The Company did not reflect the additional reserve amounts in this adjustment because the Company did not include all capital additions consistent with prior Idaho GRC filings. Recordholder:Craig Larsen Steve McDougalSponsor: PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 67 Bayer Data Request 67 Adjustment 8.15 - New Wind and Repowering Capital Addition. In the Confidential 8.15 exhibit file, the values on p. 8.15.2 appear to show the calendar year 2021gross plant-in-service capital additions. Please confirm that RMP is reflecting a2021end-of-period plant in service balance for each project (in addition to the 2020 end of period balances). For each new or repowered wind project and related tansmission, please provide a work paper deriving the 13- month average balance for 2021for gross plant, accumulated depreciation, and accumulated defened income taxes. Please reconcile any differences with the rate base amounts included in RMP's filing. Response to Bayer Data Request 67 Adjustnent 8.15 includes the December 2021year end plant in service capital additions. The December 2020 year end plant in service capital additions are included in the base period and not this adjustnent. Please refer to the Companyos response to Bayer Data Request 64 regarding the calculation of a l3-month average for 2Al. Recordholder Craig Larsen Sponsor:Steve McDougal PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 68 Bayer Data Request 68 Adjustment 8.15 - New Wind and Repowering Capital Addition. For any new wind or repowered wind plant in which some portion of the plant has an in- service date during calendar year 2021(e.g. Pryor Mountain, TB F1ats, etc.), please provide a monthly breakdown of the capital additions for each phase of the plant addition. As part of this response, please include the pro forma monthly depreciation expense, accumulated depreciation, and accumulated deferred income taxes for each phase of each plant. If there is any difference from the amounts included in RMP's filing, please reconcile the difference with the requested amount in the filing. Response to Bayer Data Request 68 There are no separate phases for wind plants included in the Idaho general rate case (GRC). Please refer to Confidential Attachment Bayer 68. 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: Craig Larsen Sponsor:Steve McDougal PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 69 Bayer Data Request 69 Adjustment 8.15 - New Wind and Repowering Capital Addition. For any new wind or repowered wind plant in which some portion of the plant has an in- service date during calendar year 2021 (e.g. Pryor Mountain, TB Flats, etc.), please explain whether or not the O&M expense amounts shown on p. 8.15.3 are annualized amounts or amounts based upon the various in-service dates for the plant. As part of this response, please include the pro-forma202l monthly O&M expense for each phase of each plant. In addition, please describe the impact, if any, that the various 2021 in-service dates have on the requested O&M expense. Response to Bayer Data Request 69 The new wind or repowered plants that have an in-service date during calendar year 2021 are; Pryor Mountain operational date of March3l,202l for Vestas turbines, and February 5,2021for General Electric (GE) turbines; and TB Flats with operational dates of February 13,2021and July 26,2021. Foote Creek operational date of March24,202l. The amounts provided Confidential Exhibit No. 41, on page 8.15.3 are the annualized operations and maintenance (O&M) expenses. Please refer to Confidential Attachment Bayer 69 which provides the monthly details shown in Confidential Exhibit No. 41, on page 8.15.3, and the impact the in-service dates have on the requested O&M. The202l in-service dates resulted in delayed operational costs such as the long-term fixed service agreements, production lease payments, utility costs, avian monitoring, and other operations expenses. O&M costs are lower at Pryor Mountain by $247,546, TB Flats by $779,314, and Foote Creek by $54,054. The delayed in-service dates affect 2021 O&M only. 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: Gary Tawwater Sponsor Steve McDougal PAC-E'21-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 70 Bayer Data Request 70 Pryor Mountain. Please separately identiff each revenue requirement component (e.g., rate base, expense, PTCs, REC revenue) associated with Pryor Mountain plant (broken out for each phase of the plant) in the revenue requirement models on both a Total Company and Idaho jurisdictional basis. [n addition, please identifu the location within RMP's work papers where the amounts for each of these revenue requirement items are located. Using each of the identified Idaho amounts, please provide the revenue requirement for the Pryor Mountain plant separately for each phase included in the test period in Excel format with formulas intact. Response to Bayer Data Request 70 The Company assumes "associated with Pryor Mountain plant" is intended to mean the components related to the other production plant function. Based on the foregoing assumption, the Company responds as follows: There are no separate phases included in the Idaho general rate case (GRC) for the Pryor Mountain wind project. Please refer to Confidential Attachment Bayer 70. 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 - lnformation Exempt from Public Review, and further subject to the Non-Disclosure Agreement (NDA) executed in this proceeding. Recordholder: Craig Larsen Sponsor:Steve McDougal PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer Data RequestT2 Bayer Data RequestT2 TB Flats. Please separately identifu each revenue requirement component (e.g., rate base, expense, PTCs, REC revenue) associated with TB Flats plant (broken out for each phase of the plan0 in the revenue requirement models on both a Total Company and Idaho jurisdictional basis. In addition, please identiff the location within PacifiCorp's work papers where the amounts for each of these revenue requirement items are located. Using each of the identified Idaho amounts, please provide the revenue requirement for the Pryor Mountain plant separately for each phase included in the test period in Excel format with formulas intact. Response to Bayer Data Request72 The Company assumes "associated with TB Flats plant" is intended to mean the components related to the other production plant function. The Company further assumes that the reference to "Pryor Mountain" is in error, and that the reference was intended to be to the TB Flats wind projects. Based on the foregoing assumptions, the Company responds as follows: There are no separate phases included in the Idaho general rate case (GRC) for the TB Flats wind project. Please refer to Confidential AttachmentBayer 72. 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:Craig Larsen Steve McDougalSponsor: PAC-E-21-07 / Rocky Mountain Power August 12"2021 Bayer Data Request 75 Bayer Data Request 75 Repowered Wind Plants (excluding Foote Creek). For each ofthe 12 repowered wind facilities please provide, in Excel format, the Total Company and Idaho-allocated annual depreciation expense that was included in Idaho's elecfric rates in 2019. (That is, please provide the amount included in rates in 2019 as distinct from the amount the RMP may have booked n2019.) Please include the applicable depreciation rate(s) in deriving these amounts. Response to Bayer Data Request 75 The Company is unable to identifu the exact amount included lri,2019 rates as the last general rate case (GRC), Case No. PAC-E-I l-12, was a black box settlement with a two-year rate plan. Since that GRC, a $2 million base rate increase was also agreed to in Case No. PAC-E-I3-04. Recordholder:Laura Miller Sponsor:Steven McDougal PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 76 Bayer Data Request 76 Pryor Mountain. Please provide a copy of RMP's response to WIEC-VK-TR Data Request 3.13 and Attach WIEC-VK-TR 3.13-1 in Wyoming PSC Docket No. 20000-545-ET-18. Response to Bayer Data Request 76 Rocky Mountain Power objects to this request to the extent it seeks information that is stale information that was not used by the Company to analyze whether to move forward with the project" and thus, is unlikely to lead to the discovery of admissible evidence. Noturittrstanding the foregoing objection, the Company responds as follows: Please refer to Attachment Bayer 76. Recordholder:Dan Martinez I CraigEller Not applicableSponsor: PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer Data RequestTT Bayer Data RequestTT Pryor Mountain. Please provide a copy of RMP's response to WIEC Data Request 29.4 n Wyoming PSC DocketNo. 20000-578-ER-20. Response to Bayer Data RequestTT Rocky Mountain Power objects to this request to the extent it seeks information that is stale information that was not used by the Company to analyze whether to move forward with the project and, thus, is unlikely to lead to the discovery of admissible evidence. Notwithstanding the foregoing objection, the Company responds as follows: Please refer to Attachment Bayer 77. Recordholder:Dan Martinez I CraigEller Not applicableSponsor: PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 78 Bayer Data Request 78 Pryor Mountain. Please refer to lnes 295-297 inthe Direct Testimony of Michael Johnson in Wyoming PSC Docket No. 20000-505-EC-16, in which Mr. Johnson references avoided cost pricing that RMP sent EverPower on May 13, 2016. (a) Please provide a full copy of the communication in which the referenced avoided cost pricing was made. (b) Was avoided cost pricing provided after May 13,2016 to any party with an ownership interest in the wind resource that has become the Pryor Mountain Project? [f so, please provide a copy. Response to Bayer Data Request 78 Rocky Mountain Power objects to this request to the extent it seeks information that is stale information that was not used by the Company to analyze whether to move forward with the project, and, thus, is unlikely to lead to the discovery of admissible evidence. Notwithstanding the foregoing objection, the Company responds as follows: (a) Please refer to Confidential Attachment Bayer 78 (b) Please refer to Confidential Attachment Bayer 78 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 Paul Johnson Sponsor:To Be Determined PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer Data Request 79 Bayer Data Request 79 Craig Unit 2 SCR. Please provide a copy of the Company's independent assessment of the Craig Unrt2 SCR project performed in July 2013, as referenced in tvlr. Owen's Direct Testimony on page 5, lines 8-16. Did the Company perform any subsequent analysis? If yes, please provide such analyses. If not, please explain why the Company did not perform any subsequent analysis. Response to Bayer Data Request 79 Please refer to Confidential AttachmentBayer 79 No subsequent analysis was completed specific to a Craig Unit 2 analysis that involved the selective catalytic reduction (SCR) as the project started construction in 2013 with no further analysis warranted. 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:Mike Johanson Sponsor:James Owen PAC-E-21-07 / Rocky Mountain Power August 12,2021 Bayer DataRequest 80 Bayer Date Request 80 Crarg Unit 2 SCR. Please provide a copy of the Craig Participation Agrcement referenced in h[r. Owen's Direct Testimony on page 4, lines 6-12. Response to BayerDeta RequestS0 Please refer to Attochment Bayer 80. Recordholder:Mike Johanson Sponsor:James Owen