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HomeMy WebLinkAbout20211013PAC to Staff 36-50-Redacted.pdfROCKY MOUNTAIN POWER iB-LC IIVtsO i::; CIT i 3 PH 5:0 | , J i,a ,i: ttj ii :., , ,i j::;1-.;1";r,.1,!1jf:lCil Salt Lake City, Utah 84116 October 13,2021 Jan Noriyuki Idatro Public Utilities Commission 472W. Washington Boise, ID 83702-5918 ian.norivuki@puc. idaho.sov (C) RE: ID PAC-E-21-16 IPUC Set 3 (36-50) Please furd enclosed Rocky Mountain Power's Responses to IPUC 3d Set Data Requests 36-50. Also provided is Attachment IPUC 37. Provided via encryption are Confidential Responses IPUC 48-50. Confidential information is provided subject to protection under TDAPA 31.01.01.067 and 31.01.01.233, ttre 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 PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC DataRequest 36 IPUC Data Request 36 In the Company's Wattsmart Battery progftm in Utah, the Company's website states, "batteries will not be controlled daily from November through February." Is this the Company's intent for the Wattsmart Battery program in ldaho as well? Please explain. Response to IPUC Data Request 36 At the beginning of the program, it is the Company's intent not to contol the batteries daily from November through February. As the Company gathers more experience with batteries, the confiol schedule will be modified to best meet the needs of customers and the Company. Recordholder: Shawn Grant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 37 IPUC Data Request 37 The Company's cost-effectiveness calculation is modeled using a 20-year measure life; however, the batteries are required to have a minimum of a l0-year life. Please explain the reasoning for modeling the battery measure life for 20- years. In the response, please provide supporting documents, workpapers, and/or research that supports a}D-year battery measure life. Please also indicate the battery type being modeled. Response to IPUC Data Request 37 To clariff, for batteries to be eligible for the program, batteries are required to have l0-year minimum warranty; not a minimum lO-year battery life. Battery technology is expected to last beyond the manufacturer's wananty. The program modeled Sonnen Core, Sonnen Eco, and Sonnen Ecolinx batteries. Please refer to Attachment IPUC 37 which provides technical specification sheets for these batteries. Recordholder:Shawn Grant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 38 IPUC Data Request 38 The Company's response to Production Request No. 26 (c) states "for select batteries, the current technology is suffrcient to meet the energy needs for advanced demand response." Please explain advanced demand response. How does advanced demand response differ from taditional demand response? Response to IPUC Data Request 3E Traditional demand response events are typically pre-scheduled day ahead or several hours in advance when system load is expected to peak. Generally, these events occur mid-afternoon when temperatures are high during summer months. The Wattsmart Battery Program is connected directly into the Company's Energy Management System (EMS) providing a flexible resource which is automatically dispatched real-time to respond to large grid events with frequency response. In addition, it can be utilized for contingency reserves, peak load management, and for daily storing of solar energy during ttre day for use during peak times in the evenings and mornings. Recordholder:Shawn Grant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 39 IPUC Data Request 39 In the website link provided to Staffin the Company's response to Production Request No. 6 (c), the Company's website states, "for batteries to be eligible for our program, they must meet the following requirements: ability to integrate with Rocky Mountain Power's Distributed Battery Grid Management System (DBGMS)." What are the requirements from the battery manufacturers to integrate their batteries into the Company's DBGMS? Response to IPUC Data Request 39 To integrate into the Company's Distributed Battery Grid Management System (DBGMS) and be eligible for participation, batteries must meet the following minimum requirements : Ability to be contolled remotely using a PC or MAC address; Ability to accept extemal control commands from the Company's DBGMS and conform to its Application Programming Interface (API) standards; Must support PacifiCorp Institute of Electical and Electronic Engineers (IEEE) 2030.5 protocol; Must meet Underwriters Laboratories (UL) safety certifications for UL 9540, 9540A, 1973, I 74 l -CRD PCS, and/or I 74 l -SA; Organization that designed and manufactured the battery system must be International Organization for Standardization (l SO) 900 I certifi ed ; Requires real-time data forecasting; and Requires real-time response (0-30 seconds). Requirements are listed on the Company's website and in the Battery Vendor Application form linked on the website: https://www.rockvmountainpower.net/savings-energv-choices/utah-wattsmart- battery-proq ram/batterv-man u factu rers. htm l Recordholder: Shawn Grant a a a a a Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 40 IPUC Data Request 40 Regarding the Company's response to Production Request No. 4, please describe the Company's process for determining whether events warrant minimizing Wattsmart Battery dispatch events. Please also describe any communication the Company would have with its customers in the Wattsmart Battery program during these events that are expected to cause system outages. Response to IPUC Data Request 40 The criteria to determine whether events warrant minimizing Wattsmart Battery dispatch events will be developed as the Company collects battery data and experience from program participants. Due to the real-time aspect of the program, the Company does not provide advance notification to customers for battery dispatch events. Recordholder:Shawn Grant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 4l IPUC Data Request 41 The Company's response to Production Request No. l7 states that the Company does not anticipate that battery adoption itself will lower volumetric sales and reduce fixed cost recovery. Page 9 of the Application states that at the outset of the Wattsmart Battery Program batteries will be dispatched to off-set customers' load as discussed in the Load Shaping section. Please confirm that, at the outset of the program, batteries will be dispatched for load shaping to offiset customer's peak load and will not lower the total load. Response to IPUC Data Request 4l Confirmed - batteries will be dispatched for load shaping to oftset customer's peak load and will not lower the total load. In addition, batteries will also be used for other grid needs, including but not limited to, frequency response, backup power, traditional demand response, contingency reserves, etc. Recordholder:Shawn Grant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 42 IPUC Data Request 42 The Company's response to Production Request No. l3 states that the Company "will have control over the dispatch decisions for when batteries are used to offset customer load based on current and future grid needs." Please answer the following questions. (a) Please explain what "dispatch decisions" mean. What kind of dispatch decisions specifically will the Company have controlover? (b) Between the Company and the customer, who will decide when the batteries will be charged and who will decide when the batteries will be discharged? (c) Does the Company plan to use the batteries during peak hours only? Can the batteries be used outside the peak hours? Please explain. (d) Will the customer be able to override any conftol for charging and discharging decisions done by the Company? Please explain. Response to IPUC Data Request 42 (a) Dispatch decision means when the batteries willbe activated. The Company will have control over when the battery is used to support customers' homes or the grid. (b) The Company will decide when the batteries will be charged or discharged, however the intent is for batteries to be charged regularly by excess customer solar generation. (c) The batteries are expected to be available and may be utilized 2417,365 days a yeat. (d) The current design of the program does not allow a customer to override control of their battery, except for the safety disconnect that can be used by the customer or fire deparhnent. Recordholder:Shawn Grant Sponsor:BillComeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 43 IPUC Data Request 43 The Company's response to Production Request No. I 4 (b) states that it will be more challenging to get customers with existing solar to participate in the program than customers without existing solar (due to solar and battery combination packages being a more attractive deal), thus requiring a lower incentive for customers who install solar on or after September 1,2021. Please answer the following: (a) Please provide an economic analysis or other evidence to illustrate why purchasing a battery separately is not as desirable. (b) Please explain how the additional $50/kW incentive for customers who install solar before September 1,2021, was determined and why the amount is sufficient. Response to IPUC Data Request 43 (a) Purchasing solar/battery combination or standalone battery generally is more than a financial economic decision. Each home and consumer are different, and the homeowner needs to determine if purchasing and installing a battery is the right purchase for their unique situation. Generally, it costs more to add a battery to existing solar than to install a battery and solar at the same time due to additional labor and equipment costs. (b) To clariff, the September I't date from the Company's Application was included when it was anticipated the program may be effective in October 2021. However, now that the program's effective date has been pushed to what will likely be the first quarter of 2022, the additional $50/kW incentive will be applicable to customers who install solar before the effective date of the program, rather than the previously stated September I't date. The incentive amounts were determined through planning assumptions, available budget, estimated participation, available equipment, etc. Incentives will be reviewed periodically to determine if they are sufficient to increase battery adoption and participation in the program or if adjustments are needed. Recordholder:Shawn Grant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC DataRequest 44 IPUC Data Request 44 The Company's response to Production Request No. 14 (e) states that participation incentives are based on continuous output ftW) of the battery which is available to Rocky Mountain Power (RMP). Please define "continuous outpuf' and describe how it will be maintained and/or enforced. Response to IPUC Data Request 44 Continuous output is the output kilowatts (kW) of the battery that is accessible to the Company over a continuous timeframe. For example, if a customer installs a battery rated as a 5 kW continuous output with a l0 kilowatt-hour (kWh) storage capacrty, the battery would continually output 5 kW for two hours. Batteries enrolled in the program will have performance data visible through the Distributed Battery Grid Management System (DBGMS). Recordholder:Shawn Grant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 45 IPUC Data Request 45 The Company's response to Production RequestNo. l5 states that estimates provided in Table No. 2 and Table No. 3 in the Application :rssume bafferies may be used for all grid management applications. Please explain why these same estimates apply to the initial phase (the load shaping phase). Response to IPUC Data Request 45 The initial phase includes the grid services listed in the application. The second phase will incorporate lessons learned from operation of the Program and customer experience. Recordholder: Shawn Grant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC DataRequest46 IPUC Datr Request 46 The Company's response to Production RequestNo. 16 states that Table No. I in the Application (Wattsmart Battery Incentives) assumes batterios may be used for all grid services. Please explain why the Company believes incentives for the initial phase (the load shaping service) should be designed based on the assumption of all grid services before grid services are determined as feasible or implemented. Recponse to IPUC Deta Request 46 The initial phase includes the grid serviees listed in the application. Recordholder: Shawn Crrant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 47 IPUC Data Request 47 The Company's response to Production RequestNo. l7 states that "customer- sited batteries rather change the timing of energy consumption and can increase volumetic energy sales as effrciency losses are experienced." Please answer the following questions. (a) Please defne "efficiency losses" (b) Please explain why efficiency losses can cause volumetric energy sales to increase. Response to IPUC Data Requst 47 (a) Efficiency losses are the energy losses that occur from charging and discharging a battery. This is sometimes referred to as round-fiip effrciency. (b) All else equal, if a customer adopts a battery and charges and discharges it at different times, more energy will be consumed because of the consequent energy losses. Recordholder: Robert Meredith Sponsor:Robert Meredith PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 48 IPUC Data Request 48 CONFIDENTIAL REQUEST - Page 5 of the Application states that for residential customers, the incentive with solar installed prior to September 2021 will be the maximum amount of $150/kW multiplied by the commitment term. The offered incentive for customers with solar installed after August 2021 will be set at $100&W multiplied by the commitment term. Response to Production Request No. l4(c) states that this incentive structure applies to commercial customers immediately as well. (e) Please identiff in the Company's Exhibit B this proposed $100/kW enrollment incentive structure or where the Company will identiff these specific requirements around solar installations installed after August 2021. (0 Additionally, of the Company's projected 600 total customers by 2024, please identiff how many of these customers will have received the enrollment incentive of "$100/kW multiplied by the commitment term"? PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 48 Confidential Response to IPUC Data Request 48 (a) For cost effectiveness calculation the higher incentive amount was modeled to ensure the program would be cost effective. If the program is cost effective at the higher incentive amount it is assumed to be cost effective at the lower incentive amount. The Company anticipates battery adoption will increase during the next few years. As a result, technology will improve, prices may decrease, and a higher incentive is not forecasted for battery adoption and program participation to occur. Incentives are designed to motivate customers to participate who otherwise would not without the financial incentive. (b) Confinned. (c) The Company anticipates adoption of commercial batteries will be slower due to limited options and technology currently available in the market. (d) Based on the was year (e) All program and incentive information for current offerings approved in the Company's program tariffwill be maintained on the Company's website. (f1 It is not known how many customers with existing solar will choose to participate in the program, but could range between l0 and 50 percent or more of the projected customer participation. 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:Shawn Grant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 49 IPUC Data Request 49 CONFIDENTIAL REQIIEST - ln the Confidential File "Attach IPUC 5 Conf' in the to Production No. Response to IPUC Data Request 49 The "lncentive Planning" and "10 year" tabs were utilized for various hypothetical modeling scenarios and various planning assumptions. The data included in these tabs and other tabs are working papers. Recordholder:Shawn Grant Sponsor:Bill Comeau PAC-E-21-16 / Rocky Mountain Power October 13,2021 IPUC Data Request 50 IPUC Data Request 50 - Please the basis and how the Response to IPUC Data Request 50 PacifiCorp's 20l9Integrated Resource Plan (IRP) model simulations and cost data reflect PacifiCorp's corporate inflation rate schedule unless othenuise noted. A single annual escalation rate value of 2.28 percent is assumed. The annual escalation rate reflects the average of annual inflation rate projections for the period 2019 through 2038, using PacifiCorp's September 2018 inflation curve. PacifrCorp's inflation curve is a sfraight average of forecasts for the Gross Domestic Product (GDP) inflator and the Consumer Price Index (CPD. Please refer to the 2019 IRP, Volume I, page 179. PacifiCorp's 2019IRP is publicly available and can be accessed by utilizing the following website link: Integrated Resource Plan (pacificom.com) Recordholder: Shawn Grant Sponsor:Bill Comeau