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HomeMy WebLinkAbout20221115PAC to Staff 1-24.pdfROCKY MOUNTAIN PiOWER i.iICE IVED il:? t{0V 15 Ptl hr I I ,,',?i-i n'C##fi 18t' o*1407 W North Temple, Suite 330 Salt Lake City, Utah 84116 November 15,2022 Jan Noriyuki Idaho Public Utilities Commission 472W. Washington Boise,ID 83702-5918 ian.noriyuki@puc.idaho. eov (C) RE:TDPAC.E.22.14 IPUC Set I (l-24) Please find enclosed Rocky Mourtain Power's Responses to IPUC I't Set Data Requests 1-24. Also provided is Attachment IPUC 12- I . The Confidential Attachments IIPUC I , 4, 8, and l2-2 are provided via BOX. 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. If you have any questions, please feel free to call me at (801)220-2963. Sincerely, -lsl-J. Ted Weston Manager, Regulation Enclosures PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request I IPUC Data Request 1 The Application states "[t]he 2021 IRP Update includes the results of the Company's Capacity Loads and Resources without Resource Additions in Table 4.2 on page 47 and is provided as Table No. I ". However, Table 4.2 onpage 47 of the202l IRP Update (Update) does not match Table No. I in the Application. Please respond to the following: (a) Please provide the complete load and resource balance (L&R) Excel file that generates the result in Table No. l. (b) Please explain why Table 4.2 onpage 47 of the Update does not match Table No. I in the Application andjustiff all the updates to TableNo. l. Response to IPUC Data Request I (a) Please refer to Confidential Attachment IPUC l. (b) The first five lines in Table No. I in the Application have the same numbers as Table 4.2 onpage 47 of the 2021Integrated Resource Plan (RP) Update, excepting that the Table No. I from the Application does not include 2022. The available front office transactions (FOT) shown in the Application have been grossed up by 3 percent to account for 3 percent contingency reserves held by the counterparty to the fiansaction, which would be necessary for it to be considered "firm". This was not accounted for in the 2021IRP Update. The202l IRP Update also assumed that a higher level of reliance on FOTs would not necessarily represent a deficit in the first few years of the study period, hence no deficit was shown until 2025. For the Application, the Company showed the capacity deficit in all years. 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:Dan MacNeil P AC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC DataRequest 2 IPUC Deta Roqueot 2 Please providc the L&R Excel file tlrat gereratss tho result in Table No. 2. The Excel file should include both the summeJ defioits and the winter deficits as required by OrderNo. 34918. Response to IPUC Dah Request 2 Please refer to the Company's rcqrcnse to IPUC Data Request l, qpecifically Confidmtial Attachment IPUC 1. Recordholder: Dan ivlacNeil Sponmr:Dan MrcNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 3 IPUC Data Request 3 Please explain if there have been any updates on the obligation side and on the resource side of the L&R since the result in Table No. 2 was generated. If yes, please describe all the updates and provide the associated workpapers. For the updates on resource side, please only provide the ones that have been authorized by the Commission. Response to IPUC Data Request 3 The Company assumes that the reference to "authorized by the Commission" is intended to be a reference to the Idaho Public Utilities Commission (IPUC). Based on the foregoing assumption, the Company responds as follows: Table No. 2 primarily reflects assumptions from the202l Integrated Resource Plan (IRP) Update. PacifiCorp's2023IRP is currently underway, and the draft load forecast has a significant increase relative to the 2021 IRP Update assumptions. The change in the load forecast in the 2023 IRP primarily reflects new customer demand, and also accounts for climate change impacts which result in higher system peak demand. Please refer to the presentational materials from PacifiCorp's2023lRP public input meeting held on July 14,2022 I July 15,2022, specifically slides 4 through 9. The presentational materials are publicly available and can be accessed by utilizing the following website link: https://www.pacificorp.com/content/dam/pcorp/documents/en/pacificorp/enerey/i ntesrated-resource-plan/2023-imlPacifiCorp 2023 IRP PIM Julvl4- t5J022.pdf Because the 2023lRP is still underway and the assumptions are preliminary, the Company does not have an updated version of Table No. 2 at this time. However, as the updated load forecast is projected to be higher, it would not change the resource deficiency date proposed in the filing. Please refer to the Company's response to IPUC Data Request l, specifically Confidential Attachment IPUC l, which provides updated resource information, specifically areas with green highlighting within that file, and the totals in rows 8l through 84 of the summer and winter load and resource summary tabs. None of the recently signed resources require the approval of the IPUC. While the Company has acquired resources for 2023, it is not sufficient to eliminate the deficiency shown in 2023. Recordholder:Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 4 IPUC Data Request 4 Please explain whether the L&R Excel file that generates the result in Table No. 2 assumes "all current PURPA contracts will be renewed unless the Company has information about specific contracts to the contrary, "as required by Order No. 3491 8. Response to IPUC Data Request 4 Because of the immediate timing of the proposed deficiency period, the Company's filing reflects the actual status of current Public Utility Regulatory Policies Act of 1978 (PURPA) power purchase agreements (PPA), i.e. whether it is currently effective in2023, rather than a projection of renewals through a future deficiency date. For a list of contracts that have been entered or renewed since the Company's filing, please refer to the Company's response to IPUC Data Request I and Confidential Attachment IPUC l, tab "Adjustments". For a list of additional PURPA PPAs that could potentially renew and provide capacity during the summer of 2023, please refer to Confidential Attachment IPUC 4. Note: this list does not include resources that have typically entered non- firm (NF) contracts and thus do not commit to providing capacity. The Company would also note that the aggregate nameplate capacity of these resources is less than20 megawatts (MW), and that the capacity contribution would be proportionately less, such that it would not impact the proposed deficiency period timing. 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:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 5 IPUC Data Request 5 Please explain whether the L&R Excel file that generates the result in Table No. 2 uses "the appropriate derate adjusfrnents for each year" as required by Order No. 34918.If so, please identiff the derate adjustnents in the Excel file. Response to IPUC Data Request 5 Please refer to the Company's response to IPUC Data Request 1, specifically Confidential Attachment IPUC l. The derated coal plant capacrty by year is shown in columns E through L of tab "2IIRPU CONF". Recordholder:Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 6 IPUC Data Request 6 Please respond to the following regarding removals of early coal Retirements: (a) Please confirm the L&R Excel file that generates the result in Table No. 2 reflects the removals of early coal retirements, consistent with Order No. 34918. If so, please identifo the removals in the Excel file. (b) Please provide the end-of-life retirement dates of each coal plant in the L&R Excel file that generates the result in Table No. 2 and explain how the dates were determined. (c) Please confirm whether or not the conversion of Jim Bridger Unit I and Unit 2 to natural gas plants is reflected in the L&R. If the conversion is reflected, please explain if the capacity amounts of the plants have changed and justify the changes. (d) Please explain what changes to the end-of-life retirement dates are being made to Craig and Hayden in the 2023lRP and justiff the changes. In addition, please confirm that these changes are not reflected in the L&R Excel file that generates the result in Table No. 2 in this case. Response to IPUC Data Request 6 (a) Confirmed. Please refer to the Company's response to IPUC Data Request l, specifically Confidential Attachment IPUC l, columns C through E in tab "Adjustments" for the list of retirements that were removed. PacifiCorp's2021Integrated Resource Plan (lRP) Update used the same coal retirement dates as the 2021 IRP. For details, please refer to PacifiCorp' s 2021 IRP, Volume I, Chapter I (Executive Summary), page 15. PacifiCorp's2021 IRP is publicly available and can be accessed by utilizing the following website link: lrttps://www.pacificorp.com/content/dam/pcom/documents/en/pacificom/ener sy/intesrated-resource-olanl2O2l -irp/Volum e%o20lYo20- %209 . I 5 .202 lYo2lF inal.pdf Note: the Company has limited flexibility to negotiate retirement dates for minority owned units and did not evaluate altematives to the dates listed. As a result, the Company's IRP modeling does not contemplate an end-of-life retirement date for these units, they were extended indefinitely in the results shown in Table No. 2. PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 6 Among the Company's majority-owned units, only Naughton Unit I and Naughton Unit 2 had what might be considered a retirement in the 2021 IRP, as these units are required to cease coal-fired operation by 2025 due to obligations related to their coal combustion residual (CCR) ponds. Naughton Unit I and Naughton Unit 2 are candidates for gas conversion in PacifiCorp's 2023 IRP and are assumed to be able to continue operating in2026 through as late as 2036. All of the other coal retirement dates identified in the 2021 IRP that were not already mentioned reflect end-of-life assumptions used in the 2021 IRP. (b) Please refer to the Company's response to subpart (a) above. (c) Confirmed. In the 2021IRP Update, the conversion of Jim Bridger Unit I and Jim Bridger Unit 2 from coal to gas was not expected to result in a change in the capacity of the plants. (d) For details on the proposed coal resource options and assumptions for the 2023 IRP, please refer to the presentational materials from PacifiCorp's2023 IRP public input meeting held on September 1,2022 / September2,2022, specifically slides 19 through 31. The presentational materials are publicly available and can be accessed by utilizing the following website link: https://www.pacificom.com/content/dam/pcorp/documents/en/pacificorp/ener ev/inteerated-resource-plan/2023-irpllRP PIM Sept%20 I -2 2022.pdf As discussed in the Company's response to subpart (a) above, Table No. 2 in this case reflects the capacity from Craig and Hayden indefinitely. Recordholder: Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 7 IPUC Data Request 7 Please confirm that all the resources and contacts included in the L&R Excel file that generates the results in Table No. 2 have been approved by the Commission. Ifnot please identiff the resources and contracts that have not been approved. (Staffs default standards in Case No. PAC-E-20-13 stated that resources and contracts, such as Company-owned resources and long-term generation contracts, should be included in an L&R when authorized). Response to IPUC Data Request 7 The Company assumes that the reference to "approved by the Commission" is intended to be a reference to the Idaho Public Utilities Commission (IPUC). Based on the foregoing assumption, the Company responds as follows: Please refer to the Company's response to IPUC Data Request l, specifically Confidential Attachment IPUC l. Each of the contracts which are required to be prospectively approved by the tdaho Public Utilities Commission (IPUC), have received approval in final orders, as indicated in column F on tab "Adjustments." This only applies to qualiffing facility (QF) power purchase agreements (PPA) delivering to the Company within the state of ldaho. Details on these and other signed contracts are included on that same tab. For other confact types, the Company is not clear what constitutes "approval by the Commission". The Company will not seek to include new owned resources in retail rates until the resources are scheduled to go into service, potentially within a forecasted test period, but generally much more than a year into the future. Besides the aforementioned ldaho QFs, other new contacts would not be reflected in rates or have costs approved by IPUC until filed as part of an Idaho general rate case (GRC) or included in actual net power costs (NPC) in an Idaho energy cost adjustment mechanism (ECAM) filing. The load and resource balance from Table No. 2 includes recently signed contracts and resources selected to the final shortlist (FSL) in PacifiCorp's2020 All-Source Request For Proposals (2020AS RFP), including both owned and contracted resources which, because of their expected start dates, would not yet have been subject to IPUC approval. These projects include 1,792 megawaffs (MW) of wind, 1,150 MW of solar additions, and 639 MW of battery storage capacity - 439 MW paired with solar and a 200 MW standalone battery. For details on the capacity provided by these resources, please refer to the Company's response to IPUC Data Request l, specifically Confidential Attachment IPUC l, tab "2IIRPU CONF". Recordholder: Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 8 IPUC Data Request 8 The L&R Excel file that generates the result in Table No. 2 includes demand response programs selected as part of the 2021 Demand Response Request for Proposals, including projected growth in those programs over time. Please list these programs and the amount of capacity each is "projected" to add capacity to the system each year over the planning horizon. Response to IPUC Data Request 8 Please refer to Confidential Attachment IPUC 8, specifically tab "Energy- Limited". Programs are listed in column C, maximum capacity is listed in column M, and the summer and winter contribution values are listed in columns Z and AA, respectively. Confidential information is provided subject to protection under TDAPA 31.01.01.067 and 31.01 .01.233, the ldatro Public Utilities Commission's Rules of Procedure No. 67 - lnformation Exempt from Public Review, and furttrer subject to the Non-Disclosure Agreement (NDA) executed in this proceeding. Recordholder:Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 9 IPUC Data Request 9 Please respond to the following regarding the existing demand response proglams: (a) Please confirm that the capaclty values of the existing demand response programs are based on a L24-megawatt ('MW') residentiaUsmall commercial air conditioner load control program, a 205-MW inigation load management program, and l9l-MW intemrptible conffacts, as described on page 147 of the 2021 IRP. (b) Please explain why Page 45 of the Update states the Company has had intemrptible contacts for approximately 177 MW of load intemrption capability for many years. Please reconcile the l9l MW and the 177 MW. (c) Please confirm that the capacrty values of the existing demand response programs include projected growth in those progfttms over time. If so, please explain how projected growth is determined for each program. If not, please explain how the capacity values ofthe existing demand response progftrms are determined over the planning horizon. (d) Please explain what causes the difference between the existing demand response capacity in the 2021 IRP and the existing demand response capacity in the Update. Response to IPUC Data Request 9 The Company has not yet completed a reconciliation of the capacity values for individual resources in PacifiCorp's 2021Integrated Resource Plan (IRP) and the 2021 IRP Update. The Company would also note that the distinction between nameplate or maximum capacity and capacity contibution is not always clearly identified. The Company will supplement this response when the reconciliation has been completed. Capacity values identified in the load and resource balance are intended to reflect each resource's contribution to reliable system operation. With increasing reliance on variable energy resource and duration-limited storage resources, the periods of greatest system reliability risks have moved away from periods of peak system load, for example, from sunny summer aftemoons to dark sufilmer evenings. As a result while solar resources may be providing capacity during the aftemoon, other resources such as batteries will be necessary to ensure reliable operation in the evening when the net load peak (load net of wind and solar generation) is highest, when solar output is lower. Both groups of resources are necessary and there is no conclusive methodology for allocating the capacity value between solar resources with a high contribution during the coincident peak (CP) and other PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 9 resources with a high contribution during the net load peak. In both the202l IRP and the202l IRP Update, the contribution from thermal resources is based on their derated availability, i.e. their maximum output during periods when they are not experiencing forced outages. This is expected to be uniform across a day, and thus is not dependent on the composition of the rest of the portfolio. For the 2021 IRP, the remaining capacity, up to the achieved planning reserve margin (PRM), was allocated among other resource types on an hourly basis, with the proportion of capacity need in excess of the thermal unit contribution in ttre numerator, and the availability of all resources in that hour in the denominator. Based on this methodology, the total capacity need in the peak load hour (on a surnmer aftemoon) is higher than in the net load peak hour (on a summer evening), however, it is spread among a relatively large quantity of available resources, as there is a relative excess of solar at that time. During the net load peak hour, there are generally just enough resources available to ensure reliable system operation, so the contribution of each is proportionately higher. For the 2021 IRP Update, the allocation of capacity was more closely aligned with the resource capacity allocation methodology proposals in the Western Resource Adequacy Program (WRAP), which included an allocation based on average availability during the top 5 percent of net load hours. The WRAP allocation methodology also uses a number of Effective Load Carrying Capability (ELCC) studies, which are very resource intensive, to delineate capacity values for different resource Wpes, including wind, solar, and run-of-river hydro. As a proxy for the ELCC results, the 2021IRP Update used average availability in the top 5 percent of load hours (i.e. starting the CP), to allocate the capacity need between the CP and the net load peak to those resources whose output was higher during the top 5 percent load hours than during the top 5 percent net load hours, which primarily applies to solar. Details on the WRAP capacity allocation methodology are publicly available and can be accessed by utilizing the following website link: https://www.westempowemool.ore/private-med ialdocuments/202 I - I 2- 2I_MPC Minutes.pdf Recordholder: Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request l0 IPUC Data Request 10 In the 2019 IRP, the existing demand response progfttms were split into two parts: the intemrptible programs and the remaining Class I DSM. The intemrptible programs were used to adjust load on the obligation side, while the remining Class I DSM was included on the resource side. However, in the 2021 IRP, all the existing demand response programs were included on the obligation side. Please explain what caused the change and provide justifications for the change. Response to IPUC Data Request 10 The distinction between programs included as credits to the obligation and those included on the resource side is that those included as credits to the obligation will not have ttre planning reserve margin (PRM) applied. ln PacifiCorp's2021Integrated Resource Plan (lRP), the PRM represents the cumulative impact of the following requirements: Contingency reserve requirements (spinning and non-spinning), equivalent to approximately 6 percent of load, as 3 percent of the requirement is applied to the generation necessary to serve load, except to the extent it is held by a counterparty to support the Company's firm market purchases. Load uncertainty: stochastic variation in load, which may be higher or lower than normal or median conditions. Hydro uncertainty: stochastic variation in streamflow that can increase or decrease hydro generation, relative to normal or median conditions. Thermal forced outage uncertainty: stochastic thermal unit outages result in periods with above or below average thermal availability. Regulation reserve requirements: additional operating reserves necessary to compensate for uncertainty and intra-hour variation in load and resources. Other than the contingency reserve obligation of 6 percent, each of the other requirements that contribute to the PRM requirement are related to uncertainty and do not tanslate into a single percentage value. Any one of these other categories may drive a need for a 13 percent PRM in some circumstances, while in other circumstances, it may reduce the overall requirements, for example, higher forced outages will sometimes occur during periods with below normal loads. Demand response (DR) programs reduce load, which results in reduced contingency reserve obligations while the programs are being called. Those programs may also provide greater benefits when load is unexpectedly high, for example during a period of high air conditioner (A/C) demand, A/C control a a a a a PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request l0 programs will have more demand to curtail and a greater effective impact. To the extent a DR program has a short notice time and can be called within an hour, it could also reduce regulation reserve requirements. These categories likely represent the majority of the risk mitigation addressed via the PRM, though not all of it. The level of risk mitigation will also vary with the type of load in the program - programs that control loads that are weather dependent are likely to have a larger benefit on load uncertainty than programs that contol loads that are always on or volatile but not impacted by weather. With increasing penetration of energy-limited resources, including DR and battery storage, the effective contribution from such resources is diminished. For example, as more four-hour duration resources are added, the probability of outage events lasting one or two hours will go down, but the probability of outage events lasting five hours or more will likely go up. This is particularly true if the energy-limited resources are replacing retiring thermal resources which do not have any duration limits. The 2021 IRP only includes the capacity contribution of DR as a credit to the obligation, based on its effective duration, and including existing DR, as shown in the Company's response to IPUC Data Request 8, specifically Confidential Attachment IPUC 8. This reduces the contribution from DR resources but means that inclusion prior to accounting for the PRM is more reasonable, as the estimate is not overstated as it was in the past when it did not account for duration limits of DR resources. Recordholder: Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request I I IPUC Data Request 11 ln Case No. PAC-E-20-13, planning reserves are calculated as l3o/o* (Load - Private Generation- Energy Efficiency). However, nthe202l IRP, planning reserves are calculated as l3%* (Load - Private Generation- Existing Demand Response -New Energy Efficiency). In addition, Response to Staffs Production Request No. 8 in Case No. PAC-E-20-13 stated l3o/o* (Load - Private Generation - Energy Efficiency) was correct and ttre intemrptible load should not be used in the calculation, because these contracts do not carry the 13% planning reserve margin. Please reconcile the two methods and explain why intemrptible load, as part of the existing demand response, is used in the 2021 IRP. Also, please explain in detail what is meant by, "these contracts do not carry the 13% planning reserve margin" and how it affects the calculation. Response to IPUC Data Request 11 Please refer to ttre Company's response to IPUC Data Request 10. Recordholder:Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 12 IPUC Data Request 12 Please explain what causes the difference between the capacity values of Private Generation in the 2021 IRP and the capacity values of Private Generation in the Update. Response to IPUC Data Request 12 The capacity value for private generation @G) is equal to the forecasted load reduction at the time of the system coincident peak (CP). This method was used in both PacifiCorp's 2021 Integrated Resource Plan (lRP) and the 2021 IRP Update. For details, please refer to the tab "Peak Loads" of the following files on the data disks supporting the 2021 IRP and 2021 tRP Update filings: 2021 IRP - non-confidential data disk; specifically folder "Chapters and Appendices\Chapter 6 - Load and Resource Balance", file "Table 6.12-6.13 Fig 6.2,6.5-6.8.x1sx". 2021 IRP Update - confidential data disk; specifically folder "Chapters and Appendices CONF\Chapter 4 - Load and Resource Balance Update CONF", file "Fig4.3,4.4,Tbl4.24.3, 57252 LandR Figures and Tables CONF.xlsx". For ease of reference, copies of the above referenced 2021 IRP 12021IRP Update work papers are provided herewith as Attachment IPUC l2-l and Confidential Attachment IPUC l2-2. The PG forecast only reflects the load impacts of new participants, while the load forecast reflects the load of existing customers, inclusive of the effects of their PG. For the202l IRP Update, actual participants in2020 and their associated load impacts were incorporated in the underlying load forecast. As a result, the forecast of new PG participants was rolled forward to start in 2021, rather than 2020. 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:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 13 IPUC Data Request 13 Page 151 of the 2021 IRP states that the existing energy efficiency is 73 MW. Response to Staffs Production Request No. 22 (e) in CaseNo. PAC-E-21-19 states that 73 MW is incorrect and should have been 68 MW. However, page M of the Update states that 73 MW is used in the Update. Please explain whether it should have been 68 MW in the Update. Response to IPUC Data Request 13 Please refer to the Company's response to IPUC Data Request 9. Note: the Company will supplement its response to IPUC Data Request 9 (and its response to this data request if deemed necessary) when the reconciliation of individual items in he 2021 Integrated Resource Plan (RP) and 2021 Integrated Resource Plan (IRP) Update has been completed. Recordholder: Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC DataRequest 14 IPUC Data Request 14 Please explain how the capacrty values of Sales are determined and if the capacity values of Sales in the Update match those in the 2021IRP. If not, please elplain what causes the difference. Response to IPUC Data Request 14 Please refer to the Company's response to IPUC Data Request 9. Note: the Company will supplement its response to IPUC Data Request 9 (and its response to this data request if deemed necessary) when the reconciliation of individual items in the 2021 Integrated Resource Plan (IRP) and 2021 lntegrated Resource Plan QRP) Update has been completed. Recordholder:Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 15 IPUC Data Request 15 The Update combines Sales and Ancillary Services into one line item. Please respond to the following: (a) Please explain why Sales and Ancillary Services are combined. (b) Please explain why Ancillary Services are not included as a line item in the 2021 IRP. Are they captured in the planning reserve margin? If so, please explain why they are separated out from the planning reserve margin in the Update. (c) Please define Ancillary Services, describe their role, and explain how their capacity values are determined. Are they the same as Non-Owned Reserves in Case No. PAC-E-20-13? Response to IPUC Data Request 15 (a) "Ancillary Services" represents the provision of operating reserves by PacifiCorp to wholesale customers in accordance with its Open Access Transmission Tariff(OATT). For example, the Company is required to provide spinning and non-spinning reserves to generators and loads within its balancing authority areas (BAA) in Schedule 5 and Schedule 6 of its tariff. Because it represents capacity held on behalf of a third-party, this is comparable to a wholesale sale. (b) "Ancillary Services" were not broken out in PacifiCorp's 2021 Integrated Resource Plan (lRP), and as a result were effectively part of the effective planning reserve margin (PRM) used to identify the total system capacity Breaking out this category slightly increases both the obligation and the resources by an equivalent amount. (c) Please refer to the Company's response to subpart (a) above. Yes. Recordholder:Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 16 IPUC Data Request 16 Please respond to the following regarding "Contracts" line item in the Update: (a) Please defure "Contracts" in the Update and explain what types of conffacts are included in "Contacts" (such as long-term firm contracts and short-term firm confracts.) (b) Please explain if all the contracts have been approved by the Commission (c) Are they the same as "Purchase" nthe202l IRP? If so, please explain what causes their capacity values to change between the202l IRP and the Update. Response to IPUC Data Request 16 Please refer to the Company's response to IPUC Data Request 9. Note: the Company will supplement its response to IPUC Data Request 9 (and its response to this data request if deemed necessary) when the reconciliation of individual items in the 2021 lntegrated Resource Plan (IRP) and202l Integrated Resource Plan (RP) Update has been completed. Recordholder: Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request l7 IPUC Data Request 17 Please confirm whether the line item "Thermal" in the 2021 IRP should bethe sum of the Iine item "Coal" and the line item uGasu in the Update. If so, please explain why the capacity values of "Thermal" are not always the sum of "Coal" and "Gas". Response to IPUC Data Request 17 Please refer to the Company's response to IPUC Data Request 9. Note: the Company will supplement its response to IPUC Data Request 9 (and its response to this data request if deemed necessary) when the reconciliation of individual items in the 2021 Integrated Resource Plan (IRP) nd 2021 Integrated Resource Plan (RP) Update has been completed. Recordholder:Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request l8 IPUC Data Request 18 Please explain what causes the difference between the capacity values of "Hydroelectric" in the 2021 IRP and those in the Update. Response to IPUC Data Request 18 Please refer to the Company's response to IPUC Data Request 9. Note: the Company will supplement its response to IPUC Data Request 9 (and its response to this data request if deemed necessary) when the reconciliation of individual items in the202l Integrated Resource Plan (IRP) and202l Integrated Resource Plan (IRP) Update has been completed. Recordholder: Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 19 IPUC Data Request 19 Please confirm whether the line item "Renewable" in the202l IRP should be the sum of the line item "Solar," "Wind," and "Geothermal" in the Update. If so, please explain why the capacrty values of "Renewable" are not the sum of "Solar," 'Win{' and "Geothermal" for all the years in the planning horizon. Response to IPUC Data Request 19 Please refer to the Company's response to IPUC Data Request 9 Note: the Company will supplement its response to IPUC Data Request 9 (and its response to this data request if deemed necessary) when the reconciliation of individual items in $e2021Integrated Resource Plan (IRP) and202l Integrated Resource Plan (IRP) Update has been completed. Recordholder: Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 20 IPUC Data Request 20 Response to Staffs Production Request No. 13 in CaseNo. PACE- 20-13 defined "uncommitted [Front Office Transactions ("FOTs")] to meet remaining need" as the amount of FOTs up to the "available front oflice transactions" that could be used to meet a capacity deficit. However, both the 2021 IRP and the Update allowed "uncommitted FOTs to meet remaining Need" to exceed "Available Front Office Transactions. " In addition, Response to Staff s Production Request No. 2 I (b) in Case No. PAC-E-21-19 states that because there are no proxy resources allowed in the period 2021 through2023, the Company will be reliant on a higher level of FOTs in the near term. Please respond to ttre following: (a) Please explain why no proxy resources were allowed in the period from202l through 2023.Is it due to lack of lead times for resource acquisition? (b) Please explain why in the202l IRP the Company had to rely on a higher level of FOTs in the near term, instead of letting the deficit occur in the near term. Why did the Company have to "balance the system" in the near term in the 2021 IRP, as described in Response to Staffs Production Request No. 2l(b) in Case No. PAC-E-21-19? Response to IPUC Data Request 20 (a) Yes. Both resource procurement and transmission interconnection processes limit the Company's ability to bring on new resources in the first few years. (b) Reliable operation requires that the Company have resources sufficient to serve all retail load at all times, as well as additional resources necessary to meet all of its operating reserve requirements. While the load and resource figure could show a deficiency in the near term, the Company would necessarily need to have sufficient resources, and only market resources would be available for that purpose. The Integrated Resource Plan (tRP) load and resource balance is primarily focused on long-term resource decisions over the entire 20-year study horizon and does not have options to address requirements in the first few years, as indicated in the Company's response to subpart (a) above. Recordholder: Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 2l IPUC Data Request 21 Table No. 2 in the Application shows that the summer FOT limit is 515 MW, instead of 500 MW shown inthe202l IRP and the Update. Please respond to the following: (a) Please provide the updated winter FOT limit. (b) Please explain how the updated summer FOT limit and the winter FOT limit are determined and provide related workpapers. (c) Please explain whether transmission rights are considered in developing the FOT limits. (d) Supplemental Response to Staffs Production Request No. l8 (3) in Case No. PAC-E-21-19 states that, for peak months, the FOT limit is lower than the transmission limit and is the limiting factor; for non-peak months, the transmission limit is lower and is the limiting factor. This shows the transmission limit does not seem to be used in determining the FOT limit. However, Supplemental Response to Staffs Production Request No. l8 (2) in Case No. PAC-E-2 I - I 9 states that transmission rights are considered in developing the FOT limits in order to move the FOT energy on a firm basis into the Company's system. Please reconcile the two statements in terms of the use of transmission rights in determining the FOT limits. Response to IPUC Data Request 21 (a) The updated winter front office transaction (FOT) limig inclusive of the 3 percent increment associated with the avoided contingency reserve obligation when making firm market purchases, is 1,030 megawatts (MW), as shown in the Company's response to IPUC Data Request l, specifically Confidential Attachment IPUC l, tab *Wtr Peak L&R". (b) The development of the FOT limis is discussed in chapter 5 of PacifiCorp's 2021Integrated Resource Plan (lRP), Volume I, Chapter 5 (Reliability and Resiliency). FOT limits cannot exceed PacifiCorp's physical delivery constraints and are further reduced to the extent regional resource adequacy concerns indicate potential risks in market liquidity and market depth. (c) Transmission rights are considered in the FOT limits. Specifically, the Company's IRP modeling includes firm transmission rights (generally consistent with PacifiCorp energy supply management's (ESM) existing reservations) that are greater than or equal to the FOT limit and which allow market purchases to be delivered to serve the Company's retail load. PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC DataRequest 2l (d) Transmission access is necessary, but not sufficient to enable FOTs to contibute to the reliable operation of PacifiCorp's system. As an example, the Califomia-Oregon Border (COB) limit of 250 MW is less than the Company's firm scheduling rights because derates on the Califomia-Oregon Intertie (COI) frequently reduce the Company's ability to import from the COB market. The Company's firm rights to the other markets points are generally higher than the FOT limits because resource considerations are of greater concem. In actual operations, the availability of tansmission and ofwilling sellers determines the volume and location of market purchases. Price, inclusive of short-term transmission costs, is also a consideration to extent there are multiple options. Note: PacifiCorp's 2021 IRP is publicly available and can be accessed by utilizing the following website link: Inteerated Resource Plan (pacificorp.com) Recordholder:Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 22 IPUC Data Request22 Table No. 2 in the Application shows there are 567 MWs of "Committed FOTs" in2023. Please respond to the following. (a) Please define "Committed FOTs" and describe each of the commiued FOT contracts (i.e., capacity size, parties that the Company contracted with, timeframes, etc.). (b) Please explain why Committed FOTs are only used for 2023. (c) Please confirm that the reason the FOT limit is not used for 2023 is because the Committed FOTs (567 MW) are greater ttran the limit (515 MW). Response to IPUC Data RequqtZ2 (a) The referenced fransactions are short-term firm (STF) physical purchases. For details, please refer to the Company's response to IPUC Data Request l, specifically ConfidentialAttachment IPUC l, tab "STF CONF". (b) PacifiCorp's hedging policy calls for reductions in open positions over time, and for electricity this generally begins 12 months to 18 months in advance. As shown, on tab "STF CONF" referenced in the Company's response to subpart (a) above, since the Company's filing was prepared, it has begun entering transactions for Ql 2024. (c) Confirmed. While the Company expects to acquire short-term resources to meet any remaining load obligations in all periods, the calculated load and resource balance would require more front office transactions (FOT) than the limit assumed in PacifiCorp's 2021lntegrated Resource Plan (lRP). Recordholder:Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 23 IPUC Data Request 23 Please explain if Capacity Benefit Margin (CBiO, which is used to lower flre Company's need for planning reserve margin to cover emergencies, is included in the L&R Excel file that generates the result in Table No. 2. If not, please provide the Company's CBM capacity amounts and explain why they should not be included in the L&R. Response to IPUC Data Request 23 Generally, "Capacity Benefit Margin" (CBM) refers to additional transmission transfer capability reserved to ensure generation can reach load to maintain system reliability. For example, immediately after a generator forced outage, other generators holding contingency reserves must be able to deploy that capacity, increasing their output so as to replace all lost generation. Congestion on the transmission system that prevents those deployments would create reliability issues. Transmission outages or derates could also create congestion that would create reliability issues. PacifiCorp's2021 Integrated Resource Plan (IRP) and202l tRP Update do not explicitly identiff benefits associated with CBM. The modeling for the IRP reflects existing firm scheduling rights of PacifiCorp's energy supply management (ESM) (i.e. merchant / generation) function, and projections of future rights following transmission upgrades. Transmission outages and derates are not modeled, nor is CBM that could be deployed during such conditions. Because the incremental resource requirements associated with restricted transmission availability are not included, further reductions in resource needs associated with CBM are not appropriate. Recordholder:Dan MacNeil Sponsor:Dan MacNeil PAC-E-22-14 / Rocky Mountain Power November 15,2022 IPUC Data Request 24 IPUC Data Request24 The FOT availability limits in the2019IRP were increased by 3%o, while fte 2021 IRP did not include these increases. Please erylain whether 3% should be used to determine the FOT availability limits in ttre L&R Excel file that generates the result in Table No. 2. Response to IPUC Data Request24 It is reasonable to account for avoided contingency reserve obligation of3 percent associated wittr firm market purchases, and ttrat increment was included in the results presented in Table No. 2. Please refer to the Company's response to IPUC Data Request l, specifically Confidential Attachment IPUC l, tab "Smr Peak L&R', row 65. Recordholder: Dan MacNeil Sponsor:Dan MacNeil