200610022006 IRP letter.pdf

IDAHO
POWE R CID
RECEIVED
200G SEP 29 PM 4: ~ 1
Lisa D. Nordstrom
Attorney
An IDACORP Company
10Ati0 PuGLIG
UTILITIES COivlMISSION
September 29, 2006
Jean D. Jewell , Secretary
Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise, Idaho 83720-0074
Re:Case No. IPC-06-d.4
IN THE MATTER OF IDAHO POWER COMPANY'S 2006
INTEGRATED RESOURCE PLAN (IRP)
Dear Ms. Jewell:
Please find enclosed for filing an original and seven (7) copies of Idaho Power
Company s Application for the above-referenced matter. Compact discs containing the
complete filing will be hand-delivered to the Commission early next week. Idaho Power
also will send copies of the 2006 IRP to the members of the Integrated Resource Plan
Advisory Council on the attached list.
I would appreciate it if you would return a stamped copy of this transmittal letter in
the enclosed self-addressed , stamped envelope.
Very truly yours
iJ.
1L
Lisa D. Nordstrom
LDN:sh
Enclosures
Telephone [phone] Fax [phone], E-maillnordstromrBJidahopower.com
Idaho Power Company
2006 Integrated Resource Plan Advisory Council Members
Customer Participants
Micron - Dale Eldridge
Simplot - David Hawk
INL - Tom Moriarty
Heinz Frozen Foods - Steve Munn
AARP - Joe Gallegos
Idaho Retailers - Pam Eaton
Agricultural Representative - Sid Erwin
Meridian Joint School District #2 - Wayne Hanners
Commission Participants
Idaho PUC - Rick Sterling
Oregon PUC - Bill McNamee
Environmental Participants
N atmal Resource Defense Council - Devra Wang, Audrey Chang or Ralph Cavanagh
Advocates for the West - Bill Eddie
Other Participants
IDEQ - Larry Koenig
Governor s Office - Jim Yost
Idaho State Legislature - Representative Steve Smylie
Northwest Power and Conservation Council- Jim Kempton or Shirley Lindstrom
Consultant - Dan Violette - Summit Blue Consulting, LLC
LISA NORDSTROM ISB #5733
BARTON L. KLINE ISB #1526
Idaho Power Company
P. O. Box 70
Boise , Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
RECEIVED
2006 SEP 29 Pt1 4: 48
IDAHO PU;:H.\C:
UTILITIES COMMI5SION
Attorneys for Idaho Power Company
Street Address for Express Mail
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S 2006 INTEGRATED
RESOURCE PLAN (IRP)
CASE NO.IPC-06-
APPLICATION
COMES NOW Idaho Power Company ("Idaho Power" or "Company ), and
accordance with Idaho Public Utilities Commission ("IPUC" or "Commission ) Order No.
22299 , hereby requests that the Commission issue its order accepting the Company
2006 Integrated Resource Plan ("IRP" or "Plan
).
In support of this request, Idaho
Power states as follows:
BACKGROUND
As required by IPUC Order No. 22299 and Oregon Public Utility Commission
OPUC") Order No. 89-507 , the Company prepares and files a biennial Integrated
Resource Plan with both the IPUC and the OPUC setting forth how Idaho Power intends
to serve the electric requirements of its customers. Although Idaho Power s recent IRPs
APPLICATION , Page
utilized a 10-year planning horizon , the Company and the Integrated Resource Plan
Advisory Council ("Advisory Council") decided to extend the IRP planning period to 20
years to better reflect the lengthy lead times necessary to construct base load resources
and provide a 20-year resource plan to support Public Utility Regulatory Policies Act
PURPA") contract negotiations.Idaho Power s 2006 IRP addresses its available
resource options, planning period forecasts, future requirements , potential resource
portfolios , a risk analysis , a 10-year resource plan, and a near-term action plan.
The complete 2006 IRP consists of five (5) separate documents: (1) 2006
Integrated Resource Plan; (2) Sales and Load Forecast for the 2006 Integrated
Resource Plan; (3) 2005 Demand-Side Management Annual Report for the 2006
Integrated Resource Plan; (4) Economic Forecast for the 2006 Integrated Resource
Plan; and (5) Technical Appendix for the 2006 Integrated Resource Plan. A copy of the
complete 2006 IRP is enclosed as Attachment 1 and can be found on the Company
website at http://www.idahopower.com/2006irp. Interested persons may also request a
printed copy of the 2006 IRP by contacting Mark Stokes at [phone] or
MStokes (Q) idahopower.com
Idaho Power has worked with stakeholders for the last twelve (12) months to
develop the 2006 IRP.To incorporate stakeholder and public participation , the
Company worked with the Integrated Resource Plan Advisory Council comprised of
members of the environmental community, major industrial customers , agricultural
interests, an Idaho state legislator, Commission Staff, a representative from the Idaho
Governor s Office , and others. The Advisory Council meetings served as an open forum
for discussion related to the development of the IRP , and its members have made
APPLICATION , Page 2
significant contributions to the Plan. Idaho Power will also make "live" presentations
about the 2006 IRP at community meetings held throughout its Idaho and Oregon
service territories during the fall of 2006.
II.IRP GOALS AND ASSUMPTIONS
The two primary goals of Idaho Power s 2006 IRP are to: 1) identify sufficient
resources to reliably serve the growing demand for energy within Idaho Power s service
area throughout the 20-year planning period , and 2) ensure the portfolio of selected
resources balances costs, risks , and environmental concerns.The Company also
sought to give equal and balanced treatment to both supply-side and demand-side
resources, involve the public in the planning process in a meaningful way, explore
transmission alternatives , and investigate and evaluate clean-coal technologies.
The 2006 IRP assumes that during the 20-year planning period (2006-2025),
Idaho Power will continue to be responsible for acquiring resources sufficient to serve
all of its retail customers in its mandated Idaho and Oregon service territories and will
continue to operate as a vertically-integrated electric utility.
The number of households in Idaho Power s service area is expected to increase
from around 455 000 in 2005 to over 680 000 by the end of the planning period in 2025.
As a result, Idaho Power s average load is expected to increase by 40 aMW (1.
annually); summertime peak-hour loads are expected to increase by 80 MW (2.1 %
annually) per year through 2025. Idaho Power continues to use 70th percentile water
conditions and 70th percentile average load for energy planning. For peak-hour capacity
planning, Idaho Power uses 90th percentile water conditions and 95th percentile peak-
hour load.
APPLICATION , Page 3
III.PREFERRED RESOURCE PORTFOLIO
Idaho Power examined 12 resource portfolios and several variations of the
portfolios in preparing the 2006 IRP. Analysis and discussions with the Advisory
Council led to the selection of four finalist portfolios for additional risk analysis.
Following the final risk analysis, Idaho Power selected a modified version of the 2004
preferred portfolio as the preferred portfolio for the 2006 IRP. The selected portfolio
adds supply-side and demand-side resources capable of providing 1 091 MW of
average energy, 1 250 MW of capacity to meet peak-hour loads, and 285 MW of
additional transmission capacity from the Pacific Northwest. The selected portfolio also
includes demand-side management programs estimated to reduce average loads by 90
aMW annually and peak-hour loads by 187 MW.
The 2006 IRP presented by this Application provides the Company s estimate of
future loads and sets forth how the Company intends to serve the electrical
requirements of its native load customers over the next 20 years. While the proposed
resource portfolio represents current resource acquisition targets, it is important to note
that the actual resource portfolio may differ from the quantities and types of resources
outlined in the IRP depending on responses to Idaho Power s Requests for Proposals
the business plans of any ownership partners, and the changing needs of Idaho
Power s system.
IV.EXPANDED IRP ANALYSIS
In Order No. 29762 accepting the Company s 2004 IRP, the Idaho Commission
indicated that Idaho Power should expand its 2006 IRP to include an analysis of
possible transmission projects, associated costs and potential risks. Furthermore, the
APPLICATION, Page 4
Commission ordered that the Company s plan to add coal generation should include an
analysis of adding additions to existing coal plants and an examination of joint venture
opportunities. The OPUC made similar findings and in response, Idaho Power has
expanded its discussion of these topics in the IRP.The Company believes this
additional analysis and discussion has resulted in a more thorough and comprehensive
Integrated Resource Plan.
Idaho Power s analysis of possible transmission path upgrades can be found
within Section 5 , Potential Resource Portfolios , starting on page 57. In order to comply
with the Federal Energy Regulatory Commission s Standard of Conduct requirements
Idaho Power contracted with an outside consultant to provide the technical expertise
required to evaluate and screen a range of transmission options.After the initial
screening, a request was submitted on the OASIS website for Idaho Power
transmission planners to analyze the necessary upgrades for the finalist portfolios. With
the consultant's assistance, the following were selected as the most viable transmission
alternatives:
McNary (Columbia River) to the Locust Substation (Boise) via Brownlee
Lolo (Lewiston area) to Oxbow
. Bridger, Wyoming to the Boise Bench Substation via the Midpoint
Substation
Garrison or Townsend , Montana to the Boise Bench Substation via the
Midpoint Substation , and
White Pine , Nevada to the Boise Bench Substation via the Midpoint
Substation.
APPLICATION, Page 5
Also in response to the Commissions' direction , the Company has considered
additions to existing coal plants and joint venture opportunities. As discussed in the
Company s Near-Term Action Plan , Idaho Power continues to explore development
opportunities at Idaho Power jointly-owned coal-fired facilities at Jim Bridger
Boardman and Val my.
The 2006 IRP'preferred portfolio includes a nominal 250 MW coal-fired
resource addition in 2013 identified as "Wyoming Pulverized Coal." While the exact
location of the resource is still unknown , one of Idaho Power s best near-term
alternatives for expansion at an existing coal-fired resource is the addition of a fifth unit
at the Jim Bridger plant.The fact that this is an expansion at an existing facility, the
mine-mouth location, and the availability of low cost coal are significant advantages
associated with a Bridger expansion. Idaho Power is currently exploring this expansion
alternative with PacifiCorp. Idaho Power and Avista Utilities continue their investigation
to identify, assess and screen coal-based joint venture resource power generation
opportunities in the northwest region of the United States.
As explained in Table 2-2 and on page 12, Idaho Power has completed , and will
continue to look for, cost-effective upgrades at its existing thermal generating stations.
The IRP's Risk Analysis section also discusses the potential for Idaho Power to
participate in a jointly-owned regional Integrated Gasification Combined Cycle (IGCC)
project as a way to share the risk associated with this new clean coal technology.
SERVICE OF PROCESS
Idaho Power requests that any notices , inquiries and communications regarding
this request be provided to:
APPLICATION , Page 6
Michael J. Youngblood
Pricing & Regulatory Services
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
E-mail: mvounqblood (Q) idahopower.com
Lisa D. Nordstrom
Barton L. Kline
Legal Department
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
E-mail: Inordstrom (g) idahopower.com
bkline(Q) idahopower.com
VI.REQUEST FOR ACCEPTANCE
Idaho Power respectfully requests that the Commission issue its Order accepting
and acknowledging the Company s 2006 IRP and finding that the 2006 IRP meets both
the procedural and substantive requirements of Order No. 22299.
DATED at Boise , Idaho, this 2 9 ~ay of September, 2006.
APPLICATION , Page 7