20070320Status Report.pdf

IDAHO
PUBLIC UTiliTIES
com mission
L. "Butch" Otter, Governor
O. Box 83720, Boise, Idaho 83720-0074
Paul Kjellander, President
Marsha H. Smith, Commissioner
Mack A. Redford, Commissioner
March 20, 2007
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Jean D. Jewell
Commission Secretary
PO Box 83720
Boise, ID 83720-0074
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Re:Case No. IPC-O7-03 (Idaho Power)
Status Report
On February 6, 2007 , Idaho Power Company (Idaho Power; Company) filed a Petition with the
Idaho Public Utilities Commission (Commission) in Case No. IPC-07-03. Germane to the
Company s Petition is its filing also in the 07-03 docket of the Company s Wind Integration
Study. The Study quantifies some of the additional costs of including variable intermittent wind
resources in Idaho Power s resource portfolio. Based on the results of its Study, the Company
proposes an adjustment to the avoided cost rate paid to wind QFs.
On February 16, 2007, the Commission issued a Notice of Petition and Notice of Preliminary
Procedure in Case No. IPC-07-03. In its Notice the Commission acknowledged Idaho Power
intention as a matter of preliminary procedure and prior to any procedural scheduling by the
Commission to schedule and conduct at least one workshop in which its Petition and Wind
Integration Study can be discussed with the Company and EnerNex, the consultant and co-author
of the Study. The Commission was informed that Commission Staff would file a status report
with the Commission following the workshop together with a recommendation for further
procedure and scheduling.
Pursuant to the Commission s February 16 2007 Notice in Case No. IPC-07-, Commission
Staff, by and through its attorney of record, Scott D. Woodbury, provides the following status
report regarding preliminary proceedings.
On Thursday, March 15 2007, Idaho Power hosted a wind study workshop at the Owyhee Plaza
in Boise, Idaho. Following a Company/EnerNex presentation of the Wind Integration Study and
methodology, the Company presented its answers to previously submitted questions and fielded
other questions and suggestions from workshop attendees. A list of action items was prepared as
the Company s to do list. See Attached. Idaho Power estimates that the turn around time will be
approximately six to eight weeks. Another workshop is anticipated once the Company
completes its action items and provides its informational responses to workshop participants.
Located at 472 West Washington Street , Boise, Idaho 83702
Telephone: [phone] Facsimile: [phone]
Jean D. Jewell
March 20, 2007
Page 2
It is the Company and Staff s intention that the next workshop in these proceedings will be
formally noticed and open to the public. Additional workshops thereafter will be limited to
formal parties and will be informally convened from time to time pursuant to informal notice and
communication. An intervention deadline will be recommended to follow the next workshop.
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Scott D. Woodbury
Deputy Attorney General
cc:Parties of Record
blslL:Jewell sw IPC-O7-
Wind Study Workshop March 15, 2007
List of Action Items
1. Windlogics to address concerns regarding west to east diversity of wind modeling (re: INL
data).
2. What additional reserves is Idaho Power carrying to meet 98% compliance with CPS
3. Can Idaho Power utilize existing natural gas-fired combustion peaking facilities to provide
reserves and load following capability more economically than using the hydro system?
4. Can Idaho Power utilize the regional markets to integrate wind more economically?
5. Moving wind remotely has built in a very high transaction cost. Needs to be investigated.
6. Can Idaho Power modulate its coal-fired projects in order to integrate wind?
7. The capacity factors used in the modeling appear to be low. Would going to a different power
curve reduce variability?
8. Need to review data behind wind variability and scaling issues (re: RNP question #3).
9. Does the study double-count regulation requirements?
10. Need to investigate using an "all down-reg" methodology as proposed by RNP.
11. Market prices from year 2000 should not have been used. Need to investigate other pricing
alternatives?
12. Can the analysis be re-run at the 300 MW penetration level to account for the recently
approved Elkhorn contract being in eastern Oregon rather than southern Idaho?
13. Can a further breakdown of the costs associated with the $10.72 be shown in regards to the
amount attributed to the hour ahead forecast, the wind forecast error, reserves and transmission
costs (delta between flat and variable case)?
14. Include the new Evander Andrews unit when investigating the use of combustion units to integrate
wind.
15. Investigate "what-ifs" associated with expanding the size of the control area.
16. The flat wind HL/LL bias should be removed from the model.
17. Can Idaho Power calculate the reg-down component of reserves? What about spilling wind?
What about the impacts of using a 20-minute ahead forecast?
18. Run just a combustion turbine analysis (possibly using Aurora).
As discussed at the workshop, Idaho Power intends to begin working on highlighted items (1-4, 10-/2 16) prior to
addressing the non-highlighted items.