HomeMy WebLinkAbout20110630Application.pdfRECEIVED
'l
IDA~POR~
An IDACORP Company
JASON B. WILLIAMS
Corporate Counsel
iwilliams~idahopower.com
June 30, 2011
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilties Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-11-11
IN THE MATTER OF IDAHO POWER COMPANY'S 2011 INTEGRATED
RESOURCE PLAN ("IRP'?
Dear Ms. Jewell:
Enclosed for filng please find an original and seven (7) copies of Idaho Power
Company's Application in the above matter.
.-
JBW:csb
Enclosures
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
JASON B. WILLIAMS
DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: (208) 388-5104
Facsimile: (208) 388-6936
jwilliams(iidahopower.com
dwalker(iidahopower.com
RECEIVED
Z011 JUH 30 PM 2: II
Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MAnER OF IDAHO POWER
COMPANY'S 2011 INTEGRATED
RESOURCE PLAN ("IRP").
)
) CASE NO. IPC-E-11-11
)
) APPLICATION
)
COMES NOW Idaho Power Company ("Idaho Powet' or "Company"), and in
accordance with Idaho Public Utilties Commission C'PUC" or "Commission") Order No.
22299, hereby requests that the Commission issue an order accepting the Company's
2011 Integrated Resource Plan. ("IRP" or "Plan"). In support of this request, Idaho
Power states as follows:
I. BACKGROUND
As required by IPUC Order No. 22299 and the Public Utilty Commission of
Oregon's ("OPUC") Order Nos. 89-507 and 07-002, the Company prepares and files a
bienniallRP with both the IPUC and the OPUC setting forth how Idaho Power intends to
serve the electric requirements of its customers. Idaho Powets 2011 IRP addresses
APPLICATION - 1
available supply-side and demand-side resource options, planning period load
forecasts, potential resource portolios, a risk analysis, and near-term and long-term
action plans.
The complete 2011 IRP consists of four separate documents: (1) the 2011
Integrated Resource Plan; (2) Appendix A - Sales and Load Forecast; (3) Appendix B-
Demand-Side Management 2010 Annual Report; and (4) Appendix C - Technical
Appendix. A copy of the complete 2011 IRP is enclosed as Attachment NO.1 and can
also be found on the Company's website at ww.idahopower.com. Interested persons
may also request a printed copy of the 2011 IRP by contacting Mark Stokes at (208)
388-2483 or MStokes(iidahopower.com.
Idaho Power has worked with stakeholders over the last year to develop the
2011 IRP. To incorporate stakeholder and public input, the Company worked with the
Integrated Resource Plan Advisory Council ("I RPAC"), comprised of members of the
environmental community, major industrial customers, agricultural interests, Idaho state
legislators, representatives of the OPUC and IPUC staffs, representatives from the
Idaho Office of Energy Resources and the Northwest Power and Conservation Council,
and others. The IRPAC meetings were also open to the public and served as an open
forum for discussion related to the development of the IRP. The IRPAC and members
of the public that attended the meetings made significant contributions to the Plan. A
list of the members of the IRPAC is enclosed as Attachment NO.2. Idaho Power wil
schedule public presentations regarding the 2011 IRP at community meetings
throughout its Idaho and Oregon service territories later this year once regulatory
process schedules are set.
APPLICATION - 2
II. IRP GOALS AND ASSUMPTIONS
The primary goals of Idaho Powets 2011 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; (2) ensure the selected resource portolio
balances cost, risk, and environmental concerns; (3) give equal and balanced treatment
to both supply-side resources and demand-side measures; and (4) involve the public in
the planning process in a meaningful way.
The 2011 IRP assumes that during the two 10-year planning periods (2011-2020
is "Period One" and 2021-2030 is "Period Two") evaluated in the IRP, Idaho Power wil
continue to be responsible for acquiring resources sufficient to serve all of its retail
customers in its Idaho and Oregon service territories and wil continue to operate as a
vertically-integrated electric utilty.
The number of customers in Idaho Powets service area is expected to increase
from around 492,000 in 2010 to more than 650,000 by the end of the planning period in
2030. Idaho Powets average load is expected to increase by 29 average megawatts
("aMW") (1.4 percent) annually and summertime peak-hour loads are expected to
increase by 69 megawatts ("MW") (1.8 percent) annually through 2030. 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.
II. PREFERRED RESOURCE PORTFOLIO
In preparing the IRP, Idaho Power examined nine resource portolios and
numerous permutations for Period One and ten resource portolios and numerous
APPLICATION - 3
permutations for Period Two. Following the risk analysis, Idaho Power selected
Portolio 1-3 Boardman to Hemmingway ("B2H") as the preferred portolio for Period
One. The Company selected Portolio 2-6 Balanced 1 for Period Two. The combined
preferred portolio adds supply-side resources capable of providing 1,252 MW of
capacity to meet peak-hour loads and is expected to provide 531 aMW of annual
average energy by the end of the planning period. Existing and new demand-side
management programs are estimated to reduce average annual load by 233 aMW by
2030 and peak-hour loads by 351 MW by 2016.
In addition, the IRP identifies an alternate portolio (Portolio 1-4 SCCT) for
Period One in the event the B2H project is significantly delayed or even canceled. In
the alternate portolio, natural gas-fired simple-cycle combustion turbines ("SCCT")
would be used to meet capacity deficits. Specifically, the alternate portolio calls for the
addition of a 170 MW SCCT in 2015, which would necessitate the procurement process
beginning as early as 2012. Moreover, in the event Idaho Power implements the
alternate portolio in Period One, it may reconsider its concerns about over-reliance on
market purchases and select an alternate portolio in Period Two that relies on a
regional transmission project.
The 2011 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 portolios represent current resource acquisition targets, it is important to note
that the actual resource portolio may differ from the quantities and types of resources
outlined in the IRP depending on the changing needs of Idaho Power and its customers.
APPLICATION - 4
IV. EXPANDED IRP ANALYSIS
In Order No. 32042, the Commission accepted the Company's 2009 IRP. In so
doing, the Commission suggested the following:
(1) That the Company compare the risk, cost, and environmental
benefits of environmental strategies that directly reduce emissions from its resource mix
to the purchase of emission offsets or offset options;
(2) Include in the 2011 IRP "a more detailed discussion on how it plans
to reach its carbon reduction goals and curtail its coal operations," recommending that
the Company include the quantity of greenhouse gas ("GHG") emissions per average
megawatt-hour ("MWh") associated with each portolio;
(3) That the Company "redouble its efforts to realize the achievable
potential for savings from efficiency and DSM programs documented in the Nexant
report," recommending that the Company identify economic and non-economic barriers
to deployment of energy efficiency and DSM initiatives; and
(4) That since the Company has increased reliance on natural gas in
its resource portolio, address in the 2011 IRP "the risks to the Company and its
customers associated with the reliance on such an economically volatile commodity."
With respect to the comparison of the risk, cost, and environmental benefits of
environmental strategies that directly reduce emissions from the Company's resource
mix to the purchase of emission offsets or offset options, the IRP specifically addresses
this on page 9. With respect to the inclusion of the quantity of GHG emissions per
average MWh associated with each portolio, the IRP shows such analysis on page 98.
A discussion of economic and non-economic barriers to the deployment of energy
APPLICATION - 5
efficiency and demand-side management initiatives can be found on pages 39 and 40 in
Chapter 4. In addition, extensive details on Idaho Powets demand-side management
programs are presented in Appendix B - Demand-Side Management 2010 Annual
Report. Lastly, the risks associated. with natural gas price volatilty are discussed in
Chapter 9, "Modeling Analysis and Results."
V. SERVICE OF PROCESS
Idaho Power requests that any notices, inquiries, and communications regarding
this request be provided to:
Jason B. Wiliams
Donovan E. Walker
Legal Department
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: (208) 388-5104
Facsimile: (208) 388-6936
E-mail: iwiliams(iidahopower.com
dwalker(iidahopower.com
Gregory W. Said
Timothy E. Tatum
Pricing & Regulatory Services
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: (208) 388-2288
Facsimile: (208) 388-6449
E-mail: gsaid(iidahopower.com
ttatum(iidahopower. com
Vi. REQUEST FOR ACCEPTANCE
Idaho Power respectfully requests that the Commission issue its Order accepting
the Company's 2011 IRP and finding that the 2011 IRP meets both the procedural and
substantive requirements of Order No. 22299.
DATED at Boise, Idaho, this 30th day of June 2011.
APPLICATION - 6
\""~~
B. WILLIAMS
Y for Idaho Power Company
. "
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-11-11
IDAHO POWER COMPANY
ATTACHMENT NO.1
2011 INTEGRATED RESOURCE PLAN
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-11-11
IDAHO POWER COMPANY
ATTACHMENT NO.2
IRP ADVISORY COUNCIL ROSTER
IRP ADVISORY COUNCIL ROSTER
Idaho Power has involved representatives ofthe public in the IR planning process since the
early 1990s. This public forum has come to be known as the IRP Advisory Council (IR AC).
The IRAC generally meets monthly during the development of the IRP and the meetings are
open to the public. Members ofthe council include political, environmental, and customer
representatives, as well as representatives of other public-interest groups.
As part of preparing the 2011 IR, Idaho Power hosted a field trip covering wind, hydro, and
natural gas resources, two portfolio-design workshops, and nine monthly IRP AC meetings. The
IRPAC meetings served as an open forum for discussions related to the development of the IRP
and the IRP AC members and the public have made significant contributions to this plan.
Idaho Power believes working with members ofthe IRP AC and the public is very rewarding and
the IR is better because of the public involvement. Idaho Power and the members ofthe IRAC
recognize that outside perspective is valuable, but also recognize that final decisions on the IR
are made by Idaho Power.
Customer Representatives
Agricultural Representative .......................................Sid Erwin
Boise State University...............................................,John Gardner
Heinz Frozen Foods ...................................................Steve Munn
!NL .............................................................................Tom Moriart
Micron........................................................................Michael Bick
Simplot.......................................................................Don Sturtevant
Public Interest Representatives
Boise Metro Chamber of Commerce .........................Bil Connors
Idaho Conservation League ....................... ...... ..... .....Ben Otto
Idaho Department ofCommerce................................Lane Packwood
Idaho Offce of Energy Resources ............................,John Chatbum
Idaho State House of Representatives........................Representative Elaine Smith
Idaho State Senate.. ............... ..... ........... ....... ............ ..Senator Russ Fulcher
Northwest Power and Conservation Council.... ........,Jim Yost/Shirley Lindstrom
Oil/Gas Industry Advisor ........ ................ ...... ............ .David Hawk
Snake River Allance ....... ...... ...... ..... ..... ................... .Ken Miler
Water Issues Advisor ....... ....... .......... ....... ..... ............ .vince Alberdi
Regulatory Commission Representatives
Idaho Public Utilties Commission ............................Rick Sterling
Public Utilty Commission of Oregon .......................Erik Colvile