20210402Compliance Filing 2020.pdf

An IDACORP Company
LISA D.NORDSTROM
Lead Counsel
Inordstrom(Gidahopower.com
April 2,2021
VIA ELECTRONICFILING
Jan Noriyuki,Secretary
Idaho Public Utilities Commission
11331 W.Chinden Blvd.,Bldg 8,
Suite 201-A (83714)
PO Box 83720
Boise,Idaho 83720-0074
Re:Case No.IPC-E-12-09
Compliance Filing -Boardman Power Plant Annual Review (2020)
Dear Ms.Noriyuki:
Pursuant to Idaho Public Utilities Commission Order No.32549 in Case No.IPC-E-12-09,attached for electronic filing is Idaho Power Company's Boardman PowerPlantAnnualReviewreportfortheyearending2020.
If you have any questions regarding this filing,please contact RegulatoryConsultantCourtneyWaitesat(208)388-5612 or [e-mail].
Sincerely,
Lisa D.Nordstrom
LDN:slb
Attachments
cc:Karl T.Klein (w/Attachments)
An IDACORP Company
BOARDMAN POWER PLANT ANNUAL REVIEW
FOR THE YEAR ENDING 2020
April 2,2021
Pursuant to Idaho Public Utilities Commission ("Commission")Order Nos.32457 (Case
No.IPC-E-11-18)and 32549 (Case No.IPC-E-12-09),Idaho Power Company ("Idaho Power"
or "Company")has completed its review of the Boardman power plant ("Boardman")balancing
account for 2020.The purpose of this report is to provide the Commission with (1)an update of
the Boardman balancing account levelized revenue requirement and (2)a summary of activities
that occurred at Boardman in 2020.The Company is not recommending a rate change as part
of this report.
I.BACKGROUND
In February 2012,the Commission issued Order No.32457 in Case No.IPC-E-11-18:
(1)accepting the Company's accounting and cost recovery plan for the early shutdown of
Boardman and (2)allowing the Company to establish a balancing account to track shutdown-
related costs and benefits.Following the Commission's Order,on February 15,2012,Idaho
Power requested authority to increase rates to begin recovery of the levelized revenue
requirement associated with Boardman beginning June 1,2012 (Case No.IPC-E-12-09).The
Company proposed to replace the then current non-levelized base rate revenue recovery
associated with Idaho Power's existing investment in Boardman with a levelized revenue
requirement that was tracked in the Boardman balancing account,smoothing the revenue
requirement impacts of the early Boardman retirement over the remaining years of the plant's
life and providing for full recovery of Boardman-related costs by Boardman life end.
The levelized revenue requirement calculation included three components:(1)the
revenue requirement on existing investments as of May 31,2012,prior to when the Boardman
balancing account was established;(2)the revenue requirement on incremental investments
after May 31,2012,after the Boardman balancing account was established;and (3)the revenue
requirement associated with future decommissioning and offsetting salvage costs.The
Commission issued Order No.32549 on May 17,2012,authorizing implementation of the cost
recovery approach approved in Order No.32457 and increasing the Company's annual revenue
requirement by $1,525,501 effective June 1,2012,to reflect in customer rates the new levelized
Boardman revenue requirement of $5,174,794.
BoardmanPower Plant 2020 AnnualReview
Case No.IPC-E-12-09 1
In accordance with Order Nos.32457 and 32549,Idaho Power filed its Boardman PowerPlantAnnualRevieweachyearfrom2012throughyear-end 2018,without requesting to adjustrates.Then,on October 17,2019,idaho Power filed an application in Case No.IPC-E-19-32requestingtodecreasecustomerrates$1,058,225 effective January 1,2020,to reflect theupdatedBoardmanlevelizedrevenuerequirementamountof$5,135,872.On December 26,2019,the Commission issued Order No.34519 in Case No.IPC-E-20-32,approving therequestedratechange.
II.SUMMARYOF ACTIVITIESIN 2020
Boardman produced its last megawatt of energy on October 15,2020,at 12:56 PM.Thefollowingsummarizestheupdatedquantificationofthelevelizedrevenuerequirementandtheactivitiesrelatedtocessationofcoal-fired operations at Boardman that occurred in the year2020:
The Levelized Revenue RequirementCalculation
Because full depreciation of all Boardman investments was to occur December 31,2020,Idaho Power filed a request with the Commission to remove the $5,135,872 in Boardmanlevelizedrevenuerequirementamounts,less an adjustment of $213,918 to reflect benefits oftheU.S.Tax Cuts and Jobs Act of 2017 associated with Boardman that will no longer exist,effective January 1,2021.The Commission approved the Company's request with Order No.34885.As part of Idaho Power's request,the levelized revenue requirement was updated withactualsthroughJune30,2020,and compared to levelized revenue requirement amounts incustomerratesatthetime.However,because Boardman was still in operation at the time andinvestmentswerenotfullydepreciated,a review of the levelized revenue requirementcomponentsfortheJuly1,2020,through December 31,2020,time period must be performed.
Existinq Investments.There was no change to actual plant balances as of May 31,2012,therefore this component of levelized revenue requirement did not change.
IncrementalInvestments.The revenue requirement component related to incrementalinvestmentscapturesallplantinvestmentsmadeatBoardmanafterMay31,2012,or when theBoardmanbalancingaccountwasestablished.In Case No.IPC-E-20-32,the Commissionfoundthatthe$5.34 million in capital investments made from June 1,2012,through June 30,2020,were prudentlyincurred.There were $1,402 in trailing charges for previously reportedprojectsthatclosedtoplantbetweenJuly1,2020,through December 31,2020,increasing theannuallevelizedrevenuerequirementassociatedwithincrementalinvestments$128.
Decommissioninq and Salvaqe Costs.Idaho Power's initial estimate of thedecommissioningandsalvagecostswasdeterminedbyapplyingtheCompany's 10 percentownershippercentagetothedecommissioningstudyperformedbyBlack&Veatch for PortlandGeneralElectric("PGE")and completed in 2011.In 2018,PGE issued a request for proposalseekinganOwner's Engineer to complete design and permitting work in preparation fordecommissioningactivities,including capping the ash disposal area,demolishing structures atBoardman(i.e.,coal handling systems),remediating the coal yard,and other selective
Boardman PowerPlant 2020 Annual Review
Case No.IPC-E-12-09 2
demolition work across the site (i.e.,support buildings,features supporting coal,coal handling,
and coal ash handling).The cost study prepared by AECOM Technical Services,the Updated
Boardman Coal Plant Decommissioning and Demolition Plan dated October 16,2019,indicates
a slightlyhigher decommissioning cost forecast than the estimate prepared in 2011,however no
changes were made to the $5.4 million of decommissioning and salvage costs included in the
levelized revenue requirement computation.
Attachment 1 details the derivation of the updated levelized revenue requirement and the
Idaho jurisdictional share of the revenue requirement.The following is a summary of the Idaho
jurisdictional levelized revenue requirement computation based on the sum of the components:
Existing investments $3,936,546
Incremental investments $749,174
Decommissioninq and salvage costs $445,875
Updated levelized revenue requirement $5,131,594
Order No.34519 set the Boardman-related levelized revenue requirement in base rates
to $5,135,872 on an Idahojurisdictional basis,the amount subsequentlyremoved from customer
rates on January 1,2021.The difference between the updated levelized revenue requirement,
presented in Attachment 1,and the levelized revenue requirement recovered from customers
for Boardman is negative $4,278 ($5,131,594 -$5,135,872 =($4,278)),indicating the
Company's quantification of the levelized revenue requirement associated with the early
shutdown of Boardman is slightly less than previously calculated.
Trackinq of Revenue Collections and Revenue Requirernents.In Case No.IPC-E-12-
09,the Company proactively committed to tracking (1)the monthlydeviations between forecast
revenue collection and actual revenue collection,and (2)deviations between existing levelized
revenue requirement calculations and updated levelized revenue requirement calculations.
Order No.34519 issued in Case No.IPC-E-19-32 included a refund to customers for the true-
up of monthlydeviations between forecast revenue collection and actual revenue collection for
the time period June 1,2012,through August 31,2019.Therefore,Idaho Power tracked the
monthlydeviations beginning September 1,2019,through December 31,2020,when collection
of Boardman levelized revenue requirement amounts ceased.
Attachment 2 details the tracking of the monthly deviations between the forecasted
revenue collections and actual revenue collections.From September 1,2019,through
December 31,2019,actual revenue collections were slightly higher than forecasted revenue
collections,resulting in a 2019 true-up of approximately negative $20,000.However,revenue
collections from January 1,2020,through December 31,2020,were approximately $16,000
lower than forecasted,resulting in a total true-upof negative $3,950.
As stated previously,the deviation between the updated levelized revenue requirement
and the levelized revenue requirement recovered from customers in base rates is negative
$4,278,creating a true-up of negative $36,719 since establishment of the Boardman Balancing
Account on June 1,2012.Adding that to the true-up of revenue collections,results in a total
true-upof negative $40,669.Because any such differences are tracked through the Boardman
BoardmanPower Plant 2020 Annual Review
Case No.IPC-E-12-09 3
balancing account,the true-up will remain there until such time as customer rates are adjusted
in the future.
Decommissioningand Demolition Activities
As the end-of-life approached,a Boardman coal management plan was implemented,managing the coal consumption at the plant and reducing the size of the coal yard to allow as
much coal as possible to be reclaimed rather than landfilled.As part of that plan,RPM Solutions,
a coal reclamation contractor,was brought on-site to begin reclaiming the base layer of coal
from the remaining coal pile at Boardman in March 2020,separating the coal from the dirt.ThereclamationallowedtheotherwiseunburnablecoaltobeusedattheplantduringthefinalmonthsofBoardman's operation.
Decommissioning of the Boardman plant and separating of the facilities shared withPGE's Carty generating station began on October 16,2020.The first step in the proœss is togettheplanttoacold,dark and dry state in advance of demolition.Boardman utilized existingemployeesandselectcontractorstoperformthiswork,which includes soil sampling of on-siteborrowareas,the cleaning of tanks,lines,plant equipment,and the plant itself,and the start oftheremovaloftheon-site underground storage tanks.In addition,pre-qualification of demolitioncontractorsbeganlateintheyearinanticipationofdemolitioninmid-2021.Activities in 2020
also included the design work for the closure of the ash disposal area and design for thedemolitionoftheplant.
The remaining materials and supplies inventory that could not be scrapped or salvaged
was higher than expected,$942,704 while estimated to be $729,000,resulting in an adjustmentof$213,704 in the Boardman balancing account to reflect the actual write-off of the materials
and supplies inventory.The following summarizes Idaho Power's share of the decommissioningexpendituresrecordedtothebalancingaccountonasystembasisasofDecember31,2020:
Decommissioning Costs $741,619
Materials and Supplies Write-off $942,704
Actual Decommissioning Expenditures $1,684,323
Remaining Forecast $3,910,928
Current Decommissioning Estimate $5,595,251
Decommissioninq Costs Collected ($5,381,547)
Estimated Under (Over)Collection $213,704
Because full collection of estimated levelized revenue requirement amounts occurred and
decommissioning activities have begun,interest will accrue on the balance of the Boardman
balancing account at the customer deposit rate,which is 1 percent for the 2021 calendar year,
as authorized by the Commission with Order No.34866.
Boardman Power Plant 2020 Annual Review
Case No.IPC-E-12-09 4
III.CONCLUSION
The results of this annual review demonstrate that there is a difference in the annual
revenue requirement which,along with the sum of the associated true ups,is negative $40,669,
or a benefit to customers.Because decommissioning activities have commenced and
decommissioning expenses are being incurred,the revenue requirement true-up will remain in
the balancing account,which will also track variations between actual and forecasted
decommissioning expenses,to offset future positive differences or for future refund to
customers.The Company will continue to monitor any over-or under-collection of costs,
reporting the balancing account activities to the Commission,and will adjust customer rates in a
future proceeding,if necessary,ensuring customers pay no more or no less than actual
Boardman-related costs.
BoardmanPower Plant 2020 Annual Review
Case No.IPC-E-12-09 5
CERTIFICATEOF SERVICE
I HEREBY CERTIFYthat on this 2nd day of April 2021,I served a true and correct copyofIDAHOPOWERCOMPANY'S BOARDMAN POWER PLANT ANNUAL REVIEW FOR THEYEARENDING2020uponthefollowingnamedpartiesbythemethodindicatedbelow,andaddressedtothefollowing:
Commission Staff Hand DeliveredKarlT.Klein U.S.Mail
Deputy Attorney General OvernightMailIdahoPublicUtilitiesCommissionFAX
11331 W.Chinden Blvd.,Bldg 8,X Email Karl.Klein puc.idaho.qovSuite201-A (83714)
PO Box 83720
Boise,Idaho 83720-0074
Stephanie L.Buckner,Executive Assistant
Boardman Power Plant 2020 Annual Review
Case No.IPC-E-12-09 6
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.IPC-E-12-09
IDAHO POWER COMPANY
ATTACHMENT 1
Attachment 1 to 2020 Boardman Annual Report
Levelized Revenue Requirement for the Boardman Plant Early Shutdown
at December 31,2020
Revenue Requirement On Existinq investments at May 31,2012
Existing Accelerated
2012 4,796,006
2013 4,528,526
2014 A.259,046
2015 3.989,56620163,720,08720173,450,007
2018 3,181,127
2019 2,911,647
2020 2,642,167
Total 33,480,780
PV 27,132,500
Payment 4.140,009
Revenue Requirement On incremental Investments
Layer Layer Layer Layer Layer Layer Layer Layer LayerBoardmanCa;MtalAdditions&Forecast Life(years)2012 2013 2014 2015 2016 2017 2018 2019 2020June.2012 163,426 9 34,746January20131,310.858 8 32,795 206,034January20142,813,816 7 30.843 278.323 682,781January2015229,503 6 28,892 260,713 639.500 60,876January2010286,744 5 26,040 243,103 596,379 66,764 86,064January201726,499 4 24,980 226,493 553,178 62,662 78,921 9,117January,2018 153,222 3 23,037 207,883 609,977 48,540 72,767 8,405 62,972January,2019 42,740 2 21,056 190,273 466,776 44,428 66,694 7,693 58,212 24,360January,2020 (40,887)1 19,134 172,602 423,674 40,310 60,430 6,961 53,463 22,369 (42,702)
Total 242,403 1,874,384 3.872.245 303,578 363,786 32,194 174.637 40,729 (42,792)Total4,985,986 PV 196491 1,459,538 2,899,145 218,696 252,361 21,525 112,585 29,100 (25,769)Payments(356,145)Payment 29982 222,707 442,374 33,370 38.507 3,284 17,179 4,440 (3,932)787,9125,342.131
Decommissioning Costs and Expected Salvage
2020 Costa PaymentDecomrrussaningCosta(Eshmated in 2020 donars)7,166,247 623 572ExpectedSalvage(Eshmated in 2020 dolbre)(1,774,700)(154 642)Net.5,381,547 468 931
Total System Summary Idaho Jurisdictional Summary
Levelized Rev Rqmt -Exisung investment 4,140 099 Levefued Rev Rgmt -Exianng Investment 3,936,546LevelizedRevRgmt-Incremental Investments 787 912 Levelmed Rev Rqmt -Incremental investments 749.174LevelizedRevRqmt-Decomrrmasioning Costs &Salvage 468 931 Levehzed Rev Rqmt -Decomfrussioning Costs &Salvage 446,875NewLevelizedRevRqmt(To be tracked through the balancing account)5 396 942 New Levelized Rev Rqmt (To be tracked through the bahncing account)5,131,594
Eshmated Rev Rqmt Currenty in Base Rates (2011)3 812 406 Esämated Rev RqmtCurrendy in Base Rates (2011)3,649,293RevRqmtCurrenifyinBaseRates(2012)1 629 969 Rev Rqmt Currendy in Base Rates (2012)1,525,501RevRqmtCurrendyinBaseRates(2020)(40 934)Rev Rqmt Currendy in Base Rates (2020)(38,922)Total Rev Rqmt Recovered in Base Rates 5,401 441 Total Rev Rqmt Recovered in Base Ratee 5,135.872
Net Change in Levehzed Rev Rqmt (4 499 Net Change in Levelized Rev Rqmt (4,278)
True-Up of Revenue Golfectons (3 950)True-Up of Revenue Collections (3,950)True-Up of Levelued Rev Rqmt (38 616)True-Up of Levelized Rev Rqmt (36,719)TotalTrue4]p (42,566)TotalTrue-Up (40,669)
1.The Revenue Requirement in Base Rates beçýnning January 1,2020.approved Wth Order No.34519 included addibonal revenue mqturement adjustrnents associated Wth the Shared Facilides Gain.True-Up of Prior Year Colleonone,and the True-Up of the Levelized RevenueReqtirement.The result was anaddidonal rate reduction of$1,047 571on a systern basis,or $1,019,333 on an Idaho jurisdianonal baus effeceve for the January 1,2020,through December 31,2020.dme period.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.IPC-E-12-09
IDAHO POWER COMPANY
ATTACHMENT 2
Attachment 2 to 2020 Boardman Annual Report
BoardmanBalancingAccount RevenueCollectionsTracking
Boardman ForecastedRevenues J_gnugy M M Ad a &M g &R R TotalasapprovedwithOrderNo.32549
Normali2ndlDJudsdichonalSales(MWh)1,152,449 1,052,464 062.551 922125 931,654 1,100,636 1,338,967 1,416,209 1.282,310 1,028,994 928,924 1,055,150 13,172,433BoardmanRate($)0.115810 0.115810 0.115810 0.115810 0115810 0115810 0.115810 0.115810 0.115810 0.115810 0.115810 0.115810BoardmanForecastedRevenues133,465 121886 111,473 106791 107,895 127,465 155,066 164011 148,504 119.168 107579 122,197 5 1.525,501
2019 Boardman Revenues Total2019IdahoJunsdicdondSales(MWh)1,369,800 1,012,013 1,000525 1087,235BoardmanActualRevenues158,637 117.201 115871 125.913Difference(10.132)1,967 (8.292)(3,716)Total(Over)UnderCollection (10,132)(8,166)(16,458)(20,173)$(20,173)
Boardman ForecastedRevenues M M M g A_ugug B &R R TotalasapprovedwithOrderNo.34519
NormalizedlDJudsdictionalSales(MWh)1,230,333 1.164964 1,059.953 983008 1039,320 1,207486 1,484,546 1.546,707 1373.356 1,074,166 986331 1,108,816 14.258,985BoardmanRate(S)0.104266 0.104256 0.104256 0.104256 0104256 0104256 0104256 0.104256 0.104256 0.104256 0.104250 0.104256BoardmanForecastedRevenues128.269 121,454 110,506 102.484 108.355 125887 154.772 161,253 143,180 111,988 102830 115600 5 1,486,579
2020 Boardman Revenues Total2020IdahoJurisdictonalSeles(MWh)1.156,543 1,101,758 1,024,103 956,229 1,015,632 1,183343 1,397,419 1,592,904 1,450,229 1,084,006 1,004606 1,136599BoardmanActualRevenues120.576 114,864 106,768 99,692 105,865 123370 145,689 166,069 151,194 113,014 104736 118497DRerence7,693 6,589 3,738 2,792 2,470 2517 9,084 (4,816)(8,014)(1,026)(1905)(2897)Tota(Over)UnderColloodon 7,693 14,282 18,020 20,812 23,281 25798 34,882 30,066 22,051 21,025 19,120 16,223 $16,223
Total(Over)Under Collection $(3,950)