20130719notice_of_application_order_no_32857.pdf

Office of the Secretar\
Service Date
July 19.2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S APPLICATION FOR A )CASE NO.IPC-E-13-16
CERTIFICATE OF PUBLIC CONVENIENCE )
AND NECESSITY FOR THE INVESTMENT )NOTICE OF APPLICATION
IN SELECTIVE CATALYTIC REDUCTION )
CONTROLS ON JIM BRIDGER UNITS 3 )NOTICE OF
AND 4.)INTERVENTION DEADLINE
)
____________________________
)ORDER NO.32857
On June 28,2013,Idaho Power Company filed an Application with the Commission
for a Certificate of Public Convenience and Necessity (CPCN)pursuant to Idaho Code §61-541.
The Company seeks authorization of its investment in Selective Catalytic Reduction (SCR)
controls in Jim Bridger Units 3 and 4 and inclusion of the investment in Idaho Power’s rate base
once the SCR controls are installed and operational.The Company requests that the
Commission issue an Order approving the CPCN no later than November 29,2013.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company’s Application states that it owns
one-third of the Jim Bridger coal-fired power plant (Jim Bridger Plant)located near Rock
Springs,Wyoming.PacifiCorp owns the remaining two-thirds and is the operator of the Jim
Bridger Plant.The Application explains that the Plant consists of four generating units and is
adjacent to the co-owned Jim Bridger Coal Company Mine,which supplies approximately six
million tons per year of sub-bituminous coal to the Plant.pplication at 2.Idaho Power further
states that the Plant currently employs approximately 350 personnel.
YOU ARE FURTHER NOTIFIED that Idaho Power maintains that the Jim Bridger
Plant is the “workhorse”of Idaho Power’s thermal fleet.Id.at 3.The Application states that,
after adjustment for scheduled maintenance periods and estimated forced outages,the annual
energy generating capability of Idaho Power’s share of the Jim Bridger Plant is approximately
625 average megawatts.The Company further asserts that this Plant has the lowest dispatch cost
and the lowest installed cost of nameplate capacity to operate of any other project in Idaho
Power’s thermal generation fleet.Idaho Power stresses that the Jim Bridger Plant not only
NOTICE OF APPLICATION
NOTICE 01:INTERVENTION DEADLINE
ORDER NO.32857 1
provides highly valuable capacity during periods of peak demand,but also low cost and
dispatchable baseload energy.Id
YOU ARE FURTHER NOTIFIED that Idaho Power’s Application requests that the
Commission issue a CPCN authorizing the Company to invest in and construct SCR systems and
associated ancillary equipment for Jim Bridger Units 3 and 4 (the Project).The Application
explains that each SCR system would be comprised of two separate universal reactors,with
multiple catalyst levels;inlet and outlet ductwork;a shared ammonia reagent system;an
economizer upgrade;structural reinforcement of the boiler and flue gas path ductwork and
equipment;and extension of the existing Plant distributed control system.Id.The Application
states that an induced draft fan upgrade and an associated auxiliary power system variable
frequency drive insertion are required on Unit 4 only.According to the Company,these
emission control investments in SCR systems and associated ancillary equipment will result in
the reduction of nitrogen oxide emissions in compliance with existing state and proposed federal
emission requirements.Id.
YOU ARE FURTHER NOTIFIED that Idaho Power explains that the BART Appeal
Settlement Agreement with the State of Wyoming and the Wyoming Regional Haze State
Implementation Plan (SIP)require the installation of SCR on Unit 3 by the end of 2015 and on
Unit 4 by the end of 2016.On May 23,2013,the United States Environmental Protection
Agency (EPA)recommended approval of the Wyoming Regional Haze SIP for installation of
SCR on Units 3 and 4 in 2015 and 2016,respectively.The Application states that the EPA has
indicated it will sign a notice of final rulemaking on November 21,2013,making the emission
reduction requirements on Units 3 and 4 federally enforceable.Consequently,if the
environmental upgrades are not installed within the time frame given by the State of Wyoming
or the EPA,Idaho Power maintains that it would be forced to stop generating from these units.
Id.at 4.
YOU ARE FURTHER NOTIFIED that Idaho Power prepared the Coal Unit
Environmental Investment Analysis to determine the economic viability of installing the Jim
Bridger Plant SCRs.The Coal Study analyzed the SCR investment at Jim Bridger Units 3 and 4
as part of a larger analysis conducted for all four units at the Plant and the two units at the North
Valmy plant.The Coal Study supports upgrading Units 3 and 4 with emissions control
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32857
equipment to allow ongoing coal-fueled energy production as the least-cost,least risk outcome
for customers.Jd.at 5.
YOU ARE FURTHER NOTIFIED that the Application identifies the total cost of the
Project (before Allowance for Funds Used During Construction —AFUDC)as $353,843,886.
Idaho Powers one-third share is $1 17.947,962 ($57.649,1 13 investment in Unit 3 and
$60,298,849 investment in Unit 4 before AFUDC).The Company’s commitment estimate’for
its portion of the Project is $129,837,393 —which includes $11,889,431 in AFUDC.Based on a
high-level jurisdictional revenue requirement analysis and Idaho Power’s current jurisdictional
allocation between Idaho and Oregon,Idaho Power estimates that Idaho’s addition to production
plant would be approximately $60.2 million for investments at Unit 3 and approximately $64
million for investments at Unit 4.Id.at 8.The Application states that,at the Company’s
currently authorized rate of return,the additional annual revenue requirement for SCR
investments in Units 3 and 4 would be approximately $9.1 million and $9.7 million,respectively.
Id.
YOU ARE FURTHER NOTIFIED that,pursuant to Idaho Code §61-541.Idaho
Power requests that the Commission provide authorization and a binding commitment to provide
rate base treatment for the Company’s capital investment in SCRs at Jim Bridger’s Units 3 and 4
in the amount of $129,837,393.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA).Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5)working days before the hearing by
contacting the Commission Secretary at:
The Application states that the Company’s commitment estimate is a good faith estimate of Idaho Power’s total
capital cost,including AFUDC,and additional costs the Company anticipates it will incur but cannot quantify with
precision at this time.Application at 7.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32857 3
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE,IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-mail:secretary(puc.idaho.gov
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission’s web site at Click on the
“File Room”tab at the top of the page,scroll down to “Open Electric Cases,”and then click on
the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §S 61-526 through 61-528 and 61-54 1.The Commission may enter any final Order
consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 ci seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
must file a Petition to Intervene with the Commission pursuant to this Commission’s Rules of
Procedure 72 and 73,IDAPA 3 1.01.01.072 and -.073.Persons intending to participate must file
a Petition to Intervene no later than fourteen (14)days from the service date of this Order.
Persons desiring to present their views without parties’rights of participation and cross-
examination at hearing are not required to intervene and may present their comments without
prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed.The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32857 4
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued,the Staff
counsel will convene an informal prehearing conference for the purpose of discussing a schedule
to process this case,the service of discovery,and other issues raised by the parties.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene with the Commission no later than fourteen (14)days from the service
date of this Order.
IT IS FURTHER ORDERED that the Commission Secretary issue a Notice of Parties
after the deadline for intervention has passed.
IT IS FURTHER ORDERED that,once the Notice of Parties is issued,Staff counsel
convene an informal prehearing conference to discuss the processing of this case.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July 2013.
PAUl.K.TlLI.ANI)FR.PRESIDI:NT
ATTEST:
/1
/
Jean D JevelI
Commission Scretary
O:IPC-E-1 3-lôks
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32857
MARSHA H.SMITH,COMMISSIONER
MACK A.REDFORD,lONER
5