20131104Application.pdf

^llDrypN!PO'I'ER=
An IDACORP Company
?nI1Iliu _:,l I ' I'.i.-: -,Pil L: lrl
DONOVAN E. WALKER
Lead Gounsel
[e-mail]
November 4,2013
DEW:csb
Enclosures
;,iriil
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-13-21
Approval of the Capacity Deficiency to be Utilized in the Surrogate Avoided
Resource ("SAR') Avoided Cost Methodology - ldaho Power Company's
Application
Dear Ms. Jewell:
Enclosed for filing in the above matter are an original and seven (7) copies of ldaho
Power Company's Application.
Donovan E. Walker
1@
1221 W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
DONOVAN E. WALKER (lSB No. 5921)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
dwalker@ idahopower. com
Attorney for ldaho Power Company
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
APPROVAL OF THE CAPACITY
DEFICIENCY TO BE UTILIZED IN THE
SURROGATE AVOIDED RESOURCE
('sAR',) AVOTDED COST METHODOLOGY.
!nl1+rnli t n,!i.r;.'ll--a ': I ii
;.' '" 'ti:ii_iij;r:,..:
t;: [l
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. tPC-E-13-21
IDAHO POWER COMPANY'S
APPLICATION
ldaho Power Company ("ldaho Powe/' or "Company") pursuant to Order No.
32697 hereby respectfully submits this Application to the ldaho Public Utilities
Commission ("Commission") for approval of the capacity deficiency period to be utilized
in the Surrogate Avoided Resource ('SAR') avoided cost methodology. ldaho Power
asks for Commission approval of the capacity deficiency period shown in Table 3,
below, with a first deficit occurring in July 2021. ln support of its Application, ldaho
Power states as follows:
I. INTRODUCTION
1. In Order No. 32697, the Commission directed that a case be initiated
outside of each utility's lntegrated Resource Plan ("lRP") filing for the establishment of
the capacity deficiency period to be utilized in the utility's SAR methodology:
IDAHO POWER COMPANY'S APPLICATION - 1
[W]e find it reasonable and fair to subject each utility's
determination of capacity deficiency to further scrutiny.
Therefore, when a utility submits its lntegrated Resource
Plan to the Commission, a case shall be initiated to
determine the capacity deficiency to be utilized in the SAR
Methodology. The capacity deficiency determined through
the IRP planning process will be the starting point, and will
be presumed to be correct subject to the outcome of the
proceeding.
Order No. 32697, p.23.
II. SAR CAPACITY DEFICIENCY PERIOD
2. ldaho Power filed its 2013 IRP with the Commission on June 28,2013.
Case No. IPC-E-13-15. Idaho Power's 2013 IRP identifies the first peak-hour deficit
occurring in July 2016, as displayed in Table 1 below. This table also appears on page
61 of the 2013 lRP. As described in the 2013 lRP, peak-hour load deficits are
determined using 90th percentile water and 95th percentile peak-hour load conditions.
ldaho Power's 2013|RP, pp. 60-61.
TABLE 1
Peak-Hour Surplus/Deficit Charts
(9oth Percentile Water and 95th Percentile Load)
Peak-Hour Monthly Deficits with Existing and Committed Resources and Existint Energy Efficiency (2O13 IRP)
o
(1m)
(20)
(3m)
(ffi)
{sm)
==(m)
(7m)
( 8OO)
(m)
11,m)
(1,lm)
o60000000000ddNddddddddN
IDAHO POWER COMPANY'S APPLICATION - 2
3. On October 15, 2013, pursuant to the Commission's directives in Order
No. 32697 and Order No. 32802, ldaho Power filed updated components of the
incremental cost IRP avoided cost methodology consisting of an updated load forecast,
updated natural gas forecast, and updated list of new and terminated Public Utility
Regulatory Policies Act of 1978 contracts and long-term power purchase agreements.
Case No. IPC-E-13-18. Updating the 2013 IRP peak-hour deficits with the updated load
and contract information from Case No. IPC-E-13-18 results in the deficits shown in
Table 2, below, with the first deficit occurring in July 2013.
TABLE 2
Peak-Hou r Su rpl us/Deficit Charts
(90th Percentile Water and 95th Percentile Load)
Peak-Hour Monthly Deficits with Existing and Committed Resources and Existing Energy Efficiency (2013 IRP with October 2013 Load and
September 2013 CSPP Forecasts)
0
(100)
(200)
(300)
{4o0)
(s00)
=E
(600)
(700)
(800)
(soo)
{1,000)
(1,1m)
(182)
rr9)
otsoooHNoooooooooNdNNNddNd
me6@oooodNdN
d60HN6 NNddooooooNdddNd
IDAHO POWER COMPANY'S APPLICATION .3
4. On October 2, 2013, ldaho Power filed a settlement agreement and
Motion to Approve the same regarding the continuation of its demand response
programs. Case No. IPC-E-13-14. ldaho Power's lRP states that "demand response
programs will be used throughout the planning period to meet resource needs." 2013
lRP, p. 8. Updating the peak-hour deficits shown above in Table 2, which are updated
for the most current load and cogeneration and small power production forecast, with up
to 440 MW of ldaho Power demand response programs results in the peak-hour deficits
shown below in Table 3, with the first deficit occurring in July of 2021.
TABLE 3
Peak-Hou r Su rpl us/Deficit Charts
(90th Percentile Water and 95th Percentile Load)
Peak-Hour Monthly Deficits with Existing and Committed Resources and Existing Energy Efficiency (2013 IRP with October 2013 Load and
September 2013 CSPP Forecasts and Demand Response up to 440 MW)
0
{ 100)
(200)
( 3oo)
(4oo)
( s00)
3
=I 600)
( 700)
(800)
(eoo)
( 1,000)
( 1.100)6S4@N@OO dNoaaoooooNNNddNNN
HHdHHi
iN6n6@ts600HNNddddNdNN666ooooooooooooNNNNdNdNdddd
IDAHO POWER COMPANY'S APPLICATION - 4
III. COMMUNICATIONS AND SERVICE OF PLEADINGS
5. Communications and service of pleadings with reference to this
Application should be sent to the following:
Donovan E. Walker
Regulatory Dockets
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
dwa lker@ idahooower. com
d ockets@ id ahopower. com
Randy A!!phin
Tess Park
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
rallph [e-mail]
tpark2@idahopower. com
IV. CONCLUSION
6. ldaho Power respectfully requests that the Commission issue an order
approving the capacity deficiency period to be utilized in the SAR avoided cost
methodology for ldaho Power as shown in Table 3, above, with a first deficit occurring in
July 2021.
Respectfully submitted this 4th day November 2013.
Attorney for ldaho Power Company
IDAHO POWER COMPANY'S APPLICATION - 5