20140514DeVol DI.pdf

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BEFORE THE IDAHO PUBIIC UTILITIES COMMISSION
IN THE MATTER OE IDAHO POT{ER
COMPANY' S PETITION TO TEMPORARILY
SUSPEND ITS PURPA OBLIGATION TO
PURCHASE ENERGY GENERATED BY
SOLAR-POWERED QUA TFYING
EACILITIES (*QF").
CASE NO.rPc-E-14-09
IDAHO POTflER COMPANY
DIRECT TESTIMONY
OF
PHILIP B. DeVOL
1 Q. Please state your name and busj-ness address.
2 A. My name 1s Philip B. DeVol and my business
3 address j-s L227 West Idaho Street, Boise, Idaho 83102.
4 Q. By whom are you employed and j-n what capacity?
5 A. I am empJ-oyed by Idaho Power Company ("Idaho
6 Power" or "Company") as the Resource Planning l,eader.
7 Q. Please describe your educational background
8 and work experience with Idaho Power.
9 A. In May of 1989, I recej-ved a Bachelor of
10 Science Degree j-n Mathematics from Mlami University in
11 Oxford, Ohio. I then received a Master of Science Degree
12 in Biostatistics from the Unj-versity of Michigan j-n May of
13 1991.
14 O. Please describe your work history at Idaho
15 Power.
1,6 A. I began my emplolrment with Idaho Power in 2001
L7 as an Engineering Specialist in the Water Management
1-8 Department. In this position, I was responsible for
19 modeli-ng of the Idaho Power hydroelectric system for the
20 Integrated Resource Pl-an ("IRP") and relicensing studies.
2L In 2004, I became a Water Management Operations Analyst
22 where I continued to be responsible for hydroelectric
23 system modeling.
24 In 2005, I became a Planning Analyst in the Power
25 SuppJ-y Planning Department. Tn this position, I was
DEVOL, Dr 1
Idaho Power Company
1 responsible for the compilation of Idaho Power's long-term
2 operating plan prepared on a monthly basis as part of the
3 Company's plan for managing risk. My duties in this
4 position also expanded to include the study of wind
5 integration.
6 I became the Power Supply Planning Leader in 2010
7 and Resource Planning Leader in 20L3. My duties in these
I posj-tions have incl-uded project management for the most
9 recent Idaho Power wind integration study.
10 I have been involved in regional and natj-onaI
11 proceedings related to the study of wind J-ntegratj-on. I
72 participated in methodology discussions for the 2007 Wind
13 Integration Action Pl-an produced by the Northwest V[ind
L4 fntegration Eorum. I have attended numerous Utility Wind
15 Integration Group ('UWIG") workshopsr and presented at UWIG
76 workshops in Oklahoma City 1n 2006 and Portland, Oregon, in
77 2007. I also presented to the fdaho lilind V0orking Group at
18 its September 201L meeting. In November of 2013, I
19 presented at a Centre for Energy Advancement through
20 Technological Innovatj-on ("CEATI") workshop focused on
21, forecasting uncertaintj-es for renewable energy supply.
22 I am leading the solar integratj-on study on behalf
23 of Idaho Power.
24 O. What is the purpose of your testimony in this
25 matter?
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A. The purpose of my testimony is to describe the
current solar integration study ("Study") that Idaho Power
is conducting, including the current status of that Study.
O. When did ldaho Power initiate the current
sol-ar j-ntegration study?
A. The official Study kick-off was on August 15,
2013, with the first meeting of the Technical- Revj-ew
Committee (*TRC").
O. Vfhat j-s the TRC?
A.The TRC was formed during the summer of 2073
with the purpose of providing j-nput, review, and guidance
for the Study. It is made up of participants from outsj-de
of Idaho Power that have an j-nterest and/or expertise with
the j-ntegration of intermj-ttent resources onto utility
systems. The TRC consists of: Brian Johnson from the
Universi-ty of Idaho; Jimmy Lindsay from the Renewable
Northwest Project ("RNP") (now with Portl-and General
Electri-c); Kurt Myers from the Idaho National- Laboratory;
and PauI Woods with the City of Boise (now self-employed as
a consultant). In additj-on to the members of the TRC,
Staff from both the fdaho and Oregon commj-ssions are
parti-cipants in the Study. Rick Sterling from the Idaho
Public Utilities Commission Staff, and Brittany Andrus and
John Crider from the Public Utility Commission of Oregon
Staff have participated throughout the Study. Although Mr.
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o.
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Lindsay has left RNP, he wil-1 continue to parti-cipate as a
TRC member. Cameron Yourkowski has been designated by RNP
as Mr. Lindsay's replacement for the TRC. Similarly, Mr.
Woods, although he left employment with the City of Boise
and is now a self-employed consultant, has continued to
serve as a member of the TRC.
How is the Study being conducted?
The conduct of the Study is guided by two
documents that were shared with and discussed with the TRC.
Principles for TechnicaT Review (TRC) Invol-vement in
Studies of VariabTe Generation Integration into ElectricaL
Power Systems was produced by the National Renewabl-e Energy
Laboratory ('NREL") and Utility Variabl-e-generation
Integration Group (*UVIG") . The NREL/IWTG principles
document provj-des guj-dance in deflning the important rol-e
of the TRC in the Study. The second report, The Evol-ution
of Wind Power Integration Studjes: Past, Present, and
Future, was authored by five NREL researchers consj-dered to
be at the forefront of the study of renewable integration
and was published by the Institute of El-ectrical and
Electronics Engineers (*IEEE"). Even though the report was
written from the perspective of wind integration, the
principles remain the same for solar integration. This
report is used as the roadmap for Idaho Power's solar
integration study. So1ar, like wind, is variable and
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uncertain and, consequentl-y, the system of dispatchable
resources has to be operated differently in order to
successfulJ-y integrate the generatlon without compromising
reliability.
o.
A.
What process is the Study following?
The Study is generally following the process
outlj-ned in the IEEE report, which includes: (1) Data
gathering and scenario development; (2) Study analysj-s-a.
statistical-based analysis of solar characteristj-cs, b.
production cost simulatj-on analysis, and c. rel-iability
assessment; and (3) Study conclusions and results.
O. Has the TRC agreed with and been lnvolved wj-th
this process?
A.Yes. Idaho Power has comprehensively walked
through both guiding documents, as wel-1 as the steps
outlined above, with the TRC. Additionally, the importance
of the guiding documents was emphasized to participants of
a May 1-, 2074, public workshop. The TRC has thus far been
extensively involved in the first step: data gathering and
scenario development. The TRC has been integrally involved
wi-th the identification of suitab]e sources of sofar
producti-on data, ds well as discussions leading to the
development of scenarios to be studied. The TRC has a
Ieading role in advising as to the use of a technique to
transform point-source solar data to meaningful production
DEVOL, DI 5
Idaho Power Company
1 data for a solar farm. The technique is called wavelet
2 vartability modeling. The TRC's counsel with respect to
3 Idaho Power's use of the wavelet technique has been
4 important and needed.
5 Q. How has the Study progressed to date?
6 A. The Study has progressed to the point where it
7 is about to commence what j-s identified above as step 2.b,
8 the production cost simulation analysis.
9 One of the larger tasks of step 7, data gathering
10 and scenario development, as noted in the IEEE report, is
11 the undertaking involved with coming up with solar resource
72 data that is needed to model future power output. In fact,
13 the Study's biggest hurdle thus far has been obtaining the
14 solar resource data needed to model sofar power output.
15 The solar build-out scenarios are considering solar farms
16 at six locations j-n southern Idaho: Parma, Boise, Grand
l7 View, Twin Fal-Is, Picabo, and Aberdeen. The Study was abl-e
18 to obtai-n soLar data from the U.S. Bureau of Reclamation
19 Agrj-Met network at the desired five-minute time step for
20 al-l- locations except Grand View. NREL maps indj-cate the
2L area surrounding Grand View and Glenns Ferry has the
22 highest annual- solar intensity in the state. For this
23 reason, Idaho Power and the TRC have felt it is j-mportant
24 to model a sol-ar farm at Grand View. Obtaining five-minute
25 sol-ar data for Grand View has requj-red the acquisitj-on of
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data from SolarAnywhere, which j-s a web-based service from
Clean Power Research providing satellite-derived solar
irradiance data. The Study did not receive data for Grand
View from SolarAnywhere until April, causing delay in the
Study schedule.
V{ith the acquisition of data for the Grand View
area, the Study is nearing completion of step 2.a above,
statistical-based analysis of sol-ar characteristics. Idaho
Power has had correspondence with the TRC regarding the
strategy for statistical-based analysis of the sofar data,
and the Study is nearing completion of this analysis. The
results of this analysis have not yet been presented to the
TRC. It is anticipated that this analysis will be
presented to the TRC for its review in May. The intent of
this analysis is to translate the variability and
uncertainty present in the solar data to an incremental
reserve requj-rement. The NREL authors of the IEEE report
describe this as an analysis to determine the increase in
ancillary servj-ces required by a given solar scenario,
where NREL defines ancillary services as services that help
grid operators maintain bal-ance on el-ectric power systems.
fdaho Power has discussed with the TRC and workshop
participants that the next step is to take the increase in
reserve requirement, or ancil-1ary servj-ces, from step 2.a
for any given sol-ar scenario and to input it into the
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Study's production cost simulations to determine the cost
of carrying increased ancillary services, step 2.b.
O. What is your estimate for when the Study will
be completed?
A.At the August 2013 kickoff of the Study, a
tentative completion of quarter L 2014 was dj-scussed with
the TRC. The most recent communications with the TRC over
the last couple of weeks have been centered around
narrowing the focus of the Study in order to determine
integration costs for photovoltaic solar ("soIar PV")
resources suffi-cient to al-l-ow Idaho Power to have
integration costs necessary for IRP and Public Utility
Regulatory Policies Act of Lg78 cost assumptions for solar
PV resources. Commission Staff has expressed agreement
with thls scope. Because of the use of the two guJ-ding
documents and, in particular, the IEEE report as a road
map, the requj-red steps remaining are well understood by
the TRC and workshop participants. ft is anticipated that
results could be obtained as early as mid-June. However,
because of the col-laborative process with the TRC and Study
participants, Idaho Power is not j-n sole control of
completion and final- results. Furthermore, it is important
to note that while the NREl-authored IEEE report provides a
roadmap, there stil-l- is no one-sj-ze-fits-a11 methodology
for studying variabl-e generation integration. It has been
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my experience that unexpected complexities frequently
arise, making it challenging to designate a firm study
completion date.
O. Did Idaho Power keep any record of attendance
or particJ-pation in the public workshop process for the
Study?
A. Yes. Attached as Exhibit No. 2 to my
testimony is the sign-in sheet for the May 1, 2014, public
workshop that was held for the Study at Idaho Power.
O. What was the nature of the May 7, 2014, public
workshop?
A. A summary and status update of the Study was
given and discussed, incl-udj-ng a methodology overview and
the fact that Idaho Power anticipated Study results could
be avaj-Iable as soon as early summer 201,4.
a. Do you have any lnformation at this point
regarding what cost is associated with sol-ar integration on
Idaho Power's system?
A.I do not have any final- cost numbers or
estimates for solar i-ntegration costs on Idaho Power's
system, as the Study sj-mp1y has not advanced to that point
at this time. I have continually emphasized, and expressly
communicated to the TRC and the Study participants that
Idaho Power has no preconception of solar integration
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costs; i.€., the Company does not have an integration cost
in mind. This was specifically emphasized at the August
15, 2073, kick-off meeting, and again at the most recent
public workshop on May l, 2074.
hlh1le the study of solar integration is relatively
young, especially when compared to the study of wind
integration, I am aware of sol-ar integration studies that
have been conducted for other utility systems. Notable
among these studies are a 2077 sol-ar integration study for
the NV Energy system, a 2072 solar integration study for
Arizona Public Service (*APS"), and a 20L4 solar
integration study for Tucson Electric Power ('TEP"). The
NV Energy study reports integration costs ranging from
$3.OO to $8.00 per megawatt-hours (*MWh") of j-ntegrated
solar generation. The APS study reports integration costs
ranging from about $1.50 to $3.00 per MWh of integrated
sol-ar generation. The TEP study reports an integration
cost of $5.20 per MWh.
0. Does this concl-ude your testimony?
A. Yes.
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ATEESTATION OF TESTIIIONY
STATE OF
County of
IDAHO )) ss.
Ada )
I, Philip B. DeVol, having been duly sworn to
testify truthfully, and based upon my personal knowledge,
state the following:
I am employed by fdaho Power Company as the Resource
Planning Leader in the Water and Resource Planning
Department and am competent to be a witness in this
proceeding.
I declare under penalty of perjury of the laws of
the state of Idaho that the foregoing pre-fil-ed testimony
and exhibit are true and correct to the best of my
information and belief.
DATED this 13th day of May 20L4.
SUBSCRIBED AND SWORN to before me this 13th day of
DEVOL, Dr 11
Idaho Power Company
Philip
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Notary Publ-ic
Residing at:
expr_reMy commission
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-14-09
IDAHO POWER GOMPANY
DeVOL, Dl
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Exhibit No.2
. tPc-E-14-09
P. DeVol,lPC
Page2 of2
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 13th day of May 2014 ! served a true and correct
copy of the DIRECT TESTIMONY OF PHILIP B. DEVOL upon the following named
parties by the method indicated below, and addressed to the following:
Donald L. Howell, ll
Kristine A. Sasser
Deputy Attorneys General
ldaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
Peter J. Richardson
RICHARDSON ADAMS, PLLC
515 North 27th Street
Boise, Idaho 83702
Robert Paul
515 North 27s Street
Bolse, ldaho 83702
Mark VanGulick
P.O. Box 7354
Boise, ldaho 83707
Hand Delivered
U.S. Mail
Overnight Mail
FAXX Email [e-mail]
kris. sasser@ puc. idaho.oov
Hand Delivered
U.S. Mai!
Overnight Mail
FAXX Email [e-mail]
Hand Delivered
U.S. Mail
Overnight Mail
_FAXX Email [e-mail]
Hand Delivered
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FAXX Email [e-mail]
Christa Bearry, Legal Assista
CERTIFICATE OF SERVICE