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HomeMy WebLinkAbout20141023Sterling Direct.pdfBEFORE THE :liici: i''r .' :i ?ilrr0il'f ?3 Pi't 2: 58 IDAHO PUBLIC UrlLlrlES coMMlSiiP,}, f,,.,0i,,';,',ir,,,,- rN THE MATTER OF IDAHO POWER ) coMPANy',S AppLtCATtON TO ) CASE NO. IPC-E-14-18 IMPLEMENT SOLAR INTEGRATION ) RATES AND CHARGES. ) ) ) ) ) DIRECT TESTIMONY OF RICK STERLING IDAHO PUBLIG UTILITIES COMMISSION ocroBER 23, 2014 1 2 3 4 5 6 7 I 9 L0 l_ l_ t2 13 l4 l_5 l-5 a7 18 19 20 21 22 23 24 25 O. Please state your name and business address for the record. A. My name is Rick Sterling. My busj-ness address is 472 West Washington Street, Boise, Idaho. O. By whom are you employed and j-n what capacity? A. I am employed by the Idaho Public Utilities Commission as the Engj-neering Supervisor. a. What is your educational and professional background? A. I received a Bachelor of Science degree in Civil Engineeri-ng from the Unj-versity of Idaho in 1-981 and a Master of Science degree in Civil Engineering from the University of Idaho in l-983. I worked for the Idaho Department of Water Resources Energy Division from 1983 to L994. rn 1988, I became licensed in Idaho as a registered professional Civil Engineer. I began worklng at the Idaho Public Utilities Commission in 1,994. My duties at the Commission include analysis of a wide variety of electric and large water utility applications. In addition, I lead the Engineering Section and supervise a staff of engineers and utility analysts. O. What is the purpose of your testimony in this proceeding? A. The purpose of my testimony is to discuss Idaho Power's request to implement solar integration rates and CASE NO. IPC-E-].4-18 to/23/14 STERLING, R. (Di) ]- STAFF 1 2 3 4 5 6 7 I 9 10 l_1 t2 13 L4 t_5 t5 t7 18 19 20 2L 22 23 24 25 charges. I discuss the Company's 20l-4 Solar Integration Study upon which the request is based, ily participation in and t,he role of the Study's Technical Review Commj_ttee, and Idaho Power's proposal to apply solar integration charges as a component of Schedule 87. O. Do you believe t,here are costs associated with integration of solar generation resources on Idaho Power, s system? A. Yes, I believe there are integration costs associat,ed with all intermj-ttent resources, including solar, because they requj-re Idaho Power to j-ncrease the reserves that must be carried as well as modify how it dispatches its other resources. The utility strives to dispatch its resources in an optimum, least cost manner while sti11 maintaining reliability, and any change in an optimum dispatch imposes additional costs. In addition, operating reserves must be provided from other resources capable of increasing or decreasing dispatchable generation to accommodate rapid changes in non- dispatchable solar generatj-on. a. Why does holding greater operating reserves impose additional costs on the utility? A. Any resource that must be held in reserve cannot be economj-caIIy dispatched. That means that a higher cost mix of resources must sometimes be util-ized, therefore CASE NO. IPC-E-14-18 to/23/14 STERLING, R. (Di) 2 STAFF 1 2 3 4 5 6 7 8 9 10 1l_ 1,2 13 t4 15 l-5 L7 18 L9 20 2L 22 23 24 25 increasing power supply costs. A. Doesn't Idaho Power already have the capability and existing resources to provide the balancing reserves necessary to integrate intermittent resources such as solar and wind? A. Idaho Power certainly already has existing hydro and thermal generation resources that can j-ntegrate a substantial amount of intermittent generation. In fact, there is already approximately 575 MW of Public Utility Regulatory Policies Act (PURPA) wind generation being integrated now, and according to Idaho Power, there is already 50 MW of approved solar contracts in Oregon and 380 MW of new solar generatj-on seeking contracts ln Idaho. However, ds more intermittent solar and wind generation is added to the utility's system, increasing amounts of dispatchable hydro and thermal generation must be held in reserve, forcing Idaho Power to employ a more expensive mix of resources to meet Ioad. At some point, Idaho Power's capacity to integrate intermittent generation will be exhausted and additional dispatchable resources may need to be added. In the meantime, existing resources must simply be held in reserve or dispatched in a more costly, less than optimum manner. O. Do you believe it is reasonable that integration costs associat,ed with solar generation be paid by the CASE NO. IPC-E-]-4-].8 1,0/23/L4 STERLING, R. (Di) 3 STAFF l_ 2 3 4 5 6 7 8 9 l-0 1l- t2 13 14 15 L6 L7 t-8 L9 20 21 22 23 24 25 owners of the solar generation facj-lities, rather than by ratepayers? A. Yes, I do. The solar integration charges proposed to be implemented in this case would be applied to PURPA Qualifying Facilities 19rs). As required by PURPA, avoided cost rates are intended to be set in such a way so that the utility is indifferent as to whether it purchases power from Ehe QF or obtains the power from another source, includj-ng its own generation. Regardless of whether the util-ity obtained the power from another source or generated the power itself, it would almost certainly come from a fu11y dispatchable source for which there would be no associated integration costs. In order for the utility and its ratepayers to remain indifferent, costs of integration should rightfully be borne by the owners of the non-dispatchable resources. a. Have integration charges been j-ncluded before in any solar PURPA contracts in ldaho? A. No, they have not. The Commission has previously approved two sol-ar PURPA contracEs, buE both contracts were subsequently terminated. Neither of the two terminated contracts contained an integration clause. In Grand View Solar I (Case No. IPC-E-LO-17), the Commission noted that the contract executed in 201-0 did not include a solar integration adjustment, but agreed cAsE NO. rPC-E-14-l-8 to/23/1-4 STERLING, R. (Di) 4 STAFF 1 2 3 4 5 6 7 I 9 l_0 11 12 13 1,4 l-5 15 1,7 18 1,9 20 2L 22 23 24 25 wit.h Staff's comments that insufficient data existed to calculate an integration adjustment at that time. In a subsequent 2oll fnterconnecE Solar case (Case Wo. fPC-E- 11-l-0), the Commission acknowledged that. t.here is likely some 1eve1 of integration costs assocj-ated with all intermittent resources such as wind and solar and that such factors should be considered in future power purchase agreements. O. Has the Commission made other recent statements regarding solar integration charges? A. Yes. In Case No. fPC-E-14-09 Idaho Power f il-ed a petition requesting that the Commlssion immediately issue an order temporarily suspending the utility's obligat,ion to purchase energy from solar-powered QFs pending the Company's completion of its 2Ol4 Solar Integration Study. Although the Commission declined to suspend Idaho Power's obligation, it did "direct Ehe utility and its counterparties that their negotiat,j-ons in pursuit of solar contracts using the IRP methodology should include consideration of a solar integration chargre." (Order No. 33043 at, 7) . The Commission further stated "Our guidance to the negotiating parti-es is based in part on PURPA's requirements that avoided cost rates be just and reasonable to the utility's ratepayers and in the public interest. As in the case of wind QFs, utilities CASE NO. IPC-E-]-4-]-8 Lo/23/14 STERLING, R. (Di) 5 STAFF 1 2 3 4 5 6 7 8 9 10 l_1 t2 13 1,4 15 t6 1,7 18 t_9 20 2t 22 23 24 25 j-ncur costs when they must integrate intermittent QF resources into thej-r generation resource stack.,, Id. Fina11y, the Commission stated, rr...we believe that Idaho Power's filing has reinforced our previous view that integration charges should be a part of PPAs, and has adequately demonstrated that there is a pressJ-ng need to address the issue of solar integration charges in solar PPAs under consideration by negotiating parties. " Id. at 8. O. Do you believe that t,he Commission's statements in Case No. IPC-E-14-09 which you just discussed are relevant in this case? A. Yes, I do. I think the Commission's prior statements are an indication that it believes there are j-ntegration costs associated with solar generation and that they should be included in all new solar contracts. Now that Idaho Power has completed its 201,4 Solar Integration Study and quantified the costs, solar integration charges can be included in contracts and not be entirely subject to negotiation. O. Have you reviewed the 2Ol4 So1ar Integrat.ion Study and Report submitt.ed by Idaho Power on June 17, 20L4 in Case No. IPC*E-7-4-09, and presented as Exhibit No. l- to the Dj-rect Testimony of Philip DeVol in support of the Company's Application in this case? CASE NO. IPC-E-14-18 1-o/23/t4 STERLING, R. (Di) 6 STAFF 1 2 3 4 5 5 7 I 9 l-0 l- l- t2 l_3 L4 15 t6 1,7 18 19 20 2L 22 23 24 25 A. Yes, I have reviewed the report. O. Do you believe methods and model used by Idaho Power to estimate solar integration costs are reasonable? A. Yes, I do. For its study, Idaho Power utilized a production cost simulation model which it developed in- house that dispatches the Company's own resources whil-e also acceptj-ng intermittent solar and wind generati-on. Except for the introduction of solar generation, it is my understanding that the model has been adapted from the same model used for the Company's wind integration studies. a. Do you believe that the scenarios considered in the Solar Int,egration Study were reasonable? A. Yes, I do. Four buiLd-out scenarios were studied ranging from l-00 to 700 Mw, with development dispersed amongst six sites throughout Idaho Power's service territory. The scenarj-os were developed in consultation with the Technical Review Committee, based upon the committee members' and Idaho Power's experience and expectations of future solar development. Because several hundred megawatts of development have already been proposed at varj-ous locations, speculation about 1ike1y development scenarios was minimal. O. Idaho Power's 2Ol4 Solar Integration Study Report presents int.egration costs as both "average CASE NO. IPC-E-14-18 1o/23/14 STERLING, R. (Di ) 7 STAFF 1 2 3 4 5 6 7 8 9 l-0 11 t2 t_3 t4 l_5 15 1,7 18 1"9 20 2t 22 23 24 25 integration cost.s per MWh" and as .,incremental J-ntegration costs per MWh." Can you explain the difference between the two? A. "Average integration costs per MWh" is intended to reflect the costs that would be incurred if all costs at each penetration leve1 were spread equally across all MWhs of solar generation; in other words, the costs that would be attributable to all MWHs if costs were assigned equally to all MWhs. Incremental integration cost per MWh is intended to reflect costs attributable to each increment of solar generation. Incremental integratj-on costs assume early projects are assessed lower integration costs and later projects higher costs to reflect the higher cost of integratj-on as larger amounts of solar are added to the system. a. Which set of costs, average or incremental, do you believe should be applied if solar integration costs are approved by the Commission? A. Under an average approach, costs would be j-mposed equally to all solar generation. Under an incremental approach, increasingly higher integration costs would be charged as solar generation increased. Because each additional increment of generation caused higher integration costs, new generation would pay higher integration charges. I support the incremental approach CASE NO. IPC-E-].4-].8 Lo/23/1,4 STERLING, R. (Di) 8 STAFF l_ 2 3 4 5 6 7 I 9 10 11 1,2 13 L4 15 16 t7 18 19 20 2t 22 23 24 25 proposed by Idaho Power for two primary reasons. First, I believe it is fair for the earliest solar projects to be the beneficiaries of lower integration costs and to not have to share in covering higher costs caused by later projects. Second, I think an average approach would be very difficult to administer because it would Iikely require charges for existing contracts to be periodically increased so that all i-ntegration costs could be fu1Iy recovered by the utility. O. Did you participate in the Technical Review Committee? A. Yes, I did. O. What role did you play on t,he Technical Review Committee? A. I was considered an "observer" rather than a fuI1 member of the review committee. As an observer, I was invited to attend all committee meetings, ask questions, participate fuI1y in discussj-ons, and offer suggestions. The only thing I did not do was comment on the draft report. I believed that it would not be necessary or appropriate to comment on the draft report knowing that I would like1y be responsible for submitting comments or testimony at a later date in a formal case. Two staff members from the Oregon Public Utility Commission also participated as observers, although they CASE NO. IPC-E-14-18 to/23/1,4 STERLING, R. (Di) 9 STAFF 1 2 3 4 5 6 7 8 9 t-0 11 t2 13 l4 15 15 1,7 t_8 1,9 20 2L 22 23 24 25 did not. attend any committee meetings in person or acti-ve1y participate in discussions. O. Do you believe the Technj-ca1 Review Committee was useful? A. Yes, I believe it was very useful. Each of the Technical Revj-ew Committee members offered expertise and different points of view that helped influence how Idaho Power performed the study. O. Do you believe Idaho Power seriously listened t.o members of the Techni-ca1 Review Committee? A. Yes, f do. I believe many decisions Idaho Power made about assumptions and methods of analysis were based in large part on input provided by the committee. Committee members were also instrumental in advising the Company on sources of data, ds well as in constructing realistic scenarios for the size and locations of possible future development. O. Can you give an example? A. Yes, I can. At one of the first committee meetlngs, I raised questions about whether solar irradiance data collected at a single point, would be representative over a much broader area encompassed by a typical large photovoltaic project, due to cloud cover potentially affecting only porti-ons of the project but not others. This prompted another committee member to suggest cAsE NO. IPC-E-L4-18 1o/23/14 STERLTNG, R. (Di) 10 STAFF 1 2 3 4 5 6 7 8 9 l-0 1l_ t2 13 L4 l-5 1"6 t7 18 t9 20 2t 22 23 24 25 Idaho Power investigate "wavelet variability modellng', that was being researched at other places in the country. After investigating the research, Idaho Power adapted and incorporated the modeling techniques for its own study. By using wavelet variability modeling, the impacts of partial cl-oud cover were moderated, indicating fewer reserves were needed for integrating solar. O. Do you believe members of the Technical Review Commj-ttee had adequate opportunity to comment? A. Yes, at least initially. In the early stages of the process, the Technical Review Committee met three times as the study progressed. One publj-c workshop was also he1d. However, in the final production cost modeling stage of the study, and once the draft report was prepared, Idaho Power greatly expedited the process. fdaho Power maintained that there was an urgency to complete the study because the Company was being inundated with requests for new solar projects and it wanted to be able to address integration costs in any new contracts that might emerge. The Technj-ca1 Review Committee met twice over about a two week period, just prior to the draft report being prepared. While Technical Review Committee members could sti11 provide input and ask questions, they sometj-mes had to do it using email or phone caIls. fn addition, the two week time period CASE NO. IPC-E-14-18 Lo/23/14 STERLING, R. (Di ) 11 STAFF 1 2 3 4 5 5 7 8 9 10 11 12 l_3 t4 15 t6 t7 18 1,9 20 2L 22 23 24 25 allotted for review of the draft report prior to submitting it to the Commission seemed quiEe short. O. Do you believe there is a need for additional study of solar integration by Idaho Power in the future? A. Yes, f do. The Technical Review Committee raised numerous issues that I believe would be worthwhile to investigate further in subsequent integration studies. Many of those issues have been identified in the Solar Study. I see the 20L4 Solar Integration Study as a reasonable first step, but believe further improvements to future st.udies are possible. In the meantime, however, I believe the 2Ol4 Solar Study is a reasonable basis for the solar integration charges proposed in Schedule 87. O. Idaho Power proposes to apply the results of its solar integration study as tariff-based charges applied to all energy generated by PURPA Qualifying Facilities, i.€., Schedule 87. Do you agree with the tariff approach proposed by the Company? A. Yes. Idaho Power's approach as proposed in Schedule 87 j-s identical to the approach proposed for wind integration charges. Schedule 87 for wind integration charges was recently approved by the Commission in Order No. 33150 issued on Oct.ober 10, 201-4. O. Idaho Power's proposed solar integration tariff includes options for the charges to be either levelized or CASE NO. IPC-E-14-181o/23/t4 srERLrNG, R. (Di) 1-2 STAFF 1 2 3 4 5 6 7 8 9 10 1t_ t2 13 t4 15 t6 1,7 18 1,9 20 2L 22 23 24 25 non-Ieve1ized. Do you agree that both options should be offered? A. Yes, both levelized and non-level-ized avoided cost rates are offered, and both are also provided for wind i-ntegration charges. To be consj-stent, Ieve1lzed and non-levelized options should also be offered for solar integration charges. O. Have the lntegration charges been properly levelized in your opinion? A. Although Idaho Power has correctly levelized the charges mathematically, I prefer that the discount rate used to perform the levelization be the same as the discount rate use in the SAR modeI. In addition, in recently approving wind integration charges for Idaho Power (See Order No. 33150), the Commission accepted Staff's recommendation to use the same discount rate for levelizing wind integration charges as is used in the SAR mode1. For consistency sake, I believe the same discount rate should be used for levelization of solar integration charges, wind i-ntegrati-on charges, and avoided cost rates for PURPA projects. That discount rate is currently 8.1-8 percent.. It represents Idaho Power's weighted cost of capital from its last litigated general rate case, IPC-E- 08-10, Order No. 30722. O. Have you prepared an exhibit showing what the CASE NO. IPC-E-14-18 1,0/23/14 STERLING, R. (Di) 13 STAFF t_ 2 3 4 5 6 7 I g l_0 1L L2 13 1,4 15 t5 1,7 18 t9 20 2t 22 23 24 25 levelized solar integration charges would be if an 8.18 percent. discount rate were used? A. Yes, those integration charges are attached as Exhibit No. 101. O. Does changing the discount rate have a big impact on the levelized solar integration charges? A. No, the difference is very smalI, in part, because the proposed integration charges are relatj-veIy Iow. For example, for a penetration l-evel of 501-500 MW and a 20]-4 online date, the difference is a decrease of $0.06 per MWh. Despite the small differences, however, Staff believes consistency throughout the levellzatlon process for both integration charges and avoj-ded cost rates is J-mportant and helps minimize uncertainty. O. Do you believe it is reasonable to impose solar integration charges now on QFs, knowing it is likeIy that J-ntegrati-on operational practices and technology will i-mprove in the future? A. Yes, I believe it, is reasonable. No one can rea11y be certain how or when technology might change. For example, energy st,orage technology will 1ikely improve and costs are bound to come down, but it is not possible to know if that w111 happen soon or many years in the future. Similarly, operat,ional practices and market changes may develop, making integration of intermittent CASE NO. IPC-E-14-18 L0/23/14 STERLING, R. (Di) L4 STAFF 1 z 3 4 5 6 7 8 9 10 l-1 1,2 13 t4 15 1"6 L7 18 t9 20 21 22 23 24 25 generat,ion easier and cheaper. At t,he same time, however, the penetration of intermittent generation, particularly solar, is 1ike1y to increase rapidly, presenting even great,er integration challenges. f believe that in the same way we must make our best effort to estimate avoided cost rates 20 or more years int,o the future, that we must also do the same to estimate integration costs. a. How do you suggest that Idaho Power accommodate changes to solar integration charges going forward? A. As solar integration costs change in the future and based on updated integration studies, I recommend that Idaho Power make application to the Commission for changes to Schedule 87 , just as it does for its other tariffs. Under Idaho Power's proposal, however, the integration charges that are in effect at the time a contract is signed will remain unchanged for the durat.ion of the contract. The new, revj-sed integration charges will only apply to new contracts. O. Idaho Power recently received approval in Order No. 33L50 for a wind integration tariff. Is the Company's proposed solar i-ntegration tariff similar? A. Yes, Idaho Power proposes to incorporate both wind and solar integration charges in Schedule 87. The format and application of the solar integration charges would be identical to that of the approved wind CASE NO. IPC-E- ]-4 - 18 Lo/23/t4 srERLrNG, R. (Di) 15 STAFF L 2 3 4 5 6 7 I 9 l-0 l_ l_ 1,2 13 t4 15 L5 L7 18 19 20 2t 22 23 24 25 integration charges. The only difference would be in the numbers t.hemselves. O. Do you believe it is J-mport,ant to implement a solar integration charge as soon as possible, or should the Commission wait until there are actual solar generat.ion facilities on Idaho Power's system? A. I belj-eve solar integration charges should be implemented as soon as possible, before there are many solar facilities operating. Idaho Power has recently signed six PURPA contracts for 60 MW in Oregon. There are currenLly two proposed large solar PURPA contracts j-n Idaho pendlng before the Commission that contain negotiated provisions for integration charges. One contract is for an 80 MW facility and the other j-s for a 40 MW facility. In addition, Idaho Power is currently seeking approval of 11 PURPA solar contracts comprisj-ng 281 MW of capacity, each of which contaj-n integrat.ion charges negotiated pursuant to the Commission's directive in Order No. 33043. The negotiated rates are similar to those in the proposed Schedule 87. The longer we wait. before imposing integration costs on intermittent generators, the more integration cost will be borne by ratepayers. a. What is your recommendation in this case? A. I recommend that the Commission issue an order adopting solar integratJ-on charges as proposed by Idaho CASE NO. IPC-E-14-18 REVTSED to/28/t4 STERLING, R. (Di) L6 STAFF l_ 2 3 4 5 6 7 8 9 10 l_ l_ t2 13 t4 15 15 t7 18 L9 20 2L 22 23 24 25 Power, with the exception that the levelized solar integration charges be computed using the same discount rates used to levelize the utility's wind integration charges and to levelize avoided cost rates in the SAR methodology. O. Does thls conclude your direct testimony in this proceeding? A. Yes, it does. CASE NO. IPC-E-14-18to/23/L4 STERLING, R. (Di) 17 STAFF 0 - 100 MW Solar Capacity Penetration Level LEVELIZED ON-LINE YEAR 20 YEAR CONTRACT TERM LEVELIZED RATES 2014 2015 2016 2017 2018 2019 0.54 0.56 0.58 0.59 0.61 0.63 NON.LEVELIZED CONTRACT YEAR NON. LEVELIZED RATES 2014 2015 2016 2017 2018 2A19 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 0.43 0.44 0.46 0.47 0.48 0.50 0.51 0.53 0.54 0.56 0.58 0.60 0.61 0.63 0.65 0.67 0.69 0.71 0.73 0.75 0.78 0.80 0.82 0.85 0.87 0.90 Exhibit No. l0l rPC-E-14-18 R. Sterling, Staff l0l23ll4 Page I of 7 101 - 200 MW Solar Capacity Penetration Leve! LEVELIZED ON-LINE YEAR 20 YEAR CONTMCT TERM LEVELIZED RATES 2014 2015 2016 2017 2018 201 I 1.49 1.53 1.58 1.63 1.68 1.73 NON.LEVELIZED CONTMCT YEAR NON- LEVELIZED RATES 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 1.18 1.22 1.25 1.29 1.33 1.37 1.41 1.45 1.50 1.54 1.59 1.63 1.68 1.73 1.79 1.84 1.89 1.95 2.01 2.07 2.',|3 2.20 2.26 2.33 2.40 2.47 ExhibitNo. 101 IPC-E-14-18 R. Sterling, Staff l0l23ll4 Page 2 of 7 201 - 300 MW Solar Capacity Penetration Level LEVELIZED ON-LINE YEAR 20 YEAR CONTRACT TERM LEVELIZED RATES 2014 2015 2016 2017 2018 2019 2.32 2.39 2.46 2.54 2.61 2.69 NON.LEVELIZED CONTRACT YEAR NON- LEVELIZED RATES 2014 2015 2016 20't7 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 1.84 1.89 1.95 2.01 2.07 2.13 2.20 2.26 2.33 2.40 2.47 2.55 2.62 2.70 2.78 2.87 2.95 3.04 3.13 3.23 3.32 3.42 3.52 3.63 3.74 3.85 ExhibitNo. 101 IPC-E-14-18 R. Sterling, Staff l0l23ll4 Page 3 of 7 301 - 400 MW Solar Capacity Penetration Level LEVELIZED ON.LINE YEAR 20 YEAR CONTRACT TERM LEVELIZED RATES 2014 2015 2016 2017 2018 2019 3.12 3.22 3.32 3.41 3.52 3.62 NON.LEVELIZED CONTMCT YEAR NON. LEVELIZED RATES 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2.48 2.55 2.63 2.71 2.79 2.87 2.96 3.05 3.14 3.23 3.33 3.43 3.53 3.64 3.75 3.86 3.97 4.09 4.22 4.34 4.47 4.61 4.75 4.89 5.03 5.19 Exhibit No. 101 [PC-E-14-18 R. Sterling, Staff l0l23l14 Page 4 of 7 401 - 500 MW Solar Capacity Penetration Level LEVELIZED ON-LINE YEAR 20 YEAR CONTMCT TERM LEVELIZED RATES 2014 2015 2016 2017 2018 2019 3.94 4.06 4.18 4.31 4.44 4.57 NON.LEVELIZED CONTRACT YEAR NON- LEVELIZED RATES 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 3.12 3.22 3.31 3.41 3.52 3.62 3.73 3.84 3.96 4.08 4.20 4.32 4.45 4.59 4.72 4.87 5.0'1 5.16 5.32 5.48 5.64 5.81 5.98 6.16 6.35 6.54 Exhibit No. 101 IPC-E-14-18 R. Sterling, Staff l0l23ll4 Page 5 of 7 50{ - 600 MW Solar Capacity Penetration Level LEVELIZED ON.LINE YEAR 20 YEAR CONTRACT TERM LEVELIZED RATES 2014 2015 2016 2017 2018 2019 4.76 4.91 5.05 5.21 5.36 5.52 NON.LEVELIZED CONTRACT YEAR NON- LEVELIZED RATES 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2425 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 3.78 3.89 4.01 4.13 4.25 4.38 4.51 4.64 4.78 4.93 5.07 5.23 5.38 5.55 5.71 5.88 6.06 6.24 6.43 6.62 6.82 7.02 7.24 7.45 7.68 7.91 Exhibit No. 101 IPC-E-14-18 R. Sterling, Staff L0l23ll4 Page 6 of 7 601 - 700 MW Solar Capacity Penetration Level LEVELIZED ON-LINE YEAR 20 YEAR CONTRACT TERM LEVELIZED RATES 2014 2015 2016 2017 2018 2019 5.54 5.71 5.88 6.06 6.24 6.43 NON.LEVELIZED CONTRACT YEAR NON. LEVELIZED RATES 2014 2015 2016 2017 2018 20't9 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 4.39 4.53 4.66 4.80 4.95 5.09 5.25 5.40 5.57 5.73 5.91 6.08 6.26 6.45 6.65 6.85 7.05 7.26 7.48 7.70 7.94 8.17 8.42 8.67 8.93 9.20 Exhibit No. l0l IPC-E-14-18 R. Sterling, Staff l0l23ll4 PageT of 7 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 23'd DAY OF OCTOBER 2014, SERVED THE FOREGOING DIRECT TESTIMONY OF RICK STERLING, IN CASE NO. IPC-E.14.I8, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE FOLLOWING: DONOVAN E WALKER REGULATORY DOCKETS IDAHO POWER COMPANY PO BOX 70 BOrSE ID 83707-0070 E-mail : dwalker@ idahopower.com dockets@idahopower.com BENJAMIN J OTTO ID CONSERVATION LEAGUE 7IO N 6TH STREET BOISE ID 83702 E-mail: botto@idahoconservation.org DEAN J MILLER McDEVITT & MILLER LLP 420 W BANNOCK ST BOISE ID 83702 E-mail: joe@mcdevitt-miller.com MICHAEL J YOUNGBLOOD GREG SAID IDAHO POWER COMPANY PO BOX 70 BOrSE rD 83707-0070 E-mail: myounsblood@idahopower.com ssaid@idahopower.com KEN MILLER SNAKE RIVER ALLIANCE BOX 1731 BOISE ID 8370I E-mail: kmiller@snakeriveralliance.org MATT VESPA SIERRA CLUB 85 SECOND STREET 2ND FL SAN FRANCISCO CA 94105 E-mail : matt. vespa@ sierraclub.org CERTIFICATE OF SERVICE