20160623Angell DI.pdf

RECEIVED
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSTON
IN THE MATTER OE IDAHO POWER
COMPANY' S APPLICATION FOR
APPROVAL OF NEW TARIEE SCHEDULE
63, A COMMUNTTY SOLAR PrLOT
PROGRAM.
CASE NO. IPC-E_16-74
IDAHO POV{ER COMPANY
DIRECT TESTIMONY
OF
DAVID M. ANGELL
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A.
O. Please state your name and business address.
A. My name is Dave Ange11. My business address
is 1227 [riest Idaho Street, Boise, Idaho.
O. By whom are you employed and in what capacity?
A. I am employed by Idaho Power Company ("Idaho
Power" or "Company") as the Planning Manager in the
Customer Operations Engineering and Construction
Department.
Please describe your educational- background.
I graduated in 1984 and 1986 from the
University of Idaho, Moscow, Idaho, receiving a Bachel-or of
Science Degree and Master of Engineering Degree in
Electrical Engineering, respectively. I have provided
electrical engineering instruction for both the University
of Idaho and Boise State University. Most recently I
instructed power system analysis at Boise State University
during the 2009 spring semester.
O.Pl-ease describe your work experience with
Idaho Power.
A. From 1986 to 1996, T was employed by fdaho
Power as an engineer in both communications and protection
systems. In 7996, I became the Engineering Leader of
System Protection and Communications. I hel-d this position
until 2004, when I transferred to Transmission and
Distribution Planning. During the fall of 2006, I accepted
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Idaho Power Company
1 the positions of System Planning Leader and Manager of
2 Delivery Planning. I have been managing Idaho Power's load
3 research, interconnected-transmission system, sub-
4 transmission, and distribution planning since 2A06.
5 Q. What is the purpose of your testimony in this
6 proceeding?
A. The purpose of my testimony is to describe the
8 construction and operational- aspects of the Company's
9 proposed Community Solar Pilot Program ("Program").
10 O. How is your testj-mony organized?
11 A. My testimony is organized as fol-Iows:
72 (1) I provide an overview of the project and the
13 selected location.
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(2) I discuss the request for bid ("RFB") issued
for the construction of the solar array and
the resul-ts.
(3) I describe the interconnection process and
cost to connect the sol-ar array to Idaho
Power's grid.
(4) I discuss the expected energy producti-on of
the facility and the l-ine losses applied to
22 that energy.
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(5) I describe the operational benefits and the
operational learning objectives of the
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Idaho Power Company
Program.
f . Comunity So].ar Froject Overview
O. Please summarize the proposed project.
A. The Company is proposing to build a 500
4 kilowatt ("kW") single-axis tracking solar array in
5 southeast Boise that wil-I offer Idaho Power customers in
6 Idaho the opportunity to buy electricity from a l-ocal solar
7 array. Based on the current timeline and contingent upon
I Commission approval, the Company plans to have the facility
9 built and operational no l-ater than June of 2017.
10 O. Why did the Company choose to build the Sol-ar
11 array in Boi-se?
1,2 A. The Company considered multiple l-ocations
13 around its service territory and evaluated each site based
14 on price, current infrastructure, permitting,
15 constructability, access, and general impacts. Ultimately,
1,6 the land adjacent to Idaho Power's Boise Bench substation
L1 was chosen to be most suitabl-e for the pilot project.
18 O. What factors drove the decj-sion to buil-d at
19 the Boise Bench substation?
20 A. The Company eval-uated each location based on
2t the factors described above to determine which location
22 would result in the l-owest cost imposed upon the project.
23 The l-ocation adjacent to the Boise Bench substation is
24 owned by the Company, is fairly flat, has limited potentlal
25 for other use, is zoned for industrial, is in close
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Idaho Power Company
1 proximity to the engineering staff, and is adjacent to two
2 distribution circuits for interconnection and a substation
3 with significant communications infrastructure. This
4 location mj-nimizes the project cost by eliminating a land
5 purchase and grading, has reduced permj-t requirements,
6 requires minimal distrlbution circuit upgrades, and
7 minimizes engineer and technician travel and communications
8 infrastructure.
O. What permits are required for the construction
10 of this solar array?
11 A. ldaho Power will- be responsible for securing
72 the fol-lowing permits: (1) Federal Aviation Administration
13 ("EiU\") written approval regarding potential refl-ectivity
14 and (2) a Boise City Conditional Use Permit. The FAA
15 application is currently pendlng. The Company will file
16 for the Conditional Use Permit through the City of Bolse.
L7 The selected contractor has dj-scussed permitting
18 requirements with the City of Boise and they believe that
79 they will need the following permits: (1) Boise City
20 Building Permj-t, So1ar, for projects greater than $100,000
2L and 2) Bolse City Electrical Permit, Solar, wiring cost
22 greater than $10,000.
23 II. Rl'B Process and Results
24 O. Please give a high-Ieve1 overview of the
25 Company's RFB process.
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Idaho Power Company
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A. On February 1, 2016, the Company sent an RFB
to a selection of 72 potentj-al bidders for the design,
procurement, and constructlon of a 500 kW single-axis
tracking solar photovoltaic PV system to be built in Boj-se,
Idaho on land owned by Idaho Power. The RFB included
detailed technical specifications and special conditj-ons
that each bidder had to incorporate into their bid
proposal. The Company al-so requested that the respondents
provj-de two bid alternates along with their base bid. The
Company's first alternate bid was for the design,
procurement, and construction of a 500 kW flxed-panel
system. The second alternate bj-d was for a ful-l- site build
out of the base bid.
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the RFB?
How did the Company select the L2 bidders for
A.The Company began compiling a list of
contractors and solar PV installers by consulting with
Idaho Power employees who had relevant in-field experience.
The Company also included one bidder because of awareness
through their participation j-n Idaho Power's long-term
planning process. The Company then verified that al-l of
the companies on the list were either Idaho based, or had
an Idaho presence. The 72 companies that received the RFB
met this condition.
What were the results of the REB?
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Idaho Power Company
O.
1 A. Idaho Power held a mandatory pre-bi-d meetlng
2 on February 18, 2016, in which nine of the L2 bidders
3 attended. The RFB bids were due on March 16, 20L6. Of the
4 nine eligible bidders, the Company received a total of five
5 bids, however, only four of those bids were deemed complete
6 according to the specifications in the RFB documents.
O. How was the successful contractor chosen?
A. Followj-ng the issuance of the RFB, an internal
9 team conducted a thorough eval-uation of each of the bids.
10 The team specifically reviewed the proposed equipment to
11 ensure it conformed to Idaho Power's technical
1,2 specifications. Next, the team analyzed each bid based
13 upon energy cost and a risk assessment of each company to
L4 determine which bid resulted in the least-cost and l-east-
15 ri-sk to Idaho Power, shareholders, and customers.
76 O. What is the cost of the solar array?
t7 A. The cost estimate provided by the selected
18 contractor is $1, 158 ,"7 69.
19 O. Generally describe the equipment to be
20 i-nstalled at the site.
2L A. Based upon the technj-cal specifications in the
22 RFB, the successful contractor has proposed to install
23 1,800 Hanwha Q-cel1s 320 watt solar modules mounted on
24 Array Technologies single-axJ-s tracking mount. The Hanwha
25 Q-ce11s are German-engineered 72-ceLL solar panels which
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fdaho Power Company
t have won a number of performance competitions in real world
2 testing for kilowatt-hour (*kwh") generation versus
3 capacity installed. Array Technologies is the industry
4 leader in small to large utility scal-e tracked mountlng
5 systems. According to the manufacturer, the system
6 requires zero scheduled maintenance. The selected
7 contractor has proposed to use SolarEdge SE33.3k-US
8 inverters for the project. The So1arEdge system utilizes
9 power optimj-zers for every pair of modu1es in the array.
10 This al-lows each module in the array to perform
11 efficiently. Any shade impacts or soillng between modules
L2 are limited to only the modules directly affected.
13 Accordj-ng to the information provided by the selected
L4 contractor, another advantage of the SolarEdge system j-s
15 that they require less wiring compared to string inverters
L6 which reduces wire losses within the array. The inverters
L7 come standard with a l2-year warranty. The optimizers
18 allow for module-l-evel- monitoring. This simplifies
79 operations and maintenance expense by pinpointing any
20 troubl-e spots and a1lows for confirmation at a glance that
2! the array is performing to full- expectations. Module-Ieve1
22 monitoring can reduce costly maintenance work by displaying
23 the exact locati-on of a fai]ure in real-time.
24 O. Has the Company issued a notice to proceed to
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25 the selected contractor?
A.No. The Company will not issue a notice to
2 proceed until the Company receives an Idaho Public
3 Utilities Commission ("Commission") order approving the
4 pilot Program, as well as sufficient program enrollment.
5 fn his testimony, Mr. Pengilly discusses the conditj-ons
6 upon which the Company will- proceed with the project.
o.tr{hen does the Company anticipate commercial-
8 operation of the community solar project?
A.In the RFB, the Company requested that
10 substantial completion of the project occur by May 24, 201,7
11 with a flnal completion date of June 7, 20L7. As
72 indicated above, the Company will not issue a notj-ce to
13 proceed prior to receiving a Commission order; the date of
14 such order may impact the completion dates identified in
15 the RFB.
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III. Interconnection
Pl-ease describe the interconnection process.
Every generation facility that wants to
19 connect to Idaho Power's system must submit an
20 interconnection request consistent with Idaho Power's Open
2l Access Transmission Tariff filed with the Federal Energy
22 Regulatory CommJ-ssion. The request is studied to determine
23 what, if dny, facilities are reasonably required by good
24 utility practices and the National Electri-c Safety Code to
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Idaho Power Company
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i-nterconnect and a1low the delivery of energy from the
generation facility to the Company's system.
O. Did the proposed solar array have to go
through the interconnectj-on process?
A.Yes. Even though the proposed project will be
an Idaho Power-owned resource, the Company had to foll-ow
the required steps for the j-nterconnection process.
o.What were the Facility Study results for the
interconnection of the proposed sol-ar array?
A.On April 21, 2016, the Facility Study was
completed and the preliminary costs for interconnecting the
community solar array are approximately $81,000.
O. Are the interconnection costs included in the
total project costs?
A. Yes. These costs are included in the total-
project costs used to calculate the Program Subscriptj-on
Fee detail-ed in the testimony of Company witness Mr.
Larkin.
IV. E:cpected Solar Energy Production
O. How was the expected energy production for the
project determined?
A.As part of the RFB, the Company requested that
each respondent provide the monthly energy output estimate
for the Typical Meteorological- Year 3 (*TMY3" an hourJ-y
meteorological data set that has natural diurnal and
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Idaho Power Company
1 seasonal variations and represent a year of typical
2 climatic condi.tions for a location over a long period of
3 time) for the first 2A1 years for each option proposed. The
4 energy output estj-mate sha1l take into account single
5 access tracking or fixed panel, inter-row shadi.g,
6 available insolation at the project site, typical weather
7 at project site, typical PV panel degradation, j-nverter
8 conversion efficiency, wiring losses, soiling losses, and
9 mismatch losses.
10 O. What is the expected energy productj-on for the
11 project based upon the criteria mentioned above?
72 A. The average annua.l- energy output provided by
13 the selected contractor is 1,031,000 kWh per year for 20
74 years. The annual output includes a stated performance
15 degradation of 0.6 percent.
!6 O. How did the Company verify that the estimated
l7 production was reasonabl-e for the selected location?
18 A. The Company simulated the energy production
19 using National Renewable Energy Laboratory's (*NREL")
20 PVWatts@ Calculator and NREL's System Advisor Model
27 ("SAM") . Both programs are availabl-e on NREL's website and
22 are widely used by homeowners, small building owners,
' Irrfor*.tion requested in the RFB was
year Program term. Subsequently, the
years based on customer feedback.
based upon the premise of a 20-
Company revised the term to 25
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installers, and manufacturers to estimate the performance
of potential PV installations.
o.Does the estimate of annual energy productlon
from the selected contractor include line losses?
A. No. The energy provided as part of the RFB is
considered generation-IeveI energy.
o.Shou1d line losses be included in the energy
production estimate for programmatic purposes?
A. Yes.
Please explain why they shoul-d be inc1uded.
A portion of the line losses should be
included in the annual energy production to account for the
delivery of the energy from the production location to the
community solar subscriber. The Company determined that
the typical transmission, substation, and primary
distribution losses would be offset as the actual energy
would be consumed by customers on the distribution feeder
in close proximity to the 500 kW community solar project.
However, the distribution secondary losses of 3.3 percent
will not be offset by the local energy production and wil-l
be included in the Program.
O.Please explain how the line losses will- be
incl-uded as part of the Program.
A.As detailed in the testimony of Company
witness Mr. Pengil1y, each program participant will receive
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Idaho Power Company
1 their proportionate share of the tot.al energy based on
2 their 1eve1 of subscription. On a monthly basis the
3 project's total energy, as measured at the meter, will be
4 reduced by the line loss percent discussed above. The
5 resulting energy total also referred to as customer-l-evel
6 energy will be divided among the Program participants
7 commensurate wlth their level- of subscription.
I Q. What is the average annual energy based on
9 expected annua1 output including line losses?
10 A. Apptying the l-ine losses discussed above of
11 3.3 percent to the average annual output of 1,031,000 kwh
12 results in 996,9'7 7 kwh per year.
13 V. Operational Learning Objectives of ttre Pi].ot Progran
L4 O. What operational knowledge is to be gained by
15 offering the Communlty Solar Pilot Program as a pilot?
16 A. The Company intends for this initial offering
77 to be treated as a pilot program for a variety of
18 operational reasons. The Company expects to gain experience
19 with the following:
20 1. The power output of a s j-ngle-axis PV sol-ar
27 facility at the time of the feeder customers' coincident
22 peak demand. This will supplement the prior investj-gation
23 of the effects of solar intensity variations on
24 distribution feeder load and a1low the Company to
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1 incorporate an appropriate on peak capacity factor in its
2 Long-term capacity planning processes.
2. The control of the inverter. The Company has
4 specified the installatj-on of a four quadrant remotely
5 configurable inverter, also known as a smart inverter. The
6 Company needs this experience in advance of integrating
7 many solar PV facilities on the distributj-on system to
8 avoid the voltage management issues that other electric
9 utilities have experienced. Thus, the inverter will be
10 configured to aid with voltage management of the
11 distribution feeder.
L2 3. The monitoring requirements of PV solar and
13 how best to present the j-nformation to the Company's plant
t4 dispatch and technj-cian personneJ-.
15 4. The maintenance and fail-ure rates of PV solar
76 equipment, especially the single-axis tracking system, in
77 order to determine staffing and response requirements.
18 5. The various facility issues that may cause PV
19 sol-ar facilities to underperform. This will- a1low the
20 Company to incorporate an appropriate factor in its long-
2l term planning process.
22 VI. Conc].usion
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O. Please summarize your testimony.
A. The Company is proposing to build a 500 kW
25 single-axis tracking solar array at the Boise Bench
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substation. The project will offer Idaho Power customers
in Idaho the opportunity to buy electricity from a local
solar array. The Company submitted an REB to determine the
cost to build the array. The selected contractor was the
least-cost and least-risk bid of those submitted. The
pilot nature of the Program will al-Iow the Company to gain
operati-ona1 experience with this kind of generation
facility. The Company's anticipated operation daLe,
contingent upon Commission approval, is June 2071.
O. Does this conc1ude your testimony?
A. Yes.
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fdaho Power Company
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STATE
County
oF rDAHO )
)of Ada )
I, David M.
testi-fy truthfully,
state the following:
f am employed by
Manager in the Customer
Construction Department
this proceeding.
ATTESTArIOII OE' TESTIIfi)NY
ss.
Angell, having been duly sworn to
and based upon my personal knowledge,
Idaho Power Company as the Plannj-ng
Operations Engineering and
and am competent to be a witness in
I declare under penalty of perjury of the laws of
the state of ldaho that the foregoing pre-filed testimony
and exhibits are true and correct to the best of my
information and belief .
DATED this 22nd day of June, 20L6.
David
AND SWORN to
M. Angell
before me thj-s 22"d day ofSUBSCR]BED
June, 2016.
JENNIFER MAGETJfl.SEITEB
NOIAHY PUBLIC
STATE OF IDAHO
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Idaho Power Company
y PubLLc {orsiding at: l-b"J4
My commission expires:,/7/tuzt