20161227Harvey Direct Corrected Page 11.pdf

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LISA D. NORDSTROM
Lead Counsel
[e-mail]
December 23, 2016
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
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Re: Case No. IPC-E-16-24
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An IDACORP Company
Recovery of Costs Associated with North Valmy Power Plant -Corrected
Page 11 of the Direct Testimony of Tom Harvey
Dear Ms. Jewell:
In the process of preparing responses to discovery, Idaho Power Company
("Idaho Power") discovered that the answer provided on page 11, lines 12-17 of the
Direct Testimony of Tom Harvey contains incorrect average off-system sales prices.
Idaho Power regrets the confusion that this may cause and assures the Idaho Public
Utilities Commission ("Commission") that the change in testimony has no impact on the
economic analyses performed regarding the operating life of Valmy or the conclusions
presented by Idaho Power in its original filing .
In order to reflect this change, enclosed are nine (9) copies of the corrected
page 11 of Mr. Harvey's testimony. Redlined copies of page 11 are also enclosed for
reference and the Commission's convenience. As noted on the Certificate of Service,
the corrected page has been served on the parties in this case.
If you have any questions regarding the enclosed corrected page or this matter,
please do not hesitate to contact me.
LDN:csb
Enclosures
cc: Service List (w/encls.)
Very truly yours,
Lisa D. Nordstrom
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
1 A. The 2015-2018 action plan recognized in the
2 2015 IRP included ongoing permitting, planning studies, and
3 regulatory filings associated with the B2H transmission
4 line during all four years, and indicated, in 2016, Idaho
5 Power would work with NV Energy to synchronize depreciation
6 dates and determine if a date could be established to cease
7 coal-fired operations. This filing will synchronize
8 depreciation rates between the two companies.
9 Q. How have changes in market energy prices in
10 recent years impacted the value of Idaho Power's surplus
11 energy or "off-system" sales?
12 A. In 2011, the average price Idaho Power
13 received for off-system sales was $24.56 per MW compared to
14 2015 when the average price Idaho Power received for off-
15 system sales was only $19.57 per MW. Moreover, year-to-
16 date 2016, Idaho Power's average price for off-system sales
17 is only $15.77 per MW.
18 Q. How does the decrease in the average price for
19 off-system sales impact Valmy operations?
20 A. The significant decrease in market prices has
21 resulted in a decrease in the number of hours Valmy
22 operates economically, as the dispatch cost is now
23 typically higher than the market price. The following
24 chart details the decrease in Idaho Power's capacity factor
25 at Valmy over the last eight years as a result of the
CORRECTED HARVEY, DI 11
Idaho Power Company
1 A. The 2015-2018 action plan recognized in the
2 2015 IRP included ongoing permitting, planning studies, and
3 regulatory filings associated with the B2H transmission
4 line during all four years, and indicated, in 2016, Idaho
5 Power would work with NV Energy to synchronize depreciation
6 dates and determine if a date could be established to cease
7 coal-fired operations. This filing will synchronize
8 depreciation rates between the two companies.
9 Q. How have changes in market energy prices in
10 recent years impacted the value of Idaho Power's surplus
11 energy or "off-systemu sales?
12 A. In 2011, the average price Idaho Power
13 received for off-system sales was $22 .7124 .56 per MW
14 compared to 2015 when the average price Idaho Power
15 received for off-system sales was only $11 .8219 .57 per MW.
16 Moreover, year-to-date 2016, Idaho Power's average price
17 for off-system sales is only $-8--.--7-615 .77 per MW.
18 Q. How does the decrease in the average price for
19 off-system sales impact Valmy operations?
20 A. The significant decrease in market prices has
21 resulted in a decrease in the number of hours Valmy
22 operates economically, as the dispatch cost is now
23 typically higher than the market price. The following
24 chart details the decrease in Idaho Power's capacity factor
25 at Valmy over the last eight years as a result of the
CORRECTED HARVEY, DI 11
Idaho Power Company
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 23rd day of December 2016 I served a true and
correct copy of the CORRECTED PAGE 11 OF THE DIRECT TESTIMONY OF TOM
HARVEY upon the following named parties by the method indicated below, and
addressed to the following:
Commission Staff
Camille Christen
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-007 4
Micron Technology, Inc.
Thorvald A. Nelson
Frederick J. Schmidt
Emanuel T. Cocian
Brian T. Hansen
HOLLAND & HART, LLP
6380 South Fiddlers Green Circle, Suite 500
Greenwood Village, Colorado 80111
Pete Bennett
Micron Technology, Inc.
8000 South Federal Way
Boise, Idaho 83707
Idaho Irrigation Pumpers Association, Inc.
Eric L. Olsen
ECHO HAWK & OLSEN, PLLC
505 Pershing Avenue, Suite 100
P.O. Box 6119
Pocatello, Idaho 83205
Anthony Yankel
12700 Blake Avenue, Unit 2505
Lakewood, Ohio 44107
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Idaho Conservation League
Benjamin J. Otto
Idaho Conservation League
710 North Sixth Street
P.O. Box 844
Boise, Idaho 83701
Sierra Club
Travis Ritchie
Sierra Club
2101 Webster Street, Suite 1300
Oakland , California 94612
United States Department of Energy and
Federal Executive Agencies
Steven Porter
Office of the General Counsel (GC-76)
The United States Department of Energy
1000 Independence Avenue, SW (Room 6D-033)
Washington, D.C. 20585
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