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HomeMy WebLinkAbout20161108Angell Direct.pdfRECEI VED 201& NOV -8 PM 4: 05 : -~ ,°_i • 1 I :usuc :. ·T r_:·; CO ~ .• 4ISS10N BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY'S APPLICATION FOR A ) CERTIFICATE OF PUBLIC CONVENIENCE ) AND NECESSITY TO CONSTRUCT SYSTEM ) IMPROVEMENTS TO SECURE ADEQUATE ) AND RELIABLE SERVICE TO CUSTOMERS ) IN THE WOOD RIVER VALLEY. ) _________________ ) CASE NO. IPC-E-16-28 IDAHO POWER COMPANY DIRECT TESTIMONY OF DAVID M. ANGELL 1 2 Q. A. Please state your name and business address. My name is David Angell. My business address 3 is 1221 West Idaho Street, Boise, Idaho 83702. 4 5 Q. A. By whom are you employed and in what capacity? I am employed by Idaho Power Company ("Idaho 6 Powern or "Companyn) as the Planning Manager in the 7 Customer Operations Engineering and Construction 8 Department. 9 10 Q. A. Please describe your educational background. I graduated in 1984 and 1986 from the 11 University of Idaho, Moscow, Idaho, receiving a Bachelor of 12 Science Degree and Master of Engineering Degree in 13 Electrical Engineering, respectively. I have provided 14 electrical engineering instruction for both .the University 15 of Idaho and Boise State University. Most recently, I 16 instructed power system analysis at Boise State University 17 during the 2009 spring semester. 18 Q. Please describe your work experience with 19 Idaho Power. 20 A. From 1986 to 1996, I was employed by Idaho 21 Power as an engineer in both communications and protection 22 systems. In 1996, I became the Engineering Leader of 23 System Protection and Communications. I held this position 24 until 2004, when I transferred to Transmission and 25 Distribution Planning. During the fall of 2006, I accepted ANGELL, DI 1 Idaho Power Company 1 the positions of System Planning Leader and Manager of 2 Delivery Planning. I have been managing Idaho Power's 3 interconnected-transmission system, subtransmission, and 4 distribution planning and strategies since 2006. 5 Q. What is the purpose of your testimony in this 6 proceeding? 7 A. My testimony will provide a detailed 8 description of Idaho Power's need to construct a new 9 transmission line in the Wood River Valley, and provide the 10 background and rationale for the Company coming to this 11 decision. The Company must construct facilities between 12 substations in Hailey and Ketchum to meet its continuing 13 obligation to provide adequate and reliable service to its 14 customers located in the Wood River Valley north of East 15 Fork Road, including the communities of Ketchum and Sun 16 Valley (collectively "North Valley"). Today, beyond the 17 continuing requirement to serve the Wood River Valley's 18 growing load, there are two compelling reasons that now 19 require the construction of such facilities: (1) the 20 increased reliability provided by a redundant source of 21 energy and (2) the need to reconstruct the existing and 22 aging 138 kilovolt ("kV") radial transmission line without 23 long-term disruption of service to the North Valley. 24 has been significant public outreach, discussion, 25 opposition, as well as support to the proposed line ANGELL, DI There 2 Idaho Power Company 1 routings . Consequently , the Company is requesting an order 2 from the Idaho Public Utilities Corrunission ("Corrunission " or 3 "IPUC") affirming that the public convenience and necessity 4 requires construction of the new 138 kV line . 5 6 Q. I . BACKGROUND Please describe the area and conditions that 7 currently exist in the North Valley area . 8 A. The North Valley contains the resort 9 corrununities of Ketchum and Sun Va l ley and the Sun Vall ey 10 ski resort . Idaho Power serves over 9 ,100 customers in the 11 North Valley . The peak demand reached 63 megawatts ("MW") 12 during the winter of 2007 , with more recent peak demands 13 still exceeding 54 MW . The local population , typical of a 14 resort corrununity , increases during the peak tourist seasons 15 of surruner and winter , with high winter peak demand . 16 The North Valley customers are served by two 17 substations , one located in Ketchum and the other in the 18 Elkhorn Valley with i n Sun Valley city limits . These two 19 substations are connected to the Idaho Power transmission 20 grid by a single , 12 .4 mile , 138 kV transmission line from 21 the Wood River substation in Hailey . The transmission line 22 was built in 1962 with wooden po l es . Access to repair the 23 line is impeded by residential development , rough terrain , 24 and aged construction roads in many areas. The mountainous 25 terrain limits vehicle access , impedes equipment set -up and ANGELL , DI 3 I daho Power Company 1 contributes to avalanche threats. This line's access 2 limitations may result in extended outages for line 3 conductor, insulator, or structure failures caused by, 4 among other things, vandalism, inclement weather, wood 5 decay, woodpecker damage, avalanche, fire, and micro-burst 6 wind events (collectively "Line Events"). Power outages 7 caused by avalanche, fire, and other natural events also 8 negatively impact the emergency and life safety response 9 activities that are critical during these events. 10 11 II. COMMUNITY OUTREACH AND PUBLIC PARTICIPATION Q. Has the Company addressed the need for 12 providing a redundant second transmission source into the 13 North Valley with residents of the North Valley? 14 A. Yes. In fact, Idaho Power and North Valley 15 residents have partnered together for several decades to 16 determine the best approach for meeting the valley's 17 electric demands. One example of that partnership occurred 18 in the mid-1990s. Prior to that partnership, Idaho Power 19 had received a Certificate of Public Convenience and 20 Necessity ("CPCN") from the Commission to construct a 21 second line between Hailey and Ketchum to improve 22 reliability and reduce the risk of extended outages.1 23 However, after receiving opposition during the public 24 participation process, Idaho Power agreed to place the 1 IPUC Case No . U-1006-89 , Order No . 11315 . ANGELL, DI 4 Idaho Power Company 1 project on hold and reanalyze the need at a later date. 2 The reasons for opposition included the difficulty of 3 finding an acceptable route for the transmission line, 4 aesthetic impacts, health and safety concerns, and the cost 5 of burying part or all of the line. 6 Q. Has the Company continued its outreach and 7 public participation with its customers in its service 8 territory and in the Wood River Valley region? 9 A. Yes. First allow me to discuss Idaho Power's 10 process for involving communities in the transmission and 11 substation planning process. In 2004, Idaho Power 12 initiated several Community Advisory Committees ("CAC") and 13 undertook a comprehensive, cooperative transmission 14 planning exercise with the communities and leaders across 15 its service territory, including the Wood River Valley. 16 Idaho Power has completed seven CAC processes across its 17 service territory. These committees were created to 18 provide a cooperative effort between the Company and the 19 communities it serves in developing an outline for 20 prioritized improvements and additions to the Company's 21 transmission and substation infrastructure. Each committee 22 was created from and reviewed a specific geographic region. 23 The committees formed to date have been from the Treasure 24 Valley (three committees), Wood River Valley, Magic Valley, 25 Eastern Idaho, and West Central Mountains (Adams, Boise, ANGELL, DI 5 Idaho Power Company 1 and Valley Counties). Each of these committees was 2 composed of elected officials, jurisdictional planners, 3 civic leaders, business leaders/developers, and residents. 4 Each committee met on a monthly basis with each session 5 lasting most of a day. The process included educational 6 sessions that began with a bus tour of Idaho Power 7 facilities. The committees were presented with a view, 8 from production to delivery, of Idaho Power's electrical 9 system, including an introduction to electric generation, 10 substations, transmission, demand-side management, and 11 electric utility regulation. The committees then developed 12 a list of goals and siting criteria that would guide them 13 in their plan development. The committees were presented 14 with growth statistics and anticipated load data of their 15 respective areas based on the planned build-out of their 16 respective communities. Using the information and 17 education gained through these meetings and the knowledge 18 and objectives of local development, the committees laid 19 out proposed transmission line paths and substation sites. 20 The committees then determined a preferred plan by 21 consensus, with some alternatives identified. This process 22 of education and development of the plan took just over a 23 year and was the result of hundreds of hours of involvement 24 from the community. 25 ANGELL, DI 6 Idaho Power Company 1 Q. How was community interaction conducted in the 2 Wood River Valley? 3 A. In 2007, a CAC was convened which developed 4 the Wood River Valley Electrical Plan ("WREP"), a 5 comprehensive plan for future transmission facilities in 6 the Wood River Valley, including the North Valley area. I 7 have provided a copy of the WREP as my Exhibit No. 2. The 8 WREP is also available publicly on Idaho Power's website. 9 The 19-member CAC included regional transportation and 10 growth planners, various city and county officials, 11 representatives from the Bureau of Land Management, the 12 United States Forest Service, special interest groups, 13 business leaders, and residents. The CAC met monthly to 14 learn about electrical systems, review alternatives to meet 15 the valley's needs, and develop a plan to serve the 16 electrical needs of the valley going forward. The process 17 was thorough and exhaustive. At the conclusion of the 18 review in late 2007, the CAC developed the WREP, which 19 recommended that Idaho Power move forward with a series of 20 projects, including: (1) construction of a North Valley 21 project and (2) construction of a third 138 kV line in the 22 south valley. 23 Q. With regard to the WREP's recommendation for 24 the construction of a third 138 kV line in the south 25 valley, what is the status of that project? ANGELL, DI 7 Idaho Power Company 1 A. Idaho Power is not able to develop the third 2 138 kV transmission line in the south valley due to the 3 proposed route residing within core sage grouse habitat as 4 defined in the Idaho Governor's Greater Sage Grouse 5 Conservation Strategy. Without the ability to site this 6 third transmission line, Idaho Power initiated the 7 replacement of the King to Wood River 138 kV transmission 8 line with new larger conductor and steel towers. The 9 construction of this replacement began this summer and will 10 be approximately halfway complete in 2016. The 11 construction activity is going well and the replacement is 12 scheduled to be complete next year. This replacement line, 13 in combination with the prior modification to the Midpoint 14 to Wood River 138 kV line, will provide increased capacity 15 and reliability to the Wood River substation in Hailey. 16 Q. Did Idaho Power continue to meet with the CAC 17 and/or the North Valley community following the development 18 of the WREP? 19 A. Yes. The Company has more than 100 documented 20 communications; i.e., meetings and letters with city 21 officials, presentations to committees, open houses, 22 meetings with residents and subdivisions, etc., regarding 23 potential transmission siting in and around the North 24 Valley from 2007 to the present, in addition to the 25 ANGELL, DI 8 Idaho Power Company 1 numerous other informal discussions, phone calls, and 2 contacts about this matter. 3 Q. How was the WREP received by the Wood River 4 Valley residents? 5 6 WREP. A. In general, support was expressed for the Improvements to the transmission system south of t h e 7 Wood River substation (to the "King-Wood River" 8 transmission line and the "Silver" transmission line) 9 received strong support. Support for the proposed 10 redundant 138 kV transmission line between the Wood River 11 substation and Ketchum was mixed, but with a majority in 12 favor. Some individuals remained unconvinced of the need 13 for a redundant transmission line, or suggested that 14 redundancy could be provided through other alternatives. 15 Q. Based upon feedback from the public 16 presentations, were any changes made to the original WREP? 17 A. Yes. In 2010 and 2011, the Company reconvened 18 the CAC to further refine the WREP. At those meetings, the 19 Company and the CAC discussed detailed sizing pole heights, 20 reconstruction of existing lines, and alternatives to avoid 21 or reduce potential new visual and physical impacts that 22 may be caused by the development of the proposed redundant 23 138 kV transmission line between the Wood River substation 24 and Ketchum. Early in 2011, the CAC convened to further 25 discuss alternative line routes for the redundant line; ANGELL, DI 9 Idaho Power Company 1 specifically, options for both overhead and underground 2 installation of the redundant line from the St. Luke's 3 Hospital area to the Ketchum substation. 4 The CAC was convened again in 2012 to learn new 5 information about the potential impact to core sage grouse 6 habitat that may be caused by recommended improvements in 7 the Burmah area of the southeast section of the existing 8 electrical system. Because sage grouse were currently 9 under federal review for potential listing as an endangered 10 species, Idaho Power informed the CAC that the 11 recommendations for a third 138 kV transmission line in the 12 south valley could not be implemented and that Idaho Power 13 would instead undertake the replacement of the King to Wood 14 River 138 kV line, as I have previously discussed. 15 Q. Were additional presentations to the public 16 made to present the refined WREP? 17 A. Yes. While the CAC preferred to have the 18 redundant line buried from the St. Luke's Hospital area to 19 the Ketchum substation, concern was expressed about public 20 support for the local incremental cost of undergrounding 21 any or all of this section. Therefore, subsequent 22 presentations included options for both overhead and 23 underground construction. 24 Over several months in 2012, members of the planning 25 team conducted more than 40 meetings with individuals, ANGELL, DI 10 Idaho Power Company 1 small groups, adjacent neighborhoods, homeowner 2 associations, affected property owners, business owners, 3 and other stakeholders. The purpose of the meetings was to 4 inform them of the WREP, provide high-level cost estimates 5 for the project, review redundant line route alternatives, 6 discuss Local Improvement District ("LID") boundaries for 7 the collection of incremental costs that may result from 8 choosing higher-cost underground alternatives, and to 9 gather input from the public. 10 Late in 2012, the CAC was reconvened to provide 11 additional input to the planning team regarding the format, 12 content, applicable visual aids, and supporting materials 13 for upcoming public open house events. Three public open 14 house events were held in December 2012; one each in 15 Hailey, Sun Valley, and Ketchum, to present the refined 16 WREP, and to identify the proposed routes and high-level 17 cost estimates. Proposed boundaries and approximate 18 property owner costs for the LID to fund the incremental 19 local cost for the underground portion of a redundant line 20 were included. Reaction to the plan was largely positive; 21 however, some individuals still questioned the need for the 22 redundant line, as well as the potential cost to local 23 property owners. Some individuals expressed opinions that 24 the reliability history of the existing transmission line 25 did not warrant a redundant line or that redundancy could ANGELL, DI 11 Idaho Power Company 1 be accomplished using renewable energy resources. Strong 2 opposition was widely expressed for any new overhead 3 transmission lines north of the St. Luke's Hospital area. 4 Q. What was the Company's response to the 5 suggested alternatives and expressed concerns regarding the 6 visual impacts of overhead transmission lines? 7 A. The Company's initial response to a number of 8 inquiries from the City of Ketchum and the Ketchum Energy 9 Advisory Committee ( "KEAC") was to meet with members of the 10 KEAC and city representatives in late 2013 to further 11 explain the WREP in greater detail, including the proposed 12 redundant line, project cost estimates, and local 13 incremental costs for the underground sections. The KEAC 14 was formed in 2013 to evaluate and provide input to the 15 City of Ketchum regarding concerns for future energy 16 security. The discussions included inquiries from the 17 KEAC, including a request for a cost/benefit analysis, 18 consideration of potential alternatives to the redundant 19 line, and opportunities to bury existing distribution lines 20 in Ketchum in coordination with the proposed redundant line 21 underground construction. 22 In response to inquiries from both the City of 23 Ketchum and the KEAC, in late 2014, the Company invited 24 representatives from both entities to join the CAC to 25 investigate the possibility of any new alternatives to the ANGELL, DI 12 Idaho Power Company 1 proposed redundant line. The "updated" CAC was convened 2 twice in late 2014. 3 Q. Were there any new alternatives provided to 4 the CAC in 2014? 5 A. Yes. In response to some of the expressed 6 concerns for a redundant transmission line, the Company did 7 introduce to the CAC a potential new alternative that would 8 provide historical load backup power if the existing 9 transmission line was out of service. The term 10 "historical" here meant the current existing load, and 11 reflected the concept of a distribution alternative to 12 provide redundant electric service, or more specifically, 13 60 MW of capacity, with additional upgrades required for 14 future growth. The alternative incorporated the use of an 15 additional substation and distribution circuits to tie into 16 the existing distribution system. Although the Company 17 noted that this alternative was not a complete replacement 18 for the redundant line and had limitations, it was 19 developed in response to concerns for the incremental cost 20 for undergrounding a fully redundant transmission line, 21 which would be recovered from the local community. 22 Q. Were other non-conventional alternatives for 23 providing redundant electric service considered? 24 A. Although new representation from Ketchum did 25 provide materials that outlined its goals for Ketchum's ANGELL, DI 13 Idaho Power Company 1 energy security, including expanded development of local 2 d i stributed renewable generat ion and energy conservation , a 3 v i able alternative to the redundant l ine was not provided . 4 However , the Company did provide some additional high -level 5 analysis of other alternatives for redundant electric 6 s ervice . 7 III . MICROGRID ALTERNATIVES TO REDUNDANT TRANSMISSION 8 Q. Did the Company conduct any analysis of 9 providing the North Valley with backup electrical supply 10 from locally sited generation? 11 A. Yes . Individuals in the Wood River Valley 12 have asked whether local electric generation resources 13 combined with the distribution grid (i.e., a microgrid) 14 would be a cost-effective solution to increasing the 15 reliability of service to the North Valley . This prompted 16 a CAC member to ask for updated local backup generation 17 information . I have included as Exhibit No . 3 a cover 18 letter and report which provides a summary of Idaho Power 's 19 recent work in this area and an updated analysis of 20 microgrid requirements and capability. Also included in 21 Exhibit No . 3 are two revised and updated appendices , 22 Appendix A and Appendix B, to the October 2016 report. 23 Idaho Power's preliminary and conceptual investigation 24 reveals that the cost to provide a 65 MW microgrid with 25 backup generation for a 24-hour period ranges from ANGELL , DI 14 Idaho Power Company 1 approximately $57 million (diesel engine system) to $955 2 million (photovoltaic plus battery system). 3 4 Q. A. Please briefly describe the report. The report presents the results of a 5 preliminary study to provide the northern Wood River Valley 6 customers served by the Ketchum and Elkhorn substations 7 with backup electrical supply from locally sited 8 generation. The resources considered in the study are 9 diesel reciprocating engine generation, natural gas 10 combustion turbines, photovoltaic plus battery energy 11 storage systems, geothermal generation, and biomass 12 generation. 13 The analysis was performed using industry-standard 14 energy resource simulation software, HOMER®, which was 15 developed by the National Renewable Energy Laboratory 16 ("NREL"). The capital, operations and maintenance, and 17 fuel cost estimates for the resources identified above were 18 obtained from Lazard's Levelized Cost of Energy Analysis - 19 Version 9.0.2 Idaho Power also compared the Lazard 20 estimates with pre-engineering budgetary quotes from 21 several vendors. Additionally, the Idaho National 22 Laboratory ("INL"), with more than 1,000 MW of hybrid 23 power, solar, and wind energy systems deployed at 2 Lazard, 2015a . Lazard 's Levelized Cost of Ener gy Analysi s - Version 9 .0 , htt s ://www .lazard .com/ ers ective/levelized-cost-of­ energy-analysis -90/. ANGELL, DI 15 Idaho Power Company 1 Department of Defense and industry/utility sites around the 2 world, provided independent technical review and feedback 3 on the analysis and report. 4 The analysis demonstrates that the most economical 5 way to provide backup electrical supply from local 6 generation (i.e., a microgrid) is by either diesel engines 7 or gas turbines. With respect to the other resources 8 considered, the study area does not have a geothermal 9 resource suitable for electrical generation and biomass 10 generation costs are significantly higher and the start-up 11 time would be substantially longer than diesel engines or 12 gas turbines. Additionally, the biomass generation would 13 require more investigation into the availability of and 14 cost to extract the local biomass material. Finally, the 15 large winter energy requirement results in a cost 16 prohibitive battery system. 17 Q. What is the Company's conclusion from this 18 analysis? 19 A. The report provides a high-level summary of 20 the Company's assessment of local backup generation 21 options. All of the options include higher initial and 22 ongoing maintenance costs compared to a redundant 23 transmissi on line alternative. 24 Q. Has the Company reviewed any other microgrid 25 projects? ANGELL, DI 16 Idaho Power Company 1 A. Yes. Most recently, the Ketchum City Council 2 suggested that the Company consider options like the 3 rnicrogrid project in Borrego Springs, California. The 4 Company is familiar with the project and has reviewed the 5 final report prepared for the California Energy Commission 6 ("CECu) by San Diego Gas & Electric ("SDG&Eu). The project 7 was a rnicrogrid demonstration project that focused on the 8 design, installation, and operation of a community scale 9 "proof-of-conceptu rnicrogrid. The rnicrogrid was an 10 existing utility circuit that had a peak load of 4.6 MW 11 serving 615 customers in Borrego Springs, California. The 12 project was funded through a U.S. Department of Energy 13 ("DOEu) and CEC grant and cost share provided by SDG&E and 14 other project team members. The project's partners 15 included Lockheed Martin, IBM, Advanced Energy Storage, 16 Horizon Energy, Oracle, Motorola, Pacific Northwest 17 National Laboratories, and the University of California San 18 Diego. The DOE supported the project with $7.5 million of 19 federal funding, with additional funding corning from SDG&E 20 ($4.1 million), CEC ($2.8 million), and other partners 21 ($0.8 million). Upon completion, the total rnicrogrid 22 installed capacity was expected to be 4 MW, with the main 23 technologies being two 1.8 MW diesel generators, a large 24 500 kilowatt ("kWu)/1500 kilowatt-hour ("kWhu) battery at 25 the substation, three smaller 50 kWh batteries, six 4 kW/8 ANGELL, DI 17 Idaho Power Company 1 kWh home energy storage units, about 700 kW of rooftop 2 solar photovoltaics, and 125 residential home area network 3 systems. 4 The final report provided some key lessons learned 5 from the microgrid demonstration project, stating that the 6 project proved to be challenging due to the complexity of 7 integrating new systems into the distribution network that 8 could impact customers, reliance on other projects for 9 integration, the use of newly emerging technologies and 10 systems, and environmental requirements. 11 Q. What has Idaho Power concluded from its 12 investigation into alternatives for the redundant 13 transmission line? 14 A. Many of the alternative options suggested by 15 the KEAC or CAC are interesting and innovative; however, 16 they are technologies that are either cost prohibitive or 17 just not viable today. The Borrego Springs microgrid 18 demonstration project is a good example of this. While the 19 project was successful in providing all of the electricity 20 delivered to the Borrego Springs community during a five 21 and a half hour preplanned operation, the Company does not 22 believe that this would be a viable cost-effective option 23 for the North Valley today. A simple extrapolation of the 24 project costs would suggest that if a 4.0 MW microgrid cost 25 $15 million at Borrego Springs, then a 60 MW microgrid for ANGELL, DI 18 Idaho Power Company 1 the North Valley would cost $225 million, or more 2 importantly, for the 9,000 customers in the North Valley, 3 would cost approximately $25,000 each. These alternative 4 technologies are just not cost-effective today, would only 5 provide electric backup for a relatively short period of 6 time, and would still not eliminate the need for the 7 redundant transmission system. 8 9 Q. IV. PURPOSE AND NEED When would Idaho Power normally consider the 10 construction of additional facilities to serve customers in 11 a particular area? 12 A. Idaho Power generally initiates and constructs 13 a second transmission source and transformer when a 14 substation peak load is projected to exceed 40 MW. Recent 15 examples include the additions of second transmission lines 16 and transformers at the Victory substation south of Boise 17 and the McCall substation in McCall, Idaho. Idaho Power is 18 also moving forward with a second transmission project in 19 the Eagle and Star area, which peaks at 71 MW. The area 20 north of Hailey represents the second largest customer base 21 in Idaho Power's service territory served by only a single 22 transmission line. The Ketchum and Elkhorn substations' 23 peak load of about 60 MW, coupled with the winter tourism 24 population in the North Valley, strongly supports the need 25 for a second transmission line. ANGELL, DI 19 Idaho Power Company 1 Q. At what time of year would a significant risk 2 of an outage on the current transmission line be most 3 likely to occur? 4 A. The most significant risk of an outage on the 5 current single 138 kV transmission line and the resulting 6 economic impact would occur during the winter season when 7 the electric demand and tourism activity are at their 8 highest. Deep snow and steep terrain can make it very 9 difficult to access the susceptible sections of the 10 existing transmission line, resulting in sustained outages 11 (defined as an interruption that lasts more than five 12 minutes). An extended outage could last multiple days and 13 be catastrophic, not only from the economic loss of the 14 area, but the additional damage that may be caused by water 15 pipes freezing. Summers are not immune from risk either, 16 with the potential for a fire to take out the existing 17 line, affecting the ability to pump gas or water, and 18 resulting in economic loss. 19 Q. Has Idaho Power estimated the potential for 20 future sustained outages in the North Valley? A. Yes. Historically, this particular line has 21 22 had a relatively good service record for reliability. This 23 was one of the reasons that the previously issued CPCN was 24 withdrawn in 1995. However, this line, built in 1962, has 25 not aged well and now requires complete reconstruction. ANGELL, DI 20 Idaho Power Company 1 Idaho Power estimates that without any significant changes 2 to the existing North Valley transmission line, the 3 expectation could be that the current configuration will 4 result in an average duration of sustained outages of more 5 than 209 minutes per year. 6 Q. How has the existing transmission line 7 performed? 8 A. The line has performed better than average for 9 the 138 kV class of transmission lines. One performance 10 measure is the occurrence of unplanned sustained outages. 11 The existing Hailey to Ketchum 138 kV line has a frequency 12 of 1.23 unplanned sustained outage events per year per 100 13 miles. Idaho Power's system-wide average for 138 kV lines 14 is 1.89 events per year per 100 miles. However, the line 15 is showing its age. For example, the line was de-energized 16 for seven hours and 45 minutes in 2015 to replace poles 17 that were damaged by woodpeckers. 18 Q. Has the Company considered the reconstruction 19 of the existing line as one option to mitigate outages and 20 improve the system reliability in the North Valley? 21 22 A. Yes, the reconstruction of the existing line would help mitigate outages in the North Valley. Even 23 without considering the need for a redundant transmission 24 line, Idaho Power has determined that the existing 25 transmission line requires reconstruction. The ANGELL, DI 21 Idaho Power Company 1 reconstruction would not eliminate the need for a redundant 2 transmission line. Without another source of energy into 3 the valley, the reconstruction of the existing radial line 4 would have its own significant challenges. 5 Q. What would the reconstruction of the existing 6 transmission line involve? 7 A. The reconstruction of the existing line 8 involves replacing the wood structures with steel 9 structures in approximately the same locations and 10 replacing the existing conductor. During this 11 reconstruction, it is estimated that 57 out of 93 structure 12 replacements would require as many as 40 eight-hour line 13 outages, or 20 assuming the use of two construction crews. 14 Furthermore, it is estimated that the replacement of the 15 line conductor would require a six to 12 week continuous 16 outage. Replacing the other 35 structures while the line 17 is energized would require much larger construction 18 equipment pads that produce significant environmental and 19 aesthetic impacts, particularly on hillsides. 20 Q. What is the alternative to replacing the 21 existing line while energized? 22 A. Considering all the impacts described above, 23 the reconstruction of the existing line while the line is 24 energized is not feasible. A temporary line to the Ketchum 25 substation would be required to serve the customers of the ANGELL, DI 22 Idaho Power Company 1 Ketchum and Elkhorn substations during the reconstruction 2 of the existing line. The temporary line would be placed 3 in road right-of-way, mostly along Highway 75, to minimize 4 private property impact and right-of-way costs. The 5 temporary line would almost assuredly be deemed a visual 6 impact by many North Valley customers. Following the 7 completion of the reconstruction, the majority of temporary 8 line materials (poles and insulators) would be salvaged; 9 however, the conductor cannot be salvaged. 10 Q. Does construction of the redundant 138 kV line 11 eliminate or change the reconstruction of the existing 12 line? 13 A. Construction of the redundant 138 kV line does 14 not eliminate the need to reconstruct the existing line. 15 This must be done regardless. However, with the 16 construction of the redundant source the reconstruction of 17 the existing line can be done with little to no disruption 18 of service. The new redundant line can meet the North 19 Valley's electrical needs during the time when the existing 20 line is taken out of service for reconstruction, thus 21 saving the lost investment in the temporary line that would 22 otherwise have been required for reconstruction. 23 Q. What is the Company's typical construction 24 configuration, or standard practice, for providing 25 redundant electric service to an area in need of redundancy ANGELL, DI 23 Idaho Power Company 1 in order to reduce sustained outages and continue providing 2 reliable electric service? 3 A. The Company's standard practice to reduce the 4 likelihood of sustained outages would be to construct 5 multiple overhead transmission lines (a redundant 6 transmission source) or to implement distribution circuits 7 with tie switches in order to continue providing customers 8 with reliable electric service. 9 Q. What are the challenges to building redundant 10 electric service in the North Valley area? 11 A. The North Valley exhibits several transmission 12 siting obstacles for overhead access to the existing 13 Ketchum substation. The North Valley is congested due to 14 numerous residences and businesses sited in a valley less 15 than one mile wide with mountains of steep slope and narrow 16 roadways. This would force an overhead transmission line 17 either through the downtown district or over the top of 18 Dollar Mountain, spanning existing homes near the 19 substation in order to reach the existing Ketchum 20 substation. The valley has ordinances restricting certain 21 development. For example, because of these steep slopes 22 and for aesthetic reasons, Blaine County has an ordinance 23 limiting the development along the mountains (Mountain 24 Overlay District). The cities of Ketchum and Sun Valley 25 prefer new electrical facilities be located underground, ANGELL, DI 24 Idaho Power Company 1 and the communities are adamantly against additional visual 2 impacts from overhead lines. Idaho Power representatives 3 have been advised that new overhead lines would not be 4 allowed in Ketchum and Sun Valley. 5 Q. Has the Company evaluated a number of 6 transmission or distribution routes and alternatives to 7 provide redundant electric service to the North Valley? 8 A. Yes. The Company has evaluated four 9 construction configuration alternatives for providing 10 redundant electric service to the North Valley, identified 11 as: (1) Overhead Transmission, (2) Underground 12 Transmission, ( 3) Overhead Distribution, and ( 4) 13 Underground Distribution. 14 15 V. REDUNDANT ELECTRICAL SERVICE OPTIONS Q. Please describe the four redundant electric 16 service c o nfigurations in greater detail. 17 A. All four of the redundant electric service 18 routes begin with the same basic configuration, defined as 19 the "Common Route." The Common Route is a 138 kV 20 transmission line that would be constructed overhead from 21 the Wood River Transmission Station, east to Buttercup 22 Road, then north along the bike path and Highway 75 to 23 approximately the area near Owl Rock Road. From this point 24 north, each of the various configurations will differ. 25 ANGELL, DI 25 Idaho Power Company 1 Please see my Exhibit No. 4 for an overview map that shows 2 the Corrunon Route. 3 1. Overhead Transmission. 4 As discussed above, because of several siting 5 obstacles for overhead access to the existing Ketchum 6 substation, an overhead transmission line route would be 7 forced to run either through the downtown district or over 8 the top of Dollar Mountain. The Overhead Transmission- 9 Dollar Mountain route would begin with the Corrunon Route 10 along Highway 75 and continue north to Elkhorn Road. At 11 that point, the route would follow Elkhorn Road to Larry's 12 Lane (private road) near the existing Elkhorn substation, 13 where the existing transmission line crosses. The 14 remainder of the route would be double circuit to the 15 Ketchum substation, requiring the existing structures to be 16 replaced with structures that can accorrunodate both 17 transmission circuits. Please see my Exhibit No. 4. 18 The Overhead Transmission-Downtown District route 19 would also begin with the Corrunon Route along Highway 75 and 20 continue north along Highway 75 into the City of Ketchum to 21 Gem Street. The route then winds its way through downtown 22 Ketchum, taking a right on Gem Street, a left on Leadville 23 Avenue, a right on River Street, a left on East Avenue 24 South, a right on 1st Street, a left on Walnut Avenue, a 25 right on 2nd Street, a left on Spruce Avenue, and, finally, ANGELL, DI 26 Idaho Power Company 1 a right on Sun Valley Road . The route then follows Sun 2 Valley Road to the Ketchum substati on . Please see my 3 Exhibit No. 4. 4 2. Underground Transmission. 5 The Underground Transmission construction 6 configuration would include the Common Route along Highway 7 75 to one of three possible overhead-to -underground 8 transition points between Owl Rock Road and Elkhorn Road , 9 at which point the transmission line would be constructed 10 underground and proceed along the h i ghway and in road 11 rights -of-way to the Ketchum substation . The three 12 potential transition points are : (1 ) just before entering 13 the City of Ketchum, near the intersection of Elkhorn Road 14 and Highway 75, (2) further south , near the intersection of 15 Hospital Drive and Highway 75 , and (3) prior to the 16 hospital , near the intersection of Owl Rock Road and 17 Highway 75. Each of these a l ternative routes would provide 18 an independent and fully redundant transmission source . 19 Please see my Exhibit No . 5 for a map of the Underground 20 Transmission construction configuration showing the three 21 transition point options . 22 3. Overhead Distribution . 23 The Overhead Distribution construction configuration 24 would include the Common Route to a new substation site on 25 the west side of Highway 75 south of Owl Rock Road . This ANGELL , DI 27 Idaho Power Company 1 option would include a new substation with 2 x 44.8 MVA 2 138/12.5 kV transformers, two 4-bay metalclad sections, 3 five feeder getaways, a control building, 10 foot 4 decorative walls, and sound barriers around the 5 transformers. Five overhead distribution circuits would 6 connect with the existing Ketchum and Elkhorn substation 7 distribution circuits. Eight sets of padmount switchgear 8 and optical fiber from the new substation for Supervisory 9 Control and Data Acquisition (SCADA) control will be 10 installed to effectuate the load transfers during outages 11 of any transmission line or substation. Unlike the 12 Underground Transmission option, this option (and the next) 13 only provides 60 MW of additional service capacity on five 14 distribution circuits. Additional circuits would need to 15 be constructed if the area peak load increases. Please see 16 my Exhibit No. 6 for a map showing the Overhead 17 Distribution construction configuration. 18 4. Underground Distribution. 19 The Underground Distribution construction 20 configuration would also include the Common Route to a new 21 substation site on the west side of Highway 75 south of Owl 22 Rock Road. From this point on, the option is substantially 23 the same as the Overhead Distribution option with the 12.5 24 kV distribution circuits installed underground requiring 25 boring, asphalt, and landscape work. ANGELL, DI 28 Idaho Power Company 1 Q. Has the Company concluded that all of these 2 alternatives and routes provide viable options for 3 redundant electric service to the North Valley? 4 A. No. While the Overhead Transmission 5 construction configuration may reflect the Company's 6 typical construction configuration, or standard practice, 7 for providing redundant electric service to an area in need 8 of redundancy, the Company has concluded that the Overhead 9 Transmission construction configuration is not a viable 10 option based on the transmission siting obstacles described 11 above. With regard to the Dollar Mountain overhead option, 12 the North Valley section of an overhead line would be 13 limited to a double circuit option on a common tower 14 configuration from the Elkhorn substation to the Ketchum 15 substation across the top of Dollar Mountain. This common 16 tower construction has a high probability of simultaneous 17 loss of both transmission circuits and North Valley 18 customer outages for the Line Events, thereby not truly 19 providing redundant reliable service and not meeting the 20 required purpose and need for a redundant line. 21 Additionally, condemnation of private property may be 22 required to enter the Ketchum substation overhead from 23 Dollar Mountain. Finally , the Company believes that North 24 Valley customers would likely strongly oppose this option 25 due to the visual impacts. ANGELL, DI 29 Idaho Power Company 1 Q. Does the Overhead Transmission construction 2 configuration through the downtown district of Ketchum 3 provide a viable option? 4 A. No. While the Overhead Transmission route 5 through the Ketchum downtown district may be theoretically 6 possible to construct from an engineering perspective, it 7 has several insurmountable problems. First, it would be 8 vigorously opposed and likely not permitted by the City of 9 Ketchum. The Downtown District overhead option has 10 additional challenges, including the fact that the City of 11 Ketchum consists of a grid of streets, sidewalks, and zero 12 setback buildings that provides little to no room for 13 transmission tower structures and line clearances. Options 14 that exist for construction of overhead transmission 15 include placing the poles in the sidewalks, the edge of 16 streets, overhanging the wires over the streets, utilizing 17 side streets, and constructing tall enough structures to 18 span the wires over the tops of buildings. Because of the 19 very tight geographical constraints, this option would 20 likely be dependent upon and require significant 21 condemnation of private property in order to pass through 22 downtown Ketchum with an overhead line to the Ketchum 23 substation. 24 Ultimately, the Company has concluded that neither 25 of the two possible route options for an Overhead ANGELL, DI 30 Idaho Power Company 1 Transmission construction configuration provides a viable 2 solution for redundant electric service to the North 3 Valley. 4 Q. Do the three remaining construction 5 configurations provide potential viable solutions for 6 redundant electric service to the North Valley? 7 A. Yes. The three remaining construction 8 configurations would all provide viable solutions for 9 redundant electric service to the North Valley, each with 10 their own set of costs and varying degrees of benefits and 11 detriments. The remaining three construction 12 configurations: (1) Underground Transmission, (2) Overhead 13 Distribution, and (3) Underground Distribution are the 14 three construction configurations that were provided to 15 Company witness Ryan Adelman for further analysis and 16 evaluation. 17 18 19 20 21 22 23 24 25 Q. A. Does this conclude your testimony? Yes. ANGELL, DI 31 Idaho Power Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 ATTESTATION OF TESTIMONY STATE OF IDAHO ss. County of Ada I, David M. Angell, having been duly sworn to testify truthfully, and based upon my personal knowledge, state the following: I am employed by Idaho Power Company as the Planning Manager in the Customer Operations Engineering and Construction 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-filed testimony and exhibits are true and correct to the best of my information and belief. 8-fl.. DATED this day of November 2016. SUBSCRIBED AND SWORN to before me this ?;t\'\ day of November 2016. Not 'ry Residing at: Boise, Idaho ----~------.........,::,--_/ My commission expires: 02/04/202 ANGELL, DI 32 Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-16-28 IDAHO POWER COMPANY ANGELL, DI TESTIMONY EXHIBIT NO. 2 Planning for th Futur w Executive Summary Updated May 2011 To view entire plan document, please visit http://www.idahopower.com/aboutus/planningforfuture/regionalelectricalplans/woodriver/ Updated May 2011 Wood River Electrical Plan, Executive Summary Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 1 of 92 Acronyms/Definitions BLM-U.S. Bureau of Land Management CAC -Community Advisory Committee KING-King Transmission Station, located in Hagerman kV -kilovolts (thousands of volts). 1,000 volts = I kV; 138 kV = 138,000 volts kW -kilowatts (thousands of watts). 1,000 watts = I kW MPSN -Midpoint Substation, located south of Shoshone MW -megawatt (millions of watts). 1,000,000 watts= I MW Station -A facility that provides transmission line switching without electrical transformation (voltage reduction) to distribution voltages that serve local area loads. Substation -A facility that provides transmission line switching with electrical transformation (voltage reduction) to distribution voltages that serve local area loads. USFS-U.S. Forest Service WDRI-Wood River Transmission Station, located north of Hailey WREP -Wood River Electrical Plan Relationship between Power and Voltage -There are two quantities referred to in this report when describing the electrical system; Power and Voltage. Power: the amount of energy or work performed in one second. The term is used to express the electrical workload of the Wood River Valley and the capability of a transmission line to move electricity. Power is measured in watts (kilowatts and megawatts). Voltage: A component of power that enables the power to flow on a transmission line. It is the "push" behind the power. In general, a higher voltage line can carry more power than a lower voltage line. Voltage is measured in volts at your household (110 and 220-v) and kilovolts in the transmission network (138-kV). Updated May 2011 Wood River Electrical Plan, Executive Summary Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 2 of 92 Executive Summary Current Conditions The Wood River Valley (the Valley) is a vibrant year-round recreation and resort community that depends on a full-time, reliable electric power system. The tourism-based economy focuses on making the Valley a highly desirable place to live, work, play and visit. Electricity is a vital component required to maintain and enhance the unique experience of living in and visiting the Valley. Whether it is powering the furnace fan and lights in your home, the high-speed chairlifts and snowmaking on the mountain, or your computer or internet-based small business, electricity has become a necessity of life in today's modern society. Additionally, as residents and visitors become more and more dependent on electricity charge-based technology such as smart phones, tablets, and computers any interruption in electrical service has negative consequences for the desirability and future of the Valley. This is especially true in the cold winter months when a power outage could create a public safety emergency as residents have difficulty heating their homes and water pipes freeze. Today's maximum electrical demand in the Wood River Valley occurs in the coldest part of the winter months each year during the height of tourist season. Cold temperatures drive up heating demands and the peak of the ski and tourism season creates a surge in population and user­ related power needs. Also, as population in the Valley and the resort community continues to grow over time, the corresponding electrical demand will increase. Recent major emergency events in the area including the summer 2007 Castle Rock fire and the 2009 Christmas Eve power outage emphasize the need for a reliable power system. Idaho Power is proactive in working with the community to plan for reliable new infrastructure to serve the electrical needs of the Wood River Valley today and into the future. The Need The primary need for any power system improvements in the Wood River Valley is to provide a reliable electric service to all customers. The existing power transmission system does not adequately meet the Valley's current need for reliable power. The transmission system lacks sufficient reliability due to these factors: • The electrical system serving the North Valley (from Hailey to Sun Valley and Ketchum) has only one transmission line which provides no redundancy should an outage occur on that line. • The transmission line between Hailey and Sun Valley/Ketchum is 49 years old, having been built in 1962. While this line has been relatively dependable in the past, the risk of a major outage continues to increase due to its age. • The remote location of large portions of the line between Hailey and Sun Valley/Ketchum makes access very difficult, especially in the winter. A failure on the line in the coldest part of winter could result in a long term outage. It could potentially be days before the line could be repaired and power restored to the Sun Valley/Ketchum resort area. Updated May 2011 Wood River Electrical Plan, Executive Summary Exhibit No. 2 Case No. IPC-E-16-28 D. Angell , IPC Page 3 of 92 • The electrical system south of Hailey has two transmission lines, but neither line has the capability to provide 100% of the electricity needed for extreme peak loads in the Wood River Valley without rotational power outages. The Christmas 2009 outage was a dramatic reminder of the limitations of the existing system. In the future, the system will lack sufficient capacity to satisfy projected electricity needs: • Current power demands in the Wood River Valley at peak load are approximately 100 MW and future demands at build-out are projected to be approximately 320 MW, using current usage patterns to project future use. • The current system capacity is about 120 MW. • The system will need 200 MW of increased capacity and delivery infrastructure to serve the Wood River Valley's build-out needs. Any growth-related system upgrades will be built only when required by increased system demands. Purpose of the Wood River Electrical Plan The purpose of the Wood River Electrical Plan (WREP) is to outline and prioritize improvements and additions to the high voltage transmission and substation infrastructure to address the Valley's power needs from now through build-out. The development of the Plan was accomplished through a cooperative effort with the Community Advisory Committee (CAC). The CAC consisted of 19 members representing Blaine County, the cities of Sun Valley, Ketchum, Hailey, Bellevue, Picabo and Carey, Blaine County planning administrators, Lincoln County, private business/developers, area residents, the BLM, USFS and the Nature Conservancy. The Plan specifies locations for major transmission lines serving the Valley for many years to come and provides direction for the location of a new distribution/transmission substation to serve the southern part of the Valley. Individual projects resulting from this Plan will still require jurisdictional approval and will be subject to a public siting process. This plan gives the jurisdictions and citizens a "heads-up" as to where high-voltage transmission equipment may be located and allows them to plan accordingly. In preparing the WREP, Idaho Power and the CAC considered the effect that demand-side management could have on future load in the Wood River Valley. Demand-side management includes energy efficiency efforts that reduce total energy consumption and peak response programs that reduce the maximum demand on the power system. Idaho Power is committed to reducing electrical load through the use of demand-side management at all customer levels. In conjunction with activities outside Idaho Power's control -such as expected improvements in Idaho building standards, customer involvement, and energy efficiency technology advancements -Idaho Power expects new electrical load can be reduced by 20 to 30 percent. Actual reduction in power consumption will be taken into account as infrastructure improvements are implemented. However, even if new electrical load is reduced by 30 percent, new electrical infrastructure is still required to reliably and dependably serve existing and new load. Renewable power sources are an important component of the total resource portfolio that provides energy to the Wood River Valley. Small scale development ofrenewable resources (mostly solar) has occurred throughout the Valley while much larger wind, solar and geothermal Updated May 2011 Wood River Electrical Plan, Executive Summary 2 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell , IPC Page 4 of 92 resources have been and continue to be developed in the region around the Wood River Valley. The power system infrastructure, including transmission lines and substations, enables access to these regional resources for the residents of the Valley. Once brought in to the Valley, the electrical power from renewable resources still require transmission lines, substations and distribution lines to bring the energy to the consumer. A dependable transmission system that serves as the primary full-time power source will continue to be required to reliably meet the power demands of the Wood River Valley. Because of the high cost, limited potential, significant space requirements, visual impacts and intermittent nature of any large scale renewable resources, it is impractical to assume the transmission system could be replaced by renewable resources in the Valley. Significant additional energy resource development in the Valley could mitigate the need for some of the growth related upgrades outlined in the Plan. However, the need for reliability driven projects such as the second transmission line into Ketchum does not change with more renewable development. The Committee's Recommendations (see recommendations map; Figure 1) Through the consensus agreement of the CAC, the WREP recommends the following infrastructure improvements and additions: (Items are labeled on the map in Figure 1 by letter) South Valley-South of Timmerman (A) Develop a new substation along Highway 75 near Burmah Road to serve the south Valley load and to act as a switching station for new transmission. (B) Construct a new 138 kV transmission line from Midpoint Station (near Shoshone) to the new Burmah substation. This line would be installed in parallel with Highway 75. (C) Construct a new 138 kV transmission line from the new Burmah substation to Moonstone Substation (located east of Fairfield). (D) Construct a new 138 kV transmission line from Burmah substation to Silver Substation (located near Picabo ). (E) Upgrade the existing King (near Hagerman) to Moonstone 138 kV transmission line to 230 kV. Mid Valley -Timmerman to Hailey (F) Improve the capability of the existing transmission lines from Silver Substation and Moonstone Substation into the Wood River Transmission Station in Hailey using higher capacity wire while maintaining the current 138 kV operating voltage. North Valley -Hailey to Ketchum (G) Construct an additional 138 kV transmission line between Wood River Transmission Station and Ketchum Substation to improve the reliability to the north end of the Valley. The CAC recommended that the new line run parallel with and adjacent to Highway 75. This route was considered the most sensible option because it follows the Valley's main transportation corridor. The Wood River Electrical Plan was formed after a series of meetings of the Community Advisory Committee (CAC) held throughout 2007. The CAC met two more times in 2010 and Updated May 2011 Wood River Electrical Plan, Executive Summary 3 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 5 of 92 one final time in the spring of2011 to further refine their recommendations and review additional transmission line design details specifically for the new Hailey to Sun Valley/Ketchum transmission line (item G above). The consensus CAC recommendation is to build an overhead 138 kV transmission line from Wood River substation north to the St. Luke's hospital area. This new line would be in place of existing overhead distribution power lines along Buttercup Rd and Highway 75 . From the hospital area north to the Ketchum substation, an underground 138 kV transmission line is preferred by the CAC. The underground option is contingent on local community funding. The Idaho Public Utilities Commission requires the costs of underground transmission lines that exceed the cost of the overhead line be paid by entities other than Idaho Power and its customers in general. For any underground transmission line between Hailey and Sun Valley/ Ketchum, the local community must pay the difference in cost between the underground line and the equivalent overhead transmission line. Preliminary funding options are currently being developed. This funding issue is expected to be a significant part of the public siting and permitting process in the near future for the new line between Hailey and Sun Valley/Ketchum. Idaho Power extends a heartfelt thank you to every member of the CAC. The time and effort the committee gave to this project was tremendous. Their work has provided Idaho Power and the affected communities with a framework from which to begin the public siting process to build the power system that corrects the present deficiencies and addresses future requirements of the power system serving the Wood River Valley. Updated May 2011 Wood River Electrical Plan, Executive Summary 4 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 6 of 92 0 ~ "J> (C :::, CD <C -..J~ () Ill C/1 CD z 0 -m "'OX () :::T m2'. I -0 -_.. Z --O> 0 co "'ON . NOoo N Figure 1. Committee Recommendations Map Updated May 2011 Wood River Electrical Plan, Executive Summary New -Slmadon IOUlh orTunm<nnan ,_ -Rd -Ill kV --Iron, Wood River lrwlsmisllon Slallon IO Ketdoum Subotarion .o-toead lllkV-ission tivmnew..-lon 10 MOOMtone Subsaitic.-.i • .0.<lheod 131 kV-isslon -new substallon IO Sil\<Clr Subslalion. -0,,emead 131 kV lnlnllllisslon Iron, Midpoinl IO --· ModiflC8lions ~onven cillin& Killc-Moonslone nmmiss.ion to 230kV -1-Sil•• and Subsllllon 10 Ill MW. -lncrax--..SublllllonlOIOMW. -UndcrJn>und 131 kV 1n111111i,sion from Juniper Rd 10 Elkhorn Subo1 (poid for by aff"O<l<d ponies). -fmpro\'e exiscina Moonslone to new switching station )~I 1nn1miulon10200 MW. -lm~e niltina Sil~er 10 Wood Ri\'tr transmission 10200MW. ------._..,._ ~-·---­--131kVT-(0Hc.-UGno1Sj,oci1iod) ---230kVT.-___ 131kVOHT.- ---131kVUGT- -~411kVT,_ ~138kVT- -~230kVT.- -Ellilllng3'6kVT- i N 0 UtU ,. 10 Idaho Power Company Table of Contents Table of Contents ............................................................................................................................. i Acronyms/Definitions ..................................................................................................................... ii Executive Summary ........................................................................................................................ 1 Introduction ..................................................................................................................................... 6 Background ..................................................................................................................................... 7 Population and Electrical Load Projections ................................................................................ 7 Existing Wood River Valley Electrical Supply System ............................................................. 7 Existing Dependability ................................................................................................................ 9 Committee Process and Input ....................................................................................................... 10 Alternative Energy Generating Technologies ........................................................................... 10 Energy Efficiency ..................................................................................................................... 10 Goals Document. ....................................................................................................................... 13 Mapping Exercise ..................................................................................................................... 14 Committee Consensus on Alternatives ..................................................................................... 14 Overhead vs Underground Transmission .................................................................................. 16 Implementation Plan ..................................................................................................................... 17 Conclusion/Results ....................................................................................................................... 18 Appendix A-List of Community Advisory Committee Members ............................................... 1 Appendix 8-Introduction and Technical Background ................................................................. 1 Appendix C -Committee Process and Input.. ................................................................................ 1 Appendix D -Group Mapping Results .......................................................................................... 1 Appendix E -Technical Analysis ................................................................................................... 1 Appendix F -ROW Analysis ......................................................................................................... 1 Appendix G -Cost Estimates ......................................................................................................... I Appendix H -Implementation Plan ............................................................................................... 1 Appendix I -Load Density Based on Zoning ................................................................................ 1 Appendix J -Example Transmission Tower Photographs ............................................................. 1 Appendix K -n-1 Reliability Criteria Example ............................................................................. 1 Updated May 2011 Wood River Electrical Plan Page i Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 8 of 92 Idaho Power Company Acronyms/Definitions BLM-U.S. Bureau of Land Management CAC -Community Advisory Committee KING -King Transmission Station, located in Hagerman kV -kilovolts (thousands of volts). 1,000 volts= 1 kV; 138 kV= 138,000 volts kW -kilowatts (thousands of watts). 1,000 watts= 1 kW MPSN -Midpoint Substation, located south of Shoshone MW -megawatt (millions of watts). 1,000,000 watts= I MW SNRA -Sawtooth National Recreation Area Station -A facility that provides transmission line switching without electrical transformation (voltage reduction) to distribution voltages that serve local area loads. Substation -A facility that provides transmission line switching with electrical transformation (voltage reduction) to distribution voltages that serve local area loads. USFS-U.S. Forest Service WDRI-Wood River Transmission Station, located north of Hailey WREP-Wood River Electrical Plan Relationship between Power and Voltage -There are two quantities referred to in this report when describing the electrical system; Power and Voltage. Power: the amount of energy or work performed in one second. The term is used to express the electrical workload of the Wood River Valley and the capability of a transmission line to move electricity. Power is measured in watts (kilowatts and megawatts). Voltage: A component of power that enables the power to flow on a transmission line. It is the "push" behind the power. In general, a higher voltage line can carry more power than a lower voltage line. Voltage is measured in volts at your household (110 and 220-v) and kilovolts in the transmission network (138-kV). Updated May 2011 Wood River Electrical Plan Page ii Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 9 of 92 Idaho Power Company Executive Summary Current Conditions The Wood River Valley (the Valley) is a vibrant year-round recreation and resort community that depends on a full-time, reliable electric power system. The tourism-based economy focuses on making the Valley a highly desirable place to live, work, play and visit. Electricity is a vital component required to maintain and enhance the unique experience ofliving in and visiting the Valley. Whether it is powering the furnace fan and lights in your home, the high-speed chairlifts and snowmaking on the mountain, or your computer or internet-based small business, electricity has become a necessity of life in today's modern society. Additionally, as residents and visitors become more and more dependent on electricity charge-based technology such as smart phones, tablets, and computers any interruption in electrical service has negative consequences for the desirability and future of the Valley. This is especially true in the cold winter months when a power outage could create a public safety emergency as residents have difficulty heating their homes and water pipes freeze. Today's maximum electrical demand in the Wood River Valley occurs in the coldest part of the winter months each year during the height of tourist season. Cold temperatures drive up heating demands and the peak of the ski and tourism season creates a surge in population and user­ related power needs. Also, as population in the Valley and the resort community continues to grow over time, the corresponding electrical demand will increase. Recent major emergency events in the area including the summer 2007 Castle Rock fire and the 2009 Christmas Eve power outage emphasize the need for a reliable power system. Idaho Power is proactive in working with the community to plan for reliable new infrastructure to serve the electrical needs of the Wood River Valley today and into the future. The Need The primary need for any power system improvements in the Wood River Valley is to provide a reliable electric service to all customers. The existing power transmission system does not adequately meet the Valley's current need for reliable power. The transmission system lacks sufficient reliability due to these factors: • The electrical system serving the North Valley (from Hailey to Sun Valley and Ketchum) has only one transmission line which provides no redundancy should an outage occur on that line. • The transmission line between Hailey and Sun Valley/Ketchum is 49 years old, having been built in 1962. While this line has been relatively dependable in the past, the risk of a major outage continues to increase due to its age. • The remote location of large portions of the line between Hailey and Sun Valley/Ketchum makes access very difficult, especially in the winter. A failure on the line in the coldest part of winter could result in a long term outage. It could potentially be days before the line could be repaired and power restored to the Sun Valley/Ketchum resort area. Updated May 2011 Wood River Electrical Plan Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 10 of 92 Idaho Power Company • The electrical system south of Hailey has two transmission lines, but neither line has the capability to provide 100% of the electricity needed for extreme peak loads in the Wood River Valley without rotational power outages. The Christmas 2009 outage was a dramatic reminder of the limitations of the existing system. In the future, the system will lack sufficient capacity to satisfy projected electricity needs: • Current power demands in the Wood River Valley at peak load are approximately 100 MW and future demands at build-out are projected to be approximately 320 MW, using current usage patterns to project future use. • The current system capacity is about 120 MW. • The system will need 200 MW of increased capacity and delivery infrastructure to serve the Wood River Valley's build-out needs. Any growth-related system upgrades will be built only when required by increased system demands. Purpose of the Wood River Electrical Plan The purpose of the Wood River Electrical Plan (WREP) is to outline and prioritize improvements and additions to the high voltage transmission and substation infrastructure to address the Valley's power needs from now through build-out. The development of the Plan was accomplished through a cooperative effort with the Community Advisory Committee (CAC). The CAC consisted of 19 members representing Blaine County, the cities of Sun Valley, Ketchum, Hailey, Bellevue, Picabo and Carey, Blaine County planning administrators, Lincoln County, private business/developers, area residents, the SLM, USFS and the Nature Conservancy. The Plan specifies locations for major transmission lines serving the Valley for many years to come and provides direction for the location of a new distribution/transmission substation to serve the southern part of the Valley. Individual projects resulting from this Plan will still require jurisdictional approval and will be subject to a public siting process. This plan gives the jurisdictions and citizens a "heads-up" as to where high-voltage transmission equipment may be located and allows them to plan accordingly. In preparing the WREP, Idaho Power and the CAC considered the effect that demand-side management could have on future load in the Wood River Valley. Demand-side management includes energy efficiency efforts that reduce total energy consumption and peak response programs that reduce the maximum demand on the power system. Idaho Power is committed to reducing electrical load through the use of demand-side management at all customer levels. In conjunction with activities outside Idaho Power's control -such as expected improvements in Idaho building standards, customer involvement, and energy efficiency technology advancements -Idaho Power expects new electrical load can be reduced by 20 to 30 percent. Actual reduction in power consumption will be taken into account as infrastructure improvements are implemented. However, even if new electrical load is reduced by 30 percent, new electrical infrastructure is still required to reliably and dependably serve existing and new load. Renewable power sources are an important component of the total resource portfolio that provides energy to the Wood River Valley. Small scale development of renewable resources (mostly solar) has occurred throughout the Valley while much larger wind, solar and geothermal Updated May 2011 Wood River Electrical Plan 2 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 11 of 92 Idaho Power Company resources have been and continue to be developed in the region around the Wood River Valley. The power system infrastructure, including transmission lines and substations, enables access to these regional resources for the residents of the Valley. Once brought in to the Valley, the electrical power from renewable resources still require transmission lines, substations and distribution lines to bring the energy to the consumer. A dependable transmission system that serves as the primary full-time power source will continue to be required to reliably meet the power demands of the Wood River Valley. Because of the high cost, limited potential, significant space requirements, visual impacts and intermittent nature of any large scale renewable resources, it is impractical to assume the transmission system could be replaced by renewable resources in the Valley. Significant additional energy resource development in the Valley could mitigate the need for some of the growth related upgrades outlined in the Plan. However, the need for reliability driven projects such as the second transmission line into Ketchum does not change with more renewable development. The Committee's Recommendations (see recommendations map; Figure 1) Through the consensus agreement of the CAC, the WREP recommends the following infrastructure improvements and additions: (Items are labeled on the map in Figure 1 by letter) South Valley -South of Timmerman (A) Develop a new substation along Highway 75 near Burmah Road to serve the south Valley load and to act as a switching station for new transmission. (B) Construct a new 138 kV transmission line from Midpoint Station (near Shoshone) to the new Burmah substation. This line would be installed in parallel with Highway 75. (C) Construct a new 138 kV transmission line from the new Burmah substation to Moonstone Substation (located east of Fairfield). (D) Construct a new 138 kV transmission line from Burmah substation to Silver Substation (located near Picabo ). (E) Upgrade the existing King (near Hagerman) to Moonstone 138 kV transmission line to 230 kV. Mid Valley-Timmerman to Hailey (F) Improve the capability of the existing transmission lines from Silver Substation and Moonstone Substation into the Wood River Transmission Station in Hailey using higher capacity wire while maintaining the current 138 kV operating voltage. North Valley -Hailey to Ketchum (G) Construct an additional 138 kV transmission line between Wood River Transmission Station and Ketchum Substation to improve the reliability to the north end of the Valley. The CAC recommended that the new line run parallel with and adjacent to Highway 75. This route was considered the most sensible option because it follows the Valley's main transportation corridor. The Wood River Electrical Plan was formed after a series of meetings of the Community Advisory Committee (CAC) held throughout 2007. The CAC met two more times in 2010 and Updated May 2011 Wood River Electrical Plan 3 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 12 of 92 Idaho Power Company one final time in the spring of 2011 to further refine their recommendations and review additional transmission line design details specifically for the new Hailey to Sun Valley/Ketchum transmission line (item G above). The consensus CAC recommendation is to build an overhead 138 kV transmission line from Wood River substation north to the St. Luke's hospital area. This new line would be in place of existing overhead distribution power lines along Buttercup Rd and Highway 75. From the hospital area north to the Ketchum substation, an underground 138 kV transmission line is preferred by the CAC. The underground option is contingent on local community funding. The Idaho Public Utilities Commission requires the costs of underground transmission lines that exceed the cost of the overhead line be paid by entities other than Idaho Power and its customers in general. For any underground transmission line between Hailey and Sun Valley/ Ketchum, the local community must pay the difference in cost between the underground line and the equivalent overhead transmission line. Preliminary funding options are currently being developed. This funding issue is expected to be a significant part of the public siting and permitting process in the near future for the new line between Hailey and Sun Valley/Ketchum. Idaho Power extends a heartfelt thank you to every member of the CAC. The time and effort the committee gave to this project was tremendous. Their work has provided Idaho Power and the affected communities with a framework from which to begin the public siting process to build the power system that corrects the present deficiencies and addresses future requirements of the power system serving the Wood River Valley. Updated May 2011 Wood River Electrical Plan 4 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 13 of 92 0 Figure 1. Committee Recommendations Map QI en CD z "'CO 0 QI . -m IO )> "'C X CD:::J<;):2: ..... '° mo-~~I;::.: 0 --_. Z --O> 0 co"Cr:.,- N () 00 N Updated May 2011 Wood River Electrical Plan .-Subaatioa IOUlb o(Timmcrman near Burma Rd -138 kV tranmus.sion from Wood Rn·cr l'nmlmislK>n Slauon IO Ketchum Subub00 ..Q\ ahead 138 kV ttanunamon from new subs&atJon IOMoonlloneSobslalOn. .0.-cmcad 138 kVinnsmisslonfrom""" subslallOo IOSih·cr- .0.-cmcad 138 kV 1-naiSIOn from Midpoint IO l'IC\I substa1ion, Modiricatioal ~omen cxisung Kutg -Moomaonc transmlSSIOn to 2JOkV -h-Sih·c:rand Subuuon lO 80 MW ·1-Moo-Subuuon 10 IIO MW. -Underground 138 kV............,.. from Jumper Rd IO Elkhom Subll (paid for b) alfcacd po,Ucs). ·lmpro'tc cxasti111Moonsaonc to~ .s.ilclung st.aaon lr.Ulslnissionl0200MW. -lq,R,\ c e'<dtmg Sliver IO Wood Rn er b1111SD111110D I0200MW -II-Eloc1rb1Plan -A-Mlpping- ~2007 ·--·6u---138 WT.........., (OH or lJG not Specifiod) _p,. __ 230kV T- ---138kVOHT- -P..r.rrld-.-138WUGT......,...lon -EXllting-111 W Tian"'""°" ~138WTranlffllHion ..\ N -ExllbnQ 230 kV Tran&m11s.on -ExJltlng 345 kV Tranlffliu.on 0 1252.5 " ,0 5 Idaho Power Company Introduction Located in South-central Idaho, the Wood River Valley is a vibrant area that includes the cities of Ketchum, Sun Valley, Hailey and Bellevue. The economy of these communities has become more and more dependent upon electricity as both businesses and residents install increasing amounts of electrical technology. The Valley's increasing reliance on electricity makes it important that Idaho Power improve its infrastructure serving the Valley to provide reliable and dependable electrical service throughout the Valley. Future growth in electricity demand also makes it important that plans be made for additional power system capacity to the Valley prior to the existing transmission lines reaching their full capability. The electrical needs of the Wood River Valley can be described using two separate, though interrelated concepts: dependability and adequacy. In the first case, the electrical system must be dependable. When you flip a light switch, you expect it to turn on a light. When you push the power button on your computer, you expect it to turn-on. And you expect that to happen every time you flip the switch or push the button. To maximize its dependability, an electrical system must be redundant. That is, it must have more than one transmission line serving an area so that if one transmission line is damaged, the other can still provide the electricity. This is not the case in the north end of the Wood River Valley today. To date, the single transmission line that serves Sun Valley and Ketchum has been very dependable, but it was built in 1962 and needs more and more maintenance to maintain that dependability. And to a great extent, this line's dependability is reliant upon the forces of nature. A major winter storm or summer brush fire could damage the line to the extent that the north end of the Valley could be without power for a day or more. The second concept is adequacy. As the electrical load in the Wood River Valley grows, the two transmission lines feeding into Hailey from the south will soon not have the capability to serve the Valley adequately while maintaining the dependability of the Valley's electrical supply. While the Valley doesn't need more transmission lines feeding into Hailey from the south, the existing capability of the two transmission lines will have to be increased. A new transmission line and upgrades to existing transmission lines are also planned from the Magic Valley up to the Wood River Valley to improve reliability and provide additional capacity to the Valley. Idaho Power invited members of the Wood River Valley community to be involved in a Community Advisory Committee (CAC) to help layout the Wood River Electrical Plan to address the dependability and adequacy of the Wood River Valley's electrical supply. The Plan specifically outlines the electrical infrastructure needs of the Valley from today through the Valley's population and load buildout. The committee was made up of city and county planning representatives, local politicians, environmental interest groups, Forest Service and BLM representatives, major land-owners and community activists. Idaho Power also invited representation from Lincoln County because any new transmission infrastructure built into the Wood River Valley would likely cross through Lincoln County. A complete list of members can be found in Appendix A. This report documents the study process and the committee's consensus recommendations pertaining to the power system serving the Wood River Valley. Updated May 2011 Wood River Electrical Plan 6 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 15 of 92 Idaho Power Company Background Population and Electrical Load Projections Idaho Power uses future population to estimate the long-term power needs for the Wood River Valley. For the area of Blaine County from Timmerman Hill to SNRA Headquarters north of Ketchum, Idaho Power estimates the 2006 population to be 21 ,600. During the winter of 2006, this population consumed 99.5 megawatts (99,500,000 watts) of electricity at peak. The peak electricity demand in the winter of 2010-2011 was about 102 MW for the Wood River Valley. Using two different methods to determine the population at Valley buildout, the projected population will be nearly 76,000 people and the electrical power requirements will be around 320 megawatts, or about 320% of what is used today. That is, when the Valley has reached population saturation, it will require 3 times as much power as it uses today. Of course this is assuming that present consumption is representative of future consumption. Idaho Power, along with the Community Advisory Committee hopes that consumption will decrease as energy efficiency measures become more effective but the present trends are not positive. While new appliances, lighting and equipment continually become more efficient, individual homes and businesses have more of them and people are finding new ways to use electricity. Existing Wood River Valley Electrical Supply System The Wood River Valley is served entirely by transmission lines. There are no electrical generation facilities located within the Valley. Figure 3 shows the transmission system feeding the Valley. Updated May 2011 Wood River Electrical Plan 7 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell , IPC Page 16 of 92 Idaho Power Company Wood River Electrical Plan Existing Facilities Overview Map -46,000 vat Transmission -Interstate -138,000 VOit TrMsmissk>n Highway -230,000 \loft Transmission -345,000 Volt TransmisslOrl Figure 3. Wood River Valley Electrical Supply Overview Map. There are two 138 kV transmission lines serving the Valley up to Hailey (blue lines running north on the drawing), • King Transmission Station to Wood River Transmission Station • Midpoint Substation to Wood River Transmission Station The King to Wood River transmission line was built in 1962 and enters the Valley northwest of Hailey. The Midpoint to Wood River transmission line was built in 1989 and has the higher capacity of the two lines; its wires are larger so it can carry more power. It enters the Valley east of Picabo. Idaho Power refers to these two lines combined as the Wood River loop. From the Wood River Transmission Station in Hailey to the Ketchum/Sun Valley area, there is one transmission line. This line was built in 1962. There are five substations within the Wood River Valley that reduce the transmission voltage to a lower distribution voltage and route the power onto smaller lines for delivery to end users. These substations are: Updated May 2011 8 Wood River Electrical Plan Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 17 of 92 Idaho Power Company • Ketchum Substation -Located in Ketchum on Sun Valley Road • Elkhorn Substation -Located in Sun Valley near the intersection of Elkhorn and Juniper • Hailey Substation -Located in Hailey on Carbonate Road • Moonstone Substation -Located along Highway 20 about 18 miles east of Fairfield • Silver Substation -Located just east of Picabo Note the Wood River Transmission Station in Hailey does not reduce voltage to directly serve customers; it is only used to control the transmission lines feeding into the Valley from the south and the transmission line feeding north from Hailey toward Ketchum/Sun Valley. Existing Dependability The southern half of the Wood River Valley, from Hailey south, is served by two transmission lines, giving it redundant power service a majority of the year. However, the northern part of the Valley is served by a single transmission line. When a storm, accident or brush fire damages the line, there is no alternative way to provide power to the Ketchum/Sun Valley area. Idaho Power maintains and patrols this single line to a higher standard than most other transmission lines in its service territory for just this reason. The line is, however, over 49 years old and will require even greater care in the future. The two transmission lines serving as far north as Hailey provide better dependability than would a single transmission line. Presently, the combination of these two lines can serve the most extreme peak usage in the Valley at any time. However, the lines individually do not have the capability to serve the entire valley load at winter peak. This means that if one of the lines was to be taken out-of-service during the winter when Valley loads are the highest, the remaining line would not be able to carry the entire Valley load. The load would have to be reduced through the use of rotational outages for the duration of the outage. Depending on the cause and extent of the damage that caused the line to go out-of-service, the rotational outages could extend for several days. Obviously, if the transmission line serving from the Wood River Transmission Station north to Ketchum/Sun Valley is taken out-of-service at any time of year, there would be no way to serve most of the load in the north end of the Valley. As mentioned before, because of the potential hardships an outage of this line could cause to the citizens and businesses of the north Valley, Idaho Power maintains and patrols this line to a significantly higher degree than it does most other transmission lines in the Idaho Power system. But as this line ages, it will become more and more difficult to maintain its dependability. The line was built in 1962 and as the years go by, it can be expected that more failures will occur. And no matter how much maintenance is done on this line, forces of nature can cause it to fail. Updated May 2011 9 Wood River Electrical Plan Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 18 of 92 Idaho Power Company Committee Process and Input Idaho Power engaged KMP Planning of Twin Falls to facilitate the Community Advisory Committee meetings. The meetings started in January 2007 with a bus tour of Idaho Power facilities, beginning a series of primarily educational meetings that were held monthly through March 2007. Through these educational sessions, the CAC was introduced to electrical generation, substations, transmission, demand-side management, and regulatory affairs. Additionally, the CAC was presented with a view, from production to delivery, ofldaho Power's electrical system. Using the education gained from the meetings held from January through March, the CAC set to work in April and May to Jay out proposed Wood River Valley transmission line routes and substation sites. Alternative Energy Generating Technologies During the initial committee meeting, a presentation was given by Idaho Power that outlined various alternative energy generation technologies that could deliver energy to the Wood River Valley and thus decrease the need for additional power lines. The technologies discussed included wind turbines, geothermal generators, photovoltaic (solar), combustion turbines and fuel cells. A number of small-scale solar (roof mounted photovoltaic) have been installed by private citizens and businesses in the Wood River Valley. These small scale projects and others such as residential sized fuel cells could offset some of the power demands of the Wood River Valley and potentially delay the need for growth driven power system upgrades. A detailed description and discussion concerning alternative energy generating technologies can be found in Appendix C. The amount of energy produced by renewable resources and delivered into Idaho is increasing at a rapid pace. Idaho Power is currently contracting for all the energy from the wind turbines currently operational in the Magic Valley, a large scale wind facility in eastern Oregon and all the energy from the Raft River geothermal project in eastern Idaho. Additional small to mid­ sized wind turbine facilities are proposed for the Magic Valley and construction on some of them should start soon. Idaho Power, in a joint venture with PacifiCorp, is planning 500,000-volt transmission coming into Idaho from Wyoming which will enable the wind resources in Wyoming to be developed. However, all these resources will still require transmission infrastructure and equipment in order to deliver energy to end users. Energy Efficiency Another way to reduce the need for additional transmission resources in the Wood River Valley would be to aggressively pursue energy efficiency technologies or in utility terms, demand-side management (DSM). Idaho Power is currently providing many programs funded by a Customer Conservation Charge to customer bills that promote the use of DSM to reduce electricity usage. Idaho Power's 2004 Integrated Resource Plan (IRP) called for an average of 41 megawatts of energy savings due to DSM by 2014. The 2006 IRP calls for an average of 90 megawatts of energy savings due to DSM by 2024. Table 1 shows the current Idaho Power programs. The Idaho Power Website at www.idahopower.com contains full descriptions of these programs. Updated May 2011 Wood River Electrical Plan 10 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 19 of 92 Idaho Power Company Residential Commercialllndustrialllrril(ation AIC Cool Credit Irrigation Peak Rewards Weatherization Assistance Irrigation Efficiency Rebate Advantage Building Efficiency Energy Star® Homes Easy Upgrades Energy Star® Lighting Customer Efficiency Energy House Calls Table 1. Idaho Power Demand Side Management Programs Additionally, Idaho Power currently has rates that vary by season, with summer electricity rates being higher than winter rates in order to encourage lower energy use in the summer when the overall electricity usage on the Idaho Power system is highest. In the Wood River Valley, these seasonally varying rates do nothing to reduce power usage when the reduction is needed most ... in the winter. Idaho Power is also investigating using time-of-day pricing and critical peak pricing that would encourage customers to use less energy during the peak times (such as late afternoon and early evening). Idaho Power Company Energy Efficiency activity and Programs in the Wood River Valley Idaho Power offers ten distinct Energy Efficiency programs in the Wood River Valley as well as throughout most of its service territory. A listing of each program follows with a brief description of each. More information of each of the programs can be found at www.idahopower.com/energycenter. Residential Programs: • ENERGY STAR® Homes Northwest A $750 incentive is paid to builders for each home built to the ENERGY STAR® standards. These standards are 30 percent more efficient than one built to the ldaho building code. • Energy House Calls This program offers a free package of services (inc. duct sealing) designed to help save energy for residents of manufactured homes heated by an electric furnace or heat pump. • Rebate Advantage This program offers $500 payment to Idaho Power customers who purchase a new ENERGY STAR® manufactured home. • Weatherization Assistance for Qualified Customers This program offers free weatherization measures for electrically heated homes of qualified customers to help them maintain a comfortable and efficient home environment. • ENERGY STAR® Lighting This program is a specialty bulb promotion offered in conjunction with BPA (Change a Light, Change the World) to provide a buy-down of bulbs at large retailers. Future programs offer promotions of other bulbs at various retailers. Updated May 2011 Wood River Electrical Plan 11 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 20 of 92 Idaho Power Company • Heating and Cooling Efficiency Program This program provides cash incentives to residential customers (and HVAC contractors) for choosing and installing qualified energy-efficient heating and cooling equipment and services through approved HY AC contractors Commercial and Industrial Programs: • Custom Efficiency This program offers financial incentives for large commercial and industrial energy users with large and complex projects to improve the efficiency of their electrical systems or process. • Building Efficiency This program offers incentives of up to $100,000 designed to offset part of the additional capital expenses for more efficient lighting and cooling designs in small and mid-size commercial construction projects • Easy U pg rad es This program offers Incentives ofup to $100,000 for a menu of simple commercial, industrial building retrofit projects. Incentives are available for lighting, HY AC, motors, building shell, plug loads and grocery refrigeration and are based on each measure's assumed energy savings. Agricultural Programs: • Irrigation Efficiency Rewards This program offers an incentive which pays up to 75 percent of the cost for irrigation customers who improve the energy efficiency of an existing pump system or up to I 0 percent when installing a new efficient system. • Irrigation Peak Rewards This program offers a demand credit for specific irrigation customers who allow Idaho Power to use electric timers to tum off their pumps for a few hours on selected summer days reducing afternoon peak demand and lowering the customer's electric bills. Wood River Valley projects: Although Idaho Power doesn't commonly track Energy Efficiency programs specifically by area or city, a manual examination of the Energy Efficiency incentive records show that from 2005 to October 2007 Idaho Power has identified 24 individual projects completed in the Wood River Valley area. These projects were completed in Ketchum, Bellevue, Hailey, Sun Valley, Fairfield, Carey, and Picabo. Four projects were under the Custom Efficiency Program. One project was completed under each of the Building Efficiency, Easy Upgrades and Rebate Advantage programs and seventeen projects were completed under the Irrigation Efficiency Rewards program. Idaho Power paid a total of $130,290 dollars in incentives for an annual energy savings of approximately 1,342,602 kilowatt hours (kWh) and 155 kilowatts (KW) in demand savings for the non-irrigation programs. Under the Irrigation Efficiency Rewards program, Idaho Power paid $28,637 in incentives for an annual savings of approximately 205,717 kWh and about 57 savings in KW. Updated May 2011 Wood River Electrical Plan 12 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 21 of 92 Idaho Power Company There are many other activities in addition to those sponsored by Idaho Power that customers could undertake to reduce their energy use and, like the alternative generating resources discussed previously, it will be up to the local residents, businesses and governments to make them a reality. Goals Document The first step in developing proposed solutions to the electrical needs of the Wood River Valley was to develop a Goals Document that could be used to guide the committee's efforts to develop and evaluate alternatives. The committee spent a significant amount of time refining the Goals Document to ensure it represented their desires for a responsible, reliable and affordable electrical system. Much discussion took place concerning the preservation and improvement of view corridors, cost issues and comparing new lines to existing lines. The goals were divided into 6 areas: • Reliable Power: Provide reliable power to the entire Wood River Valley • New Infrastructure Design: Develop new transmission and delivery infrastructure as appropriate when providing for current and future power needs • Energy Conservation: Implement programs that reduce demand for additional energy • Environment: Cause no or minimum impacts to the natural, physical, cultural, historic, social and aesthetic environment due to development and operation of power facilities and delivery systems • Political Support: Develop solutions that are politically supported throughout the Wood River Valley • Cost Effectiveness: Develop solutions that are cost effective and provide associated benefits The CAC developed a number of bullets describing the goals more fully. These can be found in Appendix C, Page 6. The CAC also came up with a list of siting criteria. These criteria may not all be completely achievable, but they are measures to be strived for when developing and evaluating alternatives. • North of Wood River Transmission Station (WDRI) • Provide both redundancy and capacity to meet electrical needs north ofWDRI • Do not use the existing 138 kV transmission corridor without new technology to avoid new impacts • Preserve the scenic corridor • Maintain the ordinance-required 150 ft setback.from residences when using overhead transmission lines • Conform to existing hillside ordinances • Install underground lines in locations where the necessary additional funding is available. • South of Wood River Transmission Station (WDRI) • Provide electrical infrastructure and systems that meet Lincoln County electrical needs • Improve structures and transmission lines in Lincoln County as needed to accommodate future growth • Maintain scenic corridors Updated May 2011 13 Wood River Electrical Plan Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 22 of 92 Idaho Power Company • Cause no environmental impact to wetlands and habitat • Use existing corridors and transmission equipment where possible • The use of overhead lines and infrastructure is acceptable until the affected community can afford to fund a different proposal • Maintain or reduce pole size in Bellevue Mapping Exercise Using the education provided in January through March and the goals developed in March and April, the CAC set to work in April laying out proposed Wood River Valley transmission routes and substation locations. The CAC also used the load block diagrams developed by Idaho Power personnel to aid them in determining the size oflines needed to support the Valley's load. The exercise was divided into three sub-areas for planning: South of Timmerman, Mid Valley and North Valley. The committee was broken into three groups. Each group was given a large aerial photograph showing the terrain from Ketchum in the north to Midpoint and King Substations in the south. Using the goals and siting criteria as a guide, each group developed feasible alternatives to meet buildout requirements. The following guidelines were used in forming the small groups: • Groups were designated A, B and C for alternative discussion purposes • Each group included committee members from throughout the planning area • Each group included an Idaho Power representative to provide technical support and a facilitator to capture the details for each of the alternatives The three groups came up with a total of 6 alternatives covering various parts of the Valley. To aid in screening the alternatives developed by the three groups, a screening matrix was developed that each CAC member could fill in to see numerically how each alternative ranked. It must be noted that a numerical screening of alternatives was just an initial tool to evaluate the alternatives against one another. The final decision as to which alternative or alternatives to designate as the most feasible going forward is a consensus decision reached within the CAC and the matrix was just part of this decision process. Appendix C contains detailed results of the screening matrix exercise. Committee Consensus on Alternatives Using the results of the scoring matrix as a basis for discussion, the committee went on to reach consensus on each of the three sub-areas of the Plan; South of Timmerman, Mid Valley and North Valley. Figure 3 is a combination of the preferred alternatives for each of the three Valley sub-areas. This figure is also in Appendix D, page 8 in a larger, more readable size. Updated May 2011 Wood River Electrical Plan 14 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 23 of 92 Idaho Power Company . • NH138kV nnllNllion fran Wood Riwr ~ ..... St ..... lo l<.efdlUn &Jbllllion . Roua. noc tpedlc: onca inltMl<.ll: ..... Citylllr,b. Figure 4. Preferrerd Alternatives South Valley -.&Na10010.•on.._....,_. l'MWI kd -131l.\'11'..-hPIW.:iodb·• n-......u1 Sta,on 10Kdctio. s-.t111MJ11 -0\'IIIMNIJSL\·a---hnllffl tuhn uoa IOMOOUllOIIC~ .. -0\altlld l Ulk\'o-..a .. flfflhnlWW•.....,io. lo S1h-« Mtbbolt ..o.'Clbcad 1JB .. , ......... .-uau1Wpou10 ---·l(ID J.li>itific•IOIIII oC'c:lffl.cnua11 ... K1Rt·~'°"'* ................ ., :JOk\' ·bial'•Sth·•lltd~IOIOMW •IHCJCNC MoorUIOM s.ll•lbea 10 9) r.rw -lloa,h,iwooud lJ8ll\'t1 __ t'-,,..,..._M ~fl 10E1.bc111S-•l,atdf0tltyal"c,,.-t .. pa,tw,:) ~ .... O\'t « ..... MoMltGwlODN'IMillcfml lhl-.._. lO ::OOMW •ln .... M'e a: ..... 8thw10WoodK11-.11-- 10200M\V _Pl'....,NM ....... lllllV~{OH• UG...eSpadlMI .. ,...,._. ........ 230t.VT!---... -~ ............ ,wwow.,....... ,_'"""'9d--..,..131WUGTI........_ -e--..a11vn_.._ hllillgl31kV1---­ -~?30.V~ -~:ws•vr......... __\ • For South Valley, the preferred alternative would convert the existing 138 kV transmission from King Substation to Moonstone Substation to 230 kV. It would install a new Substation south of Timmerman Hill along Highway 75 near the intersection of Highway 75 and Burmah Road (depending on land availability). For reference, this new substation will be referred to as Burmah Substation. It would then install a new 138 kV transmission line from Midpoint Substation to the new Burmah Substation and a 138 kV transmission line from the new substation to Moonstone Substation. It would also install a new 138 kV transmission line from the new Burmah Substation to Silver Substation routed along Burmah Road until it reached the existing 138 kV line. The new circuit would then be run on common towers with the existing 138 kV circuit until it reached Silver Substation. The preferred alternative designates that both Silver and Moonstone substations be upgraded to 80 MW capacity. It is noted that the existing 138 kV transmission from Juniper Road near Sun Valley to Elkhorn Substation is to be placed underground (paid for by affected parties). Mid-Valley The preferred alternative for Mid-Valley would upgrade the existing Moonstone to Wood River Transmission from 105 megawatts to 200 megawatts and upgrade the existing Silver to Wood River Transmission from 120 megawatts to 200 megawatts. The Moonstone to Wood River Updated May 2011 Wood River Electrical Plan 15 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 24 of 92 Idaho Power Company transmission structures would have to be rebuilt, but the net result will be that the visual impact of this line will not change. North Valley The preferred alternative for the North Valley region constructs an additional 138 kV transmission line between Wood River Transmission Station (located in Hailey) and Ketchum Substation to increase the dependability of the electrical supply to the north end of the Valley. Today there is only one transmission line feeding north from Hailey to Ketchum. The committee recommended that this line run in parallel with and immediately adjacent to Highway 75. This route was considered the most sensible option because it follows the Valley's main transportation corridor. The committee as a whole did not specify whether this line should be installed overhead or underground. There was a preference among a few members that this line be placed underground if cost wasn't an overriding factor. Photographic overlays showing an example of a new 138 kV overhead transmission line along Highway 75 south of Ketchum can be found in Appendix J of this report. Overhead vs Underground Transmission By far the most challenging issue the committee addressed was overhead vs underground transmission, particularly for new transmission from Hailey to Ketchum/Sun Valley. As regulated by the Idaho Public Utilities Commission ([PUC), [daho Power is obligated to build its infrastructure in the most cost effective manner possible. Based on past experience, underground transmission is generally l O times more expensive than overhead transmission. Idaho Power cannot construct underground facilities unless there are extenuating circumstances that would require it. These circumstances could include environmental issues or land availability issues. If a community wishes that transmission be placed underground for aesthetic reasons, the cost difference between overhead and underground transmission would have to be provided for by that community before the transmission could be placed underground. One committee member discussed at length the belief that right-of-way costs for underground transmission in the North Valley would be significantly lower than for overhead transmission because landowners would be more willing to grant easements for underground transmission. The cost difference for the right-of-way could overshadow the material cost difference between overhead and underground transmission. The member also asserted that the political and legal costs would be quite high if Idaho Power were to attempt to install 138 kV overhead transmission in the North Valley. It was suggested that [daho Power analyze this potential difference in right-of-way costs. While Idaho Power agrees that community acceptance for underground transmission would be greater, there is no valid method that can be used to estimate the cost difference for right-of-way between overhead and underground transmission short of actually going out and attempting to purchase the easements. It should be noted that some other committee members believed that there would actually not be a great difference between overhead and underground easement costs. The committee as a whole did not specify whether this line should be installed overhead or underground. There was a preference among a few of the members that this line be placed underground if cost wasn 't an overriding factor. Updated May 20 I l Wood River Electrical Plan 16 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 25 of 92 Idaho Power Company Implementation Plan The recommendations of the Community Advisory Committee cover infrastructure improvements to the Idaho Power system that will deliver sufficient power at the Wood River Valley's buildout. Not all the facilities are needed in the near term and will be phased in as the Valley's load increases. The following is Idaho Power's recommended implementation plan: 5 Year • Build a second 138 kV transmission line between the Wood River Transmission Station in Hailey and Ketchum Substation. This is the top priority project. • Site and build the new Burmah Substation south of Timmerman Hill • Build a new 138 kV transmission line from Midpoint Substation near Shoshone to the new Burmah Substation • Build a new 138 kV transmission line from Burmah Substation to Silver Substation (near Picabo) • Build a new 138 kV transmission line from Burmah Substation to Moonstone Substation ( east of Fairfield) 10 Year • Upgrade Moonstone to Wood River transmission line to 200 megawatts • Add new 230 kV to 138 kV transformer at Midpoint Substation 15 Year o The existing transformer capacity will be inadequate to serve the Wood River Valley load at this point. • Add new voltage control device at Ketchum Substation o Won't require new lines into Ketchum Substation o Won't require that Ketchum Substation be enlarged 20 Year • Add distribution feeders from Wood River Transmission Station 30 Year o Currently, this station only serves to switch the transmission, it doesn't directly feed any of the load around Hailey o This would relieve some of the load from Hailey Substation • Upgrade Silver to Wood River transmission line to 200 megawatts o This will provide more capacity to the growing Valley load o This will also help to support the voltage at Ketchum and Elkhorn substations When load levels require, the King to Moonstone 138 kV transmission line will be converted to 230 kV. This will require that the line be completely rebuilt but it will likely be installed in the existing right-of-way. Moonstone Substation will also require improvements at this point to accommodate the higher voltage. Updated May 2011 Wood River Electrical Plan 17 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 26 of 92 Idaho Power Company Conclusion/Results The Wood River Valley is a vibrant, growing region that depends on a reliable electrical system to serve its tourism based economy. Along with growth-related increases in electricity demand, the businesses and residents of the Wood River Valley are more dependent on electricity today than ever before. Where 25 years ago, few owned a personal computer, now many residents have multiple PCs. Many people work from home and are dependent on their PC and home network to do business. Most, if not all, businesses now have electronic or even computer driven cash registers. New technology increasingly drives the need for electricity and it will continue on into the foreseeable future. A dependable power system becomes especially important in the cold winter months. Residents of the valley, both permanent and occasional expect and require the power system to provide electricity to furnaces and water heaters for their homes. These heating loads drive the power demands to peak in the coldest winter months. A long duration outage in the winter due to a transmission line outage would be a public emergency and could result in frozen homes, and damaged water pipes throughout the Valley. The wintertime ski industry also depends on electricity for both chair lifts and snow making. The importance of a reliable electrical system to skiing operations was even evident in the summer of2007 when snow making equipment was used to protect Bald Mountain facilities during the Castle Rock fire. For these reasons, Idaho Power must be proactive in planning for new infrastructure to serve the needs of the Wood River Valley. The Wood River Electrical Plan (WREP) lays out high voltage transmission and substation infrastructure from now through Valley population and load buildout. In a cooperative effort with the Community Advisory Committee, the Plan determines locations for major transmission lines serving the Valley for many years to come and provides direction for the location of a new distribution/transmission substation to serve the southern part of the Valley. Individual projects resulting from this plan will still require jurisdictional approval and will be put through a public siting process. This first step, however, will give the jurisdictions and citizens a heads-up as to where high-voltage transmission equipment may be located and allow them to plan accordingly. The Wood River Electrical Plan takes into account the effect that demand-side management will have on future load in the Wood River Valley. Idaho Power is committed to reducing electrical load through the use of demand-side management at all customer levels. In conjunction with activities outside Idaho Power's control -such as expected improvements in Idaho building standards, customer involvement, and energy efficiency technology advancements -Idaho Power expects new electrical load can be reduced by 20 to 30 percent. Through the consensus agreement of the CAC, the WREP recommends the following: • An additional 138 kV transmission line between Wood River Transmission Station (located in Hailey) and Ketchum Substation to increase the dependability of the electrical supply to the north end of the Valley. Today there is only one transmission line feeding north from Hailey to Ketchum. The committee recommended that this line run in parallel with Highway 75. This route was considered the most sensible option because it follows the Valley's main Updated May 2011 Wood River Electrical Plan 18 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 27 of 92 Idaho Power Company transportation corridor. The consensus CAC recommendation is to build an overhead 138 kV transmission line from Wood River substation north to the St. Luke's hospital area. This new line would be in place of existing overhead distribution power lines along Buttercup Rd and Highway 75. From the hospital area north to the Ketchum substation, an underground 138 kV transmission line is preferred by the CAC. The underground option is contingent on local community funding. • The location for a new substation south of Timmerman Hill near the intersection of Highway 75 and Burmah Road to serve the South Valley load and to act as a switching station for new transmission. For reference, this substation is named Burmah Substation. • Construction of a new 138 kV transmission line from the new Burmah Substation to Moonstone Substation (located east of Fairfield). • Construction of a new 138 kV transmission line from the new Burmah Substation to Silver Substation (located near Picabo ). • Increased power supply from south of the Wood River Valley to the Wood River Transmission Station in Hailey to serve the increasing electrical load in the Valley. This increased supply includes; o Construction of a new 138 kV transmission line from Midpoint Substation (near Shoshone) to Burmah Substation. This line would be installed in parallel with Highway 75. o Conversion of the existing King Transmission Station (located in Hagerman) to Moonstone Substation 138 kV transmission line to 230 kV. This will increase its capability. o Improve the capability of the existing 138 kV transmission lines feeding from Silver Substation (near Picabo) and Moonstone Substation into the Wood River Transmission Station in Hailey. This would be accomplished with larger wire installed on the existing structures if possible with the operating voltage remaining at 138 kV. The cost for this infrastructure to serve the buildout projected load is about $78 million, in 2007 dollars. Future changes in technology may make some of these improvements unnecessary or, at least, delay their need. These types of shifts, however, are impossible to predict; therefore, Idaho Power can only monitor them and understand that no matter how good the present plans are, external forces can change them. Updated May 2011 Wood River Electrical Plan 19 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 28 of 92 Idaho Power Company Appendix A -List of Community Advisory Committee Members Lloyd Betts Len Harlig Rob Struthers Chuck Turner Kurt Nelson Julie Ingram Tom Bergin Tara Hagen Tom Hellen Chuck Carnohan Tom Blanchard Nils Ribi Ron Le Blanc Jay Loesche Leonard (Nick) Purdy Jr. Dayna Smith Wally Huffman/ Dave Ziegler Rick Baird Rod Kegley Updated May 2011 Wood River Electrical Plan Juniper Springs Home Owners Former Blaine County Commissioner Real Estate and Ranching Former P&Z Blaine County Emergency Planning USFS & Ketchum/Sun Valley Chamber Board Hailey Chamber Executive Director Director Blaine County Planning and Zoning BLM Realty Specialist City Engineer, City of Hailey Idaho Dept. of Transportation City of Bellevue Administrator Sun Valley City Councilman Ketchum City Administrator Lincoln County Commissioner Rancher Nature Conservancy Silver Creek Preserve Sun Valley Company Friedman Memorial Airport Manager and Carey City Mayor Land Developer Appendix A -Page 1 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 29 of 92 Idaho Power Company Appendix B -Introduction and Technical Background Introduction Located in South-central Idaho, the Wood River Valley is a vibrant area that includes the cities of Ketchum, Sun Valley, Hailey and Bellevue. The economy of these communities has become more and more dependent upon electricity as both businesses and residents install increasing amounts electrical technology. The Valley's growth makes it important that Idaho Power improve its electrical infrastructure serving the Valley to ensure that reliability does not degrade. This growth also makes it important that plans be made for additional power supply to the Valley prior to the existing transmission lines reaching their full capability. In 1973, the Idaho Public Utilities Commission approved Idaho Power's application requesting a Certificate of Public Convenience and Necessity for the construction of a second 138 kV transmission line between Hailey and Ketchum. In 1995, Idaho Power convened a Community Advisory Committee (CAC) to discuss installing this second 138 kV transmission line. The consensus of this committee was that Idaho Power should delay installing a new line and reconvene a committee in 10 years time to review the status of need. This decision resulted from the fact that the need for the line was to improve reliability and not because of a lack of capacity. As a result of the committee's recommendation and at the request ofldaho Power, the Idaho Public Utilities Commission amended its 1973 order, removing the authority for the construction of the second 138 kV transmission line from Hailey to Ketchum. In accordance with the wishes of the 1995 Community Advisory Committee, Idaho Power once again formed a CAC in 2007 to evaluate the need for a second line feeding north from Wood River Transmission Station in Hailey to the Ketchum/Sun Valley area. ln addition to evaluating the need for this second transmission line, the present Community Advisory Committee evaluated the buildout electrical infrastructure needed to serve the entire Wood River Valley from Ketchum in the north to the Timmerman Hill area in the south. The committee, comprised of area planners, city leaders, business interests, special interest groups, advocacy groups, and general citizens, met monthly over a period of six months. A list of CAC participants can be found in Appendix A. Representation from Lincoln County was also included to ensure their voice was heard in siting any transmission that must transit their county in route to the Wood River Valley. This report documents the study process and the committee's consensus recommendations pertaining to the power system serving the Wood River Valley. Existing Population and Electrical Load For the area of Blaine County from Timmerman Hill to Ketchum, ldaho Power estimates the 2006 population to be 2 I ,600. The peak historic electrical load consumed by this population was 99.5 MW, which represents the maximum recorded coincidental load fed from Hailey, Elkhorn, Silver and Ketchum Substations and the distribution serving into the Wood River Valley from Moonstone and Silver Substations. Updated May 2011 Wood River Electrical Plan Appendix B -Page I Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 30 of 92 Idaho Power Company Wood River Valley Growth Electrical load growth calculations for the Wood River Electrical Plan were performed using two different methods. The first method was a spatial growth approach based on the comprehensive plans and current zoning for Blaine County and the cities of Sun Valley and Hailey. The second method was a population growth approach based on county economic development growth projections developed by Idaho Economics. Spatial Growth Approach The first method using the comprehensive plan approach and existing zoning laws assigned a load density in kilowatts-per-square mile (kW/mi2) to each zoning area. The commercial zoning load density was estimated based on existing "buildout" areas in the Idaho Power service area. For residential zones, 5 kW per house was used to calculate the load density in areas south of and including the City of Hailey. It is assumed the average size of house is larger in Ketchum and Sun Valley so 6 kW per house was used for these cities. Much of the zoned area in Blaine County is publicly owned land (BLM and US Forest Service) and is in the hills and mountains of the Wood River area. It was assumed that there would be no development on these publicly owned lands. Because there were no electronic maps of Bellevue zoning available, it was assumed that the zoning in Bellevue is similar to the zoning in Hailey. Multiplying the load density (kW/mi2) for each zoning class by the total area associated with each zoning class (private land only) results in total load in kilowatts (kW) for each zoning class. The area of all the publicly owned land was not included in the load calculations for each zone. Finally, the total Wood River Valley build out load was calculated by summing the total load for all the zoning classes. This approach resulted in a total buildout load of 312 MW. Appendix I contains the load density numbers used in the calculations. Population Growth Approach The population growth approach utilizes county population growth projection numbers developed by John Church, President ofldaho Economics. Historic and projected Blaine County population and household growth rates are shown in Table 2. Continued growth is expected, but at a slower pace for the next 25 years compared to the previous 25 years as the amount of private, buildable land dwindles. The population for Blaine County is projected to be 13,896 households or 34,378 people in the year 2030. These growth projections result in an annual growth rate of about 1.8% for the time period 2006 to 2030. The current average power demand per person in Blaine County is about 10.3 kW per household or 4.2 kW per person. Assuming constant long term population growth of 1.8%, the projected "buildout" population (year 2080) for Blaine County is 76,161 people. Multiplying by a consistent 4.2 kW per person yields about 320 MW for the total Wood River Valley area buildout load. Updated May 2011 Wood River Electrical Plan Appendix B -Page 2 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell , IPC Page 31 of 92 Idaho Power Company Population annual Households Annual Blaine County Growth Growth By Decade 1970-1979 5.49% 7.02% 1980-1989 2.66% 2.85% 1990-1990 2.99% 3.37% 2000-2009 2.08% 2.09% 2010-2019 1.41% 1.28% 2020-2029 1.90% 1.93% Previous 25 Years 1980-2004 3.05% 3.10% Previous 5 Years 2001-2005 1.70% 1.67% Next 5 Years 2006-2010 1.84% 1.85% Next 25 Years 2006-2030 1.82% 1.78% Table 2. Blaine County Population Growth Both approaches to calculating the projected "buildout" electrical load in the Wood River Valley yielded very similar results giving a good level of confidence in the results. Potential variations in the spatial/zoning approach could result from future zoning changes, and developers choosing to develop at a lower density rather than at the maximum density allowed by the zoning laws. The population growth results will vary because of economic and political changes in the area and other potential limits such as limited water or transportation limits. Updated May 2011 Wood River Electrical Plan Appendix B -Page 3 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 32 of 92 Idaho Power Company Existing Wood River Valley Electrical Supply System The Wood River Valley is served entirely by transmission lines. There is no generation located within the Valley. Figure 4 shows the transmission system serving the Valley. Wood River Electrical Plan Overview Map -46 kVTrantniMion • Subotlltion -138kVTra~ -230kVTrantmiuion -Interstate -345 kVTransmiuion Highway Figure 5. Wood River Electrical Plan Overview Map There are two 138 kV transmission lines serving the Valley up to Hailey, • King Transmission Station (KING) to Wood River Transmission Station (WDRI) • Midpoint Substation (MPSN) to Wood Transmission Station (WDRI) The KING to WDRI transmission line was built in 1962 and enters the Valley northwest of Hailey. It has a capacity of 105 MW. The MPSN to WDRI transmission line was put in-service in 1989 and is the stronger of the two lines, having a capacity of 120 MW. It enters the Valley east of Picabo. These two transmission lines combined are referred to as the Wood River loop. Updated May 2011 Wood River Electrical Plan Appendix B -Page 4 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 33 of 92 Idaho Power Company From the Wood River Transmission Station in Hailey to the Ketchum/Sun Valley area, there is only one transmission line. This line was built in 1962 and has a capacity of 120 MW. Table 3 shows the technical details for these three lines. Historic Historic Historic Historic Winter Peak Winter Peak Summer Peak Summer Peak Rating Year Line Loading Line Loading Line Loading Line Loading Line (MW) Built (MW) (%) (MW) (%) MPSN-WDRI 120 1989 77 64 45 38 KING-WDRI 105 1962 58 55 36 34 WDRI-EKHN 120 1962 62 52 26 22 Table 3. Wood River Transmission System Technical Details Note that the peak line loadings shown in Table 3 are non-coincident values. That is, these are the maximum values recorded on each individual line and were not necessarily recorded at the same instant in time. Thus, one cannot simply add the values in each column to come up with the whole Valley's peak load. There are five substations connected to the 138 kV transmission serving the Wood River Valley. These substations reduce the voltage from 138 kV to either 12,470-volt or 34,500-volt and route the power onto distribution feeders for delivery to end users. Table 4 shows the existing peak loads on each of these six substations. Like the transmission lines shown in Table 3, the peak loads shown in the following table are non-coincident values. It should be noted that Toponis Substation near Gooding and Lincoln Substation near Dietrich are also connected to the 138 kV transmission lines serving the Wood River Valley and add to the load carried by the transmission lines. The load added by these two substations is included in the line loading shown in Table 3. There is no distribution from Wood River Transmission Station and therefore does not directly serve any load. It is purely a transmission switching station so is not included in the following table. Historic Winter Peak Historic Summer Substation Load(MW) Peak Load (MW) Ketchum (KCHM) 48 18 Elkhorn (EKHN) 12 6 Hailey (HALY) 31 18 Moonstone (MOON) 8 12 Silver (SL YR) 4.5 6.5 Table 4. Existing Substation Peak Loads Figure 5 shows the service boundaries for the five substations serving the Wood River Valley. The boundaries described in this figure aren't static. As population and loads shift within the Valley, the load may be transferred to a substation with excess capacity to relieve a more heavily loaded substation. Updated May 2011 Wood River Electrical Plan Appendix B -Page 5 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 34 of 92 Idaho Power Company Wood River Electrical Plan Substation Service Areas -138 kV Transrriuion .Subotatlon -Highway Elkhorn -Halley -Ketchum --one -Sliver Figure 6. Existing Substation Boundaries Existing Dependability The southern half of the Wood River Valley, from Hailey south, is served by two 138 kV transmission lines; giving it redundant power service a majority of the year. However, the northern part of the Valley is served by a single 138 kV transmission line. When a storm or accident damages the line, there is no ability to provide power to the Ketchum/Sun Valley area. To minimize the risk of a catastrophic long term outage and to serve increasing population and electrical demand, it is increasingly important to provide a second power source to the northern part of the Wood River Valley in order to maintain electrical dependability. Because the transmission lines serving the Wood River Valley are not part of the bulk power system, Idaho Power is not mandated by federal or state regulators to provide a fully redundant power supply. However, in accordance with Idaho Power's internal planning standards, the Wood River transmission supply is designated as an improved radial system. This means that: • If both 138 kV transmission lines serving from the south into Hailey are in-service, they must be able to serve the most extreme peak at all times. Updated May 2011 Wood River Electrical Plan Appendix B -Page 6 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell , IPC Page 35 of 92 Idaho Power Company • If the weaker line is out-of-service (King Transmission Station to Wood River Transmission Station), the remaining line must be able to serve a load level that is experienced, or exceeded, less than 10% of the time. • If the stronger line is out-of-service (Midpoint Substation to Wood River Transmission Station), the remaining line service capacity may limit the ability to serve the load. If this were to occur when loads in the Valley were high (a cold winter day), it would likely result in some Valley electrical load being interrupted via rotational outages. Figure 6 is a load duration curve that gives an hourly breakdown of the recorded load values for the Wood River transmission loop for an entire year: March 1, 2006 through February 28, 2007 or 8,760 hours. 140 120 100 -~ ~ ,_. 80 ~ 0 ii: C. 60 0 0 ...J 40 20 0 1 876 1751 2626 3501 4376 5251 6126 7001 7876 8760 Hours Figure 7. Load Duration Curve for Wood River Loop Transmission In accordance with the second bullet above, the Midpoint Substation (MPSN) to Wood River Transmission Station (WDRI) line must be able to serve the entire load 90% of the year since it is the stronger line. The peak load recorded on both the lines serving the Valley combined between March 1, 2006 and February 28, 2007 was 128 MW (includes load outside the Wood River Valley served by these two transmission lines). As can be seen in the above figure, the load is 92 MW or less for 90% of the year. This is the load the Midpoint Substation to Wood River Transmission Station line must be able to carry by itself. Currently, the Midpoint to Wood River line has sufficient capacity to meet Idaho Power's improved radial reliability criteria since it has a capacity of 120 MW and the 90% load is only 92 MW. However, it will not be long Updated May 2011 Wood River Electrical Plan Appendix B -Page 7 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 36 of 92 Idaho Power Company before it will not meet the reliability criteria due to Valley load growth. In fact, the 90th percentile load grew from 88 to 92 MW in just one year's time. Since 2006, the MPSN -WDRI transmission line (stronger line) has not had enough capacity to serve the entire electrical load should the weaker line be out-of-service during the extreme peak loads of winter, though this only occurs for a very few hours. Up to 13 MW of load would have to be curtailed in the case where the MPSN -WDRI line is out-of-service during extreme winter peak because the weaker line (KING -WDRI line) can only carry 105 MW. Again, with the peak load growing, the amount that would require curtailing goes up every year. Obviously, if the transmission line serving from Wood River Transmission Station north to Ketchum/Sun Valley (KCHM) is taken out-of-service, there would be no way to serve most of the load in the Ketchum/Sun Valley area. A small amount of load could be served via distribution feeders from Hailey Substation. If this line was out in the middle of the winter, it could take a significant amount of time to repair, resulting in a long power outage to the Ketchum/Sun Valley area. Because of the potential hardships an outage of this line could cause to the citizens and businesses of the north Valley, Idaho Power maintains and patrols this line to a significantly higher degree than it does most other transmission lines in the Idaho Power system. Table 5 gives a breakdown of outages that have occurred on all three Wood River Valley transmission lines during the past 10 years (1996 -2006) Type and Cause of Outa2e MPSN-WDRI KING-WDRI WDRI-KCHM Total Sustained Outages 13 24 4 Caused by Weather 8 (62%) 5 (21 %) 1 (25%) Caused by Range Fires 3 (23%) 1 (4%) 0 Caused by Maintenance 2 (15%) 18 (75%) 2 (50%) Caused by Equipment Failure 0 0 I (25%) Total Momentary Outages 26 46 4 Caused by Weather 8 (31%) 12 (26%) 4 (100%) Caused by Range Fires 0 2 (4%) 0 Caused by Maintenance 1 (4%) 20 (43%) 0 Unknown Cause 17 (65%) 12 (26%) 0 Table 5. 10-Year Outage History for Transmission Lines in the Wood River Valley Updated May 2011 Wood River Electrical Plan Appendix B -Page 8 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 37 of 92 Idaho Power Company Appendix C -Committee Process and Input Community Advisory Committee meetings started in January 2007 with a bus tour of Idaho Power facilities. The bus tour began a series of primarily educational meetings that were held monthly through March 2007. Through these educational sessions, the CAC was introduced to electrical generation, substations, transmission, demand-side management, and regulatory affairs. Additionally, the CAC was presented with a view, from production to delivery, of Idaho Power's electrical system. Using the education gained from the meetings held between January and March, the CAC set to work in April and May to lay out proposed Wood River Valley transmission line routes and substation sites. Idaho Power engaged KMP Planning of Twin Falls to facilitate the CAC meetings. Alternative Energy Generating Technologies During the initial committee meeting, a presentation was given by Idaho Power that discussed various alternative energy generation technologies that could deliver energy to the Wood River Valley and thus displace the need for additional power lines. The technologies discussed included wind turbines, photovoltaic (solar), combustion turbines and fuel cells. Wind Turbines -While wind turbines are becoming an important resource throughout the United States, their use in the Wood River Valley is probably not viable: • The wind speed in the Valley is generally too low to allow the turbines to produce much usable energy. • There is very limited space in the Valley for wind turbines. • Even if the turbines were useable in the Wood River Valley, electrical transmission would still be required to deliver the energy to the end users. In the Hagerman area, about 60 miles southwest of Hailey, there is a 10 MW wind turbine plant that went into operation in 2005. There are also many other wind turbine power plants proposed and in the process of being installed in southern Idaho. Of course, to receive the energy produced by these facilities requires transmission so they do nothing to reduce the need for transmission infrastructure. On a smaller scale, residential size wind turbines mounted on houses and businesses could provide energy that could displace utility infrastructure, though again, the wind speed and its constancy is very low in the Wood River Valley. It would be up to the local residents and governments to make small scale wind turbines a reality in the Valley. Photovoltaic -The number of sunny days that the Wood River Valley sees every year would seem to indicate that it would be an ideal location for photovoltaic use. On a large scale, however, solar energy sites would suffer from the same negatives that wind turbines do: • There is very limited space in the Valley for a large solar generating plant. • Even if a large solar plant were useable in the Wood River Valley, electrical transmission would still be required to deliver the energy to the end users. But, like wind, residential and commercial size photovoltaic panels could certainly be installed and could displace the need for more utility infrastructure. Again, this would be up to the residents, businesses and local governments to bring it to fruition. Updated May 2011 Wood River Electrical Plan Appendix C -Page I Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 38 of 92 Idaho Power Company Geothermal -There are credible geothermal resources within the Wood River Valley and the immediate vicinity. While much of the geothermal is a lower temperature and thus not usable for power generation, there is some that likely is. In fact, there is at least one proposed geothermal power generation project located near to the Valley. The nearest developed geothermal power generating resource is the Raft River Project located near Raft River, Idaho. Idaho Power purchases the output from this plant. If a geothermal facility was developed near the Wood River Valley, it would still require electrical transmission to deliver the energy to Valley residents. Fuel Cells -Used in a distributed manner among homes and businesses, fuel cells could displace the need for additional transmission in the Wood River Valley. There are some drawbacks that will take a few years to overcome: • Residential-size fuel cell systems are not currently commercially available, though there are a number of companies aggressively working towards that goal. • Fuel cells require an outside fuel source, whether it is natural gas, methanol or pure hydrogen. Unless the fuel cell is fueled by pure hydrogen, there are some emissions that result from making electricity using a fuel cell. Like the other alternative generating resources mentioned above, it will be up to the local population and governments to enable widespread use of fuel cells in the Wood River Valley. Combustion Turbines -Based on the same technology used in aircraft jet engines, combustion turbines could certainly be used to provide energy to the Wood River Valley. Idaho Power installed a 50 MW combustion turbine that was fueled by natural gas and oil in Hailey in the early 1970s and was used primarily for dependability purposes to back up the then single transmission line serving the Wood River Valley. Once the second transmission line to Hailey was built in 1987, the combustion turbine was deemed unnecessary and was removed. By that time, it was becoming difficult to operate the turbine due to emissions limits for air quality purposes and the difficulty in fueling the turbine. The community was also unhappy about the noise this turbine emitted while operating. Through the early meetings, the Committee was opposed to siting a new combustion turbine generator in the Wood River Valley to meet the electrical needs. In April, a committee member did bring up the idea that Idaho Power should investigate installing a natural gas fired combustion turbine in the Ohio Gulch area. After a lengthy discussion, the Committee determined that a combustion turbine generator would not be feasible for use in the Valley for the following reasons: • The cost of a generating station adequate to provide full redundancy to the existing transmission would be over $50M. This number would more than double to provide redundancy at buildout. • A combustion turbine for use in the Wood River Valley would need to be fueled by natural gas (for emissions purposes). The existing natural gas supply to the Valley is inadequate to fuel a turbine and a new pipeline would be needed. Even using natural gas, the Idaho Department of Environmental Quality would likely impose severe operating limits on the turbine due to the inability for the emissions to dissipate given the small width of the Valley. It was suggested that perhaps methane gas produced by the dairies in the Magic Valley could be piped into the Wood River Valley. Updated May 2011 Wood River Electrical Plan Appendix C -Page 2 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 39 of 92 Idaho Power Company • A natural gas-fired combustion turbine experiences significant reduction in efficiency as the altitude increases. Unlike a liquid-fueled jet engine (aircraft engine), natural gas must be compressed for use in the turbine and at higher altitudes it takes more energy for the compression process. • While quieter than many generating technologies, there would still be noise issues in the Wood River Valley that would have to be overcome. • A large combustion turbine has some water requirements and it might be difficult to obtain water rights in the Wood River Valley. Energy Efficiency Another way to reduce the need for additional transmission resources in the Wood River Valley would be to aggressively pursue energy efficiency technologies or in utility terms, demand-side management (DSM). Idaho Power is currently providing many programs funded by a Customer Conservation Charge to customer bills that promote the use of DSM to reduce electricity usage. Idaho Power's 2004 Integrated Resource Plan (IRP) called for an average of 41 megawatts of energy savings due to DSM by 2014. The 2006 IRP calls for an average of 90 megawatts of energy savings due to DSM by 2024. Table 1 shows the current Idaho Power programs. The Idaho Power Website at www.idahopower.com contains full descriptions of these programs. Residential Commercial/Industrial/Irrigation A/C Cool Credit Irrigation Peak Rewards Weatherization Assistance Irrigation Efficiency Rebate Advantage Building Efficiency Energy Star® Homes Easy Upgrades Energy Star® Lighting Customer Efficiency Energy House Calls Table 6. Idaho Power Demand Side Management Programs Additionally, Idaho Power currently has rates that vary by season, with summer electricity rates being higher than winter rates in order to encourage lower energy use in the summer when the overall electricity usage on the Idaho Power system is highest. In the Wood River Valley, these seasonally varying rates do nothing to reduce power usage when the reduction is needed most.. .in the winter. Idaho Power is also investigating using time-of-day pricing and critical peak pricing that would encourage customers to use less energy during the peak times (such as late afternoon and early evening). Idaho Power Company Energy Efficiency activity and Programs in the Wood River Valley Idaho Power offers ten distinct Energy Efficiency programs in the Wood River Valley as well as throughout most of its service territory. A listing of each program follows with a brief description of each. More information of each of the programs can be found at www.idahopower.com/energycenter. Residential Programs: Updated May 2011 Wood River Electrical Plan Appendix C -Page 3 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 40 of 92 Idaho Power Company • ENERGY STAR® Homes Northwest A $750 incentive is paid to builders for each home built to the ENERGY STAR® standards. These standards are 30 percent more efficient than one built to the Idaho building code. • Energy House Calls This program offers a free package of services (inc. duct sealing) designed to help save energy for residents of manufactured homes heated by an electric furnace or heat pump. • Rebate Advantage This program offers $500 payment to Idaho Power customers who purchase a new ENERGY STAR® manufactured home. • Weatherization Assistance for Qualified Customers This program offers free weatherization measures for electrically heated homes of qualified customers to help them maintain a comfortable and efficient home environment. • ENERGY ST AR® Lighting This program is a specialty bulb promotion offered in conjunction with BPA (Change a Light, Change the World) to provide a buy-down of bulbs at large retailers. Future programs offer promotions of other bulbs at various retailers. • Heating and Cooling Efficiency Program This program provides cash incentives to residential customers (and HVAC contractors) for choosing and installing qualified energy-efficient heating and cooling equipment and services through approved HV AC contractors Commercial and Industrial Programs: • Custom Efficiency This program offers financial incentives for large commercial and industrial energy users with large and complex projects to improve the efficiency of their electrical systems or process. • Building Efficiency This program offers incentives of up to $100,000 designed to offset part of the additional capital expenses for more efficient lighting and cooling designs in small and mid-size commercial construction projects • Easy Upgrades This program offers Incentives of up to $100,000 for a menu of simple commercial, industrial building retrofit projects. Incentives are available for lighting, HVAC, motors, building shell, plug loads and grocery refrigeration and are based on each measure's assumed energy savings. Agricultural Programs: • Irrigation Efficiency Rewards This program offers an incentive which pays up to 75 percent of the cost for irrigation customers who improve the energy efficiency of an existing pump system or up to 10 percent when installing a new efficient system. • Irrigation Peak Rewards This program offers a demand credit for specific irrigation customers who allow Idaho Power to use electric timers to turn off their pumps for a few hours on selected summer days reducing afternoon peak demand and lowering the customer's electric bills. Wood River Valley projects: Updated May 2011 Wood River Electrical Plan Appendix C -Page 4 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 41 of 92 Idaho Power Company Although Idaho Power doesn't commonly track Energy Efficiency programs specifically by area or city, a manual examination of the Energy Efficiency incentive records show that from 2005 to October 2007 Idaho Power has identified 24 individual projects completed in the Wood River Valley area. These projects were completed in Ketchum, Bellevue, Hailey, Sun Valley, Fairfield, Carey, and Picabo. Four projects were under the Custom Efficiency Program. One project was completed under each of the Building Efficiency, Easy Upgrades and Rebate Advantage programs and seventeen projects were completed under the Irrigation Efficiency Rewards program. Idaho Power paid a total of $130,290 dollars in incentives for an annual energy savings of approximately 1,342,602 kilowatt hours (kWh) and 155 kilowatts (KW) in demand savings for the non-irrigation programs. Under the Irrigation Efficiency Rewards program, Idaho Power paid $28,637 in incentives for an annual savings of approximately 205,717 kWh and about 57 savings in KW. There are many other activities in addition to those sponsored by Idaho Power that customers could undertake to reduce their energy use and, like the alternative generating resources discussed previously, it will be up to the local residents, businesses and governments to make them a reality. Transmission Characteristics The Committee was provided with costing for various voltages of transmission. Table 7 shows these costs. Note that right-of-way widths provided are for total right-of-way requirements, not width from center line. Appendix J shows photographic examples of the types of overhead transmission towers referenced in Table 7. The transmission line cost on a per mile basis does not include right-of-way cost. Volta2e Type $/mi ROW(ft) 230,000 V Overhead, H-Frame $350,000 120 230,000 V Overhead, Single Pole $400,000 70 138,000 V Overhead Single Pole (low profile) $200,000 50 138,000 V Underground $3,000,000 12 69,000 V Overhead, Single Pole $175,000 40 69,000 V Underground $2,700,000 12 35,000 V Overhead, Single Pole $150,000 30 35,000 V Underground $1,500,000 12 Table 7. Estimated Transmission Costs for Various Voltage Levels A CAC member asked if the maintenance costs between overhead and underground transmission differed significantly. Since Idaho Power has no experience with underground transmission this question was asked of cable manufacturers and other utilities. Maintenance practices at the various utilities surveyed differed greatly and there was not much in common between them. In most cases, the maintenance is quite conservative because the effect of a catastrophic failure on an underground cable is so great. And the cable manufacturers also recommended an aggressive maintenance approach. This conservative approach is quite costly and causes the maintenance costs for underground transmission to be approximately equivalent to that of overhead. Updated May 2011 Wood River Electrical Plan Appendix C -Page 5 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 42 of 92 Idaho Power Company Goals Document The first step in developing proposed solutions to the electrical needs of the Wood River Valley was to develop a goals document that could be used to guide the committee's efforts to develop and evaluate alternatives. The goals were divided into 6 areas: • Reliable Power: Provide reliable power to the entire Wood River Valley • Provide redundant transmission facilities throughout the Wood River Valley • Provide sufficient reliable, quality power necessary to support the Valley 's current and future business and economic activities • Include Lincoln and Camas counties ' electricity needs • New Infrastructure Design: Develop new transmission and delivery infrastructure as appropriate when providing for current and future power needs • Optimize the use of existing infrastructure; increase use or upgrade as feasible • Implement feasible mechanical alternatives to new transmission or delivery systems to provide redundancy • Identify and utilize alternative and renewable sources of power that minimize the need for new transmission/delivery infrastructure • Plan and implement infrastructure improvements that integrate with future system development • Explore and implement new power system technologies as feasible and appropriate • Energy Conservation: Implement programs that reduce demand for additional energy • Implement feasible "Demand Side Management" programs to reduce power demand as a portion of an overall solution to meet the Valley's energy needs • Optimize the use of existing "conservation" programs as feasible to reduce power demand • Develop new "conservation" programs with education, as feasible and supported by Valley residents • Environment: Cause no or minimum impacts to the natural, physical, cultural, historic, social and aesthetic environment due to development and operation of power facilities and delivery systems • Utilize existing/shared utility and transportation corridors where feasible • Site new corridors that have no or minimal impact on the environment • Preserve the Wood River Valley 's aesthetic and scenic qualities • Political Support: Develop solutions that are politically supported throughout the Wood River Valley • Address individual and collective political concerns/or design, operation, siting and funding • Integrate WREP recommendation into local land use plans; comply with local plans if possible • Consider the least obtrusive and least objectionable option to enhance opportunity for public support and implementation • Cost Effectiveness: Develop solutions that are cost effective and provide associated benefits • Implement solutions that are affordable to construct • Implement solutions that are affordable to operate and maintain • Cause no or minimum rate increases to support new infrastructure/system improvements • Minimize local public or private funding participation or support new or upgraded infrastructure • Implement solutions that have available public or private funding where required Updated May 2011 Wood River Electrical Plan Appendix C -Page 6 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 43 of 92 Idaho Power Company The CAC also came up with a list of siting criteria. These criteria may not all be completely achievable, but they are measures to be strived for when developing and evaluating alternatives. • Wood River Transmission Station (WDRI) North • Provide both redundancy and capacity to meet electrical needs north of WDRI • Do not use the existing 138 kV transmission corridor without new technology to avoid new impacts • Preserve the scenic co"idor • Maintain the ordinance-required 150 ft setback from residences when using overhead transmission lines • Conform to existing hillside ordinances • Install underground lines in locations where the necessary additional funding is available. • Wood River Transmission Station (WDRI) South • Provide electrical infrastructure and systems that meet Lincoln County electrical needs • Improve structures and transmission lines in Lincoln County as needed to accommodate future growth • Maintain scenic corridors • Cause no environmental impact to wetlands and habitat • Use existing corridors and transmission equipment where possible • The use of overhead lines and infrastructure is acceptable until the affected community can afford to fund a different proposal • Maintain or reduce pole size in Bellevue Load Blocks The CAC was provided with a series of load blocks to help them determine the amount of transmission to allocate for buildout needs. Figure 7 is a geographic based depiction of these load blocks with no transmission lines connected. Updated May 2011 Wood River Electrical Plan Appendix C -Page 7 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 44 of 92 Idaho Power Company BOMW (KCHM) 40MW (WDRI) BOMW (TIMR) 40MW (EKHN) 40MW (HALY) 40MW (SLVR) ~ I Midpoint I Figure 8. Load Blocks with no Transmission Figure 7 shows a total of nine substations associated with the Wood River Valley. King and Midpoint Substations are shown for reference as the originating point for power fed to the Valley. A new substation called Timmerman Substation (TrMR) is shown with the assumption that at buildout, the Valley will require at least one additional substation in order to serve the load. In this figure, no load is assigned to Moonstone Substation (MOON) because at buildout this substation will only serve load in the area of Magic Reservoir and Camas County, thus it is not part of the committee's assignment other than to allocate sufficient southern transmission to serve it. Figure 8 builds upon the previous figure by adding southern transmission sufficient to serve the entire Valley load from Timmerman Hill north. Note that the following figures or transmission configurations were only used as an example for discussion and not as a recommendation by Idaho Power. The committee was encouraged to be creative in how they recommended serving the Wood River Valley load at buildout. Updated May 2011 Wood River Electrical Plan Appendix C -Page 8 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 45 of 92 Idaho Power Company MOON KING 80MW (KGHM) 40MW (WDRI) 40MW (EKHN) 40MW (HALY) 40MW (SLVR) 100 MW & 320 MW Total Figure 9. Load Blocks with Example Southern Transmission Legend -230 kV -138 kV Note, this is one of many possible options for serving the Wood River Valley. In the figure above, two 230 kV transmission lines are constructed from King and Midpoint Substations to the new Timmerman Substation. Additionally, one 138 kV transmission is installed from Midpoint to Silver Substation. These three transmission lines would provide both adequate capacity and adequate dependability to serve the Wood River Valley load at buildout. Updated May 2011 Wood River Electrical Plan Appendix C -Page 9 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell , IPC Page 46 of 92 Idaho Power Company In Figure 9, a number of 138 kV transmission lines are added to provide for the entire 350 MW buildout load. MOON KING 80MW (KCHM) 40MW (WDRI) 150 MW 40MW (EKHN) 200 MW 40MW (HALY) .................. : Total 120 MW i-------1 40 MW (SLVR) 120 MW Figure 10. Load Blocks with Example Mid-Valley Transmission Legend -230 kV -138 kV Note, this is one of many possible options for serving the Wood River Valley. The above figure shows 138 kV transmission interconnecting Moonstone, Timmerman and Silver substations and then serving into the Valley at 138 kV to Wood River and Hailey substations. Three transmission lines are shown serving into Wood River and Hailey substations to provide fully redundant supply to the Valley. That is, the three transmission lines provide sufficient capacity such that if one of the three is out, the remaining two transmission lines can carry the entire load. Updated May 2011 Wood River Electrical Plan Appendix C -Page I 0 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell , IPC Page 47 of 92 Idaho Power Company Figure 10 adds two 138 kV transmission lines serving north from Hailey into the Ketchum/Sun Valley area. Again, these two transmission lines have sufficient capacity to provide fully redundant power to the buildout Ketchum/Sun Valley loads. 80MW (KCHM) • ~ 120 MW ................. .. : Total 180 MW 40MW Legend (WDRI) 40MW -230 kV (HALY) -138 kV 150 MW 120 MW Note, this is one of MOON 40MW (SLVR) many possible options for serving the Wood River Valley. 120 MW Figure 11. Load Blocks with Example North-Valley Transmission Mapping Exercise Using the education provided in January through March and the goals developed in March and April, the CAC set to work in April laying out proposed Wood River Valley transmission routes and substation locations. The CAC also used the load block diagrams to aid them in determining the size oflines needed to support the Valley's load. The committee was broken into three groups; each group was given a large aerial photograph showing the terrain from Ketchum in the north to Midpoint and King Substations in the south. Using the goals and siting criteria as a guide, each group developed feasible alternatives to meet buildout requirements. The following guidelines were used in forming the small groups: • Groups were designated "A, B and C" for alternative discussion purposes • Each group included committee members from throughout the planning area • Each group included an Idaho Power representative to provide technical support and a facilitator to capture the details for each of the alternatives Updated May 2011 Wood River Electrical Plan Appendix C -Page 11 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 48 of 92 Idaho Power Company Group A Mapping Results Group A, which consisted of five members, created a total of four alternatives. The first two alternatives covered the area from Timmerman Hill south while the second two alternatives covered from Timmerman Hill north. Appendix C contains notes taken from Group A during the mapping exercise. Appendix D contains larger, more readable versions of the following maps. Group A -Alternative 1 This alternative covers transmission from Midpoint and King Substations in the south to Silver, Moonstone and Timmerman substations in mid-Valley and onto the Wood River Transmission Station in Hailey. It would build a new Timmerman Substation near the existing Idaho Transportation Department's Timmerman rest area and connect it to both Moonstone and Silver substations using 138 kV transmission. It would convert the existing Midpoint to Silver 138 kV transmission line to 230 kV and also convert the existing King to Moonstone 138 kV transmission line to 230 kV. The 138 kV transmission from Moonstone Substation to Wood River Transmission Station and from Silver Substation to Wood River Transmission Station would be improved to increase their capacity each to 200 MW. ::. Figure 12. Group A -Alternative 1 Mapping Results Group A -Alternative 2 Updated May 2011 Wood River Electrical Plan .... ---•l'tk\l .... ,._~ .. ,___ ,....," .. "''* ........... --Nc,11\U,Y._,._Stlwto ----..C..Cllc. .... ~-u•l\U .. V .a..~~Kl~1t210 .. v ~c.~.Wt,u,.WoNl"w ~•?OOMW --,-ca.11111111~Wcwbt1 -•lWMW ....... IIICllkll,... a..u,A-~1 ---·- Appendix C -Page 12 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 49 of 92 Idaho Power Company Group A -Alternative 2 builds a new Timmerman Substation near the existing Idaho Transportation Department's Timmerman rest area and connects it to both Moonstone and Silver substations using I 38 kV transmission. It would improve the existing King Substation to Wood River Transmission Station transmission line to 200 MW. The 138 kV transmission from Silver Substation to Wood River Transmission Station would be improved to increase its capacity to 200 MW. This alternative would also build a new I 38 kV transmission line from Midpoint Substation to the new Timmerman Substation routed approximately parallel to Highway 75 . . . Figure 13. Group A -Alternative 2 Mapping Results Group A -Alternative 3 Updated May 2011 Wood River Electrical Plan ..... --­·1\11.Vliltrn.M.-kt,,...,_ ~ lllkVa-ftOa~IO -.,-. 1u1.v•r-S.h•• --~cc~W.ff>....,b-ct .--.. .. 200ww ~•Ulllllll,.__,_VMNNlbn -IOJOOMW ~c ...... ~WGM~na --- ........ IIMll'leal ..... ...... ~, ---·-t Gtrai,A,...._l-........ -.... ••v~ ei...tt»kV~ _...,.2:»tYi........ -~,.·\I~ Appendix C -Page 13 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 50 of 92 Idaho Power Company This alternative installs a new 138 kV transmission underground from Wood River Transmission Station to Ketchum Substation, following Highway 75 north from Hailey to the Ketchum city limits. Group A did not specify a route through the City of Ketchum to Ketchum Substation, leaving that to the City of Ketchum to determine. _tA \ \ \ Figure 14. Group A -Alternative 3 Mapping Results Updated May 2011 Wood River Electrical Plan I I I \ rl ,l l ~ (_ ...... -loo­.... --­DM•Ztqfff bdt.c .. .... -0 ....... llll\'l•l'tOa llioodlAC'l'•Kctcalll ---­Gi-.A·-J -.­.... - -°'Ot41A·.-,_.3UG1JIWT1-- Appendix C -Page 14 Exhibit No. 2 Case No. IPC-E-16-28 0 . Angell, IPC Page 51 of 92 Idaho Power Company Group A -Alternative 4 In this alternative, Group A proposes to add a new overhead 138 kV transmission line from Wood River Transmission Station to the Ketchum City Limits, in the same right of way as the existing distribution circuits. From the Ketchum City Limits to Ketchum Substation, the line would be underground. Again, Group A did not specify a route through the City of Ketchum to Ketchum Substation, leaving that to the City of Ketchum to determine. Additionally, this alternative specifies that the existing distribution circuits along Highway 75 between Hailey and Ketchum be put underground with the assumption that placing a distribution circuit underground costs much less than placing 138 kV transmission underground. ---1SlkV~-trffllw.iRhel'tol<lildll,m 1r111owq--.g ....... '°""' --­.... fflUltl'lf'Ough~II notloedlldWdS....._.to .. _ Figure 15. Group A -Alternative 4 Mapping Results Updated May 2011 Wood River Electrical Plan ( ... .ff I \ l f l I ~ I - J' / ( .... -. ... ~ --0.tZq:lrr ... ._ ,_fl!'- ..!!~7 .,,,.;. \ -.C)l~l\ll\/ ... ,.. ..... ltftefla K.edlllll•to.,-fik ..... -e.-.•w"­...,.,,.w._.... _...,.ZXlllf-­_._.,. ............ BIi&. .-.-.-.-=-- Appendix C -Page 15 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 52 of 92 Idaho Power Company Group B Mapping Results Group B, which consisted of five members, created one alternative -Alternative 1 -that was all­ inclusive of the area from Midpoint and King Substations to Ketchum Substation. Appendix C contains notes taken from Group B during the mapping exercise. Appendix D contains larger, more readable versions of the following map. Group B's alternative would convert the existing 138 kV transmission from King Substation to Moonstone Substation to 230 kV. It would install a new Timmerman Substation south of Timmerman Hill along Highway 75. It would then install a new 230 kV transmission line from Midpoint Substation to Timmerman Substation and a 230 kV transmission line from Timmerman Substation to Moonstone Substation. This alternative would install a new 138 kV transmission line from Timmerman Substation to Wood River Transmission Station then on to Ketchum, all overhead. Group B specified that the 138 kV transmission should run along Highway 75 from Timmerman Substation to Glendale Road then follow Broadford Road until Hailey. It would then run west of Hailey until it reached Wood River Transmission Station. From Wood River Transmission Station it would follow the existing distribution circuits, constructed such that the 138 kV transmission would have distribution underbuild on the same poles. The line would terminate at Ketchum Substation. This alternative also specified that the Moonstone Substation be upgraded from 138 kV to accommodate the new 230 kV supply. Group B noted that the existing I 38 kV transmission from Juniper Road near Sun Valley to Elkhorn Substation is to be placed underground (paid for by affected parties). Updated May 2011 Wood River Electrical Plan Appendix C -Page 16 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 53 of 92 Idaho Power Company ~exllengdislribution di 131 kV tnnamluln line will dlltrtbullon undertluld.. Follow s.ne fOUle • diSWtulon. I.e. trwy, l:lllepal\,she,ef»conldOr f1381r.V a::;~~~_.:;:::.~~ .... ~ Figure 16. Group B -Alternative 1 Mapping Results Updated May 2011 Wood River Electrical Plan --13.100 "1et ol e,cbblg OH 13811\l~trom JunlperRdtoElttlcwnSUbst. -~_.ofn..n-Hill. -O\ntlnod llaLVJue(ro11-~liOlllllq/ ........... IOKft.':--~ -OlfflltadlJOI.Vlult"'*MldpoiillO-..,._ _,,_ '°'erkailll(lt.Vli.efma-~--o( -D- -Omiomt~IMIJ~·~~._,.11:> lJOt;V -tapo.c ~looaMoec ....,._ llllbsta.ioe IO --.tj ..... 1111.V~ffOfll.JuipcrRd IO E&hffl s.llla lp!ild for i,., aft'C'dcd piftlel:j -A~a::~M,.,_silr.Mlldblttll!llas1RW.1t• pouabk '""'---• +Ot-.•·-1 ........ -°'-··---1,l3Qll/'1- ~·--l,131W­ -~·· .......... 1,1/0I~~ j ff ----... - Appendix C -Page 17 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 54 of 92 Idaho Power Company Group C Mapping Results Group C consisted of six members. Like Group B, it created one alternative -Alternative 1 -that was all-inclusive of the area from Midpoint and King Substations to Ketchum Substation. Appendix C contains notes taken from Group C during the mapping exercise. Appendix D contains larger, more readable versions of the following map. Group C's alternative would convert the existing 138 kV transmission from King Substation to Moonstone Substation to 230 kV. It would install a new Timmerman Substation south of Timmerman Hill along Highway 75. It would then install a new 138 kV transmission line from Midpoint Substation to Timmerman Substation and a 138 kV transmission line from Timmerman Substation to Moonstone Substation. It would also install a new 138 kV transmission line from Timmerman Substation to Silver Substation. Group C did not designate precise right-of-way routes for the transmission from Timmerman to Silver or from Timmerman to Moonstone. This alternative would build a new transmission switching station west of Bellevue along the route of the existing King Wood River 138 kV transmission line. From this new switching station, a new overhead 138 kV transmission line would be built running along the west side of the mountains and coming out in the Cold Springs area. From the Cold Springs area it would then run underground to Ketchum Substation. Group C's alternative would also upgrade the existing 138 kV transmission from Moonstone to Wood River to 200 MW and upgrade the existing 138 kV transmission from Silver to Wood River to 200 MW. Group C designates that both Silver and Moonstone Substation be upgraded to 80 MW capacity. Like Group B, this group noted that the existing 138 kV transmission from Juniper Road near Sun Valley to Elkhorn Substation is to be placed underground (paid for by affected parties). Updated May 2011 Wood River Electrical Plan Appendix C -Page 18 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 55 of 92 Idaho Power Company ::. Figure 17. Group C -Alternative 1 Mapping Results Screening Alternatives -~ .("-ffl~K.i ... ~-IO !JO kV -la:,caicSlhcrad~IDIIJMW -l-.:IUIIC~W..-10fl0'1W ~l'lkV1-1011frontMlipctM IOEa.llonlS...(paldlfof~ :lllrctll:d ..... ) ~ccxa1111l.--.io,-"'...._..,. ........ IOlOOMW •llllPf'O\i:~lkker•Wi,odRkcr.........._ I0100MW .................. ..... c ........... , -­...... t ~c.-,...._. -0-.C·-1 :t:ll0...,1- IIIIGI-.C·-1 131W.._ aaa.-c-.--1 JJl)1•wn.. -a...,.•,..,-...... ,.IY._ -1.-.m•v._ -s......~•vTt........, To aid in screening the alternatives developed by the three groups, a screening matrix was developed that each CAC member could fill in to see numerically how each alternative ranked. It must be noted that a numerical screening of the alternatives is just a tool to evaluate the alternatives against one another. The final decision as to which alternative or alternatives to designate as the most feasible going forward is a consensus decision reached within the CAC. Table 8 contains the totals for the scoring developed by the committee. Thirteen of twenty members filled out the matrix and their scores were totaled for each alternative. The categories used in the matrix came from the goals the committee had developed at an earlier meeting. Updated May 2011 Wood River Electrical Plan Appendix C -Page 19 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 56 of 92 Idaho Power Company Total Alternatives Grand Total Scorinf! Score Zone/: New South of Reliable Infrastructure Energy Environ Political Cost Timmerman Power Desi14n Conservation -ment Suooort Effectiveness Sitin14 A-I 52 42 39 42 47 31 44 297 A-2 56 35 39 30 34 42 32 268 8-1 62 39 39 39 33 53 40 305 C-1 56 39 39 34 36 51 38 293 Zone 2: Mid Valley A-I 56 49 39 49 49 41 44 327 A-2/C-I 53 41 39 36 39 44 38 290 8-1 59 34 39 35 23 53 32 275 Zone 3: North Valley A-3 58 50 39 55 46 16 50 314 A-4 55 44 39 52 39 42 42 313 8-1 58 42 39 39 35 57 38 308 C-1 53 37 39 33 34 44 35 275 Table 8. Alternatives Scoring Matrix The committee decided to score "Energy Conservation" equally between the alternatives, hence the grand total score of 39 for each alternative. This is because energy conservation measures are not going to affect any one alternative differently than any other alternative since these are all transmission alternatives. lt was decided that communities or public entities in the future may be willing to support different levels of energy conservation, which would have to be applied at the time any of the alternatives are in design or construction and could mitigate the energy demands to be met with new infrastructure. There was some discussion regarding weighting the scores for the various categories. In the end, the committee determined that it was unnecessary to vary the category weighting since the scoring matrix is simply a screening tool and the committee may determine their preferred alternatives exclusive of the scoring matrix. Using the scoring matrix approach, it can be seen that on a numerical basis, the alternative choices are, • Zone 1: South of Timmerman -Alternative 8-1 • Zone 2: Mid Valley-Alternative A-1 • Zone 3: North Valley-Alternative A-3 (Alternative A-4 was a close second) Committee Alternative Consensuses Using the results of the scoring matrix as a basis for discussion, the committee went on to reach consensus on each of the three sub-areas of the Plan; South of Timmerman, Mid Valley and North Valley. Zone 1: South of Timmerman Updated May 2011 Wood River Electrical Plan Appendix C -Page 20 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 57 of 92 Idaho Power Company The committee determined that the final Zone 1 scores in the matrix were quite similar for Alternatives B-1, A-1 and C-1 and were to close to call using the scoring. The final consensus, in preference order, for Zone l is as follows: • Preferred Choice: Alternative C-1 • Second Choice: Alternative A-1 • Third Choice: Alternative B-1 • Alternative A-2 will be dropped due to the undesirable location of the new substation The committee shared numerous comments concerning the South of Timmerman zones, which are recorded below. • Substation placement cannot be north of Timmerman Hill crest • Do not locate substation in the area of the potential new town (west side) • Probably ought to avoid potential airport locations • Might consider putting the new substation at the "square hole" on the north side of Picabo Desert Road • Might consider old ITO material site • Structures: Stay away from two-pole design (H-frame). Stay with single pole design. Steel poles would be preferable; less fire hazard • South of Burmah Road, the BLM has some Wilderness Study Areas and Areas of Critical Environments Concern. The further south ofBurmah Road one goes, the more difficulty BLM has with the route due to these special management areas • Stay within existing corridors, distribution areas and highways, etc. Zone 2: Mid Valley The CAC consensus recommendations for Zone 2 are as follows: • Preferred Choice: Combination/modified Alternatives C-1 / A-I (moving new substation south side of Timmerman Hill). Named Alternative C-2. • Dropped Alternative A-2 -this is a duplicate to A-1 in Zone 2 when the location of the new substation to the south side of Timmerman Hill is moved • Dropped Alternative B-1 -due to undesirable route along Broadford Road A number of committee comments concerning Zone 2 are recorded below. • Do not go up the highway • Don't skyline the structures in any phase of the project; especially as you top Timmerman Hill looking north • Just have one set of taller poles for distribution and transmission instead of multiple shorter poles, generally speaking Zone 3: North Valley Updated May 2011 Wood River Electrical Plan Appendix C -Page 21 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 58 of 92 Idaho Power Company Finding consensus for North Valley transmission was by far the most contentious of all the zones. The committee agreed that the north end of the Valley needed a second 138 kV transmission line for redundancy (dependability). The primary issue was whether that transmission should be overhead or underground. Some on the committee insisted that the only acceptable alternative to the land owners, and thus those who would grant easements for transmission, would be to put the transmission underground. Others believed that would be unreasonable since Idaho Power is required by the Idaho Public Utilities Commission to recover the costs associated with undergrounding transmission from those wanting it. That is, Idaho Power is not allowed to spread the cost of underground transmission across its entire customer base. The committee consensus decision for North Valley transmission follows. • Preferred Choice -New alternative: new overhead 138 kV line along SH 75 from Wood River Transmission Station to Ketchum. Underbuild distribution circuit on same towers with transmission. • Funding Contingent Alternative -New underground 138 kV line and underground distribution along SH 75 from Wood River Transmission Station to Ketchum. Install underground where funding is available to pay cost difference between overhead and underground transmission • Dropped Alternative A-4-due to uncertainty of funding for Ketchum underground transmission • Dropped Alternative A-3 -due to uncertainty of funding for full length underground transmission • Dropped Alternative B-l -due to lack of support for distribution underbuild and resulting structure height • Dropped Alternative C-l -due to undesirable route off SH 75 to Cold Springs In addition to the consensus described above, the committee generally agreed that if the 138 kV transmission is installed overhead, Idaho Power should investigate putting the existing distribution circuits underground. Like underground transmission, this would require that stakeholders bear the cost difference between overhead and underground, though it would be a much lower cost than placing transmission underground. Notes taken from the Zone 3 discussions are recorded below. • Committee consensus support for providing physical redundancy in North Valley and throughout the other portions of the Wood River Valley's electrical system • Committee consensus support for a new 138 kV line along SH 75 between Wood River Transmission Station and Ketchum • Support for overhead transmission line installation (Idaho Power's industry standard with costs shared by everyone in the electrical system (rate payers), with no additional cost to individuals along the route -details within this choice are how and why? o Include with this recommended alternative a photo illustration for the public, depicting what this option will look like in-place. • Support for underground line installation -"Here's the optimal, if you can find the money" o Include cost estimate description, what Idaho Power will pay for and what must be paid for by others • The Plan should describe "who pays" for each part of each alternative Updated May 2011 Wood River Electrical Plan Appendix C -Page 22 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 59 of 92 Idaho Power Company • When introducing this and other parts of the Committee's recommendation, public education is critical. Education to the public about the need for redundancy, need for additional power to meet future "build out" needs and general education about the system and how it works, photo illustrations of alternatives, etc. is critical to successful public support of the Committee's recommendations. Combined Alternatives Based on Committee Consensus Figure 17 is a combination of the preferred alternatives for each of the three Valley segments; north, mid and south. Figure 18. Preferred Alternatives "" .s.a...._..ol1---_.._M .O-M1t•11aL\-floa'Aoodlb,-n T-Suociatot..~S...... .0.Clkadl11lY_C...._...._ ~-­-0,,......., ... v_,_-aaa110A IDSll«S--­..(.hffllt.dl11l\~8-A.hltpolall0 ----.('~-~K-.-,.._._. ___ ., ?~l\ -l1£1CaSs.haMl~IOIOMW -1~\----S--IDIIJ~' .1_,...__...," .. , ............ ~R4 10 Q.Mnl SM! ...... liN'~ a&aai ,-*51 -tllil*"e~\looll!Nlll..,fQC .. ._ --..,zooMVo ~tt .... Sihefll)~lt.nCl'­ •;?U(lWV.-..................... ------ --...-,.wuo,._..,, _..__I.IV(»!,...... __ ......_DJWJI_....., -~· .... ....._ -~-.... - For south Valley, the preferred alternative would convert the existing 138 kV transmission from King Substation to Moonstone Substation to 230 kV. It would install a new Substation south of Timmerman Hill along Highway 75 near the intersection of Highway 75 and Burmah Road (depending on land availability). It would then install a new 138 kV transmission line from Midpoint Substation to the new substation and a 138 kV transmission line from the new substation to Moonstone Substation. It would also install a new 138 kV transmission line from the new substation to Silver Substation routed along Burmah Road until it reached the existing 138 kV line. The new circuit would then be run on common towers with the existing 138 kV circuit until it reached Silver Substation. Updated May 2011 Wood River Electrical Plan Appendix C -Page 23 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 60 of 92 Idaho Power Company The preferred alternative designates that both Silver and Moonstone substations be upgraded to 80 MW capacity. It is noted that the existing 138 kV transmission from Juniper Road near Sun Valley to Elkhorn Substation is to be placed underground (paid for by affected parties). The preferred alternative for mid-Valley would also upgrade the existing 138 kV transmission from Moonstone to Wood River to 200 MW and upgrade the existing 138 kV transmission from Silver to Wood River to 200 MW. The preferred alternative for the north Valley region would install a new 138 kV line along SH 75 from Wood River Transmission Station to Ketchum City limits with the existing distribution circuit(s) placed on common towers with the 138 kV transmission, if placed overhead. Once the circuit reaches Ketchum City limits, the routing is not specified. A funding contingent alternative to overhead transmission in the north Valley is to install a new 138 kV transmission circuit underground from Wood River Transmission Station to Ketchum Substation, running along Highway 75. This alternative is contingent upon local entities paying the cost difference between overhead and underground transmission. Updated May 2011 Wood River Electrical Plan Appendix C -Page 24 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 61 of 92 Idaho Power Company Comments and Suggestions Recorded During Mapping Exercises: (Note: these notes only reflect the flip chart notes from the small group work, not the complete discussion. Group A: Len Harlig, Dayna Smith, Tom Hellen, Dave Zeigler, Rod Kegley South Valley Options: -see Group A maps • Upgrade the King line to 230 kV now, upgrade the Silver line to 230 kV when necessary, which would create redundant capacity. Do not build a high-voltage line up the highway corridor. • Use three 138 kV lines, creating new corridors; upgrade two existing lines to 138 kV lines, using new poles. Options from Hailey Substation North: -see Group A maps • Run a new 138 kV line following the existing distribution lines, and bury the existing distribution lines so that we have fewer power poles, less visible wires. The existing distribution lines are less expensive to bury than the larger lines. • Combine lines on the same poles, so as not to increase the number of poles. Group A Mapping Notes: • 230 kV from Midpoint to Silver; 230 kV from King to Moonstone; 138 kV from Moonstone to Timmerman; 138 kV from Silver to Timmerman; upgrade Moonstone to Wood River to 200 MW; upgrade Silver to Wood River to 200 MW; upgrade silver & Moonstone stations • Third 138 kV from Midpoint to Wood River; improve King to Wood River to 200 MW; add Timmerman station • Underground 138 kV & distribution from Wood River to Ketchum. • Underground distribution; put in low profile 138 kV in same R.O.W., Wood River to Ketchum • Look for 138 kV route to east through BLM land from Wood River to Ketchum. (No map created for this option) Updated May 2011 Wood River Electrical Plan Appendix C -Page 25 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 62 of 92 Idaho Power Company Group B: Chuck Carnohan, Chuck Turner, Rick Baird, Kurt Nelson, Nils Ribi South Valley Options: -see Group B maps • Define a 230 kV line to come from Midpoint to Moonstone-use existing highway corridor, and then cut off near Magic, going to Moonstone. Create a new transmission station at Moonstone. Upgrade line from King to Moonstone to 230 kV. Create substation south of Timmerman Hill. Create third feed of I 38 kV through the Valley to WR substation. Follow right of way until Glendale. Then create a split and follow Broad ford Rd. west of SH 75. North Valley Options: -see Group B maps • Going north, use single pole concept and put all lines on single pole on existing highway corridor; consolidate distribution lines on poles (not adding new poles but use bigger poles), minimizing additional impact and increasing dependability and redundancy. DISCUSSION: Discussed using existing corridors and use mostly existing facilities, being a far less intrusive option; possibly use sheep trail and hike/bike trail for additional rights of way. • 1st phase. New line to get 230 kV. • 2nd phase: Upgrade I 962 (King-Wood River) line to 230 kV. Group B Mapping Notes: • From WRSS to Ketchum, if line goes in existing corridor, consolidate transmission and distribution on same structures; new structures required. • South-new line (230 kV) along SH 75, midpoint to moonstone; replace and improve 230 kV (existing) King to Moonstone--can be phased, 138 kV now, 230 kV later; upgrade over time. Moonstone becomes transmission substation. • New substation in Gannet Triangle (south end}-north end or new line from midpoint. • North of WRSS-to Ketchum (water wheel); replace distribution lines with I 38 kV single pole; both on same pole; in existing corridors-highway, bike path, sheep corridor. • New I 38 kV line from new substation along SH 75 to Glendale • Upgrade existing west line (138 kV) from Moonstone to Wood River substation. • East side-I 38 kV line north from new substation to south of Bellevue, follow Broad ford Road west of SH 75 to Wood River substation *Underground-Juniper Road to Elkhorn substation paid by affected parties, 2 miles @ 138 kV; upgrade available if affected parties will pay for cost difference; any new structures should blend in as much as possible to surroundings. Updated May 201 I Wood River Electrical Plan Appendix C -Page 26 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 63 of 92 Idaho Power Company Group C: Ron LeBlanc, Lloyd Betts, Tara Hagen, Tom Bergin, Rob Struthers, Tom Blanchard • Use existing highway easement in south Valley. Upgrade King to Moonstone line to 230 kV. • North Valley, from Ketchum station to Hospital would be buried with common transmission lines, thus hopefully eliminating county overlap. New line ...... would be beyond private property, so minimal impact on private landowners. Come across the top into Cold Springs and down behind the hospital, so it wouldn't be visible for most of the ski area. Group C didn't try to be too specific with routing but stayed general to feasibility. • Commonalities in south end with other groups reporting. Group C Mapping Notes: • 230 kV from King to Moonstone • 138 kV from Midpoint to south of Gannett, new switching station with 138 kV lines to Moonstone substation and Silver substation. • Upgrade 138 kV from Moonstone north to new switching station west of Bellevue • Upgrade 138 kV from Silver to Hailey • New 138 kV from switching station to Cold Springs area, underground to Ketchum substation. ADDITIONAL COMMENTS FROM ALL GROUPS regarding options: • Can the poles be made with earth-tone paints? This would improve aesthetics. A: Yes, there are options for steel towers that look more earth-tone. • It wouldn't be a bad idea for the group to come up with two proposals for the public. However, it might be best if the group presents one as a preferable option and the other as a secondary option. • Private funding may also need to contribute monies if routes are used that are significantly outside the existing corridors. • If we leave existing corridors and move onto forest or BLM land, it would almost certainly necessitate an Environmental Impact Statement, which adds a time component and also an improbability component. • *** Request: When IP breaks down the costs of different construction plans, could they also break down costs by "legs" of the route? • *** Request: Would IP provide cost expectations of Idaho Power's share versus private funding share for different legs of the route? • At this point, should the committee be discussing these preliminary routes with constituents? Feedback from constituents would be helpful from individual conversations but WREP is not ready for public debate at this juncture. -Yes, the committee is encouraged to gather input from their constituents, but not in a formal or public venue, as the committee's recommendations is not yet complete and ready for public discussion. *** Idaho Power tasks by next CAC mtg Updated May 2011 Wood River Electrical Plan Appendix C -Page 27 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 64 of 92 Idaho Power Company Appendix D -Group Mapping Results Detailed Maps Updated May 2011 Appendix D -Page l Wood River Electrical Plan Exhibit No. 2 Case No. IPC-E-16-28 D. Angell , IPC Page 65 of 92 iJ 0 Q) • (0 )> CD ::, c»'° Cl CD () Q) fl) CD z 0 -m iJ X () ~ rrdz. I -0 -...... Z --C) 0 coiJ~. NC">CX>N Idaho Power Company Updated May 2011 Wood River Electrical Plan Project Phasing l _. ..J.-'f ~ -Upgrade King -1/11:>od River line now. , ~..r., I -Upgrade Midpoint • 1/11:>od River line Len llatl1g Da)111Snth Tom Hellen Da\c Z,cglcr Rod Kcglo) when necessary. Ne\\ -Timmennan Substation -138 L V hne from Midpo,,. 10 Timmer,-, -Ne\, 118 kV hne from Moonstone 10 Tunmerman •Ne\\ B8 LV lindrom S11\er 10 Tunmcrman Modificaions -Com en custing MidpoUM-Sthcr IO 230 kV -Com en existing lung-Moonstone IO 210 kV •IJ11)f'O\c cxasuag Siker-Wood Rl\·cr uansmission to 200 MW -lmpro,c rxastmg Moonstone-Wood Rntr tfa11$1W$$10R 10 200 MW Wood Rlvw Electrle.ll Plan Group A • Allel'llllllwl 1 Mapping Reaulls April 21, 2CNl7 • "'-A·-1 -., -IGl'Of4tA-MtmMWe 1, ZD:V~ -""-A·-1 138WT- &-.13BkV~ -&lllrlg230kV~ -&lallng 3ilS, kV TraNmilte6on ) --Exlllilv48kV- BM& o.,,, ... ,-•,==-.-·.- Appendix D -Page 2 () II) (/J (I) z -0 0 9 w. -m cc)>-Ox (I) :, () ::T O) CC I CT .....J !!?. r;n ;:::;: 0 --....i. Z --O> 0 co-or:.,. N0o:>N Idaho Power Company Updated May 2011 Wood River Electrical Plan Lea Hartig Da)aaSnuth Tom Hollen Da\oZ,ogler RodKe~ NO\\ -Tunmc:rmau Substation -IJ8 L V line rrom Mjdpood 10 Timmtnnan ·NC\, J '\8 kV line from Moonstone to Tunmcrman -No,, IJSLV Imo from SU,crto Tunmc:rman Modifocalions -lmpro,·• o'<isling Sil\or-Wood Rn·or 1n111SD11SSIOD 10 200 MW •lmpro,,-c cXJSbag Moonstone-Wood Rncr ttamnusslOn IO 200 MW -lmpnneosisling King-Wood Rhor traosml5SIOR 10 -200MW Wood River Electrlcal Plan Group A • Aa.matlw 2 Mapping RNulla April a , 2001 ·-A--2.­ --A--213'1kV- -btlli,g..,kVT,.,....., E><"*'913'1kVT­ -Ex~230kVTranil1'liNlon -exilllng 345 kV Tranlmillion ..\ N HIIIL. ----===--.... 012 4 e e Appendix D -Page 3 (") Q) C/l (l) z -uo9 w . -m cc)>""Cx (l) ::J (") ::J" o,CC I CT (X) (l) r;n ;:;: 0 -= _. Z --0) 0 co -u N · N (") CX> N Idaho Power Company / ~,. ~~,. "\ ... ~, r" 1rrf ~ f r- )---~4~ / I l_) ~"r- 'i I\. ) ' '.o .J ,~ .. ~ \ ~\ '\ I I f\ ' ,,.-,,-_/ '\\ ·'1-,;. Updated May 2011 \ Wood River Electrical Plan ("'j~"-._,~~ Add new undelgound 138 kV lransmlssion lne tom W>od Rhler to Ke1chum L ~ (note. route through Ketchum is = not spedlled) ~~~~· \ \ ----~·~ ii.:.. --< ----J!.'' l . ','. rv--,\ '~-,-1 V 'v·\ ,. -I\ s l_ I:: (_f C \ \ (. 1.i t I d'·- R' /'' I .,;:,''' .fi>;clc ,.JC. cl':.' ,, I 7 "' /\ '~ '\ ' ,, _/'/ (· ;~-·~~ NC\\ lJ#i z: ( . -Underground IJ8 kV line from Wood Rn er IO Kc1chum Wood River Electrlcal Plan Group A • Altemallve :S Mapping Results Aprtl 2t, 2007 GroupA Pmbcipam LeaHadig Daina 51111th Tom Hellen Da\c Ziegler Rod Keglc) -GtoupA--.-o3.UG138kVTra,.miNlofl -Exllling 46 kV Trantmieaion Exlodng 138 kV T111nomilalon Ex91tmg 230 kV Tranamiuion ~ N -Exiating 345 kV Transml88ion BMJ& 0!""'011112 "'o,-•o!':•==,"!,-•, :- Appendix D -Page 4 (') Ill 1/l (1) z "'00~ w . -m <O)>"'Ox (1) ::, (') ::r 0,(0 I er coror;n;:::.: 0 .= _. Z --O> 0 <O "'O ~. I\J (') 00 I\J Idaho Power Company \ \ Updated May 2011 Wood River Electrical Plan Addnewowmead 138 kV transmission lne lrom \Mlod RMN'IO Ketchum lolowlng eJCisting distJl>ution route. Undelgound existing dlslrl>ution. (note, route through Ketchum Is not specified and Is assumed to be underground) ~ GroupA Parllcipallls LcaHadis Da)mSmilh Tom Hellen Da\e Ziegler Rod Ke~ ,,.~,<!f;. ~~ ~- ,!;'~9 \ \ Ne\\ - -0\erbead 138 kV line from Wood Rnerto Kelchum on lo" profile poles -Place e'UShng distnbucoon cucwts between Wood Rh er md Ketcbum undergound Wood River Electrlcal Plan Group A • Allematlve 4 Mapping RNUlla Aprl 21, 2007 --A·-4,0H 1:,e,vn.---A·-•.OH 1311.VTnl- -ex-. 415 kV 1taMnalion E>dl9>e 1:,e•v­ -Ex1111ng230•V- -Exilllng3"5•V- ~ Bia. -----==---.. o 02 o• oa 1.2 1e Appendix D -Page 5 "U 0 Ill . (C )> CD ::J --i<C 0 CD 0 -= --(0 "U I\..) () () Ill (/) CD z !=) -m "U X () ;;r m fr I ;:;.: mZ I Q I\..) • co I\..) Idaho Power Company Updated May 2011 Wood River Electrical Plan -::J Replace e~ distribution with 138 kV transnission lne with dislribution undefbuild. F-same route as dis1ribwon. i.e. hwy, bike palh, sheep corridor. If 138 kV Is placed underground. atleclad parties to pay the -rence of OH vs UG. '-'I ~~~ 1;f to. Underground appro-ety 13.100 feet of e>istlng OH 138 kV transmission from Juniper Rd to Ellhom Subst. (Paid lor by affected palties) a..ct< Carnohan Clu;~ Turner RlCk Bainl Kun Nelson NilsRlbi ~ Ne\\ -Subs1a1ion south ofTimmcnnan Hill, ..0.erbead 138 t,. V line from nc" substa1ioo south of TllDIDl:rman to Ketchum Subscalioa -0\emead 230 kV line from Midpo1111 oo""" substalion sou1h ofTinuncrman -0,. erhead 230 kV line from DC\\ substalion south of Tunmennan to Moonstone. Modifica1ions -Comen existing King -Moons1one transmission to 230 kV. -lmpro, c Moonstone distribution substation 10 1ransmissio11 substation. -Undergoond 138 kV transmission from Juniper Rd IO Elkhorn Subst (paid for b) affeaed pani<11 Note An) new structures sllould blend III as much as possible "ith sunourmngs. Wood River Eloctnc:al Plan -pB·A-1 ....... RnuNs April 21, 2007 • Gnq, 8 • Ahmalfrwe t, SUMlllon -a,-. 8 · Ahmallve t. 23CltV l,-ninion -~ B·Ahmllv• 1. 131k'VT~ IIIIOr~ B. Ahmafve 1. UG t38W r,....,...... -bislng48kVTra""'111iMon !xllllngt31kVTr~ -Exilling 2'0 kV TreMffnMOII _\ N -Existing 345 kV Trant.nnslon iSIIIII&. o!"",E!,-•,==!'.-"'!. - Appendix D -Page 6 "U CJ w · (C )> (1) :, -.._J(C ...... (1) 0 -= --<O "U N () () w (/) (1) z 9 -m "U X () :r Ill fr I ;::;.: ...... z '!>o N · CX> N Idaho Power Company Updated May 2011 Wood River Electrical Plan N-13.!lkV transmission frcm Wood ~ Transmission Slallon to Ketchum Sub-. RCIUle not spedtc ance lnlide Katc:hum City llrnlts. ~ground appro,cimatlly 13.100-ofexllllng OH 138 kV lnllllllluicn hm .u1lper Rd to El<hom Subll. (Paid"" by alltc:ted p.-S) New .SUbitat100 soudt ofTaru11erma1 near Bwma Rd •138 kV tranl1llllli«1 6·«11 Wood River Trumi11iu1 Stlli<ltl to Kdda•n SUb1tatiot1 -0\wead 138 t\· ........ ,1 .. , 6un new llubllatton lo l\loonll-SUbltlllUL -ovabad 138 k\'trt111N11•11<11 ft<111 new substation lo Silvc.-SUbltabon -0\whead 138k\'1J11•111"""16..111\lidpoinllo new U>stahco. l\loddi<llion, -Couvat <Xlllil111 Kina · MOOUllooc lr.,awaion lo :!JOit\' •hitte-Silver md SUbllalioo lo 80 MW -haeac Moolllla.1e 811b1tatio11 to 80 MW. -Undqound 138 kV tn111111iasim frw, Jmiper Rd lo l!ldlm1 Subll (paid for by alfe<ted parties). •lnlpfO\'C c.,cJSbft!( M()(l}ltcoe to new switdling statioo tr1D11111111m to !00 MW . • 1iq,ro, .. C.<IIDll!I Salver to Wood River lrm-.OII lolOOI\IW _.._._ ....... ,.. ..... edAlt .......... Mapping lt..ul• 0Cloba'2007 ._ ............... -- -Poelllrod .... .,.lllve 138kVT-lk>n(OH « UGnot Specllecl) n• Poellrred-lllv• 230 kVTr...,.._ -Poetorrod-138kVOHTr.,­ naPoetorred-.138kVUGTIWI- -Exltllng"6kV Tr- Exltllng 138 kV TIWI­ -Exltllng 230 kV TIWI..- -Exltllng345kVTIWI- Bill& 0 12' '2.5 _\ N 7.5 ID Appendix D -Page 7 Idaho Power Company Appendix E -Technical Analysis Technical analysis was performed by Idaho Power staff on each alternative that the CAC came up with. Computer models were developed using PowerWorld power flow software to evaluate the power flow that would result in each alternative and to evaluate the dependability of each configuration. The Wood River Valley's electrical system is modeled only down to the 138 kV level. Distribution lines are not modeled. For a high-voltage analysis such as this, the results will be adequate and accurate. The PowerWorld model shows how the power flows on the system. It is used to evaluate voltage levels at all substations, reactive and real power flows, whether the lines are adequately sized, and whether or not the model meets n-1 reliability criteria. n-1 Reliability Criteria Because of the predicted large future load, the buildout goal for the Wood River Valley is to have a fully redundant transmission system. The system will be designed to perform to n-1 reliability criteria. This means that for multiple transmission lines delivering power to the same point, if one of the lines goes out of service, the remaining line(s) must be able to carry both the load they were carrying before the event, plus the load carried by the line that is out of service. This is true even if the line with the highest capacity is the one that goes out of service. See Appendix K for an example of the n-1 criteria. At buildout, the transmission serving from King and Midpoint substations to Wood River Transmission Station can be considered parallel paths in that if one of the lines is out of service, the remaining line cannot be overloaded and none of the substations can have voltages lower than an acceptable level. This also holds true for the case where there are two transmission lines serving from Wood River Transmission Station to the Ketchum/Sun Valley area. The maximum line-loading criterion used under n-1 contingencies (events) in this study is 100%. This means that if the system experiences one line out of service, the remaining transmission line cannot be loaded beyond I 00%of its capability. The minimum voltage acceptable under n-1 contingency is 90%, meaning that the voltage cannot be less than 90% of the normal value at any given substation. Line-Loading Criteria The only requirement applied to the amount of power a transmission line is allowed to carry under normal operating conditions is that it cannot go beyond 100% of its capacity. If a line is loaded to 100%, it still must be able to meet the n-1 criteria described above; thus, normally, a line will not be allowed to carry I 00% of its capacity during normal operating conditions. Modeling Results The models developed for each alternative using the PowerWorld power flow software indicate that each alternative, as recommended by the CAC, will perform within the set criteria. The Updated May 2011 Wood River Electrical Plan Appendix E -Page Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 72 of 92 Idaho Power Company computer models indicate that at buildout using the given alternatives, none of the lines within the Wood River Valley become overloaded during an n-1 contingency, nor do any substation voltages fall below 90% during an n-1 contingency. Thus, for electrical service purposes, the alternatives developed by the Committee are equivalent. Updated May 2011 Wood River Electrical Plan Appendix E -Page 2 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 73 of 92 Idaho Power Company Appendix F -ROW Analysis As discussed previously, the Community Advisory Committee chose a number ofroutes in which Idaho Power could place 138 kV transmission lines. Most of the routes follow existing road and transmission rights-of-way. If the lines are placed in existing transmission corridors, it will require either replacing/upgrading the existing infrastructure or expanding the corridor's width. Securing the rights-of-way necessary for all the transmission slated for the Wood River Valley will likely prove the most challenging task facing Idaho Power as it constructs electrical infrastructure toward the Valley buildout scenario. Transmission line rights-of-way can be obtained using any of the following methods: Easement -An easement gives Idaho Power the right to use the land for a specific purpose. Idaho Power acquires rights from private property owners through negotiations. The easement specifies rights and restrictions on Idaho Power's use of the land while the property owner retains ownership of the land. This is the most common arrangement. Fee Title Ownership - A landowner may sell the land needed for the transmission line to Idaho Power. Idaho Power then owns the property, receiving title through a deed. Permit -Idaho Power makes application to the appropriate agency for a permit to place the necessary facilities across public lands. Eminent Domain or Condemnation -If the landowner and Idaho Power are unable to negotiate a price for an easement or purchase of property, Idaho Power may exercise its rights under state law to take the easement or property through court action. The court then determines the fair price to be paid based on testimony provided by Idaho Power and the property owner's witnesses. If a transmission line route follows a transportation corridor, Idaho Power can either place the transmission line within the road right-of-way or purchase a private easement along the road right-of-way. Normally, Idaho Power chooses to secure private easement since if the road is widened in the future making it necessary to move the line, the cost of moving the transmission line would fall upon the agency widening the road. If the line were within the road right-of-way, Idaho Power would have to bear those costs. One Committee member discussed at length the belief that right-of-way costs for underground transmission in the North Valley would be significantly lower than for overhead transmission because landowners would be more willing to grant easements for underground transmission. The cost difference for the right-of-way could overshadow the material cost difference between overhead and underground transmission. The member also asserted that the political and legal costs would be quite high if Idaho Power were to attempt to install 138 kV overhead transmission in the North Valley. It was suggested that Idaho Power analyze this potential difference in right-of-way costs. While Idaho Power agrees that community acceptance for underground transmission would be greater, there is no valid method that can be used to estimate the cost difference for right-of-way between overhead and underground transmission short of actually going out and attempting to purchase the easements. It should be noted that some other committee members believed that there would actually not be a great difference between overhead and underground easement costs. Updated May 2011 Wood River Electrical Plan Appendix F -Page 1 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 74 of 92 Idaho Power Company Appendix G -Cost Estimates Idaho Power personnel developed some projected costs for the various alternatives the CAC came up with in their April mapping sessions. Note that these costs represent 2007 values and are not escalated into the future. North North Total South Mid Valley Valley (excluding Alt. Valley Valley Total Private Private) Total Bl \IJ $29,605,000 $31,687,500 $12,400,000 $8,800,000 $64,892,500 $73,692,500 Cl \L) $32,542,500 $36,525,000 $15,350,000 $9,000,000 $75,417,500 $84,417,500 C2 \JJ $30,405,000 $42,925,000 $15,350,000 $9,000,000 $79,680,000 $88,680,000 AI /A4 <4> $36,258,000 $42,525,000 $20,800,000 $17,800,000 $81 ,783,000 $99,583,000 AI /A3 (S) $36,258,000 $42,525,000 $43,050,000 $39,600,000 $82,233,000 $121,833,000 A2/A4 <6> $48,531,250 $30,875,000 $20,800,000 $17,800,000 $82,406,250 $100,206,250 A2/A3 <7J $48,531,250 $30,875,000 $43,050,000 $39,600,000 $82,856,250 $122,456,250 Preferred <HJ $30,405,000 $42,925,000 $4,600,000 $0 $77,930,000 $77,980,000 Table 9. Estimated Alternative Buildout Costs Notes to Table 9: (1) Construct new King to Moonstone 230 kV transmission line adjacent to existing 138 kV line. This includes upgrade to Moonstone to Wood River Transmission Station 138 kV line. After the 230 kV line is built, remove existing 138 kV line. (2) Construct new King to Moonstone 230 kV transmission line adjacent to existing 138 kV line. After the 230 kV line is built, remove existing 138 kV line. (3) Alternative C2 was developed by the CAC in addition to the alternatives developed in April. This alternative moved the location for the new south of Timmerman substation further south near the intersection of Highway 75 and Burmah Road. It then installed a new 138 kV transmission line from this substation to Silver Substation routed along Burmah Road and then double circuiting (common towers) the existing Midpoint to Silver 138 kV transmission line until it reached Silver Substation. This alternative would also build the new 230 kV transmission line adjacent to the existing King to Moonstone 138 kV line. After the 230 kV line is built, remove existing 138 kV line. (4) Construct new King to Moonstone and Midpoint to Silver 230 kV transmission lines adjacent to existing 138 kV transmission lines. After the 230 kV lines are built, remove existing 138 kV lines. (5) Construct new King to Moonstone and Midpoint to Silver 230 kV transmission lines adjacent to existing 138 kV transmission lines. After the 230 kV lines are built, remove existing 138 kV lines. (6) Must upgrade the Midpoint to Silver 138 kV transmission line also. (7) Must upgrade the Midpoint to Silver 138 kV transmission line also. (8) This row represents the estimated cost for construction of the preferred alternatives for the South, Mid and North Valley segments. ln Table 9, the column labeled "North Valley Private" shows the funding that would have to be provided by entities other than Idaho Power and represents the difference between what Idaho Updated May 201 l Wood River Electrical Plan Appendix G -Page Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 75 of 92 Idaho Power Company Power would pay for an overhead transmission line and what it would cost to put that transmission line underground. Because of the tremendous material cost difference between overhead and underground transmission, the Idaho Public Utilities Commission regulates Idaho Power as an overhead utility meaning that unless there are physical obstructions to installing a transmission line overhead and thus forcing it to be installed underground, Idaho Power must always place transmission lines overhead. If communities or persons want a transmission line installed underground, they must pay the difference between what it costs to build overhead versus what it cost to install it underground. Updated May 2011 Wood River Electrical Plan Appendix G -Page 2 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 76 of 92 Idaho Power Company Appendix H -Implementation Plan The recommendations of the Community Advisory Committee cover infrastructure improvements to the Idaho Power system that will deliver sufficient power at the Wood River Valley's buildout. Not all the facilities are needed in the near term and will be phased in as the Valley's load increases. The following is Idaho Power's recommended implementation plan: 5 Year • Build a second 138 kV transmission line between the Wood River Transmission Station in Hailey and Ketchum Substation. This is the top priority project. • Site and build the new Burmah Substation • Build new 138 kV transmission line from Midpoint Substation near Shoshone to the new Burmah Substation • Build new 138 kV transmission line from Burmah Substation to Silver Substation (near Picabo) • Build a new 138 kV transmission line from Burmah Substation to Moonstone Substation ( east of Fairfield) 10 Year • Upgrade Moonstone to Wood River transmission line to 200 megawatts • Add new 230 kV to 138 kV transformer at Midpoint Substation o The existing transformer capacity will be inadequate to serve the Wood River Valley load at this point. 15 Year • Add new voltage control device at Ketchum Substation o Won't require new lines into Ketchum Substation o Won't require that Ketchum Substation be enlarged 20 Year • Add distribution feeders from Wood River Transmission Station o Currently, this station only serves to switch the transmission, it doesn't directly feed any of the load around Hailey o This would relieve some of the load from Hailey Substation 30 Year • Upgrade Silver to Wood River transmission line to 200 megawatts o This will provide more capacity to the growing Valley load o This will also help to support the voltage at Ketchum and Elkhorn substations When load levels require, the King to Moonstone 138 kV transmission line will be converted to 230 kV. This will require that the line be completely rebuilt but it will likely be installed in the existing right-of-way. Moonstone Substation will also require improvements at this point to accommodate the higher voltage. Updated May 2011 Wood River Electrical Plan Appendix H -Page 1 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 77 of 92 Idaho Power Company Appendix I -Load Density Based on Zoning City/County Description Blaine Productive agricultural , one unit per twenty (20) acres. Blaine Productive agricultural, one unit per forty (40) acres. Blaine Rural residential, one unit per ten (10) acres. Rural remote, one unit per forty (40) acres. Blaine Blaine Residential/agricultural, one unit per five (5) acres. Rural residential, one unit per two and one-half (21/2) acres. Blaine Planned residential development district, one unit per two (2) Blaine acres. Blaine Low density residential, one unit per one acre. Blaine Medium density, one unit per four-tenths (0.4) of an acre. Blaine High density, one unit per one-fourth (1/4) of an acre. Sawtooth City medium density residential. Blaine Blaine Recreation development district. Blaine Commercial district. Blaine Sawtooth City commercial. Blaine Light industrial use district, no residential density. Blaine Heavy industrial use district, no residential density. Blaine Floodplain management district, one unit per five (5) acres. Blaine Riparian setback district. Blaine Blaine Hailey TRANSITIONAL Hailey TECHNOLOGICAL INDUSTRY Hailey SERVICE COMMERCIAL INDUSTRIAL Hailey RECREATIONAL GREEN BELT Hailey LIMITED BUSINESS Hailey LIMITED RESIDENTIAL-8000 S.F. Hailey LIMITED RESIDENTIAL-12000 S.F. Hailey LIGHT INDUSTRIAL Hailey GENERAL RESIDENTIAL Hailey BUSINESS Hailey AIRPORT Sun Valley Commercial Center Sun Valley Recreational Sun Valley Public Institution (public use -almost open space) Sun Valley Residential max 1 per acre Sun Valley Residential 4-16 units per acre Sun Valley Residential 4-24 units per acre Sun Valley Residential max 2 per acre Sun Valley Residential 4-8 units per acre Sun Valley Service Commercial (Limited "low intensity") Ketchum LR -Limited Residential District, Updated May 2011 Wood River Electrical Plan Code kW/m;2 A-20 500 A-40 300 R-10 820 RR- 40 180 R-5 840 R- 2.50 1280 R-2 1600 R-1 3200 R-.40 8000 R-1/4 12800 SCR. 4 8000 RD 50 C 15000 sec 15000 LI 15000 HI 20000 FP 320 R 0 UI 800 UIB 1200 7000 15000 10000 10 7500 12800 6400 20000 12800 10000 12000 cc 10000 OR-1 400 P-1 100 RA 3200 RM-1 51200 RM-2 76800 RS-1 6400 RS-2 25600 SC 7000 LR 15360 Appendix I -Page 1 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 78 of 92 Idaho Power Company Ketchum LR-1 -Limited Residential -One Acre Zoning District, Ketchum LR-2 -Limited Residential -Two Acre Zoning District, Ketchum GR-L -General Residential -Low Density District, Ketchum GR-H -General Residential -High Density District, Ketchum MH -Mobile Home District, Ketchum ST0-.4 -Short-Term Occupancy-.4 Acre Zoning District, Ketchum ST0-1 -Short-Term Occupancy-One Acre Zoning District, Ketchum STO-H -Short-Term Occupancy-High Density Zoning District, Ketchum T -Tourist District, Ketchum T-3000 -Tourist -3000 Zoning District, Ketchum T-4000 -Tourist -4000 Zoning District, Ketchum CC -Community Core District, Ketchum Ll-1 -Light Industrial District Number 1, Ketchum Ll-2 -Light Industrial District Number 2, Ketchum Ll-3 -Light Industrial District Number 3, Ketchum RU -Recreation Use District, Ketchum AF -Agricultural and Forestry District, Updated May 2011 Wood River Electrical Plan LR-1 3840 LR-2 1920 GR-L 15360 GR-H 19200 MH 30720 ST0-4 9600 ST0-1 3840 STO-H 19200 T 15000 T3000 15000 T4000 15000 cc 20000 Ll-1 18000 Ll-2 30000 Ll-3 18000 RU 100 AF 2500 Appendix I -Page 2 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 79 of 92 Idaho Power Company Appendix J -Example Transmission Tower Photographs The following photo overlays were created at the request of the Community Advisory Committee in order to evaluate the visual effects of various transmission configurations. Updated May 2011 Wood River Electrical Plan Appendix J -Page I Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 80 of 92 () Q) (/1 (1) z "'CJ O ~ m . -m <C )> "'CJ X (1) ::::, () ::T O> (C rn fr ._l,. CD I ;:::;.: 0 -= _. Z --O> 0 co""CN· NOo:>N Idaho Power Company Updated May 2011 Wood River Electrical Plan Existing Distribution Circuit Between Hailey and Ketchum Along SH75 Appendix J -Page 2 () ll) C/l (1) z "'00~ w. -m <e)>"'Ox (1)::::,()::r co <0 m' c' "-> CD I ;:;: 0 -= ...... Z --O> 0 co "'ON · N000N Idaho Power Company Updated May 2011 Wood River Electrical Plan Transmission Circuit with Distribution Circuits Underbuild Appendix J -Page 3 () DI en CD z "U O 9 DI· -ITT <e)>"Ux CD ::, () :::r (lO (C I CT c,J CD r;n ;::;.: 0 -= ...... Z --0) 0 co-UN · NOCON Idaho Power Company Updated May 2011 Wood River Electrical Plan Existing SH7 5 Between Ice Cave and Timmerman Hill Appendix J -Page 4 (') Ill (/l (I) z "CO~ Ill · -m <e)>"Cx (I) ::J (') :::T ()O(C I fr ~ (I) r;n ;::.: 0 -= _.. Z --O> 0 (0-c""'. 1\.)()()01\.) Idaho Power Company Updated May 2011 Wood River Electrical Plan Transmission Circuit with Distribution Circuit Underbuild Appendix J -Page 5 (") ll) (/) (l) z "U O ~ ll). -m CO )> "U X (l) ::::, (") :::r (X)CO I CT o,<l>r;n;:::;: 0 -= _.. Z --a, 0 co"UN · l\,)(")(X)I\,) Idaho Power Company Updated May 2011 Wood River Electrical Plan Existing SH75 Between Ice Cave and Timmerman Hill Appendix J -Page 6 () Ill en Cl) z "'00!=> w · -rn <C)>"'Ox Cl) ::J () ::::r 0)(0 I CT O)Cl>r;n;:::;: 0 .= _.. Z --0) 0 (O"'O"'· I\J () 0) I\J Idaho Power Company Updated May 2011 Wood River Electrical Plan Transmission Circuit with Distribution Circuit Underbuild Appendix J -Page 7 0 Ill en Cl) z "UCJ9 w · -m <C )> "U X Cl)::,()::,- 00 <0 m' cf --..j Cl) I ;::.: 0 -= _. Z --a, 0 co"UN· N Ooo N Idaho Power Company Updated May 2011 Wood River Electrical Plan Existing SH75 Between Ice Cave and Timmerman Hill Appendix J -Page 8 Idaho Power Company Appendix K -n-1 Reliability Criteria Example n-1 Reliability Example Idaho Power must adhere to what's known as an "n-1" criterion for main grid transmission. For multiple transmission lines delivering power to the same point, if one of the lines goes out of service, the remaining lines must be able to carry both the load they were carrying before the event, plus the load carried by the line that is out of service. • This is true even if the line with the highest capacity is the one that goes out of service. • Only holds true for major transmission lines. Take for example three, extra-high voltage, 345,000-volt transmission lines operating electrically in parallel as shown in Figure 1. This means that they all originate in the same location and deliver power to the same location. Each line might take a different path to get there, but all three begin and end in the same locations. Big Town Subst•tlon 345KV Electrlc11I Lo11d ' 780 HW C•p•clty 725 HW C•p•clty :l.053 HW C•p•clty Subst•tlon 345KV Figure 1. Three Parallel Transmission Lines Big Gener•tor Subst•tlon 345KV Generill:or 780 HW C•p•clty The top line is 100 miles long and has a capacity of 725 MW. The middle line is also 100 miles long and has a capacity of 1,053 MW. The bottom line is 200 miles long and has a capacity of 780 MW. There is a substation located at the halfway point on the bottom line but it has no effect on the power flow. Updated May 2011 Wood River Electrical Plan Appendix K -Page 1 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 88 of 92 Idaho Power Company Normal Operation, No Lines Out The three lines in Figure 2 are carrying a total of 1,400 MW to a load located at Big Town Substation. Note that the generator is producing 1,406 MW of power while the load is only consuming 1,400 MW. The difference between the two is due to losses on the transmission system .. .losses that must be provided for by the generator. The green arrows shown on the drawings indicate the direction of power flow. Big Town Subst1t/on 34SKV 1400MW Lo11d 263MW (780 MW mu) 526MW (725 MW mu) Subst1t/on 345KV Figure 2. Three Parallel Transmission Lines During Normal Operation Big G~n~r1tor Subst1t/on 34SKV The blue circle on each transmission line is a visual indication of how much each line is loaded. The top circle indicates that the line is carrying about% of the amount it is capable of. If the circle turns orange, it indicates that the line is approaching its maximum capacity. A red circle indicates that the line has exceeded its capacity. All three lines are operating within their capacity and could operate like this indefinitely. Top line capacity= 725 MW Top line operating at 526 MW Middle line capacity= I 053 MW Middle line operating at 612 MW Bottom line capacity = 780 MW Bottom line operating at 263 MW Updated May 2011 Wood River Electrical Plan Appendix K -Page 2 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 89 of 92 Idaho Power Company Bottom Line Out of Service Now lets see what happens if we take the bottom line out of service. The circuit breaker located on the right side of the line (red box in upper drawing) turns to a hollow green when the circuit breaker is open, de-energizing the line. Load OMW {780HWm.rx) 647MW {725HWm.rx) Sub st.rt/on 34SKV OMW (780 HW m.rx) Figure 3. Three Parallel Transmission Lines, Bottom Line Out of Service Notice that no power flows on the bottom line now. The middle line, which has the highest capacity of all three, is now operating to about % of its capability. The top line indicates that it is operating at 89% of its capability, giving us a warning. However, these lines could operate like this indefinitely so no action is required. In this case, we have met the n-1 criteria. Top line capacity = 725 MW Top line operating at 647 MW Middle line capacity = 1053 MW Middle line operating at 753 MW Bottom line capacity = 780 MW Bottom line operating at O MW Note that the generator on the right side of the drawing is producing more power compared to the last case. The power losses are higher with one of the lines out of service because there is more resistance to power flow. Updated May 2011 Wood River Electrical Plan Appendix K -Page 3 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 90 of 92 Idaho Power Company Top Line Out of Service Now we will put the bottom line back in-service and take the top line out of service. Again, the circuit breaker on the right of the top line will go from solid red to hollow green indicating that the line is out of service. Big Town Subst11tion 345KV 421MW {7BOMWm11x) OMW (725 MWmilX) Big G~n~r11tor Subst11tion 345KV 422MW (7BOMWmilX) Figure 4. Three Parallel Transmission Lines, Top Line Out of Service Notice that no power flows on the top line now. The bottom line indicates that it is operating at about 2/3 of its capability while the middle line is warning us that it is operating at 93% of its capability. These two lines could operate like this indefinitely so again no action is required. Top line capacity = 725 MW Top line operating at O MW Middle line capacity = 1053 MW Middle line operating at 979 MW Bottom line capacity = 780 MW Bottom line operating at 421 to 422 MW Again, notice that the generator is now producing more power due to the higher line losses with one of the lines out of service. Updated May 2011 Wood River Electrical Plan Appendix K -Page 4 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 91 of 92 Idaho Power Company Middle Line Out of Service The top line is put back in service and the middle line is taken out of service. This is indicated in Figure 5 by the circuit breaker located on the right side of the middle line changing from a solid red box to a hollow green box. Big Town Subst•tion 34SKV 1400MW Load 467MW {7BOHWmu) OMW {1053 HWm•x) 468MW (780 MW mu) Figure 5. Three Parallel Transmission Lines, Middle Line Out of Service 1410MW Generator Figure 4 indicates that the bottom line is operating at about 2/3 of its capability and this can be maintained indefinitely. However, notice that the top line's indicator shows that it is now operating at 129% of its capability. A transmission line cannot operate like this for very long because the line gets too hot and can be damaged to the point of breaking. So, in this case, our three transmission lines have failed the n-1 test. When the largest transmission line was taken out of service, the other two could not safely carry the power it was carrying plus the power they were carrying before the incident. Top line capacity = 725 MW Top line operating at 933 MW Middle line capacity = 1053 MW Middle line operating at O MW Bottom line capacity = 780 MW Bottom line operating at 467 to 468 MW Updated May 2011 Wood River Electrical Plan Appendix K -Page 5 Exhibit No. 2 Case No. IPC-E-16-28 D. Angell, IPC Page 92 of 92 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-16-28 IDAHO POWER COMPANY ANGELL, DI TESTIMONY EXHIBIT NO. 3 An IDACORP Company October 13, 2016 Subject: Wood River Valley Transmission Line Update Dear Advisory Committee Member: Update on Recent Activities Idaho Power began the construction phase to replace the King to Wood River 138-kilovolt (kV) transmission line this summer. This project is one of the two near-term priority projects identified in the 2007 Community Advisory Committee (CAC) process. The construction activity is going well and the replacement is scheduled to be complete next year. This replacement line, in combination with the prior modifications to the Midpoint to Wood River 138 kV line, will provide increased capacity and reliability to the Wood River substation in Hailey. You may have noticed the increased Hailey to Ketchum redundant transmission line coverage in the Mountain Express recently. Idaho Power has been actively engaged with the local jurisdictions this past summer. The Blaine County Planning and Zoning Commission hearing on transmission line will take place today. Later this month, Idaho Power will file an application for a Certificate of Public Convenience and Necessity with the Idaho Public Utilities Commission to construct the Hailey to Ketchum 138 kV redundant transmission line. Another area of activity has centered on local backup generation. Individuals in the Wood River Valley have asked whether local electric generation resources combined with the distribution grid (i.e., a microgrid) would be a cost-effective solution to increasing the reliability of service to the northern portion of the Wood River Valley. This prompted a CAC member to ask for updated local backup generation information. The attached report provides a summary ofldaho Power's recent work in this area and an updated analysis of microgrid requirements and capability. Idaho Power's preliminary and conceptual investigation reveals that the cost to provide a 65-megawatt (MW) microgrid with backup generation for a 24-hour period ranges from approximately $57 million (diesel engine system) to $955 million (photovoltaic [PV] plus battery system). Alternate Generation Background Idaho Power has been engaged with alternate energy resources for many years. During the 1990s, Idaho Power developed a tariff for the installation and maintenance of solar PV and battery systems for remote electrical energy requirements. Idaho Power contracted for the first utility-scale wind project to interconnect to our system near North Powder, Oregon. This was 1221 W. Idaho St. (83702) P.O. Box 70 Boise, ID 83707 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 1 of 56 CAC Update Page 2 of 4 October 12, 2016 followed by agreements to purchase geothermal generation from facilities located south of Malta, Idaho, and west of Vale, Oregon. Alternate energy resources are evaluated along with traditional resources during the development of the biennial Integrated Resource Plan (IRP). During the 2007 Community Advisory Committee process, Idaho Power shared information about alternative energy generating technologies. The discussion included wind, solar, geothermal, fuel cells, and combustion turbine technologies. At that time, Idaho Power identified that small-scale solar could provide energy to the region but would not act as a true backup source because of its intermittent qualities. Idaho Power also identified a suitable geothermal electric generating resource in the Moonstone area but noted that "it would still require electrical transmission to deliver the energy to Valley residents." Since 2014, Idaho Power has taken part in three primary activities to explore alternative energy generating technologies in relation to the Wood River Valley. First, Idaho Power brought together the Wood River Renewable Energy Working Group to better understand the desire for renewable resources and work collaboratively with Wood River Valley residents to explore the feasibility of creating one or more new energy products to help serve the valley. The group explored the following electric generation resources: solar, wind, geothermal, hydro, fuel cells, batteries, biomass, and bio digesters. The group also developed revisions to Idaho Power's Green Power Program to enable customers to offset a portion or all of their energy use with renewable energy through the purchase of renewable energy credits, or green tags. Second, during this process, backup power questions were raised, and Idaho Power provided some high-level conceptual cost estimates for a storage and diesel project. These estimates revealed that the cost of such options-particularly storage-far exceeded the estimates of the installation of a redundant transmission line. Third, in 2015, two Idaho Power employees attended the Rocky Mountain Institute eLab Accelerator workshop. This workshop was focused on collaborative innovation to address technical barriers to the economic deployment of distributed resources, with representatives from the City of Ketchum, Sun Valley Company, and NRG. Idaho Power provided load data and ideas at the workshop and developed the two report appendices following the workshop in continued support of the collaborative effort. To my knowledge, these two reports and a confidential presentation from NRG are the only items that were shared with the eLab team since the workshop. Idaho Power's engineers spent notable time working on Rocky Mountain Institute's eLab Accelerator project. Indeed, representatives from the City of Ketchum openly applauded Idaho Power's participation, stating, "eLab Accelerator was extremely important to help us get started, to get to know the other stakeholders, to hear from national experts, and to grow trust. Bringing the utility together with the community was key [ emphasis added]." For more information on Idaho Power's efforts, please see http ://blog.rmi.org/blog 2015 09 08 elab accelerator explores resilience options in sun vall ~- Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 2 of 56 CAC Update Page 3 of 4 October 12, 2016 Alternate Generation Analysis The attached report summarizes Idaho Power's recent analysis of resources to provide service to the northern portion of the Wood River Valley during an outage of the existing 138-kilovolt (kV) Hailey to Ketchum transmission line. This report was produced by Idaho Power staff with some independent technical review and feedback from the Idaho National Laboratory (INL). Idaho Power has an internal team focused on 1) seeking opportunities for funding sources for piloting alternative technologies and 2) evaluating non-traditional approaches to resolve distribution voltage and equipment overload issues. This team of engineers has been evaluating potential applications of PV generation and battery storage technology the last few years. Employees on this team simulated and contracted for the installation of 18 kilowatt (kW) of PV to mitigate a system voltage issue, participated in the solicitation process for 500 kW of PV, and solicited budgetary quotes for a 500 kilowatt-hours (kWh) energy storage system in response to an Oregon grant opportunity. Over the past decade, these employees have developed a relationship with energy system researchers from the INL. The INL researchers are leaders in implementing reliable energy systems, with more than 1,000 MW of hybrid power, solar, and wind energy systems deployed at Department of Defense and industry/utility sites around the world. Based on this existing relationship, Idaho Power was able to solicit some assistance on the analysis and report from an INL researcher. The costs provided in the report have been largely obtained from third-party resources. The report contains references to these third parties throughout the document. Although the attached report contains helpful information related to renewable technologies, it is still conceptual in nature. Idaho Power would need to take part in extensive design and engineering work to provide more detailed estimates. Idaho Power Electric Energy Idaho Power's renewable portfolio is significant. In addition to our 1,660 MW nameplate hydroelectric fleet, Idaho Power has about 727 MW of wind, 35 MW of geothermal, 29 MW of biomass, and 290 MW of utility-scale solar installed or planned to be installed through the end of 2017. To put this additional 1,081 MW ofrenewable resources into perspective, Idaho Power's average load is approximately 1,800 MW. In addition, Idaho Power continues to produce electricity while reducing carbon emissions. Since 2015, Idaho Power has reduced carbon emissions by over 20 percent. Idaho Power is ranked as the 41 51-lowest carbon dioxide emitter among the nation's 100 largest electricity producers. These reductions are present during the winter months where greater than 60 percent of the fuel mix during the 2015 to 2016 winter months was sourced from hydro and renewable sources. 1 1 Because Idaho Power sells (or does not own) the renewable energy certificates or "green tags" associated with certain projects in its resource portfolio, and uses the proceeds to benefit customers, Idaho Power is not permitted to state that renewable energy from those projects is delivered to customers. Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 3 of 56 CAC Update Summary Page 4 of 4 October 12, 2016 Since 2007, Idaho Power has been engaged in meetings with various members of the Wood River Valley and held numerous discussions on reliability and renewable energy issues. The attached report provides a high-level summary our assessment of local backup generation options. All these options include higher initial and ongoing maintenance costs compared to a transmission line alternative. Thank you for your continued interest and participation in our community advisory process. Sincerely, v~~ David M Angell Manager, Customer Operations Planning enclosure: Northern Wood River Valley-Local Backup Electrical Supply Report Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 4 of 56 Northern Wood River Valley-Local Backup Electrical Supply Report An IOACORP Company Customer Operations Planning October 2016 © 2016 Idaho Power Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 5 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report TABLE OF CONTENTS Table of Contents ............................................................................................................................. i List of Tables ................................................................................................................................... i List of Figures ................................................................................................................................. ii List of Appendices .......................................................................................................................... ii List of Acronyms ............................................................................................................................ ii Executive Summary ......................................................................................................................... 1 Scope ................................................................................................................................................ 3 Study ................................................................................................................................................ 3 Land and Interconnection Requirements ........................................................................................ .4 Resources Considered ...................................................................................................................... 4 Diesel Reciprocating Generators .............................................................................................. .4 Natural Gas Combustion Turbines ............................................................................................. 5 Battery Energy Storage System ................................................................................................. 5 Solar Photovoltaic ...................................................................................................................... 5 Geothermal ................................................................................................................................. 5 Biomass ...................................................................................................................................... 5 Results .............................................................................................................................................. 6 Total Installed Costs .................................................................................................................. 6 O&M Cost. ................................................................................................................................. 6 Conclusions ...................................................................................................................................... 7 References ........................................................................................................................................ 7 Table 1. Table 2. Table 3. LIST OF TABLES Resource cost summary ........................................................................................... 1 Land and interconnection costs ................................................................................ 4 Capital costs ............................................................................................................. 6 Page i Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 6 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company Table 4. Table 5. O&M costs ............................................................................................................... 6 Fuel costs for a I-day transmission outage .............................................................. 7 LIST OF FIGURES Figure I. December 3 I, 2015, load profile .............................................................................. 3 LIST OF APPENDICES Appendix A Property Protection Analysis Report Appendix B Power Usage Distribution Appendix C City of Ketchum Solar Generation Assessment Appendix D Microgrid Study Results LIST OF ACRONYMS BESS-Battery Energy Storage System CT-Natural Gas Combustion Turbine Generation DRE-Diesel Reciprocating Engine Generation F-Fahrenheit HOMER-Hybrid Optimization of Multiple Energy Resources INL-ldaho National Laboratory kV-Kilovolt kW-Kilowatt m2-Square Meter MW-Megawatt MWh-Megawatt-Hour NREL-National Renewable Energy Laboratory Page ii Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 7 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report O&M-Operation and Maintenance PY-Photovoltaic Page iii Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 8 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report EXECUTIVE SUMMARY This document presents the results of a preliminary study to provide the northern Wood River Valley customers served by the Ketchum and Elkhorn substations with backup electrical supply from locally sited generation. The resources considered in the study are diesel reciprocating engine (DRE), natural gas combustion turbines (CT), photovoltaic (PY) plus battery energy storage system (BESS), geothermal generation, and biomass generation. The analysis was performed using industry-standard energy resource simulation software, HOMER®, which was developed by the National Renewable Energy Laboratory (NREL). The capital, operations and maintenance (O&M), and fuel cost estimates for the resources identified above were obtained from Lazard 's Levelized Cost of Energy Analysis-Version 9. 0 (Lazard 2015a). Idaho Power also compared the Lazard estimated with pre-engineering budgetary quotes from several vendors. Additionally, the Idaho National Laboratory (INL), with more than 1,000 megawatts (MW) of hybrid power, solar, and wind energy systems deployed at Department of Defense and industry/utility sites around the world, provided independent technical review and feedback on the analysis and report. Table 1 summarizes the estimated equipment, installation, O&M, and fuel cost of each resource. The following assumptions were made: 1) the area served requires 60 MW of peak power based on an Idaho Power study of the requirements to maintain residential and commercial building at 55 degrees Fahrenheit (F) (see Appendices A and B); 2) the total energy consumed during the 24-hour period would be 1,150 megawatt-hours (MWh); and 3) the PY peak output of the area would be 21 MW based on Idaho Power's Solar Availability in Ketchum study (see Appendix C). The diesel generator and battery equipment costs were compared against budgetary quotes received during the last year. This study and the estimates provided are preliminary and conceptual in nature. Therefore, Idaho Power cannot guarantee any cost estimates based on this preliminary analysis. Table 1. Resource cost summary Manufacturer Total Installation O&M Annual 24-Hour Resource Equipment Cost Cost Cost Fuel Cost Diesel Engine $800/kW $57,000,000 $1 ,000,000 $197,000 Gas Turbine $1500/kW $101,000,000 $455,000 $41 ,000 PV plus Battery Storage $800/kWh $924,000,000 $3,450,000 $46,000 The analysis demonstrates that the most economical way to provide backup electrical supply from local generation (i.e., a microgrid) is by either diesel engines or gas turbines. With respect to the other resources considered, the study area does not have a geothermal resource suitable for electrical generation, and biomass generation costs are significantly higher and the startup time would be substantially longer than for diesel engines or gas turbines. Additionally, the biomass generation would require more investigation into the availability of and cost to extract the local Page 1 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 9 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company biomass material. Finally, the large winter energy requirement results in a cost-prohibitive battery system at this time. The study does not address, among other things, the ability to site, permit, or determine the operational limitations that might be imposed on the electrical generation resources. Idaho Power contacted Intermountain Gas to verify the ability to supply natural gas to fuel the generators. However, a response was not provided by the time of report distribution. Page 2 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 10 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report SCOPE The intent of this study is to provide a preliminary examination of the resource capital (including equipment procurement, installation, land, and grid integration costs); operation and maintenance (O&M); and fuel costs of local generation resources that may be used to supply backup electrical energy for the customers served by the Ketchum and Elkhorn substations. The assessment of the capital and O&M costs are based on the pre-engineering estimates of the performance and cost of commercial or near-commercial technology available at the time of this study. Local permitting requirements, environmental mitigation, and noise levels for diesel and gas turbine plants were not considered in this study. STUDY This study considered a scenario in which the 138-kilovolt (kV) Hailey to Ketchum transmission line is out of service for a 24-hour period during the winter. The present winter peak load in the area is 60 megawatts (MW) and is projected to reach 65 MW by 2025. The model simulated a single year in I-hour intervals using each resource and a combination of them. A previous study shows that winter load cannot be substantially reduced by rotating outages but could be reduced by 10 percent if thermostats could be automatically set to 55 degrees during an outage, resulting in a reduction of the forecasted 2025 recent peak loads (see Appendices A and B). A load profile, shown in Figure 1, modified to reflect reduced Bald and Dollar Mountain operations for December 31 , 2015, is used to simulate the total energy consumed during the 24-hour period of 1,150 megawatt-hours (MWh). Idaho Power recognizes that a transmission structure failure during the winter may require several days to repair. The 24-hour period is used merely to determine a base cost. This cost could be multiplied by the desired days of backup service to establish the total cost of a local backup resource option. Figure 1. December 31, 2015, load profile Page 3 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 11 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company With the transmission line out of service, the customers served by both Ketchum and Elkhorn substations need to be served by the evaluated alternative resource. The study assumes Ketchum and Elkhorn substations respectively supply 46 and 14 MW of the 60 MW peak load. The generator sizes have been selected based on commercially available units that can manage load restoration and provide reactive power requirements of the loads. These selections result in a total generation capacity of about I I 0% of the peak load. LAND AND INTERCONNECTION REQUIREMENTS Over one acre of land would be required for the diesel reciprocating or combustion turbine generators. It is likely that additional land would be required to site the battery system. The interconnection cost estimates include the transformer, protection, and control systems to interface with the existing substations. The estimated land and interconnection costs are shown in Table 2. Table 2. Land and interconnection costs Substation Site Ketchum Elkhorn Total Land Cost Interconnection Cost Total $1 ,306,800 $862,000 $2,168,800 $871 ,200 $558,000 $1 ,429,200 $2,178,000 $1 ,420,000 $3,598,000 RESOURCES CONSIDERED The resources analyzed in the study are diesel reciprocating engine generation (DRE), natural gas combustion turbines (CT), photovoltaic (PY) plus battery energy storage system (BESS), geothermal generation, and biomass. The costs for each resource were obtained from Lazard 's Levelized Cost of Energy Analysis-Version 9. 0 (Lazard 2015a). The diesel engine and battery storage costs were compared against budgetary quotes received during the last year. The Idaho National Laboratory (INL) provided feedback on their experience with the cost of the resources. Diesel Reciprocating Generators DRE remains the most common choice for emergency power systems worldwide. It is a mature resource that has provided backup power for decades. According to the Lazard (2015a) report, the capital cost for installing DRE can range from $500 per kilowatt (kW) to $1,000 per kW. This price does not include the cost of land or the cost to interconnect to the system. The price of diesel fuel is assumed to be $2.50 per gallon, and the O&M costs for a diesel generator are $15 per kW per year and $15 per MWh (Lazard 2015a). These reciprocating generators could be fueled by natural gas with the fuel pricing shown in the following Natural Gas Combustion Turbine section. A quote from a vendor during the third quarter of 2016 shows the price of diesel generators is close to the upper end of the range discussed in the Lazard report. Page4 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 12 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Natural Gas Combustion Turbines The use of gas turbine technology, while not as common as diesel generation, has increased in recent years as an alternative to providing backup power. According to the Lazard (2015a) report, the capital cost for installing CT can range from $2,500 per kW to $2,700 per kW. However, the INL provided information that shows the cost of CT as being as low as $1,500 per kW. The price does not include the cost of land or the cost to interconnect to the system. The fuel price for natural gas is $0.124 per cubic meter (m3) and the O&M costs associated with CT are $6.85 to $9.12 per kW per year and $7.0 to $10.9 per MWh. Battery Energy Storage System One of the emerging technologies used for providing backup power is the BESS. Even though batteries do not generate electricity, they can be charged from the grid and can provide backup power when the grid is off-line. Because of the size and application of the project, a flow battery was chosen for the study with a price of $800 per kWh (Lazard 2015b ). Solar Photovoltaic The solar capability of the Ketchum area was determined by approximating the amount of residential and commercial roof area suitable for PY installation and following National Renewable Energy Laboratory (NREL) guidelines. The results show that an estimated roof area of I 12,578 square meters (m2) is suitable for roof-mounted PY.installation. See Appendix C for the complete study. Based on the calculated roof area available to install solar PY, the total amount of PY that could be installed in the Ketchum area is 21.4 MW de· The solar irradiance was obtained for the Ketchum area using NREL's PYWatts calculator. This level of PY penetration may take many years to achieve but is included in the study to represent a potentially reduced level of energy storage requirements in the future. Geothermal The geothermal resource was reviewed through the NREL Geothermal Prospector tool (NREL 2016) and is supported by an Idaho Department of Water Resources 1990 report (ID DWR) reference by INL during a Wood River Renewable Working Group presentation on geothermal. The NREL tool indicates the Ketchum area has class 2 and class 3 geothermal resources. Both geothermal classes could support residential or commercial heating but would be inadequate for power generation. The INL researcher, during his presentation, identified only the Magic Hot Springs thermal resource as suitable for electrical generation. Biomass According to the Lazard (2015a) report, the capital cost of installing biomass ranges from $3,000 per kW to $4,000 per kW. The installation cost for 60 MW of biomass generation would likely exceed $200,000,000. The biomass option has not been fully evaluated based on the comparably higher capital cost; large land requirements; and uncertainty of fuel capacity, expense and emission requirements. Page 5 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 13 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company RESULTS The analysis evaluated each resource total cost (capital, O&M) and the HOMER simulation results. Additional simulation results are provided in Appendix D. Total Installed Costs The locations of the proposed diesel generators, gas turbines, and battery systems were split onto the 2 main sites-50 MW of generation were added to the Ketchum Substation and 15 MW at the Elkhorn Substation. The capital costs for each resource are shown in Table 3. The resources for the capital costs are based on the following: 1) the diesel generation price is based on the Lazard (2015a) report and verified with a Wartsila Company budgetary level quote, 2) the gas combustion turbine price is based on $1 ,500 perk W which is situated between the m icroturbine price and the gas peaker plant in the Lazard (2015a) report, and 3) the battery price is based on $800 per kWh for the battery system and assumes 21 MW of local PV installed by others. The size of the battery was calculated based on the energy needs for a one-day outage. The capital cost of the battery will increase if the backup power is needed for more than a single day. Table 3. Capital costs Resource Capital cost Diesel Generation Gas Turbine PV plus Battery System O&M Cost $57,000,000 $101 ,000,000 $924,000,000 There are two components to the O&M cost. The first is a fixed annual cost based on the size of the generator and the routine start-up and operation of the generator, typically 4 hours per month. The second component is directly proportional to the operation time of the generators during an outage of the existing transmission line. Table 4 shows the fixed annual cost for fuel and O&M. Table 4. O&M costs Resource Diesel Generation Gas Turbine PV plus Battery System Fixed O&M (per year) $1 ,000,000 $455,000 $3,450,000 The study assumed the existing Hailey to Ketchum 138-kV transmission line was out of service for 1 day. Table 5 shows the fuel cost when operating the diesel generators and gas turbines, and the electricity cost (energy delivered to the battery with associated transmission and substation costs) for charging the battery. Page 6 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 14 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Table 5. Fuel costs for a 1-day transmission outage Resource Variable Fuel Diesel Generation Gas Turbine PV plus Battery System $197,000 $41 ,000 $46,000 CONCLUSIONS A study to provide backup power to the Ketchum and Elkhorn area using local generation was performed. The study demonstrates that the use of DRE is the more cost-effective of the local resources considered. A local geothermal generation resource is not available. Biomass generation will require a significantly higher capital cost and require much more resource investigation. Finally, a battery system is cost-prohibitive at this time. REFERENCES Lazard. 2015a. Lazard's levelized cost of energy analysis-Version 9.0. https://www.lazard.com/perspective/levelized-cost-of-energy-analysis-90/. Lazard.2015b. Lazard's levelized cost of storage analysis-Version 1.0. https://www.lazard.com/media/23 91 /lazards-level ized-cost-of-storage-anal ysis-10. pdf. [NREL] National Renewable Energy Laboratory. 2016. Geothermal prospector mapping tool. https://maps.nrel.gov/geothermal-prospector/. Golden, CO: NREL. [ID DWR] Idaho Department of Water Resources. 1990. Geothermal Resource Analysis in the Big Wood River Valley. https://www.idwr.idaho.gov/files/publications/wib30p17- geothermal-big-wood-river-valley.pdf Page 7 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 15 of 56 Northern Wood River Valley Local Backup Electrical Supply Report This page left blank intentionally. Page 8 Idaho Power Company Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 16 of 56 Appendix A Property Protection Analysis Report Property Protection Analysis Report Rev. 2 An IOACORP Company Ketchum Energy Resilience Team October 2016 © 2016 Idaho Power Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 17 of 56 TABLE OF CONTENTS Table of Contents ............................................................................................................................. i List of Appendices ........................................................................................................................... i Background ...................................................................................................................................... 1 Methodology .................................................................................................................................... 1 Minimum Indoor Temperature .................................................................................................. 1 Heat Loss Rate ........................................................................................................................... 1 Heating Capacity ........................................................................................................................ 2 Heating System Duty Cycle ....................................................................................................... 2 Cold Load Pick Up Effect .......................................................................................................... 2 Other Considerations ................................................................................................................. 3 Conclusion ....................................................................................................................................... 3 References ........................................................................................................................................ 3 LIST OF APPENDICES Appendix A.A Heat Loss Rate .............................................................................................................................. 5 Appendix A.B Heating Capacity and Duty Cycle ................................................................................................. 8 Appendix A.C Cold Load Pick Up ........................................................................................................................ 9 Page Ai Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 18 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report BACKGROUND A multi-stakeholder team, including the City of Ketchum, Sun Valley Company, Idaho Power, and NRG, attended the Rocky Mountain Institutes Electricity Innovation Lab (e-Lab) during March of 2015. The team decided that four levels of electrical demand would be evaluated relative to the local renewable resource capability: critical life safety, property protection, summer peak load and winter peak load. This report addresses the property protection demand required to maintain building heat at a level to avoid freezing water pipes during sub-zero temperature conditions. The report was updated October 2016 to improve readability. METHODOLOGY The minimum amount of heat generation necessary to keep water pipes from freezing in homes and businesses with a rotating outage is calculated based on the following elements: • Minimum indoor temperature • Heat loss rate • Heating capacity • Heating system duty cycle A formal study can be conducted to determine the heat loss rate for homes in the Ketchum Area and the minimum indoor temperature required to keep the pipes from freezing. If a formal study is desired, it should be conducted during an extreme winter peak. Minimum Indoor Temperature The minimum requirement to protect property is based on maintaining a minimum temperature inside homes and businesses. It does not guarantee that pipes will not freeze, as all buildings are not constructed in the same manner. Water pipe placement within exterior walls and along attics will impact the likelihood that property damage occurs. The American Red Cross, Consumer Reports, and State Farm all recommend maintaining an indoor temperature of 55°F to keep pipes from freezing. The report will use 65°F because the buildings will need to be heated above the point at which pipes would freeze, and then be allowed to cool over time in a rotating outage. Heat Loss Rate Heat loss determines how quickly indoor temperatures drop and how long the power must be on to prevent damage. Heat is lost in a variety of ways: • Walls Page A1 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 19 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report • Windows • Ceiling • Floor • Ventilation • Infiltration Heat loss for each of these ways can be estimated based upon a set of assumptions and equations. This is done in Appendix A. Heating Capacity The heating capacity of a home or business is based on its heat strip size. The recommended heat strip size can be determined based upon the size of the building and the region. An example calculation for the Ketchum area can be found in Appendix B. Heating System Duty Cycle The duty cycle of the heating system determines the amount of time that the system can be off compared to how long it must remain on to maintain a set temperature. The equation is located in Appendix B. The calculation results in the heating system must remain on 77% of the time in order to keep the indoor temperature at or above 55°F and avoid frozen water pipes. Cold Load Pick Up Effect Under normal conditions in cold weather, the hundreds to thousands of homes and businesses served by an area's substation do not have all of their heating systems, lights, and appliances using power at the same time. The heating and refrigeration loads cycle on and off based on temperature. Due to the temperature cycling effect, a portion of the home and business heating and refrigeration load will be off at a given time. This is known as load diversity. When a transmission line is out of service, all buildings served from the substation lose power at the same time. When service is restored after some period of time, more heating and refrigeration equipment will be in an on-state at the same time. For greater outage periods prior to restoration, the homes and businesses will require more time to bring the temperature up to thermostat settings. This requires the substation to serve a greater amount of electrical load at the same time. The condition where a substation restores electrical load following an outage is called cold load pick up. The distribution circuits out of the substation that serve customers in the Ketchum Area have a 12.SMVA loading design limit. Idaho Power does not normally the circuits beyond 1 OMVA. The additional 20% reserve capacity is used to during situations such as cold load pick up. However, the load on the circuits must be restored in sections resulting in less than 12.5MVA of power. This requires carefully adding the circuit sections over time to allow load diversity to occur within each section. If sections are added prior to the load diversity occurring, an overload will Page A2 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 20 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report occur, the circuit will be taken out of service, and the restoration process will have to begin again. The customers located in the most remote section will be restored last and are often out of service two to four times as long as the customers located near the substation. A rotating outage backup system would need to protect all of the customers from property damage. More details regarding cold load pick up can be found in Appendix C. Other Considerations The time for different houses to drop temperature varies widely based on their thermal mass, square footage, tightness of construction, solar orientation, building use, wind speed and direction, and other factors. Heat loss studies are inherently risky since incorporating all factors is unfeasible and the consequences of a ruptured pipe can be substantial. CONCLUSION This study demonstrates that the heating system must remain on 77% of the time to protect the property. Assuming rotating outages on the distribution circuits, the remote sections will experience a restoration delay exceeding one hour due to cold load pick up effects. Therefore, rotating outages to reduce load during transmission outages cannot prevent property damage for all homes and businesses. REFERENCES Preventing and Thawing Frozen Pipes [Web log post]. Retrieved June 2, 2015, from http://www.redcross.org/prepare/disaster/winter-storm/preventing-thawing-frozen-pipes. How to prevent your pipes from freezing and bursting [Web log post]. Retrieved June 2, 2015, from http://www.consumerreports.org/cro/news/2014/01 /how-to-prevent-your-pipes-from­ freezing/index.htm . Preventing Frozen Pipes [Web log post]. Retrieved June 2, 2015, from http://learningcenter.statefarm.com/residence/maintenance/preventing-frozen-pipes/. Overall heat transfer loss from buildings -transmission, ventilation and infiltration [Web log post]. Retrieved June 2, 2015, from http://www.engineeringtoolbox.com/heat-loss-buildings­ d 113.html. Equipment Sizing Guide [Web log post]. Retrieved June 2, 2015, from http://www.homedepot.com/ catalog/pdflmages/03/03 682bd8-892 l -4e23-beed- 884f325e0a57. pdf. Calculating Home Heating Energy [Web log post]. Retrieved June 2, 2015, from http://hyperphysics.phy-astr.gsu.edu/hbase/thermo/heatloss.html. How Much Insulation Should Be Installed [Web log post]. Retrieved June 2, 2015, from http://www.naima.org/insulation-knowledge-base/residential-home-insulation/how-much­ insulation-should-be-instal led.htm I. Page A3 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 21 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Energy Ratings [Web log post]. Retrieved June 2, 2015, from http://www.nfrc.org/windowratings/Energy-ratings.htm 1. Comparison of Heat Loss by Sample Building Component [Web log post]. Retrieved June 2, 2015, from http://www.google.com/url ?sa=t&rct=j&q=&esrc=s&frm= 1 &source=web&cd=7 &ved=OCEY Q FjAG&url=http%3A%2F%2Fwww.waptac.org%2Fdata%2Ffiles%2Fwebsite docs%2Ftraining %2Fstandardized curricula%2Fcurricula resources%2Fheat-loss-calculation­ worksheet.doc&ei= XEwlV cCdOsTPsAX4ooBI&usg=AFQjCNGUf()3RA vwXJDgQgAFPDgC WGs5nUA&sig2=XoT8uQ MXl4pgaOXJsZrTA&bvm=bv.90237346,d.b2w. How Do the 2006 Residential and International Energy Codes Stack Up? [Web log post]. Retrieved June 2, 2015, from http://www.neo.ne.gov/neq online/sept2006/sept2006.08.htm. Residential Buildings Energy Code Summary 2009 [Web log post]. Retrieved June 2, 2015, from http://www.google.com/url ?sa=t&rct=j&q=&esrc=s&frm= I &source=web&cd=5&sq i=2&ved=O CDgQFjAE&url=http%3A%2F%2Fdeq.mt.gov%2FEnergy%2Fconservation%2Fhomes%2FNe wHomes%2Fpdfl/o2FEnergyNotes RES ID 09 Jan%252009.pdf&ei=XIQIVZ70HleAygTq 1 oH wAg&usg=AFQjCNGRvQeAruOS5Lh03Nurqyw3uvQmhg&sig2=tnRpiCKQgljD99ZDxlDMiw &bvm=bv .9023 7346,d.b2w. BTU Calculator [Web log post]. Retrieved June 2, 2015, from http://www.calculator.net/btu­ calculator.html. Chris Pollow, Idaho Power, Senior Engineer (personal communication, May 6, 2015). Todd Greenwell, Idaho Power, Program Specialist II (personal communication, May 6, 2015). PageA4 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 22 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Appendix A.A Heat Loss Rate For the following calculations, these assumptions were made: • The building size is 2000 sq ft. • The building is one level with 8 foot ceilings. • An outside temperature of -21 °F was assumed for the extreme peak. Walls The average heat loss through a wall can be determined by the following equation: Window Q Area· (l -Wall ) · (Tinside -Toutside) Heat loss rate (walls) = - = -----....;...;...='-----------t Thermal resistance of wall Where: Area= Heightwall · Lengthwall · (Number of Walls) Additional assumptions are necessary to use the equation: • The building length is approximately equal to the width. • The window to wall ratio is 30%. • The R-Value of the wall is 19. Heat loss rate (walls) = (8 · VZ,000 · 4 ft 2 ) • (1 -0.7) · (65 -(-21)) f t2 . OF 19 BTU/hr BTU Heat loss rate (walls)= 4,535hr Windows Heat loss is greater through windows than through walls. A window-to-wall ratio can be assumed for buildings to help with this calculation. Energy code guidelines typically state a window to wall ratio of 12 to 18%, but the actual ratio can be higher than 30%. 30% was assumed for the calculations. If the window-to-wall ratio is higher than assumed, heat loss will occur more rapidly. Page A5 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 23 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report The efficiency of windows is typically measured by a U-factor, which is the reciprocal of an R­ value. Most windows have a U-factor value between 0.15 and 1.20. Through a window replacement program, a reasonable assumption for the U-factor is 0.35. Ceiling Window Area· Wall · (Tinside -Toutside) Heat loss rate (windows) = Thermal resistance of wall Heat loss rate (windows) = (Vz,ooo · .3 · 8 · 4 ft 2 ) • (65 -(-21)) 1 ft2. OF . 35BTU/hr Heat loss rate (windows) = 12,923 BTU /hr Attic insulation typically has an R-value of 49-60. Assuming R49: Floor Heat loss rate (ceiling) = 2,000ft2 • (65 -(-21)) ft2. OF 49 BTU/hr Heat loss rate (ceiling) = 3,510 BTU /hr Heat loss through the floor can be a complicated calculation, but it typically amounts to 20-30% of the total energy loss in a home. 25% will be used in the total heat loss calculation. Ventilation and Infiltration Ventilation is heat loss that occurs due to the venting of air from the heating system. Infiltration heat loss occurs due to leakages in building construction and the opening and closing of windows and doors. Together they account for approximately 43% of the total heat loss. Total Heat Loss Rate The percentage of heat loss through the floor, ventilation, and infiltration total 68% of the total heat loss. The remaining heat loss, 32%, is lost through the walls, windows, and ceiling. The total heat loss can be obtained through the following calculation: Page A6 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 24 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Heat Loss Rate (walls)+ Heat Loss Rate(windows) + Heat Loss Rate(ceiling) = 32% · Total Heat Loss 4,535BTU /hr+ 12,923BTU /hr+ 3,510BTU /hr Total Heat Loss= 0_32 Total Heat Loss= 65,525BTU /hr PageA7 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 25 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Appendix A.B Heating Capacity and Duty Cycle The heating capacity of the assumed building size can be found based on the region and heat strip recommendations: • The Ketchum Area lies in Region I and a 2000 sq ft building would require a 25kW heat strip. • I kWh of energy is equivalent to 3,412 BTU. The heating capacity of the building is: BTU Heating Capacity= Heat strip size· kWh 3,412BTU Heating Capacity= 25kW · kWh Heating Capacity= 85,300 BTU /hr The duty cycle can then be determined using previous calculations: Page AS Total Heat Loss Duty Cycle Heating System = ------­Heating Capacity 65,525 Duty Cycle Heating System = 85,300 Duty CycleHeating system = 0.77 (77%) Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 26 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Appendix A.C Cold Load Pick Up Through many years of operational experience, Idaho Power has determined that load increases as indicated in Table 1 where: • Outage Duration is given in the format Hours:Minutes. • Percent Normal refers to the percentage of load that can be expected when power is restored compared to the normal load before the outage occurred. As an example, ifthere is twice as much load when power is restored as there was before the outage occurred, Percent Normal is 200%. Table 1 Cold load effect on load duration chart Outage Duration Percent Normal 0:00 100.0% 0:32 162.0% 1:04 200.0% 1 :37 234.0% 2:09 260.0% 2:41 270.0% 3:14 276.0% 3:46 280.0% 4:18 283.0% 4:51 285.0% 5:23 287.0% 5:55 288.0% 6:27 289.0% Example: If a circuit is loaded to 1 OMV A normally and a power outage lasts 7 hours (the coincidence factor has saturated), the load will be 28.9MV A when power is restored, exceeding the 12.5MV A circuit rating. In this example, the load must be restored in at least 4 tiers. After each tier is restored, a period of time, typically around 20 minutes, must pass while the coincidence factor decreases and the load diversity normalizes. Table 2 Load tiers associated with cold load pick up Normal Load Load Added in Previous Restored Tier (Now Normal) Tier 1 4.33 0.00 Tier 2 2.83 4.33 Tier 3 1.85 7.15 Total Circuit Load with Cold Load Effect 12.5 12.5 12.5 Total Normal Circuit Load Restored 4.33 7.15 9.00 Page A9 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 27 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Tier4 1.00 9.00 11 .9 10.00 It would be a minimum of an hour from the time when load was restored to Tier 1 before Tier 4 could be added to the distribution circuit. In that time, the temperature would drop below the minimum temperature threshold of 55°F. Page A10 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 28 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report This page left blank intentionally. Page A11 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 29 of 56 Appendix B Power Usage Distribution Power Usage Distribution Ketchum, Idaho, Area Study Report V.2 An IDACORP Company Ketchum Energy Resilience Team November 2016 © 2016 Idaho Power Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 30 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report TABLE OF CONTENTS Table of Contents ............................................................................................................................. i List of Figures .................................................................................................................................. i List of Appendices ........................................................................................................................... i Power Usage Distribution ................................................................................................................ 1 Background ................................................................................................................................ 1 Method I: Temperature Based Energy Usage ..................................................................... 1 Method 2: Population and Occupancy Based Energy Usage ............................................... 2 Method 3: Energy Usage Based Calculations ..................................................................... .3 Results from the Three Methods ............................................................................................... .4 Application: Heat Load Reduction .................................................................................................. 4 Using the Results ....................................................................................................................... 4 Conclusions ................................................................................................................................ 5 References .................................................................................................................................. 5 Review/Revision History ........................................................................................................... 6 LIST OF FIGURES Figure 1 Hourly Energy Consumption ........................................................................................................ 4 Figure 2 Peak electrical demand before load reduction .............................................................................. 5 Figure 3 Peak electrical demand after load reduction ................................................................................. 5 LIST OF APPENDICES Appendix B.A Method 1 Calculations .................................................................................................................. 7 Page Bi Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 31 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company Appendix B.B Method 2 Calculations ................................................................................................................ 10 Appendix B.C Method 3 Calculations ................................................................................................................ 13 Appendix B.D Application Calculations ............................................................................................................. 14 Page Bii Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 32 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report POWER USAGE DISTRIBUTION This report describes three independent methods that are used to estimate the heating load percentage of the peak load during the winter peak. The purpose of the study is to estimate the potential electric load reduction associated with heating that can be achieved during the winter peak period. Background A multi-stakeholder team, including the City of Ketchum, Sun Valley Company, Idaho Power, and NRG, attended the Rocky Mountain lnstitute's Electricity Innovation Lab (e-Lab) during March of 2015. The team is exploring the feasibility of reducing electrical demand during an emergency event (e.g. loss of transmission) and supplying the electrical demand with local generation. To that end, this report breaks down the electricity demand during extreme winter conditions (peak demand energy) into usage categories. With that breakdown, the benefit of various demand response programs, such as lowering thermostat settings can be estimated. There are different ways to look at electricity usage: energy (the amount of electricity consumed over time) and demand (the amount of electricity being used at a given time). This calculations in this study use both annual electrical energy and electrical peak demand. Annual energy is the total energy used over the period of one year, and does not include data on the distribution of the energy usage throughout the year. Electrical peak demand is based on the time when electricity usage is at its highest. This study is focused on estimating the electricity used to support heating during peak demand. Three independent methods were used to obtain this estimate. Method 1 uses annual energy and temperature data to obtain peak demand and estimates the percent of peak demand used for heating. Method 2 uses average hourly customer energy consumption and area population to estimate the percent of peak demand used for heating. Method 3 analyzes daily data to determine the usage distribution at peak demand and estimates the percent of peak demand used for heating from the results. Once the percent of peak demand used for heating is known, a method can be determined to estimate the percentage of load that can be reduced by lowering thermostats from a comfortable setting to an emergency setting. Method 1: Temperature Based Energy Usage The first method for determining system loading utilizes statistics to determine peak demand from annual energy usage and temperature data. According to the US Energy Information Administration (EIA) Residential Energy Consumption Survey, 1 annual energy usage in the 1 Residential Energy Consumption Survey, US Energy Information Administration. Retrieved July 13, 2015 from http://www.eia.gov/consumption/residential/reports/2009/state briefs/pdf/co.pdf. Page 81 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 33 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company Mountain North region of the United States (which includes Idaho) can be broken down as follows: • 50% heating • 29% appliances • 19% water heating • 2% air conditioning (AC) The EIA survey is for energy in general. This study focuses on electric energy only. The breakdown of loads during the winter peak can be estimated using temperature data. Daily temperature values were used to calculate the number of Heating Degree Days (HDD) or Cooling Degree Days (COD). One HOD (or COD) represents a need to raise (or lower) the inside temperature one degree on that day. Days with a small HOD (under 20) were not considered to have a significant portion of energy dedicated to heating. This resulted in a total of 161 days during the year where heating was considered to be a significant portion of energy usage. Assigning all of the heating energy to those 161 days yields cold weather energy ratios. The base household load (water heaters, appliances, etc.) are considered to be consistent from season to season. Based on the percentages above, the amount of energy used for heating, hot water heaters, appliances and lighting during the cold weather period considered can be calculated. See Appendix A for these calculations. With this method, winter loading was estimated to be: • 70.25% heating • 17.97% appliances • 11.77% water heating • 0% air conditioning (AC) Method 2: Population and Occupancy Based Energy Usage The second method is based upon average hourly customer energy consumption and area population. One consideration to take into account is the large number of cabins and non­ permanent residences. In order to more accurately determine the division of energy usage, the area occupancy must first be determined. The ratio of population in Ketchum and Sun Valley, relative to all cities and towns within Blaine County is 27.4%. Assuming a proportional amount of people reside near towns, but not within city limits, the total permanent residences within the study area can be calculated. Page B2 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 34 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report The average household size in Ketchum is 1.88 people. In Sun Valley it is 1.95, and in Blaine Co. as a whole it is 2.40. Comparing the number of permanent residences, as determined above, to the number of IPC meters in the same area, the number of vacation homes can be determined. The occupancy rate of vacation homes is assumed to be the same as the occupancy rate of hotel rooms and cabins from rental agencies. Adding the number of permanent residents to the number of temporary residents gives an approximation of the occupancy for any given month. The vacant homes are assumed to have base loads of heating and water heating, but no appliance or AC usage. The number of vacant homes is the difference between number ofresidential IPC customers and the number of occupied homes in the area. Along with the number of occupants present, the extreme day kWh usage data can then be used to calculate the amount of load for different times of the year. Comparing the peak day kWh average to a typical summer day, an approximation for heat loading can be made by assuming that loading (other than heat) is the same for both days. The difference between the two energy usages is the amount of heat energy being used, which can be used to find the percentage of energy used for heating. See Appendix B for these calculations. Based on occupancy data, and 2014 power usage statistics, the percentage of electrical demand at peak that is due to heat load is approximately 69.32%. Method 3: Energy Usage Based Calculations Seasonal variations in energy usage and knowledge of the area can give some measure of how energy is used. The area of study is a winter peaking area, with much larger load demand in the colder months. A load duration curve is shown in Figure 1. The Ketchum and Elkhorn energy usage is measured hourly, and then sorted from highest (winter peak load) to lowest. Using the calculations in Method 1, 161 days of the year (44.11%) are considered cold weather, which leaves 55.89% of days as non-heating days. Therefore, the points between 0% and 44.11 % are considered to have occurred during heating periods, and any between 44.11 % and 100% occurred during non-heating periods. -Total MW 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 ~ -- Power Usage Curve i---_ ~---- I Percent 10% 20% 30% 40% 50% 60% 70% 80% 90% 1221 W. Jdllho St. (83702) P.O.Box70 Bo !OBJ707 - Page 83 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 35 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company Figure 1 Hourly Energy Consumption The estimated non-heating load was determined from the load duration curve. This value was summed with other known non-heating loads that occur during winter peak conditions. This totals approximately 23.0 MW. The difference between this sum and the total load was determined to be heating load. A peak demand heating contribution percentage was then calculated. See Appendix C for these calculations. During the periods heating is used, 45.0% of the total energy is used to heat buildings. The heating load represents about 61.4% of the total peak electrical demand. Results from the Three Methods For the Ketchum and Sun Valley area, heating load for homes is approximately 45% of total load during the majority of the winter peak with the percentage of peak electrical demand for heating being: Method 1 Method 2 Method 3 70.25% 69.32% 61.4% All three independently derived methods resulted in similar results. Method 3, which is based on actual measured electrical usage data will be used in the heat load reduction application. APPLICATION: HEAT LOAD REDUCTION Using the Results A method for determining the heat load of a home based on indoor and outdoor temperature was determined in the report "Property Protection Analysis Report" (PPAR).2 This method can be used to determine the percentage of heating load that can be reduced by lowering thermostats from a comfortable setting to an emergency setting. On an extreme winter day, using the assumptions and methodology contained in the PPAR, it takes 20.32 kWh to heat a home to 70 degrees, compared to the 16.97 kWh required to heat the home to 55 degrees. There is a 16.5% reduction in heat load usage. Taking the peak demand in the Ketchum/Sun Valley area, less the non-heating load, we can then calculate the reduced heating load. Using that value, the energy savings, or net reduction can be 2 Property Protection Analysis Report, Jared Hansen. Idaho Power Company. October 2016. Page 84 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 36 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report calculated as well. Reducing the thermostat setting from 70 degrees to 55 degrees can result in a peak electrical load reduction of I 0.1 %. See Appendix D for these calculations. Conclusions It is possible to reduce the demand in the area by a maximum of 10.1 % with a reduction in thermostat settings on an extreme winter day. The peak demand breakdown by percentage contribution before and after energy reduction has been determined: Figure 2 Figure 3 Peak electrical demand before load reduction Peak electrical demand after load reduction References Visitor and Room Night Estimates March 2015, Visit Sun Valley. Provided by Aly Swindly (Aswindly@visitsunvalley.com) Retrieved May 6, 2015. Daily Temperature Values, Weather Underground. Retrieved August 13, 2015 from http://www.wunderground.com/history/airport/KSUN/2014/1/1/CustomHistory.html?day end=31 &monthend= 12&yearend=2014&req_ city=&req_ state=&req_ statename=&reqdb. zip=&reqdb.magic=&reqdb.wmo= Degree Day Data. Velma, Vilnis. Degree Days Direct Limited. Retrieved August 6, 2015 from http://www.vesma.com/ ddd/ddcalcs.htm 1221 W. Idaho St. (83702) P.O. Box70 Boise, IDM707 Page 85 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 37 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company Review/Revision History This document has been approved and revised according to the revision history recorded below. Review Date 08/14/2015 10/27/2016 11/02/2016 Page B6 Revisions Initial issue. Revised for re-issue. Add large customer load to non-heating load. Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 38 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Appendix B.A Method 1 Calculations Temperature Based Energy Usage Calculation The first method for determining system loading utilizes statistics to determine peak demand from annual energy usage and temperature data. According to the US Energy Information Administration (EIA) Residential Energy Consumption Survey, 3 annual energy usage in the Mountain North region of the United States (which includes Idaho) can be broken down as follows: • 50% heating • 29% appliances • 19% water heating • 2% air conditioning (AC) The ElA survey is for energy in general. This study focuses on electric energy only. The following calculations determine the ratio based on whole year energy use then calculates a factor to convert them to HDD seasonal ratios. Daily temperature values were used to calculate the number of Heating Degree Days (HDD) or Cooling Degree Days (CDD).4 One HDD (or COD) represents a need to raise (or lower) the inside temperature one degree on that day. Days with a small HDD (under 20) were not considered to have a significant portion of energy dedicated to heating. This resulted in a total of 161 days during the year where heating was considered to be a significant portion of energy usage. Assigning all of the heating energy to those 161 days yields cold weather energy ratios. 3 Residential Energy Consumption Survey, US Energy Information Administration. Retrieved July 13, 2015 from http://www. ei a. gov/ cons um pti on/resi dential/reports/2009 /state briefs/pd f /co. pdf. 4 Degree Day Data. Velma, Vilnis. Degree Days Direct Limited. Retrieved August 6, 2015 from http://www. vesma.corn/ddd/ddcalcs.htm. 1211 W. Idaho St. (837Q2) P.0 .8ox70 Bo , 1083707 Page 87 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 39 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company Table 1 Acronyms used in temperature based energy usage: daily heating calculations Variable Name Meaning HOD Heating degree days SWR Seasonal water heater energy usage ratio SAR Seasonal appliances energy usage ratio YWR Yearly water heater energy usage ratio YAR Yearly appliance energy usage ratio NWP New water heating energy usage percentage ratio NAP New appliance energy usage percentage ratio STR Scaling factor to convert yearly energy usage to cold weather energy usage HR Heating Energy Ratio NHR New adjusted heat energy ratio The base household load (water heaters, appliances, etc.) are considered to be consistent from season to season. Based on the percentages above, the amount of energy used by hot water heaters during the cold weather period considered was calculated. HDD SWR = YWR * ----365 days 161 SW R = 19% * -= 8 38% 365 . The amount of energy used by appliances and lighting was also calculated. HDD SAR= YAR * ----365 days 161 SAR = 29% * 365 = 12.79% A percentage of energy used during the cold weather period relative to the year was calculated to derive a scaling factor. Page 88 STR = SWR +SAR+ HR STR = 8.38% + 12.79% + 50% = 71.17% = 0.7117 SWR NWP=-­STR Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 40 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report 1 NWP = 8.38%*--= 11.77% . 7117 SAR NAP=-STR 1 NAP= 12.79% * -11 = 17.97% .7 7 HR NHR = STR 1 NHR = 50%--= 70.25% . 7117 With this method, winter loading was estimated to be 70.25% heating, 17.97% appliances, and 11. 77% water heating. 1221 W. Idaho St (83702} P.O. 8ox7-0 Boise, ID 83707 Page 89 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 41 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Appendix B.B Method 2 Calculations Occupancy Calculation Idaho Power Company The ratio of population in Ketchum and Sun Valley, relative to all cities and towns within Blaine County is 27.4%. Assuming a proportional amount of people reside near towns, but not within city limits, the total permanent residences within the service area can be calculated. Table 2 Acronyms used for occupancy calculations Variable Name Meaning PPT Percentage of population in Ketchum and Sun Valley KCHM The population of the town Ketchum SV The population of the town of Sun Valley Towns The population of all towns in Blaine County NPT Total population near, but not in, Ketchum or Sun Valley TR Temporary residences (I.E. Rentals, vacation homes) PRP Permanent resident population in or near Ketchum or Sun Valley IPC Idaho Power customer points NPOR Number of permanently occupied residences CRO Current residences occupied MOR Monthly Occupancy Rate VH Vacant homes or residences EPVH Number of vacant homes at energy peak EPOR Energy peak occupancy rate ERKWH Extreme year residential Kilowatt hours (kWh) ESCKWH Extreme year small commercial customer kWh ELCKWH Extreme year large commercial customer kWh EVH Energy use in vacant homes (not appliances, lighting or AC) Page B10 KCHM+SV PPT=---­LTowns 2706 + 1408 PPT = 15019 = 27·39% NPT = (PPT) * (Blaine Co Pop -L Towns) Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 42 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report NPT = (27.39%) * ( 21376-15019) = 1741 In Ketchum, the average household size is 1.88, in Sun Valley, 1.95, and in Blaine Co. as a whole, 2.40. NPOR = NPTj + KCHMj + sv; = 2887 2.40 1.88 1.95 Comparing the number of permanent residences to number of IPC meters in the same area, the number of vacation homes can be determined. TR = /PC -NPOR = 7575 -2887 = 4688 The occupancy rate of vacation homes is assumed to be the same as the occupancy rate of hotel rooms and cabins from rental agencies. Adding the number of permanent residents to the number of temporary residents gives an approximation of the occupancy for any given month. CRO = NPOR +(MOR* TR) CROUanuary 2014) = 2887 + (42% * 4688) = 4856 The vacant homes are assumed to have base loads of heating and water heating, but no appliance or AC usage. The number of vacant homes is the difference between number ofresidential IPC customers and the number of occupied homes in the area. VH = /PC -CRO = 7575 -4856 = 2719 Loading Calculations Based on Occupancy Along with the number of occupants present, the extreme day kWh usage data can then be used to calculate the amount of load for different times of the year. Comparing the peak day kWh average to a typical summer day, an approximation for heat loading can be made by assuming that loading (other than heat) is the same for both days. For the peak day, the calculation is as follows: Peak Load= ERKWH * [EPOR + EVH% * EPVH] + ESCKWH * (#Small Customers)+ ELCKWH * (Large Customers) Peak Load = (3.92kWh) * [5372 + 83% * 2203] + (l.99kWh * 767) + (13.67kWh * 838) = Peak Load= 41207.71 On a normal summer day, where there would be no heating or AC load, the calculation is: 1221 W, Idaho St. (83702) P.O. llox70 so· , ID 83707 Page B11 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 43 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company Loading= ERKWH * CRO ( VH ) (CRO / + (EVH %) * VHj / EPOR) EPVH + ESCKWH *(#Small Customers)+ ELCKWH * (#Large Customers) [ 4856 ( 2719 )] Loading = (. 91 kWh)* 4856 + 38% * 2719 + 0.65 * 767 + 7.75 * 838 /5372 /2203 = 12643.37 kWh The difference between the two energy usages is the amount of heat energy being used, which can be used to find the percentage of energy used for heating: Peak Usage Day -Similar Day Heat energy=-----------­Peak Usage Day 41207.71 -12643.37 Heat Energy Percentage = 41207_71 = 69.32% Based on occupancy data, and 2014 power usage statistics, the percentage of demand at peak that is due to heat load is 69.32%. Page B12 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 44 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Appendix B.C Method 3 Calculations Energy Usage Based Calculations The estimated non-heating load was determined from the load duration curve. This value was summed with other known non-heating loads that occur during winter peak conditions. The difference between this sum and the total load was determined to be heating load. A heating contribution percentage was then calculated. Heating Load Percentage Total Energy during Heating -Total Energy of non heating loads Total Energy during Heating 122850.4 -(67620.0) Cold weather period heating load= 122850_4 = 45.0% Peak Demand heating contribution Peak Demand during Heating -(sum of non heating loads during Peak Demand) Peak Demand during Heating 59.6-23.0 Peak Demand heating contribution = 59_6 = 61.4% During the periods heating is used, approximately 45.0% of the total energy is used to heat buildings. The heating load is 61.4% of the peak demand. U21 W, Idaho St, (837Q2) P.O. Box70 so· , 10 83707 Page B 13 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 45 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company Appendix B.D Application Calculations Heat Load Reduction On an extreme winter day, the PPAR determined that it takes 20.32 kWh to heat an average home to 70 degrees, compared to the 16.97 kWh required to heat the same home to 55 degrees. There is a 16.5% reduction in heat load usage. 20.32 kWh -16.97 kWh Reduction = = 16.5% 20.32 kwH Taking the peak demand in the Ketchum/Sun Valley area, less the summed non-heating load, we can then calculate the reduced heating load. Using that value, the energy savings, or net reduction can be calculated as well. Heat Load = Peak Load* Heating Percentage Heat Load = 59.6 MW* 61.4% = 36.6 MW Other Loads= Peak Load -Heat Load Other Loads = 59.6 MW -36.6 MW = 23.0 MW Reduced Heat Load= Heat Load* (1 -Reduction) Reduced Heat Load= 36.6 * (1 -16.5%) = 36.6 * ( 83.5%) = 30.6 MW Reduced Peak Load= Reduced Heat Load+ Other Loads= 30.6MW + 23.0 MW= 53.6 MW Load Reduction= Heat Load* Reduction= 36.6 MW* 16.5% = 6.0 MW Load Reduction Total Peak Load Reduction Percentage= k L d Pea oa Page 814 6.0MW ----= 10.1% 59.6MW Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 46 of 56 Ano co 'PCom v Appendix C City of Ketchum Solar Generation Assessment August 11 , 2015 ~---- Ketchum e-Lab Team Members Subject: City of Ketchum Solar Generation Assessment Dear e-Lab Team Member: I directed members of the Idaho Power Customer Operations Planning staff to undertake a high-level assessment of the photovoltaic resource within the city limits of Ketchum, Idaho. In order to estimate this solar photovoltaic (PV) resource capacity, Idaho Power developed a sampling technique to approximate the amount of residential and commercial roof area suitable for photovoltaic installation. This sampling is based on the existing land use which is comprised of 52.87% residential, 7.85% commercial and 39.28% undeveloped area. A sample area of 0.28 square miles, which matched the city land use, was selected as shown in Figure 1. The roof area within the area was computed. This available area was reduced by roof geometry, near shading, orientation, and other considerations following guidelines outlined by the National Renewable Energy Laboratory (NREL) (http://www.nrel.gov/docs/fyl4osti/60593.pdf) to determine the roof area suitable for PV installation. This NREL document identifies 25% of residential and 60% of commercial roof area is suitable for PV installation. The area was further reduced by 50% to match the average net-metering installation in the area. This resultant roof area was scaled to the area of the Ketchum City limits and produced 112,578 m2 of PV suitable roof area. Figure 1: Sample Area 1221 W, ldaho St. (S37Q2) P.O. Box70 eo· , 10 B3707 Page C1 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 47 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Idaho Power Company An estimate of the daily energy produced by the suitable roof area was calculated using the solar intensity data from the NREL PVWatts program (http://pvwatts.nrel.govD. Standard efficiencies for the PV panels and inverter were applied, 16% and 95.6% respectively. During December and January, there are only eight hours of sun light in the Ketchum area which produces an average daily solar radiation of2.54 kWh/m2 and 1.64 kWh/m2, respectively, as reported in the typical meteorological year (TMY3) data from NREL for the Hailey, lD area. This solar irradiance, estimated roof area and the efficiencies result in December and January daily generation ranging from 10- 30 MWh. The city's daily load during this time period ranges from 300-790 MWh. Figure 2 provides a winter example of the PVWatts data for December 23. The average solar irradiance for that day is 1.27 kWh/m2• This irradiance coupled with estimated roof PV coverage would produce 21.64 MWh of PV Generation. In comparison, the December 23, 2014 Ketchum city customer consumption was 519.75 MWh. 40 35 30 25 3 20 ~ 15 10 5 0 12/23/2014 Load and Estimated PV Generation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour • Load 12/23/14 • Estimated PV Generation Figure 2: Load and Estimated PV Generation Figure 3 provides a summer example of the PVWatts data for June 21 51• The average solar irradiance for that day is 7.71 kWh/m2• This irradiance coupled with estimated roof PV coverage would produce 131.23 MWh of PV Generation. On this day in 2014, the Ketchum city customer consumption was 187.35 MWh. Page C2 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 48 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report 40 35 30 25 S: 20 :ii: 15 10 5 0 06/21/2014 Load and Estimated PV Generation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour • Load 06/21/14 • Estimated PV Generation Figure 3: 6/21/2014 Load and Estimated PV Generation In conclusion, the estimated roof PV generation will not produce sufficient energy to meet the electrical consumption by customers within the city of Ketchum. The winter generation is not able to support the property protection energy level and the summer output cannot meet the summer energy requirement. Additional resources will be required to meet the service levels above critical life safety (police, fire and hospital). You are welcome to contact me at 208-388-2701 or dangell@idahopower if you have questions or wish to discuss this analysis. Sincerely, David M Angell Manager, Customer Operations Planning 1221 W. ldclho St. (83702) P.O.Sox70 80154, 10 83707 Page C3 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 49 of 56 Northern Wood River Valley Local Backup Electrical Supply Report This page left blank intentionally. Page C4 Idaho Power Company Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 50 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Appendix D Microgrid Study Results Diesel Generator results The results for a one-day transmission line outage with diesel engine generators providing backup power are shown in Tables 1 through 5. Table 1 Energy Provided Component Production (kWh/yr) Fraction(%) Generator Grid Purchases Total 1,150,000 223,611,531 224,761,540 Table 2 Diesel Generator Parameters Quantity Value Hours of operation 24 Number of starts 1 Fixed generation cost 4,677 Marginal generation cost 0.13 Electrical production 1,150,000 Mean electrical output 51,095 Min. electrical output 43,938 Max electrical output 58,506 Fuel consumption 302,597 Specific Juel consumption 0.26 Fuel energy input 2,977,557 Mean electrical efficiency 39 1 99 100 Units Hrs/yr Starts/yr $/hr $/kWh kWh/yr kW kW kW L/yr L/kWh kWh/yr % Page 01 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 51 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Table 3 Diesel Generator Emissions Pollutant Emissions Units Carbon dioxide 142,119,326 Kg/yr Carbon monoxide 1,967 Kg/yr Unburned hydrocarbons 218 Kg/yr Particulate matter 148 Kg/yr Sulfur dioxide 614,296 Kg/yr Nitrogen oxides 317,190 Kg/yr Table 4 Diesel Generator Capital cost sensitivity analysis Capital Cost Total Capital Cost ($/kW) (Millions of dollars) $500 $33,400,000 $750 $50,100,000 $1,000 $66,800,000 $1,250 $83,500,000 $1,500 $100,200,000 Table 5 Diesel Fuel Cost Sensitivity Analysis Fuel price Total fuel cost ($/gal) $2.00 $159,800 $2.25 $179,700 $2.50 $199,700 $2.75 $219,700 $3.00 $239,600 Table 5 was computed with a I-day outage during the peak months. Page D2 Idaho Power Company Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 52 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Gas Turbine Results The results for a one-day transmission line outage with gas combustion turbines providing backup power are shown in tables 6 to I 0. Table 6 Energy Provided by Gas Turbine Component Production (kWh/yr) Generator 1,150,000 Grid Purchases 223,611,531 Total 224,761,540 Table 7 Gas Turbine Parameters Quantity Value Hours of operation 24 Number of starts 1 Fixed generation cost 2,802 Marginal generation 0.02 cost Electrical production 1,150,000 Mean electrical output 51,095 Min. electrical output 43,938 Max electrical output 58,506 Fuel consumption 333,503 Specific fuel 0.29 consumption Fuel energy input 3,293,338 Mean electrical 35 efficiency Fraction (%) 1 99 100 Units Hrs/yr Starts/yr $/hr $/kWh kWh/yr kW kW kW m3/yr m3/kWh kWh/yr % Page D3 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 53 of 56 Northern Wood River Valley Local Backup Electrical Supply Report Table 8 Gas Turbine Emissions Pollutant Emissions Units Carbon dioxide 141,968,690 Kg/yr Carbon monoxide 667 Kg/yr Unburned 0 Kg/yr hydrocarbons Particulate matter 0 Kg/yr Sulfur dioxide 614,434 Kg/yr Nitrogen oxides 300,056 Kg/yr Table 9 Gas Turbine Capital Cost Sensitivity Analysis Capital Cost Total Capital Cost ($/kW) $750 $48,800,000 $1,125 $73,100,000 $1,500 $97,500,000 $1,875 $121,900,000 $2,250 $146,300,000 Table 10 Natural Gas Cost Sensitivity Analysis Fuel price Total fuel cost [$/m3) $0.075 $25,000 $0.10 $33,400 $0.124 $41,400 $0.15 $50,000 $0.175 $58,400 Page D4 Idaho Power Company Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 54 of 56 Idaho Power Company Northern Wood River Valley Local Backup Electrical Supply Report Battery System Results The sensitivity analysis to the price of the battery for a one-day transmission line outage with the use of PY plus battery to provide backup power is shown in table 11. Table 11 Battery Cost Sensitivity Analysis Battery Price ($/kWh) Total Cost $372 $45,600,000 $486 $595,000,000 $516 $632,000,000 $636 $779,000,000 $1,115 $1,367,000,000 $1,236 $1,515,000,000 Page D5 Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 55 of 56 Northern Wood River Valley Local Backup Electrical Supply Report This page left blank intentionally. Page D6 Idaho Power Company Exhibit No. 3 Case No. IPC-E-16-28 D. Angell, IPC Page 56 of 56 I . BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-16-28 IDAHO POWER COMPANY ANGELL~ DI TESTIMONY EXHIBIT NO. 4 Hailey to Ketchum Overhead Transmission Line Option D Substation Downtown Ketchum Option Dollar Mountain Option -Existing Transmission Lines Common Route City Boundaries N A Exhibit No. 4 Case No. IPC-E-16-28 D. Angell, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-16-28 IDAHO POWER COMPANY ANGELL, DI TESTIMONY EXHIBIT NO. 5 Hailey to Ketchum Underground Transmission Line Option Transition Points • • , Proposed Overhead Transmission Line • • , Proposed Underground Transmission Line 0 Substations N A 650 1,300 2,600 Exhibit No. 5 Case No. IPC-E-16-28 D. Angell, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-16-28 IDAHO POWER COMPANY ANGELL, DI TESTIMONY EXHIBIT NO. 6 Hailey to Ketchum Primary OH Distribution Line Option Overhead Distribution Line Underground Line D New Substation N A 625 2,500 Exhibit No. 6 Case No. IPC-E-16-28 D. Angell, IPC Page 1 of 1