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HomeMy WebLinkAbout20170623Angell Rebuttal .pdf@ An IDACORP Companv :tri i l:::r ':'. FIl 3: l-lg DONOVAN E. WALKER Lead Counsel dwalker@idahopower.com June 23,2017 VIA HAND DELIVERY Diane M. Hanian, Secretary Idaho Public Utilities Commission 472 West Washington Street Boise, ldaho 83702 Case No. IPC-E-16-28 Certificate of Public Convenience and Necessity for Wood River Valley ldaho Power Company's Rebuttal Testimony Dear Ms. Hanian Enclosed for filing in the above matter are an original and eight (8) copies each of the Rebuttal Testimony of N. Vern Porter and the Rebuttal Testimony of David M. Angell. One copy of each of the aforementioned testimonies has been designated as the "Reporter's Copy." ln addition, a disk containing Word versions of the testimonies is enclosed for the Reporter. Very truly yours, i:i ,tji; i': I 1/ L: [i 3Iffi* gtddlQ" Re Donovan E. Walker DEW:csb Enclosures 1221 W. ldaho St. (83702) P.O. Box 70 Boise, lD 83707 firC I IVED tiil ,iti;i ?3 P*11 3: 50 BEFORE THE TDAHO PUBLIC UT]LITIES COMMTSSION I Iil!;'!ti{\:11riitr ir)i:-Lii IN THE MATTER OF THE APPLICATION OE IDAHO POWER COMPANY EOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE WOOD RTVER VALLEY IDAHO POWER COMPANY REBUTTAL TESTIMONY OF DAVID M. ANGELL CASE NO. IPC_E-L6_28 1 2 3 4 5 6 1 8 9 O. Please state your name and business address. A. My name is David Ange11. My bus j-ness address is 7227 West Idaho Street, Boise, Idaho 83102. O. By whom are you employed and in what capacity? A. I am employed by Idaho Power Company ("Idaho Power" or "Company") as the Transmj-ssion and Distribution Planning Manager. O. What j-s the purpose of your rebuttaf testimony in this proceeding? A. Idaho Public Utilities Commissi-on Staff ("Staff") wltness, Michael Morrison, and Idaho Sj-erra Club witness, Michae1 Heckler, both conclude that a redundant transmission l-ine in the North Valley is not needed to meet the Company's obligation to reliably serve customers. The purpose of my rebuttal testimony is to describe how Idaho Power plans, designs, builds, and operates its transmission and distribution system incorporating concepts and requirements for redundancy in order to meet its obligation to reliably serve retail- customers. I will- al-so respond to several- items raised by Mr. Heckl-er in his direct testimony. I. TRJATISMISSION A}ID DISTRIBI'':TION PI,AI{NING AI{D DESIGT{ STA}.iIDARDS O How does the Company plan the transmission and 25 distribution system for retail customer service? 10 11 \2 13 t4 15 76 t1 18 19 20 2L 22 23 24 ANGELL, REB Idaho Power 1 Company 26 I 2 3 4 5 6 1 8 9 A. Transmissi-on and distribution planning is focused on supplying sufficient capacity in a rel-iabl-e and cost-effective manner. The capacity of the system is sized in a similar way as transportation systems, such that there are large capacity components that provide transport for generation to J-arge geographical areas, where it then connects to a network of smal-l-er capacity components, ultimately delivering energy to the end-use retail- customer. An example of this is the high capacity 230, 345, and 500 kil-ovolt (*kV") transmission system that connects the generation source to hub substations located near Jerome, Eden, and Hagerman in the Magic VaIIey. The voltage is reduced through transformation at each of these substati-ons to 138 kV. The 138 kV transmission lines distribute power to distribution substations within the Magic and Wood River Valleys. Distribution substations further reduce the voltage to 72.47 and 34 .5 kV for distribution within l-ocal communities to the end-use customer. The capacity requirements are determined through historical customer peak demand and projections 10 11 72 13 L4 15 16 77 18 19 20 21 22 ofanalysis of future demand, taking reductions and into account both energy 23 ef f J-ciency growth in industrial, commercial, Historical demand is captured24 and resi-dential customers. 25 and adjusted to account for extreme temperature events to ANGELL, REB Idaho Power 2 Company 1 2 3 4 5 6 1 8 9 ensure sufficient capacity i-n the system to meet the peak demand during these infrequent weather conditions. O. When are capacity additions made to the transmission and distrj-bution system? A. The Company's planning engineers identify capacity additions five years j-n advance of the forecasted need. Demand and customer additions are closely tracked during this period to optimize the timing of the capacity addition. O. Does the Company involve in the planning process? A. As described in my direct the local community10 11 L2 13 1,4 15 76 t7 18 79 20 2l 22 Company invofves the local community in l-ocation of the facilities required to testimony, the planning the meet future 23 24 el-ectrical demand. Electrlc plans are developed wlth the communities and are publicly available on the Company's website. The e1ectric plans identify specific transmission and substation projects along with their anticipated in- service date. O. How is transmj-ssion, distribution, and substation rel-iability planned and designed for in the system? A. Reliability is consj-dered when planning the capacity additions, and is based upon fundamental concepts of redundancy and not having all of your eggs in one ANGELL, REB Idaho Power 3 Company 25 1 2 3 4 5 6 I I Y basket. The system is designed in such a way that it can and does evolve and grow as it expands with the growth and change of the customers and load it serves. Rel-iability is greatly improved and enhanced by the abiJ-ity to limit outages to smal-l-er segments of customer populations and by having more than one source of energy available that can take over when the primary source is interrupted. The Company has establ-ished design standards, or criteria for capacity additions to the system and the design of necessary upgrades or additions to transmission and distribution lines, and substations that enhance reliability and j-ncorporate these concepts of adequate and reliable service balanced with cost. A new substation is typically energized with a single transmj-ssion line, single transformer, and two or three distribution circuits that could serve up to 30 10 11 L2 13 L4 15 L6 L7 megawatts circuit is ("MW") of customer 1oad. Each distribution 1B configured to serve up to 10 MW of customer load 19 to limit the number of customers impacted by a circuit 20 outage. When feasibl-e, tie switches are installed between 2l circuits to allow customer load transfers to other circuits 22 when an outage occurs on the primary circuit. As l-oad 23 grows for a substation that is energized with a single 24 transmission line, two things happen: eventually, a 25 capacity addition will be required to serve growing load; ANGELL, REB Idaho Power 4 Company l- and the risk and consequences associated with service dj-sruption and potential long-term outage increase. Once peak l-oad at a single substation is projected to exceed 40 MW, Idaho Power planning standards require a second transmission source and transformer to provide the 2 3 4 5 6 7 B 9 and service to customers. give other examples of how the principles of mitigating exposure a part of how Idaho Power's system is and operated? The Company has selected 44.8 MVA as the of the substation.As stated, the MW from a single engineers forecast they propose the to serve up to 40 necessary o referenced reliability Can you fundamental 10 and redundancy are planned, designed, A. Yes. load service l-evel- Company standard is transmission l-ine.the planning exceed 40 MW, 11 L2 largest distribution substation transformer to be 13 instal-led. A maximum of four distribution circuits are 14 connected to a transformer. This configuration limits the 15 number and amount of customer l-oad impacted by a 16 transformer outage to 40 MW. Additionally, the Company 71 also limits distribution substations to 100 MW of load 18 service before a new substation j-s required. 79 O. What is the transmisslon configuration for a 20 distribution substation? 2L A. The transmission configuration depends on the 22 23 24 Once ANGELL, REB Idaho Power 5 Company 25 the substation l-oad wil-l 1 addition of a second transmission line line will connect into the transmission O. How does the North VaIJ-ey Company's transmission and distribution 2 3 4 5 6 1 I 9 and specify how that network. fit within the planning criteria? A As stated in my direct testimony, Idaho Power generally source and projected to exceed planning and design addltions of second initiates and constructs a second transmission transformer when a substation peak load is 10 40 MW pursuant to prudent utility criteria. Recent examples include the transmission l-ines and transformers at substation south of Boise and the McCal1 McCaIl, Idaho. Idaho Power is also moving a second transmission project in the EagJ-e and 11 t2 the Victory substation an 13 forward with L4 15 16 l1 1B t9 20 2L 22 23 24 Star area, which peaks at 7t MV[. The area north of Hailey, served by the Ketchum and Elkhorn substations, represents the second largest customer base in Idaho Power's service territory served by only a single transmission line. The Ketchum and Elkhorn substations' peak load of about 60 MW, coupled with the winter tourism population in the North Val1ey and the mountainous terrain with difficult access to the existing line, strongly supports the need for a second transmissi-on line. O. Are there other simil-arl-y situated areas of customers as that of the North Valley served by a redundant ANGELL, REB Idaho Power 6 Company 25 transmission source? 1 2 3 4 5 6 1 I 9 A. Yes. The proposed for the North Va11ey is similar transmission configuration to that serving McCaIl and the north ltiood RiverSalmon, two remote ValJ-ey. The McCall- transmission lines communlties like 11 substation. There are many serving substations in and Pocatello service L2 that matches or exceeds the 13 all cases, the Company plans 74 a second transmission circuit 15 L6 \7 18 19 20 The Salmon area substations are served by two 69 kV transmi-ssion l-ines that are sourced from the Agency Creek substation is served by two 138 kV that connect to the Starkey substation. short 138 kV transmission lines the Treasure Va1Iey, Magic Va11ey, areas with reliability performance Wood River-Ketchum line. In 10 substation peak demand is forecasted to exceed 40 MW to all-ow for planned and unplanned outages of transmission and substation facilities. O. Is it typical for util-ities to establish redundant transmi-ssion criteria for distribution substations ? Yes. Each utility establ-ishesA the system when any for the addi-tion of planning configurations 21 22 criteria that include redundant transmission 23 for distribution substations. The three Northwest 24 investor-owned util-ities that serve customers in Idaho al-l- 25 have reliability criteria regarding redundant service that ANGELL, REB Tdaho Power 1 Company 1 2 3 4 5 6 7 8 9 is consistent with Idaho Power's criteri-a. Idaho Power initiates and constructs a second transmrssron source and transformer when for peak l-oad is projected to exceed 40 MW. a second transmission l-ine at a threshol-dAvista plans of 75 MW, but 10 Mountain Power is currentl-y reducing that threshold. Rocky does not have a specific l-oad l-evel- trigger but evafuates peak l-oad with outage probability and duration, where the outage duration is based on an estimated repair time considering terrain and access difficutty. Northwestern Energy adds a second transmission Ii-ne when the substation demand exceeds 20 MW. O. May utilities establ-ish their own criteria for transmiss j-on reliabil-ity? A. The Eederal- Energy Regulatory Commission (*FERC") has jurisdiction over the reliability of the bulk- power system. Utiliti-es must design, construct, and operate their systems consistent with FERC requirements, and thus util-ities establish criteria designed to meet the FERC reliability requirements. Utility criteria may vary, as referenced above, but is bounded by the standards establj-shed by EERC. FERC regulation of reliability standards was established in the Energy Policy Act of 2005 f ol-Iowing the 2003 eastern interconnection blackout. The 2005 Act required FERC to certify an Electric ReJ-iability Organization (*ERO"), whose purpose is to establish and ANGELL, REB Idaho Power 8 Company 11 t2 13 L4 15 L6 t7 18 79 20 2t 22 23 24 25 1 2 3 4 5 6 7 8 9 enforce reliability standards. FERC certified the North American El-ectric Reliability Corporation ("NERC") as the ERO. O. Are there standards for planning the transmission system with respect to transmj-ssion l-ine outages ? A. Yes. The NERC Transmiss j-on System Planning Performance Requirements Rel-iabil-ity Standard, approved by FERC on October 17, 20L3, addresses how transmission planning engineers must plan the bul-k-power system so that it meets performance requirements over a broad spectrum of system operating conditions and fol-lowing a wide range of probable transmission facility outages. One objective of the standard is for the transmission planning engineers to design the system to minimize the likel-ihood and magnitude of firm transmission service interruptions, or non- consequential load l-oss, following a facility outage due to a short circuit within a line, transformer t or generator. O. Is there a limit to the planned amount of non- consequential outage due to or generator? A. l-oad loss allowed for a single facility transformer,a short circuit within a line, Yes. NERC has established reliability l-oss for the loss loss of two 24 standards for the non-consequential load 25 of a single transmission line and for the 10 11 L2 13 t4 15 76 t7 18 79 20 2L 22 23 ANGELL, REB Idaho Power 9 Company 1 2 3 4 5 6 7 8 9 transmission l-ines. The standards account for the probability of an event. transmission lines at the probabllity than the l-oss NERC reliability standards Because the loss of two same time has a much lower of one transmission line, the allow for the loss a single of 75 MW. unl-imited non- 10 consequential load l-oss l-ines. The upper l-imit non-consequential load non-consequential l-oad upon upper bound to the single facility outage. for for l-oss loss establ-ishes amount of load of two transmission transmi-ssion line is a The 75 MW limit to a national-ly agreed to be at risk for a 11 12 the customer l-oad served 13 t4 15 t6 The Company's approach of limiting by a single transformer to 40 MW, conversion of substations from servlce, as a exceed this along radial with planning for to network connectivity with redundant prudent utility practice desj-gned to meet and national standard. tl O. Staff witness Michael Morrison ultimately 18 concludes that there is no demonstrated need for a 19 redundant l-ine, essentially arguing that the existlng 20 radial l-ine is sufficiently rel-iable on its own and that it 27 is too expensive to provide redundant facllities. fs this 22 consistent with prudent utility practices of system design 23 and the leve1 of reliabil-ity expected of the Company in its 24 provision of essentj-al servj-ce to the public? 25 ANGELL, REB Idaho Power 10 Company 1 2 3 4 5 6 1 I 9 A. No, Idaho Power designs its system to meet certaj-n reliabil-ity and service quality standards that are consistent with other utilities as well as national standards. When these criteria for upgrades or additions are met, al-l- of which are met by the current situation in the North Valley, redundant service is provided to reduce the rj-sk, cost, and potential damage to the public from interruption of service or long-term outage. The North Val1ey area has grown to such a size, is relatively remote with difficult to access facilities, and has a substantial seasonal resort economy that the risk of harm from a 10 11 72 13 L4 potential effects of conditions long-term outage and the potential catastrophic a long-term outage during extreme winter when North Va11ey el-ectric load peaks is too served by a singJ-e, radial feed-no matter how15 great to be L6 rel-iabl-e that single transmissj-on line may have been in the L7 past. l-8 The redundant transmissi-on source is the most cost- 1,9 effective means of providing the required reliability 20 improvements and mitigation of potentially damaglng outages 2l in the North Valley. Idaho Power eval-uated severaf other 22 sources of alternative or addj-tional generation for the 23 North Va11ey, which I will- address next j-n my response to 24 severa] of Mr. Heckler's issues. 25 ANGELL, REB 11 fdaho Power Company 1 2 3 4 5 6 1 8 9 o II. RESPONSE TO IDAIIO SIERRA CLI'B Idaho Sj-erra Club's witness, Mr. Michael- advocates that other sol-utions besides that of a second transmission line would be better and Heckler, building provide 10 more cost-effective reliability solutj-ons. Heckler Direct, p. 2. He states that the Company has errors and misrepresentations in the terminol-ogy used with regard to "reliability" "redundancy" and "proximity" stating that "redundancy is not the need itself. Reliable service is the need." Heckl-er Direct, p. 5. fs the proposed redundant transmission line r or redundancy, the need in and of itself as Mr. Heckler has portrayed? A. Not exactly. The need j-s to provide adequate and reliabl-e electrical service in a cost-effecti-ve manner to the public, includlng essential services. As stated, a fundamental design principle in the electric utility industry is to meet reliability through providing redundancy and spreading exposure across multiple smal-l-er facilities rather than being completely reliant on a single facility. In my direct testj-mony on page 2, l-ine 13, I address the need as the "obligation to provide adequate and reliable service" and I then further clarify the need on lines 20 and 21 as "j-ncreased reliability provided by a redundant source of energy. " These statements differentiate that the need is for redundancy of energy ANGELL, REB fdaho Power L2 Company 11 t2 t-3 74 15 !6 L1 18 19 20 27 22 23 24 25 1 supply in order to provide reliab1e service. The proposed 2 transmission l-ine is not requj-red to address a forecasted 3 peak demand beyond the capacj-ty of the existing 4 transmission line. However, Mr. Heckler has identified one 5 of the larger questions in this case that the ldaho Public 6 Utilities Commission must determine: Does the Company's 7 obligation to provide reliable service to the public in the B North Valley require a second transmission line as a source 9 of energy j-n order to mitigate the risk posed by an 10 extended outage of the current radial service to public 11 safety, essential servj-ces, businesses, and property 72 damage. This issue is discussed further in fdaho Power's 13 rebuttal testimony of N. Vern Porter. No matter how good 14 the reliability is of the existing l-ine, the North Valley 15 remains exposed to the risks associated with long-term 16 outage to that single l-j-ne unl-ess and until a redundant L1 sourcer ot second line, is avail-able. NERC reliability 18 standards embody the concept of redundant service and 19 el-imination of radial- service as required reliability 20 improvements. 27 The Company has an obligation to provide service 22 that meets customers' demand as it may vary throughout each 23 day and season. As stated above, the Company also plans 24 for increasing reliability of service when the aggregate 25 peak demand exceeds 40 MW. The Company has evaluated ANGELL, REB Idaho Power 13 Company 1 multiple options to supply the peak demand as provided in 2 my direct testimony, and a second transmission source is 3 the most cost-effectlve reliability solution for the risk 4 exposure in the North Va11ey. 5 Q. Mr. Heckl-er then addresses "redundancy" and 6 "proximity" concluding that "the proposed redundant l-ine 7 will not provide an independent source of energy as the 8 Company purports." Is this correct? 9 A. No. The "proximity" issue raised by Mr. 10 Heckler refers to my direct testi-mony on page 29 where I 11 describe a double circuit option on a common tower 72 configuration from the El-khorn substation to the Ketchum 13 substation across the top of Dol-Iar Mountain. Mr. Heckler 74 then attempts to equate this double circuit/common tower 15 configuration with the proposed l-ine route where, in his 16 words: T1 18 19 20 27 22 23 24 25 26 21 28 The Company's proposed route is not free from the stated problem of having two lines being in close proximity of each other. The proposed line would cross the existing WDRI- KCHM line within a quarter mil-e of where both lines l-eave their coflrmon source at the WDRI substation. Moreover, there are never more than a few hundred yards separating thetwo lines for the first few mil-es of their routes north of WDRI. Heckler Direct, p. 1. First of all, it j-s not true that the proposed line and the existing line cross. They do not cross, nor do 29 ANGELL, REB Idaho Power 1-4 Company 30 1 they share common towers. Secondly, "proximity" 1s not 2 prohibited nor addressed by NERC reliability standards 3 beyond a common tower configuration. The double circuit 4 option on a common tower configuration from the Elkhorn 5 substation to the Ketchum substation across the top of 6 DoIlar Mountain referenced in my testimony was eliminated 7 based on transmission planning consistent with NERC 8 standards TPL-001-4, ds that configuration has a higher 9 probability of simultaneous circuit loss than separately 10 constructed transmission lines. Unl-imited non- 11 consequential l-oad loss is allowed by NERC standards for 72 these events because they have a lower probability of 13 occurrence than l-oss of a single transmission lj-ne. !4 O. Mr. Heckl-er also states that the substation is 15 a single poj-nt of failure. Does the fact that both t6 transmission Iines originate in the same substatJ-on, the L7 Wood River substation, destroy the reliability improvements 18 of the second transmission source? 19 A. No. The rel-iabil-ity gains come from 20 elimination of the single radial- source north of the V{ood 2! River substatj-on. The rel-iabil-ity of the "source" 22 substation, in this case the Wood River 23 24 facilities. The substation, woul-d Wood Riverbe addressed with other substation, itself, is transmlssi-on sources of sourced by two redundant energy. Additionally, there are ANGELL, REB Idaho Power 15 Company 25 1 many significant differences when considering the 2 rel-:-abllity and repairability of substations versus that of 3 transmission and distribution lines. Substations are 4 constructed with steel supporting structures, have much 5 l-ess exposure to l-ine events, and their failure occurs much 6 less frequently than transmission lines. Substations, like 7 the Wood River substation, have remote monitoring and 8 control equipment, which aIl-ows for quick identificatj-on of 9 a failure, remote reconfiguration, and dispatch of 10 personnel- to a known location. Additionally, the Wood 11 River substation is located just north of Hail-ey next to L2 Highway 75 and is much more easily accessed than portions 13 of the existing transmission line. 1,4 O. Do the referenced planning standards address 15 outages within a substation or simul-taneous l-oss of l-ines? 16 A. Yes. The planning standards address failures t1 of components within a substation but not the l-oss of the 18 entire substation. They also address the loss of two 19 transmission circuits. In both cases, unl-imited non- 20 consequentlal l-oad loss is al-l-owed for these events because 2L they have a fower probability of transmission line outage. O. Mr. Heckler states occurrence than a single 22 24 justifying the redundant l-ine based on an Company is assumpti-on of 23 that the ANGELL, REB Idaho Power 1,6 Company 25 1 future load growth. Is this true and how does he come to 2 this concLusion? 3 A. No. The purpose of the redundant transmission 4 l-ine is reliable service and, as I stated earlier, the 5 proposed transmi-ssion l-ine is not required to address a 6 forecasted peak demand beyond the capacity of the existing 7 transmission line. Mr. Heckl-er's argument in this section I of his testj-mony has misinterpreted or misrepresented the 9 information contained in the Wood Ri-ver Electrical- Pl-an. 10 First, the plan is designed to identify the electrical 11 facilities required to meet the ultimate demand of the 72 pJ-anning area. The process uses two separate approaches to 13 identify the eventual- peak el-ectrical demand when the L4 available private land is ful1y developed consistent with 15 the area's .l-and use planning. Second, the plan presents a L6 1ike1y time frame that the identified infrastructure 77 improvements are to be constructed. 18 O. Do you agree with Mr. Heckl-er's assertion of 19 using inappropriate techniques in analyzing l-oca1 backup in 20 the Northern Wood River Va11ey - Local Backup Electrical 2L Supply Report? 22 A. No. Customers regularly read artlcles about 23 energy technology and ask whether the Company is pursuing 24 those technol-ogies. This most recent analysis, Exhi-bit No. 25 3 to my direct testimony, was prompted by a Wood River ANGELL, REB Idaho Power t7 Company 1 Valley resident interested in an analysis of the l-ocal 2 energy options. A team of Company engineers gathered data 3 on availabl-e energy resources and referenced prior solar 4 generation and property protection analysis. The report 5 presents the resul-ts of a preliminary study to provide the 6 northern Wood River Va11ey customers served by the Ketchum 7 and Elkhorn substatj-ons with backup electrical- supply from 8 loca11y-sited generation. The resources considered in the 9 study are a dlesel reciprocati-ng engine, natural gas 10 combustion turbines, a photovol-taic plus battery energy 11 storage system, geothermal generation, and biomass 12 generation. 13 The analysis was performed using j-ndustry-standard L4 energy resource simulation software, HOMER@, which was 15 developed by the National Renewabl-e Energy Laboratory 16 (NREL) . The capital, operatj-ons and maintenance (OeUl , and 77 fuel- cost estimates for the resources identified above were 18 obtained from Lazard's Level-ized Cost of Energy Analysis- 19 Version 9.0 (Lazard 2015a). Idaho Power afso compared the 20 Lazard estimates with pre-engineering budgetary quotes from 27 several vendors. Additionally, the Idaho National 22 Laboratory (INL), with more than 1,000 MW of hybrid power, 23 solar, and wi-nd energy systems deployed at Department of 24 Defense and industry/utiJ-ity sites around the wor1d, 25 ANGELL, REB Idaho Power 18 Company 1 2 3 4 5 6 1 8 9 provided independent technical review and feedback on the analysis and report. O. Mr. Heck1er asserts that the wrong baseJ-ine is used by compari-ng transmission l-ine this correct? A. No. compared sel-ection of assumptions was 10 of load service levels of L4 al-ternatives against the redundant and using hypothetical- conditlons. Is The Local- Backup Electric Supply Report l-ocal- generation and storage based on peak wj-nter, Ioads. The is electric options. The the team's definition property protection, Wood River Va11ey supply during winter could result in 11 summer peak, and crj-tical 12 residents' primary concern 13 condj-tions when a long duration outage 15 water damage following frozen pipes, named Property Protection by the team. Consistent with the Company's planning approachr dn extreme average temperature of -2L" F was sel-ected from historical- data to ensure adequate capacity during these infrequent large demand periods. An analysj-s of the residence cooling rate identified that 1,6 71 1B L9 20 rotating distribution circuit service, a\k\a rotating avoid frozen2l outages, will 22 pipes for al-l- 23 load profile 24 peak but not 25 determine the not maintain adequate heat to customers. The December 31, 20L5, 24-hour of 1,l-50 megawatt-hours ("MWh") was a recent the extreme temperature event used to rate of residential- heat loss. Additionally, ANGELL, REB Idaho Power 79 Company 1 2 3 4 5 6 1 I 9 supplying onl-y the residents' critical- loadsr ds suggested, woul-d not meet need for electricity to maintain heat and keep pipes from freezing. The local supply duration was informed by the estimated time to replace a remote failed structure during the winter, and the expected time to receive fuel based on t_0 the following assessment of transport in the adverse in the report, page 11 of components: line patrol to find the failure, restoration time, fuel purchase, and winter weather. Thus, ds stated 56 of Exhibit No. 3, the December 11 31, 2015, 24-hour load profile of 1,150 MWh was used merely 12 to determine a base cost. 13 O. Mr. Heck.l-er next asserts that the wrong costs L4 were used. Do you have a response? 15 A. As described in the report, the generatj-on and 16 storage technology costs were gathered from several- L7 sources. Mr. Heckler's Tesl-a PowerWal-I prices of $250 and 18 $450/kil-owatt-hour ("kl/ilh") are not supported based on 19 Tesla's pricing on its website. At the time of the report, 20 Solar City woul-d instal-l- a Tesla PowerWall for $1TLlkwh. 27 Tesla has recently reduced the instal-l-ed cost to a range of 22 $500 to $585/kwh, https: / /www.tesl-a.com/powerwalI. The 23 24 industrial-/utility scale PowerPack is sol-d in the same pri-ce range. The Company recently contacted Tesl-a about pricing for a project in Oregon and was told that the ANGELL, REB Idaho Power 20 Company 25 1 2 3 4 5 6 7 I 9 PowerPack was not currently distributed in Idaho Power's service territory. However, an instal-led cost would be increased by 1and, site preparation, and interconnection. Mr. Heckl-er suggests that the Company analyze reciprocating engines similar to those evaluated in the l-0 based on the area's 11 higher l-and costs, contingency basedtwo locations, and a preJ-iminary estimate. Regarding Mr. Integrated engines is Exhibit No. footnote 34 the logistics of interconnect ion, Resource PIan. The cost for contained in row 1 of Table 3. The cost referenced in of $775lkilowatt ("kW") was recrprocating 1 on page 9 of 56 of Mr. Heckler's adjusted to $800/kW interconnection in appropriate for a t2 13 Heckler's proposal of storing the 2 MW 14 generators in Pocatello for dispatch to areas of need, the 15 Company's analysis was preliminary in nature and did not L6 consider how the diesel- generators were configured. The 71 estj-mate of $800/kW may still be appropriate for 2 Mw semj-- 18 trailered units. However, unlike locally instal-led units, 19 20 winter transport, placement, and startup under col-d l-oad 21- conditj-ons woul-d be extremely difficult and 22 23 24 25 the Property Protection defj-ned need. Mr. Heckler also asserts that combinations of Distributed Energy Resources ("DERs") shoul-d be evaluated. The concl-usj-on of the report identified diesel engines as pickup 1 i kely ANGELL, REB Idaho Power not meet 2t Company 1 2 3 4 5 6 7 I 9 the least costly local generatJ-on option. Referring to the past several- Integrated Resource Pl-ans, the l-east-cost resource addj-ti-ons have been the Boardman to Hemingway transmissj-on project followed by reciprocating engines. Any combination of other DERs wil-l- resul-t in a significantly higher cost without delivering a benefit to support the increased cost. v Mr. Heckler al-so states that technol-ogy has advisory committeechanged substantially shoul-d be convened to evaluate distributed resource and bel-ieves an 10 11 alternatives. Do you agree? 12 A. No. Advances in the production and the 13 increased volume of photovoltaic and battery sal-es have 14 reduced their prices dramatically over the past decade. 15 However, today their costr dS shown in my testimony, the 76 referenced report, and Idaho Power's Integrated Resource 7'7 PIan, are not yet competitive with conventional- technology. 18 The cost differences are so large between conventional- and 19 new technologies for an appreciable amount of energy 20 production or storage that it would be highly unlikely that 2l an advj-sory commj-ttee would develop a different outcome, 22 and I do not agree with this recommendatj-on. 23 O. Does this conclude your testimony? 24 A. Yes. 25 ANGELL, REB Idaho Power 22 Company 1 2 3 4 5 6 7 I 9 AETESTAIIOII OF TESIIMONY STATE OF IDAHO SS. County of Ada 10 I, David M. Ange11, 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 Transmissj-on and Distribution Planning Manager and am competent to be a wj-tness in this proceeding. I declare under penalty of perjury of the l-aws of the state of Idaho that the foregoi-ng pre-filed testimony is true and correct to the best of my lnformation and belief. DATED this 23'd day of June 207't . 11 L2 13 t4 15 !6 L1 18 19 20 David M. Angel1 2t 22 SUBSCRIBED AND SWORN to before me this 23'd day of June 2017.23 24 25 26 21 28 g{AS t'Notary P l-ic for Idaho go?{4 rDla Residing at:Boise, Idaho t My commissi-on expires:02/04/2021 !{rg l F1 ANGELL, REB 23 Idaho Power Company ,5 !I I CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 23'd day of June 2017 I served a true and correct copy of the REBUTTAL TESTIMONY OF DAVID M. ANGELL upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Daphne Huang Camille Christen Deputy Attorneys General ldaho Public Utilities Commission 47 2 \N est Wash ington (83702) P.O. Box 83720 Boise, ldaho 83720-007 4 Sierra Glub Kelsey Jae Nunez KELSEY JAE NUNEZLLC 920 North Clover Drive Boise, ldaho 83703 Zach Waterman Director, ldaho Sierra Club 503 West Franklin Street Boise, ldaho 83702 Michael Heckler 3606 North Prospect Way Garden City, ldaho 83714 Kiki Leslie A. Tidwell Peter J. Richardson RICHARDSON ADAMS, PLLC 515 North 27th Street (83702) P.O. Box 7218 Boise, ldaho 83707 Kiki Leslie A. Tidwell 300 Let'er Buck Road Hailey, ldaho 83333 X Hand Delivered _U.S. Mail _Overnight Mai! _FAXxEmail daphne.huanq@puc.idaho.qov cam i!!e.ch risten @puc. idaho. qov _Hand DeliveredX U.S. Mail _Overnight Mail FAX x Email kelsev@kelseviaenunez.com _Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email zack.waterman@sierraclub.orq _Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email michael.p.heckler@qmail.com _Hand DeliveredX U.S. Mail _Overnight Mail_FAXX Email peter@richardsonadams.com _Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email ktinsv@cox.net CERTIFICATE OF SERVICE. 1 Rock Rolling Properties, LLC, and Rock Rolling Properties #2, LLC Gregory M. Adams RICHARDSON ADAMS, PLLC 515 North 27th Street (83702) P.O. Box 7218 Boise, ldaho 83707 Rock Rolling Properties, LLC Rock Rolling Properties, LLC c/o Kris Dondero P.O. Box 739 Sun Valley, ldaho 83353 Rock Rolling Properties #2, LLC Rock Rolling Properties #2, LLC c/o John Dondero P.O. Box 739 Sun Valley, ldaho 83353 City of Ketchum Matthew A. Johnson Wm. F. Gigray, lll WHITE PETERSON GIGRAY & NICHOLS, P.A. 5700 East Franklin Road, Suite 200 Nampa, ldaho 83687 lndividual Laura Midgley 231 Valley Club Drive Hailey, ldaho 83333 CoxGom, LLC C. Tom Arkoosh ARKOOSH LAW OFFICES 802 West Bannock Street, Suite 900 P.O. Box 2900 Boise, ldaho 83701 CERTIFICATE OF SERVICE - 2 _Hand DeliveredX U.S. Mai! _Overnight Mail_FAXX Email greq@richardsonadams.com _Hand DeliveredX U.S. Mail _Overnight Mail _FAX Email _Hand DeliveredX U.S. Mail _Overnight Mail _FAX Email _Hand DeliveredX U.S. Mail _Overnight Mail FAXX Emai! miohnson@white oeterson.com _Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email Midqlev2215@qmail.com _Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email tom.arkoosh@arkoosh.com Christa Bearry, Legal Assistant