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Home My WebLink About20030225Watters Exhibits 12-16.pdfCase No. PAC-E-01-16 Exhibit No.12 Witness: Stan K. Watters BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION PACIFICORP ____________________________________________ Exhibit Accompanying Rebuttal Testimony of Stan K. Watters August, 2002 Case No. PAC-E-01-16 Exhibit 12 (SKW-R1), Page 1 of 2 Witness: Stan K. Watters Interruptible or Curtailment Products Description How Amount Term Notice Duration Frequency Payment Liquidated damages Buythrough Option Non-Spin Operating Reserves PacifiCorp call option to interrupt customer load per WECC criteria for recovery from contingency event Dependent upon customer loads . Generally aligned with furnace loads per historical agreements Calendar Year All hours 10 minute 1 hour maximum Defined in agreement Maximums set for year, month, day Monthly call option ($ per kW- month) PacifiCorp can dispatch interruption if customer declines Not available System Integrity Interruption PacifiCorp call option to interrupt customer load per system integrity criteria and prudent utility practice Typically 100 percent of customer load unless clearly defined amount Calendar Year All hours Except under emergency conditions, 2 hours Not defined but 1 hour notice when service restored Not defined Monthly call option ($ per month based on load size, location and other factors) PacifiCorp can dispatch interruption if customer declines Not available Economic curtailment Super Peak Period PacifiCorp call option to curtail customer load during super peak hours at PacifiCorp's discretion Dependent upon customer loads Calendar Year Highest value in June through September Day-of Typically 2 hour 8 hour 1PM to 9PM Monday – Friday Daily 5 days per week Limits normally set for maximum number of hours Monthly call option ($/kW- month) plus Strike payment ($/MWh) when curtailed Buy-through Applicable market index shaped to reflect hourly prices plus delivery costs Case No. PAC-E-01-16 Exhibit 12 (SKW-R1), Page 2 of 2 Witness: Stan K. Watters Description How Amount Term Notice Duration Frequency Payment Liquidated damages Buythrough Option Economic curtailment All Hours PacifiCorp call option to curtail customer load during all hours at PacifiCorp's discretion Calendar Year All hours Calendar Year Highest value in June through September Day-of Varies Typically 2 hour, 4 hour and 8 hour Primarily during the on- peak period 6AM to 10PM Daily 5 days/wk Limits normally set for maximum number of hours Monthly call option ($/kW- month) and Strike payment ($/MWh) when curtailed Applicable market index shaped to reflect hourly prices plus delivery costs Energy Exchange Website voluntary curtailment Customer decides Calendar year as needed Day ahead or 2 days ahead 1 day – select hours defined by PacifiCorp As posted Posted price minus current energy price in power supply agreement Not available Case No. PAC-E-01-16 Exhibit No.14 Witness: Stan K. Watters BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION PACIFICORP ____________________________________________ Exhibit Accompanying Rebuttal Testimony of Stan K. Watters August, 2002 Exhibit SKW-3 Economic Curtailment Option Capacity 46 MW Retail Cost $31.40 /MWh Annual Capacity Cost (2,340,000)$ Lost Retail Revenue (722,200)$ Curtailments/year 500 hours SoCal Bdr Nat Gas $3.75 /mmBtu Heat Rate 15,000 VOM $3.00 Market Price - SuperPeak $59.25 /MWh Capacity Charge $3.08 /kW-mo Avoided Reservation Fee $1,699,450 Avoided Energy Cost $1,362,750 Net Benefit $0.00 Case No. PAC-E-01-16 Exhibit No.14 Witness: Stan K. Watters BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION PACIFICORP ____________________________________________ Exhibit Accompanying Rebuttal Testimony of Stan K. Watters August, 2002 Exhibit SKW-3 Economic Curtailment Option Capacity 46 MW Retail Cost $31.40 /MWh Annual Capacity Cost (2,340,000)$ Lost Retail Revenue (722,200)$ Curtailments/year 500 hours SoCal Bdr Nat Gas $3.75 /mmBtu Heat Rate 15,000 VOM $3.00 Market Price - SuperPeak $59.25 /MWh Capacity Charge $3.08 /kW-mo Avoided Reservation Fee $1,699,450 Avoided Energy Cost $1,362,750 Net Benefit $0.00 Case No. PAC-E-01-16 Exhibit No.15 Witness: Stan K. Watters BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION PACIFICORP ____________________________________________ Exhibit Accompanying Rebuttal Testimony of Stan K. Watters August, 2002 Exhibit SKW-4 System Intergrity Benefit Capacity 162 MW Annual Cost ($486,000) System Interruption/year 12 hour FERC Cap $250 /MWh Avoided Purchase Cost $486,000 Net Benefit $0.00 Case No. PAC-E-01-16 Exhibit No.16 Witness: Stan K. Watters BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION PACIFICORP ____________________________________________ Exhibit Accompanying Rebuttal Testimony of Stan K. Watters August, 2002 Case No. PAC-E-01-16 Exhibit 16 (SKW-R5), Page 1 of 1 Witness: Stan K. Watters Buythrough Provision for Economic Curtailment Option Monsanto shall have the right to decline the Day-of curtailment option and purchase power for the Curtailment Load for the Duration of Curtailment for the day. (the “Replacement Power”). Monsanto shall notify PacifiCorp by phone and/or fax of its decision to decline the Day- of option within one (1) hour after PacifiCorp provides notification to Monsanto for the Day-of option to curtail. For example, if PacifiCorp notifies Monsanto by 11AM MPT, Monsanto must respond to PacifiCorp by 12PM MPT. If Monsanto fails to notify PacifiCorp of its decision to decline the Day-of option within the one (1) hour period, Monsanto will be obligated to physically provide the Curtailment Load as agreed. Replacement Power Price Monsanto shall purchase daily Replacement Power for the Duration of Curtailment from the PacifiCorp as calculated: Hourly Shaped Market Price multiplied by the Curtailment Load multiplied by the Duration of Curtailment (hours). Hourly Shaped Market Price shall be defined as daily Dow Jones TM Palo Verde Firm On- Peak Price, as reported at www.dowjones.com each Monday – Sunday multiplied by the following hourly shaping factors for each applicable month: January 114%May 122%September 119% February 114%June 126%October 113% March 114%July 130%November 111% April 110%August 130%December 116% Holidays include only New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When a holiday falls on a Saturday or Sunday, the Friday before the holiday (if the holiday falls on a Saturday) or the Monday following the holiday (if the holiday falls on a Sunday) will be considered a Holiday. Monthly Replacement Power shall equal the sum of daily Replacement Power for that month.