20170425notice_of_filing_order_no_33751.pdf

Office of the Secretary
Service Date
April 25,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE FILING BY )CASE NO.PAC-E-17-03
PACIFICORP DBA ROCKY MOUNTAIN )
POWER OF ITS 2017 INTEGRATED )NOTICE OF FILING
RESOURCE PLAN )
)NOTICE OF
)INTERVENTION DEADLINE
)
_________________________________
)ORDER NO.33751
On April 4,2017,PacifiCorp dba Rocky Mountain Power (PacifiCorp;Company)
filed its 2017 Integrated Resource Plan (“IRP”)with the Commission pursuant to the
Commission’s rules and in compliance with the biennial IRP filing requirements mandated in
Order No.22299.
NOTICE OF IRP FILING
YOU ARE HEREBY NOTIFIED that PacifiCorp’s 2017 IRP represents its fourteenth
comprehensive plan submitted to state regulatory commissions.
YOU ARE FURTHER NOTIFIED that the Company states that its IRP Application
was developed with participation from numerous public stakeholders,including regulatory staff,
advocacy groups,and other interested parties.The public input process began with the first
public input meeting in June 2016.The plan focuses on a 10-year period,2017-2028 (hereinafter
“planning horizon”).
YOU ARE FURTHER NOTIFIED that PacifiCorp’s 2017 IRP was developed by
working through five fundamental planning steps:(1)load and resource balance evaluation;(2)
resource portfolio formulation;(3)resource portfolio analysis;(4)identification of the preferred
portfolio;and (5)development of an action plan.
YOU ARE FURTHER NOTIFIED that the Company states that the 2017 IRP
preferred portfolio reflects a cost-conscious transition to a cleaner energy future.The Company
says that over the 20-year planning horizon,the preferred portfolio includes 1,959 MW of new
wind resources,905 MW of upgraded wind resources,1,040 MW of new solar resources,2,077
MW of incremental energy efficiency resources,and 365 MW of new direct load control
capacity.
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YOU ARE FURTHER NOTIFIED that the Company claims that by 2020,it can add
905 MW of repowered wind resources,1,100 MW of new wind resources,and a new 140-mile
500 kV transmission line in Wyoming to access the new wind resources and relieve congestion
for existing capacity,The Company’s preferred portfolio assumes existing owned coal capacity
will be reduced by 3,650 MW through the end of 2036.Beyond 2020,the Company’s preferred
portfolio includes an additional 859 MW of new wind —85 MW of Wyoming wind coming on
line in 2031,and 774 MW of Idaho wind in 2036.New solar resource additions totaling 1,040
MW are expected to come on-line over the 2028 to 2036 timeframe.
YOU ARE FURTHER NOTIFIED that the Company claims that the load forecast
used as an input to the IRP does not reflect any incremental investment in new energy efficiency
programs.Instead,the load forecast is reduced by the selected additions of energy efficiency
resources in the IRP.According to the Company,DSM resources will continue to play a key
role in its resource mix.The preferred portfolio identifies an increasing role for direct load
control programs with total capacity reaching 365 MW by the end of the planning period.
YOU ARE FURTHER NOTIFIED that PacifiCorp’s forecasted wholesale power
prices and natural gas prices used in the 2017 IRP are significantly lower than the base case
market prices used in the 2015 IRP.The Company states that over the last couple of IRP cycles,
growth in natural gas supplies have continued to outpace expectations.
YOU ARE FURTHER NOTIFIED that the 2017 IRP preferred portfolio does not
include any incremental selective catalytic reduction (SCR)equipment.The Company claims
that by not installing this equipment,customers will save hundreds of millions of dollars and
retain compliance-planning flexibility associated with the Clean Power Plan or other potential
state and federal environmental policies.By the end of the planning horizon,PacifiCorp
assumes 3,650 MW of existing coal capacity will be retired.
YOU ARE FURTHER NOTIFIED that the Company states that the 2017 JRP
preferred portfolio reflects PacifiCorp’s ongoing efforts to provide cost-effective clean energy
solutions for our customers and accordingly reflects a continued trajectory of declining carbon
dioxide (CO2)emissions.Specifically,the Company estimates that over the first 10 years of the
planning horizon,average annual CO2 emissions are down by over 10.5 million tons (21%)
relative to the 2015 IRP.By the end of the planning horizon,the Company estimates that system
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C02 emissions are projected to fall from 43.8 million tons in 2017 to 33.1 million tons in
2036—a 24.5%reduction.
YOU ARE FURTHER NOTIFIED that PacifiCorp has identified and implemented
several advancements to improve the IRP plan for its customers,other stakeholders,and
regulatory commissions.Some of the key advancements implemented in the 2017 IRP include:
(1)a winter peak analysis;(2)improved efficiency in the resource portfolio development
process;(3)completion of additional studies requested by stakeholders during the public input
process (compared to the 2015 IRP);(4)Clean Power Plan modeling;(5)completion of a
flexible reserve study related to solar integration costs;and (6)improved public input through the
development of the IRP.
YOU ARE FURTHER NOTIFIED that PacifiCorp described several “supplemental
studies”the Company relied upon in order to develop its 2017 IRP.
YOU ARE FURTHER NOTIFIED that the Company states its participation in an
Energy Imbalance Market will reduce customer costs and maximize use of clean energy over
time.The Company expects that participation in the ElM will continue to expand and that a
larger ElM footprint will bring greater resource and geographical diversity,allow for increased
reliability and cost savings in balancing generation with demand.The Company believes that the
economic dispatch of system resources is critical to how the Company manages net power costs.
YOU ARE FURTHER NOTIFIED that PacifiCorp’s 2017 IRP Action Plan reveals
the Company’s planned actions during the 10-year planning horizon (20 17-2026):
1.Renewable Resource Actions
-Implementation of a wind repowering project to take advantage of safe-
harbor wind-turbine-generator equipment purchase agreements.
-Issue RFPs seeking at least 1,100 MW of Wyoming wind resources that
will qualify for federal wind production tax credits.
-Issue unbundled REC RFPs to meet jurisdictional compliance
requirements.
-Evaluate potential opportunities to re-allocate RECs from Utah,
Wyoming,and Idaho to Oregon,Washington,or California,and
maximize the sale of RECs that are not required to meet compliance
obligations.
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2.Transmission Actions
-By December 2020,complete a 140-mile,500 kV transmission line
running from the Aeolus substation to the Jim Bridger power plant.
-Continue permitting for the Energy Gateway transmission plan.
-Complete Wallula to McNary project,with a 2018 in-service date.
-Complete planning studies,including proposed coal unit retirement
assumptions,and two other scenarios.
3.Firm Market Purchase Actions
-Acquire economic short-term firm market purchases for on-peak
summer deliveries from 2017 through 2019 through day-ahead
brokered transactions,and exchange based day-ahead,and hour-ahead
transactions.
4.DSM Actions
-Class 2 DSM:Acquire cost-effective Class 2 DSM resources targeting
annual system energy and capacity selections from the preferred
portfolio.
5.Coal Resource Actions
-Hunter Units 1 and 2,Huntington Units 1 and 2:The EPA’s final
Regional Haze Federal Implementation Plan for Utah requires the
installation of selective catalytic reduction on the units in 2021.The
regulation is being appealed and is currently in the Tenth Circuit Court
of Appeals.Actions here will be determined at the conclusion of the
litigation and through a future IRP or IRP update.
-Dave Johnston Unit 3:Because of the EPA’s final Regional Haze
Federal Implementation Plan (FTP)requiring the installation of SCR at
Dave Johnston Unit 3,the Company has committed to shut down Dave
Johnston Unit 3 by the end of 2027.This commitment will be included
in a permit by the compliance deadline in 2019.
-Jim Bridger Units 1 and 2:The EPA’s Regional Haze Federal
Implementation Plan (FIP)require the installation of SCR on Jim
Bridger Units 1 and 2 in 2021 and 2022.The Company will update its
economic analysis of compliance strategies,and will provide an
analysis in its 2017 IRP Update.
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-Naughton Unit 3:The Company will update its economic analysis of
natural gas conversion in its 2017 IRP Update.
-Wyodak:Continue appeal of the portion of EPA’s final Regional Haze
FIP that requires the installation of SCR at Wyodak.
-Cholla Unit 4:The EPA has approved the Company’s efforts to avoid
installation of SCR in Cholla Unit 4 until 2025,with the option of
natural gas conversion thereafter.The Company will update its Cholla
Unit 4 plans in a future IRP or IRP update.
YOU ARE FURTHER NOTIFIED that the PacifiCorp’s IRP has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices.The IRP filing is also available on the Commission’s web site at
www.puc.idaho.gov.Click on the “File Room”tab at the top of the page,scroll down to the type
of “Open Electric Cases,”and then click on the case number as shown on the front of this
document.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over
PacifiCorp,its filing and the issues pertaining to this case pursuant to Title 61 of the Idaho Code
and specifically Idaho Code 5 61-401.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
must file a Petition to Intervene with the Commission pursuant to this Commission’s Rules of
Procedure 72 and 73,IDAPA 3 1.01.01.072 and -.073.Persons intending to participate in this
matter must file a Petition to Intervene no later than twenty-one (21)days from the service date
of this Order.Persons desiring to present their views without parties’rights of participation and
cross-examination are not required to intervene and may present their comments without prior
notification to the Commission or the parties.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene with the Commission no later than twenty-one (21)days from the service
date of this Order.
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DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2017.
ATTEST:
Diane M.Hanian
Commission Secretary
O:PAC-E-17-O3bk
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PAUL KJ ELI.AX DiR.PRESIDENT
44t &Li\
KRI NE RAPER,C MMISSIONER
ERIC ANDERSON,COMMISSIONER
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