20170511Application.pdf

ROCKY MOUNTAIN
POWER
A OMSIOT{ OF PACIFICORP
-i '1. TI\,rr.[1r'l LU
1407 West North Temple, Suite 310
Salt Lake City, Utah 84116':;"., ll ,llitc:19
May I1,2017 :. tln'-l.j -) 1 ../ t.{
VIA OWRNIGHT DELIWRY
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472W. Washington
Boise,lD 83702
RE: PAC-L-17-04
IN TITE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER
REQUESTING APPROVAL OF THE ANNUAL REVISION TO QF VARIABLE ENERGY
PRICES PURSUAI{T TO TERMS OF THE 1992 AMENDMENTS TO POWER PURCHASE
AGREEMENTS BETWEEN IDAHO QFS AITTD PACIFICORP
Dear Ms. Hanian,
Please find enclosed for filing an original and seven (7) copies of Rocky Mountain Power's
Application in the above-referenced matter.
Informal inquiries may be directed to Ted Weston,Idaho Regulatory Manager at [phone].
Very truly yours,
Jeffrey K. Larsen
Vice President, Regulation
Daniel Solander (ISB# 8931)
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone: (80 I ) 220-4014
Fax: [phone]
Email : Daniel. Solander@Pacifi Corp.com
Attorneyfor RoclE Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER
REQUESTING APPROVAL OF THE
ANNUAL REVISION TO QF VARIABLE
ENERGY PRICES PURSUAI\IT TO TERMS
OF TIIE 1992 AMENDMENTS TO POWER
PURCHASE AGREEMENTS BETWEEN
IDAHO QFs AND PACII'ICORP
CASE NO. PAC.E.I7.O4
APPLICATION
Rocky Mountain Power, a division of PacifiCorp ("Company" or "Rocky Mountain
Power"), in accordance with Idaho Code $ 61-503, RP 52, and Order No. 29316, hereby
respectfully petitions the Idaho Public Utilities Commission ("Commission") for an order
approving the updated Qualifuing Facility ("QF") variable energy price pursuant to the terms of
the 1992 amendments to Idaho QF power purchase agreements. In support of this Application,
Rocky Mountain Power represents as follows:
L INTRODUCTION AND BACKGROIIND
In 2003, the Company sent a letter notiffing the Commission of a July l, 2003, revision to
the variable energy price for QFs holding certain power sales contracts with the Company. These
thirteen QF contracts included a Commission approved 1992 Amendment outlining the
1
methodology that would be used for determining the variable energy price component of the
avoided cost rate.
As stated in the 1992 Amendment beginning July 1, 2003, and continuing throughout the
term of the power purchase agreements, including any extensions, the variable energy rate will be
calculated in accordance with the specified methodology described below.
The variable energy rate will be the sum of PacifiCorp's fuel cost and Colstrip variable
O&M cost. PacifiCorp's fuel costs will be the average cost of fuel consumed in its Utah Division,
specifically the Carbon, Hale, Naughton, Huntington and Hunter generating plants. If any of the
specified plants don't operate in any calendar year, such plant will be excluded from the calculation
of the average cost of fuel. Carbon and Hale coal plants have subsequently closed and are excluded
from the calculation. The average cost of fuel will be calculated using the data reported in the
Company's FERC Form l. In the event that the FERC Form 1 ceases to include the cost of fuel or
net generation data, comparable data based upon the Company's normal accounting practices shall
be used.
Pursuant to Order No. 23738, variable O&M costs were set based on the variable costs
associated with the operation of Colstrip, a coal power generating facility in southeast Montana
excluding the generation tax and the line loss adjustments.
II. VARIABLE ENERGY RATE
The average cost of fuel consumed by the specified Utah division coal plants for calendar
year 2016 was $2 1 .78 per megawatt hour. The variable operation and maintenance expense set for
Colstrip generating facility was $1.51 per megawatt hour. Therefore, the variable energy rate
applicable to deliveries commencing July I,2017, extending through June 30, 2018, is $23.29 per
megawatt hour. An attachment is provided with this Application supporting this calculation, along
2
with the relevant pages from the Company's FERC Form 1 for the year ending December 31,
2016.
III. MODIT'IED PROCEDURE
Rocky Mountain Power believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under Modified
Procedure, i.e., by written submissions rather than by hearing in accordance with RP 201 et seq.
IV. COMMUNICATIONS AND SERYICE OF'PLEADINGS
Communications regarding this Application should be addressed to:
Ted Weston
Rocky Mountain Power
Idatro Regulatory Affairs Manager
1407 W. North Temple, Suite 330
Salt Lake City UT 84116
Telephone: [phone]
Facsimile: [phone]
E-mail : [e-mail]
Daniel E. Solander
Rocky Mountain Power
Senior Counsel
1407 W. North Temple, Suite 320
Salt Lake city uT 84116
Telephone: [phone]
Facsimile: [phone]
E-mail : daniel.solander@pacifi corp.com
In addition, Rocky Mountain Power respectfully requests that all data requests regarding this
matter be addressed to:
By e-mail (preferred): datarequest@.pacificom.com
By regular mail:
PacifiCorp
Data Request Response Center
3
825 NE Multnomah, Suite 2000
Portland, OR 97232
Informal inquires also may be directed to Ted Weston at [phone]
V. REQUEST FOR RELIEF
Rocky Mountain Power respectfully requests that the Commission issue an Order
authorizing this matter to be processed by Modified Procedure, and approving the variable energy
rate of $23.29 per megawatt hour applicable to the energy delivered from the thirteen 1992 QF
contracts commencing July 1,2017, extending through June 30, 2018.
Respectfully submitted this I ltr day of May, 2017
tuh
Daniel E. Solander
Rocky Mountain Power
1407 WestNorth Temple
Salt Lake City, Utah 841l6
Telephone: [phone]
Fax: [phone]
Attorneyfor Roclcy Mountqin Power
4
ATTACHMENT
Catbon
PaclfiCop
Totel Verlable Enagy Rrte
tar2017 12018
Naughbn Hulfrngton
$ 110,299,3i12 $ 129,979,273
Hunbr Totals
0 139,374,104 $ 379,652,699Fucl Coct($) $
2olt FERC FORII I - P.el 4e [tt. 20
Generation (MWH)
20tOFERC FOR! I - P.eo.lo2 Lhc t2
Avorage Fuel Cost ($irillWH)
Vadable O&M
Total Vadablc Energy Rate tur 2017 12018
For dellwdea unmencing July 1 , 2017 qtendlng through June 30. 201 8
12 PaclflGoqilQFg conbac'tswlth approwd 1992 amendment language
4,E71,839 5,503,890 7,0157,715 tt,+33174
21.78
1.51
23.29
$
$
$
/MWH
/NMIH
/MWH
Page 1 20L7
PadnCorp 0)
(2)
Orlghal
R6ubmbslon
(Mq D8,Yi)-tl Er16 of 2016rQ/f
STEA[&eLECrnrc GENERATTNG PLANT STATISTIC^9 (Laryp
1. Rrport datll for plenl ln Sonde only. 2. Laryo plentt erE.bam denb u,lth lllltafied crydu (nsne platc raUrU) of 25,fi)0 Kw or mol!. Roport ln
tl{r page gat/rilnc and lnEnd cdilbustql planb of 10,000 Kw or mor!, snd nudcsr plsnt!. 3. lndlctlr !y a lbotlob eny plant lceled or oporsbd
as a Jdnt fadllty. .1. It nd pcsk demand tor E() mlnulsc b nd awilabb, ghtg drta whidr b avalabh lp.dlylltr pedod. 5. f any anpbylct ettnd
mol! than orE plant, Eport on llnc 11 the apfdrnte al,eragp nnter of crployr€s asligneua b sedr plent 6. f gEs lr rr6d and purdE!€d on !
Olcm be.b llpoil hc Blu conimt or the gts and tht quantty of ttd bumd comErbd to Md. 7. Qlldlte! o, frr€l hrnod (Une 33) ard erorlge colt
psr ur*t of fird bumcd (Uns 41) rTult be conrlsbnt wiut cttergoc b €xpsrits eccounts $1 and 5'17 (Llne 42) ar rhow on lhc 20. 8. lf mors tran onc
i.El lr bumed ln a dfit turllh mty the comporlb hcat leb ftr dl fi,Eh hmcd.
Llns
No.
It€m
(a)
Plant
Narna:"fltltftr
tb)
Phnt
Name: .llln6ililt
(c)
1 KInd of Plent (lnbrnel Corrt, Ga TuD, Nudcrt s:bem Sbam
2 Ttmcof Coldr(Conwntonal, Oruoor, Bolor, dc)otrEoorEoller Ou6oor Bollcr
3 Year Origlndly Cmltnrid 1gt1 1S63
1 Ydr l.ed Unltvr[ l]Etallod tcls 1Sl1
5 Totd lmtdlcd Cep (Mar Gcn Namc Plrts Rdms-ln r)1550.05 7W20
0 Nct Paek tbmend on Plant - MW (d, mlrutc)fia 657
Phnt HouE Connaod to Lod7 878E 87l,4
8 ]*,let Corilnuour Flrt CaDrUlltv 0vleeew!frr)0 0
I l/\Jhdr Nd llmlEd by Conrlcmerlrfitsr 1415 637
10 Whsn Urdbd bV Conbmcr UraGr 0 0
1t Avcrage Number of EmCrycs llll 1Nt
12 Ulq#btt, E dlhlB ot Planil Urc - KIM|8017176m0 ffio
't3 Codof Plmt Lrrd snd L.d Rlgh!11S:y61 10,,3721
11 Sructmr and l]IprovEmcntt 1454:11073 11W21791
t5 EqdpmntCorb 122708Ij,'17 6@79658r
10 Alsst Rctrurent Costr 10665563 48125W12
17 Tdd CoEt 139307581t 831121498
18 Cort pcr l(W of lmt lLd Capactv (llrc 1 7rO ltttudng 898.odB 1175,2U
19 Prodnctlon Epsnrcr: Oper, SDrr, & E Er 3ql8t0
20 S*
t42gm9
2r0Gtz36 rffiEr
21 Coolantr ud l lbbr (Nudrar Plantr Only)0 02Stern EOenrse 18,.1gn3 898n a9
2t Steam FrcmOOprSourccc 0 0
21 SteamTrmfimd(C0 0 0
Ecdrlc E0em6s25 0 gs72
MbcSrm (orNudaD Porrer Epcnrofr -?2f/&i88E 8610080nRonts29@85r4350
28 Abuanc0 0 0
2e Malnbnamr Swervirion and Engincrlng 6719/.1 172,,723
3{t Malnbnam orStruclurer 9308qr 2101509
31 lrlehHranca of Bolhr (q nedoo Plsrt 2$0p'n8 102584{t5uMalnbnanca of Elecillc Plril 7298108 s2u12
33 Malnbnmc. of Mbc StBem (or NrdmD Plant 137't618 gt71s1
34 Tdal Prcducton Expencee 311211972 1$fiuv,
3tt EOCm6perliLtKm 0.0301sFUC: Klrtr (Cod, @t, Oll, orNudaq Co.l Cosl Gr Cornpcltc
cl Unlt (Co.tbn r0[-0rrdrGar.mcflNudcar{ndc$)Tonr Barrlb Tons MCF
38 auan0ty (Urltr) of Fuel Burned 45733t4 12112 0 2B-2n 20ng 0
30 Aw Heat Conl - FLEI Brmod (Uurlndlcrto f nudsst)9080 13E000 0 tfiEo 1fis 0
$Avg Co.t of Fr,rd/unli ar Ddvd f.o.b. durhg yEar sa3a0 7gal 0.000 11.7f3 l4.rt58 0.m0
11 Avcrags Cct of FtrI per Udt Burmd 56.6't2 79.41 0.m0 $.7(n Itl.458 0.moaAvEregc C6t of Fud Bumcd par Mllon BTU 3.1't6 13.76 9.125 2.O't3 13.8{0 2.078
,13 ArrEraol C6t of Furl Bunad per l(IVtr Nct Gon 0.03i1 0.000 0.032 0.(r23 0.000 0.0234Atrrago BTU parKm NdGerpndon 10380.'128 8.756 10378.r84 10801221 .t..t56 r0Es5.670
FERC FORX XO. I (REV. r2S)W. 4i}2z
PacilColp
(t)
(2)
Odglnal
Rilltfllsdon
(Mo, Da, Yr)tl End of 2016/Q4
STEAM€I-ECTRIC GENERATING Pl-AIrlT STATISTICS (l-ergp Pratfil (@rinuad)
9. lbm! tndar Coat of Pm alr balcl on U. S. dA Accouill Produdon qumr tb nd hdndc Rrdtarcd Povrr, Syagn Contol and Loed
I)lsprdthg, and O0pr Epamr Claollled ar O0rr Pornr Suppty Epunat. 10. For lC rtd 6f danb, lcport Oporatng Apcmo, Acor.lrt No.
St7 ard 6tO on lJm 25'Electlc Erpcntcr,'arrd Mehutanca Amlrlt Noo. 553 and 65.1 on Um &1, "Malnbnarm of Elcctric Plant' lndlcab phrtr
dslbncd br pctk lord rsrvlce. t)..Emb aubflffilly operefi.d danil.. I t. Fo] a plant eqr&ped utltt @fi5lmfronr of lb!!f nd !bam, nud€8t
Bbem, hydro, lnEnd comhrflon or g8l{.lilne equhrEnt, nport srdt ar t t€pento planL Homl/lr, lf a gartuiunc mlt funcflonr ln a combrred cycle
opcrrllon rryllh a contrentlonal rbam mlt, lndude the ga:.tutltr srlth tte ltmm plant. 12. lf a nudmr poilEr gorEretlng frant bdcny crplaln by
bofEb (a) acoonnthg mEthod ftr @st of psrilu goncrat€d hddng tny sx6s coOb afrlhrtld to rltgarh and devdoprrent; (b) Upcl d oost unltB
ulod br tre vadol.; componontl of ltrcl cort aill (c) any dEr lntrmdw dda omcerf ng plant type lUcl u!ed, li.El srldlnEnt type lnd quan$ry tur th6
remil ocilod Jd dtct Dhyslcel a]d ootttng chen6tu0cs of plant
Plflt
Nurp: HutilurUhlilo.9
(o
Urr
No.
Phnt
NenE: ,imf.ftiltltl Phnt
Nanr: flutil4bn
Stem Slean 1Sbrm
Outloor Boihr Ou6mrBoler 2OuEoorBdk
1978 ln1 31983
r983 1gn Ir983
1217.78495.50 900.00 5
1380.f00 8S 6
8784@87 8784 7
00 0 I
1't58 009 0171
0 0 100
t63 112',160ffiffi rtm 1225a6078000
1@7156e 29051091 23775f/.13
0,108.t593 209037716 12'130575.1 11
1070n77a1 73680138r t54a5391597
17tNIO I'lA18Ol0 ,l059e500 t6&wE 132!]9(F158 8711712112 17
1001.(n85 87.6850 18fit4.8805
0 17505 l90
d8ffi 'N5050cxt9
0 0 2'.10
1740,071 128:19579 u5865090
0 0 230
0 0 210
8997 0 258t130
29808 171,,1331 82fi211ol
0 4381 270
0 0 2E0
0 21A11,9p 2S0
7865538 19152@ 3028TN8,
2m85255 a24elu 31fi780qr9
,18582012765a05 982216 32
120103f.t15590 851235 33
191'163091TtouoSs 15S7,t5415 {
350.0t 3
Cosl
o.tztl
Coel
0.m90
Coal 30
B.r*Tonr BamL Tonr Bertlb 37Tolll
11340 0 3*Zn8 15178 0 2178ts19 3565 0 38118il78
0 11165 t38mo 0 11386 1',JE000 0 30tt@138{n0
0.000 11.279 75.W 0.000 51.9t/76.87 0.000 fi0.0m 0.000
0.000 11.W 75.W 0.000 52.3i5 78.6iv 0.000 1141.957 0.0m
1.923 1.874 'i.2,*l 1.888 2.n8 1g.zzt 2.502 121.895 'l3.tu
0.020 0.020 0.(m 0.om 0.oil4 0.000 430.020 0.000 0.024
10316.(E0 lO.t40.E6it 12.M 10,/,,2.9t lm6,,.w 3.755 10267.78 41m0029126.790
FERC FORX NO. r (RBr. r2{t}Prp to!.i