20170727press release.pdf

Idaho Public Utilities Commission ce muco-
P.O.Box 83720,Boise,ID ß3720-0074 Paul Niellander,commisvonerKastineRaper.CommissionerEncAndersort,Commissioner
Case Nos:PAC-E-17-06 and PAC-E-17-07
Contact:Matt Evans
[phone] or 520-4763
www.puc.idaho.qov
Rocky Mountain Power seeks PUC
approval for wind,transmission projects
BOISE (July 27,2017)-Rocky Mountain Power has asked the Idaho Public Utilities
Commission to approve its plans to build or acquire four wind farms in Wyoming,upgrade
13 existingwind facilities and improveits transmission system.
The projects are expected to cost $3.13 billion and would significantly boost the utility's
capacity to generate wind energy.
Rocky Mountain Power asserts the transmission projects are necessary in order to relieve
congestion on the transmission system and improveits abilityto manage the intermittent
load producedby wind,while providingsignificant long-termbenefits to customers.
The company requested that the Commission allow the projects'capital costs to be
incorporated into customer rates,and for approvalof Certificates of Public Convenience
and Necessity (CPCN)for the new wind facilities and transmission improvements.State law
requires a public utilityto obtain a CPCN before constructing certain facilities or
infrastructure.
The company contends CPCNs are warranted because the projects are in line with its long-
term plan,or Integrated Resource Plan (IRP).Its 2017 IRP,filed in April and awaiting
Commission approval,identified wind energy as the "least-cost,least-risk resource when
compared to other energy sources"for reliablymeeting customer demand over a 20-year
period.
Rocky Mountain Power also asked the Commission to expedite the approvalprocess to
ensure that the projects meet deadlines for federal renewable electricity productiontax
credits.
The wind projects must be in operation by the end of 2020 in order to achieve the full
benefit of the productiontax credits.
Rocky Mountain Power provides electric service to approximately75,400 customers in
Idaho.That is approximately7 percent of its customer base across a service territory that
includes Utah and Wyoming.
Idaho Code requires that regulated utilities be allowed to recover prudentlyincurred
expenses and earn a reasonable rate of return as established by the Commission.The
burden of proofis on the utilityto demonstrate that additional capital investment is
necessary to serve customers and,if so,that the expenses were prudentlyincurred.
The Commission's staff of auditors,engineers,analystsand attorneys will investigatethe
utility's application.Under state law,the Commission cannot accept or denythe company's
proposals without weighingthe evidence.
The Commission has set Aug.8 as the deadline for parties to formallyintervene in the case.
Intervenors typicallyrepresent customer groups.Theyfile testimonyand exhibits,and
cross-examine witnesses from the company,commission staff and other intervening
parties.
The Commission will later announce dates for customer workshopsand hearings,as well as
deadlines to submit comments.
Rocky Mountain Power's application and exhibits are available on the Commission's
website at wwwau_cic[ahogov.Click on "Open Cases"under the "Electric"heading and
scroll down to Case Nos.PAC-E-17-06 and PAC-E-17-07.As the cases progress,testimony
and exhibits from commission staff and other parties,as well as customer comments,will
be posted to the website.
Here is a breakdown of the proposed projects:
Wind improvements,$1.13 billion
Rocky Mountain Power's proposal calls for repowering,or upgrading,eight wind projects
in Wyoming,four in Washingtonstate and one in Oregon.
The facilities currentlyrepresent 999.1 megawatts (MW)of installed capacity,and the
projectis expected to increase generationbetween 11 and 35 percent.
Upgrades would include installation of higher-capacitygeneratorsand new rotors with
longer blades,which produce more energy at lower wind speeds.
In addition to increased energy output,the project's benefits would include greater control
of power qualityand voltage,which would allow the utility to more efficiently integrate
wind energy into its transmission system and enhance the reliability of the electric grid,
Rocky Mountain Power said.
The company also noted that the project's benefits can be achieved without the costs and
complexityof permittingand constructing new facilities,while extendingthe facilities'
useful life and cuttingoperating costs.
Rocky Mountain Power asked the Commission to issue its decision on the proposal by Dec.
29 in order to receive the full benefit of the productiontax credits.
The current tax credit is $24 per megawatt-hour.That amount that is adjustedannuallybut
expires 10 years after a facility goes into service.The tax credits for most of the facilities
proposed for repoweringare set to expire in 2018 and 2019.
Overall,the company said,the repoweringprojects would lead to customer savings of
between $41 million to $589 million,with natural gas prices and federal regulations
representingthe biggest variables.
The economic benefits are derived by a number of factors,including increased energy
output,reduced operating costs,extended operationallife,requalificationfor the
productiontax credits and the sale of renewable-energycredits.
Capital expenses related to the projectwould be assessed on customer rates throughthe
Energy Cost AdjustmentMechanism,which can be adjustedup or down annually
depending on costs incurred,and benefits reaped,by the company.
New wind projects and transmission improvements,$2 billion
Rocky Mountain's proposal asks for CPCNs for four Wyoming wind projects with a
combined capacity of 860 MW.Three have a capacity of 250 MW and one is capable of
generating 110 MW.
The proposal also includes the construction of or improvementsto several transmission
facilities in eastern Wyoming.Most of the improvementsare associated with the company's
Energy Gateway West transmission project,which calls for the addition of approximately
2,000 miles of transmission lines in order to alleviate congestion on the transmission
system,address growthand incorporate new generation sources such as wind.
The projects are mutuallydependent,according to the company:The wind projects are not
economic without the transmission projects,and the transmission projects are not
economic without the wind resources.
The $2 billion cost estimate would lead to a rate increase of less than 1.9 percent in 2021,
which is expected to be the first full year of operation of the new facilities,according to the
company.However,Rocky Mountain Power said the work is expected to save $137 million
in avoided costs through2050,when the wind projects are fully depreciated.
Here are the transmission improvementsoutlined in the proposal:
-Construction of a 140-mile,500kV transmission line runningfrom Aeolus to
Anticline,along with the construction of two new substations.
-Construction of a 5-mile,345kV line connectingAnticline and Jim Bridger,near Rock
Springs,and modifications to the Jim Bridger substation near Rock Springs.
-Installation of a voltagecontrol device at the Latham substation near Wamsutter.
-Construction of a new 16-mile,230kV line that would run parallelto an existingline
from the Shirley Basin substation to the company's proposed Aeolus substation near
Medicine Bow,in addition to modifications to the Shirley Basin substation,which is
located near the junctionof state highways 77 and 487.
-Reconstruction of 4 miles of a 230kV transmission line between the proposed
Aeolus substation and the Freezeout substation,including modifications to the
Freezeout substation,located between the Pine Draw and South Pine Draw.
-Reconstruction of 14 miles of a 230kV transmission line between the Freezeout
substation and the Standpipe substation,which is near Hanna,including
modifications to the two substations as required.