20180226Link Exhibit 37 - Corrected.pdf

Case No.PAC-E-17-07
Exhibit No.37 -CORRECTED
Witness:Rick T.Link
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
O
ROCKY MOUNTAIN POWER
Exhibit Accompanying Supplemental Direct Testimony of Rick T.Link
February 2018
O
Rocky Mountain Power
CORRECTEDExhibitNo.37 Page 1 of 2
Case No.PAC-E-17-07
Witness:Rick T.Link
Ñaturd La zer.001 Prke PR Sceperio
(Benefitycost |PYRRid)2017 2018 2019 |2020 |2021 2022 |2023 |2024 2025 2026 2027 2028 2029 2030 |203[|2032 2033 2034 2035 2036
CostofProjects $806 So 50 $0 $2 $58 562 $62 564 568 568 572 572 577 $102 5221 $225 $230 $235 $241 $246
ChangeinNFC (1806)($0)So 51 (Sil)($91)($92)($95)($94)($98)($98)($101)($114)($114)($l27)($124)(Sl26)($135)($150)(5144)(5144)
ChangeinEmissions so 50 50 $0 $0 So 50 $0 SO 50 50 50 So 50 SO SO 50 $0 So 50 50
ChangeinOSM (164)$0 (50;(51)($2)($3)(94)(SS)(57)(59)(39)(511)(511)(511)(Sil)(511)($11)(511)(511)(511)(Slo)
ChangeinsvstemFixedCosi (Ship 10 (50)So c50)(53)(53)(53i (56)(56)(56)(56)(56|($19)($19)(519)(532)(522)(512)(527)(527)
Net(BenefityCost ($[45)(50)(î0)(50)($12)($39)(537)(542)(544)(545)(546)(546|(559)(567)(554)167 557 562 562 559 $65
NaAtiral com Megam cG2 PrkePetkv Greenste
(BenefityCost |PYRR/dj 20l7 2018 2019 |2020 |2021 |2022 |2023 |2024 2025 2026 |2027 2028 2029 2030 |2031 |2032 |2033 2034 2035 2036
CostofProjects 5806 50 So $0 $2 $58 $62 $62 $64 $68 $68 572 $72 $77 $102 $221 $225 3230 $235 $24l $246
ChangeinNlt ($795)($0)10 $l (Sil)($91)($92)($95)(195)(599)(598)($101)($114)(5113)($126)(5123)(Sl27)($129)(5135)(5139)(5134)
ChangeinEmissions ($16)50 SO 50 10 50 50 10 10 10 10 50 $0 10 ($3)($8)(58)($8)($7)(57)(39)
ChangeinOSM ($77)So (50)($1)(53)(54)(55)(55)(58)(58)(59)(510)(510)(512)(512)(514)(516)(517)(518)(519)(120)
ChangeinSvstemFixedCost (Slo31 50 (50)(10)(50)(53)(53)(53)(56)(56)(56)(56)(56)($17)(524)(526)(522)(529)(556)(532)(546)
Net(Benefiticos1 (SlN6)(50)(50)($1)(112)(139)($37)(542)(545)(544)(546)(546)(559)(566)(565)549 553 546 519 544 537
NaturalGo,Higilt02g Seemado
(Benefi1VCost |PVRRtd)2017 20tR 2019 |2020 |2021 |2022 |2023 |2024 2025 2026 |202"2028 2029 2030 |2011 |
CostofProjects $806 50 50 50 $2 $55 $62 562 104 168 $68 $72 $"2 $77 $102 $221 5
ChangeinNPC (1851)($0)50 $0 ($13)(591)(594)(597)(598)($102)($105)($1tl)(5135)($142)(5143)(Stal)(si
ChangeinEnussions (5136)50 $0 50 50 10 $0 50 10 $0 ($10)($18)(516)($21)($36)(552)11 i (441)isen sian (15
ChangeinDSM ($27)$0 50 (50)(51)($1)($2)($2)($2)($2)($3)(14)($4)($4)(SS)(SS)(5 i tir,is
ChangeinsvstemFixedCost (589)50 50 50 (50)($3)($3)($3)($6)(56)(56)(56)(56)($20)(521)($21)(520)($24)($17)(141)($42)
Net(BenelityCost (5297)(50)$0 (50)(5:2)(\br is (541)(541)(141)(556)(565)(589)(5111)(5102)Sla 513 59 512 $10 521
NN¾wgggmggissers=
(BenefityCost |PYRRuh 2017 2018 2019 |2020 ||2021 |2024 2025 2026 |2027 202%2029 2010 |2031 2032 |2012 2044 2014 2016
CostofProjects $806 50 50 $0 $2 39 st:$62 $64 $6%$6%$72 912 577 $102 $221 $224 $210 $215 $241 5246
ChangeinNPC (5978)(50)$0 St ($12)19"I tim (5102)(5105)(Sl16)(Sils)($120)(5131)(St4%)($166)(sis])($154)(5191)($204)($181)(5146)
ChangeinEmissions 50 So 50 50 50 10 $0 10 10 $0 50 50 50 50 So $0 50 50 $0 50 50
ChangeinDSM (543)50 (51)(SL)($2)($2)(53)(53)(54)(54)(SS)(35)(56)(S7)(57)(58)(39)(59)(59)(39)(59)
ChangeinsvstemFixedCost (5921 50 (50)(50)(50)(33)(53)(53)(56þ ($6)(56)(56)(56)($20)($20)(S20I ($17)(522)511 (543)(594)
Net(BenefatyCost (5306)(50)(50)(50)(512)(544)($44)(547)(54 )($45)(549)(549)(574)(598)(591)112 Sl6 59 $34 SS (52)
1ëàiunif½tuslGen MediumcO2Price-PobcySeesuto
BenefityCost |PYRRuly 2017 20l8 2019 |2020 |2021 |2022 |2023 |2024 2025 2026 |2027 2028 2029 2030 |2031 2032 |2033 2034 2035 2036
CostofPngeets $806 50 $0 $0 $2 558 $62 562 $64 S68 $68 572 $72 $77 $102 S221 $225 $230 $235 524l $246
ChangeinNPC (5906)(50)$0 50 (Sl3)($97)($l00)($102)(8106)(5117)(5115)($119)(5133)($149)($170)($187)($190)($175)(5160)($87)($8)
ChangeinEmissions ($lo)SD 50 So so 50 50 So SD 50 50 50 $0 So (55)(53)(SS)(55)(55)(54)(52)
ChangeinOSM (141)50 So (51)(51)($2)(83)(53)tS4)(54)(55)(56)(56)(57)(57)(58)(38)($9)(59)($9)($9)
ChangeinSvstemFixedCosi ($193)50 50 50 (50)(53)($3)(53)(56)(56)(56)(56)(56)($19)(519)(519)(SI7)(544)(569)(5151)($247)
Net(BenclitvCost (5343)(50)50 (50)($12)(544)(544)(547)(153)(559)(559)(559)(574)(598)(51001 52 SS (52)(58)(510)(519)
skolum >araral Gas,High (02 Price-rone scend
|(Benefiticost |PYRRuh 2017 2018 2019 |2020 |2021 |2022 |2023 |2024 2025 2026 |2027 2025 2029 2030 |2031 2032 |2033 2034 2035 2036
CostofPnjects $806 50 $0 50 $2 SSK 562 562 564 568 $68 $72 572 577 5102 $221 5225 $230 8235 5241 $246
ChangeinNPC ($868)(80)50 S1 (513)($92)($95)($97)(5101)(Sill)(SION)($119)($124)(Sl23)(Sl69)($189)($186)($72)($74)($[54)($ló0)
ChangeinEmissions (596)50 to 50 So 50 50 50 50 50 ($13)(Sis)($36)(549)(530)(513)($17)(517)(Sis)(518)(520)
ChangemDS%1 (548)50 (SI)(51)(52)($3)(53)($3)(54)(55)(56)(56)(57)(59)(39)(59)(59)(S9)(59)(39)(510)O ChangeinSysten1FixedCos1 ($224)So 50 50 (Sol (59)(59)(Slo)(513)($13)($13)($14)($14)($25)(525)($26)($27)($147)($148)(573)(575)
Nei(Benclitycost (5430)(50)(50)(50)(512)(546)($46)(548)(SSA)(561)(573)(585)(5109)(sl29)($132)(517)($14)($15)($14)(514)(518)
NalatalGna2em Õ2P PoBey5eemario
(BenefityCosi PVRRMt 201"2nik 2019 |2020 |2021 |E U |2024 2025 2026 |C 9 2030 2011 20 2 |20,2034 2035 2036
n in ($l 7)(I)(9)(17)(26)(IS)(Si (6)(5)(5140)(56)(172)(1 )
(521
)><lb i (15 )(2)))
Change in Emissions 50 to 10 Se So SO 50 So 50 So so 50 $0 $0 So $0 50 50 So 50 50
ChangeinDSM (539)50 (Sl)(Sl)(52)(52)(52)(53)(55)(55)(SS)(55)(56)(56)(16)(56)(57)(57)(55)(ss)(59)ChangeinsvstemFuedCost (5319)50 So 50 (50)(53)(53)(526)(530)(530)(53])(532)(532)($39)(575;(594)($149)(567)(5109)(551)(571)
Net(Rene11tycost ($619)(50)(50)(50)($19)(564)(569)(Shel ($99)(5101)($103)($105)($123)(5141)(5142)(S30)($25)(524)(534)(560)(564)
H NoteralcaMediamCn27ricePalkyseematto
|(Benefitycost PURRMr 2017 201>2019 )2020 |2n2l |2022 2021 |2024 2025 202(2027 2028 2029 2030 )2031 |2035 2036
CostofProiects 5806 50 SD 50 52 $¾$62 162 164 568 $6N $72 572 577 5102 5221 $241 $246
ChangemNPC ($l.tx)0)(SO)SD 51 (519)(511")($126)(5102)(3106)(5116)(5116)(5120)($134)(5146)(5139)($136)isi ($253)($274)
ChangeinEmissiorts ($13)30 50 So so 50 30 Sn 50 SD 50 So 50 50 (53)(54)Ivi <$r>(39)($10)
ChangeinDSN1 (542)50 (SI)(SI)($2)(52)(52)(53)(55)(55)(55)(56)(56)(56)(57)(57)tSN (18)(59;(59)(510)ChangeinsystemFixedCosi ($387)50 10 So (50)(SM (53)(547)(Sst)(542)(SA)(544)(SAM (562)i>Isini15143 141>1011 (15)ish;
Net(klenelitVCost (5636)(SO)(sop (50)($19)(564)(569)($90)(598)(5104)(5106)(5]A)(8124)(Sl39)ikivi (UI (90 15 s>n ,(5(7)(176;
twelCuŠÏigkŠOÑÈÀice@eke Sœnarlo
(BenefityCost PYRRRD 2017 2018 2019 |2020 |202]|2022 2023 |2024 2025 2026 2027 2028 2029 2030 |2031 2032 |2033 2034 2035 2036
CostofPojects 5806 SO 50 SC $2 $58 562 $62 $64 S68 $68 $72 $72 $77 5102 $221 $225 $230 $235 5241 5246
ChangeinNPC ($Lo46)(10)SO 51 (519)(5115)($124)($87)($90)(599)(599)($102)($116)($131)($149)(5203)(5203)(5191)($232)($298)($31])
Changeinlimissions (SM)50 10 So so 50 50 50 50 So (54)(18)(Sil)($15)($18)(Slo)($22)($19)(526)(528)(528)
ChangeinDSM ($39)so (St)(Sl)(51)(51)(51)(53)(54)(54)(54)(55)(56)(56|(56)(57)(57)(58)(58)(19)($10)
ChangeinSystemFixedCosi (5352)50 So 50 (Sol (56)(56)(164)(568)(570)(S71)(573)(874)(574)(575)(546)($39)(159)(5451 56 54
Net(Benefitycost (5696)(50)(50)(30)($19)(565)(570)($93)($100)(5105)($Ill)($116)($135)(5149)(8146)(545)(546)(546)(176)($89)(5100)
(Benefitycost PIRIndt 2017 20tR 2019 |2020 |2021 |2022 2023 |2024 2025 2026 2027 2028 2029 2030 |2031 2032 |2033 2034 2035 2036
CostofProecct $7N4 50 50 50 52 555 SS9 $59 $61 $65 565 569 569 573 599 5217 $222 5227 $232 $237 $242
ChangeinNPC (5733)So 50 51 (St2)($85)(586)(188)(187)(591)(189)(589)(599)(5103)(Silo)(5113)($116)($120)(5132)($132)($132)
ChangeinEnussions 50 $0 50 So $0 SO SO So SO So SO So 50 So 50 30 50 50 50 50 50ChangeinvoM($17)$0 50 50 (50)($2)($2)($2)($2)(52)($3)(53)(52)($2)($2)($2)($2)(53)($3)($2)($3)ChangeinDSM ($71)$0 (50)($1)($3)(53)(54)($6)(18)(Sl0)($10)($12)($12)($12)($12)($12)($12)($12)(512)($12)(511)
ChangeinDenciency (SS)$0 $0 50 $0 SC $0 $0 $0 $0 50 $0 $0 ($1)($3)($4)($3)($3)($6)($2)(54)
ChangeinPTClosses(dumpedenergy)50 50 $0 $0 $0 50 $0 $0 $0 50 $0$0 $0 $0 50 $0 $0 5050 50 $0
ChangeinSystemFixedCosi (580)50 ($0)$0 (SO)(53)(53)(53)($6)($6)(S6)(56)($6)($18)($19)($19)($32)(522)(512)(527)($27)
Net(BenetityCost ($l26)30 (50)($l)(Sl3)($38)(536)(541)(543)($44)($43)(540)(SSI)($63)($47)S67 557 567 566 $6]$65
LowNaturdCs,M.Samfu2tWayScenare
(Hencíi1VCos1 PJRRid;2017 20t8 2019 |2020 2021 2022 2023 |2024 2025 2026 2027 2028 2029 2030 |2031 2032 |2033 2034 2035 2036
CostofProicct 5784 50 $0 50 52 555 $59 559 561 565 565 569 569 573 599 5217 $222 5227 $232 $237 5242
ChangeinNPC (5717)$0 $0 $1 ($11)($NS)($85)($88)($87)($91)($89)(589)($99)(5102)(Slo9)($111)(Sil3)(5114)($116)(5122)(5116)
ChangeinEmissions ($25)$0 50 50 50 50 50 $0 50 50 50 50 50 50 (59)(59)(510)($12)($14)($12)(Sl3)
ChangeinVOM (526)50 $0 $0 (SO)($2)($2)($2)($2)($2)($3)($3)($2)($2)($6)($6)(16)(57)(57)(57)(57)
ChangeinDSM ($NS)S0 (50)(52)(13)($4)($5)(56)($8)(19)($10)(511)(511)(513)($14)($15)($17)($19)($20)($20)($22)
ChangeinDeficiency $26 50 to 50 $0 50 50 50 10 $0 $0 $0 10 (SI)52 513 $13 518 SlS 513 59
O ChangeinPTClosses(dumpedenergy)SD 50 SO 50 50 50 50 50 50 50 50 50 50 50 50 So 50 50 50 So 50
ChanteinsvstemFixedCost (St03)50 (SD)(50)(50)(53)(53)(53)(56)(56)(56)(56)($6)($17)(525)(526)(522)(529)(556)($32)($46)
Net(Benefitycost (Sl46)50 (SO)($1)(513)(538)(536)(54[](143)(543)(543)(54û)(551)($62)(562)562 567 565 535 556 $47
Low NaimralGo,Haakt01Prwe Paykrum
(BenelityCosi |PVRRtd)2017 2018 2019 |2020 |2021 |2022 |2023 |2024 2025 2026 2027 2028 2029 |2030 203l |2032 1 2033 2034 2035 2036
CostofPmject $7N4 $0 50 50 52 $55 559 559 561 565 565 569 569 $73 $99 $217 $222 $227 $232 $237 $242
Rocky Mountain Power
CORRECTEDExhibit No.37 Page 2 of 2
Case No.PAC-E-17-07
Witness:Rick T.Link
ChangeinNPC (5775)50 50 50 (513)(5×7)(587)(590)(590)(595)(596)(599)(5114)(5118)(5126)($127)(5129)($131)($l35)(5118)(Sils)
ChangeinEmissions ($149)50 50 So so 50 50 50 50 50 (510)(520)($28)(515)(544)(546)(548)(550)(553)(545)(545)
O ChangeinVOtt (516)10 SO 50 (50)(52)(52)(52)(52)(52)(52)(52)(52)(52)(52)(52)(52)(53)(14)(52)(52)
ChangeinDS%t ($30)10 50 (50)ist)(11)($2)(12)(53)(13)(54)(54)(54)(S$l (15)($5)(16)($6)(S6)($9)($10)
ChangeinDeficienev (55)30 10 (Sol 50 50 50 50 50 50 50 SO (50)($1)(51)(53)(53)151¡(51)(St)(53)
ChangeinPTClosses(dumpedenergy)50 50 10 10 So 50 50 50 50 50 50 50 50 50 50 30 10 50 50 50 50
ChangeinsystemFixedcosi ($89)10 50 SU (50!(Sti (53)(53)(56)(561 156)(56|(56)(520)(121)(121)(520)($24)($17)(541)(542)
Net(BenefityCost ($280)so 50 (50)(512)(137)($35)($39)(540)(540)(554)(562)(5851 (510%)(5101)113 $14 112 116 $2]$22
me.a.untanicas,z..ecoz s.....s.
|tBenefitkCost PT7tRid,20l7 2018 2019 2020 2021 2022 2023 |2024 2025 2026 2027 N25 2029 2030 2031 2032 2033 2054 2035 2036CostofPmject578450SO5052545559559Sol565565569$69 573 599 5217 5222 5227 5232 5237 5242
ChangeinNPC ($886)So 50 51 (512)(191)($92)(194)(198)(5111)(5108)(5110)(5125)($133)($146)($155)($159)($!67)($179)($161)(5126)
ChangeinEmissiom SO $0 10 $0 10 $0 50 50 10 SO SO 10 50 $0 SO So 50 $0 $0 $0 SO
ChangeinVOM (521)So to 50 (SOþ (52;(52)(53)(53)(53)(53)(53)(52)(52)(53)(53)(53)(SS)(55)(53)($3)
ChangemDSM (547)So (SI)(51)(52)(52)($4)(54)(54)(54)($5)(56)(57)(58)(58)(59)(59)(59)($9)(59)(SIO)
ChangeinDeficicney (56)30 10 So 50 iso)10 50 50 50 50 30 30 (50)(82)($3)(SS)(50)(SS)(S2)(83)
ChangeanPTCWsses(dumpedemrgy)10 5010 50 50 50 $0 50 50 50 50 50 50 So 50 50 50 50 50 50 50
ChangeinSystemFixedCost (192)50 (SO)(50)(50)(53)(53)(53)(36)(56;(Sói (§6)(56)(320)(520)(520)($17)(522)SII (543)(194)
Nel(Benefitycost (5268)50 (80)(SI)(513)(543)(542)(544)(550)(559)(558|(556)(572)(191)(580|$28 529 524 545 Sl9 57
MediamheimrmlCealtisil-nGk2Pdes Mayamosas
thenersiscou PYRRid;20t?2018 2019 2020 2021 2022 07 'O'4 '025 2026 W'N A 2029 30¾2031 2032 2033 2034 2035 2036testulPrormt578450501052SSS$59 SS9 56]$65 565 $69 569 173 199 $217 $222 $227 1232 S237 5242
ChangeinNPC ($838)50 50 50 (513)(591þ (192)(594)(5100)(5113)(5109)(5111)(5127)($138)(5154)(5164)(5169)($156)($142)(586)(Sl2)
ChangeinEnnssions ($17)$0 50 10 30 SO So 50 50 SO SC 10 50 50 (59)(18)(19)(58)(39)($5)($2)
ChangeinVOM ($19)50 10 50 (50)($2)(52)(53)183)($3)(53)($3)($2)($3)($2)($3)($3)($3)($3)($2)($1)
ChangeinDSM ($44)50 50 (51)(51)(52)(53)(53)(54)(54)(55)(57)(57)(58)(SS)(59)(39)($9)(39)(39)(59)
ChangeinDeficienev (56)50 50 $0 30 50 50 50 50 SO 10 50 10 (SI)($2)(53)(55)(14)(56)($1)12
ChangeinfrClosses(dunipedenergy)30 50 10 50 50 50 50 50 50 50 50 50 50 50 50 50 50 SO 50 50 50
ChangeinsysiemFixedCost (Sl93)So SO 50 (50)(53)($3)(53)(56)(56)(56)(56)(56)(519)(519)(519)(sl7)(544)(569)(5151)(5247)
NetilienefityCost (5333)$0 50 (50)(513)(543)(541)(544)(152)(560)(549)(557)(574)(595)(595)511 SII $2 (57)(518)(527)
IIIghCO2Elipe gikgSessa
(BenelityCost PYRRida 2017 2018 519 2020 202]2022 2023 2024 N25 2026 V7 |2028 2029 NXI 2031 2032 2035 2034 2035 2036
CostofProject $784 50 10 So 12 $55 $59 559 561 565 565 569 $69 $73 $99 $217 $222 1227 $232 S237 5242
ChangeinNPC (5786)$0 50 51 (512)(586)(187)(589)(594)(5106)(5102)(5104)(5118)(5127)(5143)(5153)(5152)(569)(571)(5135)($135)
ChangeinEmissions ($107)50 50 50 SO SO 50 50 $0 30 (59)($19)(128)(134)($37)($34)($37)($17)($18)($28)($30)ChangeinVOM (117)50 50 50 (50)(52)(52)(52)($3)($3)(53)($3)($2)($2)($2)(S2)($2)(SL)($1)($2)($2)
ChangeinDSM ($52)50 (SI)(51)(52)(53)(541 (54)(54)(55)(57)(57)(SS)(59)(510)(510)(Slo)($10)(510)(SIO)($]0)
ChangeinDeficionev (57)50 50 ($0)So So (Sol 30 50 $0 10 50 SO (50)(52)(52)(52)(53)(53)(54)(59)
ChangeinPTClosses(durupcdenergy)50 50 SO 50 50 50 50 50 50 50 50 50 50 50 50 30 50 SO SU 50 50
ChangeinSysternFixedCosi ($224)50 SG 50 (50:(59)(59|(510)(513)(513)(513)(S]4)(514)(525|(SU)(526)(527)($147)($148)($73!(575)
Net(BenefityCost (5409)so (50)(51)(513)[544;(543)(546)($<2)(5611 ($69)(S76)(5101)($124¡($120)(Slo)(19)ISNI ($19!(Sis)($20)
BighNamtalG 2eseCO2PlirefabeySeemassa
(BenefityCosi |PI7tRid 20]7 2018 2019 2020 2021 2022 2025 524 2025 2026 N27 |N28 2029 NA 203]2032 2033 2034 2035 2036
CostofProject 8784 50 So 50 52 555 559 559 56l 565 565 569 569 573 599 5217 $222 3227 S232 $237 $242
ChangeinNPC ($923)50 50 51 (518)(5110)($116)(5107)(5112)(5117)(5115)($116)($132)(5147!15140)(5130)(585)(5149)(5124)($198)(SIS9)
ChangeinEmissions 50 50 50 So 50 50 50 SO 50 10 50 50 50 50 50 50 50 $0 30 50 50
Changeinvest (sis)So 50 50 (50)(53)(53)(52)(52)(52)(52)($2)($2)(52¡(52)(52)(52)(52)(52)(53)($4)ChangeinDSit (542)50 ist)($1)($2)($2)($2)($3)($*)(15)(55)(16)(56)($6)(56)(57)(57)(SN)(18)(59)($9)
ChangeinDeficiency (512)10 50 50 50 50 50 50 10 (50)50 50 50 (50þ (52)(54)(SA)(Sl3;($18)S0 ($3)
ChangeinPTClossesidumpedenergy)50 So 50 SO So so 50 50 50 50 50 50 50 50 50 50 50 50 50 50 $0
ChangeinSystemFixedCost (5319)So 50 So (50)(13)(SA)(526)(570)IS30p 1551;(5321 (532|is??)(575|(194)(Sl49)(són (5109i (141)(571)
Ner(BenefityCost (5531)so isop (51)(519)(562)(564!(5801 isssi (590)(589)(SET)($10?þ (SI2t!($126)ISL9)($25|(Sl2)($29)($24)($34)
O HighNasardCm,MuliamCO2mrammysammr
(BenefityCost PI7tRid>20t7 20ls 20t9 2020 2021 2022 2023 2024 325 2026 527 |528 2029 N30 2031 |2072 2035 2034 2035 2036CostofProject578450505052555$59 559 561 565 165 569 569 173 199 5217 $222 5227 5232 5237 5242
ChangeinNPC (5869)50 $0 $1 ($18)(5110;(5116)(593)(595)($101)(199)(599)(5113)($125)(5120)(5117)(590)(5146)($142)($210)(5226)
ChangeinEnnssions ($17)50 50 50 50 50 50 50 50 50 50 50 50 10 (55)(SS)(54)(58)(SA)($12)(SIS)
ChangeiaVOM (516)50 50 $0 (50)153¡(S3)($2)($2)(52)(52)(52)(52)(52)(52)(52)(51)(52)(52)(53)(54)
ChangeinDSM ($45)50 (SI)(SI)(52)152)(52)153)(55)ISS)ISS)($6)($1)(17)(SS)(SS)($8)(19)(39)($10)(511)
ChangeinDeficiency (SIO)10 50 50 50 50 50 50 50 (50)50 50 50 SO 151)(52)(SI)(513)(Sl6)(SO)(53)
ChangeinPTClosscs(dumpedenergy)50 Soso 50 50 50 So 50 50 So 50 50 50 50 50 50 50 50 50 50 50
ChangeinSystemFixedCost (5387)SO 10 50 (Sol (53þ ($3)(547)(151)($52)(19¡(554)(555)1562)(195|(5108)(5141)(1711 (584)(535)(528)
Net(BenefhyCost (5561)so (50)(SI)Isl9;(162)(SM)(186)(192)(195)(195)(593;(5107)(Sl23)(5131)(524)(524)(1211 (531)(534)(544)
HighNetsmikHighCO2Frise-FeBeyseemaria
(BenentWCost PYRRyd,20t?2018 3)19 2020 2021 XI22 2023 2024 2025 2026 205 2026 2029 20½2031 |2072 2033 2034 2035 2036
CosiofProject 5784 50 So SD 52 355 559 $59 $6]St-5 $65 569 569 175 599 5217 5222 5227 5232 5237 5242
ChangeinNPC (5898)10 50 Si (518)(slos!(5114)(581)(SSI)(SN6)(584)(583)(195)(5110)(5126)(5186)(5165)(SISS)(5190)(5239)(5246)
ChangeinErnissions ($94)50 So SO 50 So 50 50 50 50 (57¡(513)($17)1520)($27)($17)(531)($30)($34)(540)(541)
ChangeinVOM (sis)So Sû 50 (50)(53)($3)(52)(52!(52)(52)($2)(52)(52)(32)(SA)(53)($2)($3)(S4)(54)
ChangeinDSM (542)50 (51)(SI)(SI)($1)(51)(53)(SSI (55!(15)(56)(56þ (56)(57)(57)(18)(58)(59)(510)(511)
ChangeinDencienes (57)30 50 So 30 50 So SO 50 50 (50)50 (501 50 (50)(52)(51)(513)(55)(52)(55)
ChangeinPTClosses(dumpedenergv)30 So 50 50 50 50 50 50 50 50 50 50 10 So 50 30 $0 10 50 $0 $0
ChangeinsystemFixedCost (5352)50 50 50 (50)(56;(56)(564)(568)(570)(571b (STJ)(574)(S741 (STS)($46|(539)(159!(545)S6 $4
Net(BenefityCost ($627)50 (50)(Sfþ (SIS)(5621 (564)(591)(195)(198)($104!(SIOS)($126)(Sl38)($135)(SASI (524)(544)(553)(SSL)(162)
O
Case No.PAC-E-17-07
Exhibit No.38 -CORRECTED
Witness:Rick T.Link
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
O
ROCKY MOUNTAIN POWER
Exhibit Accompanying Supplemental Direct Testimony of Rick T.Link
February 2018
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Rocky Mountain Power
CORRECTED Exhibit No.38 Page 2 of 3
Case No.PAC-E-17-07
Witness:Rick T.Link
RockyMountainPower
CORRECTEDExhibitNo.38Page3of3
CaseNo.PAC-E-17-07
\¾itness:RickT.Link
IIII
e
Corrected Second Supplemental Direct Testimony
Cindy A.Crane
e
e
l projects with interconnection queue positions higher than a certain point were not
2 viable without Energy Gateway South,a PacifiCorp transmission project that is not
3 scheduled to be built before the expiration of production tax credits ("PTCs")in 2020.
4 McFaddenRidge II has a queue position higher than the cutoff point,so the Company
5 removed it from the final shortlist.
6 Second,the restudy identified 1,510 MW of total interconnection capacity for
7 projects in eastern Wyoming,up from 1,270 MW.The Company updated its System
8 Optimizer ("SO")model simulations taking into account these findings.The SO model
9 continuedto select TB Flats I and II,Cedar Springs,and Uinta,but replaced McFadden
10 Ridge II with Ekola Flats for the 2017R RFP final shortlist now that more
11 interconnectioncapacity was identified.
12 Q.Did the Company update its SO and Planningand Risk ("PaR")studies to reassess
13 the economic benefits of the Combined Projects?
14 A.Yes.As explained by Company witness Mr.Link,the Company updated the SO and
15 PaR studies for all nine price-policy scenarios.Mr.Link's updated economic analysis
16 demonstrates increased customer benefits of $167 million in the medium case through
17 2050 (as compared to $137 million in the original filing and $151 million in the first
18 supplemental filing),and an increased benefit range of $357 million to $405 million in
19 the medium case through 2036.Moreover,the updated economic analysis demonstrates
20 the Combined Projects continue to provide net customer benefits under all scenarios
21 studied through 2036,and in seven of the nine scenarios through 2050.
O
CORRECTED Crane,Di-Second Supp -3
Rocky Mountain Power
l projects with interconnection queue positions higher than a certain point were not
2 viable without Energy Gateway South,a PacifiCorp transmission project that is not
3 scheduled to be built before the expiration of production tax credits ("PTCs")in 2020.
4 McFaddenRidge II has a queue position higher than the cutoff point,so the Company
5 removed it from the final shortlist.
6 Second,the restudy identified 1,510 MW of total interconnectioncapacity for
7 projects in eastern Wyoming,up from 1,270 MW.The Company updated its System
8 Optimizer ("SO")model simulations taking into account these findings.The SO model
9 continued to select TB Flats I and II,Cedar Springs,and Uinta,but replaced McFadden
10 Ridge II with Ekola Flats for the 2017R RFP final shortlist now that more
11 interconnection capacity was identified.
12 Q.Did the Company update its SO and Planningand Risk ("PaR")studies to reassessO13theeconomicbenefitsoftheCombinedProjects?
14 A.Yes.As explained by Company witness Mr.Link,the Company updated the SO and
15 PaR studies for all nine price-policy scenarios.Mr.Link's updated economic analysis
16 demonstrates increased customer benefits of $¥>éj_67 million in the medium case
17 through 2050 (as compared to $137 million in the original filing and $-1-7-71_5 l million
18 in the first supplemental filing),and an increased benefit range of $-13-1 million to
19 $405 million in the medium case through 2036.Moreover,the updated economic
20 analysis demonstrates the Combined Projects continue to provide net customer benefits
21 under all scenarios studied through 2036,and in seven of the nine scenarios through
22 2050.
O
Crane,Di-Second Supp -3
Rocky Mountain Power
O
Corrected Second Supplemental Direct Testimony
Rick T.Link
O
O
l available to serve the company's customers by meeting both near-term and long-term
2 needs for additional resources.My second supplemental direct testimony explains the
3 following:
4 The Combined Projects continue to provide net customer benefits under all
5 scenarios studied through 2036,and in seven of the nine scenarios through
6 2050.
7 Customer benefits increase to $167 million in the medium case through 2050
8 (as compared to $151 million in the supplemental direct filing),and range from
9 $357 million to $405 million in the medium case through 2036.
10 The analysis reflects consideration of an interconnection-restudyprocess,that:
ll 1)eliminated certain bids,including the company's McFadden Ridge II
12 benchmark bid,from consideration in the 2017R RFP;and 2)supported anO13increasetotheassumedlevelofinterconnectioncapacityintheconstrainedarea
14 of PacifiCorp's system in eastern Wyoming.
15 Sensitivity analysis continues to show substantial benefits of the Combined
16 Projects persist when paired with PacifiCorp's wind repoweringproject and are
17 not displaced or reduced when considering the potential procurement of solar
18 PPA bids,updated with best-and-finalpricing,submitted into the on-going RFP
19 for solar resources,the 2017S RFP.
20 UPDATED 2017R RFP FINAL SHORTLIST
21 Q.Did the company update the list of winning bids from the 2017R RFP?
22 A.Yes.The company's 109 MW McFadden Ridge II benchmark resource was removed
23 from the final shortlist and replaced with the company's 250 MW Ekola Flats
O
CORRECTED Link,Di-Second Supp -2
Rocky Mountain Power
l CORRECTED Table 2-SS Updated SO Model and PaR PVRR(d)
(Benefit)/Cost of the Combined Projects ($million)
Second Supplemental Direct Suy plementalDirect
(Undated Final Shortlist3 (Orie unl Final Shortlist)
PaR PaR
Stochastic PaR Risk-Stochastic PaR Risk-
SO Model Mean Adjusted SO Model Mean Adjusted
Price-Policy Scenario PVRR(d)PVRR(d)PVRR(d)PVRR(d)PVRR(d)PVRR(d)
Low Gas,Zero CO2 ($185)($150)($156)($145)($126)($131)
Low Gas,Medium CO2 ($208)($179)($188)($186)($146)($152)
Low Gas,High CO2 ($370)($337)($355)($297)($280)($294)
Medium Gas,Zero CO2 ($377)($319)($334)($306)($268)($280)
Medium Gas,Medium CO2 ($405)($357)($386)($343)($333)($349)
Medium Gas,High CO2 ($489)$(448)($469)($430)($409)($428)
High Gas,Zero CO2 ($699)($568)($596)($619)($531)($557)
High Gas,Medium CO2 ($716)($603)($633)($636)($561)($588)
High Gas,High CO2 ($781)($694)($728)($696)($627)($658)
2 Over a 20-year period,the Combined Projects reduce customer costs in all nine
3 price-policy scenarios.This outcome is consistent in both the SO model and PaR
4 results.Under the central price-policy scenario,when applying medium natural gas,
5 medium CO2 price-policy assumptions,the PVRR(d)net benefits range between $357
6 million (up from $333 million),when derived from PaR stochastic-mean results,and
7 $405 million (up from $343 million),when derived from SO model results.Net benefits
8 increase relative to those shown in my supplemental direct testimony.This is driven by
9 the increased interconnectioncapacity associated with the Aeolus-to-Bridger/Anticline
O
CORRECTED Link,Di-Second Supp -14
Rocky Mountain Power
l CORRECTED Table 3-SS.Updated Nominal Revenue RequirementPVRR(d)
(Benefit)/Cost of the Combined Projects ($million)
Second
Supplemental Supplemental
Direct Direct
(Updated Final (Original Final
Price-Policy Scenario Shortlist)Shortlist)
Low Gas,Zero CO2 $184 $195
Low Gas,Medium CO2 $127 $159
Low Gas,High CO2 ($147)($79)
Medium Gas,Zero CO2 ($92)($34)
Medium Gas,Medium CO2 ($167)($151)
Medium Gas,High CO2 ($304)($275)
High Gas,Zero CO2 ($448)($411)
High Gas,Medium CO2 ($499)($453)
High Gas,High CO2 ($635)($559)
O
2 When system costs and benefits from the Combined Projects are extended out
3 through 2050,covering the full depreciable life of the owned-windprojects included in
4 the updated 2017R RFP final shortlist,the Combined Projects reduce customer costs in
5 seven out of nine price-policy scenarios.Customer net benefits range from $92 million
6 in the medium natural-gas,zero CO2 price-policy scenario (up from $34 million)to
7 $635 million in the high natural gas,high CO2 price-policy scenario (up from $559
8 million).Under the central price-policy scenario,when applying medium natural gas,
9 medium CO2 price-policy assumptions,the PVRR(d)benefits of the Combined
10 Projects are $167 million (up from $151 million).The Combined Projects provide
11 significant customer benefits in all price-policy scenarios,and the net benefits are
O
CORRECTED Link,Di-Second Supp -17
Rocky Mountain Power
l CORRECTED Figure 1-SS Updated Total-System Annual Revenue Requirement
With the Combined Projects (Benefit)/Cost ($million)
$80
$60
($30)
($100)
($120)
2 The data shown in this figure for the updated economic analysis have the same
3 basic profile as the data from the economic analysis summarized in my supplemental
4 direct testimony.Despite a reduction in PTC benefits associatedwith changes in federal
5 tax law,the reduced costs from winning bids from the 2017R RFP continue to generate
6 substantial near-term customer benefits and continue to contributeto customer benefits
7 over the long term.The Combined Projects produce net benefits in 23 years out of the
8 30 years that the proposed owned-wind resources selected to the 2017R RFP final
9 shortlist are assumed to operate.
10 As noted in my supplemental direct testimony,the year-on-year reduction in net
11 benefits from 2036 to 2037 is driven by the company's conservative approach to
12 extrapolatebenefits from 2037 through 2050 based on modeled results from the 2028-
13 through-2036time frame.This leads to an abrupt reduction in the benefits in 2037,and
14 a subsequent year-on-year reduction to net benefits,which breaks from the trend
CORRECTED Link,Di-Second Supp -20
Rocky Mountain Power
l CORRECTED Table 4-SS Updated Solar Sensitivitywith Solar PPAs Included
in lieu of the Combined Projects (Benefit)/Cost ($million)
Sensitivity Benchmark Change in
PVRR(d)PVRR(d)PVRR(d)
Medium Gas,Medium CO,
SO Model ($343)($405)$61
PaR Stochastic Mean ($228)($357)$129
PaR Risk Adjusted ($237)($386)$149
Low Gas,Zero CO,
SO Model ($196)($185)($11)
PaR Stochastic Mean ($139)($150)$11
PaR Risk Adjusted ($145)($156)$11
2 In this sensitivity,the SO model selects 1,122 MW of solar PPA bids in the low
3 natural gas,zero CO2 price-policy scenario and 1,419 MW of solar PPA bids in the
4 medium natural gas,medium CO2 price-policy scenario.All of the selected solar PPA
5 bids are for projects located in Utah.
6 In the medium natural gas,medium CO2 price-policy scenario,a portfolio with
7 the Combined Projects delivers greater customer benefits relative to a portfolio that
8 adds solar PPA bids without the Combined Projects.Customer benefits are greater
9 when the resource portfolio includes the Combined Projects without solar PPA bids by
10 $149 million in the medium natural gas,medium CO2 price-policy scenario based on
11 the risk-adjusted PaR results.In the low natural gas,zero CO2 price-policy scenario,
12 the portfolio with the Combined Projects delivers slightly greater customer benefits
13 relative to a portfolio that adds solar PPA bids without the Combined Projects when
14 modeled in PaR,and slightly lower customer benefits when analyzed with the SO
15 model.The decrease in net benefits in the solar PPA portfolio is $ll million based on
16 the risk-adjusted PaR results.
O
CORRECTED Link,Di-Second Supp -22
Rocky Mountain Power
l CORRECTED Table 5-SS Updated Solar Sensitivity with Solar PPAs Included
With the Combined Projects (Benefit)/Cost ($million)
Sensitivity Benchmark Change in
PVRR(d)PVRR(d)PVRR(d)
Medium Gas,Medium CO,
SO Model ($647)($405)($242)
PaR Stochastic Mean ($519)($357)($163)
PaR Risk Adjusted ($543)($386)($157)
Low Gas,Zero CO,
SO Model ($312)($185)($127)
PaR Stochastic Mean ($250)($150)($100)
PaR Risk Adjusted ($259)($156)($103)
2 In this sensitivity,the SO model continues to choose the winning bids included
3 in the updated 2017R RFP final shortlist as part of the least-cost bid portfolio.In
4 addition to these wind resource selections,the SO model selects 1,042 MW of solar
5 PPA bids in the low natural gas,zero CO2 price-policy scenario and 1,419 MW of solar
6 PPA bids in the medium natural gas,medium CO2 price-policy scenario.Again,all of
7 the selected solar PPA bids are for projects located in Utah.
8 When the solar PPAs are assumed to be pursued in addition to the Combined
9 Projects,total net customer benefits increase.This result is consistent with the
10 company's expectation expressed during the technical conference conducted on
11 January 17,2018 that cost-effective solar opportunities would not displace the
12 Combined Projects,but would only potentially add to incremental resource
13 procurement opportunitiesthat might provide net customer benefits.Importantly,this
14 sensitivity produces net benefits that are greater than the net benefits from the
15 Combined Projects without the solar PPAs.This confirms that near-term renewable
16 procurement is not a matter of whether the company should pursue the Combined
17 Projects or the solar PPAs,but whether the company should consider both
O
CORRECTED Link,Di-Second Supp -24
Rocky Mountain Power
l opportunities.At this time,it is clear that the Combined Projects provide significant net
2 benefits,and that these benefits are not eliminated if the company were to also pursue
3 solar PPA bids through the 2017S RFP.
4 WIND-REPOWERING SENSITIVITY
5 Q.Has the company updated its sensitivityanalysis related to the wind repowering
6 project?
7 A.Yes.The wind repoweringsensitivity was updated to reflect the updated final shortlist
8 and to reflect the most recent cost-and performance estimates for the wind repowering
9 project as described in my supplemental direct testimony filed in Case No.
10 PAC-E-17-06.
11 Q.What were the results of the updated wind-repoweringsensitivity?
12 A.Table 6-SS summarizes PVRR(d)results for this wind-repowering sensitivity.This
13 sensitivity was developed using SO model and PaR simulations through 2036 for the
14 medium natural-gas,medium CO2 and the low natural-gas,zero CO2 price-policy
15 scenarios.The results are shown alongside the benchmark study in which the Combined
16 Projects were evaluated without wind repowering.
17 CORRECTED Table 6-SS Wind-Repowering
Sensitivity(Benefit)/Cost ($million)
Sensitivity Benchmark Change in
|PVRR(d)|PVRR(d)PVRR(d)
Medium Gas,Medium CO2
SO Model ($608)($405)($204)
PaR Stochastic Mean ($541)($357)($184)
PaR Risk Adjusted ($567)($386)($181)
Low Gas,Zero CO2
SO Model ($334)($185)($149)
PaR Stochastic Mean ($281)($150)($131)
PaR Risk Adjusted ($295)($156)($138)
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CORRECTED Link,Di-Second Supp-25
Rocky Mountain Power
l available to serve the company's customers by meeting both near-term and long-term
2 needs for additional resources.My second supplemental direct testimony explains the
3 following:
4 The Combined Projects continue to provide net customer benefits under all
5 scenarios studied through 2036,and in seven of the nine scenarios through
6 2050.
7 Customer benefits increase to $-1-96_l_67 million in the medium case through
8 2050 (as compared to $4-7-71_5_1 million in the supplemental direct filing),and
9 range from $3 am million to $405 million in the medium case through 2036.
10 The analysis reflects consideration of an interconnection-restudyprocess,that:
11 1)eliminated certain bids,including the company's McFadden Ridge II
12 benchmark bid,from consideration in the 2017R RFP;and 2)supported an
13 increase to the assumed level of interconnection capacity in the constrained area
14 of PacifiCorp's system in eastern Wyoming.
15 Sensitivity analysis continues to show substantial benefits of the Combined
16 Projects persist when paired with PacifiCorp's wind repowering project and are
17 not displaced or reduced when considering the potential procurement of solar
18 PPA bids,updated with best-and-finalpricing,submitted into the on-going RFP
19 for solar resources,the 2017S RFP.
20 UPDATED 2017R RFP FINAL SHORTLIST
21 Q.Did the company update the list of winning bids from the 2017R RFP?
22 A.Yes.The company's 109 MW McFadden Ridge II benchmark resource was removed
23 from the final shortlist and replaced with the company's 250 MW Ekola Flats
O
Link,Di-Second Supp -2
Rocky Mountain Power
l CORRECTED Table 2-SS Updated SO Model and PaR PVRR(d)
(Benefit)/Cost of the Combined Projects ($million)
Second Supplemental Direct Supplemental Direct
(IInd =ted Final Shrrtlist)(Oriv nnl Final Shortlist)
PaR PaR
Stochastic PaR Risk-Stochastic PaR Risk-
SO Model Mean Adjusted SO Model Mean Adjusted
Price-Policy Scenario PVRR(d)PVRR(d)PVRR(d)PVRR(d)PVRR(d)PVRR(d)
Low Gas,Zero CO2 ($185)($-1-24_1_5_0)($4-3-2156)($145)($-MMl26)($-M)913_1)
Low Gas,Medium CO2 ($208)($4451_79)($144188)($186)($-1-24J4_6)($4-34_1_5_2)
I Low Gas,High CO2 ($370)($N-3M)($M355)($297)($¾8_2_80)($272294)
Medium Gas,Zero CO2 ($377)($295319)($¾e334)($306)($246268)($2482810)
Medium Gas,Medium CO2 ($405)($33&351)($3623_8_6)($343)($¾-1-333)($-3-2949)
Medium Gas,High CO2 ($489)$(424448)($445469)($430)($388409)($496428)
High Gas,Zero CO2 ($699)($545568)($6-7-259_6)($619)($599531)($-955_52)
High Gas,Medium CO2 ($716)($6-796_(0_3)($609633)($636)($5 9561)($567_5_88)
High Gas,High CO2 ($781)($674_694)($79572_8)($696)($60 627)($434658)
2 Over a 20-year period,the Combined Projects reduce customer costs in all nine
3 price-policy scenarios.This outcome is consistent in both the SO model and PaR
4 results.Under the central price-policy scenario,when applying medium natural gas,
5 medium CO2 price-policy assumptions,the PVRR(d)net benefits range between
6 $3 -3M million (up from $3-1--LE million),when derived from PaR stochastic-mean
7 results,and $405 million (up from $343 million),when derived from SO model results.
8 Net benefits increase relative to those shown in my supplemental direct testimony.This
9 is driven by the increased interconnection capacity associated with the Aeolus-to-
O
Link,Di-Second Supp -14
Rocky Mountain Power
1 CORRECTED Table 3-SS.Updated Nominal Revenue RequirementPVRR(d)
(Benefit)/Cost of the Combined Projects ($million)
Second
Supplemental Supplemental
Direct Direct
(Updated Final (Original Final
Price-Policy Scenario Shortlist)Shortlist)
Low Gas,Zero CO2 $‡&-5_1_84 $-149195
Low Gas,Medium CO2 $981_22 $-1-311_2
Low Gas,High CO2 ($1-76_l_42)($19529)
Medium Gas,Zero CO2 ()($NE)
Medium Gas,Medium CO2 ($l94_1_62)($4-17_12)
Medium Gas,High CO2 ($&&3_04)($341K)
High Gas,Zero CO2 ($422448)($4&74R)
High Gas,Medium CO2 ($98499)($4-194¾)
I High Gas.High CO2 ($4646¾)($5852)
O
2 When system costs and benefits from the Combined Projects are extended out
3 through 2050,covering the full depreciable life of the owned-wind projects included in
4 the updated 2017R RFP final shortlist,the Combined Projects reduce customer costs in
5 seven out of nine price-policy scenarios.Customer net benefits range from $-1-2-1-92
6 million in the medium natural-gas,zero CO2 price-policy scenario (up from $603_4
7 million)to $664 million in the high natural gas,high CO2 price-policy scenario (up
8 from $-586 million).Under the central price-policy scenario,when applying
9 medium natural gas,medium CO2 price-policy assumptions,the PVRR(d)benefits of
10 the Combined Projects are $-WGBmillion (up from $-17-715 l million).The Combined
11 Projects provide significant customer benefits in all price-policy scenarios,and the net
12 benefits are unfavorable only when low natural-gas prices are paired with zero or
Link,Di-Second Supp -17
Rocky Mountain Power
1 CORRECTED Figure 1-SS Updated Total-System Annual Revenue Requirement
With the Combined Projects (Benefit)/Cost ($million)
$60
$40
($80)
($100)
($120)
2 The data shown in this figure for the updated economic analysis have the same
3 basic profile as the data from the economic analysis summarized in my supplemental
4 direct testimony.Despite a reductionin PTC benefits associated with changes in federal
5 tax law,the reduced costs from winning bids from the 2017R RFP continue to generate
6 substantial near-term customer benefits and continue to contributeto customer benefits
7 over the long term.The Combined Projects produce net benefits in 23 years out of the
8 30 years that the proposed owned-wind resources selected to the 2017R RFP final
9 shortlist are assumed to operate.
10 As noted in my supplemental direct testimony,the year-on-year reduction in net
11 benefits from 2036 to 2037 is driven by the company's conservative approach to
12 extrapolate benefits from 2037 through 2050 based on modeled results from the 2028-
13 through-2036time frame.This leads to an abrupt reduction in the benefits in 2037,and
14 a subsequent year-on-year reduction to net benefits,which breaks from the trend
Link,Di-Second Supp -20
Rocky Mountain Power
l CORRECTED Table 4-SS Updated Solar Sensitivitywith Solar PPAs Included
in lieu of the Combined Projects (Benefit)/Cost ($million)
Sensitivity Benchmark Change in
PVRR(d)PVRR(d)PVRR(d)
Medium Gas,Medium CO,
SO Model ($343)($405)$61
PaR Stochastic Mean ($-246228)($333357)$42-7129
PaR Risk Adjusted ($-3-14237)($3G2386)$446149
Low Gas.Zero CO,
SO Model ($196)($185)($11)
PaR Stochastic Mean ($-1-23139)($4-24150)$311
PaR Risk Adiusted ($-¥30145)($-1--3-2156)$11
2 In this sensitivity,the SO model selects 1,122 MW of solar PPA bids in the low
3 natural gas,zero CO2 price-policy scenario and 1,419 MW of solar PPA bids in the
4 medium natural gas,medium CO2 price-policy scenario.All of the selected solar PPA
5 bids are for projects located in Utah.
6 In the medium natural gas,medium CO2 price-policy scenario,a portfolio with
7 the Combined Projects delivers greater customer benefits relative to a portfolio that
8 adds solar PPA bids without the Combined Projects.Customer benefits are greater
9 when the resource portfolio includes the Combined Projects without solar PPA bids by
10 $-146_149 million in the medium natural gas,medium CO2 price-policy scenario based
11 on the risk-adjusted PaR results.In the low natural gas,zero CO2price-policy scenario,
12 the portfolio with the Combined Projects delivers slightly greater customer benefits
13 relative to a portfolio that adds solar PPA bids without the Combined Projects when
14 modeled in PaR,and slightly lower customer benefits when analyzed with the SO
15 model.The decrease in net benefits in the solar PPA portfolio is $31_l million based on
16 the risk-adjusted PaR results.
Link,Di-Second Supp -22
Rocky Mountain Power
l CORRECTED Table 5-SS Updated Solar Sensitivitywith Solar PPAs Included
With the Combined Projects (Benefit)/Cost ($million)
Sensitivity Benchmark Change in
PVRR(d)PVRR(d)PVRR(d)
Medium Gas,Medium CO,
SO Model ($647)($405)($242)
PaR Stochastic Mean ($4-¾519)($33-1357)($4-22163)
PaR Risk Adiusted ($4-79543)($-342386)($-144157)
Low Gas,Zero CO,
SO Model ($312)($185)($127)
PaR Stochastic Mean ($4-9-7250)($-1-24150)($-½100)
PaR Risk Adjusted ($-296259)($-1-3-3156)($-74103)
2 In this sensitivity,the SO model continues to choose the winning bids included
3 in the updated 2017R RFP final shortlist as part of the least-cost bid portfolio.In
4 addition to these wind resource selections,the SO model selects 1,042 MW of solar
5 PPA bids in the low natural gas,zero CO2 price-policy scenario and 1,419 MW of solar
6 PPA bids in the medium natural gas,medium CO2 price-policy scenario.Again,all of
7 the selected solar PPA bids are for projects located in Utah.
8 When the solar PPAs are assumed to be pursued in addition to the Combined
9 Projects,total net customer benefits increase.This result is consistent with the
10 company's expectation expressed during the technical conference conducted on
11 January 17,2018 that cost-effective solar opportunities would not displace the
12 Combined Projects,but would only potentially add to incremental resource
13 procurement opportunities that might provide net customer benefits.Importantly,this
14 sensitivity produces net benefits that are greater than the net benefits from the
15 Combined Projects without the solar PPAs.This confirms that near-term renewable
16 procurement is not a matter of whether the company should pursue the Combined
17 Projects or the solar PPAs,but whether the company should consider both
Link,Di-Second Supp -24
Rocky Mountain Power
l opportunities.At this time,it is clear that the Combined Projects provide significant net
2 benefits,and that these benefits are not eliminated if the company were to also pursue
3 solar PPA bids through the 2017S RFP.
4 WIND-REPOWERING SENSITIVITY
5 Q.Has the company updated its sensitivityanalysis related to the wind repowering
6 project?
7 A.Yes.The wind repowering sensitivity was updated to reflect the updated final shortlist
8 and to reflect the most recent cost-and performance estimates for the wind repowering
9 project as described in my supplemental direct testimony filed in Case No.
10 PAC-E-17-06.
11 Q.What were the results of the updated wind-repoweringsensitivity?
12 A.Table 6-SS summarizes PVRR(d)results for this wind-repowering sensitivity.ThisO13sensitivitywasdevelopedusingSOmodelandPaRsimulationsthrough2036forthe
14 medium natural-gas,medium CO2 and the low natural-gas,zero CO2 price-policy
15 scenarios.The results are shown alongside the benchmark study in which the Combined
16 Projects were evaluated without wind repowering.
17 CORRECTED Table 6-SS Wind-Repowering
Sensitivity (Benefit)/Cost ($million)
Sensitivity Benchmark Change in
PVRR(d)|PVRR(d)PVRR(d)
Medium Gas,Medium CO2
SO Model ($608)($405)($204)
PaR Stochastic Mean ($51-7541)($333357)($184)
PaR Risk Adjusted ($64G_56_7)($62386)($181)
Low Gas,Zero CO2
SO Model ($334)($185)($149)
PaR Stochastic Mean ($¾-728_l)($-1-2-ALS0)($131)
PaR Risk Adjusted ($2-N295)($-1-121_S6)($138)
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Link,Di-Second Supp -25
Rocky Mountain Power