20180524Application.pdf

Y ROCKY MOUNTAIN
BPlly,E^n",,
R =CEIViD
?il1f; ti.f,\' 2t{ A}l 9' 38
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1407 West North Temple, Suite 330
Salt Lake City, Utah 84116
May 24,2018
VA OVERNIGHT DELIVERY
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472 W. WashinSon
Boise, lD 83702
RE: PAC-E-18-05
IN THE MATTER OF THE APPLICATION OF ROCKY MOI]NTAIN POWER
REQUESTING APPROVAL OF THE AI\I\ruAL REVISION TO QF VARIABLE ENERGY
PRICES PT]RSUANT TO TERMS OF THE 1992 AMEI\DMENTS TO POWER PURCHASE
AGREEMENTS BETWEEN IDAHO QFS AI\D 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,
Vice ,gulation
t^-.D
Daniel Solander (ISB# 8931)
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake Ciry, Utah 84116
Telephone : [phone]
Fax: [phone]
Email : Daniel. Solander@Pacifi Corp.com
Attorneyfor Rocky 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\T TO TERMS
OF THE 1992 AMENDMENTS TO POWER
PURCHASE AGREEMENTS BETWEEN
IDAHO QFs AITID PACIFICORP
CASE NO. PAC-E.18-05
APPLICATION
Rocky Mountain Power, a division of PacifiCorp ("Company" or "Rocky Mountain
Power"), in accordance with Idaho Code $ 6l-503, RP 52, and Order No. 29316, hereby
respectfully petitions the Idaho Public Utilities Commission ("Commission") for an order
approving the updated Qualifying 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:
I. INTRODUCTION AI{D BACKGROUND
In 2003, the Company sent a letter notifying the Commission of a July 1, 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
methodology that would be used for determining the variable energy price component of the
avoided cost rate.
I
As stated inthe 1992 Amendment, beginning July I ,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 coalplants 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 I 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 fuelconsumed by the specified Utah division coalplants for calendar
year 2017 was $22.16 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 l, 2018, extending through June 30, 2019, is $23.67 per
megawatt hour. An attachment is provided with this Application supporting this calculation, along
with the relevant pages from the Company's FERC Form 1 for the year ending December 31,2017 .
2
III. MODIFIED 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 A}[D SERVICE OF PLEADINGS
Communications regarding this Application should be addressed to:
Ted Weston
Rocky Mountain Power
Idaho Regulatory Affairs Manager
1407 W. North Temple, Suite 330
Salt Lake City UT 841l6
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 841l6
Telephone: [phone]
Facsimile: (801) 220-461 5
E-mai I : daniel. solander@nacifi corp.com
In addition, Rocky Mountain Power respectfully requests that all data requests regarding this
maffer be addressed to:
By e-mail (preferred): [e-mail]
By regular mail:
PacifiCorp
Data Request Response Center
825 NE Multnomah, Suite 2000
Portland, OR 97232
Informal inquires also may be directed to Ted Weston at [phone]
J
v. REQUEST FOR RELTEF
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 $23.67 per megawatt hour applicable to the energy delivered from the thirteen 1992 QF
contracts commencing July 1,2018, extending through June 30,2019.
Respectfully submitted this 24th day of May,2Ol8
TA,t 4'hh
DanielE. Solander
Rocky Mountain Power
1407 West North Temple
Salt Lake City, Utah 841l6
Telephone (801 ) 220-4050
Fax: [phone]
E-mai I : daniel. solander@pacifi corp.com
Attorneyfor Rocky Mountain Power
4
ATTACHMENT
Carbon
PacifiGorp
Total Variable Energy Rate
for 2018 I 2019
Naughton Huntington Hunter Totals
$ 105,04s,552 $ 138,300,998 $ 14s,938,639 $ 389,285,189
4,740,158 5,399,777 7,429,297 17,569,232
22.16
1.51
23.67
FuelCost ($) $
2017 FERC FORM 'l - Page 402 Line 20
Generation (MWH)
2017 FERC FORM 1 - Page 402 Line '12
Average Fuel Cost ($/MtArttl
Variable O&M
TotalVariable Energy Rate for 2018 12019
For deliveries commencing July 1, 2018 extending through June 30, 2019
12 PacifiCorp/QFs contracts with approved 1992 amendment language
$
$
$
/MWH
/MWH
/M\ /H
Pacl{lCorp tl End of 2O17lQ4
STEA[4-ELECTRIC GENERATING PIINT STAISTTS Gargo Plarn&) (Conilnued)
of orKw lllono.steamanE wlOr lnstalled in25,(mplate2.plants plants capedty retnS)LargchrSenlcoinonly.1 datE plttl orKw and nudearof lndlcate3.foottob leased1o,(tro morE,plenb.dantscombus0on by 8nyplant or operaladlnbmalandgm{rbinethlspeg.lrminut6 mt data lBwfilcfi ]f5.60 ryaileble,Slve avallablc,for atbndreedfyhgp€rlod.ddnartd employeosany4.neitf p38kaastsdllty.lolnt ofnumber emhto usedIElf6.11 tto awrag6 alslgnableemployo€r and ot1llnaapproximatoplant,on g8E purchaeedongftanplantruporlrmr€the olfuel @n\€rtodbumed Mct.to ofQuantltes bumedtud7guantltyor tho and 6Et9.8contcntBtu (Llno 38)8\,AragBbalts$eUsmt?o[t wittconslstert b ac@unts and 547 onshor 20.Line501 lf6.11 be drarges sxponSc (Llnemust thanmono on€12)tuolof )bumodunlt (Unep6r rateh6t allior bumed.fualsth€a compoeiteonlytumbhhrrnodirlntuslphnt
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Name: &a&i*rLlne
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Item
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Plant
Name: lktdtfui
Steamof Plant NudearGas1 Sleam
Type of Condr(Conwntionel, OuUoor. Boll€r' cilc)Outdmr Boller2 Ou6oor Boller
15743Ye* Orlglnally Conshrct€d 196it
Yaar LBt Unit wBr lns{alled 1g7S4 1gt1
5 Gen NamePhe 1550.65 707.20
0 Net Poak Demand on Plant - MW (00 minutes)1419 650
7 Plant Hours Connecbd to Load 8760 8745
8 ConUnuoue Plsnt 0 0
I whon Not Llmited by Cottdgls€rWater 1415 637
0't0 Itvhan Llmited by Condenser Water 0
11 Average Number ot Emphyee6 341 130
12 87498820fl)Net Gen'satim, Exoluslvo of Plant Uso - Kwh 4740158000
13 Coet o{ Plant Land and l*ord Rlgrhts 1103701 1321031
14 Sbucfu rs8 and lmprov?m€nts 147284321 125020741
15 Equlpment C6ts 1242939m4 668.217E/l
16 Asset Retlrement Coets 1S61 1 lr6 44S052S1
17 Total Cost 141 1028802 840{64904
809.95S618par KW of lnsEll€d '118,i.41o2
19 &14143146,375600
20 258'tt191Fual 1@{5562
21 CoolantE and Water (Nuolaar Plante Only)0 0
17041 13922Sbam Epensc 96tt5314
23 Sbam Frorn Other Sources 0 0
21 Transfened 0 0
25 Elecfolc Expensos 0 28814
26 Sbam Porver -23381682 9389463
27 Rente 362386 1'f350
28 AtolrJanc6 0 0
2S 801608Malntanance SupeMslon and Englneedng 1699478
30 Malntenance ol StruGfu 168 10731980 1m75{l,
25402 831Malntenance of Boiler (or rcactor) Plant 98/t7880
32 Malnbnance of Eleolric Plant 7886317 34081 13
204357633Msint6nan6 of Mbc Stean 1 197315vTotal Pmducdon Eeenses 314S0020S 1417891i1
0.036035Elpanses per Net l(Wh 0.029s
Coal oll36Fuel: Knd (coal, Gas, Oil, or Nudear)Compoaite CGI G!.ComposiE
37 Unit (Cel-{ord0Fbrrdrcas-mc{N$loarindicata)Ton!Bansls Tons MCF
,f93fiX8 1354938Quantity (Unlta) of Fuel Bumed 0 2c21288 79859 0
30 Avs Hrst Cont - Fuel Bumed (bMndlcata if nudear)9141 138m0 0 9884 1048 0
47.577 78.S00 0.m04Avg Cctof Fu,eUunit. as Dalvd f.o.b. during yar 0.ofl)3S570 8.625
41 Average CGtof Fuel por Unlt Bumed 52.385 78.900 0.0o0 39.872 0.825 0.000
2.850 '13.61342Awnage Cost of F'J6l Bumed per Mllllon BTU 2.859 2.015 0.323 2.022
,13 Awragp Costof Fuel Bunred per l(Wtt N€t G€n 0.030 0.000 0.030 0.022 0.o220.000
10357.635 8.0754Awrags BTU per KWtr Net Gen.leton 10366.610 100'12.185 17.62 1095S.S17I
FERC FORn NO. r (RE\r. r2{B)Pegc 402.2
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Endof 2O17lQ4
STEAM-ELECTRIC GENERATING PIINT STATISTICS (targe Ptanb)(Comirud)
9. ltrns under C.;oct of Phnt ar€ b€s6d on U. S. of A" Acoounb, Pro<lucilon ogcnse8 do not indrd. Pultfiased Po$,oc Sydorn Conhol end Load
Disptrhlng, and Olher E g6nsr6 Clarclfed as Ottpr Porrs Supply Epcnros. '10. For lC end GT plants, Eport Operatng Expenaee, Acoount Nor.
547 and 549 on Llne 25 'Elec{rlc E,(pen!oe,'and M.lntonanco Account lloc. 563 and 55/1 on Line 3i!, 'Malnlananco of Elhctlc Plant' lndcab plantt
dcclgned for psak loEd Eorvbc. Dcsbnsto automa0cally opcrated phntc. 't 1 . For e plant oqulpped wltr comblnatoo! of brcl fuel stcan , nucleer
obam, hydrc, inbmal combuedon or gia3{rrblno equlpment, r€pod cecrr aa a rcparatc plant. }lorever, tf a ga!.t lblno unit func{ions ln a combln d cyd€
oporatbn ud0r a convanuonsl 6toam unlt, lndude lhe gar-turbine wi[t tho ste6m plart 12. lf a nuclaar poler gcn€raflng pl.nt bdefiy lxdain by
bohotc (a) e@un{ng mcthod for cost of powsr gancralad lnduding any exceos coats a&ibubd to mreruh and devdopmcnt; (b) tyDa of coat unlb
uecd fur lho varbus component8 of frd oost: and (c) any ofter lnbrmatlw data concamlng plant typc firel u3€d, fuol onrictmsnt typo and quarilty br thc
rgpod pskd and olher phyalcal and opordng charac{.tk0cs of plaqt.
Plrnt
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Plant
Name: Hundnglon
(0
Line
No.
Steam Steam Steem 1
Ouuoor Boil€r Oudoor Boller Outdoor Boiler 2
1S83 1978 1974 3
'ts83 1983 1577 4
495_50 1247.78 s06.00 5
489 1*t3 899 6
s622 8760 8760 7
0 0 0 8
471 1 158 909 I
0 0 0 't0
0 2t8 160 't1
313'1673000 7129297A00 5399777000 '12
r0274569 2065r0s1 23n5a4 13
92586505 211259392 124572764 14
4473:t3401 1074215896 7359fi242 15
471828/J 14154864 r0531294 16
5549'l276il 132928'.t443 077117844 17
1119.7013 100F.3172 880.9416 't8
0 0 6773 19
@572842 r45938639 r38:m0998 N
0 o 0,21
6E4:t607 1 7534304 12417E47 22
0 0 0 23
0 0 0 24
-1998 -1?*2 0 25
171056S -1717550 526805 26
11747 't3011 7248 27
0 0 0 28
0 0..1517280 m
27fi978 74e412 218,l881 30
5582586 15420562 7'l063rli}3'l
I r r3513 3882591 107t406 32
56S179 1065215 87,U5il 3:t
701}}113 189il36l2 18.0793894 v
o.0252
Co.l oil
0.0255
Coal
0.03u;
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35
36
Tong Bansls Tons Banels Tons Banels 37
'112&W 1'1069 0 3454932 136.10 0 2479026 6323 0 38
11111 138000 0 11174 138000 0 r13A0 138000 0 39
0.000 0.000 0.000 42.O72 81.669 0.0m 55.886 79.5O2 0.000 &
41.E98 0.mo 0.000 4r.918 81.669 0.m0 55.585 79.*2 0.000 41
1.885 14.127 1.910 1.870 14.091 1.888 2.418 13.785 2-455 42
0.019 0,000 0.0't9 0.019 0.000 0.019 0.026 0.000 0.026 43
100S5.160 N.87 101't5,627 10392.q)3 10.&f1 1oim3.r44 104,25-202 6.787 tO'litt.080 44
FERC FoRr xo. I (REV. 12-03)Pag. 403.1