20210224Reply Comments.pdf

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1407 W. North Temple, Suite 330
Salt Lake City, Utah 84116
February 24,2021
ELECTRONIC DELIWRY
Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8 Suite 20lA
Boise,lD 83714
RE: CASE NO. PAC-E-20-14
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER FOR
AUTHORIZATION TO UPDATE THE WIND AND SOLAR INTEGRATION RATE
FOR SMALL POWER GENERATION QUALIFYING FACILITIES
Attention: Jan Noriyuki
Commission Secretary
Please find for filing Rocky Mountain Power's reply comments in the above-referenced matter
and Attachment A.
Informal inquiries may be directed to Ted Weston, ldaho Regulatory Manager at (801) 220-
2963.
Very truly yours,
"^,.D
Vice President, Regulation
Emily Wegener
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake city, Utah 84116
Telephone: [phone]
Attomey for Rocky Mountain Power
BEFORE TI{E IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
oF ROCKY MOUNTATN POWER FOR )
AUTHORTZATTON TO UPDATE THE WIND )
AND SOLAR INTEGRATION RATE FOR )
SMALL POWER GENERATTON )
QUALIFYING FACILITIES )
CASE NO. PAC-E.20.I4
REPLY COMMENTS
Comes now Rocky Mountain Power, a division of PacifiCorp ("the Company"), in
response to the Notice of Modified Procedure issued in Order No. 34888 on January 12,2021 and
submits the following reply comments.
I. BACKGROUND
1. On October 8,2020,the Company filed Application with the ldaho Public Utilities
Commission ("Commission") requesting authority to increase the wind and solar integration rates
applicable for new power purchase agreements ("PPAs") between the Company and wind and
solar quali$ing facilities ("QFs").
2. The Company requested authorization to increase the integration costs for new
wind PPAs from $0.57 to $1.11 per megawatt-hour ("MWh") and the integration costs for new
solar PPAs from $0.60 to $0.85 per MWh, based on the Surrogate Avoided Resource calculation
method.
3. On February 12,2021, Commission Staff filed comments summarizing their review
of the Company's application. During staff s review they identified an error in the calculation of
REPLY COMMENTS OF ROCKY MOUNTAIN POWER I
the wind integration rate. This error understated the wind integration rate by approximately one
percent.
4. Staff recommended that the Commission approve the solar integration rates as
shown in Attachment A and that the Company should file updated wind integration rates so the
Commission could approve the corrected wind integration rates.
5. Staff also supported the changes to the methodology proposed by the Company
noting: "By changing the method, the Company can reflect a truer picture of how integration rates
will change as the amount ofwind and solar are added to the system and as the amount of regulating
reserve resources are added or retired from the system."
6. The Company appreciates Staffls review of the Application and support of the
improvements to the method used to calculate these integration costs. The Company expects to
continue to refine integration cost calculations in future Integrated Resource Plans.
7. The Company has corrected the formula error identified by staff. Provided as
Attachment A with these comments are the corrected integration rates. Table F.2 has also been
updated with the corrected wind integration rate.
Table F.2 -2019 FRS Flexible Resource Costs as Compared to20l7 Costs, $/1VIWh
Studv Period 20t7 2017 2018-2036 2018-2036
Intra-hour Reserve $0.43 $0.46 $1.12 $0.8s
Inter-hour System
Balancins $0.14 $0.14 nla nla
Flexible Resource Cost $0.s7 $0.60 $1.12 $0.85
REPLY COMMENTS OF ROCKY MOUNTAIN POWER 2
REQUEST TOR RELIEF
WHEREFORE, with tis correction to the wind integration rate Rocky Mountain Power
respectfully requests that the Commission issue an Order approving the wind integration rate of
$1.12 per MWh for wind powered QFs and the solar integration rate of $0.85 per MWh.
RESPECTFLJLLY SUBMITTED this 24h day of February,2O2l
Rocky Mountain Power
By
Emily egener
Rocky Mountain Power
JREPLY COMMENTS OF ROCKY MOUNTAIN POWER
Attachment A
Table 1, wind lnt€sation Charres 7.98% SAR Approved PCP WACC
Non-Levelized Rates
Year S/Mwh
Levelized Rates
Contract LenEth
Online Year2023 2024202L 2022 202s 2026
20zt
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
z0!,O
2447
2042
20/,3
2044
2045
0.19
0.27
0.29
0.36
0.62
0.4s
0.70
0.94
1.31
1.63
1.65
L.77
1.81
L.77
L.74
1.60
1.53
L.67
r.77
1.75
7.79
1.83
L.87
1.91
1.95
I
2
3
4
5
6
7
8
9
10
11
72
13
L4
15
16
t7
18
19
z0
27
22
23
24
25
s0.19
S0.23
s0.2s
50.27
S0.33
S0.35
So.3s
5o.l+
5o.sr
So.se
S0.65
S0.71
S0.76
So.80
S0.84
s0.86
S0.89
S0.91
S0.93
S0.94
s0.27
S0.28
So.3o
S0.37
S0.39
S0.43
S0.49
S0.56
So.6s
50.72
S0.78
S0.84
S0.88
S0.92
S0.94
s0.96
s0.98
S1.oo
s1.02
s0.29
S0.32
S0.41
S0.42
S0.47
S0.54
S0.52
5o.72
$0.79
s0.86
S0.92
S0.96
S1.oo
S1.02
S1.04
S1.06
S1.08
S1.10
s1.12
s0.36
S0.48
$o.az
So.s2
s0.60
$0.6s
s0.80
s0.88
So.9s
S1.01
s1.0s
s1.09
S1.11
$r.r+
S1.1s
s1.17
S1.19
51.21
5L.22
s0.52
So.s4
So.s9
S0.57
S0.78
S0.89
S0.98
51.0s
s1.11
s1.15
s1.19
S1.21
51.23
91.2s
51.27
S1.28
s1.30
S1.31
s1.33
s1.34
s0.4s
$o.sz
S0.69
S0.82
S0.96
S1.os
S1.13
S1.20
S1.24
S1.28
S1.30
S1.32
s1.33
s1.3s
S1.36
S1.38
S1.39
S1.40
S1.41
S1.43s1.04 s1.13 $1.24
Trbb 2. Sobr InE{Etlon Ch.nc.7.98% SAR Approvcd PCP WACC
Ratcs Ycar
2022
202X
2024
202s
2026
2027
2028
2029
2030
2031
2032
2033
203!-
203s
2036
2037
2038
2039
2W
20,1
20!.2
2043
2W
2045
0.15
o.2z
0.24
0.29
0.9)
0.37
0.55
0.76
1.05
1.31
L.32
t.42
1.45
L.4Z
1.rlo
1.28
1.31
1.!!4
L.X7
1.41t.4
t47
1.s0
1.54
,.57
2
3
4
5
6
7
8
9
10
11
LZ
13
t4
15
16
L7
18
T'
20
2t
22
23
24
25
So.zr
$0.24
So.3o
S0.31
So.3s
S0.39
So.ls
So.sz
So.s8
S0.63
$0.67
S0.zr
5o.za
s0.76
50.77
S0.79
S0.81
S0.82
$0.83
So.zs
$0.33
S0.34
S0.38
S0.43
So.so
s0.s8
S0.64
$o.eg
$0.74
So.zz
90.80
So.82
S0.84
$o.es
$o.sz
90.89
90.90
$o.gl
So.3e
$0.38
S0.+z
S0.48
So.s6
$o.en
$o.zl.
S0.76
$0.81
So.8s
S0.88
$0.90
S0.91
So.gs
$0.94
S0.96
S0.97
$0.s8
$o.gg
S0.43
S0.47
So.s4
$0.62
S0.72
$0.79
$0.85
S0.89
s0.93
s0.96
S0.98
$0.99
S1.01
S1.02
S1.03
S1.04
Sl.oG
Sr.oz
St.o8
S0.45
So.ss
S0.66
50.zz
S0.85
50.91
S0.96
Sl.oo
S1.03
Sl.o4
s1.06
Sr.oz
s1.08
S1.10
S1.u
S1.u
$1.13
S1.14
$1.1s
S0.18
$0.20
S0.22
50.27
S0.28
S0.31
s0.3s
$o.lr
S0.47
$0.s2
$0.s7
S0.51
So.6s
S0.67
S0.59
S0.71
S0.73
5o.t+
So.ze
CERTIFICATE OF SERYICE
I hereby certiff that on this 24ft of February,202l,I caused to be served, via electronic
mail delivery a true and correct copy of Rocky Mountain Power's Reply Comments in Case No.
PAC-E-20-14 to the following:
Service List
Dated this 24ft day of February,Z\Zl.
Ve,
Katie Savarin
Coordinator, Regulatory Operations
Rockv Mountain Power
Ted Weston
PacifiCorp/ dba Rocky Mountain Power
1407 West North Temple
Suite 330
Salt Lake City, UT 84116
ted.weston@pacifi corp.com
Emily Wegener
PacifiCorp/ dba Rocky Mountain Power
1407 West North Temple
Suite 320
Salt Lake City, UT 84116
emily.wegener@pacifi corp.com
Data Request Response Center
PacifiCorp
datarequest@pacifi corp.com
Commission Staff
John R. Hammond Jr.
Deputy Attomey General
Idaho Public Utilities Commission
ll33l W. ChindenBlvd., BldgNo.8,
suite 201-A' (83714)
PO Box 83720
Boise, lD 83720-0074
i [e-mail]. gov
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