20220209Bi-Annual Report.pdf

Y ROCKY MOUNTAIN
FOvt/ER
Salt Lake ciry, utah 84116
February 9,2022
VIA ELECTRONIC DELIVERY
Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
I l33l W. Chinden Blvd
Building 8 Suite 20lA
Boise,ID 83714
Re: CASE NO. PAC-E-21-01
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER
FOR APPROVAL OF THE TRANSFER OF THE LOWER KLAMATH
HYDROELECTRIC PROJECT GENERATING FACILITIES
I. BACKGROUND
On January 14,2021, PacifiCorp, (the "Compatry"), filed an application with the Idaho
Public Utilities Commission, ("Commission"), requesting an order approving the Property
Transfer Agreement, ("Transfer Agreement"), between the Company and the Klamath River
Renewal Corporation, (o'Renewal Corporation"), with a determination that the property disposition
is in the public interest. The Transfer Agreement provided for the transfer of four hydroelectric
dams; J.C. Boyle, Copco No. l, Copco No. 2, and Iron Gate, (collectively the o'Lower Klamath
Project"), as well as approximately 8,000 acres of real and personal property associated with the
dams from PacifiCorp to the Renewal Corporation.
On July 8, 2021, the Commission issued Order No. 35097; approving the Transfer
Agreement, authorizing the Company to create a regulatory asset for any remaining plant balances
after the transfer, and requiring PacifiCorp to file bi-annual reports with the Commission on the
I
status of the license transfer with the Federal Energy Regulatory Commission, ("FERC"), and any
additional capital investments on the Lower Klamath Project.
Pursuant to OrderNo.35097 PacifiCorp hereby submits its first status report on the license
transfer along with new capital expenditures and the December 31,2021, plant balance of the
Lower Klamath Project. The report covers the period of June 1,2021, through December 31,2021.
II. BI-ANINUAL REPORT
On June 17,2021, FERC issued an orderl approving PacifiCorp's application to transfer
the license for the Lower Klamath Project, FERC Project No. 14803, to the Klamath River
Renewal Corporation, the State of Oregon, and the State of California, (the "Co-Licensees").
Approval of the transfer will be effective upon transfer ofthe title ofthe properties underthe Lower
Klamath Project to the Co-Licensees and the acceptance of FERC's license transfer order by the
Co-Licensees. These two actions must occur within 30 days of FERC issuing an order on the
application to surrender the license for the Lower Klamath Project. FERC's license transfer order
required PacifiCorp to develop revised license Exhibits K and L for the Lower Klamath Project as
well as the Klamath Hydroelectric Project, FERC Project No. 2082. PacifiCorp filed the revised
Exhibits K and L with FERC on December 14,2021.
Substantial progress continues to be made with respect to FERC's review of the license
surrender application. On June 17, 2021, FERC issued a notice of intent to prepare an
environmental scoping document and an environmental impact statement for the license surrender
and decommissioning application. The environmental review process is ongoing. On December
17,2021, the National Marine Fisheries Service issued a biological opinion pursuant to the
Endangered Species Act on the dam removal proposal; on December 22, 2021, the U.S. Fish and
Wildlife Service issued also issued its opinion.
I PacifiCorp, Order Approving Transfer of License, 175 FERC n il,236 (2021),Issued June 17,2021, Project Nos.
2082-062, I 4803-000, I 4803-004, FERC Accession #: 2021061 7-3060.
PacifiCorp is obligated under the terms of the Klamath Hydroelectric Settlement
Agreement to continue to operate and maintain the Lower Klamath Project in compliance with the
existing FERC license and other regulatory requirements until the Lower Klamath Project is
disconnected from the electrical grid and no longer benefitting customers with generation
produced from the facilities. This obligation continues after the facilities are transferred to the Co-
Licensees until the Co-Licensees notiff PacifiCorp that generation from the Lower Klamath
Project can cease. PacifiCorp, as the current licensee of the Lower Klamath Project and the
Klamath Hydroelectric Project, must continue to make any necessary capital improvements to the
facilities to ensure their continued safe and reliable operation until they are disconnected from the
electrical grid pursuant to the FERC license surrender order.
III. CAPITAL EXPENDITURES
PacifiCorp's total capital improvement expenditures to support the continued operation of
the Lower Klamath Project during calendar year202l were $1.861 million as summarized in Table
l. This includes projects initiated prior to calendar year 2021that had expenditures transferred to
electric plant in-service during the year. Of the 24 projects listed in Table I only four, or $0.569
million of the $1.861 million transferred to electric plan in-service are new 2021capital projects.
Table 1. Lower Klamath Project Capital Additions Placed In-Service in202l
Project Delinition Project Description Amount ($)
HKCN202yCl0t7
HKOR/20201C1002
HKOR/2020lCl0tt
rJ(cN2020lcl009
HKOR/2020/C/010
rfKCN2020/Cl0ll
Ifl(cN2020lct007
IJK,CN202ycl0t3
HKCd2ol9lcl006
HKCN2020/C/010
rJr,.cN202ycl0l6
TTKCN2O2I/CIOI'
r,J(CN2020/C/008
HKOR/2020/C1003
Copco 2l Brake Rotor Refurbishment
JC Boyle Trash Rake Refurbishment
JCB Fish Ladder Weir Actuator Upgrade
Iron Gate Fish Attraction Pump Rebuild
JC Boyle Replace Controls
Klamath Utility Terrain Vehicle
IGH Fish Tray Heater Upgrade
IKL 7.6.6.A. Forklift Procurement
Copco I I Replace Governor Controller
Klamath All-Terrain Vehicle
IG Hatchery Building Door Replacement
IKL 2.1.5 Klamath Data Sondes Sensors
IGH Aux Fish Trap Grates
JC Boyle Replace Spill Gate Heating Syst
502,378.77
323,146.92
316,259.86
308,834.44
220,315.05
49,841.62
45,880.27
44,534.97
31,626.29
20,362.21
17,560.30
4,989.25
4,528.92
3,684.62
Project Definition Project Description Amount ($)
HKCA/2O19/Ct00s
HKCAl2020lCt002
HKOR/2ol7lC/004
HKCN2020/C1003
HKOR/2o19/Ct006
HKOR/2020/C/006
HKCA/2018/C/008
HKOR/2O17/C/006
HKOR/2020/C/007
HKOR/20201Ct009
1,029.30
977.84
782.93
675.00
301.13
58.04
(5,051.40)
(8,687.57)
(10,016.58)
(12,827.00)
Copco Waterline Section Replacement
Iron Gate Replace Exciter Field Brush
JC Boyle I and2 Refurbish Exciters
Copco Storage Cabinets
JC Boyle Vibration Monitoring System
JC Boyle Red Barn Roof Replacement
Iron Gate Reinsulate Generator
JC Boyle Tailrace Stop Logs
IGH Office Window Refurbishment
JC Boyle Fish Screen Pump Replacement
Grand Total $1,861,185.18
The Lower Klamath Project's net book value, electric plant in-service less accumulated
depreciation reserve balances, as of December 31, 2021, along with the annual depreciation
expense for are summarized in Table 2.
Table 2. Lower Klamath Project Net Book Value - December 31,2021
Total Idaho
Any informal inquiries may be directed to Ted Weston, Idaho Regulatory Manager at
[e-mail] or by phone at [phone].
Very truly yours,
R.
Vice-President of Regulation
"^,.D
Ehctric Phnt In-Seruice
Accumulated Deprechtion
98,018,713
03.921.612\
$
$
s
$
5,608,631
6.374.195\
Annual Deprechtion Expense $ 608,058
Rezuhtory Asset (Amortizrd throufi l2/31D022\
Net Book Value 234,436
$
$
$ 4,097,101 $
34,793
413,614