20220815Bi-Annual Report.pdf

Y ROCKY MOUNTAIN
BP,yy,m.*"1407 W. North Temple, Suite 330
Salt Lake City, Utah 841l6
August 15,2022
VA ELECTRONIC DELIVERY
Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
I l3l 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, ("Renewal Corporation"), with a determination thatthe 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
status of the license transfer with the Federal Energy Regulatory Commission, ("FERC"), and any
additional capital investments on the Lower Klamath Project.
Pursuant to Order No. 35097 PacifiCorp hereby submits its semi-annual status report on
the license transfer along with new capital expenditures and the June 30, 2022,plant balance of
the Lower Klamath Project. The report covers the period of January 1,2022, through
June 30,2022.
N. BI.AI\INUAL 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 ofthe transfer will be effective upon transfer of the title of the properties under the 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 ("EIS") for the license
surrender and decommissioning application. On February 25,2022 FEPIC issued a draft EIS for
public review and accepted comments on the document through April25,2022.ln the draft EIS,
FERC concluded that while the proposed action would have some significant adverse effects, it
I Poci/iCorp, 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 #: 202106 I 7-3060.
would also provide significant benefits. Ultimately, FERC staff recommended approval of the
license surrender with some relatively minor modifications. FERC is currently working on
responding to public comment and preparing a final EIS, which is expected in September 2022.
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 operation and maintenance obligation continues after the
facilities are transferred to the Co-Licensees until generation from the Lower Klamath Project
ceases. 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
The Lower Klamath Project's net book value, electric plant in-service less accumulated
depreciation reserve balances as of June 30,2022, along with the annual depreciation expense and
regulatory asset balance are summarized in Table l. Amortization of the regulatory asset will be
completed by December 31,2022.
Desc
Table 1. Lower Klamath Project Net Book Value - June 30,2022
Total Idaho
Electric Plant In-Service
Accunulated Depreciation
$ 99,288,657
$ (94.298.995)
$ 5,681,297
$ (5.395.788)
Arurual Depreciatiou Expense $ 608,058
Re zulatory Asset (Aruorti ze d tluoueh 12 / 3 I I 20221
s
s
$
Net Book Value 285,508$ 4,989,662
34,793
206.807
PacifiCorp's total capital expenditures, made to support the continued operation of the
Lower Klamath Project, transferred to elechic plant in-service between January 1,2022, through
June 30, 2022, was $803,825. This total includes projects initiated prior to calendar year 2022that
was transferred to electric plant in-service during the year. Of the $803,825 transferred to electric
plant in-service through June 30, 2022, only $32,432 was for new 2022 capital projects ( See Table
2 for project detail).
Table 2. Lower Klamath Project Capital Additions Placed In-Service in2022
Definition De 2022 Amount
HKCAlzoLslClooT
HKCA/20le/c/oos
HKCAlzlzuclo08
HKcAlzlzucl00e
HKCAl2027lCl0L3
HKCAlzlluCllts
HKcAlzlzuCl02L
HKcN2022lCl008
HKCAl2022lCl009
HKoRlzlt7lcl004
HKORlzozolC|ITL
HKORl2021lCl007
HP0R/201s/C/011
HP0R/2018/C/013
HPAR|2020lCl00L
HPORlzl2uCl002
HP0R/2o2ucl0os
HPOR|}IIL|Cl007
HPORl2022lCl007
Total
lron Gate Hatchery Replace Recirculation System S
Copco Waterline Section Replacement S
lron Gate CSIR Mandated lmprovements 2022 S
lron Gate Hatchery Raceway Headbox Low LevelAlarm Upgrade S
IKL 7.5.5.A. Forklift Procurement (20211 S
IKL 2.1.5 Klamath Data Sondes Sensors S
IKL - Article 49 lrongate Hatch Trojan S
Copco l Common PLC Cabinet Components * S
Copco 2 Powerhouse HVAC * $
JC Boyle 1 and 2 Refurbish Exciters S
JC Boyle Fish Ladder Weir Actuator Upgrade S
Klamath 0R Refurbish House 7553 S
West Hydro Oil Spill Prevention S
Hydro Surveillance Camera Replacement S
Electrical/lnstrument/Communications 2020 S
Facilities 2021 S
Mechanical 2021 S
SmallTools 2021 5
SmallTools 2022* $
786,677.39
62.87
202,205,44
33,080.34
44,534.97
4,999.25
23,170.83
14,024.95
13,450.21
4,105.15
6,773.03
107,735.L4
10,690,26
tL,602.82
61.87
48,943.87
30,132,84
56,626.80
4,955.41
$ 803,825.51
Any informal inquiries may be dirocted to Ted Weston, Idatro Regulatory Manager at
[e-mail] or by phone at [phone].
very yours,
S^'^-O
Joelle R. Steward
SVP of Regulation and Customer / Community Solutions