20230509Comments.pdf

COMMENTS OF BAYER 1
Thomas J. Budge, ISB No. 7465 RACINE OLSON, PLLP
P.O. Box 1391; 201 E. Center St.
Pocatello, Idaho 83204-1391 [phone] [e-mail]
Attorneys for P4 Production, L.L.C., an affiliate of Bayer Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER
REQUESTING APPROVAL OF $32.5 MILLION ECAM DEFERRAL
CASE NO. PAC-E-23-09

COMMENTS OF BAYER
P4 Production, L.L.C., an affiliate of Bayer Corporation (referred to herein as “Bayer”),
through counsel, submits these comments regarding the March 30, 2023, Application of Rocky
Mountain Power (the “Company”) seeking approval of approximately $32.5 million of deferred
costs under the Company’s approved energy costs adjustment mechanism (“ECAM”). These
comments are submitted pursuant to the Commission’s Order No. 35740 issued April 13, 2023,
giving notice of the Application, giving notice that this matter will proceed under Modified
Procedure, and inviting written comments by May 10, 2023. Bayer filed a petition to intervene in
this matter on April 20, 2023, which was granted by the Commission’s Order No. 35768 issued
May 3, 2023.
Introduction
Bayer owns and operates a plant in Soda Springs, Idaho, that utilizes three electric
furnaces to produce elemental phosphorus. Bayer’s Soda Springs plant is the largest single user
of electricity in Idaho, and the largest single user of electricity on the PacifiCorp system, with a
load exceeding 180 megawatts (MW) and a demand of approximately 1.4 million MW-hours per
year. Bayer and its predecessor in interest have continuously been a contract customer of the
Company since the Soda Spring plant commenced operations in 1951.
The Company provides electric service to Bayer pursuant to an Electric Service
Agreement effective January 1, 2022 (“Agreement”). Under the Agreement, Bayer receives both
RECEIVED
Tuesday, May 9, 2023 4:48:16 PM
IDAHO PUBLIC
UTILITIES COMMISSION
COMMENTS OF BAYER 2
firm and interruptible power. While Bayer’s rates are fixed pursuant to the Agreement, they
remain subject to annual ECAM adjustments like all other Idaho customers.
Bayer’s Comments
The Application requests a 2.3% overall increase to Electric Service Schedule No. 94.
Bayer believes that the ECAM increase may be overstated. A comparison of the 2022 and 2023
ECAM filings reveal certain matters that are not adequately justified. In particular, coal
generation decreased by 3.2 million MWh from the prior ECAM period. The testimony of
Company witness Jack Painter notes that coal generation during the current ECAM period was
1,484 gigawatts (1,484,000 MWh) less than what was included in the calculation of the base
ECAM rate. The Company has provided no explanation why coal generation was significantly
less than historic levels.
Mr. Painter’s testimony discusses heat waves that affected the RMP service territory in
July, August and September. Mr. Painter also testifies that the service territory was affected by a
winter cyclone event in December 2022. Given these weather events, one would expect an
increase in coal generation from historic levels since customer demand would be higher during
such events, yet coal generation for the year was depressed.
It appears the lack of coal generation was replaced to some degree with short-term
purchases. The average cost of short-term purchases during the current ECAM was over four
times greater than the cost of coal generation. Again, there was no discussion why the short-term
purchases increased to the level required in 2022 while less expensive goal generation decreased.
Based on the foregoing, Bayer respectfully requests that the Commission require the
Company to provide a detailed explanation why coal generation was significantly depressed
during the 2022 ECAM period. The explanation should describe in detail all conditions that
restricted the Company’s ability to generate electricity from its coal units, such a, but not limited
to, forced outages, scheduled maintenance, operating constraints, coal supply constraints, market
factors, political factors, etc. For each condition, the Company should be required to assign an
estimate of the lost MWh generation. Bayer also requests that the Commission allow all parties
the opportunity to conduct discovery and, if warranted, request a hearing, based on the response
provided by the Company.

COMMENTS OF BAYER 3
DATED this 9th day of May, 2023.

RACINE OLSON, PLLP By: ___________________________
THOMAS J. BUDGE

COMMENTS OF BAYER 4
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on this 9th day of May, 2023, I served a true, correct and
complete copy of the foregoing document, to each of the following, via the method so indicated: Idaho Public Utilities Commission Commission Secretary
P.O. Box 83720
Boise, ID 83720-0074 [e-mail] PacifiCorp
Data Request Response Center
[e-mail] Mark Alder Idaho Regulatory Affairs Manager
[e-mail]
Joe Dallas Senior Attorney Rocky Mountain Power
[e-mail]
Idaho Irrigation Pumpers Association Eric L. Olsen ECHO HAWK & OLSEN, PLLC
[e-mail]
Lance Kaufman, Ph.D. [e-mail]
PIIC
Ronald L. Williams Williams Bradbury, P.C. [e-mail]
PIIC Electronic Service Only:
Val Steiner: [e-mail] Kyle Williams: [e-mail]

_________________________________ THOMAS J. BUDGE