HomeMy WebLinkAbout20101336.tiff Decision No. C 10-0596
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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO
`tuiti I l 1",
DOCKET NO. 10M-245E
IN THE MATTER OF COMMISSION CONSIDERATION OF PUBLIC SERVICE COMPANY
OF COLORADO PLAN IN COMPLIANCE WITH HOUSE BILL 10-1365, "CLEAN AIR-
CLEAN JOBS ACT."
ORDER ADDRESSING REQUESTS FOR DATA.
Mailed Date: June 16, 2010
Adopted Date: June 9, 2010
I. BY THE COMMISSION
A. Statement
1. The Commission opened Docket No. IOM-245E by Decision No. C10-0452,
mailed May 7, 2010, in order to consider an emission reduction plan for coal-fired electric
generating units expected to be filed by Public Service Company of Colorado (Public Service or
the Company) in compliance with House Bill 10-1365, the "Clean Air — Clean Jobs Act"
(HB 10-1365). Pursuant to HB 10-1365, such emission reduction plan must be filed on or before
August 15, 2010.'
2. By Decision No. C10-0545, mailed June 3, 2010, the Commission noted the
interventions by right filed by Staff of the Colorado Public Utilities Commission, the Colorado
Office of Consumer Counsel, and the Colorado Governor's Energy Office and granted all of the
petitions to intervene by permission that were timely filed. Public Service and the intervenors
are the parties to this proceeding.
The last business day prior to the August 15,2010 deadline is Friday, August 13, 2010.
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Before the Public Utilities Commission of the State of Colorado
Decision No. C10-0596 DOCKET NO. IOM-245E
3. The Commission held a Commissioners' Deliberation Meeting on June 8, 2010 to
address various motions and comments filed by these parties. The Commission continued its
discussion at the Commissioners' Weekly Meeting on June 9, 20102 and specifically addressed
two written requests asking that the Commission order Public Service to produce additional
documents. The two requests were filed by Western Resource Advocates (WRA) and jointly by
Noble Energy, Inc.; Chesapeake Energy, Inc.; and EnCana Corporation (the Gas Intervenors).
This order addresses these two data requests.
B. Discussion
4. In Decision No. C 10-0452, the Commission ordered Public Service by to produce
certain records and documents that would be helpful for the Commission, parties, amid curiae,
and others in developing a record and recommendations for this proceeding. Paragraph 29 of
Decision No. C1O-0452 identified the specific documents and data the Company was required to
submit to the Commission.
5. Public Service filed a Motion for Reconsideration and Clarification on May 18,
2010, which, among other requests, asked that the Commission modify or clarify paragraph 29
dealing with the production of those specified documents.
6. The Commission granted, on a temporary basis, Public Service's requests in its
motion concerning Paragraph 29 by Decision No. CIO-0501 mailed on May 19, 2010. Public
Service made an initial filing on June 2, 2010 of the requested data over which the Company
raised no objections.
7. The Commission addressed whether Public Service's requests concerning
paragraph 29 would be permanent at the Commissioners' Deliberations Meeting on June 8, 2010.
2 Chairman Ronald J. Binz was not present at the Commissioners' Weekly Meeting on June 9,2010.
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Before the Public Utilities Commission of the State of Colorado
Decision No. C10-0596 DOCKET NO. IOM-245E
A separate order will memorialize our ruling on this matter as well as our request that Public
Service provide information such as emissions or financial data be provided in an executable
electronic format (e.g., in spreadsheets). We note here, however, that we generally granted the
Company's requested modifications to paragraph 29.
8. Paragraph 38 of Decision No. C10-0452 allows interested persons, including non-
parties, to file written requests to the Commission asking that the Commission order Public
Service to produce additional documents.
9. In its motion filed on May 18, 2010, Public Service requested that the
Commission delete paragraph 38, arguing that it effectively allows any interested person to have
the Commission conduct discovery on his or her behalf in advance of the Company's
August 2010 filing of its emission reduction plan. Public Service further argued that the
additional production of data pursuant to such requests would be potentially inefficient and
would distract the Company at the expense of its preparation of its August 2010 emission
reduction plan filing.
10. The Commission addressed Public Service's request concerning paragraph 38 at
the Commissioners' Deliberations Meeting on June 8, 2010. While a separate order will
memorialize our ruling on this matter, we note here that the Commission denied the Company's
request and paragraph 38 of Decision No. C10-0452 will remain unchanged.
11. We further find, as a general matter, that § 40-2-106, C.R.S., establishes our
authority to require that Public Service produce records and documents. The Commission has
the discretion to modify the written requests from interested persons filed in this proceeding
asking us to order Public Service to produce such records and documents prior to its August 2010
filing of its emissions reduction plan. We also note that our decision not to order Public Service
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Before the Public Utilities Commission of the State of Colorado
Decision No. C10-0596 DOCKET NO. IOM-245E
to produce certain requested data under § 40-2-106, C.R.S., in no way prejudices a party if the
same request is made pursuant to the discovery process in this proceeding.
12. Accordingly, we now consider both WRA's and the Gas Intervenors' written
requests for data filed pursuant to paragraph 38 of Decision No. C10-0452.
C. WRA's Data Request
13. In its Response to Public Service's Motion for Reconsideration and Clarification
to Decision No. C1O-0452, filed on May 25, 2010 (WRA Response), WRA suggested that the
Commission order Public Service to produce the following supplemental information prior to the
Company's August 2010 filing of its emissions reduction plan:
• The Company's current annual electric demand and energy forecasts for each
year of the plan, such as the information described in Rule 3606, WRA
Response at 5;3
• An evaluation of existing resources developed pursuant to Rule 3607, WRA
Response at 5;
• Feasibility, technical, or economic assessments, studies, or plans regarding
any transmission or reliability issues that would need to be overcome if coal
capacity in the Denver metro area were retired, WRA Response at 5;
• Planning reserve margins as described in Commission Rule 36O4(d), WRA
Response at 5;
• Independent Power Producer contract information, WRA Response at 6;
• Data on the Craig and Comanche power plants, WRA Response at 6;°
• Projected emissions information in paragraph 29 of Decision No. C1O-0452
for each year of the plan, both the emissions rate and total annual emissions,
WRA Response at 6-7;
' The Commission's Electric Resource Planning (ERP) Rules are set forth at 4 Code of Colorado
Regulations 723-3-3600, et seq.
° At the June 8, 2010 Commissioners' Deliberation Meeting, we granted Public Service's request in its
Motion for Reconsideration and Clarification filed on May 18, 2010 not to include information on Craig and
Comanche in its response to paragraph 29 of Decision No. C 10-0452.
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Decision No. CIO-0596 DOCKET NO. IOM-245E
• Studies and board meeting records relating to conversion of a generic or
specific single-cycle combustion turbine to a combined-cycle combustion
turbine, WRA Response at 7;
• General arrangement drawings for natural gas-fired units, WRA Response at
7;
• Information on existing pipeline capacity for natural gas-fired generation units
owned by, in any way controlled by, or under contract with Public Service,
WRA Response at 7;
• Annual data regarding net dependable capacity, capacity factor, average heat
rate, variable O&M cost, fixed costs, fuel cost and basis, average variable cost
($/MWh), and capital cost for each existing coal or natural gas-fired unit, for
each year in the planning period (40 years), including the natural gas and coal
costs, where such values are producing using current electric demand and
energy forecasts, WRA Response at 7-8; and
• Depreciated book value, annual capital expenditures, and revenue
requirements for each existing Colorado generating unit owned or controlled
by Public Service in the planning period, WRA Response at 7.
14. Public Service objects to WRA's data request, arguing that this proceeding is not a
resource planning docket but is instead a more limited docket concerning the reduction of
emissions at 900 MW of coal-fired facilities. See Public Service's Response to Western
Resource Advocates filed on June 2, 2010. Public Service states that WRA's data request stems
from a fundamental misunderstanding of HB 10-1365 and that the data requested by WRA may
be irrelevant, is too extensive, and thus burdensome to produce, is unnecessary since FIB 10-
1365 does not contemplate alternative plans submitted by intervening parties such as WRA, and
may involve highly confidential and commercially sensitive information.
15. In consideration of WRA's data request and in light of Public Service's concerns,
we find it reasonable to order Public Service to file with the Commission under § 40-2-106,
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Before the Public Utilities Commission of the State of Colorado
Decision No. C10-0596 DOCKET NO. IOM-245E
C.R.S., the following, so long as such records and documents exist, they are readily available,
and they do not include confidential or customer-specific information:
• The Company's current annual electric demand and energy forecasts for each
year of the plan;
• Minutes of all board meetings, including associated presentations, and all
feasibility, technical, or economic assessments, studies, or plans regarding the
conversion of a generic or specific single-cycle combustion turbine to a
combined-cycle combustion turbine; and
• Documentation of existing pipeline capacity for natural gas-fired generation
units owned by, in any way controlled by, or under contract with Public
Service.
16. We find such data would be helpful for the Commission, parties, and amici curiae
in developing a record and recommendations for this proceeding. We decline at this time to order
Public Service to produce, pursuant to Decision No. C10-0452, all of the other data requested by
WRA in its response filed on May 25, 2010. However, we reiterate that WRA may request the
same information, if it so wishes, pursuant to the discovery process established for this
proceeding.
D. Gas Intervenors' Data Request
17. In their Supplemental Response to Motion of PSCO for Reconsideration and/or
Clarification of Commission Decision No. C10-0452 (Gas Intervenors' Supplemental Response),
filed May 21, 2010, the Gas Intervenors propose the Commission order production of the
following additional data:
• The STRATEGIST base input files it is using for its analyses of various
potential scenarios for retiring existing coal fired power plants, Gas
Intervenors' Supplemental Response at 5-7 and 18;
• Demand and energy forecasts, Gas Intervenors' Supplemental Response at 14;
• Minimum output levels or unit dispatch parameters, Gas Intervenors'
Supplemental Response at 14-15;
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Decision No. C10-0596 DOCKET NO. IOM-245E
• Reserve margins (to account for wind), Gas Intervenors' Supplemental
Response at 15;
• Hourly wind generation patterns per month, Gas Intervenors' Supplemental
Response at 15-16;
• Capital cost estimates and lead times for CC and CT units, Gas Intervenors'
Supplemental Response at 16;
• Fixed charges for Purchased Power Agreements, Gas Intervenors'
Supplemental Response at 17;
• All data and analyses in its possession regarding the range of potential costs of
retrofitting coal fired units on its system with air pollution control equipment
that may be required under impending Clean Air Act requirements, Gas
Intervenors' Supplemental Response at 9-10; and
• All system data required to conduct reliability analyses relating to various
retirement scenarios, Gas Intervenors' Supplemental Response at 17-18.
18. Public Service objects to the Gas Intervenors' data request in the Company's
Reply to Gas Intervenors Response and Supplemental Response to Motion of Public Service
filed on June 2, 2010. First, Public Service explains that it has always taken the position the
STRATEGIST model data base and inputs are highly confidential and that, under license
agreements, the Company cannot legally provide parties with the model. Public Service further
asserts that making such information publicly available could damage its position in contracting
for competitive fuel and purchased power and in selling power in wholesale markets. Public
Service also questions the propriety of providing such information to current and potential gas
suppliers to the Company.
19. Second, Public Service implies that since there is no time for the Commission to
consider alternative scenarios that might be proposed by the Gas Intervenors and other parties,
there is no point in providing the parties the detailed data needed to develop intervenor-proposed
alternatives.
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Before the Public Utilities Commission of the State of Colorado
Decision No. CI0-0596 DOCKET NO. IOM-245E
20. Third, with respect to the other data requests set forth in the Gas Intervenors'
comments, Public Service states that it views them as a subset of the request for the
STRATEGIST files and therefore argues that the Commission should reject the requests for the
same reasons as discussed above. Public Service also objects to the Gas Intervenors' request for
information needed to conduct reliability analyses as vague, highly confidential, and as
information properly acquired from the Western Electricity Coordinating Council.
21. Consistent with the discussion above concerning WRA's request for energy sales
and demand forecasts, we find it reasonable to order Public Service to file with the Commission
under § 40-2-106, C.R.S., the demand and energy forecasts for the period to be addressed by the
emissions reduction plan, so long as such records and documents exist, they are readily available,
and they do not include confidential or customer-specific information. In addition, we order the
Company to produce all feasibility, technical, or economic assessments, studies, or plans
regarding the range of potential costs of retrofitting coal fired units on its system with air
pollution control equipment that may be required under impending Clean Air Act requirements,
so long as records and documents exist, they are readily available, and they do not include
confidential information. We find that such data would be helpful for the Commission, parties,
and amid curiae in developing a record and recommendations for this proceeding.
22. We decline at this time to order Public Service to produce, pursuant to Decision
No. C1O-0452, the other data requested by the Gas Intervenors in their Response and
Supplemental Response. However, we reiterate that the Gas Intervenors may request the same
information, if they so wish, under the discovery process established for this proceeding.
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d Before the Public Utilities Coin mission of the State of Colorado
Decision No. CIO-0596 DOCKET NO. IOM-2451:
II. ORDER
A. The Commission Orders That:
1. Public Service Company of Colorado shall produce the documents described
above no later than seven calendar days following the effective date of this Order.
2. This Order is effective upon its Mailed Date.
B. ADOPTED IN COMMISSIONERS'WEEKLY MEETING
June 9, 2010.
(S F A F) THE PUBLIC UTILITIES COMMISSION
���of coto*q OF THE STATE OF COLORADO
/: ` JAMES K. TARPEY
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MATT BAKER
ATTEST: A TRUE COPY Commissioners
06r t CHAIRMAN RONALD J. BINZ ABSENT.
Doug Dean,
Director
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