NV Energy Emissions Reduction and Capacity Replacement Plan
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BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA IN THE MATTER of the Application of NEVADA POWER COMPANY, seeking approval of the Second Amendment to its Emissions Reduction and Capacity Replacement Plan Docket No. 16-08___ seeking approval of a 100 MW Purchased Power Agreement with Techren Solar and the retirement of Reid Gardner Unit 4 on or about February 28, 2017. VOLUME 1 OF 4 NEVADA POWER COMPANY D/B/A NV ENERGY DESCRIPTION PAGE NUMBER Transmittal Letter 2 Table of Contents 5 Certificate of Service 7 APPLICATION 9 Exhibit A – Action Plan 19 Exhibit B – Narrative 21 Exhibit C – Draft Notice 49 TESTIMONY 52 James Doubek 53 Kevin Geraghty 70 Robert R. Kocour, Jr. 85 Sachin Verma 93 TRANSMITTAL LETTER Page 2 of 97 August 15, 2016 Ms. Trisha Osborne Assistant Commission Secretary Public Utilities Commission of Nevada 1150 East William Street Carson City, Nevada 89701-3109 RE: Docket No. 16-08____, Nevada Power Company d/b/a NV Energy’s Application seeking approval of its Second Amendment to its Emissions Reduction and Capacity Replacement Plan; and request for expedited schedule. Dear Ms. Osborne: Enclosed for filing please find the attached Application made by and on behalf of Nevada Power Company d/b/a NV Energy (“Nevada Power” or the “Company”) seeking approval of its Second Amendment its Emissions Reduction and Capacity Replacement Plan. Electronic copies of the filing, along with the executable electronic copies of load forecasting and demand-side plan workpapers will be delivered to the Regulatory Operations Staff (“Staff”), and the Attorney General’s Bureau of Consumer Protection (“BCP”) in both their Carson City and Las Vegas offices. Accompanying this transmittal letter are portions of the filing that are to be kept under seal pursuant to NAC § 703.527 et seq. This information is contained in a sealed envelope, appropriately marked, and contains the unredacted versions of the following: • REN-3. 2016 ERCR RE RFP Short List Scoring Report • REN-4. Initial Screening Evaluation Report of the Independent Evaluator • REN-5. Final Due Diligence and Selection Reports • REN-6 Closing Report of the Independent Evaluator • REN-7 Closing Report Amendment of the Independent Evaluator Page 3 of 97 Ms. Osborne August 15, 2016 Page 2 of 2 Confidentiality of the bid process, including bid terms and the Company’s analysis of the bid, is essential to a successful competitive solicitation and qualify for confidential treatment under NRS § 703.190. This information derives independent economic value from not being generally known. This information is not known outside the Company and its distribution is limited within the Company. Releasing this highly sensitive information would disadvantage Nevada Power by limiting its ability to foster competition among prospective energy suppliers; compromising Nevada Power’s negotiating position and reducing its bargaining leverage. Publication of this information would unfairly advantage competing market participants and impair Nevada Power’s ability to achieve the most favorable pricing and terms and conditions from suppliers on behalf of its customers. Pursuant to NAC § 703.5274(1), one unredacted copy of the above-described confidential information will be filed with the Commission’s Secretary in a separate envelope stamped “confidential.” Redacted versions of confidential information will be submitted for processing and posting onto the Commission’s public website. Pursuant to NAC § 703.5274(2), Nevada Power hereby requests that the above-described information not be disclosed to the public. Nevada Power requests that this information remain confidential for a period of five years. At the end of the five year period the Commission may return or destroy the confidential information. Confidential treatment of the above-described information will not impair the ability of the Staff or the BCP to fully investigate Nevada Power’s proposals. NRS § 704.751(2) provides that the Commission shall issue an order within 180 days in proceedings requesting approval to amend the ERCR Plan. Thus, by statute, a final order regarding this ERCR Plan 2nd Amendment must be issued on or before Friday, February 11, 2017. However, given the time sensitive nature of the request associated with Reid Gardner Unit 4 the Company requests that the Commission issue a final order no later than December 28, 2016. Should you have any questions regarding this filing, please contact me at (775) 834-5692 or [email protected]. Respectfully submitted, /s/Michael Greene Michael Greene Senior Attorney Page 4 of 97 TABLE OF CONTENTS Page 5 of 97 NEVADA POWER COMPANY D/B/A NV ENERGY TABLE OF CONTENTS VOLUME 1 Transmittal Letter 2 Table of Contents 5 Certificate of Service 7 APPLICATION 9 Exhibit A – Action Plan 19 Exhibit B – Narrative 21 Exhibit C – Draft Notice 49 TESTIMONY 52 James Doubek 53 Kevin Geraghty 70 Robert R. Kocour, Jr. 85 Sachin Verma 93 VOLUME 2-TECHNICAL APPENDIX LOAD FORECAST REN-1 2016 ERCR RE RFP Protocol with Attachments (Part 1 of 2) 2 VOLUME 3 -TECHNICAL APPENDIX LOAD FORECAST REN-1 2016 ERCR RE RFP Protocol with Attachments (Part 2 of 2) 2 REN-2 Long-Term Renewable Power Purchase Agreement with Techren Solar 51 REN-3 2016 ERCR RE RFP Initial Short List Scoring Report – CONFIDENTIAL 204 Initial Screening Evaluation Report of the Independent Evaluator – 206 REN-4 CONFIDENTIAL REN-5 Final Due Diligence and Selection Reports – CONFIDENTIAL 208 REN-6 Closing Report of the Independent Evaluator - CONFIDENTIAL 210 Closing Report Amendment of the Independent Evaluator 212 REN-7 CONFIDENTIAL ECONOMIC ANALYSIS ECON-1 L&R Tables 214 ECON-2 Operating Reserves Calculation 227 ECON-3 100 MW PWRR (Production Costs + Capital) 286 GENERATION GEN-1 Reid Gardner 4 Key Decision Report and Production Cost Analysis 294 VOLUME 4-TECHNICAL APPENDIX TRANSMISION TRAN-1 Techren Solar LGIA 2 Page 6 of 97 CERTIFICATE OF SERVICE Page 7 of 97 1 CERTIFICATE OF SERVICE 2 I hereby certify that I have served the foregoing NEVADA POWER COMPANY 3 D/B/A NV ENERGY’S APPLICATION TO APPROVAL OF THE SECOND 4 AMENDMENT TO ITS EMISSIONS REDUCTION AND CAPACITY 5 REPLACEMENT PLAN upon the persons listed below by the following: 6 7 FEDERAL EXPRESS HAND DELIVERED Tammy Cordova Staff Counsel Division 8 Public Utilities Comm. of Nevada Public Utilities Comm. of Nevada 9075 West Diablo Drive Suite 250 1150 E. William Street 9 Las Vegas, NV 89148 Carson City, NV 89701-3109 [email protected] [email protected] 10 11 FEDERAL EXPRESS HAND DELIVERED Eric Witkoski Attorney General’s Office 12 Attorney General’s Office Bureau of Consumer Protection Bureau of Consumer Protection 100 N. Carson St. 13 10791 W. Twain Ave., Ste. 100 Carson City, NV 89701 d/b/a NV Energy Las Vegas, NV 89135-3022 [email protected] 14 [email protected] Nevada Power Company Power Nevada 15 and Sierra Pacific Power Sierra and Company 16 17 This document will be available on the following SFTP site: Host IP Address – 192.206.180.206 18 User ID – legalpub Password – E9*F2pKY 19 20 21 DATED this 15th day of August, 2016. 22 /s/ Connie Silveira Connie Silveira 23 Legal Admin Assistant 24 Sierra Pacific Power Company Nevada Power Company 25 26 27 28 1 Page 8 of 97 APPLICATION Page 9 of 97 1 BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA 2 IN THE MATTER of the Application of NEVADA ) 3 POWER COMPANY, seeking approval of the ) Second Amendment to its Emissions Reduction and ) 4 Capacity Replacement Plan seeking approval of a ) 5 100 MW Purchased Power Agreement with ) Techren Solar and the retirement of Reid Gardner ) 6 Unit 4 on or about February 28, 2017. ) Docket No. 16-08____ 7 __________________________________________) 8 APPLICATION TO APPROVE SECOND AMENDMENT TO 9 EMISSIONS REDUCTION AND CAPACITY REPLACEMENT PLAN 10 11 Nevada Power Company, d/b/a NV Energy (“Nevada Power” or “the Company”), makes 12 this Application, pursuant to NRS § 704.7311 et seq., NRS § 704.736 et seq., Nevada 13 Administrative Code § 704.95035, and NAC § 704.9517. This application seeks approval by the d/b/a NV Energy 14 Public Utilities Commission of Nevada (“Commission”) to amend Nevada Power’s currently Nevada Power Company Power Nevada 15 approved Emissions Reduction and Capacity Replacement (“ERCR”) Plan. This Second 16 Amendment to Nevada Power’s 2014 ERCR Plan (“ERCR Plan 2nd Amendment”) presents the and Nevada Power Pacific Power Company Power Pacific Power Nevada and 17 results and recommends approval of a new renewable energy purchased power agreement 18 (“PPA”) resulting from the final 2016 Emissions Reduction Capacity Replacement Renewable 19 Energy Request for Proposals (“2016 ERCR RE RFP”) issued by the Company, as required by 20 Senate Bill 123 (2013 Nevada Legislature). The filing also seeks approval to construct 21 transmission upgrades necessary to interconnect the project that will provide renewable energy 22 pursuant to the above-described agreement to the bulk transmission system. The filing also seeks 23 Commission approval to retire Reid Gardner Unit 4 (“RG4”) after exhausting all existing coal 24 inventory; on or about February 28, 2017. NRS § 704.751(2) provides that the Commission shall 25 issue an order within 180 days in proceedings requesting approval to amend the ERCR Plan. 26 Thus, by statute, a final order regarding this ERCR Plan 2nd Amendment must be issued on or 27 before Friday, February 11, 2017. However, given the time sensitive nature of the request 28 1 Page 10 of 97 1 associated with RG4, the Company requests that the Commission issue a final order no later than 2 December 28, 2016.1 3 I. SUMMARY AND INTRODUCTION 4 5 In the Commission’s Modified Final Order in Docket No. 14-05003, Nevada Power was 6 authorized to proceed with three 100 megawatt competitive solicitations for renewable energy 7 resources.