20240403Final_Order_No_36127.pdf

Office of the Secretary
Service Date
April 3,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-23-12
CORPORATION'S APPLICATION TO )
UPDATE AND ESTABLISH ITS CAPACITY )
DEFICIENCY PERIOD TO BE USED FOR ) ORDER NO. 36127
AVOIDED COST CALCULATIONS )
On August 24, 2023, pursuant to Order No. 35810, Avista Corporation d/b/a Avista
Utilities ("Company") applied to the Commission for approval of its capacity deficiency period
used for its avoided cost calculations ("Application").
On January 11, 2024, the Commission issued Order No. 36056 approving the Company's
Application subject to a compliance filing. Specifically, the Order required the Company to use
the Traditional Method to determine the Load and Resource Balance ("L&R") with the most
current peak load forecasts for both winter and summer. In addition, the Commission directed the
Company, before the next capacity deficiency update, to show that the method used to derive the
Company's Qualified Capacity Contribution("QCC")values reflect the generation capacity of the
Company's resources relative to the peak loads within the Company's system and to develop its
Planning Reserve Margin("PRM") "driven by the Company's reliability target and appropriately
developed capacity contribution factors [within its] system." Order No. 36056 at 7.
On January 31,2024,the Company submitted a compliance filing containing a more recent
load forecast, and an updated L&R using the Company's traditional method with the most current
peak load forecasts for both winter and summer. The Company also stated that it "will work on
demonstrating the other two issues regarding the Company's QCC and PRM values for use in its
2025 IRP process and subsequent capacity deficiency filing."January 31,2024,Compliance Filing
at 3.
After further review of its previously filed load forecast,the Company filed a supplemental
compliance filing("Updated Compliance Filing")on February 5,2024,modifying its load forecast
to reflect inclusion of delivery losses,removal of the impact of net metered solar generation on the
winter peak load forecast, and removal of the impact of cooling load shapes on the winter peak
load forecast.
ORDER NO. 36127 1

After review of the Updated Compliance Filing, Staff believed that the updated load
forecast complied with Order No. 36056.Using the L&R and a capacity deficiency period of 2033
that resulted from the updated load forecast, Staff sent a letter to the Company on February 14,
2024,requesting verification of the updated"Surrogate Avoided Resource("SAR")Model and re-
calculated avoided cost rates for new contracts to reflect the new capacity deficit information."
Staff s February 14, 2024, Letter at 2.
On February 20, 2024, the Company filed a correspondence Agreement that agreed with
Staffs update to the SAR model and avoided cost rates.
At the Commission's March 5, 2024, Decision Meeting, Staff presented a Decision
Memorandum which noted that Staff had reviewed the Updated Compliance Filing and
recommended the Commission approve the first capacity deficiency year of 2033 based on the
updated load forecast, the updated SAR model, and resulting published avoided cost rates with an
effective date of January 11, 2024.
The Commission now issues this Order approving the first capacity deficiency year of 2033
based on the updated load forecast, the updated SAR model, and resulting published avoided cost
rates with an effective date of January 11, 2024.
COMMISSION FINDINGS AND DISCUSSION
The Commission has reviewed the record, including the Updated Compliance Filing,
Staff s submissions and recommendations, and the Company's agreement with Staff s
calculations. Based upon its review of the Updated Compliance Filing,the Commission finds that
the resulting capacity deficiency year of 2033 is appropriate for Staff to determine updated
published avoided cost rates. For these reasons, the Commission finds that the Company has
complied with Order No. 36056. Accordingly, the Commission approves the first capacity
deficiency year of 2033 based on the updated load forecast in the Updated Compliance Filing and
the published avoided cost rates and updated SAR Model—with an effective date of January 11,
2024.
ORDER
IT IS HEREBY ORDERED that the first capacity deficiency year of 2033, the updated
SAR model, and resulting published avoided cost rates are approved, based on the updated load
forecast in the Updated Compliance Filing. This approval is effective as of January 11, 2024.
ORDER NO. 36127 2

THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration.Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3rd day of
April 2024.
ERIC ANDERSON, PRESIDENT
OHN R. HAMMOND JR., COMMISSIONER
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EDWARD LOD E, ' MMISSIONER
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Commission Secretary
I:\Lega1\ELECTRIC\AVU-E-23-12_CapDeflorders\AVUE2312_Comp_md.docx
ORDER NO. 36127 3