HomeMy WebLinkAbout20240913Application.pdf ' 11
RECEIVED
Avista Corp. Friday, September 13, 2024
1411 East Mission P.O. Box 3727 IDAHO PUBLIC
UTILITIES COMMISSION
Spokane. Washington 99220-0500
Telephone 509-489-0500
Toll Free 800-727-9170
September 13, 2024
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A
Boise, Idaho 83714
RE: Case No. AVU-E-24-10
Dear Commission Secretary:
Attached for filing with the Commission is Avista Corporation's, doing business as Avista
Utilities' (Avista or the Company), filing in compliance with Order Nos. 32697 and 32802, to
update the Company's load forecast,natural gas forecast, and contract information components of
the incremental cost Integrated Resource Plan(IRP) avoided cost methodology.
Please direct any questions regarding this filing to John Lyons at 509-495-8515 or
j ohn.lyons gavistacorp.com.
Sincerely,
Shawn Bonfield
Sr. Manager of Regulatory Policy& Strategy
Avista Utilities
509-495-2782
Shawn.bonfield(cb,avistacorp.com
Michael G. Andrea(ISB No. 8308)
Senior Counsel
Avista Corporation
1411 East Mission, MSC-17
Spokane, WA 99202
Phone: (509)495-2564
Facsimile: (509) 777-5468
Email: michael.andrea@avistacorp.com
Attorney for Avista Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA CORPORATION'S) CASE NO. AVU-E-24-XX
ANNUAL COMPLIANCE FILING TO UPDATE )
THE LOAD AND GAS FORECASTS IN THE )
INCREMENTAL COST INTEGRATED )
RESOURCE PLAN AVOIDED COST MODEL )
TO BE USED FOR AVOIDED COST )
CALCULATIONS )
AVISTA CORPORATION'S
COMPLIANCE FILING
I. INTRODUCTION
Avista Corporation, doing business as Avista Utilities (hereinafter Avista or
Company), at 1411 East Mission Avenue, Spokane, Washington, respectfully submits to
the Idaho Public Utilities Commission(Commission)this filing, in compliance with Order
Nos. 32697 and 32802 in Case No. GNR-E-11-03, to update the load forecast, natural gas
forecast, and contract information components of the incremental cost Integrated Resource
Plan(IRP) avoided cost methodology.
Communications in reference to this filing should be addressed to:
Michael G. Andrea Shawn Bonfield
Senior Counsel Sr. Manager Regulatory Policy & Strategy
Avista Corporation Avista Corporation
P.O. Box 3727 P.O. Box 3727
1411 E. Mission Avenue, MSC-13 1411 E. Mission Avenue, MSC-27
Spokane, WA 99220-3727 Spokane, WA 99220-3727
Phone: (509)495-4316 Phone: (509)495-2782
michael.andrea(kavistacorp.com Shawn.Bonfieldnavistacorp.com
II. BACKGROUND
In its final Order No. 326971 dated December 18, 2012, the Commission
determined that the inputs to the IRP avoided cost methodology, utilized for all proposed
Public Utility Regulatory Policies Act of 1978 (PURPA) qualifying (QF) projects that
exceed the published rate eligibility cap, will be updated every two years upon
acknowledgment of the utility's IRP filing, with the exception of the load forecast, natural
gas forecast, and QF contract changes, which are to be updated annually. The date for the
annual update was changed2 from June to October of each year. Further, in Order No.
1 Order No.32697 page 22.
z Order No.32802 page 3.
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32697,the Commission directed that after the filing of a utility's IRP that a case be initiated
to determine the capacity deficiency period to be utilized in the Surrogate Avoided
Resource (SAR) Methodology.3
III. LOAD FORECAST
The Company's most recent peak and energy forecast was developed in May 2024
and presented at the electric Integrated Resource Plan (IRP) Technical Advisory
Committee (TAC)meetings for the 2025 IRP. The energy load forecast escalates at 0.93%
annual average growth rate for 2026 through 2045 and is provided in Table 1.
Table 1: Energy Load Forecast
Year Energy
(aMW)
2026 1,165
2027 1,168
2028 1,166
2029 1,166
2030 1,165
2031 1,166
2032 1,168
2033 1,177
2034 1,188
2035 1,200
2036 1,211
2037 1,227
2038 1,247
2039 1,263
2040 1,281
2041 1,305
2042 1,321
2043 1,344
2044 1,366
2045 1,383
s Order No.32697 page 23.
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IV. NATURAL GAS FORECAST
The Company's most recent natural gas Forward Price Curve was developed for
the 2025 Natural Gas IRP by using the blend of two national price forecasting consultant's
most recent forecasts, the U.S. Energy Information Administration's Annual Energy
Outlook(AEO), and forward market prices as of December 15, 2023. Please refer to Table
2 for the natural gas price forecast.
Table 2: Natural Gas Price Forecast
Henry
Hub Stanfield
Year $/mmbtu $/mmbtu
2026 3.82 3.52
2027 3.93 3.57
2028 3.99 3.58
2029 4.00 3.47
2030 4.10 3.61
2031 4.28 3.74
2032 4.52 3.97
2033 4.78 4.20
2034 4.95 4.28
2035 5.23 4.45
2036 5.40 4.57
2037 5.65 4.75
2038 5.86 4.82
2039 5.93 4.82
2040 6.36 5.15
2041 6.72 5.38
2042 6.89 5.54
2043 7.16 5.76
2044 7.44 5.95
2045 7.74 6.13
3 Page
V. CONTRACT ADDITIONS AND TERMINATIONS
Since the 2023 filing, Avista has signed one updated PPA, one new long-term
PURPA contract, and one PURPA contract that was being negotiated last year.
Additionally,two PURPA contracts ended. The updated PPA with Clearwater Wind begins
in September 2024. The new PURPA contract is with Vaagen Brothers Lumber and is
located in Washington State. The two contracts that ended consist of the solar project with
Elf Solar located in Washington State which is no longer being constructed and the Stimson
lumber mill in Idaho which closed permanently. The PURPA contract with Clearwater
Paper that was in negotiations during the last filing was signed. Details concerning the
dates and sizes of these contracts are included in the workpapers.
VI. MODIFIED PROCEDURE
Avista believes that a hearing is not necessary to consider the issues presented
herein and respectfully requests that this Application be processed under Modified
Procedure, i.e., by written submissions rather than by hearing. RP 201 et seq. If the
Commission determines that a technical hearing is necessary, the Company will be ready
to prepare and present its testimony in such hearing.
VII. REQUEST
Avista respectfully submits this updated load forecast, natural gas forecast, and
contract information in compliance with Order Nos. 32697, 32802 and 35274. The
Company requests that the Commission issue an order accepting its updated load forecast,
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natural gas forecast, and contract information to be used in the IRP method with an
effective date of January 1, 2025.
DATED at Spokane, Washington, this 13th day of September 2024.
AVISTA CORPORATION
ls/Michael G. Andrea
Michael G. Andrea
Senior Counsel
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