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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. 11Page 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. 2 Page 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, 4 1 P a g e 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 5 1 P a g e