HomeMy WebLinkAbout20250203Notice_of_Filing_Order_No_36453.pdf Office of the Secretary
Service Date
February 3,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA'S 2025 ) CASE NO. AVU-E-24-13
ELECTRIC INTEGRATED RESOURCE )
PLAN ) NOTICE OF FILING
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 36453
On December 30, 2024, Avista Corporation d/b/a/ Avista Utilities ("Company") filed its
2025 Electric Integrated Resource Plan ("2025 IRP")with the Idaho Public Utilities Commission
("Commission"). The 2025 IRP outlines and analyzes the Company's strategy for meeting its
customers'projected energy needs. The Company files an IRP every two years and uses it to guide
resource acquisitions.
With this Order, the Commission provides notice that the Company has filed its 2025
Electric IRP and sets deadlines for interested persons to petition to intervene in the case.
NOTICE OF FILING
YOU ARE HEREBY NOTIFIED that the Company's 2025 IRP is approximately 365
pages, with approximately 1,354 pages of appendices. The 2025 IRP sets forth 12 sections: (1)
Introduction; (2)Preferred Resource Strategy; (3)Economic&Load Forecast; (4)Existing Supply
Resources; (5) Resource Need Assessment; (6) Distributed Energy Resources; (7) Supply-Side
Resource Options; (8) Transmission &Distribution Planning; (9)Market Analysis; (10) Portfolio
Scenario Analysis; (11) Action Items; (12) Washington Clean Energy Action Plan. 2025 IRP at
11-13.
YOU ARE FURTHER NOTIFIED that the Company represents that it is a
multijurisdictional utility serving electric customers in Washington and Idaho, and the Company
endeavors to consolidate state requirements into one plan filed every other year. Id. at 25.
YOU ARE FURTHER NOTIFIED that the Company represents that the 2025 IRP process
included a series of public meetings with a mix of the traditional technical experts, such as public
utility commission staff, regional utility professionals, project developers, advocacy and
environmental groups, concerned state agencies, and both commercial and residential customers.
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Id. The Company states that various issues are combined with assumptions made about them and
included in analysis and modeling that provides an expectation of future prices for different
resources, energy efficiency, demand response, and storage options. Id. at 26. The Company then
develops a preferred portfolio of resources to serve future needs. Id.
YOU ARE FURTHER NOTIFIED that the Company represents that the 2025 IRP satisfies
Idaho's regulatory requirements as provided in Commission Order Nos. 22299 and 25260. Id. at
39.
YOU ARE FURTHER NOTIFIED that the Company represents that it used the same
methodology it used in the 2023 IRP with updated assumptions. Id. at 44. According to the
Company,the assumption changes cover matters like capacity and energy position results,updates
to energy efficiency and demand response potentials, updated supply-side resource options and
costs, refreshed wholesale market analysis, and additional methods for the portfolio optimization
analysis.
YOU ARE FURTHER NOTIFIED that the Company presents some highlighted
information with respect to its economic and load forecast. The Company represents that the
energy forecast grows 0.91% per year, which is higher than the annual growth rate in the 2023
IRP.Id. at 89. The Company expects a 214 average megawatt("aMW") increase in total load over
the forecast period, a 400 megawatt ("MW") winter peak increase, and a 380 MW summer peak
increase. Id. The Company represents that peak load growth is estimated at 1.32% in the winter
and 1.09% in the summer. Id.
YOU ARE FURTHER NOTIFIED that the Company presents some highlighted
information with respect to its existing supply resources. The Company states that hydro represents
approximately half of the Company's winter generating capability,and that natural gas-fired plants
remain a fundamental element of the system reliability of the Company's generation portfolio.Id.
at 117. The Company still plans to transfer ownership of Colstrip 3 & 4 to Northwestern Energy
on January 1, 2026. Id. The Company represents that the 97.5 MW Clearwater Wind project in
Montana became commercially operational in September 2024. Id.
YOU ARE FURTHER NOTIFIED that the Company presents some highlighted
information with respect to its resource need assessment. The Company states that its Planning
Reserve Margin requirement is 24% in the winter, and 16% in the summer. Id. at 137. The
Company's first capacity and energy resource deficiency begins in January 2030,and the WRAP's
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qualifying capacity credits are used for the Company's resource capacity position. Id. The
Company represents that it has sufficient clean energy resources to meet its projected
Washington's Clean Energy Transformation Act ("CETA") targets through 2034 under normal
conditions. Id.
YOU ARE FURTHER NOTIFIED that the Company presents some highlighted
information with respect to its distributed energy resources. The Company represents that energy
efficiency currently serves 156 aMW of load, representing nearly 12.2% of customer demand. Id.
at 157. The Company states that over 3,000 energy efficiency measures and 16 demand response
options are considered for resource selection. Id. The Company represents that its net metering
program includes 4,433 customers generating 29.9 MWs, and that Community solar, roof-top
solar, energy efficiency, demand response, and distributed energy storage are options for utility
resource selection. Id.
YOU ARE FURTHER NOTIFIED that the Company presents some highlighted
information with respect to its supply-side resource options. The Company represents that solar,
wind, and other renewable resource options are modeled as Purchase Power Agreements instead
of utility ownership. Id. at 185. The Company states that future competitive acquisition processes
might identify different technologies available at a different cost, size, or operating characteristics,
and may include existing generation options.Id. The Company represents that Inflation Reduction
Act ("IRA") tax incentives are included in resource costs, and that the Company models several
energy storage options including pumped storage hydro,lithium-ion,vanadium flow,zinc bromide
flow, liquid air, hydrogen, iron-oxide, and ammonia. Id.
YOU ARE FURTHER NOTIFIED that the Company presents some highlighted
information with respect to its transmission and distribution planning. The Company states that it
develops transmission and distribution system plans, and that Transmission Planning estimates
costs of locating new generation on the Company system for the IRP. Id. at 209. The Company
represents that it formed a Distribution Planning Advisory Group for additional stakeholder
involvement, education, and transparency, and that a cluster study process for new generation
connections with 26 projects including wind, solar, energy storage, natural gas, biomass, and
hydro. Id.
YOU ARE FURTHER NOTIFIED that the Company presents some highlighted
information with respect to its market analysis. The Company represents that solar and wind
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dominate future generation across the West while natural gas and increasing amounts of storage
will ensure resource adequacy as existing coal and natural gas plants retire or reduce dispatch. Id.
at 225. The Company states that by 2045, this study assumes 94% of generation in the Pacific
Northwest will be carbon free, up from approximately 70-80% today, depending on hydro
conditions. Id. The Company represents that greenhouse gas emissions will fall to historic lows
with the expansion of renewables and continued coal and natural gas plant retirements. Id. The
Company represents that by 2045, expected emissions will be 62% less than in 1990. Id. The
Company states that the 20-year wholesale electric price forecast(2024-2045)is $44.14 per MWh,
and that expansion of renewables reduces future mid-day prices,but evening and nighttime prices
will be at a premium compared to today's pricing. Id. The Company represents that natural gas
prices continue to remain low; for example, the levelized price at Stanfield (2024-2045) is $3.61
per dekatherm.Id.
YOU ARE FURTHER NOTIFIED that the Company presents some highlighted
information with respect to its portfolio scenario analysis. The Company represents that energy
storage and demand response represent the most viable options to satisfy new short-term capacity
needs and nuclear energy is necessary to meet extreme load growth scenarios.Id. at 255. The IRA
and high wholesale market prices have driven early acquisition of wind generation. Id. According
to the Company, shifts in power market prices, wind prices, and the availability of low-cost
interconnects can affect the amount of wind in its Preferred Resource Strategy. Additionally, if
transmission and fuel storage can be constructed, natural gas will remain the lowest cost capacity
resource for Idaho customers.
YOU ARE FURTHER NOTIFIED that the Company presents ten action items in the 2025
IRP. Id. at 322-23. The Company represents that the 2025 Action Plan was developed with input
from Commission Staff, the Company's management team, and members of the Technical
Advisory Committee on the analytical and other projects needed to further development and
inclusion in the 2027 IRP.Id.
The Company's action items include: (1) determining the Northeast CT's retirement date
and planning to replace its capacity; (2)pursuing opportunities to expand transmission within the
Company's service territory and connecting systems; (3) developing an all-source Request for
Proposal in 2025 for new resources to meet future capacity deficiencies; (4) investigating options
to increase natural gas availability and resiliency without adding pipelines; (5)incorporating future
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policy requirements for CETA and the Washington Climate Commitment Act implementation as
directed by the Washington Utilities and Transportation Commission, legislature, or voter
initiatives; (6)exploring how end use load forecasting should or should not be included in the 2027
plan by reviewing lessons learned from the new load forecast process completed in the 2025 IRP;
(7) evaluating an Integrated System Plan methodology coordinating resource, transmission, and
distribution planning to ensure lowest cost plan for both natural gas and electric customers; (8)
working with the Technical Advisory Committee to determine the best strategy for engagement,
such as meeting frequency, along with best available technologies to facilitate communication and
data availability; and (9) determining the Company's resource need impact of new generation
and/or loads within its balancing authority not associated with its load service; and (10)
incorporating any new Customer Benefit Indicators, targets, or directives from the 2025 Clean
Energy Implementation Plan.Id. at 322-23
YOU ARE FURTHER NOTIFIED that the 2025 IRP and supporting documentation have
been filed with the Commission and are available for public inspection during regular business
hours at the Commission's office. These documents are also available on the Commission's
website at www.puc.idaho.gov. Click on the "ELECTRIC" icon, select "Open Cases," and click
on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over the
Company, its filing, and the issues pertaining to this case pursuant to Title 61 of the Idaho Code,
and that all proceedings in this matter will be conducted pursuant to the Commission's Rules of
Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to
obtain parties' rights of participation must file a Petition to Intervene with the Commission
pursuant to this Commission's Rules of Procedure 71-73, IDAPA 31.01.01.072-073. Persons who
wish to intervene as a party must file a Petition to Intervene no later than 21 days after the
date of service of this Order. Persons desiring to present their views without parties' rights of
participation do not have to intervene and may present their comments without prior notification
to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice of
Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit
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numbers to each party in this proceeding. Once the Notice of Parties is issued, Commission Staff
will informally confer with the parties to discuss a schedule to process this case and other issues
as may be raised by the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as the
Company's representatives in this matter:
David Meyer Patrick Ehrbar
Avista Corporation Avista Utilities
P.O. Box 3727 P.O. Box 3727
1411 E. Mission Ave. 1411 E. Mission Ave.
Spokane, WA 99220-3727 Spokane, WA 99220-3727
david.me ergavistacorp.com pat.ehrbargavistacorp.com
avistadockets&avi stacorp.com
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this case for the purpose
of obtaining parties' rights of participation must file a Petition to Intervene with the Commission,
under Rules 71-73, IDAPA 31.01.01.071-073, no later than 21 days after the service date of this
Order.
IT IS FURTHER ORDERED that, after the Secretary issues a Notice of Parties, Staff will
informally confer with the parties to discuss the appropriate scheduling of this case.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
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DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3rd day of
February 2025.
EDWARD LODGE, CO ISSIONER
R. HAMMOND JR., COMMISSIONER
ATTEST:
;L Ba o a e
Commission Secreta
I:\Legal\ELECTRIC\AW-E-24-13_IRP\orders\AWE2413_Ntc App_Int_at.docx
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