20250227Notice_of_Application_Order_No_36480.pdf

Office of the Secretary
Service Date
February 27,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-25-02
CORPORATION'S APPLICATION TO )
UPDATE AND ESTABLISH ITS CAPACITY ) NOTICE OF APPLICATION
DEFICIENCY PERIOD TO BE USED FOR )
AVOIDED COST CALCULATIONS ) NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 36480
On January 29,2025,pursuant to Order Nos. 32697,32802,and 35810,Avista Corporation
d/b/a Avista Utilities ("Company") applied to the Idaho Public Utilities Commission
("Commission") for approval of the Company's capacity deficiency period used for its avoided
cost calculations. The Company outlined its methodology and projected its first deficit to occur on
January 1, 2030.
The Commission now issues this Notice of Application and Notice of Modified Procedure
setting deadlines for interested persons to comment on the Application and for the Company to
reply.
BACKGROUND
A capacity deficiency case is used to determine when new qualifying facilities begin
avoiding capacity costs for a utility and are therefore eligible to start receiving capacity payments.
See Order No. 32697. Originally, each utility was required to file its capacity deficiency date case
when a utility submitted its Integrated Resource Plan("IRP")to the Commission, and the capacity
deficiency determined through the IRP planning process would be the starting point subject to the
outcome of the proceeding. See Order No. 32697. In 2017, the Commission amended Order No.
32697 to require"that each Idaho electric utility shall submit its updated capacity deficiency filing
after the Commission has acknowledged its IRP report, rather than upon its IRP filing...." Order
No. 33917 at 4. On June 8, 2023, the Commission further adapted this instruction in Order No.
35810 and required Idaho Power Company, Rocky Mountain Power, and the Company to file a
capacity deficiency case within 30 days of their respective IRPs being filed. The Company filed
its IRP with the Commission on December 30, 2024.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36480 1

NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company stated that its 2025 IRP identified
January 1, 2030, as its first long term deficit date. The Company stated that this was earlier than
the January 1, 2034, capacity deficiency date that was projected in its 2023 IRP.
YOU ARE FURTHER NOTIFIED that the Company summarized major changes in its
generation and stated that these changes were the reason for projecting an earlier capacity
deficiency date. These changes included a new wind PPA, closure of a qualifying facility,
increased industrial demand,the addition of hydroelectric projects, and a portion of Chelan PUD's
capacity. The Company also indicated that several thermal plants were also scheduled for
retirement.
YOU ARE FURTHER NOTIFIED that the Company's forecast reflected January 2024's
record peak load. The Company cited its IRP and stated that, although temporary capacity
shortfalls appeared in 2026, these would be addressed through market purchases. The Company
proposed using 2030 as the capacity deficiency date since earlier deficiencies were minimal and
manageable through procurement strategies.
YOU ARE FURTHER NOTIFIED the Company outlined its methodology and stated that
it determined its 2030 capacity shortage by comparing peak load plus planning reserve margin
against expected resource capacity. The Company stated that this metric—the 5% Loss of Load
Probability standard—aimed to meet extreme conditions in 95% of scenarios. The Company
conducted hourly simulations with 1,000 different futures varying weather and outages to establish
a 24%winter planning reserve margin. The Company further stated that instead of developing its
own resource capacity values, it adopted Western Resource Adequacy Program metrics for
efficiency and consistency. However, the Company adjusted these figures for long-term planning
by incorporating expected declines in variable energy resource capabilities. The Company
validated these projections through reliability studies for both 2030 and 2045.
YOU ARE FURTHER NOTIFIED the Company stated that it incorporated Commission
Staff s previous recommendation and based its reliability metrics on the Company's own studies
rather than regional requirements. The Company stated that this approach yielded similar results
to previously approved methods since both identified the same resource deficits—differing only
in how existing resource capacities were accounted for.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36480 2

YOU ARE FURTHER NOTIFIED that the Application is available for public inspection
during regular business hours at the Commission's office. This document is 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 all proceedings in this case will be held pursuant
to the Commission's jurisdiction under Title 61 of the Idaho Code.
YOU ARE FURTHER NOTIFIED 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 MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and it will review the case through written
submissions under the Commission's Rules of Modified Procedure Rules 201-204 of the Idaho
Public Utilities Commission's Rules of Procedure, IDAPA 31.01.01.201-204. The Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application may file a written comment explaining why they support or oppose the Application.
Persons who would like a hearing must specifically request a hearing in their written comments.
Persons shall have until March 20, 2025, to file written comments. Comments must be filed
through the Commission's website or by e-mail unless computer access is unavailable. To
comment electronically,please access the Commission's website at www.puc.idaho.gov. Click the
"Case Comment Form" and complete the form using the case number as it appears on the front of
this document.
To file by e-mail, persons must e-mail the comments to the Commission Secretary and all
parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide
their name, address, and the Case Number under which they are commenting. Persons submitting
a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a
public record under Idaho Code § 74-101(13), and all information provided by such person is
available for public and media inspection.
If computer access is unavailable, then comments may be mailed to the Commission and
the Parties at the addresses below.Persons submitting a comment by mail must provide their name,
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36480 3

address, and the Case Number under which they are commenting. Persons submitting a comment
by mail also acknowledge that submitting a comment in an open case constitutes a public record
under Idaho Code§74-101(13),and all information provided by such person is available for public
and media inspection.
For the Idaho Public Utilities For the Company:
Commission:
Commission Secretary David Meyer
Idaho Public Utilities Commission Senior Counsel
PO Box 83720 PO Box 3727
Boise, ID 83720-0074 1411 E. Mission Avenue, MSC-10
secretgagpuc.idaho.gov Spokane, WA 99220-3727
David.Meyer(d)avistacorp.com
Street Address for Express Mail:
Shawn Bonfield
11331 W. Chinden Blvd. Sr. Manager, Regulatory Policy
Building 8, Suite 201-A PO Box 3727
Boise, ID 83714 1411 E. Mission Avenue,MSC-27
Spokane, WA 99220-3727
Shawn.Bonfieldgavistacorp.com
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
March 27, 2025.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that the Company's Application be processed by Modified
Procedure, Rules 201-204. Persons interested in submitting written comments must do so by
March 20, 2025. The Company must file any reply comments by March 27, 2025.
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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36480 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 271h day of
February 2025.
EDWARD LODGE, P IDENT
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(7N R. HAMMOND JR., COMMISSIONER
DAYN HARD E, COMMISSIONER
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Commission Secre
IALega1\ELECTRIC\AW-E-25-02_CDP\orders\AW E2502_NtcApp_Mod_md.docx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36480 5