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HomeMy WebLinkAbout20250228AVU to Staff 5 Attachment A - 2024 ID 1st Qtr - Combined.pdf Office of the Secretary Service Date January 11,2024 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. 36056 AVOIDED COST CALCULATIONS ) On August 24, 2023, pursuant to Order No. 35810, Avista Corporation d/b/a Avista Utilities ("Company" or "Avista") applied to the Commission for approval of its capacity deficiency period used for its avoided cost calculations ("Application"). The Company requested its Application be processed by Modified Procedure. On September 14, 2023, the Commission issued a Notice of Application and set deadlines for public comments and the Company's reply. Order No. 35923. Commission Staff ("Staff') submitted comments to which the Company replied. No other comments were received. With this Order, the Commission approves the method used to determine the capacity deficiency period—with the first deficit date to be determined after the Company has submitted a satisfactory compliance filing. BACKGROUND Under the Public Utility Regulatory Policies Act of 1978 ("PURPA"),the Commission has established a surrogate avoided resource("SAR")method and an Integrated Resource Plan("IRP") method to calculate avoided cost rates for qualifying facilities("QFs"). Under both methods, a QF receives capacity payments only after the utility reaches the applicable capacity deficit date. Order No. 32697. The utility determines the capacity deficit date through the biennial IRP planning process and submits it to the Commission in a proceeding outside the IRP docket. The capacity deficit date determined in the IRP process is presumed to be correct as a starting point but will be subject to the outcome of the subsequent capacity deficiency case. 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 modified its instruction in Order No. 35810 and required Idaho Power ORDER NO. 36056 1 Company, Rocky Mountain Power, and Avista to file capacity deficiency cases within 30 days of their respective IRPs being filed. The Company filed its 2023 IRP on June 1, 2023.1 APPLICATION The Company stated that its 2023 IRP identified January 1, 2034, as its new capacity deficiency date. The Company estimated its capacity deficiency date was later than the capacity deficiency date initially estimated in its 2021 IRP because the Company has acquired significant new resources since that time; the Company also listed certain new resources in its Application. The Company represented that it did not include any Colstrip data into its capacity filing because the exact date of the transfer of that resource to NorthWestern Energy was not yet known—although the Company did state that the transfer should happen at the end of 2025. STAFF COMMENTS Staff recommended that the determination of the first capacity deficiency date and deficiency amounts for new PURPA contracts should rely on a compliance filing incorporating the Company's updated peak load forecast and a Load and Resource Balance("L&R"). Staff stated that the L&R should be derived using the Company's traditional method ("Traditional Method"), rather than the method employed in the Company's Application. In November 2023,the Company indicated that it would have a new load forecast. Staff expressed concerns about the new method used by the Company to quantify capacity amounts for meeting customer loads reliably. Consequently, Staff suggested that, before the next deficiency date update case, the Company should (1) demonstrate that its Qualified Capacity Contribution ("QCC") values align with its resource generation capabilities relative to peak loads and(2) develop a Planning Reserve Margin ("PRM")based on reliability targets. If the Commission agrees, Staff will verify the updated load forecast and L&R through a compliance filing. 1. Load and Resource Balance Staff compared the Company's winter and summer capacity positions and found that, due to small but significant differences in capacity positions between the Company's proposed method and the Traditional Method (with the Traditional Method consistently yielding higher capacity positions), it is reasonable to continue using the Traditional Method until the Company addresses 1 The Company stated that it originally submitted its Capacity Deficiency filing on June 20,2023,but that it was not received by the Commission. ORDER NO. 36056 2 Staff s concerns with the proposed method. This matter is further discussed below and illustrated in Table Nos. 1 and 2. Table No. 1: Winter Capacity Position Comparison Capacity positions Capacity positions in in January under Capacity January under proposed traditional method Difference in Year method (MW) (MW) January (MW) 2024 224 318 94 2025 214 308 94 2026 122 215 93 2027 150 233 83 2028 140 224 83 2029 113 186 73 2030 99 172 73 2031 76 148 72 2032 53 126 72 2033 35 107 72 2034 (52) (8) 43 2035 (76) (32) 43 2036 (166) (125) 41 2037 (196) (155) 41 2038 (227) (186) 42 2039 (261) (219) 42 2040 (297) (256) 42 2041 (405) (343) 62 2042 (730) (670) 60 2043 (790) (725) 66 2044 (842) (777) 66 2045 (896) (830) 66 ORDER NO. 36056 3 Table No. 2: Summer Capacity Position Comparison Capacity positions in Capacity positions in August under August under Capacity proposed method traditional method Difference in Year (MW) (MW) August(MW) 2024 264 350 85 2025 326 411 85 2026 233 316 83 2027 271 355 84 2028 262 346 84 2029 228 308 79 2030 208 287 79 2031 184 273 90 2032 158 248 90 2033 128 218 90 2034 40 105 65 2035 16 81 65 2036 (49) 8 57 2037 (82) (25) 57 2038 (116) (61) 55 2039 (152) (97) 55 2040 (185) (129) 55 2041 (281) (208) 73 2042 (572) (486) 86 2043 (636) (542) 95 2044 (686) (591) 95 2045 (738) (644) 2. Loads in the L&R The loads in the L&R are comprised of two things: the load forecast and the PRM. i. Load Forecast Staff was concerned about the accuracy of the proposed load forecast—prepared 15 months before the Commission's decision on capacity deficiency and the subsequent avoided cost rates. Staff recommended filing an updated L&R that explained the differences between the updated and proposed load forecasts. Staff also noted that the Commission mandates the use of the latest information for calculating rates. Staff believed the current forecast—developed in summer 2022—was outdated. Staff noted the Company was expected to have a more current forecast in November 2023 as discussed earlier. ORDER NO. 36056 4 ii. The PRM The PRM is incorporated into the load forecast to ensure that there is adequate additional capacity for meeting reliability targets. In the 2023 IRP, the Company used "16 percent of the winter load and 7 percent of the summer load as PRMs," determined through simulations to achieve a five percent loss of load probability ("LOLP"). Staff Comments at 6. However, in the same IRP, the Company adjusted the LOLP values to "22 percent for winter load and 13 percent for summer load" to align with capacity positions from its Traditional Method, rather than explicitly deriving PRMs to meet reliability targets. Id. Although Staff agreed this approach was reasonable for maintaining short-term capacity positions, Staff recommended deriving PRMs from the Company's reliability target with capacity contribution values developed in an appropriate manner. 3. Resources in the L&R Staffs assessment of resources in the L&R centered on two key aspects: (1) determining if the resources included in the L&R were appropriate for establishing the capacity deficiency date for avoided cost rates, and(2)evaluating the reasonableness of capacity contribution factors at the system peak for those resources. i. Resources included in the L&R Staff believed that the following resources were reasonable and appropriate to include in the L&R: the Colstrip coal plant,2 the Lancaster natural gas purchased power agreement("PPA"), the Chelan PUD Hydro PPA, the Columbia Basin Hydro PPA, and the Clearwater Wind PPA. Of note, for the PPA's listed, Staff stated that each had been signed, executed, and did not require additional Commission approval. ii. Resource Capacity Contributions The Company utilized QCC values from the Western Resource Adequacy Program ("WRAP")to determine its resource capacity within the L&R("WRAP Method"). The Company justified this by asserting alignment with historical performance within a regional context during peak periods. However, Staff suggested that the Company should focus on its own system's peak loads and resource contributions rather than relying on WRAP QCC values—as regional variations might not match the Company's peak hours. Staff recommended the Company use the Traditional 2 Staff stated that it was appropriate to remove the Colstrip coal plant from the L&R starting in 2026 due to the Company's transfer of ownership agreement with Northwestern Energy that had been signed and fully executed. ORDER NO. 36056 5 Methods for developing the L&R and determining capacity deficiency dates and amounts until evidence demonstrates the representativeness of WRAP QCC values for the Company's system peaks. REPLY COMMENTS The Company stated that it agreed with Staff s recommendation to update the load forecast and also use the Traditional Method to determine its capacity position. The Company noted Staff s concerns with the filing in this case and proposed a new method for future filings. The Company agreed with Staffs recommendation to update the load forecast when more current data becomes available in late November 2023. The Company stated it agreed with Staff regarding the inclusion of signed resources and exclusion of the Colstrip for capacity determination starting in 2026. The Company stated that it wished to use the Traditional Method for this filing; however, the Company proposed a modified version of the WRAP Method(with PRMs from the Company's reliability targets) in future filings ("Modified WRAP Method"). The Company described the Modified WRAP Method as follows: 1) Avista will continue to use the Western Reginal Adequacy Program's (WRAP's) qualified capacity contribution(QCC)methodology and accounting for resources. 2) Any variable energy resource (VER), demand response, or energy storage facility included in the resource position will include a modified QCC for future years given expected changes in its ability to meet regional loads. This will either use the methodology described in the 2023 IRP (Chapter 6, pages 22-23) or will use any future guidance provided by the WRAP, if available. 3) Avista will conduct a loss of load probability(LOLP) or reliability study in the 2025 IRP process to determine the appropriate Planning Reserve Margin(PRM) necessary to achieve a 5% LOLP using the WRAP accounting methodology and the resulting resource QCC values. Company Reply Comments at 1-2. The Company's reply comments also included a significant amount of additional information for future filings that was not related directly to this filing. COMMISSION DECISION The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502, and -503. Idaho Code § 61-501 authorizes the Commission to "supervise and regulate every public utility in the state and to do all things necessary to carry out the spirit and intent of the [Public Utilities Law]." Idaho Code §§ 61-502 and -503 empower the Commission to investigate rates, charges, rules, regulations, practices, and contracts of public utilities and to determine whether ORDER NO. 36056 6 they are just, reasonable, preferential, discriminatory, or in violation of any provision of law, and to fix the same by order. In addition, the Commission has authority under PURPA and Federal Energy Regulatory Commission ("FERC") regulations to set avoided costs, to order electric utilities to enter fixed-term obligations for the purchase of energy and capacity from QFs, and to implement FERC rules. The Commission may enter any final order consistent with its authority under Title 61 and PURPA. The Commission has reviewed the record,including the Company's filing and attachments, Staffs comments, and the Company's reply. The Commission finds that a compliance filing is necessary and directs the Company to use the Traditional Method for deriving an updated L&R using the peak load forecasts for both summer and winter with updated information as discussed in Staffs Comments. Likewise, the Commission orders the Company to show that the method used to derive the Company's QCC values reflect the generation capacity of the Company's resources relative to the peak loads within the Company's system before the next capacity deficiency update case. The Commission also orders the Company to develop its PRM driven by the Company's reliability target and appropriately developed capacity contribution factor system before the next capacity deficiency update. With these conditions in mind, the Commission finds it reasonable to approve the method used to determine the Company's capacity period. The first deficit date will be determined after the Company has submitted a compliance filing that corrects the necessary issues, and provides the desired explanations, as recommended by Staff and discussed above. ORDER IT IS HEREBY ORDERED that, within 21 days, the Company must file an updated L&R as a compliance filing using the Company's Traditional Method for deriving it by using the most current peak load forecasts for both winter and summer. IT IS FURTHER ORDERED that the Company is to demonstrate that the method and inputs used to derive the Company's QCC values reflect the generation capacity of the Company's resources relative to the peak loads within the Company's system prior to the next capacity deficiency update. IT IS FURTHER ORDERED that the Company is to develop its PRM driven by the Company's reliability target and appropriately developed capacity contribution factor system prior to the next capacity deficiency update. ORDER NO. 36056 7 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 I Ith day of January 2024. ERIC ANDERSON, PRESIDENT ? — 24�� HN R. HAMMOND JR., COMMISSIONER G DWARD Ldbig, COMMISSIONER ATTEST: ioa Ljrno'kAchez Interim Commission Secretary IALegal\ELECTRIC\AV U-E-23-12_CapDefiorders\AV UE2312_Final_md.docx ORDER NO. 36056 8 Office of the Secretary Service Date January 25,2024 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA'S 2023 ) CASE NO. AVU-E-23-05 ELECTRIC INTEGRATED RESOURCE ) PLAN ) ORDER NO. 36072 On May 31, 2023, Avista Corporation d/b/a/ Avista Utilities ("Company") filed its 2023 Electric Integrated Resource Plan ("2023 IRP") with the Idaho Public Utilities Commission ("Commission"). The 2023 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. The Commission requires the utility to update the IRP biennially, allow the public to participate in its development, and to implement the IRP. See Order Nos. 22299 and 25260. The Commission has asked that a utility's IRP explain its current load/resource position, its expected responses to possible future events, the role of conservation in its explanations and expectations, and discuss any flexibilities and analyses considered during comprehensive resource planning, such as: (1) examination of load forecast uncertainties; (2) effects of known or potential changes to existing resources; (3) consideration of demand and supply-side resource options; and (4) contingencies for upgrading, optioning and acquiring resources at optimum times (considering cost, availability, lead time, reliability, risk, etc.) as future events unfold. See Order No. 22299. The Company's 2023 IRP is approximately two hundred and eighty (280) pages, with approximately one thousand five hundred (1,500) pages of appendices. The 2023 IRP sets forth twelve sections: (1) Introduction; (2) Economic & Load Forecast; (3) Existing Supply Resources; (4)Long-Term Position; (5)Distributed Energy Resources; (6) Supply-Side Resource Options; (7) Transmission&Distribution Planning; (8)Market Analysis; (9)Preferred Resource Strategy; (10) Portfolio Scenario Analysis; (11)Washington Customer Impacts; and(12)Action Items. 2023 IRP at v-vi. The Company represents that the 2023 IRP process included a series of public meetings with a mix of the traditional technical experts, such as utility commission staff, regional utility professionals, project developers, advocacy, and environmental groups, concerned state agencies, and both commercial and residential customers. Id. The Company stated that various issues were ORDER NO. 36072 1 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 1-2. The Company then developed a preferred portfolio of resources to serve future needs.Id. STAFF COMMENTS Commission Staff("Staff') reviewed the Company's 2023 IRP filing, responses to audit and production requests, and customer and stakeholder feedback received through the public input process. Staff Comments at 2. Staff believed that the 2023 IRP met the minimum requirements set forth in Order Nos. 22299 and 25260, and Staff recommended the Commission acknowledge the Company's 2023 IRP. Id. Staff noted that its recommendation was based on Staff s active participation in the IRP Technical Advisory Committee ("TAC"). Id. Staff identified several topic areas from the 2023 IRP Staff believed required additional review of, or focus on, in future IRPs including: (1) Washington Environmental Legislation; (2) Western Resource Adequacy Program Planning ("WRAP") requirements; (3) Planning Reserve Margin ("PRM"); and (4) Demand Side Management ("DSM") programs. Id. Based on those identified topics, Staff additionally recommended that the Company: • report to the Idaho Commission regarding the status of Washington's Climate Commitment Act ("CCA") rules and its impact on Idaho customers, in a timely manner. • demonstrate through evidence that the Qualifying Capacity Contribution ("QCC") values of its resources are representative of the capacity contributions of its resources at the Company's system peak loads in the next IRP. • improve the IRP reliability analysis to measure resource adequacy metrics on all portfolios under evaluation across the full planning horizon. • develop a method to determine the PRMs that are explicitly derived from the Company's reliability target using appropriately developed capacity contribution values. • model future Idaho Demand Response ("DR") programs within the WRAP as a reduction to P50 peak load. • consider and use the avoided costs provided in Supplement to Production Request No. 8 as the most recently filed avoided costs for the purposes of program planning and future cost-effectiveness calculations. • exclude the national carbon tax and similar environmental adders, known or otherwise, from its baseline portfolio. Id. at 9-10. ORDER NO. 36072 2 COMPANY REPLY COMMENTS It its reply comments, the Company agreed with Staff that increased communication, especially for the CCA impacts, would be beneficial, and the Company proposed setting up a re- occurring meeting with Staff to discuss any IRP related issues, including CCA or other topics of interest. Company Reply Comments at 1. The Company agreed that the WRAP QCCs are determined using regional loads and resource portfolio. Id. at 1-2. The Company proposed continuing to use the WRAP accounting mechanism for the load and resources balance and continuing to use the WRAP's QCC values for its resources. Id. at 2. The Company noted that it would conduct a Company load only reliability study to determine an appropriate PRM to serve its loads while limiting market purchase during peak load hours to 330 MW, and the Company would then select new resources meeting this target PRM rather than the WRAP's PRM in the 2025 IRP. Id. With respect to improving the IRP reliability analysis to measure resource adequacy metrics on all portfolios under evaluation across the full planning horizon, the Company indicated that the time and computing capability to fulfill the request would be difficult to achieve. Id. at 4. The Company reasoned that given the agreement to conduct additional reliability work for the 2025 IRP, the Company would likely have to limit this analysis given the time to conduct this work and budget constraints,and the Company would update the TAC on the progress of this study at the July 2024 meeting. Id. With respect to developing a method to determine the PRMs that are explicitly derived from the Company's reliability target using appropriately developed capacity contribution values, the Company indicated that it would select new resources meeting a new PRM based on the Company's loads rather than the WRAP's PRM.Id. at 2-3. The Company represented that even though it believed DR should be treated as a resource and not reduce the planning reserve requirements,the WRAP's methodology allows this reduction in the P50 peak load, and given the Company's intends to follow the WRAP's accounting methodology, the Company would make that change in the 2025 IRP. Id. at 3. The Company indicated that in modeling practice,DR would be modeled as a resource,but receive its QCC value plus the PRM. Id. at 3 n.2. The Company agreed with Staff s request to use the avoided costs provided in Supplement to Production Request No. 8 as the most recently filed avoided costs for avoided cost calculation ORDER NO. 36072 3 related to acquiring resources or energy efficiency; however,the Company expressed reservations regarding the full impact of that request. Id. at 3. With respect to the national carbon tax and similar national environmental adders, the Company represented that it believed it should include all potential costs given their probability of happing in the future.Id. The Company represented that it assumed there was a 3 3%probability of a national carbon policy being enacted in 2030, and if the Company did not include this risk, it might select resources that would negatively impact Idaho customers if such a policy was enacted. Id. The Company also noted that the IRP represents meeting system loads for both Idaho and Washington customers, and that if the IRP is to be kept as a single document and analysis for both states with shared resources, it might be impossible to separate interests of some parties in each state.Id. The Company stated that it was willing to explore with Staff the implications and options of separating resources and/or resource plans in Washington. Id. at 3-4. However, the Company reasoned that when it comes to actual operations/cost recovery of assets, it would be challenging to protect Idaho customers from all impacts of not-least cost resource decisions from other states. Id. at 4. The Company noted that by continuing to model the Company's system as separate in planning, it would not represent the true cost to Idaho customers unless resources are no longer allocated using the Production Transmission ratio in the future. Id. COMMISSION FINDINGS AND DECISION The Commission has jurisdiction over the Company's Application and the issues in this case under Title 61 of the Idaho Code including Idaho Code §§ 61-301 through 303. The Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts of all public utilities and to determine whether they are just, reasonable, preferential, discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code §§ 61-501 through 503. The Commission appreciates the active participation and input of Staff and members of the TAC in the process, and the Commission is confident that input helps the Company develop a better and more comprehensive IRP. The Commission notes the importance of using the most accurate inputs and calculations for QCC values as representative of the capacity contributions of the Company's resources at the system peak loads, and the importance of calculating PRMs using appropriately developed capacity contribution values in the Company's next IRP. The Company ORDER NO. 36072 4 is directed to continue working with Staff toward achieving such accuracy in all aspects of the IRP. The Commission also finds it reasonable for the Company to use the avoided costs as provided in the Company's Supplement to Production Request No. 8 as the most recently filed avoided costs for purposes of program planning and future cost-effectiveness calculations. Having reviewed the record, the Commission finds that the Company's 2023 IRP satisfies the requirements in the Commission's prior orders, and the Commission acknowledges the Company's Electric 2023 IRP. In doing so, the Commission reiterates that an IRP is a working document that incorporates many assumptions and projections at a specific point in time. An IRP is a plan, not a blueprint, and by issuing this Order the Commission merely acknowledges the Company's ongoing planning process, not the conclusions or results reached through that process. The Commission does not approve the Company's 2023 IRP, or any resource acquisitions referenced in it,endorse any particular element in it,opine on the Company's prudence in selecting the 2023 IRP's preferred resource strategy or specific portfolio, nor allow or approve any form of cost recovery. The appropriate place to determine the prudency of the Company's decisions to follow or not follow the 2023 IRP, and the validation of predicted performance under the 2023 IRP, is in a general rate case or other proceeding where the issue is noticed. ORDER IT IS HEREBY ORDERED that the Company's Electric 2023 IRP is acknowledged. THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date upon this Order regarding 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 and 62-619. ORDER NO. 36072 5 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 25fl'day of January 2024. ERIC ANDERSON, PRESIDENT HN R. HAMMOND JR., COMMISSIONER EDWARD LODGE, COMMISSIONER ATTEST: I Ja-��) oni Ba%mSe-`SJ&e4z Commission Secretary IALegahELECTRIC AW-E-23-05 IRP\orders\AVUE2305_FO_cb.docx ORDER NO. 36072 6 Office of the Secretary Service Date February 5,2024 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE JOINT PETITION ) CASE NO. AVU-E-23-14 OF AVISTA CORPORATION AND STIMSON ) LUMBER COMPANY FOR APPROVAL OF ) ORDER NO. 36078 AMENDMENT NO. 3 TO POWER ) PURCHASE AND SALE AGREEMENT ) On December 8, 2023, the Idaho Public Utilities Commission ("Commission") issued Order No. 36019, directing Avista Corporation d/b/a Avista Utilities ("Company") to submit a compliance filing within thirty (30) days to reflect language modifications and updated avoided cost rates as provided by the Order. On December 20, 2023, the Company filed Amendment No. 4 to the Power Purchase Agreement as its compliance filing to comply with Order No. 36019. Following discussions with Commission Staff, on January 22, 2024, the Company filed Amendment No. 5 to revise Amendment No. 4. COMMISSION FINDINGS AND DECISION The Commission has jurisdiction over the Company's applications and the issues in these cases under Title 61 of the Idaho Code including Idaho Code §§ 61-301 through 303. The Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts of all public utilities and to determine whether they are just, reasonable, preferential, discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code §§ 61-501 through 503. Having reviewed the record and all submitted materials, the Commission finds that the Company's compliance filing on December 20,2023, as revised by the filing on January 22,2024, complies with the requirements set forth in Order No. 36019. ORDER IT IS HEREBY ORDERED that the Company's compliance filings are approved. THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date upon this Order regarding any matter decided in this Order. Within seven (7) days after any person has petitioned for ORDER NO. 36078 1 reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626 and 62-619. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 5th day of February 2024. ERIC ANDERSON, PRESIDENT HN R. HAMMOND JR., COMMISSIONER G EDWARD LODGE, OMMISSIONER ATTEST: i a ArrifoUlchez Commission Secretary IALega1\ELECTRIC\AW-E-23-14_Stimson PPA\ordersWWE2314_FO_Comp_cb.docx ORDER NO. 36078 2 Office of the Secretary Service Date February 15,2024 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA'S ANNUAL ) CASE NO. AVU-E-23-13 COMPLIANCE FILING TO UPDATE THE ) LOAD AND GAS FORECASTS IN THE ) INCREMENTAL COST INTEGRATED ) ORDER NO. 36086 RESOURCE PLAN AVOIDED COST MODEL ) TO BE USED FOR AVOIDED COST ) CALCULATIONS ) On September 19, 2023, Avista Corporation ("Company") submitted a compliance filing requesting an order accepting its updated load forecast, natural gas price forecast, and contract information components used as inputs to calculate its incremental cost Integrated Resource Plan ("IRP") avoided cost rates ("Filing"). On December 13, 2023, the Commission issued Order No. 36023 approving the Company's Filing subject to a compliance filing ("Compliance Filing")requiring the Company to use current data in its forecast and explain the differences between its updated forecasts and last year's forecasts. Order Nos. 32697 and 36023. On December 20, 2023, the Company submitted a Compliance Filing. At the Commission's January 16, 2024, Decision Meeting, Staff presented a Decision Memorandum which noted that Staff had reviewed the Company's Compliance Filing and recommended the Commission issue an Order specifying that the Company had fully complied Commission requirements as set forth in Order Nos. 32697 and 36023. COMMISSION FINDINGS AND DISCUSSION The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502 and- 503. The Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts of public utilities and to determine whether they are just, reasonable, preferential, discriminatory,or in violation of any provision of law,and to fix the same by order. Idaho Code §§ 61-502 and -503. In addition, the Commission has authority under Public Utility Regulatory Policies Act("PURPA")and Federal Energy Regulatory Commission("FERC")regulations to set avoided costs, to order electric utilities to enter fixed-term obligations for the purchase of energy from QFs, and to implement FERC rules. The Commission may enter any final order consistent with its authority under Title 61 and PURPA. ORDER NO. 36086 1 We have reviewed the record in this case. We find that the Compliance Filing complies with the requirements of Order No. 32697 in that it uses sufficiently current data.We also find that the Compliance filing adequately explains the differences between the current forecasts and the forecasts provided last year as required by Order No. 36023. For these reasons, the Commission finds that the updated forecasts are sufficiently current for use in the Company's IRP-based avoided cost model. Accordingly, the Commission approves the Filing as updated by the Company's Compliance Filing with an effective date of January 1, 2024. ORDER IT IS HEREBY ORDERED that the Company's Filing as updated is approved effective as of January 1, 2024. 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 151h day of February 2024. ERIC ANDERSON, PRESIDENT OHN R. HAMMOND JR., COMMISSIONER G Gw EDWAR D LODGE OMMISSIONER ATTEST: onic Ba -Sa z Commission Secretary I:\Legal\ELECTRIC\AV U-E-23-13_Forecast\orders\AV UE2313_Comp_md.docx ORDER NO. 36086 2 Office of the Secretary Service Date February 23,2024 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE JOINT PETITION ) CASE NO. AVU-E-24-02 OF AVISTA CORPORATION AND ) REGENTS OF THE UNIVERSITY OF IDAHO ) NOTICE OF APPLICATION FOR APPROVAL OF POWER PURCHASE ) AGREEMENT ) NOTICE OF MODIFIED PROCEDURE ORDER NO. 36098 On January 31, 2024, Avista Corporation ("Avista") and the Regents of the University of Idaho ("University") (collectively, the "Parties") filed a joint petition with the Idaho Public Utilities Commission ("Commission") requesting an order approving a Power Purchase Agreement ("Agreement")between the Parties for a 132.32 kW (AC) solar facility("Facility"). NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Parties represent that the Agreement is substantially the same as the Original Agreement approved by the Commission in Order No. 35440, which is set to expire by its terms on February 16, 2024, and the University intends to use the output from the Facility to serve the University's load. Application at 3-4. The Parties state that to the extent that the Facility generates output in excess of the University's load,the University has elected to sell all such output from the Facility to Avista at the avoided costs calculated at the time of delivery.Id. YOU ARE FURTHER NOTIFIED that the Parties represent that in the Agreement the Parties made minor modifications to the language of the Original Agreement to reflect Commission precedent in Order No. 35705, and the Agreement also contains language reflecting the significance of Commission approval of any amendment to the Agreement. Id. YOU ARE FURTHER NOTIFIED that the Application is available for public inspection during regular business hours at the Commission's office. The Application 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, and that all proceedings in this NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36098 1 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 HEREBY NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter, and that it will proceed under Modified Procedure pursuant to the Commission's Rules of Procedure 201-204, 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 the person supports or opposes the Application. Persons who would like a hearing must specifically request a hearing in their written comments and explain why written comments alone are insufficient. Persons interested in filing written comments must do by March 15, 2024. 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 http://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, 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. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36098 2 For the Idaho Public Utilities For Avista: Commission: Commission Secretary Michael G. Andrea Idaho Public Utilities Commission Chris Drake P.O. Box 83720 Avista Corporation Boise, ID 83720-0074 1411 East Mission, MSC-7, MSC-17 secretgagpuc.idaho.gov Spokane, WA 99202 michael.andreagavistacorp.com chri s.drakegavistacorp Street Address for Express Mail: For the Regents of the University of Idaho: 11331 W. Chinden Blvd. Building 8, Suite 201-A Edith Pacillo Boise, ID 83714 Office of General Counsel 322 E. Front Street, 340G Boise, ID 83702 elpacillo(a,uidaho.edu counselkuidaho.edu Gregory M. Adams Richardson Adams, PLLC 515 N. 27th Street Boise, ID 83702 greg(c�richardsonadams.c om YOU ARE FURTHER NOTIFIED that the Parties must file any reply comments by March 22, 2024. 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 final 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 Application be processed by Modified Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in filing written comments must do so by March 15, 2024. The Parties must file any reply comments by March 22, 2024. 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 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36098 3 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. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 23rd day of February 2024. ERIC ANDERSON, PRESIDENT R. HAMMOND JR., COMMISSIONER G EDWARD LODGE, MISSIONER ATTEST: J_ D.- 0 n' a AS.Achez Commission Secretary IALega1\ELECTRIC\AVU-E-24-02_Regmts PPA\orders\Ntc_App_Mod_cb.docx NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36098 4 Office of the Secretary Service Date January 4,2024 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) CASE NO. AVU-E-23-16 OF AVISTA CORPORATION,D/B/A/ ) AVISTA UTILITIES,REQUESTING ) NOTICE OF MODIFIED AUTHORITY TO ESTABLISH TARIFF ) PROCEDURE SCHEDULE 23 FOR DIRECT CURRENT ) FAST CHARGING(DCFC) OF ELECTRIC ) ORDER NO. 36053 VEHICLES ) On November 3, 2023, Avista Corporation, doing business as Avista Utilities ("Company"), filed an application ("Application") with the Idaho Public Utilities Commission ("Commission")requesting authority to establish electric tariff Schedule 23, "Direct Current Fast Charging ("DCFC") Rate Option," effective February 1, 2024. On November 22, 2023, the Commission issued a Notice of Application,Notice of Suspension of Proposed Effective Date, and Notice of Intervention Deadline. Order No. 36008.No parties intervened. On December 27, 2023, a Notice of Parties was issued. NOTICE OF MODIFIED PROCEDURE YOU ARE HEREBY NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter, and that it will proceed under Modified Procedure pursuant to the Commission's Rules of Procedure 201-204, 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 the person supports or opposes the Application. Persons who would like a hearing must specifically request a hearing in their written comments and explain why written comments alone are insufficient. Persons interested in filing written comments must do so by February 21, 2024. 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 http://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. NOTICE OF MODIFIED PROCEDURE ORDER NO. 36053 1 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, 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 J. Meyer, Esq. Idaho Public Utilities Commission Vice President and Chief Counsel for P.O. Box 83720 Regulatory & Governmental Affairs Boise, ID 83720-0074 1411 E. Mission Ave, MSC 13 secretgagpuc.idaho.gov Spokane, WA 99220-3727 david.meyer(d),avistacorp.com Street Address for Express Mail: Patrick Ehrbar 11331 W. Chinden Blvd. Director of Regulatory Affairs Building 8, Suite 201-A 1411 E. Mission Ave, MSC 27 Boise, ID 83714 Spokane, WA 99220-3727 Patrick.ehrbargavi stacorp.com docketskavistacorp.com YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by March 6, 2024. 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 final 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. NOTICE OF MODIFIED PROCEDURE ORDER NO. 36053 2 ORDER IT IS HEREBY ORDERED that the Application be processed by Modified Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in filing written comments must do so by February 21, 2024. The Company must file any reply comments by March 6, 2024. 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. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 4th day of January 2024. ERIC ANDERSON, PRESIDENT �L ;�Ia� J R. HAMMOND JR., COMMISSIONER EDWARD LODGE, OMMISSIONER ATTEST: / D. Q i a Apid-kallhez Interim Commission Secretary IALega1\ELECTRIC\AW-E-23-16_DCFC\orders\AW E2316_Ntc_Mod_cb.docx NOTICE OF MODIFIED PROCEDURE ORDER NO. 36053 3 Office of the Secretary Service Date March 4,2024 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE JOINT PETITION ) CASE NO. AVU-E-24-03 OF AVISTA CORPORATION AND STIMSON ) LUMBER COMPANY FOR APPROVAL OF ) NOTICE OF PETITION AMENDMENT NO. 6 TO POWER ) PURCHASE AND SALE AGREEMENT ) NOTICE OF MODIFIED PROCEDURE ORDER NO. 36106 On February 6, 2024, Avista Corporation d/b/a Avista Utilities ("Avista") and Stimson Lumber Company ("Stimson") (collectively "the Parties") jointly petitioned the Idaho Public Utilities Commission ("Commission") requesting an order approving Amendment No. 6 to the Power Purchase Agreement("PPA")between the Parties ("Petition"). The Parties represented that Amendment No. 6 shall account for the anticipated periods when the facility' ("Facility") will be non-operational between January 1, 2024, and December 31, 2025. The Parties requested that the Commission issue an order accepting Amendment No. 6 with a retroactive effective date of February 2, 2024. NOTICE OF PETITION YOU ARE HEREBY NOTIFIED that the Parties represented that the original PPA was extended by Amendment No. 2 through December 31, 2023. YOU ARE FURTHER NOTIFIED that the Parties represented that the proposed Amendment Nos. 3 through 5 extended the term of the PPA through December 31, 2025, and updated the PPA to apply the current published avoided cost rates to all power purchases by Avista from January 1, 2024, through December 31, 2025. YOU ARE FURTHER NOTIFIED that the Parties stated that Stimson informed Avista that Stimson expects there to be extended periods when the Facility will not be operating during the updated contract term. As a default, Section 31 of the PPA requires Stimson to pay a use-of- facilities charge during the entire contract term. The proposed Amendment No. 6 would allow Stimson to not pay the use-of-facilities charge for any months that the Facility is not in use. 1 The Facility is a 6.5 megawatt, "thermal wood waste small power electric generation plant located in Plummer, Idaho."Petition at 2. NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36106 1 YOU ARE FURTHER NOTIFIED that the Petition is available for public inspection during regular business hours at the Commission's office. The Petition 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, 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 MODIFIED PROCEDURE YOU ARE HEREBY NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter, and that it will proceed under Modified Procedure pursuant to the Commission's Rules of Procedure 201-204, 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 Petition may file a written comment explaining why the person supports or opposes the Petition. Persons who would like a hearing must specifically request a hearing in their written comments and explain why written comments alone are insufficient. Persons interested in filing written comments must do so by April 8, 2024. 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 http://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 the 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 PETITION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36106 2 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 Avista: Commission: Commission Secretary Chris Drake Idaho Public Utilities Commission Michael G. Andrea P.O. Box 83720 Avista Corporation Boise, ID 83720-0074 1411 E. Mission Ave., MSC-7 secretgagpuc.idaho.gov Spokane, WA 99202 chri s.drakenavistacorp.com Street Address for Express Mail: michael.andreagavistacorp.com 11331 W. Chinden Blvd. For Stimson Lumber: Building 8, Suite 201-A Boise, ID 83714 Lisa Zentner Stimson Lumber Company 9400 SW Barnes Rd., Suite 530 Portland, OR 97225 Izentnerg stimsonlumber.com YOU ARE FURTHER NOTIFIED that the Parties must file any reply comments by April 15, 2024. 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 final 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 Parties' filing be processed by Modified Procedure. Persons wishing to file written comments must do so by April 8, 2024. The Parties must file any reply comments by April 15, 2024. 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 NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36106 3 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. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 4th day of March 2024. ERIC ANDERSON, PRESIDENT HN R. HAMMOND JR., COMMISSIONER G � EDWARD LO GE4OMMISSIONER ATTEST: 04 omc Barri -Sa z Commission Secretary I:\Lega7\ELECTRIC\AW-E-24-03_Stimson PPA\ordersWWE2403_Ntc_App_Mod_md.docx NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36106 4