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HomeMy WebLinkAbout20250915APPLICATION.pdf AVU-E-25-13 RECEIVED September 15, 2025 Avista Corp. IDAHO PUBLIC 1411 East Mission P.O. Box 3727 UTILITIES COMMISSION Spokane. Washington 99220-0500 Telephone 509-489-0500 Toll Free 800-727-9170 September 15, 2025 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A Boise, Idaho 83714 RE: Case No. AVU-E-25- Dear Commission Secretary: Attached for filing with the Idaho Public Utilities Commission is Avista Corporation's, doing business as Avista Utilities',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 David Meyer Vice President& Chief Counsel Regulatory& Government Affairs Avista Corporation 1411 East Mission, MSC-17 Spokane, WA 99202 Phone: (509)495-2564 Facsimile: (509) 777-5468 Email: David.Meyer@avistacorp.com Attorney for Avista Corporation BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA CORPORATION'S) CASE NO. AVU-E-25-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: David Meyer Shawn Bonfield VP & Chief 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 David.Me�(a)avistacorp.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 May 13, 2025, and is being used in the 2025 All-Source RFP. Table 1: Energy Load Forecast Year Energy (aMW) 2026 1,169 2027 1,178 2028 1,186 2029 1,202 2030 1,202 2031 1,203 2032 1,204 2033 1,214 2034 1,225 2035 1,237 2036 1,248 2037 1,266 2038 1,285 2039 1,301 2040 1,320 2041 1,345 2042 1,362 2043 1,386 2044 1,406 2045 1,424 s Order No.32697 page 23. 2 Page IV. NATURAL GAS PRICE FORECAST The Company's most recent natural gas Forward Price Curve was developed for the 2025 All-Source RFP 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 June 20, 2025. Please refer to Table 2 for the natural gas price forecast for Henry Hub and Stanfield. Table 2: Natural Gas Price Forecast Henry Year Hub Stanfield 2026 4.16 3.18 2027 3.98 3.18 2028 3.92 3.36 2029 3.91 3.51 2030 4.12 3.41 2031 4.37 3.54 2032 4.74 3.96 2033 5.05 4.28 2034 5.33 4.54 2035 5.66 4.73 2036 5.89 4.73 2037 6.09 4.88 2038 6.37 4.96 2039 6.56 5.05 2040 6.80 5.03 2041 7.05 5.18 2042 7.30 5.39 2043 7.63 5.70 2044 7.93 5.93 2045 8.23 6.07 V. CONTRACT ADDITIONS AND TERMINATIONS Since the 2024 filing, Avista has not signed any new PPAs or new long-term PURPA contracts. Two PURPA contracts for Meyers Falls and Sheep Creek are in their 3 1 P a g e final year and are being negotiated.Details concerning the dates and sizes of these contracts are included in the confidential attachment. 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, natural gas forecast, and contract information to be used in the IRP method with an effective date of January 1, 2026. DATED at Spokane, Washington, this 15°i day of September 2025. AVISTA CORPORATION /s/David Meyer David Meyer VP & Chief Counsel for Regulatory& Governmental Affairs 4 1 P a g e