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HomeMy WebLinkAbout20251022Final_Order_No_36812.pdf Office of the Secretary Service Date October 22,2025 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA ) CASE NO. AVU-G-25-03 CORPORATION'S 2025 NATURAL GAS ) INTEGRATED RESOURCE PLAN ) ORDER NO. 36812 On March 31, 2025, Avista Corporation, d/b/a Avista Utilities ("Company") filed its 2025 Natural Gas Integrated Resource Plan ("IRP") with the Idaho Public Utilities Commission ("Commission"). The Company files a natural gas IRP every two years to describe the Company's plans to meet its customers' future natural gas needs. The IRP must discuss the subjects required by Commission Order Nos. 25342, 27024, and 27098, and Section 303(b)(3) of the Public Utility Regulatory Policies Act("PURPA"), 15 USC § 3202. On April 23, 2025, the Commission issued a Notice of Filing and Notice of Intervention Deadline. Order No. 36567. On June 11, 2025, the Commission issued a Notice of Modified Procedure, establishing deadlines for written comments. Order No. 36637. Commission Staff ("Staff') filed written comments to which the Company filed reply comments. Based on our review of the record, the Commission now issues this Final Order acknowledging the Company's 2025 IRP. THE 2025 IRP The Company's 2025 IRP set forth eleven sections: (1) Introduction and Planning Environment; (2)Preferred Resource Strategy; (3)Demand Forecast; (4)Demand Side Resources; (5) Gas Markets and Current Resources; (6) Supply-Side Resource Options; (7) Policy Considerations; (8) Alternate Scenarios; (9) Customer Equity and Metrics; (10) Distribution Planning; and(11)Action Plan. 2025 IRP at 10-11. The Company indicated that the 2025 IRP assessed, identified, and outlined plans for acquiring a mix of existing and prospective resources based on anticipated costs and associated risks, in order to meet state objectives and to satisfy both average daily and peak-day demand requirements over the next 20 years. Id. at 26. The Company further stated that the development of the 2025 IRP incorporated input from its Technical Advisory Committee ("TAC"), which was ORDER NO. 36812 1 comprised of representatives from Staff,peer utilities,customers, and other stakeholders.Id. at 27. The Company represented that the TAC provided feedback on specific planning issues,monitored the progress of planning activities, and contributed to the evaluation of IRP development outcomes. Id. The Company asserted that the IRP process included comprehensive analysis of risks and resource alternatives to ensure the provision of safe, reliable energy delivery services, while pursuing long-term solutions that offer the best balance of cost and risk.Id. at 29. STAFF COMMENTS Staff reviewed the Company's 2025 IRP and examined the Company's new resource modeling software, natural gas demand forecasts, supply-side resources, demand side resources, resource and distribution planning, and action plans. Staff Comments at 2. In its evaluation of the Company's process for validating modeling results with the new software, CROME, Staff believed that the software was suitable for use. Id. However, Staff advised that the Company should continue to validate the software as it moves forward with its ongoing implementation. Id. Staff believed that the Company's demand forecast was grounded in reasonable assumptions based on up-to-date information and included various demand projections to assess the sensitivity of future resource investments. Id. Staff discerned that the Company's approach to procuring and storing natural gas was effective in ensuring reliable supply at cost- efficient prices to meet the needs of its customers.Id. at 4. Staff noted that the Company's projected 2045 Achievable Economic Utility Cost Test Potential cumulative saving was reduced by 47% from the Company's 2023 IRP and committed to continuing to work with the Company regarding its natural gas Energy Efficiency programs. Id. at 5-6. Staff recommended the Company continue to include regular evaluations of the need for enhanced projects with the most up-to-date information available to ensure adequate capacity to meet demand.Id. at 8. Staff believed that the scenarios, forecasts, and planning activities presented in the 2025 IRP were reasonable and recommended the Commission acknowledge the Company's IRP as timely filed and in compliance with the requirements specified by Commission Order Nos. 25342, 27024, and 27098, and Section 303(b)(3) of PURPA, 15 USC § 3202.Id. at 9. ORDER NO. 36812 2 COMPANY REPLY The Company committed to continuing to work with Staff and other interested parties on the development of the 2027 Natural Gas IRP and continued collaboration on the Company's resource planning efforts. Company Reply Comments at 1. COMMISSION FINDINGS AND DECISION The Company is a public utility as defined in Idaho Code §§ 61-116, -117, and -129. The Commission has jurisdiction over the Company and the issues in this case under Title 61 of the Idaho Code, including Idaho Code § 61-501. Having reviewed the record, the Commission finds that the Company's 2025 IRP satisfies the requirements in the Commission's prior orders, and the Commission acknowledges the 2025 IRP. In acknowledging the 2025 IRP, 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 2025 IRP, or any resource acquisitions referenced in it, endorse any particular element in it, opine on the Company's prudence in selecting the 2025 IRP's preferred resource 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 2025 IRP, and the validation of predicted performance under the 2025 IRP, is a general rate case or other proceeding where the issue is noticed. ORDER IT IS HEREBY ORDERED that the Company's 2025 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 of 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. See Idaho Code § 61-626. ORDER NO. 36812 3 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 22°d day of October 2025. G Gtiv EDWARD LODG , PR ENT HN R. HAMMOND JR., COMMISSIONER DAYN HARDIE, COMMISSIONER ATTEST: 9UJJ;A�-—%. La a Calderon Robles Interim Commission Secretary I:\Legal\GAS\A WG2503_IRP\orders\A WG2503_final_em.docx ORDER NO. 36812 4