20160906AVU to Staff 116.doc

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/19/2016
CASE NO.: AVU-E-16-03 WITNESS: William Johnson
REQUESTER: IPUC RESPONDER: William Johnson
TYPE: Production Request DEPARTMENT: Power Supply
REQUEST NO.: Staff - 116 TELEPHONE: [phone]

REQUEST:

Please explain all obligations that Idaho jurisdictional ratepayers have in supporting the contractual commitment to the Palouse Wind project.

RESPONSE:

Palouse Wind is a system resource that provides energy to all Avista customers and like all system resources the net expense is shared by both the Washington and Idaho jurisdictional ratepayers. The Company’s 2007 and 2009 Integrated Resource Plans (IRPs) preferred resource acquisition strategies included up to 300 MW and 150 MW of wind resources respectively. These IRPs were acknowledged by both the Washington and Idaho Commissions. Palouse Wind was secured through a competitive Request for Proposal (RFP) that was overseen by the staff from both the Washington and Idaho Commission. The price of Palouse Wind was less than the Idaho avoided cost in place at the time of signing the contract.

Page 1 of 1