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HomeMy WebLinkAbout20260709APPLICATION.pdf 11 RECEIVED July 09, 2026 Avista Corp. IDAHO PUBLIC 1411 East Mission Ave., P.O. Box 3727 UTIL iTiFS COMMISGinN Spokane, WA 99220-0500 AVU-E-26-10 Telephone: 509-489-0500 Toll Free: 800-227-9187 July 9, 2025 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd Building 8, Suite 201-A Boise, ID 83714 Re: Case No. AVU-E-26- - Application of Avista Corporation for a Certificate of Public Convenience and Necessity for Carlin Bay Transmission Line Commission Secretary: Avista Corporation, doing business as Avista Utilities (Avista or the Company), hereby submits for filing with the Commission an application for a Certificate of Public Convenience and Necessity for the development of the Carlin Bay transmission line. If you have any questions regarding this filing, please contact me at(509)495-2782 or shawn.bonfield(&,avistacorp.com. Sincerely, l al s" FacZ�zc& Shawn Bonfield Sr. Manager of Regulatory Policy& Strategy I ANNIGLOGOVAC 2 ISB #13010 3 COUNSEL, LEGAL DEPARTMENT 4 AVISTA CORPORATION 5 P.O. BOX 3727, MSC 33 6 1411 EAST MISSION AVENUE 7 SPOKANE, WASHINGTON 99220-3727 8 TELEPHONE: (509) 495-7341 9 EMAIL: ANNI.GLOGOVAC@AVISTACORP.COM 10 11 12 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 13 14 IN THE MATTER OF THE APPLICATION ) CASE NO. AVU-E-26- 15 OF AVISTA CORPORATION FOR ) 16 A CERTIFICATE OF PUBLIC CONVENIENCE ) APPLICATION FOR A 17 AND NECESSITY TO CONSTRUCT THE ) CERTIFICATE OF PUBLIC 18 CARLIN BAY TRANSMISSION LINE ) CONVENIENCE AND 19 ) NECESSITY 20 21 I. INTRODUCTION 22 Avista Corporation,doing business as Avista Utilities(hereinafter Avista or Company), 23 at 1411 East Mission Avenue, Spokane, Washington, pursuant to Section 61-524 Idaho Code 24 and Rule of Procedure(RP) 52 of the Idaho Public Utilities Commission,respectfully requests 25 that the Commission issue an order granting the Company a Certificate of Public Convenience 26 and Necessity (CPCN) to construct a new overhead 115 kilovolt (kV) transmission line and 27 related facilities to provide service by connecting the proposed O'Gara Substation to the Carlin 28 Bay Substation. 29 The Company requests, pursuant to Idaho Code §§ 61-508 and 61-526, that the 30 Commission find it to be in the public convenience and necessity that Avista construct a new 31 115 kV transmission line as an additional source of energy for the east side of Lake Coeur 32 d'Alene. The east side of Lake Coeur d'Alene is currently supplied by two feeder lines that 33 have experienced sustained outage line events,which Avista forecasts to increase in frequency. Application of Avista Corporation Page 1 Case Nos. AVU-E-26- I The proposed facilities, as described herein, are necessary and required in order to continue to 2 provide: 1) reliable and adequate electricity to Avista's customers on the east side of Lake 3 Coeur d'Alene into the future, 2) increased flexibility to deliver energy and reserve capacity, 4 3) a back-up resource to shift electrical loads when there is an outage or equipment failure, 5 which will help restore power quickly, and 4) the capacity to respond to future grown and 6 energy demands. 7 Avista is a utility that provides service to approximately 419,000 electric customers 8 and 381,000 natural gas customers in a 26,000 square-mile area in northern Idaho, eastern 9 Washington, and Oregon. The largest community served by Avista is Spokane, Washington, 10 which is the location of its corporate headquarters. Communications in reference to this 11 Application should be addressed to: 12 Anni Glogovac Patrick D. Ehrbar 13 Counsel, Legal Department Director of Regulatory Affairs 14 Avista Corporation Avista Corporation 15 P.O. Box 3727 P.O. Box 3727 16 1411 E. Mission Avenue, MSC-33 1411 E. Mission Avenue, MSC-27 17 Spokane, WA 99220-3727 Spokane, WA 99220-3727 18 Phone: (509)495-7341 Phone: (509)495-8620 19 anni.glogovac(&avistacorp.com patrick.ehrbar(a)avistacorp.com 20 21 22 Avista Dockets (Electronic Only) -AvistaDocketsgavistacom.com 23 24 II. BACKGROUND 25 The population and load demand growth on the east side of Lake Coeur d'Alene has 26 resulted in rising concerns for Avista to reliably support new customers at the far-reaching end 27 of two distribution feeders. Currently, two distribution feeders serve the east side of Lake 28 Coeur d'Alene, one originating from the Blue Creek Substation and the other originates from 29 the existing O'Gara Substation. See Illustration No. 1 below for a map of the existing feeders Application of Avista Corporation Page 2 Case Nos. AVU-E-26- �i I\ • 4 1 BLU F � Wolf e Beaches WL CBY L r d bay r . J_ ,a . �► 1 !�_ _ c.;�E" NI Sp► ' ngsto� Ha ir �� Y. r• ' v F �l� e tL •r _. Conkling Park f• O.G, r -IDS ,��•I--� -� ��. ,•�.� J . . Chatcolet O • SiIvertip La Hawley aadinq `'. I The associated feeders cannot support additional growth in the area and have reached their 2 capacity. A reliable protection system requires a balance of dependability and security. 3 Dependability dictates that a protective device correctly identifies and operates in the event of 4 a faulted condition. Security ensures a protective device only operates within its defined zone 5 of protection while maintaining coordination with other protective devices located in its 6 immediate proximity.Distribution of electrical load across the electric grid and the topography 7 of each device's zone of protection have a major impact on a protective system's ability to 8 reliably operate. The existing protection system and associated protective devices in the area 9 of the proposed Carlin Bay and O'Gara substations currently meet the reliability requirements 10 outlined above;however,due to recent significant load growth,the margin for proper operation 11 is diminishing. 12 The consequence of protection coordination issues is customers will experience 13 outages due to fault detection devices, fuses and reclosers, tripping under heavy load 14 conditions. Equipment capacity issues have emerged, including overloaded feeder cable, 15 voltage drop, voltage imbalance, reduced fault current, overloaded fusing and feeder 16 protection, and cold load pickup, all of which contribute to system protection challenges (see 17 Appendix A). Construction of the Carlin Bay and O'Gara substations helps to mitigate the risk 18 of mis-operation and ensure reliable operation of the protection system by beneficially 19 modifying zones of protection and redistributing load.The addition of the proposed substations 20 has a significantly positive impact on both the dependability and security of the protection 21 system in the area. If the improvements are not made to the system,Avista will seek to prevent 22 overloading equipment by disrupting service to customers to reduce loading or risk the 23 equipment becoming damaged resulting in a longer outage duration to customers. 24 A new overhead 115 kV transmission line, which is 13 miles in length, needs to be Application of Avista Corporation Page 4 Case Nos. AVU-E-26- I constructed to serve the new Carlin Bay Substation. See Illustration No. 2 below for a map of 2 where the proposed new line will be. 3 Illustration No. 2 -Map of New Transmission Line 4 5 Carlin Bay Substation 7 Carlin - O'Gara Transmission,--l-ine 8 9 on Blue 10Lake 4 Ande on 1 1 ! 5 � 1"f Swan Lake Y: Fg 12 4 J. 13 14 15 r ' 16 17 t. :;�� • � a 18 19 This will alleviate system protection issues caused by the growing load at the end of the Blue 20 Creek and O'Gara feeders (See Appendix A). 21 22 III. COMMUNITY OUTREACH AND PUBLIC PARTICIPATION 23 Avista has conducted extensive outreach to the community, affected landowners, and 24 local jurisdictions throughout the development of the project. Once a 90%line siting route was Application of Avista Corporation Page 5 Case Nos. AVU-E-26- I identified,Avista and its consultant,Black&Veatch,invited the community to an Open House 2 on September 27, 2023, at Harrison Elementary School. At this event, Avista presented the 3 proposed routing, distributed fact sheets and informational materials, and held a question and 4 answer and public comment session to address community questions (See Appendix Q. All 5 comments received were documented in a feedback log, allowing Avista to follow up directly 6 with property owners after the event. A sign-in sheet was also provided to collect contact 7 information for continued engagement and discussion of any additional concerns. 8 To supplement in person outreach, Avista also developed a public facing project 9 website early in the process.' The site included detailed maps, project background, schedule 10 information, and frequently asked questions (FAQs). It also featured a project specific email 11 address,giving community members a direct channel to contact the project team with questions 12 or concerns at any time.This resource remained active throughout the routing process to ensure 13 transparency and consistent communication. 14 Following the open house, Avista worked one on one with individual property owners 15 directly impacted by the proposed route. While Avista and Black & Veatch identified which 16 parcels the line would intersect,we collaborated closely with landowners to determine the least 17 impactful alignment across each property, making adjustments wherever feasible to 18 incorporate their feedback. 19 Avista has also coordinated closely with local jurisdictions and state/federal agencies, 20 including Kootenai County, Idaho Department of Lands, Idaho Fish and Game, U.S. Fish and 21 Wildlife Service, and the Bureau of Land Management. These agencies have been engaged 22 throughout the process, and we have secured the necessary permits or easements from the 'https://www.myavista.com/about-us/construction-services/current-major-electrical-projects/carlin-bU-ogara- transmission-line Application of Avista Corporation Page 6 Case Nos. AVU-E-26- I participating state and federal agencies. Coordination with Kootenai County is ongoing, and 2 they continue to participate in discussions related to the project. 3 4 IV. CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY 5 Avista must construct additional facilities on the east side of Lake Coeur d'Alene, so it 6 can continue meeting its obligation to serve both new and existing customers. This proposed 7 new transmission line is a cost-effective way to meet this obligation. Avista is facing rising 8 concerns about reliably supporting new and existing customers on the east side of Lake Coeur 9 d'Alene. Population and load growth continue to expand. This area is currently only served by 10 two distribution feeders one originating from the Blue Creek Substation and the other 11 originates from the existing O'Gara Substation. These feeders are at capacity and unable to 12 serve new growth. 13 Avista is aware of many developments in the area that are under various stages of 14 construction or planned for in the near future. Based on current performance of the existing 15 feeders in the area, some customers are waiting for Avista to mitigate the performance issues 16 prior to beginning constructions on their developments. Table No. 1 below demonstrates the 17 expected feeder and transformer loading over the next 10 years. 18 Table No. 1. Potential Developments on the East Side of Lake Coeur d'Alene 19 Feeder 20 Powderhorn Ranch [25%conf]up to 1300 residences 2023 OGA611 Patriot Homes [100%conf]—40 units 2023 BLU321 21 Fish Inn Campground 1100% conf]Campground w/cabins& 2023 BLU321 RV spots Burma Rd [100%conf]old mill needs cleanup 2024 BLU321 22 Gotham Bay [100%conf]—50 premium lots 2024 BLU321 [100%conf]3000 sq ft houses- 23 Stonegate Development Harrison has building moratorium b/c of 2024 BLU321 sewer issues-3 h PM for water 24 Carlin Bay Lodge Replacement [75%conq 2024 OGA611 Application of Avista Corporation Page 7 Case Nos. AVU-E-26- I Avista has established performance criteria in the planning horizon to mitigate 2 equipment loaded at-80% of its applicable facility rating. When equipment approaches 100% 3 of its facility ratings in real time operations, customers' power will be turned off to prevent 4 damaging equipment. In the East Lake Coeur d'Alene area, customer outages can have long 5 restoration times due to cold load pickup2 causing fuses and/or reclosers to trip. 6 3.2.4 Mitigation Plan Results Implementation of the East Coeur d'Alene Lake System Reinforcement project results in 7 significant improvements to system performance. The results of a multi-year analysis are shown in Table 10. The proposed Carlin Bay Station, energize year 2028. will have 8 a portion of load transferred from feeders BLU321 and OGA611 to mitigate existing capacity constraints_ The proposed O'Gara Station rebuild, energize year 2028 after 9 Carlin Bay Station, will have load transferred from the existing O'Gara Station and mitigates the existing capacity constraints. 10 To mitigate the high growth on BLU321 feeder, CBY641 feeder can pick up a portion of load at Gozzer Ranch during peak winter conditions if necessary to meet system performance criteria. This capacity for the CBY641 feeder to pick up a portion of Gozzer 11 Ranch load increases as more sections of trunk conductor are upgraded to#556 AAC. Year Yew Year Year Year Year Yew Year yew Yew Year 12 t Ik BLU XFMR 01 50.54 54.07 58.15 62.49 5621 00.3 64.71 6953 7474 8022 8633 13 BLU321 70.55 7531 81.01 99.24 7335 79 05 85 25 92.16 99.34 BLU322 24.51 26.08 27.91 28.4 30.30 32.52 34.81 37.25 39.86 42.66 45.91 14 ocAXFMR X1 _78.33 8191 _85.40 -89.27 0 0 0_ 0_ 0 0 0 OGA XFMR - 15 s 1 NEW 0 D 0 0 25 03 26 12 27.25 21146 297 31 oil 324 OGA611 84.23 8805 9266 0 0 0 0 0 0 0 16 OGA611 2_ 0 0 0 0 38 39.67 41.56 4154 45-61 47.88 4999 OGA812 0 0 0 0 00 0_. 17 CKaA812 2 0 0 0 0 3023 _ 31 57 32.91 3432 3579 3732 3892 CBY XFMR 18 M1 0 0 0 0 1317 13.9 14.89_ 16.52- _ 16.42 17.32 18.37 CBY841 0 0 0 0 1691 17.97 19.11 2039 2175 23.13 24.74 CBY542 0 0 0 0 1496 1565 1634 171 1709 1855 1951 19 Table 10: Mitigation Case Winter% Loading 20 The impact of not performing this work is that Avista would not be able to reliably 21 serve an area that is experiencing significant growth. Customers will experience outages during 22 peak winter conditions when building electric heating demand is high (See Appendix A). The z Cold load pickup is the temporary surge in electric demand that occurs when power is restored to customers after an outage. Application of Avista Corporation Page 8 Case Nos. AVU-E-26- I outages may occur due to overloaded equipment tripping or failing, or Avista intentionally 2 reducing load to prevent equipment damage. The outages could impact several hundred 3 customers for multiple hours and may occur daily until peak winter loading weather conditions 4 pass. Extended outages can last multiple days and be catastrophic, not only from economic 5 loss, but customers may also face additional damage that may be caused by freezing water 6 pipes. Further customer growth in the area will increase the number of impacted customers. 7 The energization of the Carlin Bay Substation is dependent on the construction of this 115kV 8 transmission line. 9 10 V. ESTIMATED COST AND PRUDENCE OF PROJECT 11 Avista's estimated construction costs for this new 115kV transmission line is 12 approximately$30 million.Avista began exploring options for this project in 2023.Avista and 13 its consultant, Black & Veatch, conducted and completed line siting in 2023. Easement 14 acquisition began in 2025 and is ongoing. Once easements with landowners and permits with 15 agencies have been obtained and finalized, line design completion will take place. This phase 16 is anticipated to be complete in 2026. Avista anticipates construction will begin in 2027 and 17 will take approximately two years to complete. Energization of this transmission line is 18 expected to take place in late 2028. 19 20 VI. CONCLUSION 21 Approval by this Commission for an order granting the Company a CPCN to construct 22 the Carlin Bay transmission line is in the public interest and necessary to maintain adequate 23 electric service to Avista's Idaho customers on the east side of Lake Coeur d'Alene. Without 24 this new line, customers may face reliability and resource adequacy issues in the future. Application of Avista Corporation Page 9 Case Nos. AVU-E-26- I Constructing this new line is the most economic solution to address the system needs in the 2 area in question. 3 Avista respectfully requests that this Application be processed under Modified 4 Procedure, through the use of written comments. RP 201, et seq. 5 6 VII. REOUEST FOR RELIEF 7 WHEREFORE, Avista respectfully requests that the Commission issue an Order on or 8 before December 1, 2026, granting the Company a CPCN to construct the Carlin Bay 9 transmission line and associated facilities. 10 11 DATED at Spokane, Washington, this 7t'day of July 2026. 12 AVISTA CORPORATION 13 14 By 15 Patrick Ehrbar 16 Director of Regulatory Affairs 17 Avista Corporation Application of Avista Corporation Page 10 Case Nos. AVU-E-26- I APPENDICES 2 Appendix A—East Coeur d'Alene Lake System Reinforcement System Impact Study (VO) 3 4 Appendix B — East Coeur d'Alene Lake System Reinforcement Business Case Justification 5 Narrative (2025 Signed) 6 7 Appendix C—Public Meeting Materials Application of Avista Corporation Page 11 Case Nos. AVU-E-26-