20200803Staff to ICL 1-3.pdf

EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
IDAI]O PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720.0074
(208) 334-03 l4
IDAHO BAR NO. I0446
ftqsEtvE0
?82[ AUG -3 PH 2: 35
<-i-:,J . l:::-ar !n
., ; . i l1' :lgti$i$€'t0sl
Streel Address lbr Express Mail:
I I331 W CHINDEN BVLD, BLDG 8, SUITE 201.A
BOISE, ID 837I4
Aflomey for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA'S 2O2O
ELECTRIC INTEGRATED RESOURCE PLAN CASE NO. AVU-E-19-OI
STAFF'S RESPONSE TO
IDAHO CONSERVATION
LEAGUE'S FIRST
PRODUCTION REQUEST
The Staffofthe ldaho Public ljtilities Comrnission, by and through its attomey ofrecord,
Edward Jewell, Deputy Attomey General, responds as follows to Idaho Conservation League's
First Production Request to Commission Stat'f.
REQUEST NO. l: On July 9,2020, the Idaho Public Utilities Commission Staffhosted
a puhlic workshop covering Avista's 20lg Integrated Resource Plan. Duringthe Staff
presentation, ICL leamed of"additional economic analysis," requested olAvista by the PUC
Stafi regarding the economically optimal date for Avista to exit the Company's share ofthe
Colstrip coal plant.
A. Please provide this analysis and all supporling workpapcrs or other documentation.
STAFF RESPONSE NO. l: Economic analysis of Colstrip was provided in response to
STAFF'S PRODUCTION RESPONSE
TO IDAHO CONSERVATION LEACUE
)
)
)
)
)
)
)
)
AUGUST 3, 2O2O
a Staffaudit request dated January 30,2020. Avista responses nol marked Confidential are
attached hereto as Attachment I .
This response is sponsored by Rachelle F'amsworth, Utilities Analyst, PUC, Technical Analysis
Division, Idaho Public Utilities Commission Staff.
STAFF'S PRODUCTION RESPONSE
TO IDAHO CONSERVATION LEAGI]E 2 AUGUST 3.2020
REQUEST NO,2: Please provide PUC StaffProduction Requests to Avista, and any
answers received to date, numbers I through 9 and any further requests beginning with number
39.
STAFF RESPONSE NO.2: Staff Production Request questions 1-9, dated February 27'
2019, and Avista responses not marked Confidential, are attached hereto as Atlachment 2. There
have been no further requests beyond number 38.
This response is sponsored by Rachelle Famsworth, Utilities Analyst, PUC, Technical Analysis
Division, Idaho Public Utilities Commission S1aff.
STAFF'S PRODUCTION RESPONSE
TO IDAHO CONSERVATION LEAGUE J AUGUST 3, 2O2O
REQUEST NO. 3: Please provide any additional analysis or supporting materials the
PUC Staff have received from Avista pursuant to either Production Requests, pursuant to IDAPA
3 Lol .01 .225 or Audits, conducted pursuant to IDAPA 3 I .01 .01 .227 , rcgarding Avista's 2019
Integrated Resource Plan.
STAFF RESPONSE NO, 3: No additionat Avista analysis or supporting materials have
been received by Staff, regarding Avista's 201 9 Integrated Resource Plan.
This response is sponsored by Rachelle Famsworth, Utilities Analyst, PUC, Technical Analysis
Division, Idaho Public Utilities Commission Staff.
Dated at Boise, Idaho, this 1.)day of August 2020.
Edward J
Deputy Ceneral
iiumis.:prodrcq/6vucl9. I cjrf rc$onsc to ICL prod rq
STAFF'S PRODUCTION RESPONSE
TO IDAHO CONSERVATION LEAGUE 4 AUGUST 3,2020
AVISTA CORPORATION
RtrSPONSE TO REQUEST FOR INF'ORMATION
.IURISI)I(]TION:
CASE NO:
REQTJESTER:
I'YPE:
REQUEST NO.:
IDAHO
Avu-E-t9-01
Staff
IRP Audil Request
Staff-001
DA'[E PREPARED: 02110t2020
WITNESS: NiA
RESPONDER: Steve Wenke
DIIPARI-N4ENT: GPSS
TELEPHONE: [phone]
REQUEST:
Please provide a schedule that shows the tuture planned capital expenditures for thc Colstrip
Power Plant Units 3 & 4. For each expense. please provide the total amount of the expense'
Avista's share of the expense. and a description of each expense,
RESPONSET
Please see Avista's response Stafl-AR-001C and Staff-AR,OOl C Confidential Attachment A'
*'hich contains TRADE SECRET, PROPRIETARY or CONFIDENTIAL information and
exempl lrom public view and is separately filed under IDAPA 3l.01.01, Rule 067 and 233. and
Section 9-340D, ldaho Code.
The Owner's group for Colslrip has only approved a capital budgct for 2020. The approved
budget is attached as an Excel file in Staf{-,4R-001C Confidential Attachment A: 2020 U31
L'apital - 11.6.19 List. The costs include the entire plant costs. Avista's share oI these is
proportional to its 15% ou'nership share.
Avista's portion of the costs can bc lbund in the Excel file on the tab labeled:2020 u31 iral -
I I .6. 19 List - Avi.sla A
I Source: ( o/strir,l,tnits J-1 B Lfuet 8.
column rvas added to the original spread sheet that shows Avista's l5%
ponion ofthat approved budget. The 2020 capital budget docs not include any investment rvhere
the prinrary driver is to extend the uselul lil-e olthe plants beyond 2025.
While the owners did not approve a budget beyond 2020, there rvas a prcvious submittal sho*'ing a
longer term (10 year) projection of capital expendittrrcs, 'fhis submittal is not approved Thc
projects that rvere either eliminated or adjusted as pad of the final approved 2020 budget are
highlighted in yello,,v. 'l-his prqection is provided in the attached Excel file on tab: Colstrip Units
30.20 t
Finally, dcscriptions of each ol'the capital itenrs (including those thal were removed or revised tbr
2020 approval) is included in the lile under the tab: 2020 []31 llurdlc Packoge. This file contains
some details of work that is listed in the in the a'oLytrip Llnits 3-1 Budset 8.30.2019 - Cao Onlv file.
Restating, this file is not the approved 2020 budget but is thc basis for that decision
?/l 21,/9 ]'his tab providcs thc carly business plan submitted by the plant lor
consideration and approval bytheo*ncrs. Thisplan includeda I 0 year projection of a capiral plan. Thisplanrvasnot
approved and subsequenl u'ork resulted in the approved budget for 20f0 shown in fil€2020 Lj3lOunital- 11.6
AT"IACI]MENI'NO. I
Case No. AVLJ-E-19-01
Response to Production Requcst of ICL
08i03/20
No funher projections on fulure capital expenditurcs pasl2020 rvere discussed
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICI'ION:
CASENO:
REQI-IESTER:
TYPE,:
REQUEST NO.:
IDAHO
AVU-E-19-01
Staff
IRP Audit Request
Staff-002
DATE PREPARED: 0212012020WITNESS: N/A
RESPONDER: James Gall
DEPARTMENT: EnergyResources
TELEPHONE: [phone]
REQUEST:
Please provide a schedule that shows expected variable O&M and fuel expenditures annually
based on projected changes to dispatch for Colstrip Power Plant Units 3 &4-
RESPONSE:
Please see Avista's response 002C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt fiom public view and is separately filed under
IDAPA 3l .01 .01 , Rule 067 and 233, and Section 9-340D. Idaho Code.
The data used in the 2020 IRP is included in the following confidential attachment:
Slaff-AR-0O2C Confidential Attachment A. The data is for Avista's share of Units 3 & 4
combined.
ATTACHMENI' NO. I
Case No, AVL!E- t9-0 t
Response lo produclion Requcst of ICL08/03/t0
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDIC'I'ION:
CASE NO:
REQUESl'ER:
TYPE:
REQUEST NO.:
IDAHO
AVU.E.I9-OI
Stafl'
IRP Audit Request
staff-003
DAI'E PREPARED
WITNESS:
RESPONDER:
DEPARTMENl':,I'F]I,I.]PH()NE:
02110t2020
N/A
James Gall
Energy Resources
(509) 495-2t89
REQUEST:
Please describe operational and financial risks the Company is awarc of concerning the Juture
viability of Colstrip lJnits 3 & 4 andlor its potential source ofcoal,
RESPONSE:
Therc are three primary drivers irnpacting operational and financial risks associaled rvith the future
viability ofthe Company's ownership share of Colstrip Units 3 & 4. These includethe Ownership
and Operaling Agreement, Ihe coal contract. and the Washington Clean Energy Transformalion
Act (CETA).
The ability ro shut down Colstr.ip Units 3 and 4 is govemed by the Ownership and Operation
Agreement between and amongst the ou,ners ofthose units. No decisions have been made by the
ou,nership group regarding u'hether Colslrip Unit 3 and/or Unit 4 will continue to operate after
flecember 31, 2025.
Avista obtains its share oflhe coal liom Colstrip Units 3 and 4 pursuant ttr a coal supply agreement
with Westrrioreland Rosebud Mining, LI-C. The coal supply agreemenl, by its tenns expires on
December 3 I . 2025, ho[,ever, the agreement can be extended up to Decembel 3 I . 2029. Ifthe coal
supply agreement is extended beyond December 31, 2025. the pa(ies rvill need to neSoliate a new
price lbr coal tbr the extended term.
Section -3 of the Washington CFi'l'A provides:
"On or belbre I)ecenrber 31. 2075. each electric ulility must elinrinate coal-fired
resources lion, its allocation of electricity."l
That is. allcr December 31,2025, thc costs and henelits associated u,ith coal-fired resources
(except lor decornrnissioning and remediation costs), including costs and benefits associated *ith
Avisra's share of Colstrip tJnits I and 4, cannol be included in Avista's washington retail
electricity rates-2 Coal-tired resources must be t'ully depreciated b1' December 31, 2025.3
I 'Allocation ofelectriciry" nteans' for rhe purposes of setlillg electricib' ralEs' the costs and btncfils associated with
the resources us€d to provide elcctricit; tr) an clectric utility's retail electricity custotners that are localed in this stale
: See CIean Energr- Transformation Acr at Section 2 (defining "electric utility"); Clea$ Energy Transforlnation Act at
Section J. ATl ACliMllNl'NO. I
1 Clean Ener-qy Trat)sformat ior Act al Scction 3. Case No. A VLr-E- I 9-0 |
Response to Production Requcst of ICL
08i03/20
It is difllcuit to speculate on all potential scenarios associated with the fulure of Colstrip Units 3 &
4 operation; however, in general. there are three likely scenarios for these units after Decernber 3l ,
2025:. one or rlore ol'the units will continue to operate with the same ownership;. one or more ofthe units will continue to operate, but the ownership in the units will
charrget and. the units will be shut down.
Ifone or more ofthe units continues to operate after December 3 I , 2025, and Avista is an owner ol'
the operating unit or units, there will be certain items that need to be addressed. First, Avista will
need to evaluate its contractual obligations under the existing orvnership and operation agreement.
Second. if Avista is required by contract to provide its share of the coal to operate the unit(s),
Avista will need to either extend its existing coal supply agrccmcnt, or make some other
arrangement to obtain its share ofthe coal. Irinally, Avista wilj need to determine how it is going to
compiy with the requirenrents of any applicable 1aws. including the Washington CETA.
ATTACIIMENT NO. 1
Case No. AVU-E- l9-01
Response to Production Request of ICL
08i03t20
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JI.JRISDICTION:
CASE NO:
REQUESTER;
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-01
Staff
IRP Audit Request
Staff-004
DAI'E PREPAREI)
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
0?/10t2020
N/A
James Gall
Energy Resources
(s09) 495-2189
REQUES'I':
Please describe potential impacts to Idaho ratepaycrs annually liom continued opcralion of
Colstrip Units 3 & 4 past 2025.
RESPONSE:
Please see Avisra's response 004C. which conlains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL infbrmation antl exempt liorn public view and is separately filed under
IDAPA 3 L0l .01 . Rule 067 and 233, and Section 9-340D. Idaho Code.
The artached confidential file Staff-AR-O04C Contidential Attachment A includes the total
revenue requirement for each year between 2021 and 2045, Ibr lhe Prefeled Resource Strategy
(portfolio #l) and portlblio #8 where Colstrip is extended to 2035. T'his comparison is the chalge
in cost between continual operalion and shutting the units down in 2025. Avista models utility
costs as a systent and docs not separate costs in its lRP. Although fbr purposes ofthis audit rcquest,
a 34.61V" idaho share (2019 PT ratio) is used to illustrate the cosl impacts to Idaho customers. In
its next IRP, Avista intends to model each states financial obligations separately, howcver Avisra
acknorvledgcs thal a proccss rvill need to be set in place in order to equitably distribution costs
between states.
A1'1'ACtIMENT NO, I
Case No, AVU-E- l9-01
Response to Production llequest of ICl,
08/03i 20
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JTJRISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-0r
Staff
IRP Audit Request
Staff-005
DATE PREPARED:
WITNESS:
RESPONDER:
DEPARTMENT:
TF,I,EPHONE:
0211012020
N/A
James Gall
Energy Resources
(s09) 49s-21 89
REQUEST:
Please describe potential impacts to Idaho ratepayers annually by shortening the original lives of
ColstripUnirs3&4.
RESPONSE:
From a design life point of view, Avista understands Colslrip can be operated to 2045. Avista
modeled two scenarios in its IRP where the plant is online to 2025 and 2035. The annual cost of
these scenarios are included in the rcsponse to Audit Request 004.
A1'1'ACHMENT NO. I
Case No. AVU-E-19-01
Response to Production Rcquest of ICL
08/03/20
AVISTA CORPORATION
RI'SPONSE TO REQUEST FOR INI'ORMATION
JURISDIC'I'ION:
CASE NO:
REQIJESTER:
TYPE:
REQUEST NO.:
IDAI-IO
AVU-E-I9.OI
Sraff
IRP Audit Request
Staff-006
DATE PIIEPARED: 0211012020
WITNESS: N/A
RESPONDER: John Lyons
D[.PAR]'MENT: EnergyResources
TEI.EPHONE: [phone]
REQUB,ST:
I'lease pror idc the lirllorving ittlirrlnation in r,Jlatirtr; lo (:olstrip l)ouet Plan1.
a. A schedrrlc shou,ing all ttuners. includinq pcrcclltagc orrtrct-sitilt of ,.:aclr utrit
b. I-.ach orrner's prel'encd tetircluerrl clale lil eaclt unit.
c. A list ol'ctrrrettl dcplcciation lircs [r1 ttnil. lbt cach outtcr.
(1. An), c\pcclcd chalrgcs to orvtrelship. cvctr lltose rvhich :lal ttot lre tina]izcd.
RESPONSE:
a. The follorving table shows the current ownership percentages of Colstrip Units I - 4
Owncr llnit I Unit 2 Unit 3 Unit 4
Avista 0o/o 0%t5%l5Yo
Northwestem Energy lYo 0%
0o/n
0%
0%30%
PacifiCory 09,"10%10o/o
Portland General Electric 0%20%20Vo
Pue.et Sound Energy 50%s0%25%
Talen 30%0%50%50%
b. The closure dates lor each utility is as follows:
. Units I and 2 closed January 2020. ahead ofthe previously agreed retirement schedule.
o Avista: assumcs closure of t.lnits 3 and 4 for IRP modeiing purposcs by the end of2025,
however Avista has no current plans or ability to unilaterally close either unit.
. Northwestem Energy: Avista has provided no specific intelligcncc on the compan)''s
intended closure date.. PacifiCorp: Avista has no spccilic intelligence on the company's intended closure da1e.
o Ponland General Electric: Avista has no specific inlel)igence on the company's intended
closure date.. Puget Sound llnergy: Avista has no speciflc intelligence on the company's intended
closure dat€.. Talen: Ai'ista does not kno\l'\yhal Talen assumes for Colstrip Units 3 and 4 for retirement
dates.
c. Avista does not have the Colstrip depreciation scliedules lbr the other owners.
d. Puget Sound Energy reached an agreement in December 201 9 to sell their 25%o ownership share
( 1 85 M\l/) in Unit #4 to Northwestern Energy and to sccure a 90 MW Power Purchase Agreement
rvith Nodhwesrem until 2025.'l'his sale is pending and will need approvals lrom the Washington
and Montana [Jtilit,"- Commissions. ATTACHMENTNo. I
Case No. AVU-E- I 9-01
Response to Production Request ol'lCL
08/03/20
AVISTA CORPORATION
RESPONSE TO RIIQUDST FOR INFORMATION
.IURISDICTION:
CASE NO:
REQUESTER:'fYPE:
REQUEST NO.:
IDAHO
AVLI-E- 19-01
Stall'
IRP Audit Request
Srall'-007
DAI'E PREPARED:
WIl'NF]SS:
RESPONDER:
DEPARTMENT:
l'ELEPHONtT:
02fi012020
N/A
James Gall
Energy Resources
(50e) 49s-21 89
REQUEST:
Please provide the assumptions and decision criteria thc Clomparry used when modeling Colstrip
Pouer Plant closure dates, rvith and without Clean Energy Translbnnation Act (CETA).
RESPONSE:
Please see Avista's response 007C. rvhich contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from public vierv and is separate ly fr led under
IDn PA 3 I .01 .0 I , Rule 067 and 233, and Section 9-340D, Idaho Code.
The attached confidential file Stat]'-AR-007C Confidential Atlachment A includes thc costs and
operating assumplions used in the live Colstrip related scenarios (#1,#2.#7" #8. and #15).
First, all scenarios in this IRP assume all ol'Avista costs are within the Conrpany's system and
thcrc is no brcakdos,n between stales or unil shareholdcrs.
The scenarios related to CETA ( 1 vs 2) u,ere designed to undcrstand the new resources selected to
nreet capacity deficits with and without new renervable requirenrents and with and without the
social cost of carbon (SCC). These diffsrcnces also illuslratc lhe cost prcmium to comply with
CETA (subject to CETA rulemakings). Portfolio's 7 & 8 rvere designed to understand whether it
was more economic to retain Colstlip to 2035 as compared to 2025 (both undcr CE1-A lau's and
rvithout). 'l'he final ponlblio scenario #15 was developed to understand the financial impact in the
event one unit remains on-line and tlie other shuts dorvn. In the cvent ofone unit shuts dorvn early.
would increase the operating cost ofthe remaining unit as compared to both units running.
AITACIIMENT NO, I
Case No. AVU-E- 19-0l
Response to Production Requesr ol iCl-
08/03/20
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JIJRISDICTION:
CASE NO:
REQUESTER:'l'YPU:
REQUEST NO,:
IDAIIO
AVU-E-19-01
Sraff
IRP Audit Request
Staff-009
DA'TE PREPARED
WITNI]SS:
RESPONDER:
DEPARTMENT:
TF,I,EPI]ONE:
02./10t2020
N/A
James Gall
Energy Resources
(s09) 495-21 89
REQUEST:
Was a f-uel cost change lor Colslrip considered fbllowing the closures of Units I & 2, estimating
fuel needs for the toral plant declining and the possibility lbr cost per unit ofcoal increasing? If
not, please explain additional fuel cost change cotrsiderations.
RESPONSE:
The fuel conlracts for units I & 2 vcrsus Units 3 & 4 are different fuel contracts. The fuel cost for
continued operation of Units 3 & 4 are not in,pacted by closure of LJnits I and 2. The closure
allows for additional mining areas from area A and B to mir *ith area C. therefbre increasing the
tuel supply available for Units 3 and 4.
AT'1'ACHMENT NO, ]
Case No. AVU-E- l9-01
Response to Production Request of lCl
08i03t20
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-01
Staff
IRP Audit Request
Staff-010
DATE PREPARED: 0211012020WITNESS: N/A
RESPONDER: James Gall
DEPARTMENT: EnergyResources
TELEPHONE: [phone]
REQUEST:
Please provide a copy of the most current coal contract with Rosebud Mine, LLC.
RESPONSE:
Please see Avista's response AR 010C, rvhich contains TRADE SECRET' PROPRIETARY or
CONFIDENTIAL inlormation and exempt from public view and is separately filed under
IDAPA 3 L0l .01, Rule 067 and 233, and Section 9-340D, Idaho Code.
'l'he agreement is attached as file Smff-AR-O1 0C Confidential Attachment A
ATTN CHMENT NO. 1
Case No. AVU-E-19-01
Response to Production Request of ICI-
o8/03/20
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-01
Staff
IRP Audit Request
Staff-olI
DATE PREPARED: 021 1012020WITNESS: N/A
RESPONDER: Greg Frohn
DEPARTMENT: GPSS
REQUESTI
Please provide a risk assessment discussing all risks associated with estimated coal resource
availability and potential impacts to the cost offuel and operations at Colstrip'
RESPONSE:
Please see Avista's response 0l lC, which contains TRADE SECRET' PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately filed under
IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code.
ATTACHMEN'T NO. I
Case No. AVU-E'l9-01
Rcsponse to Produclion Requcst of ICL
08i03i20
Page I of I
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVtJ-E-19-01
Slaff
IRP Audit Request
sraff-o12
DATE PREPARED : o2l t0 12020WITNESS: N/A
RESPONDER: James Gall
DEPARTMENT: EnergyResources
TELEPHONE: [phone]
REQUEST:
Please provide any studies regarding energy variation due to cloud cover or other factors Avista
used in the 2020 IRP to estimate generation variability for solar installations identified by location.
If this information is unavailable or does not exisl, does the Company plan to conduct a study?
RESPONSE:
Avisla has not conducted a study lbr this IRP. Avista plans to study this issue in a future IRP
ATTACHMENl'NO, I
Case No. AVU-E-19-01
Response to Production Request of ICL
08/03/20
AVISTA C()RPORATION
RESPONSE'TO REQTIESI' FOR INFORMATION
JURISDIC'I'ION:
CASE NO:
REQUESTEIT:
TYPE:
REQUIiST NO,:
IDAHO
AVIJ.E.I9.OI
Staff
IRP Audit Rcqucst
Staf]'-011
DA'I'E PREPARED:
WITNESS:
RESPONDER:
DEPARTMENT:
'I'F-I,F,PHONI.]:
02/10/2070
N/A
James Gall
Energy Resources
(s09) 495-21 89
REQUEST:
Please provide evidence thal 250 IV{W rvill be available lrom the wholesale market ibr purchase
or as market contracts during the planning timefiarne.
RESPONSE:
Thc Northwcst Power and Conservation Council (NPCC)'s resource adequacy studies estimate
whether the region complies u,ith the five percent [,oss ol Load Probability (LOl-P) regional
target. Avista (and other utilities) may rely on lhe market (or region) fbr peak load needs when tlie
region is compliantt but, rvhen thc region is not complianl. a utility with greater market reliance
may be at risk.
Avista's LOLP studies emulate the concepls of the NPCC study, it tests Avisla's system along
wilh an interaction rvith the regional market. Avista set the 250 MW market limit by balancing two
issues: l) higher reserve malgins to inrprove resource adequacy, rvhich in tum increases customer
rates or 2) higher markel exposure lowering customer rates. but rvith the potential lbr Iower
resource adequacy. Avista chose to balance these two issues by relying on the market for 250 MW,
rvhich led Avista to retain a l4 percent resource planning nrargin (assuming natural gas-lired
turbines meet supplyl ;.
lf Avista chose not to rely on the rnarket lirr 250 MW" Avista would rcquire a planning margin in
excess of30 percent becausc it would nol assume market availabi)ity even vvhen the region has
excess capacity because only one piece ol'the Northwest Region is having a system issue. Avista
llrst disclrsscd this process in the 2013 IRP. The next question concoms whether the resulting
planning margin leans on the system or nut. 'I'o answer this queslion. a regional planning market is
req uired.
l'hc NPCC study does not e slimatc a planning rnargin lbr thc re gion at lhis time" nor does any olhr'r
entity. but the NPCC is lvorking on a mcthodology to cstimatc this nunrber. Avista estimates a
regional resource-planning rnargin olat lcast 13.4% abovc load (and reserve obligations) using
regional average water data. Civen this inlbrmation. Avista's 140lo (up to l8%) pJanning margin is
justified as it excecds the regional averagc'. Funher, Avista should havc higher planning margins
compared to the region due to it having the second highest single largest contingency (Coyote
Springs 2) as compared to its peak load than other ulilities in thc rc'gion. This high single
conlingency could subjcct Avista to greater market risk in the event of an outage and high load
event.
I Avista dctcrmincd Prcfcrred Resource Ponfolio requires an l8 percent planning rnargin to achieve the 5 percent
LOLP as conlpared to the 1.1 percent rates fronr prior lRPs rvilh reliance on natural gas-fired turbines aod coal-fired
resourc(s. ATTACHMENT NO. I
Cirse No. AVtJ-E- l9-01
Response to Production Request of ICL
08/03/20
AYISTA CORPORATION
IIESPONSE T'() ItEQUIST FOR INr-ORMATION
JUTTISDIC'IION
CASE NO:
RIlQTJESTER:
l-YPIr:
REQUEST NO.:
IDAHO
AVU-E-19-01
Stall
IRP Audit Request
Sral f-01 4
DAI E PRF.PARED: 0211012020
WITNESS: N/A
RESIIONDER: Jarres Gall
DEPAR1'I\4llNT: EncrgYResources
I'ELEPHONE: [phone]
RIiQUtrST:
PIease provide the assumptions and decision criteria the Company used when modeling Portfolio
#14. extending the lif'e o1'Lancaster live years, Please explain horv these assumptions differ from
existing closure plans and how the extension rnay impact Idaho ratepayers.
RESPONSE:
Please see Avista's responsc 01 4C. rvhich contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAI, intbnnation and exempt from public vieu' and is separately lllcd under
IDAPA 31.01.01. Rulc 067 a:nd 233. and Section 9-340D. Idaho Clode,
Avista's Power Purchase Agreement (PPA) with the o\\'ners of Lancastcr ends in Octobcr 2026.
Avisla L,xpects the owners rvill continue operating the plant heyond this time bccause it likely has
econonric life beyonrJ 2026. For IRP purposes, Avista does not assume cxtensions of an1' PPA
(except lbr small QI- contracls l.
For Portfblio #14, Avista \\anted to undersland thc irlplicration to the portlblio and cost if Avista
corrld extend the contract rvith Lancasler lor an additional five years- The current PPA allows lbr
this extension rvith new mutual terms (i.e. nerv price). !'or this scenario, the current rates are
assunled lo colttiltue at current escalation ratcs as if the conlract did not end until Decembe'r 31,
2031.
'I'he results of the scenario is a reduction in PVRR ol'
All cost assumptions and annual revenue
requirements are included in Stafl'-AR-014C Confidential Attachment A.
Ai,ista did nor modcl any purchase options fbr this plant, as the benefit/cost uculd depend upon
the purchase price a:rd the cost ol'altcrnalives in a negotiated process.
A'ITACI IMEN'I n-O. I
Case N(). AVl.l-E- I 9-01
Response to Production Requesl of lCl
0310320
AVISTA CORPORATION
RBSPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO,:
IDAHO
AVU-E-r 9-0r
Staff
IRP Audit Request
Staff-O15
DATE PREPARED: 021 1012020WITNESS: N/A
RIISPONDER: James Gall
DEPARTMENT: EnergyResources
TELEPHONE: [phone]
REQUEST:
Please provide the amount and cost of tirm capacitv and/or storage reflected in the Preferred
Resource Strategy (PRS) driven by variable generalion resources needed lo comply with CETA,
Washington RPS, and/or environmental requirements in Washington.
RESPONSE:
Table I1.6 of the IRP shown below is the avoided cost ofboth energy and capacity ofthe Avista
portfolio. The clean energy premium is the added cost to comply with CETA in a $/MWh. This
includes added renewables (beyond those selected in Portfolio #2). and the Social Cost ofCarbon
and the Energy Independence Act requirements. This estimate is derived by the difference in cost
between Portlolio #l and Portfolio #2 divided by the amount of added MWh of resource
capability.
Fu(her, for reliability modeling Avista assumes l0 percent ofthe variable energy output each hour
must be held in reserves. This may drive additional capacity if the variable resource is producing
power at time peak.
ATTACHMENT NO. I
Case No. AVU-E-19-01
Response to Production R€quest of ICL
08/03/20
2071 19.67 22.64 15.7 1 0.00 0.0
2022 19.98 22.75 16,28 |.75 0.0
2023 20.44 23.05 16.98 I1,99 0.0
2024 2t .61 24.09 r 8.28 12.23 0.0
2025 22.76 25.t9 19.50 12.47 0.0
2026 24.27 26.40 2t.43 12.12 t07.7
23.572027 25.27 2r,30 12.97 r 09.9
25.02 26.262028 23.3s 13.23 l 12.1
2029 25 .92 26.80 24.73 l].50 4.3
26.72 27 .08 26.25 13 _772030 I 16.6
201I 29.46 29.66 29.21 t4.04 8.9
2032.29.78 29.95 ?9.54 t4.32 t21.3
2033 31.22 30.7 4 3 r.89 | 4.6t t23.7
32_83 126.2203431 .91 34.06 14.90
2035 JJ.OO 32.64 3 5.05 15.?0 t78.7
2036 15.82 14.82 37.t6 t5.51 llr.3
36.12 34.582037 38.t9 15.82 133.9
3 8.81 37 .40 40.76 t6. t3 136.62038
3 8.60 31.13 40.57 t6.45 r 39.32039
2040 38.52 36.80 40.84 16.78 142.1
2041 39.09 37.74 40.92 17.12 r45.0
2042 3 8.98 37.99 40.31 17.46 t47.9
2043 40.24 39.51 41.21 1 7.81 150.8
7044 46.10 45.29 47.15 r8.t7 153.9
2045 43.94 43.1 I 45.05 18.53 156.9
15 vr Levelized 24.58 26.1I 22.55 lt_81 64.8
20 yr Levelized 26.44 27 .55 24.98 t2.43 '15.1
25 yr Levelized z'1 .86 28.77 26,66 12.93 82.2
ATTACHMENT NO, I
Case No. AVU-E-19-01
Respons€ to Production Request of ICL
08/03/20
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
Jt.JRISDICl'ION
CASE NO:
REQIJESTER:
TYPE:
REQUIiST NO.:
IDAHO
AVU-E-19-01
Stall'
IRP Audit Request
Stafl-O16
DAI'E PREPARF,D : 02/ I 0 12020
WITNESS: N/A
I{ESPONDER: .lanres Gall
I)EPARTMENT: EncrgyResources
TELEPIIONE: [phone]
REQUEST:
Please provide the amount and cost ofadditional planning reserves reflected in the PRS driven by
variable generation resources needed to comply with CE1 A. Washington RPS, and/or
environmental requirements in Washington.
RESPONSE:
Avista has not estimated the added cost of additional planning reserves in the PRS. Although
reflection of the alternative scenarios may lend additional insight to this question. Avista indicates
a change to an l8 percenl planning margin fbr the Preferred Resource Strategy as compared to [6
if the resourcc deficit in 2030 was mct cntirely by CTsl.
Avista used the samc peak credit and planning margin on a1l porrf'olios in the IRP. Avisla has not
conducted any additional reliability studies (LOLP) lbl any of the ahernative ponfolios. but
expects similar outcomes given the same peak credit assumplions. In fact. this is the tjrst IRP
rvhere Avista has conducled reliabilily studies lbr its potcntial resource porttblios. Future [RPs
may contain broader reliabilitl, analysis.
Avista f'urther did not model a scenario of 350 MW of nerv C'l's, nor did it rnodcl a scenario wilh a
l6 percent planning rnargin (outside of the first drat't shou,n in TAC meeting #5); rather Avista
allowed tlie r.nodel to select the most cost-erfecti\,e resources to meet the shortfall in portf'olio #2
(without CLJ't A). and the model selected the resourccs in the table bclow. Also, in this table are
resources sclected in Portfolio #l through 2030. Taking inlo account the pcak credits, the Portfolio
#2 actually selects more lesoulces than the PRS. Given the interest in planning rescrve changes,
tlie next IRP can evaluate tlris issue in greater detail.
Portfolio #l (PRS)Portfolio #2
Capacity
Credit
Capacitv Net
Canacity
Capacity Net
Capacity
Montana Wind 400,6 300 120 100 l 40
Northwest Wind 5%200 IO
175 175 20080 hour Pumpcd Hydro 100o,'o 200
Kettle Falls Upgrade 100%l2 t2
24
t2 t2
Rathdrun.r CT upgrades 100%21
8
1A
4Post Falls Upgrade 48%4
Natural Gas CT 100,,/o
Demand Response 60Yo 5l
123Total521
I
92 92
77 46 85
796 39t
I See Chapter 7 - using CTs and 250 MW r.rf market availability recluires a l6 percent pianning nrargin.
ATTACHMENI'NO. I
Case No. A VLI-E- l9-01
Response ro l'roduction Requcst of lCl-
08/03/20
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INI.'ORMATION
.IIJRISDICl'ION:
CASE NO:
REQUES'I'I]R:
TYPE:
REQTJEST NO.:
IDAHO
AVU.E-I9-01
Staff'
IRP Audit Request
Stall:-01 7
I)AI'E PREPARED
WITNESS:
RESPONDER:
DEPARTMENT:,IF]I,EPHONE:
02fi012020
N./A
.lames Gall
Energy Resources
(s09) 495-2189
RIIQUIiST:
Plcase explain why the Llompany modeled wind. solar. pumped hydro storage, nuclear. and
geothenna) as purchasc power agreemenls (PPA) instead ofCompany-owned resources. Inthe
explanalion please describe:
a. Hou'PPA resource costs cor'npare to Cornpany-owned resource costs.
b, The risks of a PPA conrpared lo Co[]pany-ou,:red resources (i.e. impact on credit rating.
stranded assets, etc. ).
RESPONSE:
Thc Company assumcd a PPA rather than olvnership lbr the foilorving resourccs:
Wind/Solar: A PPA rvith an Independent Porver Ploducer (IPI') providcs a lowcr cost per MWh
than ownership options for the lollorving reasons: altltough the Cornpany has not recently
conducted a cost comparison betu,een the alternalivcs.. IPPs t,vpicall). havc highcr dcbt ratios (70% to 80%) vs Avista only 50% fbr capital investment:
rvith low iuterest rates IPPs have the advantage as the utility is limited to 50% debt and musl
flnance the remaining cost with higher cost equity.
. IPP can monetize ltderal crcdits to lou,r'r upfront capital costs, Both the P'|C/ITC and
depreciation are sold to a 3'd party to lou,er upliurt capital requirernents fbr IPPs. ln the utility
owncrship ahernative. these benefits will be amortized over thc lile oflhe benefit. Given the
upfront benelit to the IPP this lorvers the cost of the energy. 'l'his is the main driver of
mode)ling these resources as a PPA rathor than o\\'nership. 'fhis is a lederal tar accoullling
issue.. 'l'he PPA can also have pavment structures thal are llal. increasing or dccrcasing. i.vhere Lrtilitl
ownership is typically a decreasing cost as the plant dcpreciates.
. PPA's can impact utili{y credit rating by imputing debt: in Avista mosl recent PPA acquisition
this impact was minimal. bu subject to change frorn ralinS age:rcics
o PPA's prolccl custon'rers lionr iack ofproduction. with utilitl' ownership the utilit-v/rate payer
mav take the risk ol'lower production. rvhere a PPA (paid as a S/MWh) places this risk on the
lPP. Although futurc PPA's rray have altcmali,u'e structures. lessening this benellt.
. A PPA also protects the r"ltility/customers fiom stranded assets if the technology bcconres
obsolete or needs replacenrcnt: although if the technolog,y is viable. the utility/ratepayer does
not bencfit on thc asset or site after the PPA term.
o A risk of PPA is a perfbrmance risk oflhe IPP. Avista requires IPPs 10 post bolh constructiolr
and peribnnance guarantees in the event thc IPP delaulls and applicable steps in the rights to
take Over the project.
ATTACHMENT NO, I
Case No. AVU-E- l9-01
Rcsponse to Ploduction Request of ICL
08.10l/20
Pumped Hydro, Nuclear and Geothermal
Avista chose to model pumped hydro, nuclear and geolhermal resources as PPAs rather than
ownership due to the utility not having an active development program for them. An RFP process
would determine 16 3'a-party olferings of these technologies could compete wilh alternatives.
When IPPs bid, they offer PPA or asset sales and Avista would evaluate each to determine the
lowest cost altemative for customers. Avisla's experience in RFPs lead us to believe that the
mostly likely outcome is acquisition in the form of PPAs. As with r.rind and solar, some of the
benefits/risks of a PPA described above are the same. Given these resources do not have tax
incentives (for when they are considered in the plan), the cost difference between PPA and
Ownership likely would be small.
ATTACHMENT NO- I
Case No. AVU-E- 19-01
Response to Production Request of ICL
08/03/20
EDWAIID JEWELL
DEPUTY Al-foRNIiY CITNEI{Al.
IDAHO PUBLIC UTILITIES COI\4N,I ISSION
PO BOX 83720
BOISE, rDAr ro 83120-0074
(208) 334-03 l4
lDr\l-lO RAR NO. 10446
Strccl Address tbr lrxpress Mail:
472 W, WASHING'I'ON
BOISE. IDAHO 83702.J9I 8
Attornel lirr lhe ('orrrnrission Slall
BEFORE THE IDAI{O PUBLIC UTILITIES COMMISSION
IN TI{E NIATTER OF AVISTA'S PETITI0N
FOR AN EXTENSION TO FILE ITS 20I9
I'LI'CTIIIC INTECRA'TED ITESOURCE PLAN
CASE r-O. AvU-E-19-01
I.'IRSl' PRODTJCI'ION
REQTJEST OF'TIIE
COMMISSION STAFF TO
AVISI'A COITPORAl'ION
'l'hc Stall'ol'lhc Idaho Public l.lrililics Commission, b;- and through its attomey ol'record.
Iidrr,ard .lc\r.ell. Dcputy At(ornc) C$r!'ral. rcquest that Alista CorPoration (Contpany) providc
the lbllorving docrLmcnts antl inlbn:ralion ls socrr as possiblc, or bI lVEDNESDAY'
MARCH 20,2019.
This Production Rcqucst is continuing. and thc Conrpany is reqttestcd to provide. by wa)'
o f supl)lentenl ar\ responses. addititrnal docunlenls that it or anl persun actlng on its bchall'nra-Y
ialcr obtain that rvill augrlcnt ihc d()[ur]lcr]ls produced.
I'lease provide ansu'ers to cach question. supporting rvorkpapers lhat provide detail or are
the soLrrce ol inlbrnration uscd in calcultrlions. lltc Corttpanl.'is rtmindcd thal rcsponscs
pursuant 1o Conrmission Rulcs ol l)rocedurc ntusl inclutlc lhc natne and phonc numbcr ol thc
persr:n prcparing thc docun)cnt, and the nantc, localion and phonc nttntbcr ol thc rccord holdr:r
and if'dill'erent the u'itlr€ss \yho can sponsor the ans\\er at hearing it nccd be. Rel'erence IDAI)A
3 1 ,0 1 .01 ,228,
FIRSI Pl{()l)LiCl I IO\ RIIQi;l:S1.
TO AVIS'I'A
)
)
)
)
)
)
)
)
ITEBRUARY 2?.2019
ATTACHMENT NO, 2
Case No. AVU-E-19-01
Response to tloduction Request of ICL
08t03/20
In addition to the u.rilten copics providcd as rcsponse to the questions, plcasc providc all
Excel and electronic files on CD rvith formulas aclivated,
REQUEST NO, l: Pleasc describe any potentiai decisions the Company will not be ablc
to make or identity' due to a 6 month extension ol'the IRI) Iiling date.
REQUEST NO. 2: What typcs of subscquent lilings that rely on the IRP will bc
impactcd by lhe cxtcnsion (c.g. PURPA deficit date and avoided cost lilings) and whal rvould lhc
impacts be?
I{I:IQUESI NO. 3: What :isks has the ('ornpirny identified that are credted by an
extcnsion of the IRP tiJing datc?
IfEQUEST NO. ,l: What options could the Company undertake to n)itiSale any risks b]
extending the IRP {iling date? (e.9. file an Lrpdate to the 20l7lRI')
REQUEST N0.5: What kind ot changcs u'ill thc Corapany necd to make to their
modcling methodology antl analysis il'the dill'erent t1,pcs oflegislation passcs? Please cxplain
wh]' thcsc changcs arc imPortant
REQUEST N0. 6: tl'lhc cxtcusioi: is appxl'cd. rvill thc Conlpany plan lo usc thc
altcrnative lirtures and sccnarios ciiscusscd rt the- sccond'l'AC nrr-'cting on November 27,2019?
RItQI"IEST NO, 7: Could thc (lompanf irlc()rforatc lhc lcgislation into the trormal IRP
proccss ss scparatr- what-ilcascs or sccnarios'l
ITEQUEST NO' 8: Plcase provide thc datcs by rvhich thc Conrpanl'rvill krorv if thc
legislation is enacled lbr all thc proposrtls tncnlioned in the petition lbr crtension.
ITIRST PRODUCTION REQU]iSI'
TO AVISTA 2 FIIBRUARY 27,20I9
A'I"|ACIIMEN'T NO, 2
Case No. AVU-E- l9-01
Rcsponse to hoduction Requesl of ICI-
08t03/20
REQUEST NO. 9: What is the projected likelihood that the legislation in Washington
passes? Please explain by providing an assessmenl oflhe inlerests and the strength ofthose
interests for and against the legislation.
Dated at Boise, Idaho, this J l' dav of l;ebruan' 2019
Edward J
Deputy At v General
r umisc i.odrcq/avuc19.lcjnle prod rcql
FIRST PRODUCl'lOr.N REQUEST
TO AVISTA 3 IIEBRUARY 27,2OI9
ATTACHMENT NO. 2
Case No AVU-E-19-01
Response to Production Request of ICL
08/03/20
CERTIFICATf, OF SERVICE
I HEREI]Y CERTIFY 'THAT I }IAVI.] 'J'I'IIS 27TII DAY OF FEBRUARY 2019,
SERVED THE FOREGOINC FIRST PRODUCTION REQUEST OF THE
COMMISSION STAFF TO AVISTA CORPORATION, IN CASE NO. AVU.E.I9-OI,
BY MAILING A COPY THDRI]OIT, POSTAGE PREPAID. 1'O THE FOLLOWING:
LINDA GERVAIS
MGR REGULATORY POLICY
AVISl'A CORPORA'I'ION
PO IIOX 3727
SPoKANE WA99220-3727
DAVID J MEYER
VP & CHIET COUNSEL
AVIS'I'A COI(POI{A'I'ION
PO BOX 3727
SPOKANE WA99220-3727
E-MAIL: linda.rerlaisririit.v lslilc0n).c0tIl E-N'IAIL: tlavid.ntC\ cf''4IlAYi ot D.colll
vislrrdocke \.rstac !) rtl.coll!
I
SECRE'I'ARY
CER'TIFICATE OF SERVICE
ATTACHMEN't- NO' 2
Case No. AV[!E- l9-01
n.rpo.tta to Prcduction Request of ICL
08/03/20
Avista Corp.
1411 East Mission P O.gox3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
#rutstt
cwp.
March l4, 201 9
Idaho Public Utilitics Contntission
472 W. Washington St.
Boisc, ID 83702-0074
At'tn; Edn ard Jewell
l)eputy Attorncl General
Re: Production Request 01'the Commission Staff in Case No. AVU-[- 19-0 I
Dcar Mr. Jervell.
Encloscrl are Avisla's responses to IPUCI Stafl's production rcquests in the abovc relbrenced
duckcts. lnc]uded in this rnailing *e the originol arul tvtt lxtper crTic.r ol'Avista's responses to
protluction requests: StalT 00t - 009. 'Ihe clectnrnic verslons of the responses were emailed on
0i/ l4l t 9.
Il'thcre are any qucstions rcgarding the cncloscd inlbrmation, please conlact Paul Kimballat (509)
495-1584 or via c-nrail at paul,kimballiaJavislacorp com
Sincerell'../ ,i.../' .,//.r///l::"',/// .,r/,4/,a -'
I'aul Kimball
Regulatory Analysl
Flnclosures
(lC (Enrail):IPt]C (llanian)
AT1'ACHMENT NO. 2
Case No. AVU-E- 19-01
Response lo Production Requcst of ICL
08/03i 20
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICl'ION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAI.IO
AVt-J-E- 19-01
StalT
Production Request
Staff-001
llA'fE PRl:PAltli,D: o3/1512019
WITNESS: Clint Kalich
RESPONDER: Jiunes Call
DEPARTMEN'I: EncrgyRcsourccs'l'[LEPHOTT'E: [phone]
REQUEST:
Please describe any potenlial decisions the Company will not be able to make or identily due to a 6
nronlh extcnsion ofthe IRP filing date.
ITESPONSE:
Avista docs not lbresce any significant decisions impacted by a six month delay in the lRl'tiling.
Avista,s vierv is the delay, will allow tbr making better long term decisions regarding our
generaling resource porlfolio and denrand management Progralns once the legislative process is
cornplele.
A]-TACHMENT NO. 2
Case No. AVU-E- l9-01
Response to Production Requesr of ICL
08/03/20
AYIST'A C()l '()r{A'l lO}i
ITESPONST] TO ITEQUEST FOR INFORMATI()N
JL]RISDICTION
CASE N():
REQUES']'EIT:'I'YPE:
RI!QUEST NO,:
IDA},IL)
AVLr-L- I 9-0l
Staff
Pt'oduction Rr:c;ucst
StaU'-00:
DA'l ti PRLPAREI)
WI'I'NESS:
RI]SI}ONDER:
DEPARTN,tENl':,I'ELEPHONE:
0-']i I5/2019
Cllint Kalich
Jarnes Gali
Energy Resourccs
(509) 4e5-2 r 8S
A1'1'ACHMTNl'NO. 2
Case rr-o. AVU-L- 19-01
Response to Production Requesl of ICL
08,0i120
lrEQUris'r';
What types ol subsequent lilings that rely on the' IRP * ill be impacted b1 the extension (e.-u
I'URPA dclicir date and aroided cost tllings) and u'hal rvould lhe impacts bc?
RfSPONS[:
Porrcr Rclaterl Filings:
Avisra's tiling far the PURI'A rtlltcd capacitl.dcficicncl.' period could still be tnade using the
Conrpanl's lrlost currelrl capacity'planning inlbmration. -fhis includcs thc Companl's nlost recc11t
capacitl' position uith load and rcsourcc lix'cr:asts. and lhc most rec..:nt nalural gas pricc lbrccast
AlternativcJy. rhc Compan)' could usc ils draft 2020 lltP lssLtnrptions.
hr the event ani.' PtJRPT\ relatcd contracl lilings alc required prior to l'rnali:ration ol'the IRI).
pricing could use eithcr thc 2017 IRP rcsult or drali 2020 IRI) rcsults.
Conscrvalion Re latcd Filings:
l'he Conpanv plons to lilc its 2020 I'.ncrg1 l:.i)icil'ncy r\nnual ( onservation l)lan (A(lP) in
Novemher 2019 and recognizcs thal thc sxtcnsion could havc a potl'n1ial itnpact ott the cncrg).
el'liciency savings target idcntilicd in that plan. tlistoricalll,. rhc ACP's kWh targct had been
cstablishcd in thc IRP process anrl delal-ing thc IRI'coultl causc misalignmenl bctween the
Nolcmbcr 2019 ACP liling and the availabilit,t' ol'inlirrmalion to establish an updated sar'ings
taraet.
A discussiorr rvill nc'ed to occur bcl$'een thc Companl' and Comntission Stal'i lo dctcrminc thc
rppropriate iutcrim savings largcl that shorrld be used rntil the ll{P il llnalizcd.
In the abscnec ol an IRP targr-t. a conscr]ation sa!'ings goal could hc sct utilizing the Contpany's
business planning proccss *hich idenliljcs a targct. achievement buscd on historical results and
1 utLrre predictions ()1' progranr throLrlihptrt.
AItcrnativcll. the l0l7 IItl'could bt ulilizcd to dctcnnirte an intcrinr savings goal by applying the
2019 savings lrlrget ltl 2020. 'l'l:is rrpproach is prclirrr.'d and is consislent r'r'ith rvhat thc (lompanv
is doing in its Washington jLrrisdiction.
AVISTA CORPOIIATION
RIISPONSN TO REQUEST FOR INFORMATION
JURISDICTION:
CASL, NO:
REQUESTER:
TYPE:
REQUES'I'NO.:
IDAIIO
AVU-E- l9-01
Staff
Productiotr ReqLrcst
Staff-003
DA-ID PIiIPAI{LD: 03t 15/2019WITNESS: Clint Kalich
RESPONDER: Jarncs Ciall
DEPARTMENT: EnergyRcsources
TELEPHONE: [phone]
REQLIEST:
What risks has the Comparry identilied that are created by an extension ofthe IRI liling date?
RESPONSE:
Due to Avista's energy and capacity Iong position (no ncrv capacity rcsources are needed unlil
2077), the Conrpany has not idenritied any risks wirh delaying the IRP Iiling until February 2020.
Avisra believes nol delaying the IRP would creale more uncenainly regarding its long term
rcsource plans due to the unknorvn details ofpotential energy bills in the stal.cs Avista serves'
ATTACHMENT NO. 2
Case No. AVU-E- l9-01
Response to Production Request of ICL
0&t03t20
AVIST.4 CORPORATION
ItusPoNSE'l'() t{EQultsT FOtt I NFORMATION
JURISDICl'ION
CASE NO:
RIJQUESTER:'I'YPE:
nEQLr[S I' NO.:
IDAHO
AV[J-E- i 9-0 t
Stall'
Production Request
StafI'-004
DATE PREPARED: 0i/15i2019WITNESS: Clint Kalich
RESPONDER: Janrcs (-iall
DEPARTIvIENT: EnergyResourccs'l-ljl.l:PllON[: [phone]
REQTJES'I':
What options could the Company undenake to rnitigate an.v risks b)' ci{tending the tRP filing date?
(e.g. file an update to the 201 7 IRt')
IIESPONSE:
As explained in PR 3, the purpose o1'the six lnonth e\tensjon js lo mitigale, nol increase. risk
associated *,ith publishing an IRP inclLrding'r,arious anallses nradc irelevant by nerv legislation.
The 2019 ll{l' process envisiorrcd str.rdying scvcral Potential !'ncrgl., legislation scenarios lo
undcrstand the changcs in rcstlurcc stratcgies duc m potcntial legislativc outcotnes. Even $'ith
thcsc altcrnatilcs small but significarrt lcgislativc changes could alter our resoulce stratsgy.
Deiaying the liling by six nronlhs should climinatc thesr, risks by alkrrring thc (bmpany to ntodel
actual legiskition. [iling updates or rnid-term lllP's providcs intcmrcdialc inlbnualion that is shorl
livcrl in its usc bccausc u neu'plan is rcquircd c\'tsrI other )ear.
ATTACHMENT NO, 2
Case No. AVU-E- t9-01
Response to Production Request of ICL
08/03/20
AVISTA CORPORATION
RESPONSI' TO REQUEST FOR INFORMATION
REQUEST:
What kind of'changes r,''ill the Courpany nced to nrake to their r:rodeling nrethodology and anall'sis
il'the diff'ercnt types olJegislation passes'l I'lease explain why thcsc chaugcs are important.
RESI'ONSIi:
Avista does not anticipatc any signilicant nrodcling mcthodologl' changes liorn dclaf ing the IRP.
Ilorvcvcr. thc data and assunrplions uscd in the 2020 IRP r"'ill bc updated to reflect lhc most surrcnt
inlbrmation available al the tinrc the IRI'is developed. Avista previously.' planned a methodology
change liom the 2017 lRl' that would split Washington and ldaho load and allocated resources 10
sen,e state loads. lhis nrelhodology change was discussed during a recenl'l'AC meeling and is
necessarv il one state pret'ers higher cost resources than the olher slale.
The proposcd legislation in nrultiplc stales il'passed uould inrpact both Northrvest energv markcts
and Avista rcsource decjsions lbr capacity., and energl- resources in \\rashington and [daho. Some
ol'thc potcntial )cgisJation includes specific state cap and trade nlarkcls, grccnhouse gas taxes. coal
plant shutdou,ns. increased renewuble er)ergv mandales- including banking provisions and
resourcr-' availabi I itv delcrminates.
Each ol'the alternatives being proposed rvill inrpact thc NW clcctric encrg)- Inarkel. which in tunr
atrccts the rc.source dccision choiccs lbr Idaho cuslomers to servc its l-uture capacity shortlhlls
idcntillcd in rhc 2017 lRP, Furllrcr. an1 lcgislalion liom othcr s(atcs rrray inrpact Idaho's custonrers
share ol'coal capacity by changing the liming nnd quantitl ol ncrl rcsources rcrluirctl to serrc
ldaho's pcak load. Irurlher, potential cap and trade legislation in Oregon could impact the
econonric viability of Avista's orvncrship of Coyote Springs 2, Delal"ing lhe IRP tiling by six
nronths should allorv thc companY l() Lrndersland and quantili thc changcs in th!'niarkctplacc and
lhc econrrrnic viabilit.v.' of-cxistint and luture resourcc choices-
JURISDICTlON:
CASE NO;
I(IIQLIHSl'EIT:,I'YPE:
REQUEST NO.:
]DAI.IO
AVU.E- I9-O I
S tatl'
Production Request
S ta{i'-005
DATE PREPARED
WITNESS:
RESI'ONI)F,R:
DEI'ARTMEN'I':
TEt-EPHONE:
oii I 5/2019
Clint Kalich
Jarres (iall
Encrgy Rcsourccs
(509) 49s-21 89
ATTAC}IMENT NO. 2
Case No. AVU-E-19-0 t
Responsc ro Production Request of ICt.
08101i20
AVISTA CORPORATION
RIiSI'ONSII'TO REQT'I1ST F'OR lNFORMAl'I0N
REQUEST:
lf the extension is approvcd. u,ill thc Companl' plan to use the alternative futures and scenarios
discussed al the sccond TAC nrcr'ting on November 27. 201 9?
RESPONSE:
r.,rote: Avista intcrprcls this qucstion to be rclated lo Novenrber 27. 201 8.
lllhe extension is approved, the flompany *ill propose alternalive lirtures and scenarios more
rele\ant lo uny legislation passed in the slales AYisla serves. Arista's proposed lutures and
scenarios will come liortt lhc NoYenrher 27, 201 I mceting and u'ill be akered rvltere necessar.v-, lior
exanrple. il legislation passes in Washington and Orcgon. additional studies could be conrpleted.
including sccnarios to incorporatc proposcd national cncrB),polic1'changes. specific resource
acquisirions or diYcstiturss. or spccilic scenarios rcqucstcd b1 TAC mcmbcrs Avista has
idcntilied Junc 15. 201 9 as a nerv deadline tbr sutrmilting ne$ stud)' rcqucsts.
JLIRISDIC'I-ION:
CASE NO:
r{EQUIS t'lJR:
T1'PE:
REQTJES'I- NO.:
rDAHO
AVU-E-t9-01
S taff
Production Rcqucst
S tatf-006
DAI'L PRLPARED
WITn"ESS:
ITISPONDIIt:
l)lrl'All'l lvl EN l:
'I-L]I-EIIIIONE:
03/15t20t9
Clint Kalich
James Call
linergy Resources
(509) 4e5-21 89
A'fTACHMENT NO. 2
Case No. AVU-E- 19-01
Response to Production Request of ICL
08/03/20
AVISl'A CORPORA'TION
RESPONSE TO REQTJEST FOR INFORMATION
JUITISDICl'ION;
CASE NO:
RHQI.JESTIItt:
TYPE:
ITI]QUEST NO,:
II]AIIO
AV[j-E- 19-01
Staff
Production Rcclucst
Stall'-007
DAl ll PRIPARID: 03/ 1 5/2019
Wl'l'N[SS: Clint Kalich
RESPONDER: .lanres Call
IJEPAR'lMIlN'l : Energy Resources'IELEPHONE: [phone]
IIEQUEST:
Could thc Company inc()rporale lhe legistalion into lhe normal IRP proccss as scparatc what-il
cases or scenarios?
RESPONSE:
Avista anticipared that legislLrtion unccrtainty u.ould bc an issue dtrritlg the IRP proccss. To
address this. thc Company rccomtnendcd pcrlbrnring thlcc "\vhat il" f'utures ralher than onc
"expccted ciuc". 'l-he "rvhat il" scenarios provide general guidance regarding policy direclions, but
rvili not be as precise tlepending on tlre specilics ofthe proposed energy policies. lior exarnpJc, the
state ol'Washington is pursuing an 80 percent renewable energy deli i erv goal by 2030, but is also
contelnplating allorving utililies to bank exccss rcn$vables tiom prior 1'cars. or alloiving thenl.to
use a multi-lear compliance peliod. Dcpcrrding on the nethod the Stale chooses to handle
renervable u,icenairty, Avista ma1. nectl to acquire resourccs bc; ond the 80 percent goal due l0
rcncrvables' annual dcliVery unpredictabi)ity relaled to rveathcr. lrurlher, the ComPany's next
rcsourcc decisiol lb1 capacity needs could accelerate due to the treatnlent ol coal resources.
specilically Colstrip. Avisra is conlident that wai(ing lbr the legislativc process to complete will
piovide the best direction to idcntify spccilic rcsource requirements to mc'ct the Company's I'uture
loarJ rcquircurents, and is pret'erable to speculalints rvith "rvhal it' ssenarios'
ATTACHMENl'NO.2
Case No. AVU-E- I9-01
Response to Production Requesl of ICL
08i03/20
AV ISTA (_'OItPORA',il()N
RI;SPONSE TO REQIIIST FOR INFORMATION
.IURlSDIC]-ION:
CASI-, NO:
RIiQt)l;s'iliR:
l'YPh:
RI-QUES'I'NO.:
IDAI If)
AVU-t._- t9-0l
Stall'
Productir-rn Request
Stall'-008
l)A l H PItlil)Altl:l): 0l/15/201 9
\VlI'Nl- SS: NiA
RESI'ONDER: Collins Sprague
I)Ijf]AR'IMUN'l': CovemmentRelations
l-l'-l.flPtlON t:: (509 ) .195-2525
RriQl.rEST:
I)lease providc the dates by which the Ciompany irill knou, il'the legislation is enacted lbr all the
proposals menlioned in the pelition lor extension,
RESI'ONSE:
Avista cannot predict with any precisjon u'hen lcgislation in an1' particular jurisdiclion may bc
enacted. 'lo endeavor ro do so \,\'ould be an exercise in spccu)ation. All tlrat is ccnain arc lhc
Constituional datcs tilr legislaturcs lo adjourn sinc dic. .l'hc bills to which this inquiry relers arc
bcing crrnsidcrcd in thc lcgislatulcs ol' \I'ashington. Montana and Oregon. Washington's
legislaturc will adjourn on Aplil 28.2019. N{ontana-s lcgislaturc is scheduled to adjoum on Ma)'
1.2019. Oregon's legislaturc rvill adjourn on Junc 30. 201S, It'salualspossiblethatunyoi'thcsc
.jurisdictions could convene in special session at any tinrc lbllouing thcir regular session.
AlTACTIMEN'I NO. 2
Case No. AVU-E- 19'01
Response to Production Requesl of ICI-
08/03/20
AVISTA CORP(}RA'I'ION
RISPONSE, TO REQUEST T'OR IIiFORMA'I'ION
.]I ]RISDI(''I-ION:
CASE NO:
RlrQUtiS'l IR:
TYI'I.,:
RllQUl:S'l NO.:
IDAIIO
AVr..r-F.- l9-01
Stalf
Production l(equest
Srati'-009
l)n 'l I PI{l:PAltlil)
WI'I'NESS:
l{ lrSl'( )Nl)lrR:
DllPi\R I'N'II:N'l :.I'E1-LI'I IONI]:
03/ t5/1019
N1A
( ollins Sprague
(iovemment Rclations
(i09),1q5-2525
Avista can provide thc currcnt status ol legislation and somc contcxt lbr it. bascd upon lvhat thc
(iompany- knows about it tt.rdal' l'rom public records, llrrrvcver. because circumslances beyond our
conrrol ind pcrlraps eYen outside of our kno\\,ledgc' can ail'ect lhe prospects of enactnlent lbr
legisJation. wc cannol and should not attempt to predict uhetlrer or rlot an)' piece oflegislation u'ill.
pa--ss, Also. n(rte that hv rhc rinrc this response has bccn subnrittcd. it is \.crl' likely that ahe status ol'
legislation has changed.
rrtiQlIlisl-:
Whar is the projecred likelihood that thc lcgislation in \\'ashington passes'/ Please explain b1-
providing un or."*r,,',art o1'thc inlerests nnd lhe slrcntlh ol those intercsts lor rtnd against thc
legislation.
RESPONSE:
ln Washington:
. Sll 5l16. introduced on behatl'ol-Govemor Inslee. has passed lhe State Senate. As olthis
rvriting. ir has bccn scherlulcd lbr rr hcaring in the Ilousc l']nYironment and linergv
Cotlniittcc, Ihis version o1'the bill has no recorclcd opposition ol'nole. allhough it is
cornnronly known that a multitude o1'stakcholders continuc to hal'c particular intcrcsts in
anrcnding the legislation.
. Illl I ll-l has bcen reported liorll thc Ilouse [:nvironnrenl and Iinc'rg1 ('omrrrittce antl has
tr.en rettrred to the ousc Appropriations Contnittc.'. l-his bill proposes to align the
Statc's grccnhousc gas cnrission largcts u'ilh othcr statcs and is. thus. indircctly' linkcd to
other mcasurcs rclating to rerJucing grccnhousc gas cmissions th:ll havc bccn introduced.
'lhc bill is supportcd b_v the Inslce admiflislrarion and environmcnlal groups. No parties
lcslilied in oPPosition,
. IIB lll0 has advanced to the I lousr- RuL:s ( ontntitlcc. lt is supported hl thc Inslee
adminislration. cnYironnrental groups. and rrthcr publicr agcncics. It is opposcd b1
pctrolcunl ctlntpanies and husiness associatitlns.
. Ayisra has hecn infomred that lcgislalion authorizing. cap and tradc lcgislation u'ill hc
intro6uccd in thc State Senatc. While conceplual dralis hare bcen publicll disseminatcd.
\\,e do not knou, u,hat hrrm thc tc'xl ofthe polential lcgisJalion w ill assunrc. l!{oreover. sincc
the lc.grslation has not bcclt introduccd. it has not lrcen thc toPic of a public hearingl
thcrclirrc. wc cannot givc an accotlnting ol'\\ho its supportcrs or opponcnts nla) or n]ay not
be. It should be noted thal the bill u ill hc introduccd near the Legislature's house ol'origin
cut-oll. Assunring it \ill contain provisiotrs rclalinq lo Slatc rcvenuc. it could be
designatcd as "ncccssar)'to implc)rent" thc Statc Opcrating llLrdgct and tlrcrefbrc cxcnrpt
lionr thc l.egislatttrc's cut-olI'resolution,
I'agr I ol 2 AI"TACHMENI' NO, 2
Case No. AVU-E-19-01
Responso to Production Requ€st of ICI-
08/03/20
ln Montana:. I ltl 20i wrLs tablcd in thc llouse Encrg;' Contmiltcc on t'ebruar,"- 6" 20 I 9. Because it might
afl'cct State linances, procedural motions could be brought lu relieve the Committee ol'the
bill lo advance it to the tloor ol'the llouse.
ln Orcgon:
. HB ?020 is still belbre the Joinl Lcgislativc Carbon Rcduction Committce. The nrcasurc
has been the subject ofcxtraordinary public hearings held thnrughout the s(ale. lt is being
supported bl the state's electric ulilities. is opposed b.v business and manufacturinB
associations. and has had "conccrns" cxprcsscd ahout it bt natural gas utilities.
environmental groups. and social.iustice organizalions.
ATTACHMENT NO. 2
Case No. AVU-E-19-01
Response to Production Request of ICL
08i03/20
l'age 2 ol2
CERTIFICATE OF SERVTCE
I HEREBY CERTIFY THAT I HAVE THIS 3RD DAY OF AUCUST 2020,
SERVED THE FOREGOING STAFF'S RESPONSE TO IDAHO CONSERVATION
LEAGUE'S FIRST PRODUCTION REQUEST TO COMMISSION STAFF, IN CASE
NO. AVU.E-I9-01, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING:
LINDA GERVAIS
MGR REGULATORY POLICY
AVISTA CORPORATION
POBOX3727
SPoKANE WA 99220-3727
E-MAIL: linda.qervaistlr',a vistacom.conl
avistadockel vlstacoft)-conl
BENJAMIN OTTO
MATTHEWNYKIEL
ID CONSERVATION LEAGUE
7IO N 6TH STREET
BOISE ID 83702
E-MAIL:ltrconservat
nrnvkiel liiidaltoconservation.olg
DAVID J MEYER
VP & CHIEF COUNSEL
AVISTA CORPORATION
POBO)(3727
SPoKANE WA 99220-3727
E-MAIL: david avl
SECRETAR
CERTIFICATE OF SERVICE