20220401Avista to Staff 1-18.pdf

AVISTA CORPORATION
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REQUEST NO.:
IDAHO
AI/[-J-E-22-02
Staff
Production Request
StaftOOl
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
'.' i.i*DATE PREPARED: O4lOlnALL|,, : i,,,t,i=i*"-qigl{
N/A
John Lyons
Energy Resources
(509) 49s-8sls
REQUEST:
Please identifu the pros and cons of filing the biannual capacity deficit date case when the IRP is
submitted versus after the IRP is acknowledged?
RESPONSE:
The primary benefits of filing the biannual capacity deficit date case when the IRP is submitted
would be that the information would be current, the filing would be added as a part of the IRP
submission process and it would be a known date to file. The main issue with the earlier filing date
would be the additional work required at an already busy time with filing the IRP. The benefits of
filing with the IRP appear to outweigh the exfra work from the Company's perspective.
AYISTA CORPORATION
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CASE NO:
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REQUEST NO.:
IDAHO
AVU-E-22-02
Staff
Production Request
Stafl002
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHONE: (509) 49s-851s
REQUEST:
Are the load and obligation amounts included in the load and existing resource balance (L&R) for
all scenarios the latest information available? If not, please provide the latest load and obligation
data and explain the causes for any differences to the amounts included in the filing.
RESPONSE:
Yes, all scenarios were provided in the filing.
AYISTA CORPORATION
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CASE NO:
REQI.JESTER:
TWE:
REQUESTNO.:
IDAHO
AI/Iu-E-22-02
Staff
Produotion Request
Staff-003
DATE PREPARED: 0410112022WTINESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHONE: (s09) 495-8s15
REQIIEST:
Please confirm that PURPA oontacts are assumed to renew in the L&R for all scenarios.
RESFONSE:
Yes, the Company assumes that PURPA oontracts will renew for all scenmios.
AVISTA CORPORATION
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REQUESTER:
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REQUEST NO.:
IDAHO
AYU-E-22-02
Staff
Production Request
Staff-004
DATE PREPARED: 0410112022WTfNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHONE: (s09) 495-8s15
REQUEST:
Does the contract information (e.g. contract execution, contract renewal, and contract termination)
included in the L&R for all scenarios reflect the latest information? If not, please provide the latest
information.
RESPONSE:
Avista has not included the Chelan PUD Hydro signed in Decemrber 2021within this filing. This
contract does not change the deficiency date. Avista is including an updated PRiSM file with this
contract attached as file Staff-PR-004 Attachment A. This file is for the expected case and includes
a new theoretical resource strategy.
AVISTA CORPORATION
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CASE NO:
REQUESTER:
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REQUEST NO.:
IDAHO
AVU-E-22-02
Staff
Production Request
Staff-005
DATE PREPARED: Ml0ll2022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHONE: [phone]s1s
REQUEST:
Are the University of Idaho's solar and steam PURPA projects included in the L&R? If so, please
provide the capacity contribution amount and explain the method, with calculations, for
determining the capacity conhibution for each conhact. Please provide all workpapers in Excel
format with fonnula intact.
RESPONSE:
No, the University of Idaho's solar and steam PURPA projects were not included in the L&R
because the contract was signed after the 2021 IRP and subsequent capacity deficiency report
filing. These PURPA projects will not be included in future L&Rs as a PURPA resource since they
are net metered and will be built into the load forecast.
AVISTA CORPORATION
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JURISDICTION
CASE NO:
REQUESTER:
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REQUEST NO.:
IDAHO
AYU-E-22-02
Staff
Production Request
Staff-006
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHoNE: (s09) 495-8s1s
REQUEST:
Table 1 of the Application shows the first deficit occurs on Novemb o I , 2026, for the "2021
Electric IRP" scenario with a deficit amount of 247 MW. However, the corresponding excel file "I
PRiSM 7.0 GUROBI I20720IRP PRS wChelan" shows that the first deficit occurs in the winter of
2023 with a deficit amount of 4 MW and that the second deficit occurs in the year of 2027 with a
deficit amount of 247 MW. Please answer the following questions.
a. Please explain why the first deficit year is not2023.
b.Why does the excel file show that the247-MW deficit occurs in2027 instead of 2026 x
described in the Application?
RESPONSE:
a. Yes, there is a 4 MW deficit in2023 if Colship 3 & 4 exit the portfolio. In this event, and if no
other changes occur, there is a small and short-term deficit the Company plans to cover with a
short-term purchase since 2024 reflects a 54 MW surplus, followed by expected 36 MW and 42
MW surpluses in 2025 and 2026 respectively. The first sustainable deficit, which should higger
capacity payments is not expected until after the end of the Lancaster PPA in October 2026 andthe
expected loss of Colstrip in the202l IRP Base Case for economics and to meet Washington State
law under the Clean Energy Transformation Act.
b. On an annual basis, the first deficiency does not occur :until2027. As explained on page two of
the filing and in the IRP, the Company expects the first sustained capacity deficit to occur after the
end of the Lancaster PPA in October 2026, which compounds the expected loss of Colstrip
beginning in January of 2026 under the 2021 IRP Base Case described above. The format of the
submitted PRiSM model does not break this down into the monthly level, but the end of the
Lancaster PPA will put the Company into a capacity deficit situation.
AVISTA CORPORATION
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CASE NO:
REQUESTER:
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REQUEST NO.:
IDAHO
AI/IJ-E-22-02
Staff
Production Request
Staffi007
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHoNE: (s09) 49s-8s1s
REQUEST:
Page 4 of the Application states that each scenario does not change the year of the annual deficit.
However, Table I shows two first deficit years of 2026 and2027. Please reconcile what is stated in
the Application versus what is reflected in Table 1.
RESPONSE:
As explained on page 4 before Table l, the first full deficit year is 2027 in the IRP Base Case as
well as all three Colstrip end date scenarios shown in the table. As discussed in StaflPR-006 and
in the filing, there is not a full year deficit wrtil2027. The PRiSM model used for the202l IRP did
not include monthly capacity, but the Company is confident that the first monthly deficit in the
202 I IRP Base Case is expected to occur on Novemb er 1 ,2026 when the end of the Lancaster PPA
compounds the expected loss of Colstrip in January 2026. This would be much cleaner to show
and easier to explain if the Lancaster PPA ended with the calendar year, but the PPA reflects an
end date of October 31,2026.
AVISTA CORPORATION
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REQUESTER:
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REQUEST NO.:
IDAHO
AI/IJ-E-22-02
Staff
Production Request
Staff-008
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHoNE: (509) 49s-8s15
REQUEST:
Please define "Colstip Losses Adjustnents" and explain why this amount lasts for the entire
planning horizon and explain how the amount is determined.
RESPONSE:
Avista's load forecast includes ffansmission losses including those related to Colstrip generation,
once Colstrip retires, Avista will no longer have these losses and therefore loads are lower.
AVISTA CORPORATION
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JURISDICTION: IDAHO
CASE NO: AYU-E-22-02
REQUESTER: StaffTYPE: Production Request
REQUEST NO.: Staff-009
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHONE: [phone]
REQUEST:
Please define "Embedded EE (added back)' and "Selected EE.u What is the difference between the
two? How is each determined? Why does the Company add back Embedded EE to the Baseline
Load Forecast to derive "Load Forecast w/o EE", and then adjust it with Selected EE?
RESPONSE:
Avista's load forecast is intended to include energy efficiency and in order to estimate which
specific energy efficiency programs are cost effective, the Company removes energy efficiency
(increase loads). The amount of load added back is the "Embedded EE' from the load forecast.
The "selected EE" is the amount of energy efficiency that is chosen in the Preferred Resource
Strategy and reduces the load forecast back down to the amount of load forecasted. Due to this
being an iterative process, the two values do not perfectly match but are intended to be similar.
AYISTA CORPORATION
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ruRISDICTION: IDAHO
CASE NO: AYU-E-22-02
REQUESTER: StaffTYPE: Production Request
REQUEST NO.: Staff-Ol0
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHoNE: (s09) 49s-8s1s
REQUEST:
Please answer the following regarding the planning margin.
a. Please define planning margin and explain its specific purpose.
b. Please explain why resources used to meet the planning margin requirements are kept separate
from the resources used to meet operating reserves, regulation reserves, and frequency response
requirements. In other words, why does the planning margin not already include operating
reseles, regulation reserves, and frequency response requirernents. In the explanation, please
provide the reasons why the resources used for these reserves and the resources used for the
planning margin cannot be shared.
RESPONSE:
a. As detailed on page 7-1 ofthe 2021 IRP, the planning margin is used to accommodate situations
when load exceeds and/or resource output falls below expectations due to changes in weather,
forced outages, poor water conditions, market availability, or other unplanned events.
b. Avista does not include operating reseryes, regulation reserves, and frequency response
requirements as part of the planning reserve as they are known requirements the utility must plan
to hold, whereas the planning margin is a capacity risk adjustment that is estimated based on the
risk of lower power supply availability and increase load due to weather.
AVISTA CORPORATION
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JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-22-02
Staff
Production Request
Staft-0lI
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHONE: [phone]s
RBQUEST:
The format and categories included in the L&R in Case No. AW-E-20-I I are different than in
this case. Please answer the following questions.
a. What does Baseline Load Forecast include? Does it include Peak Native Load, Net Clearwater
Load, Pend Oreille Load, Other Load in Balancing Area, Power Deal Sales, and Capacity Services
listed in Case No. AW-E-20-ll? Please explain.
b. In Case No. AW-E-z}-ll, the sum of Pend Oreille Load and Other Load in Balancing Area is
equal to Net Borderline In. However, Net Borderline In is removed in this case. Does it mean Pend
Oreille Load and Other Load in Balancing Area are not included in the Baseline Load Forecast?
Please explain.
c. In Case No. AW-E-20-11, Operating Reserves are calculated as the sum of 3 percent of
generation and 3 percent of load, where the load includes Peak Native Load, Net Clearwater Load,
Pend Oreille Load, and Other Load in Balancing Area, while generation is calculated as the load
plus Power Deal Sales minus Power Deal Purchases and Net Borderline In. Please answer the
following:
l. Does the Company use the same method to calculate Operating Reserves
in this case?
2. If so, why are Power Deal Sales and Capacity Services not considered as part of the
load?
3. Why is generation calculated as the load plus Power Deal Sales minus Power Deal
Purchases and Net Borderline In?
4. If the Company uses a different method to calculate Operating Reserves in this case,
please provide a comparison between the two methods and explain why the two methods
are mathernatically equivalent.
5. If not equivalent, please explain the difterence and why the Company changed its
method.
d. What is the amount of "Regulation" in the L&R? Please explain how the amount is determined.
e. In Case No. AVU-E -20-ll , planning margin is calculated based on the sum of Peak Native Load
and Net Clearwater Load. Has the calculation method changed in this case? If so, please describe
and explain the reasons for the change.
f. Is "Power Deal Purchases" in Case No. AVU-E-20-11 the same as 'PURPA Contracts" in this
case?
RESPONSE:
a) The Baseline Load Forecast is the native load forecast and includes Clearwater Paper
loads. It does not include Pend Oreille Load, Other Load in Balancing Area, Power Deal
Sales, and Capacity Services.
b) Borderline loads are not included in the IRP, but their effect to reserves is included in the
"reserves + regulation" line item. These loads are only included in the traditional L&R
within Case No. AVU-E-20-11 to estimate reserye requirements.
c) 1) Avista uses the same methodology from Case No. AVU-E -20-ll to estimate "rese,rves *
regulation", the full calculation was not included within the PRiSM model to reduce the
size of the spreadsheet.
2) Power Deal sales and Capacity Services are included in the "Long Term Sales" line
item.
3) Load plus Power Deal Sales minus Power Deal Purchases and Net Borderline In is the
total utility obligation that we must generate.
4) See part b.
s) N/A.
d) The amount of the "Regulation" in the L&R is 16 MW, this is the same amount used in
other L&R calculations and is estimated by the average difference between the average
load and the instantaneous maximum load during peak hours.
e) Avista's methodology has not changed.
D Power Deal Purchases include both PURPA and other contracts.
AYISTA CORPORATION
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ruRISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AYU-E-22-02
Staff
Production Request
Staff-O12
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHONE: [phone]
REQUEST:
What does "Long Term Sales" represent and include? Why does it only last wrtil2023?
RESPONSE:
Long Term Sales are wholesale sales into the electric market for periods of one year or longer.
There are only sales listed through 2023 because that is the end of our current long-term sale
contract. Avista may have one additional long-term sale totaling I MW if Colstrip remains on-line
to support water pumping at the site.
AVISTA CORPORATION
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CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AI/[.J-E-22-02
Staff
Production Request
Staffi013
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Enerry Resources
TELEPHONE: [phone]
REQUEST:
Why is Adams Nielson Solar zero MW in winter?
RESPONSE:
Adams Nielson Solar is listed as zero capacity in the winter because the expected generation
during the peak load hour is zero due to darkness.
AVISTA CORPORATION
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ruRISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AYU-E-22-02
Staff
Production Request
Staff-014
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHONE: [phone]s15
REQUEST:
Why does Kettle Falls CT's contribution to winter peak only last until 2023, while its contribution
to summer peak lasts for the entire planning horizon?
RESPONSE:
Avista does not assume that the Kettle Falls CT can contribute to winter peak after winter 2023
because the CT can be limited in the winter when the natural gas pipeline serving the plant is
capacity constrained. The CT is not available to provide capacity when temperatures fall below
zero. This is stated on page 4-6 of the 2021 IRP and in footnote 7 on the same page.
AVISTA CORPORATION
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ruRISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-22-02
Staff
Production Request
Staff-0l5
DATE PREPARED: 0410112022MTNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHONE: (s09) 49s-8s15
REQUEST:
What does "Northeast A&B" represent?
RESPONSE:
Northeast A&B are the designations for the two identical aero-derivative simple-cycle combustion
turbine units that make up the Northeast project
AYTSTA CORPORATION
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JURISDICTION: IDAHO
CASE NO: AVU-E-22-02
REQUESTER: StatrTYPE: Production Request
REQUEST NO.: Statr-016
DATE PREPARED: 0410712022WTINESS: N/A
RESPONDER: John Lyons
DEPARIMENT: Energy Resources
TELEPHONE: [phone]
REQIJEST:
Please define "Winter Peaku in context to determining the deficit date.
RESPONSB:
Tho winter peak is the highest expected peak load in January.
AVISTA CORPORATION
RESPONSE TO REQIIEST FOR INFORMATTON
JURISDICTION: IDAHOCASENO: AW-E-22-02
REQITESTER: StaffTYPE: Production Roquest
REQUESTNO.: Staff-017
DATE PREPARED: 0410112022WTINESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Enerry Resources
TELEPHONE: [phone]s1s
REQUEST:
Please define 'Summer Peakn in context to determining the deficit date.
RESPONSE:
Sumnerpeak refers to the highest expeoted peak load occurring in August.
AVISTA CORPORATION
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JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AYU-E-22-02
Staff
Production Request
Staff-O18
DATE PREPARED: 0410112022WITNESS: N/A
RESPONDER: John Lyons
DEPARTMENT: Energy Resources
TELEPHONE: [phone]
REQUEST:
Page 4 of the Application states that the PRiSM model does not have the capability to show the
month of the deficiency. How does the Company plan to develop IRP-based avoided cost rates,
which use higher-resolution data (i.e. monthly data and/or hourly data)?
RESPONSE:
T"be 2023IRP will identiff the month of the deficiency. The PRiSM model is in the process of
being updated so that it can identify the month of the deficiency.