20131125_4232.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF

FROM: KRISTINE SASSER
DEPUTY ATTORNEY GENERAL

DATE: NOVEMBER 15, 2013

SUBJECT: AVISTA’S APPLICATION FOR APPROVAL OF CAPACITY
DEFICIENCY, CASE NO. AVU-E-13-10

In Order No. 32697, the Commission directed that a case be initiated outside of each
utility’s Integrated Resource Plan (IRP) filing for the establishment of the capacity deficiency
period to be utilized in the utility’s SAR methodology. On October 16, 2013, Avista filed its
updated capacity deficiency periods to be utilized in Avista’s SAR avoided cost methodology.
THE APPLICATION
Avista’s filing is based on an update to the Company’s 2013 Integrated Resource
Plan (IRP) Loads and Resources, taking into account a new load forecast and new long-term
contracts. Within its 2013 Electric IRP, Avista had identified a long-term capacity deficit
beginning in January 2020 (summer deficits in 2024 and energy deficits in 2026). Avista
reported that while short-term deficits occur before these dates, those deficits would be met with
short-term market purchases as described in its 2013 IRP.
Based on updated load forecasts, the Company’s net positions changed. Avista states
that winter deficits continue to begin in January 2020. However, summer deficits begin in 2023
and energy deficits begin in 2027.
STAFF RECOMMENDATION
Staff has reviewed Avista’s report and recommends that the matter be processed by
Modified Procedure. Staff further recommends that the Commission allow parties who claim a
direct and substantial interest to intervene. After the deadline for intervention has passed, Staff
will convene an informal conference with the parties and recommend further procedure to the
Commission.
DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application setting a 14-day deadline
for intervention?

M:AVU-E-13-10_ks