Avista IRP_sw.doc

DECISION MEMORANDUM

TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
RON LAW
BILL EASTLAKE
LOUANN WESTERFIELD
TONYA CLARK
DON HOWELL
DAVE SCHUNKE
RANDY LOBB
RICK STERLING
WORKING FILE
FROM:
DATE:
JULY 14, 2000 RE: AVISTA CORPORATION
UPDATE TO 1997 ELECTRIC INTEGRATED RESOURCE PLAN (IRP)
DRAFT REQUEST FOR PROPOSALS (RFP)

On July 13, 2000, Avista Corporation dba Avista Utilities—Washington Water Power Division—Idaho (Avista; Company) filed an update to its 1997 Integrated Resource Plan (IRP) and a draft Request For Proposals (RFP) with the Idaho Public Utilities Commission (Commission).
The RFP is an “all source” competitive bid based on the Company’s identified need for 300 megawatts of new electric power starting in 2004. The IRP update describes the Company’s loads and resources, overview of technically available resource options, and demonstrated need for resources.
The Company in its filing states that it will consider any offer of resources including, but not limited to, energy and capacity, energy efficiency, turnkey plans, construction—for Avista—of a generating plant on a site provided by the bidder, and construction by a bidder on a site furnished by Avista. As described in the RFP and IRP update, the Company’s resource need suggests that customers would benefit by a new resource with operational flexibility.
The Company states that it is also examining other options for service provision including expanded use of customer load interruptibility agreements and time of use rates.
Based on informal conversations with Avista, the Commission is apprised that the Company’s intention is to issue its RFP by August 24, 2000, and to file its 2000 electric Integrated Resource Plan later this year, perhaps in September. The Company solicits comments on its July 13 filings from both the Commission, the Staff and the public.
Commission Decision
How does the Commission wish to process the Company’s filing? Staff recommends that the matter be given a formal case number and that the Commission issue a Notice of Filing with an August 11 comment deadline. Does the Commission agree with Staff’s proposed procedure?

vld/M:Avista IRP_sw

DECISION MEMORANDUM 2