20050302Annual ARE Report.pdf

Avista Corp.
1411 East Mission PO Box 3727
Spokane, Washington 99220-3727
Telephone [phone]
Toll Free 800-727-9170
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February 28, 2005
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
Statehouse Mail
W. 472 Washington Street
Boise, Idaho 83720
RE:Annual Report on Alternative Renewable Energy
Dear Ms. Jewell:
Pursuant to Order No. 28948 in Case No. A VU-01-, Avista Utilities provides the
following report on the Company s alternative energy resources offered as options to
customers in 2004 under Schedule 95-0ptional Wind Power Rate. Avista Utilities
voluntary program, marketed as the "Buck-Block" program, for wind resources was
initiated on February 1 , 2002.
Description of the option(s) offered to Avista s customers:
A vista Utilities offers an alternative renewable energy rate in the form of a wind
power option to residential and commercial electric customers in both Washington
and Idaho. Changes were made to the block amount in 2004. Under the old
program, customers were able to voluntarily sign up for 55-kWh blocks of wind
power, for $1.00 each, paid in addition to their regular rates. The new program
offers blocks of 300 kWh for $1.00 each, paid in addition to their regular rates.
Customers may purchase as many blocks as they would like. Customers subscribe
on a monthly basis that can be canceled and re-subscribed at anYtime by either
phone, internet, or bill inserts. A vista Utilities purchases the power and associated
environmental benefits from PPM Energy and the State line Energy Center, located
along the Washington-Oregon border to supply the program. The Company
marketed the program through billing inserts, earned media, local public radio
selected fairs, and print media. Incremental administration and marketing budgets
were approximately $40 000 on a system basis.
Rate of customer participation:
As of December 31 , 2004 on a system basis, there were 2 989 customers
participating in the program, 2 918 residential and 71 commercial. Annual 2004
Annual Report on Alternative Renewable Energy
February 28 , 2005
Page 2
subscriptions totaled 142 504 blocks. The Idaho portion of all components of this
program is 29% based on participation of 859 Idaho customers.
3) Amount of qualified alternative energy resources purchased by customers:
The number of blocks of wind power equates to a subscription of 25 715 125 kWh
for the year.
4) Amount of utility investments in qualified alternative energy resources:
In 2004, Avista Utilities purchased 27 350 000 kWh of wind power from the
Stateline Energy Center.
Please direct questions on this matter to me at [phone] or Chris Drake at (509)
495-8624.
Sincerely,
Bruce Folsom
Manager, Regulatory Compliance