20051006notice of filing order no 29887.pdf

Office of the Secretary
Service Date
October 6, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE FILING OF
VISTA UTILITIES' 2005 ELECTRIC
INTEGRATED RESOURCE PLAN
NOTICE OF FILING
CASE NO. A VU-05-
NOTICE OF
COMMENT DEADLINE
ORDER NO. 29887
On September 1 , 2005 , Avista Utilities (Avista, Company) filed its 2005 Electric
Integrated Resource Plan (IRP) with the Idaho Public Utilities Commission (Commission). The
Company s filing is pursuant to Commission Order No. 22299, which requires the Company to
file a biennial resource management report (IRP) describing the status of the Company s electric
resource planning. In this Notice the Commission establishes a review period and written
comment deadline.
OTI CE OF FILING
YOU ARE HEREBY NOTIFIED that Avista s 2005 IRP was developed with the
participation of its Technical Advisory Committee (T AC). T AC members include customers
Commission Staff, consumer advocates, academics, utility peers, government agencies and other
interested parties. The Company sponsored seven T AC meetings, which were held between
October 23 , 2003 and June 23 , 2005. Each meeting focused on specific planning topics
reviewed the status and progress of planning activities, and solicited ongoing input as the IRP
was developed. The agendas and presentations for all of the T AC meetings are located in
Appendices A-C to the Company s Filing.
YOU ARE FURTHER NOTIFIED that Avista predicts its electricity sales to grow
1 percent annually through 2026, growing to approximately 350 000 customers in 2007 and
nearly 485 000 in 2026. Energy deficits begin in 2010 with loads exceeding resource capability
by 40 aMW. Energy deficits rise to 360 aMW in 2016 and 640 aMW in 2026. Capacity deficits
begin in 2009 with the Company being short by 5 MW. Capacity deficits grow to 508 MW in
NOTICE OF FILING
NOTICE OF COMMENT DEADLINE
ORDER NO. 29887
2016 and 901 MW by the end of the study in 2026. The Company requires new generation
resources starting in 2009. The IRP includes a reserve margin of approximately 15 percent.
YOU ARE FURTHER NOTIFIED that Avista s Preferred Resource Strategy (PRS)
contains the Company s forecasted preferred mix of new resources over the IRP time horizon.
The PRS is defined by three generation categories: wind generation, coal-fired generation, and
other small renewables. It also contains upgrades to existing A vista resources and a significant
increase in conservation acquisition from today levels.The PRS does not recommend
additional natural gas-fired generation due to the high level of gas-fired generation already in the
Company s portfolio, the high price of natural gas, and the resource s tendency to introduce
additional volatility into the Company s portfolio. In 2016 the PRS calls for total installed
capacity comprised of 400 MW of wind, 250 MW of coal, and 80 MW of other small
renewables. Resource requirements are 69 MW lower because of conservation and 52 MW
lower because of efficiency upgrades to existing resources. By 2026 total installed capacity
equals 1 332 MW and is comprised of 650 MW of wind, 450 MW of coal, 180 MW of other
renewables and 52 MW of plant efficiency upgrades. Needs are 138 MW lower because of
conservation.
YOU ARE FURTHER NOTIFIED that conservation acquisition is 50 percent higher
than in the 2003 IRP. With the additional funding recommended by the IRP, the Company
expects conservation to lower load growth in its service territory by 6.9 MW per year, totaling
138 MW over 20 years.
YOU ARE FURTHER NOTIFIED that Avista is in the process of implementing a
transmission upgrade plan to add over 100 circuit miles of new 230 kV transmission line to its
system and will later increase the capacity of another 50 miles. A vista is also constructing two
new 230 kV substations and is reconstructing three existing transmission substations. Related
projects at six 230 kV substations are necessary to meet capacity requirements, upgrade
protective relaying systems, and to meet regional and national reliability standards. In total, the
Company will perform work in 11 of its 230 kV substations or 85 percent of its system. Several
of the more significant projects are described more fully in the IRP. Transmission costs to
integrate new resources into Avista s system were estimated in the IRP by the Company
Transmission Department.Transmission costs were reported as estimates based upon
engineering judgment" and are not "construction estimate" quality. As the size of the resource
NOTICE OF FILING
NOTICE OF COMMENT DEADLINE
ORDER NO. 29887
increases, the certainty of the associated cost estimate for the transmission requirements to
integrate it into the system diminishes. The estimated construction costs of new transmission
associated with the integration of new generation varies from $10 million to $1.5 billion
depending on location and project size.
YOU ARE FURTHER NOTIFIED that the Company s IRP contains a review of the
2003 IRP Action Plan including how the Company addressed each item in the 2003 plan. The
IRP also contains the Company s Action Plan for 2005. Progress will be monitored and reported
in the Company s 2007 IRP. The 2005 Action Plan includes specific items in four areas:
renewable energy and emissions, modeling enhancements, transmission modeling and research
and conservation.
NOTICE .OF COMMENT DEADLINE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the
Company s filing in Case No. A VU-05-8 and finds it reasonable to require written comments
concerning Avista s IRP to be filed with the Commission no later than November 18, 2005.
Written comments concerning this filing should be mailed to the Commission and to Avista at
the addresses reflected below.
Street Address For Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
Clint Kalich, Manager
Resource Planning & Power Supply Analysis
A vista Corporation
1411 E. Mission
PO Box 3727
Spokane, W A 99220-3727
E-mail: clintkalich(fYavistacorp.com
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to A vista at the e-mail address listed above.
YOU ARE FURTHER NOTIFIED that Avista s IRP filing can be viewed online at
www.puc.idaho.gov by clicking on "File Room" and "Electric Cases " or it can be viewed during
NOTICE OF FILING
NOTICE OF COMMENT DEADLINE
ORDER NO. 29887
regular business hours at the Idaho Public Utilities Commission, 472 West Washington Street
Boise, Idaho and Avista Corporation, 1411 E. Mission, Spokane, Washington.
YOU ARE FURTHER NOTIFIED that the Idaho Public Utilities Commission has
jurisdiction over A vista Corp., its filing, and the issues involved in this case by virtue of Title
of the Idaho Code and the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that a review and comment period be established for
A vista s IRP filing. Persons interested in submitting written comments regarding this case
should do so no later than November 18, 2005.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
j+J..
day of October 2005.
, PRESIDENT
ATTEST:
O:A VU-05-08 dw
NOTICE OF FILING
NOTICE OF COMMENT DEADLINE
ORDER NO. 29887