20050927Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:SEPTEMBER 27, 2005
SUBJECT:A VISTA'S 2005 ELECTRIC INTEGRATED RESOURCE PLAN
CASE NO. AVU-05-
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 (now IRP or Integrated Resource Plan) describing the
status of the Company s electric resource planning. According to the IRP's Executive Summary
the highlights of the IRP are as follows:
Since the 2003 IRP , the Company has added 35 MW of wind generation
140 MW of gas-fired generation and 8 MW of conservation to its
portfolio.
Electricity sales are forecast to grow 2.1 percent annually through 2026
which results in the below stated deficits.
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 2016 and 901 MW by the
end of the study in 2026.
. A Western Interconnect-wide study was performed to understand the
impact of regional markets on A vista. The Company modeled the entire
Western Interconnect market, taking into account systems outside of the
Northwest, to quantify impacts upon A vista.
DECISION MEMORANDUM
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.
Acquiring additional transmission is critical to Company plans.
The Company states that the Preferred Resource Strategy (PRS) strikes a
reasonable balance between keeping average costs and variation in year-
to-year costs low.
The 2016 PRS includes 400 MW of wind, 250 MW of coal, 80 MW of
biomass, 52 MW of plant upgrades, and 69 MW of conservation.
Over half of future energy needs are met with renewables, plant upgrades
and conservation.
ST AFF RECOMMENDATION
Staff recommends that the Company s IRP filing be noticed and that a comment
period be established. Staff recommends a comment deadline of November 18 2005.
COMMISSION DECISION
Does the Commission wish to issue a Notice of the Company s IRP Application and
establish a comment period ending November 18, 2005?
Donovan E. Walker
M:A VUEO508 dw
DECISION MEMORANDUM