20071121notice_of_filing_order_no_30464.pdf

Office of the Secretary
Service Date
November 21 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE FILING BY
VISTA CORPORATION DBA A VISTA
UTILITIES OF ITS 2007 INTEGRA TED
RESOURCE PLAN (IRP)NOTICE OF FILING
CASE NO. A VU-07-
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 30464
On August 30, 2007, A vista Corporation dba A vista Utilities filed its 2007 Integrated
Resource Plan ("IRP" or "Plan ) with the Commission pursuant to the biennial filing
requirement mandated in Order No. 22299, as modified in Order No. 30262. The IRP describes
the Company s growing customer base, load growth, supply-side resources, demand-side
management and risk analyses. Additionally, the IRP document and related appendices contain
information regarding available resource options, planning period forecasts, potential resource
portfolios, a ten-year resource plan, and a near-term action plan.
Avista serves approximately 115 000 retail electric and gas customers in northern
Idaho. Avista filed its last IRP with the Commission on September 1 , 2005. In this Notice the
Commission establishes a deadline for written comment regarding A vista s current IRP filing.
NOTICE OF IRP FILING
YOU ARE HEREBY NOTIFIED that Avista s 2007 IRP was prepared with
assistance from its Technical Advisory Committee ("T AC"). Members of the T AC included
customers, Commission Staff, consumer advocates, academics, utility peers, government
agencies and other interested parties. The Company sponsored six full days of T AC meetings
supplemented by phone and e-mail contact, in preparation of their development of this Plan.
During this process, each T AC member was provided with a draft of the Company s Preferred
Resource Strategy ("PRS") and asked to render an assessment of the modeling assumptions
processes and results. The PRS consists of renewable resources, conservation, efficiency
upgrades at existing facilities and new gas-fired generation.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30464
YOU ARE FURTHER NOTIFIED that Avista initiated a Western Interconnect-wide
study in order to evaluate the impact of regional markets on the Company. Avista then
submitted the data compiled from the various regional markets to a "monte-carlo style analysis
(a random sampling method used to evaluate data) and the results were used to estimate the Mid-
Columbia electricity market.
YOU ARE FURTHER NOTIFIED that Avista estimates that it will expenence
system-wide annual energy deficits beginning in 2011 , with loads exceeding resource
capabilities by 83 annual megawatts ("aMW") and rising to 272 aMW in 2017 and to 513 aMW
in 2027. Avista attributes the energy resource deficits to an estimated 2.3% energy and capacity
load growth through 2017 and the expiration of certain long-term supply contracts.
YOU ARE FURTHER NOTIFIED that Avista s PRS intends to meet the increased
energy resource demand by adding the following resources: (1) 350 MW of combined cycle
combustion turbine ("CCCT") gas resources, primarily from the power purchase contract for the
Lancaster Generating Plant beginning in 2010; (2) 300 MW of wind resources; (3) 35 MWof
other renewable resources; and (4) 87 MW of conservation measures between 2007 and 2017.
The Company states that the acquisition of additional wind resources and other renewable
resources was hampered by the dramatic increase in the cost of wind resources since its 2005
IRP filing, as well as the increased demand for renewable resources resulting from recent
legislation in Washington and Oregon requiring the use of renewable resources.
YOU ARE FURTHER NOTIFIED that the acquisition of conservation measures is
forecast to rise approximately 25% over the Company s 2005 IRP and by more than 85% from
its 2003 IRP.
YOU ARE FURTHER NOTIFIED that Avista has elected to forego future coal-fired
generation for several reasons including recent legislation effectively barring its use in the state
of Washington; predicted federal carbon limiting legislation; and higher costs associated with
coal-fired generation. As a result, the Company s PRS substitutes fixed price natural gas
resources for coal-based resources.
YOU ARE FURTHER NOTIFIED that Avista included carbon emissions in its
Base Case" cost estimates for the first time in its 2007 IRP. The Company claims that it has
one of the "smallest carbon footprints" of the nation s "top 100 producers of energy resources.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30464
YOU ARE FURTHER NOTIFIED that Avista s IRP contains the Company s 2007
Action Plan as well as its assessment regarding its progress toward implementing its 2005 IRP
Action Plan. The 2007 Action Plan contains activities and studies to be developed and studied in
the Company s 2009 IRP. It includes specific items in four areas: Renewable energy and
emissions, modeling enhancements, transmission modeling and research and conservation.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the
Company s filing in Case No. A VU-07-08 and finds that the public interest may not require a
formal hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201
through 204 of the Idaho Public Utilities Commission s Rules of Procedure, IDAP
31.01.01.201 through .204. The Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position
concerning Avista s 2007 IRP may file a written comment in support or opposition with the
Commission no later than January 17, 2008. The comment must contain a statement of
reasons supporting the comment. Persons desiring a hearing must specifically request a hearing
in their written comments. Written comments concerning this filing should be mailed to the
Commission and A vista at the addresses reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
Clint Kalich, Manager
Resource Planning & Analysis
A vista Corporation
1411 E. Mission
PO Box 3727
Spokane, WA 99220-3727
E-mail: clintkalich~avistacorp.com
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 at
www.puc.idaho.gov by clicking on "File Room" and "Electric Cases " or it can be viewed during
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30464
regular business hours at the Idaho Public Utilities Commission, 472 West Washington Street
Boise, Idaho and Avista s Headquarters, 1411 East Mission, Spokane, Washington.
YOU ARE FURTHER NOTIFIED that the Idaho Public Utilities Commission has
jurisdiction over Avista, its filing and the issues pertaining to this case pursuant to Title 61 of the
Idaho Code and specifically Idaho Code ~ 61-401.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to 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
Avista s IRP filing. Any person interested in submitting written comments in this matter must
do so no later than January 17 2008.
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this ;21
$1"-
day of November 2007.
OWL
MARSHA H. SMITH, COMMISSIONER
~ /
-;;;zf5..JI EM TON, OMMISSIONER
ATTEST:
li t(t~
llimission Secretary
O:A VU-07-
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30464