20071029Decision memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER SMITH
COMMISSIONER REDFORD
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:NEIL PRICE
DATE:OCTOBER 23, 2007
SUBJECT:A VISTA'S 2007 ELECTRIC INTEGRATED RESOURCE PLAN (IRP);
CASE NO. A VU-07-
On August 30, 2007 , Avista Corporation dba Avista Utilities (A vista) filed its 2007
Integrated Resource Plan (IRP) with the Commission pursuant to the biennial filing requirement
mandated in Order No. 22299, as modified in Order No. 30262.
Avista is based in Spokane, Washington and serves approximately 115 000 retail
energy customers in northern Idaho. The executive summary portion of the Company s 2007
IRP includes the following highlights:
The Company has elected to forego future "coal-fired generation due to
changing economics and recent legislation effectively barring its use" in
the state of Washington. IRP Executive Summary, at i. Fixed price
natural gas resources will replace coal-based resources.
The Company included carbon emissions in its "Base Case cost
estimates for the first time in its 2007 IRP. Id. at viii. The Company
claims that it has one of the "smallest carbon footprints" out of the
nation s "top 100 producers of energy resources.Id.
The Company estimates system-wide annual energy deficits beginning in
2011
, "
with loads exceeding resource capabilities by 83 aMW" and rising
to 272 aMW in 2017 and to 513 aMW in 2027.Id.
The energy resource deficits are attributable to an estimated 2.3 percent
energy and capacity load growth through 2017 and the expiration of
certain long-term (supply) contracts.Id.
DECISION MEMORANDUM
. "
Conservation acquisition is forecast to rise approximately 25 percent"
over the Company s 2005 IRP "and by more than 85 percent from the
2003 IRP.Id. at v.
A Western Interconnect-wide study was performed to understand the
impact of regional markets" on A vista. Id. at ii. The Company submitted
the data compiled from the various regional markets to a "monte-carlo
style analysis" and "the results were used to estimate the Mid-Columbia
electricity market." Id.
The Company s Preferred Resource Strategy (PRS) includes the addition
of 350 MW of CCCT (Combined Cycle Combustion Turbine); 300 MW
of wind; 35 MW of other renewable resources; and 87 MW of
conservation between 2007 and 2017. Id.Table 2, at vi.
STAFF RECOMMENDATION
The Staff has reviewed Avista s proposed IRP and recommends that a Notice of
Filing be prepared and that the case be processed under Modified Procedure. Staff recommends
a 60-day comment period.
COMMISSION DECISION
Does the Commission wish to issue a notice of the Company s IRP filing and
Modified Procedure? Does the Commission wish to establish a 60-day comment period?
JL/J
Neil P
M:A VU-O7-
DECISION MEMORANDUM