20131206final_order_no_32944.pdf

Office of the Secretary
Service Date
December 6,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA )
CORPORATION’S ANNUAL UPDATE TO )CASE NO.AVU-E-13-11
LOAD AND GAS FORECASTS AND LONG-)
TERM CONTRACTS FOR ITS )
INTEGRATED RESOURCE PLAN AVOIDED )ORDER NO.32944
COST METHODOLOGY.)
Pursuant to the Public Utility Regulatory Policies Act of 1978 (PURPA)and the
implementing regulations of the Federal Energy Regulatory Commission (FERC),the Idaho
Public Utilities Commission (Commission)has approved an Integrated Resource Plan (IRP)
methodology for calculation of avoided cost rates paid to certain PURPA qualifying facilities
(QFs).Avoided cost rates are the purchase price paid to QFs for purchases of QF energy and
capacity.
In Order Nos.32697 and 32802,the Commission determined that the load forecast
and natural gas forecast inputs to the IRP avoided cost methodology should be updated annually
by October 15 of each year.The Commission stated
We find that,in order to maintain the most accurate and up-to-date reflection
of a utility’s true avoided cost,utilities must update fuel price forecasts and
load forecasts annually —between IRP filings....In addition,it is
appropriate to consider long-term contract commitments because of the
potential effect that such commitments have on a utility’s load and resource
balance.We find it reasonable to include long-term contract considerations in
an IRP Methodology calculation at such time as the QF and utility have
entered into a signed contract for the sale and purchase of QF power.We
further find it appropriate to consider PURPA contracts that have terminated
or expired in each utility’s load and resource balance.
OrderNo.32697 at 22.
On October 15,2013,in compliance with Order Nos.32697 and 32802,Avista
Corporation (Avista)submitted its annual updates for fuel prices and load forecasts.The
Company also submitted information regarding new and expiring QF contracts,as well as
changes to its long-term contracts for purchases or sales.
ORDER NO.32944 1
LOAD FORECAST
Avista’s current energy load forecast was developed in July 2013,and its peak load
forecast was prepared in September 2013 using the same methodology used for the 2013 IRP
forecasts.The Company provided a copy of its 20-year peak and average energy forecasts with
its filing.
GAS FORECAST
Avista’s current natural gas price forecast is the same as that used in its 2013 IRP.
The Company provided a copy of its 20-year gas price forecasts with its filing for all hubs the
Company considers in development of its IRP.
CONTRACT TERMINATIONS,EXPIRATIONS AND ADDITIONS
Avista reported one new,very small PURPA contract in the State of Washington.
Avista also reported the renewal of the 6.75 megawatt (MW)Nichols pumping contract at the
Colstrip plant since the submission of its 2013 IRP.
COMPLIANCE WITH ORDER NOS.32697 AND 32802
Staff reviewed the Company’s forecast and contract updates.Staff reported that the
load and gas price forecasts submitted by Avista reflect the Company’s most current estimates
and were prepared consistent with the methods used in the IRP.Staff maintained that the load
and gas price forecasts and the long-term contract changes submitted by the Company comply
with the requirements of Order Nos.32697 and 32802.Staff recommended that the Commission
accept the forecasts and contract changes without further process.
DISCUSSION AND CONCLUSIONS
The Commission has jurisdiction over Avista pursuant to the authority and power
granted it under Title 61 of the Idaho Code and Public Utility Regulatory Policies Act of 1978
(PURPA).The Commission has authority under PURPA and the implementing regulations of
the Federal Energy Regulatory Commission (FERC)to set avoided costs,to order electric
utilities to enter into fixed-term obligations for the purchase of energy from qualified facilities
and to implement FERC rules.
Pursuant to its authority,the Commission has reviewed and considered the filings of
record.We find that Avista’s filing complies with the directives issued by this Commission in
Order Nos.32697 and 32802.Based upon our review of the totality of the updates,we accept
the updated inputs to Avista’s IRP avoided cost calculation for filing.
ORDER NO.32944 2
ORDER
IT IS HEREBY ORDERED that Avista’s annual update to its load and gas price
forecast and long-term contract status for purposes of its IRP avoided cost methodology are
accepted,effective October 15,2013.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (2 1)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §6 1-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of December 2013.
ATTEST:
A A f)
/lb
Jjn D.Jewell()
Commission Secretary
O:AVU-E-13-1 Iks
A
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
PAUL
ORDER NO.32944 3