20170525Avista Response Letter.pdf

Avista Corp.
l4l I East Mission P.O.Box3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
VIA: Electronic Mail
:--- L
1l*i*-May 25,2017
Diane Hanian, Commission Secretary
Idaho Public Utilities Commission
P O Box 83720
Boise, lD 83720-0074
RE: CASE NO. AVU-E-17-02
UPDATE TO PUBLISHED AVOIDED COST RATES TO REFLECT AN UPDATED
NATURAL GAS PRICE FORECAST OF THE U.S. ENERGY INFORMATION
ADMINISTRATION (ETA)
Dear Ms. Hanian:
Avista Corporation, dba Avista Utilities (Avista or Company), received the letter from the Idaho
Public Utilities Commission (IPUC) dated May 16,2017 notifying the Company of the annual
update to published avoided cost rates to reflect an updated natural gas price forecast of the U.S.
Energy Information Administration (EIA).
ln its review of the model creating the avoided cost rates with the updated natural gas price
forecast, the Company identified an issue with certain calculations related to capacity payments
that it believes may not reflect the intent of the Commission. If not corrected, the issue identified
may create problems with future updates and lead to higher capacity payments than warranted for
contract renewals. As such, Avista is interested in discussing our concerns with the model and an
appropriate means for any modifications that may be necessary.
In the meantime, the Company agrees that calculated rates as presented are correct.
Please direct any questions on this matter to Clint Kalich at [phone] or myself at (509)
495-4975.
i--:a
r* d-;
Llt ill
.a?
tr tlrUii\3
Sincerely
/t{ LhnnrGenta,i*
Linda Gervais
Manager, Regulatory Policy
Avista Utilities
I inda. gervais@avi stacorp.com