HomeMy WebLinkAbout20181102Decision Memo.pdfDECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: NOVEMBER 2, 2018
SUBJECT:ANNUAL COMPLIANCE FILING OF AVISTA TO UPDATE THE LOAD
AND GAS FORECASTS IN THE INCREMENTAL COST INTEGRATED
RESOURCE PLAN AVOIDED COST MODEL AND ESTABLISH ITS
CAPACITY DEFICIENCY PERIOD TO BE USED FOR AVOIDED COST
CALCULATIONS; AVU-E-18-I 1.
On October 25, 2018, Avista Corporation ("Avista" or "Company") filed an
Application proposing updates to factors used in calculating its avoided cost rates under the
Integrated Resource Plan ("lRP") methodology for qualifying facilities under the Public Utility
Regulatory Policies Act of 1978 ("PURPA"). The Company requests its Application be
processed by Modified Procedure.
THE APPLICATION
The Company submits the Application in compliance with Order Nos. 32697 and
32802. The Company is required to annually update its load forecast, natural gas forecast, and
contracts for purchase of power. Order No. 32697 at 22. These annual updates are designed to
keep avoided cost rates and the Company's forecasted capacity deficiency date as accurate as
possible. The Company's proposed load forecast escalates at 0.43 percent annual average
growth rate. Application at 2. The Company's proposed Forward Price Curve for natural gas
was developed using a blend of two national price forecasts. Id. at 3. The Company reports
three long-term PURPA contracts, a PPA, and an exchange agreement that have been signed
since its last update. Id. at 4. The Company requests an Order accepting the updated IRP
methodology components. Id.
DECISION MEMORANDUM I
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, with a three week comment period and a one week reply period.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure that establishes a three week comment period and a one week reply period?
Deputy
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General
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2DECISION MEMORANDUM