20190130Petition.pdf

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Avista Corp.
l4l I East Mission P.O.Box3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170 Av rr.- 6 - ,g-o /
January 29,2019
Diane Hanian, Secretary
Idaho Public Utilities Commission
Statehouse Mail
W. 472 Washington Street
Boise, Idaho 83720
RE: Petition for an Extension to File its 2019 Electric Integrated Resource Plan
Dear Ms. Hanian:
Attached for filing is an original and seven (7) copies of Avista Corporation, doing business as
Avista Utilities ("Avista" or "Company") Petition for an Extension to File its 2019 Electric
Integrated Resource Plan (IRP).
If you have any questions regarding this filing, please contact James Gall at 509-495-2189 or
John Lyons at 509-495-8515
S
Linda
Sr. Manager, Regulatory Policy
Avista Utilities
509-49s-4975
I inda. gervai s@avi stacorp. com
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DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY AND GOVERNMENTAL AFFAfRS
AVISTA CORPORATION
1-41-I E. MISSION AVENUE
P.O. BOX 3727
SPOI(ANE, WASHINGTON 99220
PHONE: [phone]-G
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l9 I. IMTRODUCTION
Avista Corporation, doing business as Avist,a Utilities
2l (hereinafter Avista or Company), dt L[1-1- East Mission
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
AVISTA CORPORATION FOR AN
EXTENSION TO FILE ITS 201.9
ELECTRIC INTEGRATED RESOURCE PLAN
CASE NO. AVU-E-19- OI
PETITION OF
AVISTA CORPORATION
Avenue, Spokane, Washington, respectfully petitions t.he
Idaho Public Utilities Commission (Commission) to j-ssue an
order authorizing a six-month extension of time for filing
its 20]-9 Electric Integrated Resource Plan (IRP).
The Company requests that this filing be processed
under the Commission's Modified Procedure rules through the
use of written comment.s.
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Petition of Avista Corporation
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Communications j-n reference to this Application should
be addressed to:
David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
Avista Corporation
P.O. Box 3727
MSC-27
1-41-L E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
David. Meyer@avistacorp . com
Linda M. Gervais
Senior Manager, Regulatory Policy
Avista Util-ities
P.O. Box 3727
MSC-27
141,1, E. Mission Ave
Spokane, WA 99220-3127
Phone: [phone]
Linda . Gervai s@avi s tac . com
II. BACKGROT'ND
The Company submits the IRP to the Commission every two
years as outlined in Case No. U-1500-165, Order No. 22299.
Avista's next IRP is due to be filed with the Commission on
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28 or before August 31, 20L9. The IRP is a methodology for
29 identifying and evaluating various resource options and is
30 a process to establish a plan of action for resource
3l dec j-sions. Avista uses AURORA*mp for electrj-c market price
32 forecastJ-ng, resource val-uation and for conducting Monte-
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Petition of Avista Corporation
I Carlo style risk analyses of t,he electric market p1ace. This
2 model fills future capacity and energy (physical/renewable)
3 deficits using an efficient frontier approach to eval-uate
4 quantitative portfolio risk versus portfolio cost while
5 accounting for environmental laws and regulations.
6 Avista uses a public process to solicit technical-
7 expertise and feedback throughout the development of the fRP
8 through a series of Technical Advisory Committ.ee (TAC)
9 meetings.
l0 For the reasons stat.ed herein, Avista requests a six-
1l month extension to submit the Company's 201-9 Electric IRP to
12 provide enough time for the conclusion of various state
l3 leglslative sessions so that Avista can integrate any
14 changed regulations that may impact its fRP modellng and
15 assumptions.
16 III. SUPPoRT FoR EXTENSIoN
17 There are currently numerous legislative proposals in
18 the States of Washington, Montana, and Oregon that will have
19 major impacts on the regional electric market-most notably,
20 Washington's Senate Bill 5116, the "1OO? Clean Energy" bi11.
21 Washington's Senate Bill- 5115 wilI, if adopted, require the
22 elimination of coal as a source of generat.ion serving
23 Washington customers by 2025, 80? carbon-free energy by 2030
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Petition of Avista Corporatj-on
1 and l-00? carbon free energy serving Washington customers by
2 2045. In addition to Senat.e Bil-l- 5116, House Bill 1-l-13, wou]d,
3 if approved, increase the Washington State greenhouse gas
4 targets to meet the Paris Climate Accord goa1s. House Bill
5 1110 may impact our industry through increased electrification
6 of transportation, which could aLso impact the regional
7 electric market. A comprehensive cap and trade proposal is
8 also expected to be introduced in Washington soon.
9 Pot.ential legislation in Montana and Oregon could also
10 impact the regional electric market. Montana House Bill 203
11 the Montana Energy Security Act - could allow Montana to
12 issue half a billion dollars of bonds to buy Colstrip. Energy
13 -related bil1s in Oregon (Cap and Trade) may impact Avista's
14 Coyote Springs 2 Generating Facility.
15 with all of these legislative uncertainties, IRP
16 modeling at this time would be premature. The impact of such
17 legislation coul-d fundamentally change the regional (and
18 Avista's) resource mi-x, and therefore have an impact on
19 Avista's Idaho customers. Thus, to the extent any of the
20 potential- legislation is enacted, new models woul-d need to be
2l run to account for the actual- impact of such legislation.
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Petition of Avista Corporation
1 tn addit.ion, Avista discussed the idea to extend the
2 filing date by six-months with Commission Staff, they did not.
3 object to our request.
4 IV. CONCLUSION
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WHEREFORE, Avista respect.fully requests the
Commission issue its order approving a six-month extension
of the Company's 20L9 Electric IRP, with this Petition
being processed under Modified Procedure through the use
of writt.en comments.
Dated at Spokane, Washington this fA day of
ll 20T9.
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AVISTA CORPORATION
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V ]-CC sident and Chief Counsel for
Regulatory and Governmental Affairs
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Petition of Avista Corporation