20191015Extended Letter.pdf

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Avista Corp.
t4l I East Mission P.O.Box3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
October 14,2019
VIA: Electrontc Mail
Diane Hanian, Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714
RE: CaseNo.AVU-E-I9-01
Dear Ms. Hanian:
Order No. 34312 in Case No. AW-E-19-01 extended the due date for Avista
Corporation's, dba Avista Utilities' ("Avista or "the Company") 2019 electric Integrated Resource
Plan (IRP) from August 30, 2019 to February 29,2020. This extension has several implications
for other filings including the capacity deficiency amount report due on October 15,2019, and the
subsequent filing of "an updated capacity deficiency amount and period for determining SAR
avoided capacity cost after acknowledgment of the 2019 IRP." In response to Commission Staffs
recommendation number four (a) in Case No. AVU-E-19-01, and with recent discussions with
Commission Staff, Avista is filing this update regarding the capacity deficiency amount.
The 2017 IRP indicated a capacity deficiency beginning with the expiration of the Power
Purchase Agreement (PPA) with the Lancaster plant in October 2026 (Page 1-1, 2017 Electdc
IRP). The IRP currently in development still anticipates a capacity deficiency beginning in2026;
however, this may occur earlier in 2026 depending on expectations for the continued operations
of Colstrip Units 3 and 4. Colstrip can no longer serve Washington customer loads after 2025,
however may still be available to serve Idaho customer loads.
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More details will be provided in the IRP when it is published in February 2020. Avista will
also file an updated capacity deficiency report after acknowledgment of the 2020 IRP to establish
a new deficiency date for SAR avoided capacity cost.
Please direct any questions regarding this filing to John Lyons at 509-495-8515.
Sincerely,
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Linda Gervais
Sr. Manager, Regulatory Policy & Strategy
Avista Utilities
509-495-4975
I i nda. eervais@av istacorp.com
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