20190416final_order_no_34312.pdf

Office of the Secretary
Service Date
April 16,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA'S PETITION )CASE NO.AVU-E-19-01
FOR AN EXTENSION TO FILE ITS 2019 )ELECTRIC INTEGRATED RESOURCE )
PLAN )ORDER NO.34312
On January 30,2019,Avista Corporation ("Company")filed a Petition seeking a six-
month extension of the August 31,2019 filing date for the Company's 2019 Integrated Resource
Plan ("IRP").On February 22,2019,the Commission issued a Notice of Petition and Notice of
Modified Procedure setting comment and reply deadlines.Order No.34250.Commission Staff
and the Idaho Conservation League ("ICL")filed the only comments,and supported the Petition.
The Company did not reply.
Having reviewed the record,the Commission now issues this Order approving the
Company's Petition.
BACKGROUND
The Company must submit an IRP to the Commission every two years.Order No.
22299."An IRP is a status report on the utility's ongoing,changing plans to adequately and
reliablyserve its customers at the lowest system cost and least risk over the next 20 years."Order
No.33463.The IRP is a "freeze frame"look at the utility's fluid resource planning process.See
Order No.22299.The Company develops its IRP through a public process in consultation with
its Technical Advisory Committee ("TAC").The TAC consists of more than 100 invited
participants,including customers,Commission Staff,the Northwest Power and Conservation
Council,consumer advocates,academics,environmental groups,utility peers,government
agencies,and other interested parties.See Order No.33971.In developing its IRP,the Company
uses a software program called AURORAxmp for electric market price forecasting,resource
valuation,risk analyses of the electric market place,and selecting efficient portfolio options while
accounting for environmental laws and regulations.See Application at 2-3.
THE PETITION
The Company requests a six-month extension of its August 31,2019 IRP filing
deadline.The Company states there are numerous potentiallysignificant legislative proposals in
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Washington,Montana,and Oregon that if passed,would have significant impact on the regional
electric market.The Company points to proposed legislation in Washington,particularly S.B.
5116 among others,which would require an elimination of coal generation sources serving
Washington customers by 2025,80%carbon-free energy serving Washington customers by 2030,
and 100%carbon-free energy serving Washington customers by 2045.The Company states that
Oregon is considering a cap and trade bill that the Company believes may impact its Coyote
Springs 2 generatingfacility.Meanwhile,the Company states that Montana House Bill 203 would
allow Montana to issue half a billion dollars of bonds to buy Colstrip.In sum,the Company states
it would be premature to do IRP model runs given the high level of legislative uncertainty.
Therefore,the Company requests a deadline extension in order to run its models with inputs that
reflect the potentiallychanged legislative landscape.
COMMENTS
Commission Staff and Idaho Conservation League filed comments in support of the
Company's Petition to delay its 2019 filing date.
I.Commission Staff
Staff believes the six-month extension is appropriate because of the legislative
uncertainty and the related impact on the Company's modeling.Staff identified other regulatory
areas that would be impacted by a delay in filingthe Company's 2019 IRP-such as avoided cost
updates and capacity deficiency dates under the Public Utility Regulatory Policies Act and setting
an energy efficiency savings target for the Company's 2020 Energy Efficiency Annual
Conservation Plan-and concluded that the Company and Commission Staff could sufficiently
mitigate each impact.
II.Idaho Conservation League.
ICL supports the Company's Petition to delay the submission of its IRP and offers
uncertainty about the continued viabilityof Colstrip,of which Avista owns a portion of Units 3
and 4,as additional rationale for why a delay is appropriate.ICL states that Colstrip owners have
an exclusive agreement with the Westmoreland Coal Company ("Westmoreland")for the supply
of coal to Colstrip.Westmoreland filed for Chapter 11 bankruptcy in October 2018.ICL also
notes that Colstrip has had problems meeting air qualityrequirements and was forced to shut down
Units 3 and 4 during summer 2018.ICL also points to remediation of leaking coal ash ponds at
Colstrip as another source of liability and costs.ICL believes a six-month extension will allow
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the Company time to better analyze its options regarding Colstrip and give the Company time to
incorporate any new legislation in its model runs.
COMMISSION FINDINGS AND DECISION
The Company is an electrical corporation and public utility as defined in Idaho Code
§§61-119 and -129.The Commission has jurisdiction over the Company and the issues in this
case under Title 61 of the Idaho Code,includingIdaho Code §61-501.
The Commission has reviewed the Company's Petition and the comments of
Commission Staff and ICL.Based on our review of the record,we find it reasonable to approve
the Company's request for a six-month extension of its IRP filing deadline.We believe the
additional time will provide the Company better opportunityto analyze its preferred resource
portfolio given the relevant regulatory landscape going forward.We continue to recognize that
the IRP is an ongoing process and there will likelynever be a time free from legislative uncertainty
in the energy sector.However,we find the magnitude of the potential impacts of the proposed
legislation and the timing of the potential legislation in relation to the Company's model runs to
be material considerations in this case.
ORDER
IT IS HEREBY ORDERED that the Company's deadline for submitting its 2019 IRP
is extended for six months,from August 31,2019,until February 29,2020.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order with regard to any
matter decided in this Order.Within seven (7)days after any person has petitioned for
reconsideration,any other person may cross-petition for reconsideration.See Idaho Code §61-
626.
ORDER NO.34312 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2019.
PAUL KJ A PRESIDENT
KRI INE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
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