20190610Kalich Exhibit 7 Schedule 4.pdf

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No.
Line Avista Corp.
Brief Description of Power Supply Adjustment
See Kalich
Workpapers
tt Pcae (P) Idenfiffcd
I N/A
2 Modeled Short - Term Market Purchases - Short-term purchases from the
AURORA Dispatch Simulation Model.
3 Actual ST Market Purchases - Cost of term power physical positions taken for
the proforma period. Expense is set to zero since no fixed-price, short-term,
transactions have been executed for the proforma period.
4 Actual ST Purchases - Financial - Mark-to-market value of term power
financial positions taken for the proforma period. No transactions have been
executed for the pro forma period.
5 Chelan PUD - Rocky Reach/Rock Island Purchase - Expense is based on
contract expiring 12/31 12020.
P1, Confidential
6 Douglas PUD - Wells Purchase - Expense related to contract.P2-P3, Confidential
7 Douglas PUD - Settlement - Contract ended 8l3l/2018, so removed from pro
forma.
8 Priest Rapids Project - expense related to this contract.P4-P5
9 Lancaster Capacity and Energy Payment - contract costs of capital and fixed
O&M payments, plus variable O&M based on the variable O&M rate
multiplied by the MWh of Lancaster generation in the pro forma.
P6-P8, Confidential
10 Lancaster Heat Rate Tracker - contract payment for costs associated with
difference between contractual and actual heat rate efficiency.
P6, Confidential
11 WNP-3 contract expired 4130/2019 and is not included in the pro forma.
t2 Deer Lake - IP&L - Pro forma expense is for power purchased from Inland
Power to serve Avista customers.
13 Small Power - Pro forma costs are based on 5-year average generation and
actual proforma period gqqqll I4t!.
t4 Stimson - This purchase is from the cogeneration plant at Plummer, Idaho. Pro
forma costs are based on 5-year average generation and pro forma period
contract rates.
15 Spokane - Upriver - Pro forma expense is based on a purchase of the net of 5-
year average pumping (at the plant) generation at the pro forma contract rate.
16 Spokane Waste - to - Energy - Pro forma expense is based on 5-year average
generation and the pro forma period contract rate.
P9
17 Non-Monetary - Accruals for imbalance energy associated with our various
g"qbarg" cgntracts. Expense is n to $0 in the pro forma.
18 Ancillary Services - Pro forma expense is $0 because this is an intra-utility
expense; both this and matching revenue in Account 447 have been set to zero
for this case.
19 Palouse Wind - is cost of PPA, equal to PPA price multiplied by the Aurora-
dispatched plant output. Over the 80 water years Aurora selects one actual
wind year from the 2013-2018 record. The Company is proposing to include
Palogse Wind in the pro forma this case.
10, Confidential
Exhibit No. 7
Case No. AVU-E-19-04
C. Kalich, Avista
Schedule 4, Page 1 of5
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Line
No.
Avista Corp.
Brief Description of Power Supply Adjustment
See Kalich
Workpapers
at Pase Plldentified
20 Palouse Feather - costs associated with expected periods where the value of
power is negative due to oversupply conditions and it is less expensive to
reduce output at the plant, and pay the PPA rate rather than pay for production
and resell the power at further cost. Based on 5-year average offeathering
costs.
P10, Confidential
2l Adams Neilson Solar - is cost of PPA, equal to PPA price multiplied by the
expected output of the plant as estimated by the facility.
Pl1, Confidential
))Rattlesnake Flats Wind - is cost of PPA, equal to PPA price multiplied by the
expected output of the plant as estimated by the facility. Delivery begins in
December 2020, and uses forecast volume.
P12-P13,
Confidential
23 Total Account 555
24 N/A
25 N/A
26 Broker Commission Fees - Pro forma expense is associated with purchases and
sales of electricity and natural gas fuel.
27 Natural Gas Fuel Purchases - This is the expense for natural gas purchased but
not consumed for generation. Pro forma expense is $0 because all gas
purchased is assumed to be used for generation, and included in Account 547.
28 Total Account 557
29 N/A
30 N/A
31 Kettle Falls Wood Fuel Cost - Pro forma fuel expense is based on the
generation of the Kettle Falls plant in the AURORA model and the unit cost of
available fuel.
32 Kettle Falls-Start-up Gas - Pro forma expense is for start-up gas at Kettle Falls
and is based on Aurora calculation of start-up costs.
33 Colstrip-Fixed Coal Cost - Pro forma fuel expense is based on fixed costs
under the long-term coal contract.
34 Colstrip - Variable Coal Cost - Pro forma variable fuel cost based on the
generation of the Colstrip plant in the AURORA Model and the variable coal
cost under the contract.
35 Colstrip Oil (Startup Fuel) - Pro forma expense is for start - up oil expense
Pro forma is based on the test year.
36 Total Account 501.
37 N/A
38 N/A
39 Coyote Springs Gas - Pro forma expense is an output of the AURORA Model
based on the pro forma unit cost of fuel and the dispatch of the plant, which
determines the volume of fuel consumed.
40 Coyote Springs 2 Start-up Gas - This expense is for natural gas fuel used
during Coyote Springs 2 plant startups as determined by Aurora model.
4t Coyote Springs 2 Gas Transportation - This expense is for natural gas
transportation for the Coyote Springs 2 plant.
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Exhibit No. 7
Case No. AVU-E-19-04
C. Kalich, Avista
Schedule 4, Page 2 of 5
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Line
No.
Avista Corp.
Brief Description of Power Supply Adjustment
See Kalich
Workpapers
at Pape (P) Identified
42 Lancaster Gas - Pro forma expense is an output of the AURORA Model based
on the pro forma unit cost of fuel and the dispatch of the plant, which
determines the volume of fuel consumed.
43 Lancaster Start-up Gas - This expense is for natural gas fuel used during
Lancaster plant startups as determined by Aurora model.
44 Lancaster Gas Transportation - This expense is for natural gas transportation
for the Lancaster plant.
45 Actual Financial Gas Transactions - Mark-to-market value of term gas
financial positions.
46 Gas Transportation Optimization - This credit to expense is based on
optimizing the gas transportation contracts for Coyote Springs 2 and Lancaster,
In general, this involves trading the gas price spread between AECO (Canada)
and Malin. Based on a 5-year average.
47 Gas Transportation for BP, NE and KFCT - This expense is for transportation
of natural gas to serve Boulder Park, Northeast and Kettle Falls Combustion
Turbine gas-fired plants. Based on test year.
Rathdrum Gas - Pro forma expense is an output of the AURORA model based
on the pro forma unit cost of fuel and the dispatch of the plant, which
determines the volume of fuel consumed.
49 Rathdrum Start-up Gas - This expense is for natural gas fuel used during
Rathdrum plant startups. Based on results of the Aurora model.
50 Northeast CT Gas - Pro forma expense is an output of the AURORA Model
based on the pro forma unit cost of fuel and the dispatch of the plant which
determines the volume of fuel consumed.
51 Boulder Park Gas - Pro forma expense is an output of the AURORA Model
based on the pro forma unit cost of fuel and the dispatch of the plant which
determines the volume of fuel consumed.
52 Kettle Falls CT Gas - Pro forma expense is an output of the AURORA Model
based on the pro forma unit cost of fuel and the dispatch of the plant, which
determines the volume of fuel consumed.
53 Total Account 547
54 NiA
55 N/A
56 WNP-3 - Contract expires June 30, 2019; adjusted to zero.Pt4
57 Short-Term Purchases - Test year expense.
58 BPA PTP for Colstrip, Coyote Springs 2, Lancaster - Pro forma expense is
based on 577 MW of capacity at the BPA tariffrate. Test year expense.
Pl4
59 BPA Townsend - Garrison Wheeling - This expense is for the transmission of
Colstrip power from the Townsend substation to the Garrison substation. Test
year expense.
Pl4
Exhibit No. 7
Case No. AVU-E-19-04
C. Kalich, Avista
Schedule 4, Page 3 of 5
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No.
Line Avista Corp.
Brief Description of Power Supply Adjustment
See Kalich
Workpapers
at Pese (P) Identified
60 Avista on BPA - Borderline - This expense is to serve Avista load off of BPA
transmission. Expense is based on Avista's borderline loads priced at BPA's
NT transmission rates plus ancillary services cost and use of facilities charges.
Test year expense.
Pt4
61 Kootenai for Worley - This expense is for Avista load served using Kootenai's
facilities. Based on proforma period contract rate.
P15
62 Sagle - Northern Lights - Expense is for transmission purchased from Northern
Lights Utility to serve Avista customers. Test year expense.
63 Northwestern for Colstrip - Northwestern for Colstrip wheeling is an expense
for the transmission of Colstrip energy above 196 MW from the Garrison
substation over Northwestern Energy's transmission system to the
interconnection of Northwestern Energy and Avista. Test year expense.
64 PGE Firm Wheeling - PGE Firm wheeling reflects the cost of transmission
from the John Day substation to COB (Intertie South) purchased from Portland
General Electric. Test year expense.
65 Total Account 565
66 N/A
67 N/A
68 Montana Invasive Species - Expense associated with Montana program to
manage invasive species in the state.
69 N/A
70 Total Expense - Sum ofAccounts 555, 557,501, 547, 565, 537
7t N/A
72 N/A
73 Modeled Short-Term Sales - Short-term market sales from the AURORA
Model simulation.
74 Actual ST Sales-Physical - Mark-to-market value of fixed-price, short-term,
transactions executed for 2020.
75 Actual ST Sales - Financial - Mark-to-market value of term power financial
positions.
76 Nichols Pumping Sale - This is a sale of energy to other Colstrip Units 3 and 4
owners at the Mid - Columbia index price less $0.50/MWh.
Pl6
77 Sovereign/Kaiser DES - This contract provides load control services to
Kaiser's Trentwood plant.
78 Energy America - Contract ends 1213112019. Value set to zero in pro forma.
79 Douglas Exchange Sales - Contract has no cost, as is only an exchange of
power.
Pl7-Pl 8,
Confidential
80 Pend Oreille DES & Spinning Reserves - This contract provides load
regulation and reserves for Pend Oreille PUD.
81 CAISO Optimization - Revenues from 5-year availability of Company
transmission rights to COB. Modeled in Aurora the COB/I4id-C price spread
times the volume of available transmission.
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Exhibit No. 7
Case No. AVU-E-19-04
C. Kalich, Avista
Schedule 4, Page 4 of 5
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Line Avista Corp.
Brief Description of Power Supply Adjustment
See Kalich
WorkpapersNo.
af Pnse IP) Idenfified
82 Ancillary Services - Pro forma expense is $0 because this is an intra-utility
revenue; both this and matching expense in Account 555 have been set to zero
for this case.
83 Total Account 447
84 NiA
85 N/A
86 Non - WA EIA REC Sales - Company forecast.
87 Solar Select - The Solar Select revenue to offset expense of Adams Neilson
Solar PPA for which Buck a Block pays the expense.
88 Other Electric Revenue - Sale of excess BPA transmission rights
89 Natural Gas Liquids - Sale of liquids associated with natural gas purchases for
power plants @ AECO; adjusted for 5-year average through 2018.
Pl9
90 Gas Not Consumed Sales Revenue - This is the revenue for natural gas
purchased but not consumed for generation. See Account 557, Natural Gas
Fuel Purchases for offsetting cost ofthis gas.
9t Total Account 456.
92 N/A
93 Total Revenue - Sum ofAccounts 447,456.
94 N/A
95 Total Net Expense - Total expense minus total revenue.
Exhibit No. 7
Case No. AVU-E-19-04
C. Kalich, Avista
Schedule 4, Page 5 of 5