20220222Application.pdf

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Avista Corp.
1411 East Mission P.O.Box3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
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JanNoriyuki, Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A
Boise,Idaho 83714
RE: Case No. AYU-E-22-D2l\vista's Capacity Deficiency Application
Dear Ms. Noriyuki:
Attached for filing with the Commission is Avista Corporation's, doing business as Avista
Utilities' frling in compliance with Order Nos. 33917, to establish its Capacity Deficiency Period
to be used for the avoided cost calculations. The Commission issued Order No. 35257
acknowledging the Company's 2021Elecfrrc Integrated Resource Plan (IRP) on December 16,
2021. With this acknowledgement, Avista hereby submits its Capacity Deficiency Period to
establish a new deficiency date for the SAR avoided capacity cost.
Please direct any questions regarding this filing to John Lyons at 509-495-8515.
Sincerely,
lolstaa,c guc&dl
Shawn Bonfield
Sr. Manager of Regulatory Policy & Strategy
Avista Utilities
509-49s-2782
shawn. bonfield@ avistacorp. com
Enclosure
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Michael G. Andrea (ISB No. 8308)
Senior Counsel
Avista Corporation
l41l East Mission, MSC-I7
Spokane, WA99202
Phone: [phone]e
Facsimile: (509) 7 77 -5468
Email: [e-mail]
Attorney for Avista Corporation
BEFORE THF' IDAIIO PIIBLIC UTILITIBS COMN{ISSION
IN THE MATTER OF AVISTA CORPORATION'S)
COMPLIANCE FILING TO UPDATE )
AND ESTABLISH ITS CAPACITY DEFICIENCY )
PERTOD TO BE USED FOR AVOTDED COST )CALCULATIONS )
CASENO. AVU-E-22-92
AVISTA CORPORATION'S
COMPLIANCE FILING
I. INTRODUCTION
Avista Corporation, doing business as Avista Utilities (hereinafter Avista or the
Company), at l4ll East Mission Avenue, Spokane, Washington, respectfully submits to
the Idaho Public Utilities Commission (Commission) this filing, in compliance with Order
Nos. 32697 and32802 in Case No. GNR-E-I l-03, seeking approval from the Commission
of the capacity deficiency period to be utilized for the Company's avoided cost
calculations.
Communications in reference to this filing should be addressed to:
Michael G. Andrea (ISB No. 8308)
Senior Counsel
Avista Corporation
P.O.Box3727
l4l1 E. Mission Avenue, MSC-17
Spokane, WA99220
Phone: [phone]
Facsimile: (509) 7 7 7 -5468
Michael.Andrea(@avistacorp.com
Shawn Bonfield
Sr. Manager, Regulatory Policy
Avista Corporation
P.O.Box3727
l4l I E. Mission Avenue, MSC-27
Spokane, WA99220-3727
Phone: [phone]
Shawn. Bonfi [e-mail]
II. BACKGROUND
ln Order No. 33917, the Commission amended Order No. 32697 such that utilities
were to file "their first capacity deficiency cases after the Commission has acknowledged
their IRP reports." Avista filed its 2021 Electric Integrated Resource Plan (IRP) with the
Commission on March 31, 202I. On April 30,2021 the Company filed an update to its
2021Electrc IRP due to impacts from a hydro slice contract executed with Chelan PUD
that resulted from the 2020 Renewables Request for Proposals (RFP). On December 16,
202l,the Commission issued Order No. 35257 acknowledging the 2021Electrc IRP.
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III. CAPACITY DEFICIENCY PERIOD
Avista's 2021Electrc IRP update identifies the first load deficit on November l,
2026. The addition of the hydro slice mentioned above reduced the amount of the capacity
deficiency, but did not change the month and year of the expected deficiency. The deficit
is a direct result of the expected economic loss of Colstrip Units 3 and 4 no longer serving
Avista's customers system-wide at the end of 2025, and with the expiration of the Lancaster
Power Purchase Agreement (PPA) in October 2026. Figures I and 2 below show the net
peak position for both the winter and summer peak hour positions (from Figures 5 and 6
on pages 12 and 13 of the 2021Electtc IRP update).
Fisure l: Winter One-Ilour Caoacity Load & Resources
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2,500
2,000o
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2lPage
500 rResources rChelan Purchase
-Load
without EE + Contingency - Load with EE + Contingency
3,000
2,500
2,000
s00
o
G;(E
E'Io
=
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1 ,000
500
Figure 3 below shows Avista's annual average energy load and resounces balance as
identified in Figure 7 of the 2021 IRP Update on page 13.
Fisure 3: Arnual Averase Enerw Load & Resource Balance
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0 N fi, !t lO (o l\ Gt, o) O F N (9 t lO (o N O (D C F N cO t lON N (\l N N N N N .vt Gl' GA (t A' ct A' C' C' At !t t t t $ to o o o o c o o o o (, (, o o o o o o o o o o o c,N (\1 (\I N N N N N N N N N N N N N N N N N N N N N
3,000
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0 N c) tl lO (o lr cO O) O - N .,) tt lO !O F O (D O - N dl, t !ON N N N N N N N .r' (t Cl' F' G) (v' ." .,, ." .Y) ti t t t tt tooooooooooooooooooooooooNNNNNNNNNNNNNNNNNNNNNNNN
r Resources
-Load
without EE + Contingency
rChelan Purchase
-Load
with EE + Contingency
r Prior Resources
-Load
without EE + Contingency
rChelan Purchase
-Load
with EE + Contingency
Because there is no official shut down date for Colstrip at this time, and in
concordance with the last capacity deficiency filing, Avista ran the three scenarios
regarding the date Colstrip exits Avista's portfolio as shown in Table I below. These
scenarios can be found in the attached workpapers. The 2021 Electric IRP relied upon data
used in the LR tab of the PRiSM model. This model does not have the capability to show
the month of the deficiency, as the capacity report does, but the next IRP should have the
monthly capability feature available. Avista was certain of the November l, 2026 date of
the first capacity deficiency because of the end of the Lancaster PPA on October 31,2026.
Table 1: Colstrip Exit Scenarios
Each scenario does not change the year of the annual deficit. The magnitude of the
deficit in the second and third scenarios changes with the Colstrip Units continuing to serve
Idaho customers for a longer period.
IV. MODIFIED PROCEDURE
Avista believes that a hearing is not necessary to consider the issues presented
herein and respectfully requests that this Application be processed under Modified
Procedure, i.e., by written submissions rather than by hearing. RP 201 et seq. If the
Idaho Exit Washington
Exit
First Annual
Deficit
Deficit Amount
(NTW)
2021Electric IRP 2022 (Both
Units)
2022 (Both
Units)
1t/U2026 (247)
Scenario 1 2025 (Both
Units)
2025 (Both
Units)
2027 (247)
Scenario 2 2034 I 2036
runit 3runit 4)
2025 (Both
Units)
2027 (171)
Scenario 3 2027 (Both
Units)
2025 (Both
Units)
2027 (r 7l)
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Commission determines that a technical hearing is necessary, the Company will be ready
to prepare and present its testimony in such hearing.
v. REQTTEST
The Company respectfirlly requests that the Commission iszue an order to approve
of its capacity deficie,ncy p€rio4 with a first deficit occurring in November 1,2026.
DATED at Spokang Washington,this22d day of Febnrary,2022.
AVISTA CORPORATION
By /s/ Mchael Andrea
Michael G. Andrea
Senior Counsel for
Avista Corp.
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