20220802Letter to Avista.pdf

P.O. Box 83720, Boise, Idaho 83720‐0074 Telephone: (208) 334‐0300, Fax: (208) 334‐3762 
11331 W. Chinden Blvd., Bldg. 8, Suite 201‐A, Boise, Idaho 83714 

August 2, 2022

Via E‐Mail

John Lyons
[e-mail]
Avista Utilities
1411 E. Mission
P.O. Box 3727
Spokane, WA 99220-3727
Shawn Bonfield
[e-mail]
Avista Utilities
1411 E. Mission
P.O. Box 3727
Spokane, WA 99220-3727

UPDATES TO CAPACITY DEFICIENCY USED IN DETERMINING AVOIDED COST RATES; ORDER
NO. 35466 IN CASE NO. AVU‐E‐22‐02.

Order No. 35466 in Case No. AVU-E-22-02 established a new first capacity deficit date for
Avista Corporation dba Avista Utilities (“Avista”) that will occur in December 2026. Staff updated the
Surrogate Avoided Resource (“SAR”) Model and re-calculated avoided cost rates to reflect the new
capacity deficit information.
The capacity deficiency information is entered on Tab “Input – Avista IRP” and is used by Tab
“Input – Load and Resource” in the SAR Model. As a result, the avoided cost of capacity will be paid
to new projects starting in the first deficit year of 2026. For example, as shown in Column AG on Tab
“AVOID NEW” tab, the capacity payment will start in 2026.
Staff is also including an updated copy of the SAR model that reflects the first deficit year of
2026. Attachment A shows the updated published avoided cost rates for new contracts. Attachment
B shows the updated published avoided cost rates for renewal contracts. Please review these
attachments and file a response with the Commission by August 12, 2022, stating whether the
updates to the SAR model and the calculations were made correctly.

Idaho Public Utilities Commission

P.O. Box 83720, Boise, Idaho 83720‐0074 Telephone: (208) 334‐0300, Fax: (208) 334‐3762 
11331 W. Chinden Blvd., Bldg. 8, Suite 201‐A, Boise, Idaho 83714 

Thank you for your cooperation. Please contact Yao Yin ([e-mail]) if you have
any questions.

Sincerely,

Riley Newton
Deputy Attorney General

Enclosures

I:\Legal\ELECTRIC\AVU-E-22-02 Cap Def\Avista ltr_20220802.docx