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HomeMy WebLinkAbout20230824Application.pdf Avista Corp. 1411 East Mission P.O. Box 3727 Spokane, Washington 99220-0500 Telephone 509-489-0500 Toll Free 800-727-9170 August 24, 2023 Jan Noriyuki, Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A Boise, Idaho 83714 RE: Case No. AVU-E-23-__Avista’s Capacity Deficiency Application Dear Ms. Noriyuki: Attached for filing with the Commission is Avista Corporation’s, doing business as Avista Utilities’, filing in compliance with Order No. 35810, to establish its Capacity Deficiency Period to be used for the avoided cost calculations within 30 days of filing its Integrated Resource Plan (IRP). Avista filed its 2023 IRP on June 1, 2023, in Case No. AVU-E-23-05. Avista submitted its Capacity Deficiency filing on June 20, 2023 but was not received by the Commission. 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, /s/Shawn Bonfield Shawn Bonfield Sr. Manager of Regulatory Policy & Strategy Avista Utilities 509-495-2782 shawn.bonfield@avistacorp.com Enclosure RECEIVED 2023 August 24, PM 5:04 IDAHO PUBLIC UTILITIES COMMISSION Case No. AVU-E-23-12 Michael G. Andrea (ISB No. 8308) Senior Counsel Avista Corporation 1411 East Mission, MSC-17 Spokane, WA 99202 Phone: (509) 495-2564 Facsimile: (509) 777-5468 Email: michael.andrea@avistacorp.com Attorney for Avista Corporation BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA CORPORATION’S) CASE NO. AVU-E-23-____ COMPLIANCE FILING TO UPDATE ) AND ESTABLISH ITS CAPACITY DEFICIENCY ) PERIOD TO BE USED FOR AVOIDED COST ) CALCULATIONS ) AVISTA CORPORATION’S COMPLIANCE FILING RECEIVED 2023 August 24, PM 5:04 IDAHO PUBLIC UTILITIES COMMISSION 12 1 | P a g e I. INTRODUCTION Avista Corporation, doing business as Avista Utilities (hereinafter Avista or the Company), at 1411 East Mission Avenue, Spokane, Washington, respectfully submits to the Idaho Public Utilities Commission (Commission) this filing, in compliance with Order Nos. 32697 and 32802 in Case No. GNR-E-11-03, and 35810 in Case No. GNR-E-23-01, 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) Shawn Bonfield Senior Counsel Sr. Manager, Regulatory Policy Avista Corporation Avista Corporation P.O. Box 3727 P.O. Box 3727 1411 E. Mission Avenue, MSC-17 1411 E. Mission Avenue, MSC-27 Spokane, WA 99220 Spokane, WA 99220-3727 Phone: (509) 495-2564 Phone: (509) 495-2782 Facsimile: (509) 777-5468 Shawn.Bonfield@avistacorp.com Michael.Andrea@avistacorp.com II. BACKGROUND In Order No. 33917 in Case No. PAC-E-17-09, 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.” Order No. 35810 modified the filing date to “within thirty (30) days of filing its respective IRP.” Avista filed its 2023 Electric Integrated Resource Plan (IRP) with the Commission on June 1, 2023, thus hereby seeks approval from the Commission of the capacity deficiency period to be utilized for the Company’s avoided cost calculations. 2 | P a g e III. CAPACITY DEFICIENCY PERIOD Avista’s 2023 Electric IRP identifies the first load deficit on January 1, 2034. This is later than the capacity deficiency date identified in the 2021 IRP because of the addition of new resources including the extension of the Lancaster Power Purchase Agreement (PPA) through 2041, long-term capacity and energy from Chelan PUD, Columbia Basin Hydro, and a 30-year wind PPA. There are also planned upgrades to the Kettle Falls Generation Station and Post Falls hydroelectric facility. Figures 1 and 2 below show the net peak position for both the winter and summer peak hour positions (from Figures 4.1 and 4.2 on page 4-5 of the 2023 Electric IRP). Figure 1: Winter One-Hour Capacity Load & Resources 3 | P a g e Figure 2: Summer One-Hour Capacity Load & Resources Avista did not include any Colstrip exit scenarios for this capacity deficiency filing because there is an official exit date for Colstrip at the end of 2025, when ownership of the resource transfers to NorthWestern Energy. 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 Commission determines that a technical hearing is necessary, the Company will be ready to prepare and present its testimony in such hearing. 4 | P a g e V. REQUEST The Company respectfully requests that the Commission issue an order to approve of its capacity deficiency period, with a first deficit occurring on January 1, 2034. DATED at Spokane, Washington, this 24th day of August, 2023. AVISTA CORPORATION By /s/ Michael Andrea Michael G. Andrea Senior Counsel for Avista Corp.