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HomeMy WebLinkAbout20110119Avista Reply Comments.pdfJanuary 18,2011 c Utilities Commission ashington Street , ID 93702 Email: jean.jewel1ß)puc.idaho.gov Reply Comments of A vista Corporation IPUC Docket No. GNR-E-I0-04 Dear Ms. Jewell: ~~~'V'STßl Corp. ~~~ .. :i::-~i\il ui\D Please find enclosed for filing an original and seven copies of the Reply Comments of A vista Corporation in the above-referenced docket. Please let me know if you have any questions regarding this fiing. Enclosures cc: Service List Sincerely,-~. Michael G. Andrea Senior Counsel MICHAL G. ANREA (ISB No. 8308) A vista Corporation 1411 E. Mission Ave., MSC-23 Spokae, W A 99202 Telephone: (509) 495-2564 michaeL andrea (g avistacorp.com cc: V lOB JAN 19 AM it: 59 BEFORE TH IDAHO PUBLIC UTITS COMMSSION IN TH MA ITR OF THE JOIN PETITION ) OF IDAHO POWER COMPAN, AVISTA ) CORPORATION, AN ROCKY MOUNAI ) POWER TO ADDRESS AVOIDED COST ) ISSUES AN JOIN MOTION TO ADJUST ) TH PUBLISHED AVOIDED COST RATE )ELIGffILITY CAP. ) ) ) CASE NO. GNR-E-l0- REPLY COMMNTS OF A VISTA CORPORATION Pursuant to the Notice issued by the Idao Public Utilities Commssion ("Commssion") on December 3, 2010 in Order No. 32131 ("Notice"), Avista Corporation ("Avista") respectflly submits the following reply comments in support of reducing the eligibilty cap for the published avoided cost rate. I. Background On November 5,2010, Avista Corpration along with Idao Power Company and PacifiCorp, dba Rocky Mountan Power, (collectively, the "Utilities") filed a Joint Petition requesting the Commssion to initiate an investigation into varous avoided cost issues regardig PURPA Qualifying Facilties ("QFs") under the Public Utility Regulatory Policies Act of 1978 ("PUR A"). Among the issues rased in the Joint Petition, the Utilities reuested that the Commssion issue an order adjusting the published avoided cost rate eligibilty cap for QFs from 10 average megawatt ("aM") to 100 kilowatt ("kW") effective immedately. Page - 1 REPLY COMMENTS OF AVISTA CORPORATION On December 3, 2010, the Commission issued the Notice in which it, among other things, set a modified procedure comment schedule with which to develop a record for its decision regarding the Joint Petition and Motion's request to lower the published avoided cost rate eligibility cap. Order No. 32131, Case No. GNR-E-1O-04. In the Notice, the Commission bifurcated this proceeding into two phases. In the first phase, the Commission wil address only the Utilities' request to reduce the eligibility cap. Initial comments for this first phase were due on December 22,2010. Reply comments are due on Januar 19,2011. II. Reply Comments The Federal Energy Regulatory Commission ("FERC") requires states to have a standard rate offering for projects with a design capacity of i 00 kW or less.! States may require standard rates for purchases from QFs that have a design capacity greater than 100 kW.2 In the recent past, the Commission has set the eligibility cap for the published avoided cost rates at 10 aMW. QFs larger than 10 aMW are eligible for an avoided cost rate that is determined through negotiations with the utility using the utility's "IRP Methodology" as the basis for determining the applicable avoided cost rate. 3 As Comiission Staff notes in its comments, "one of the primary justifications for limiting eligibilty for published rates to 10 aMW has been to recognize that developers of small QFs are less likely to be large, well-funded organizations, capable of sophisticated contract negotiations.,,4 It is not merely developers of small QFs that are taking advantage of published avoided cost rates.s Rather, developers of large wind projects are splitting those projects into 1 Staff Comments at 3; 18 C.F.R. § 292.304(c)(l).218 C.F.R. § 292.304(c)(2). 3 Staff Comments at 3-4. 4 Staff Comments at 4. 5 Staff Comments at 4 (stating: "It has become quite common for large wind projects to be strctured as multiple, separate QFs, each 10 aMW in size, but collectively 60, 80 or 120 MW in size. In fact, nearly all new wind Page - 2 REPLY COMMENTS OF AVISTA CORPORATION separte smaller QFs in order to tae advantage of the published avoided cost rate (ths pratice is someties referred to herein as "disaggregation,,).6 Ths practice raises several concerns. Those concerns include, among others, as Commssion Sta recognzed: (1) an arcial mismatch between the method used to establish a project's avoided cost rates and the collective size of the project; (2) ineffcient turbine layouts that do not maximize the value of Idaho's wind resource; and (3) utilities are forced to acquire generation from large QFs at stadard rates without regard to the utility's need for new generation.7 Ultimately, forcing utilities to pay standard published avoided cost rates to larger QFs can, as Staf recognized, have adverse implications, including higher rates for the utilities' customers.8 A vista has QF reuests in Idaho for 450 MW of development, 350 MW of which is for wind QFs.9 The addition of such resources to Avista's system is substatial relative to A vista's estimated Idaho peak load of 617 MW, and minimum load of 232 MW. A vista has a diect interest in ths proceeding.1O Accordingly, Avista urges the Commssion to adopt Stas recommendation to lower the published avoided cost rate eligibilty cap from 10 aM to 100 kW effective December 14,2010, while the Commssion furter investigates ths issue. In addition to the intenm recommendation to reduce the eligibilty cap from 10 aM to 100 kW while the Commssion conducts its investigation of ths issue, Staf provides four long-term alternatives to address the disaggrgation problem. Avista, as discussed more fully below, supports Stas first proposed alternative oflowenng the eligibilty cap indefinitely as the best solution to the disaggregation issue. Although Sta recommends that the eligibilty cap only be contrcts submittd for Commission approval in recent years ar collections of two or more adjacent i 0 aM rrojects, each with common ownership and developers.").Staf Comments at 4.7 Sta Comments at 4-5. 8 See Sta Comments at 5. 9 Appendix A lists Avista's PURA requests. 10 See also Sta Comments at i i -12. Page - 3 REPLY COMMENTS OF AVISTA CORPORATION lowered for wind resources, Avista respectfully requests that, at a minimum, the eligibilty cap be lowered for wind and solar resources. A. The Eligibilty Cap for Published A voided Cost Rate Should be Lowere Indermitely. A vista support Stafs alternative solution to the Utilities' recommendation of lowenng the eligibilty cap indefinitely. Ths approach is preferable to the other alternatives beause it wil allow trly small QFs to tae advantage of published avoided cost rates while at the same time ensunng that the rates paid to larger QFs more accurately reflect the utility's actual avoided costs. Sta suggests that the IRP Methodology used to determne the avoided cost rate for developers above the eligibilty cap reuires the use of complicated and propneta production cost models and that developers might be suspicious of the model results and would be unable to replicate or venfy the model output. 11 A vista is sensitive to these concerns. A vista does not, however, agree that the use of the IRP Methodology for projects greater than 100 kW wil be excessively burdensome or complex. The IR Methodology is presently well founded and developed in a public process. The method comes from a biennal process that has been, in the case of Avista, in use since 1989. Avista also encourages Commssion Sta to parcipate in its 11 A vista notes that the Nortwest and Intermountan Power Prducers Coalition ("NIPC") argues that lowenng the eligibilty cap would frustrate the purse of PUR A. In support of its argument, NIPC cites a U.S. Supreme Court cas, FERC v. Mississippi, 456 U.S. 742 (1982), that NIPC reads to state that "one of the fundamenta reasons for the mandatory purchase reuirement is that the Utilities have been found to be reluctat to purchase electrcity from 'nontritional facilties.'" NIPC Comments at 7. The reduction of the eligibilty cap wil not change the mandatory purchase reuirement under PURA; lowenng the eligibilty cap only bear on the question of the size limit for QFs that ar able to avail themselves to published avoided cost rates it does not have any relevancy to the issue of whether a utility has an obligation under PURA to purchase the output from a QF. Therefore, NIPC's argument that reucing the eligibilty cap will frstrte PURA is without ment. Morever, FERC's regulations expressly reuire stadar published rates only for Qualifying Facilties with a design capacity of 100 kW or less. 18 C.F.R. § 292.304(c)(l). Page - 4 REPLY COMMENTS OF A VISTA CORPORATION process to the extent that Sta and/or developers thnk that such parcipation may be helpful in assunng developers that Avista is faily implementing its IR MethodologyY Commssion Sta reommends that the Commssion lower the eligibilty cap only for wind resources.13 As stated above, A vista respetflly reuests that, at a minium, the Commssion consider lowering the eligibilty cap for wind and solar resources. As explaied furter in Appendi B to these comments, there is signficant day-to-day varabilty associated with solar resources. There is also substatial varabilty for solar resources across the on-pe hours. Solar provides a limited capacity contnbution in the peak winter months, and a less than 15% nameplate contnbution in the summer months. Finally, as Sta notes, developers of solar resources may have the abilty to configure their projects to circumvent the intent of the published avoided cost rate eligibilty cap. 14 A vista encourages the Commssion to adopt the alternative of limiting the eligibilty cap for published avoided cost rates to 100 kW for, at a minium, all wind and solar QFs on an indefinite basis. Ths alternative provides the best solution to the disaggregation issue. To the extent that the Commssion does not apply the 100 kW eligibilty cap to resoures other than wind, A vista reuests that the Commssion make clear that it wil revisit that issue in the futue in the event that it is shown that developers of such other resources ar disaggregating projects to avail themselves to published avoided cost rates. 12 A vista does not anticipate that the Commission Sta will need to dedicate substantial time or resources to ths proess. Rather, Avista believes that Sta parcipation in the first one or two contrcts for which the IR pross is use afr the eligibilty cap is lowered may help developers to feel comfortble with that pross. 13 Staf Comments at 12.14 Sta Comments at 6. Page - 5 REPLY COMMENTS OF AVISTA CORPORATION B. A vista Support Stas Alternative to Reintroduce an A voided Cost Computation Methodology that Takes the Utility's Need for New Generation into Account. A vista supports the concept of reintroducing utility need into the QF pncing equation. Pnor to 2002, the Commssion acknowledged that, when a utility is surplus, new QF generation wil only serve to furter its surplus, and that the surplus has only the value inherent in the wholesale marketplace. IS The fully-embeded cost of generation reflected in tOdaY'S published avoided cost rates are too high-especially if the utility is in a surplus penod. As Sta recognzes, it could be successfully argued that power offered for sale to a utility dunng its surlus penod has no value. 16 To ensure that the load and resource positions are clear when each PUR A contrct is negotiated, A vista proposes that the load and resource position published in its latest integrted resource plan ("IR") be used. A vista proposes to keep the load and resource position constant for the two-year penod that an IRP is current. Avista believes that it is especially importt for utility need be reintroduced into the QF pncing equation, if the Commssion does not lower the eligibilty cap indefintely. C. A vista Do Not Support Implementing a Larger Separation Rule. A vista does not support Stas alternative of implementing a larger separtion rule to address the disaggregation issue.17 Staf explains that a separtion requirement that is greater than one-mile might conflct with federal law. IS' Although, as explained below, Avista believes that the Commssion can require separation greater than one-mile as a condition to eligibilty to 15 See Sta Comments at 8-9. 16 Sta Comments at 9. 17 Sta Comments at 9-10.18 Sta Comments at 10. Page - 6 REPLY COMMENTS OF A VISTA CORPORATION published avoided cost rates for QFs greater than 100 kW, Avista is concerned that such a separation rule wil be diffcult to implement and enforce. First, it is Avista's view that a five-mile (or other separation requirment exceedng the one-mile FERC limit) separation rule applied to QFs greater than 100 kW would not confct with federal law. FERC's one-mile separation requirement requires that QFs be separated by at least one mile.19 The FERC separation reuirement does not speak to the cntena that the Commssion may adopt for eligibilty for published avoided cost rates for QFs that are greater than 100 kW.2° In that regard, FERC's only requirement for stadard published rates is that they be available to QFs that are 100 kW or less.21 States can, however, authonze published avoided cost rates for QFs larger than 100 kW.22 Under such circumstaces, the FERC regulation does not prohibit states from adopting additional eligibilty requirements-such as separation requirements greater than one-mile.23 Therefore, the Commssion could madate for purpses of published avoided cost rate eligibilty a separation of, for example, five miles or more for QFs larger than 100 kW. So long as projects of 100 kW or less remain eligible for published avoided cost rates without regard to the increased separtion requirement, such a rule would not confict with federal law. Although it is legally possible to increase the separation requirement for those QFs greater than 100 kW that want to avail themselves to published avoided cost rates, Avista does not prefer ths approach. A vista is concerned that developers may find simple ways to circumvent any such increased separation requirement by creating the appeaance of different 1918 C.F.R. § 292.204(a). 20 Compare 18 C.F.R. § 292.304(c) with 18 C.F.R. § 292.204(a). 21 18 c.F.R. § 292.304(c)(I). 22 18 C.F.R. § 292.304(c)(2). 23 See 18 C.F.R § 292.304(c)(2). Page - 7 REPLY COMMENTS OF AVISTA CORPORATION ownership or control between projects. For example, where there is a large project it could be split up into multiple projects with one or more landowners owning the first project, another owning the second project, etcetera. A developer could also develop one large project, split that project into multiple projects, and hand "ownership" of the pieces of the broken-up project to the landowners or other business entities. The developer could then charge large development fees to transfer most of the value of the entie development to the developer without retaning "ownership." In either of these examples the separation rule could be rendered effectively moot. For the reasons discussed above, Avista does not generally support an increased separation rule. However, if the Commssion determnes that the eligibilty cap for published avoided cost rates should be greater than the 100 kW cap requested by the Utilities, Avista requests that the Commssion consider a separation rule of five miles or more in conjunction with any eligibilty cap greater than 100 kW. D. Avista Do Not Prefer, But Would Support A New Methodology for Large QF Project Rates. A vista would support an effort to develop a new methodology for large QF project rates. However, Avista does not prefer ths alternative. Sta references the recent "Wind SAR" proceedng as an alternative to establish avoided cost rates for QF. 24 In that proceeding, the effort was abandoned in favor of ths proceeng before an alternative Surrogate A voided Cost Resource (SAR) methodology was reached. Expenence indicates that any attempt to develop a resource-specific or other new SAR methodology wil be difficult and wil require substatial investment of time and resources by all pares. Even if a new SAR methodology can be developed, it is not clear that any such methodology wil solve the disaggregation issue. For these reasons, A vista is not convinced that 24 Staff Comments at 1 1. Page - 8 REPLY COMMENTS OF A VISTA CORPORATION pursuing a new methodology, such as multiple SARs, is the best solution to the disaggregation problem. However, to the extent that the Commission does not lower the eligibility cap indefinitely such that large developers canot continue to disaggregate to avail themselves to published avoided cost rates, A vista believes resource~specific SARs might be the only other workable solution. III. Conclusion A vista appreciates the opportunity to submit these reply comments on the issue of PURPA published rate eligibility. Avista supports Commission Staffs recommendation to reduce the eligibility cap for published avoided cost rates to 100 kW, effective December 14, 2010, while the Commission conducts its investigation. Avista also supports Staffs first alternative long~term solution-to reduce the eligibility cap to 100 kW indefinitely-as the simplest and best approach to solve the disaggregation issue. A vista respectfully requests that the Commission reduce the published avoided cost rate eligibility cap to 100 kW. Although Staff recommends lowering the eligibility cap only for wind QFs, A vista requests that, at a minimum, the Commission lower the cap for both wind and solar QFs. DATED this 18th day of Januar 2011. n~ Michael G. Andrea Attorney for A vista Corporation Page - 9 REPLY COMMENTS OF A VISTA CORPORATION APPENDIX A 11 1 1~ I 2 O 2 0 1 20 2 0 2 G 2 0 2 0 2 0 7 2 0 0 2 0 2 0 1 0 2 0 1 1 1. (6 2 . 0 ) 6 2 . 0 6.0 63 . 7 65 . 0 65 . 0 65 . 0 23 . 0 65 . 0 65 . 0 65 . 0 91 . 0 91 . 0 91 . 0 91 . 0 91 . 0 91 . 0 20 20 31 0 0 0 0 0 0 0 0 0 0 20 40 35 35 0 o 1 6 8 . 4 0 0 0 0 0 0 0 0 0 0 o 1 6 4 1 6 8 . 4 35 35 35 35 35 35 35 35 PU P R A H i s t r y a n d 2 0 0 . 2 0 1 0 P U R P A A c v h 12 1 3 1 0 1 0 _I l P U A P r Ei s t P r Sl r l D o t e Te c h n o l o g Cip o o l l L_ Ow n e r s h i p Pr o j e 1 8/ 1 / 1 9 6 Hy r o 17 . 7 M W Sp n e , W A Cit o f S p n e Pr o 2 2/1 2 / 1 9 6 2 Hy r o 0.2 2 M W Cl a r k F o r k , 1 0 Ja m e s Wh i t Pr 3 8/ 1 / 1 9 6 Hy r o 0.0 2 M W No r t p o n 1 . W A Gle n n P h U I p Pr j e 4 51 1 / 1 9 8 Hy r o 1.4 M W No r t p o n 1 , W A Gle n n P h i l i p Pr 5 9/ 1 1 1 9 8 7 Hy 0.9 M W Lu c l l l e , I O Da v i d C e r e h i n o Pr o j 6 4/ 1 1 1 9 8 Hy r o 1.4 1 M W Wa l p p , 1 0 Fo H y o U m l t Pr o j 7 2/ 1 2 / 1 9 9 Hy r o 1.3 M W Ke t t F a l l s , W A Hy r o T a c S y m s Pro j 8 71 W Th e r m a l ~ W o o d 62 M W Le n , 1 0 Cle a r w a t e r P a p r C o m n y Pr o j 9 10 1 1 1 2 0 0 Th r m a l - W o o 6M W Plu m m r , 10 St i m s n L u m b e SU M 91 _ PU R P I n q r i 1) P r j e d l t h a v m a d e I n q u i r s a n d w e ' v e s e t t h e m t h e m a t r i . No f u r t e r n e g t i h i v e t a k e p l e fm Il bu C p m m y n l c l o IG Ji Pr o j 1 No y . 0 9 Ma r . 1 0 Wi n d 20 M W Pr o j 2 Ma r - t O Ap - 1 0 la G a . lM W Prj e 3 Ma r - i o Ma r - t O 81 . . 10 M W Pr j e 4 Ap r - l 0 Ap r - 1 O Wi n d 10 M W Pr j e S Ju . . 1 0 De - 1 0 Hy r o o. M W Pr j e S Ju ~ 1 0 Ju H O Wi n 80 M W Prj e 7 Au l l 1 0 Au I l 1 O 6l 9M W Pr j e 8 De - l 0 De - l 0 81 . . 80 M W Prj e 9 De - l 0 De - l 0 WI " S O r 70 M W Su m 28 M W 2) P r t h a t h a v m a d e d e l o p m e n t p r o a n d c o t r a l p r o g s Al l o f t l e . . p i j e C l p r o o s d 1 0 d e l i v r t o A . h l . i n I d a h o fm Il lM C o m u n l c i l g II Ji ia . . _0 9 Wi n d 20 M W Ja n - 1 0 SO P - L 0 _8 8 ' 7M W Ju n - t O Ju l t t O Wi n 20 M W Ju n - l O Ju . . 1 0 Wi n d 20 M W Ju n - l O Ju . . i o Wi n d 20 M W Ju n - t o Ju . . 1 0 WI 20 M W Ju . . 1 0 Ju , . i o WI d 20 M W Ju . . 1 0 _1 0 WI 30 M W Oc - l 0 De - 1 O WI 10 M W _1 0 ii l 0 WI 10 M W Su m 17 7 M W 1_ 1" 1 19 9 11 1 11 1 1 _ 11 1 1 1 1 21 . 7 62 . 0 21 . 7 21 . 7 63 . 7 63 . 7 63 . 7 83 . 7 63 . 7 8 3 . 7 0 0 0 0 0 0 0 0 Pr o j e 1 Pr 2 Pr o j 3 Pr 4 Pr o j 5 Pr S Prj e 7 Pr 8 Pr 9 Pr 1 0 PU R P A N o n - W i n d P r o i An u e M W ( C 8 1 1 t Cu m m u l U v M W pu e A W i n d p r An u e l M W ( C 8 I I ) Cu m m e 1 M W PU B P A N Q Q : W I n p l ' An l M W ( C 8 ) Cu m m l a t l M W Sl t a i n W i n d P r o ~ SW M o n a n a co d ' A l e . 1 0 5W O . . o n Re r d a n , W A No r t p o l n t W A 5W W a s l n o n SW O r a E.W AWa s i n n ~ No r l , M T Bln c h a r , I D G. . ~ , I O G. . ~ , I D G. . ~ , I O Gr s e v Ø . 1 0 Gr a , 1 0 Co m b u s , M T Dr O l e n Or o n PU R P A S U m m a r AV A _ G N R - E - l c ) D 4 _ R e I y _ C o m e n t _ A p p e n d _ A . i d APPENDIXB Appendix B Analysis of Solar Contributions to Utilty Needs Introduction Many advocates of solar point to its on-peak generation profile and conclude that this bias warrants a higher price than wind and lessens the reliabilty impacts of the resource. There is evidence that, unlike wind, solar does on average provide generation during periods where utilty loads are higher than for wind. However, this fact does not eliminate the operational and valuation concerns associated with solar. Absent some storage medium, which is unlikely for QF projects which wil be comprised of photovoltaic panels, solar does not greatly reduce the capacity needs of the utilty. Yet solar appears to have many of the operational problems associated with wind resources; it is an unpredictable variable resource. Much of this unpredictabilty comes from various weather variables that affect output, including cloud-cover, precipitation, temperature and dust. Avista presents the following analyses in support of its view that eligibilty for published avoided cost rates for solar, like wind, QFs should be limited to 100 kW. Solar Experiences Significant Day-to-Day Variabilty Avista in 2009 installed 3.5 kW-DC photovoltaic solar facilty on the top of its corporate headquarters. Chart 1 below details the hourly summer profile of Avista's solar facility in 2010. Chart 2 illustrates the same for a winter profile, defined as January 2010. As can be seen in both cases, the variabilty across the on-peak hours is substantiaL. In the case of winter, the average capacity factor is 7.2% for solar, yet variabilty during on-peak hours is between zero and 87%. In the winter, output for solar can be zero even during solats peak output hours (12:oop-4:oop). Chart 1 Avista Solar Facilty Daily Summer Output Shape (August 2010) 100.0% 90.0%Day of Month 80.0% -1-4-7-10-13--16-19-22-"m~_*25 -'"-28 31 -2-5-8-11-14-17-20-23-26 "29 -- Average -3-6-9-12-15-18-21-24 ",.27 '""'--30 70.0% 60.0% 50.0% 40.0% 21.3% Average capait Factor 30.0% 20.0% 10.0% 0.0% .. ,-.~ .. ~ -, -+ ~ .. i-1"-v-+ ; ~,;, ~ ~" ~;; ~; ~ ~; ~ ~ ~; ~ ~ ~ In the summer the average solar capacity factor of Avista's facility was 21.3%, with a range in the on- peak hours of between zero and 86%. During the summer when average production is the highest, output during the resource's highest production hours (1:00p-5:00p) ranged greatly, between 11.6% and 87.4% in 2010, versus an average of 61.9%. Page 2 Chart 2 1--Avista Solar Facilty Daily Winter Output Shape (January 2010) 100.0% 90.0% ____~ Day of Montb__________~____________-1 -2 -3-4 -5 -680.0% ------ -7 -8 -9-10 -11 -12-13 -14 -1570.0% -16 -17 -18-19 -20 -21-22 -23 -2460.0% - --25 -26 ------27--28-29 ---30 31 -- Average 50.0% 40.0% 7.2% Average Capacity Factor 30.0% 20.0% 10.0% 0.0% .. ,-+o. 'I -, -.~ ~-i-~.. ~ G', G' ~ ~" ~;~ #; ~ ~ p ~ ~ ~;~ ~ ~ ,.~-~ ,-~ .."1-..,-- Solar is Not Correlated to System Needs (Peak Demand) Solar output is not consistent or "reliable." As a result, Avista's other resources wil have to stand ready to backup the solar resource. In 2010 the correlation of Avista's solar facility to Avista's daily peak demand was -33%, indicating no correlation. Chart 3 below provides the peak daily output profile of Avista's solar test facility during 2010. Page 3 Chart 3 í Avista Solar Facilty Maximum Daily Capacity Factor (2010)100 90 80 70% 60 5O 20 :10 0 0 0 0 0 ~0..............2 0 2 2 2 2 0 2NN-'ù ëi 'r 'ù 'r 'ù ëi..-..N ..N ..N ~..-';'r 'r ;;;;.. MeAveSt DeMí_____ Max 95% PerterCo 40 30 0 0 0 0 0 0 0 0 0 0 0 0 ~~0 ~0 ~............................0 2 2 0 0 2 0 2 2 0 0 0 2 2 0 2 2 ~N N N N N N N N;;S ';~Õi 'r 'ù 'è ;;r:'è ~Õi ~'ù ëi ;;N N ..r:..'"..N ..N 'è ';..'r ..~'ù 'ù r:r:Õi Õi ëi ëi ..'è ..';..'r...... Although Chart 3 provides a good ilustration of the variabilty of solar, it does not explain the capacity contribution ofthe resource. Solar, while generating on-peak energy, does not greatly reduce a utiltys need to construct capacity resources. To ilustrate this, Avista analyzed its peak winter and summer load days during 2010. In each case it was assumed that a solar facility of the same size as the peak demand hour was constructed (otherwise the impact would be diffcult to visualize). As Chart 4 shows, during the summer months the solar facility would reduce the peak need of the utilty by only 13.7% of the nameplate of alternating current rating of the resource. Page 4 Chart 4 I 1,8 I 1,60 1,40 1,200 ..1,00t:ftilft:i 80E 60 40 200 Impact of 1,556 MW Solar Resource on Summer Peak Demand (2010) ~-~--'_.._'._.'._---'------'._-'-----~'--- _Summer load Peak absent solar I,SS6 MW -_Solar ~Peak wih solar 1,3-Net (13.7% re/iOn) _f& '\--V Ì\/"."/..-.-/\/ \/ '"I-\; ------------- ~..~---.~---------- ---',-,---".L T T T L-,--..--T -,-T MW ~,,;, ~ ~" ~;~ ~ ~ # #, ~ ~ ~; ~~ ~ The facilty generated a significant amount of electrical energy on this hot day, but its output fell substantially before Avista's load felL. Therefore Avista's peak need for non-solar resources was simply shifed from hour ending 17 (4:00p-S:OOpm) to hour ending 22 (9:00p-10:00p). A 13.7% reduction was achieved. A similar analysis was completed by the Northwest Power and Conservation Council's (NPCC) 6th Power Plan using the expected solar output of southern Idaho. NPPC's analysis revealed an even smaller peak reduction of 9%. The same analysis performed for the winter, using both Avista's and the NPCC's solar profiles, found that during the winter solar wil provide no peak capacity reduction. PageS CERTIFICATE OF SERVICE I hereby certify that on this 18th day of January 2011, true and correct copies of the foregoing Reply Comments of A vista Corporation were delivered to the following persons via EmaiL. Jean Jewell Idaho Public Utilities Commission 472 W. Washington St. Boise, ID 83702 Email: jean.jewell(£puc.idaho.gov Dean J. Miler, Esq. McDevitt, & Miler, LLP PO Box 2564 Boise, ID 83701-2564 j oe(£mcdevitt -miler .com Daniel E. Solander Senior Counsel Rocky Mountain Power 201 S. Main Street, Suite 2300 Salt Lake City, UT 84111 Email: Daniel.solander(£pacificorp.com Donovan E. Walker Lisa Nordstrom Idaho Power Company PO Box 70 Boise, ID 83707-0070 Email: dwalker(£idahopower.com lnordstrom(£idahopower .com Ted S. Sorenson, P.E. Sorenson Engineering, Inc. 5203 South 11 th East Idaho Falls, ID 83404 Email: ted(£sorenson.net Page I-CERTIFICATE OF SERVICE Kris Sassar Deputy Attorney General Idaho Public Utilities Commission 472 W. Washington St. Boise, ID 83702 Email: kris.sassar(ßpuc.idaho.gov Peter Richardson Gregory M. Adams Richardson & O'Leary 515 N. 27th St. PO Box 7218Boise, ID 83702 Email: peter(£richardsonandoleary.com greg(£richardsonandoleary.com Ted Weston ID Regulatory Affairs Manager Rocky Mountain Power 201 S. Main Street, Suite 2300 Salt Lake City, UT 84111 Email: ted.weston(£pacificorp.com R. Greg Ferney Mimura Law Offices, PLLC 2176 E. Franklin Rd., Suite 120 Meridian, ID 83642 Email: greg(£mimuralaw.com Robert D. Kah Executive Director Northwest and Intermountain Power Producers Coalition 1117 Minor Ave., Suite 300 Seattle, W A 9810 Email: rkahn(£nippc.org Glenn Ikemoto Margaret Ruger Idaho Windfarms, LLC 672 Blair Ave. Piedmont, CA 94611 E-mail: glenni(genvisionwind.com Margaret(genvisionwind.com Shelley M. Davis Barker Rosholt & Simpson, LLP 1010 W. Jefferson St., Ste. 102 P.O. Box 2139 Boise, ID 83701-2139 Email: smd(gidahowaters.com Paul Marin Intermountain Wind, LLC PO Box 353 Boulder, CO Email: paulmarin(gintermountainwind.com Ronald L. Wiliams Wiliams Bradbury, P.C. 1015 W. Hays St. Boise ID, 83702 Email: .ron(gwillamsbradbury.com Dana Zentz VP, Summit Power Group, Inc. 2006 E. Westminster Spokane, W A 99223 Email: dzentz(gsuminitpower.com James Carkulis Managing Member EXERGY DEVELOPMENT GROUP OF IDAHO,LLC 802 West Banock Street, Ste. 1200 Boise, Idaho 83702 Email:jcarkulis(gexergydevelopment.com Page 2-CERTIFICATE OF SERVICE Thomas H. Nelson Attorney for Renewable Energy Coalition PO Box 1211 Welches, OR 97067-1211 Email: nelson(gthnelson.com Bil Piske, Manager Interconnect Solar Development, LLC 1303 E. Carter Boise, ID 83706 Email: bilpiske(gcableone.net Bil Brown, Chair Board of Commissioners of Adams County, Idaho PO Box 48 Council, ID 83612 Email: dbbrown(gfrontiernet.net Scott Montgomery President, Cedar Creek Wind, LLC 668 Rockwood Drive North Salt Lake, Uta 84054 Email: scott(gwesternenergy.us Wade Thomas General Counsel, Dynamis Energy 776 E. Riverside Drive, Suite 15 Eagle, ID 83616 Email: wthomas(gdynamisenerg.com Robert A. Paul Grand View Solar II 15960 Vista Circle Desert Hot Springs, CA Email: robertapaul(ggmaiL.com John R. Lowe Consultant to Renewable Energy Coalition 12050 SW Tremont Street Portland, OR 97225 Email: jravenesanmarcosêyahoo.com Twin Falls Canal Company c/o Brian Olmstead, General Manager P.O. Box 326 Twin Falls, Idaho 83303-0326 Email: olmsteadêtfcanal.com Page 3-CERTIFICATE OF SERVICE Don Sturevant Energy Director 1. R. Simplot Company ONE CAPITAL CENTER 999 Main Street, P.O. Box 27 Boise, Idaho 83707-0027 Email: don.sturtevantêsimplot.com North Side Canal Company c/o Ted Diehl, General Manager 921 N. Lincoln St. Jerome, Idaho 83338 Email: nscanalêcableone.net flMichael G. Andrea