20040604Notice of Filing.pdf

Office of the Secretary
Service Date
June 4, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE FILING BY A VISTA
CORPORATION DBA A VISTA UTILITIES OF
ITS 2003 NATURAL GAS INTEGRATED
RESOURCE PLAN (IRP).
CASE NO. AVU-03-
NOTICE OF FILING
NOTICE OF COMMENT
DEADLINE
YOU ARE HEREBY NOTIFIED that on December 30, 2003, A vista Corporation
dba Avista Utilities (Avista; Company) filed its year 2003 natural gas Integrated Resource Plan
(IRP) with the Idaho Public Utilities Commission (Commission). The Company s filing
complies with the Commission direction in Order No. 25342, Case No. GNR-93-
(reference PURP A Section 303(b )(3), Energy Policy Act of 1992). Pursuant to the
Commission s Order, the Company is required to file every two years.
Integrated Resource Planning, the Company states, is a comprehensive, long-range
planning tool that fully integrates forecasted energy requirements with potential energy
resources. The process determines the most cost-effective means for the Company to meet
projected firm load requirements.
The Company s Integrated Resource Plan is presented in a combined format to
provide the reader with an overall view of the Company s total natural gas operations and
planning processes. In addition to Idaho, the Company s IRP is filed with the regulatory
authorities in Washington and Oregon. A vista Utilities prepares its natural gas forecasts
concurrently with its electric operations forecast where electricity and natural gas are both
provided to customers, thus utilizing common assumptions for both energy products.
Avista s 2003 natural gas IRP addresses the following subject areas: natural gas sales
forecast demand side management, supply side resources, distribution planning, integrated
resource portfolio, public involvement and action plan.
A vista s gas and electric energy efficiency activities in Idaho and Washington have
been funded under a Tariff Rider mechanism since 1995. This allows for the funding of energy
efficiency activities without creating a regulatory asset. The gas Tariff Rider is currently set at
5%. This funding mechanism yields approximately $1 million in annual revenues. The four
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year (2002-2005 inclusive) business plan calls for combined gas and electric DSM expenditures
to be limited to approximately 62% of Tariff Rider revenues.
Electric and gas DSM programs are subdivided into three portfolios: non-residential
residential and limited income. Within the non-residential portfolio there is a heavy reliance
upon site specific calculations of energy savings. Residential segment gas DSM is composed of
prescriptive programs. Prescriptive residential gas efficiency programs for programmable
thermostats, high-efficiency gas furnaces, high-efficiency gas water heating and weatherization
(duct, floor, wall, ceiling and attic) are currently available. Qualified limited income customers
are eligible for incentives implemented through five separate community action program (CAP)
agencies within the A vista service territories.
The supply options of A vista s integrated resource portfolio consist of various
components. These include firm and non-firm supplies contracted for on a long-term and short-
term basis, firm and interruptible transportation on seven interstate pipelines, and three storage
services. A diversity of delivery points and load requirements adds to the options available to
meet customer needs. The utilization of these components varies depending on demand and
operating conditions.
The Company notes that it entered into an agreement with A vista Energy in 1999 to
have A vista Energy manage all the supply and transportation needs of A vista Utilities (except
California). The pricing and sharing structures vary between the states. The current mechanism
is approved in Oregon and Idaho until March 31 , 2005 and until January 29, 2004, in
Washington. At the time of its IRP filing, A vista was awaiting the WUTC Order to determine
the future status of the "benchmarking" mechanism.
In 2000, the industry experienced the highest prices ever seen. In response, Avista
Utilities, through Avista Energy, has established a schedule to lock-in hedges and volumes for
price stability. The hedging schedule provides for both structure and flexibility for both timing
and volumes. A vista has established a base line that approximately 50% of annual monthly loads
will be hedged prior to entering into the heating season, that being November 15 , with fixed
priced natural gas.
The Company in its resource management activities also considers other potential
resources. These potential resources include those requiring physical assets and those dependent
upon contractual or financial arrangements, e., Jackson Prairie Storage Project; pipeline
capacity; capacity release; additional storage facilities. The Company holds several long-term
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contracts for supplies from three separate supply basins. These supplies are for annual and
seasonal core customer needs. The Company does not make long-term firm commitments to
serve interruptible customers.
A vista contends that its firm and interruptible transportation contracts provide the
Company with sufficient available capacity to meet current and future core load demands. Based
on the current forecast, the Company s north operating division (Washington and Idaho) will
need to acquire additional transportation by the 2007/2008 heating season. As reflected in its
filing, the Company s strategy is to contract for a reasonable amount of transportation to serve
firm customers should a designed peak day occur in a seven- to ten-year period. Too much firm
transportation could keep the Company from achieving its goal of being a low-cost energy
provider. The ability to release capacity, however, acts to offset the cost of holding under-
utilized capacity. Too little firm transportation impairs the Company s goal of being a reliable
energy provider.
A vista s analysis and selection of resource options in the context of the IRP for its
natural gas operations as well as the resulting strategies employed to develop an Integrated
Resource Plan are comprised of:
Resource options summary
Gas resource model
Analysis framework
Weather data
Avoided cost
Environmental externalities
Portfolio integration
The foundation for the selection of resources for the Company s integrated resource portfolio is
the annual and peak day load forecast requirements.
The objective of Avista s 2003 Action Plan is to continue to further integrate the
objectives of integrated resource planning and least cost planning into the Company s daily
operations. The 2003 Action Plan is focused on six key areas: sales forecasting;
modeling/forecasting; supply/capacity; DSM; distribution planning and public involvement.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company
filing in Case No. A VU-03-2 and finds it reasonable to establish the following schedule for
comment on A vista s 2003 Natural Gas Integrated Resource Plan:
Friday, June 25 , 2004 Deadline for filing written comments
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NOTICE OF COMMENT DEADLINE
YOU ARE FURTHER NOTIFIED that the Application and submitted documents are
available for public inspection during regular business hours at the Commission s office and at
the Idaho Offices of A vista Corporation dba A vista Utilities, or they may be viewed
electronically at www.puc.state.id.by clicking on "File Room" and "Gas Cases.Written
comments concerning this Application and the Company s filing should be mailed to the
Commission and the Company at the addresses reflected below:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Street Address for Express Mail:
RICHARD T. WINTERS
SR. NATURAL GAS PLANNING ANALYST
VISTA CORPORATION
1411 EAST MISSION
PO BOX 3727
SPOKANE, WA 99220-3727
E-mail: dick.winters~avistacorp.com
472 W WASHINGTON ST
BOISE, ID 83702-5983
All comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.state.id.. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to the Applicant at the e-mail address listed
above.
DATED at Boise, Idaho this 'f-f4t day of June 2004.
VldlN:A VUGO302 sw
NOTICE OF FILING
NOTICE OF COMMENT DEADLINE