20080404final_order_no_30523.pdf

Office of the Secretary
Service Date
April 4, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE FILING BY
VISTA CORPORATION DBA A VISTA
UTILITIES OF ITS 2007 NATURAL GAS
INTEGRATED RESOURCE PLAN (IRP)ORDER NO. 30523
CASE NO. A VU-07-
On December 28, 2007, Avista Corporation dba Avista Utilities (Avista) filed its
2007 Natural Gas Integrated Resource Plan (IRP) with the Idaho Public Utilities Commission
(Commission). On January 23 , 2008, the Commission issued a Notice of the Company s IRP
filing and established a March 14 2008 comment deadline. The Commission Staff was the only
party to submit comments. Staff recommends that the Company s IRP be acknowledged and
accepted.
The Commission has completed its review of the Company s 2007 Natural Gas
Integrated Resource Plan and has considered the filings of record in Case No. A VU-07-
including the comments and recommendations of the Commission Staff. The Company s IRP
identifies a strategic gas-supply portfolio that is intended to meet the Company s future demand
requirements. Resource options include both supply-side and demand-side measures. By this
Order, the Commission accepts the filing and acknowledges that it satisfies the Commission
requirements as set forth in Order No. 25342, Case No. GNR-93-2 (Reference PURPA
303(b)(3), Energy Policy Act of 1992). The Company is apprised that the Commission
acknowledgement is not to be interpreted as approval, or as judgment of prudence of the IRP or
the prudence of following or not following the plan. The Commission appreciates the
Company s efforts and hopes that preparation of the document proved to be of operational
benefit to the Company.
Avista in its IRP states that it has sufficient natural gas resources in Washington and
Idaho until 2014-2015. Peak-day resource deficits begin in those years and are driven primarily
by projected average demand growth of2% per year and average natural gas customer growth of
2.4%. Given this timing, the Company contends that it has sufficient time to carefully monitor
plan and take action on potential resource additions.
The Company s IRP identifies and establishes an Action Plan that will steer the
Company toward a risk-adjusted, least-cost method of providing service to its natural gas
ORDER NO. 30523
customers. Included in its 2008-2009 Action Plan are efforts to improve modeling, evaluation of
its planning standards, further research into supply-side resource options and goals for demand-
side management. As reflected in Avista s IRP, the Company is responding to the risk of
elevated prices and increased volatility by using a number of tools such as financial hedging and
storage.
Staff contends that the 2014-2015 deficiency identified by the Company may occur
earlier should the Company not attain its targeted DSM savings (i., 1 425 000 therms in the
first year). Staff contends further that competition for supply and increases in demand may result
in a higher commodity cost than projected by the Company.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over A vista Corporation dba
Avista Utilities, a natural gas utility, and the issues raised in Case No. A VU-07-04 pursuant to
the jurisdiction granted under Title 61 of the Idaho Code and the Commission s Rules of
Procedure, IDAPA 31.01.01.000 et seq.
ORDER
In consideration of the foregoing and as more particularly described above, the
Commission by this Order does hereby acknowledge and accept Avista s natural gas 2007
Integrated Resource Plan filing.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 30523
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this rJ.
day of April 2008.
ATTEST:
Commission Secretary
bls/O:A VU-07-04 sw
ORDER NO. 30523
ARSHA H. SMITH , COMMISSIONER