20141121press release.pdf

Case No. AVU-G-14-03, Order No. 33129
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Commission taking comments on Avista natural gas plan

BOISE (Nov. 21, 2014) – Avista Utilities’ northern Idaho customers have until Dec. 16 to submit
comments regarding Avista’s long-range plan to meet customer demand for natural gas over
the next 20 years. The company’s Integrated Resource Plan (IRP) is updated every two years.

Customer demand remains low, thus Avista does not anticipate a need to acquire additional
resources beyond what it already provides. Demand is down due partly to the recession, while
the availability of natural gas increases because of the abundant supply of shale gas. The
company anticipates an annual growth in customer demand of only 0.7% annually.

However, there are enough uncertainties regarding future natural gas supply and price that the
company’s plan outlines a number of scenarios and how it would respond to each one. The
uncertainties that could impact demand for natural gas include 1) the amount of liquefied
natural gas (LNG) exports, 2) the market for natural gas vehicles and 3) the amount of increased
natural gas that may be needed for electric generation.

Existing and new LNG facilities are looking to export low-cost North American gas to higher-
priced Asian and European markets, the Avista IRP states. In Canada, 16 LNG export projects are
in various stages of permitting and there are two proposed terminals in Oregon. “LNG exporting
has the potential to alter the price, constrain existing pipeline networks, stimulate development
of new pipeline resources, and change flows of natural gas across North America,” the IRP
states.

Avista claims it has a diversified portfolio of gas supply resources, including contracts to buy gas
from several supply basins, stored gas and firm capacity rights on six pipelines.

The company’s identifies a number of steps it will take in its “action plan,” to address future
concerns:

 Monitor demand for indications of deviations from expected growth and provide a
report twice yearly to commission staff on forecasted customer growth and use per
customer as compared to actual growth.
 Continue to monitor supply-side resource trends including the availability and price of
natural gas to the region, LNG exports, Canadian natural gas supply and consumption,
and the availability of storage infrastructure.
 Meet regularly with commission staff to provide information on market activities and
significant changes in the IRP’s assumptions or natural gas procurement practices.

Comments are accepted via e-mail through Dec. 16, 2014, by accessing the commission’s
Website at www.puc.idaho.gov and clicking on "Case Comment Form,” under the “Consumers”
heading. Fill in the case number (AVU-G-14-03) and enter your comments. Comments can also
be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone].

Copies of Avista’s IRP, along with commission orders and other documents related to this case,
are available on the commission’s Website. Click on “Open Cases” under the “Gas” heading and
scroll down to the above case number.

###