Avista Corporation · NYSE:AVA
Avista — Corporate Update (May 2021)
64 slides from Avista's corporate update, May 20, 2021
Slide 1: 2021 Clean Energy Implementation Plan Advisory Group Meeting No. 1 Agenda
2021 Clean Energy Implementation Plan Advisory Group Meeting No. 1 Agenda Thursday, May 20, 2021, 1:00 – 3:30 pm PST Virtual Meeting on Zoom Topic Time Staff Welcome and Introductions 1:00 Lyons Avista Overview 1:15 Kinney Clean Energy Transformation Act Overview 1:45 Bonfield Break 2:05 2020 – 2025
Slide 2: 2021 Clean Energy Implementation Plan Introduction
2021 Clean Energy Implementation Plan Introduction John Lyons, Ph.D. First Advisory Committee Meeting May 20, 2021
Slide 3: Meeting Guidelines
Meeting Guidelines • Avista CEIP team is still working remotely for a few more months, but is available by email (ceta@avistacorp.com) and phone for questions and comments • Some processes are taking longer remotely • Virtual IRP meetings will continue until we are back in the office and able to hol
Slide 4: Virtual Meeting Reminders
Virtual Meeting Reminders • Please mute mics unless speaking or asking a question • Use the Zoom chat box to write questions or comments or let us know you would like to say something • Respect the pause • Please try not to speak over the presenter or a speaker who is voicing a question or thought •
Slide 5: Sequence of Events
Sequence of Events Clean Energy Action Plan (CEAP) Sets 10-Year targets for resources based on the Integrated lowest reasonable cost plan including: Resource Plan • Societal costs; (04.2021) • Clean energy requirements; and • Reliability Requirements. CEAP Clean Energy Implementation Plan (CEIP) (04
Slide 6: CEIP Public Participation
CEIP Public Participation • The public process piece of the CEIP includes input the Company’s implementation of its Clean Energy Action Plan • Wide range of participants involved in all or parts of the process – Ask questions, provide feedback, represent Named Communities • Open forum while balancin
Slide 7: 2021 CEIP Public Participation Schedule
2021 CEIP Public Participation Schedule • Meeting 2: Thursday, June 17, 2021 – Review CEAP targets, customer benefit indicators, renewable energy credit, breakout groups for Equity Advisory Group. • Meeting 3: Thursday, July 15, 2021 – Review customer benefit indicators and associated resource mix,
Slide 8: Today's Agenda
Today’s Agenda 1:00 Welcome and Introductions, Lyons 1:15 Avista Overview, Kinney 1:45 Clean Energy Transformation Act Overview, Bonfield 2:05 Break 2:15 2020 – 2025 Clean Energy Actuals and Forecast, Gall 2:45 Named Communities Presentation, Gall 3:15 Public Participation Overview & Discussion, Bra
Slide 9: Avista Overview
Avista Overview Scott Kinney, Director of Power Supply CEIP Meeting 1, May 20, 2021
Slide 10: About Avista
About Avista On March 13, 1889, a small group of Spokane businessmen and industrialists, recognizing the potential of the Lower Spokane Falls to power the homes and businesses of the city’s 20,000 people, formed The Washington Water Power Company. 2
Slide 11: 1890: Hydroelectric
1890: Hydroelectric 3 Monroe Street Dam powerhouse, Spokane, Washington.
Slide 12: 1999: Avista Corp.
1999: Avista Corp. 4 Avista Utilities Mission campus, Spokane, Washington.
Slide 13: 1,700 Employees
1,700 Employees 5
Slide 14: Avista's Service Area
Avista’s Service Area 6 (Source: 2020 Quick Facts)
Slide 15: Service Area
Service Area states 4 square miles 30,000 population 1,700,000 electric customers 389,911 natural gas customers 357,433 7 (Source: 2020 Quick Facts)
Slide 16: By the Numbers
By the Numbers 2,770 19,100 8,000 Miles Miles Miles transmission lines distribution lines natural gas distribution mains 8 (Source: 2020 Quick Facts)
Slide 17: Supply Mix
Supply Mix wind / 4% biomass / 2% coal / 9% natural gas / 34% hydroelectric / 51% 9 (Source: 2020 Quick Facts)
Slide 18: 8 Hydroelectric Facilities: 1,049.1 MW
8 Hydroelectric Facilities: 1,049.1 MW 10 Long Lake Dam, Lincoln/Stevens Counties, Washington. (Source: 2020 Quick Facts)
Slide 19: 7 Thermal Generation Plants: 1,882.4 MW
7 Thermal Generation Plants: 1,882.4 MW 11 Coyote Springs Power Generation Facility, Boardman, Oregon. (Source: 2020 Quick Facts)
Slide 20: 2012: Wind
2012: Wind 12 Palouse Wind Project, Oakesdale, Washington.
Slide 21: 2015: Solar
2015: Solar 13 Lind Solar Farm, Lind, Washington.
Slide 22: 2019: Smart Meter Deployment
2019: Smart Meter Deployment 14 Washington Service Area.
Slide 23: Maintaining Balance is Important
Maintaining Balance is Important Affordability Reliability Environment 15
Slide 24: Avista's Clean Electricity Goal
Avista’s Clean Electricity Goal Avista’s goal is to serve our customers with 100 percent clean electricity by 2045 and to have a carbon-neutral supply of electricity by the end of 2027 We will maintain focus on reliability and affordability Natural gas is an important part of a clean energy futu
Slide 25: Clean Natural Gas Goals
Clean Natural Gas Goals • We are committed to reducing greenhouse gas emissions in our natural gas business too. Our goal is to serve our customers with 100% carbon neutral gas by 2045 and to have a 30% reduction in greenhouse gas emissions by 2030 • Achieving reductions requires an “all-of-the-abov
Slide 26: One Vision: Better energy for life.
One Vision Better energy for life. 18
Slide 27: Clean Energy Transformation Act (CETA)
Clean Energy Transformation Act (CETA) Shawn Bonfield, Sr. Manager of Regulatory Policy & Strategy May 20, 2021
Slide 28: CETA Overview
CETA Overview
Slide 29: CETA: A Brief Overview
CETA: A Brief Overview Senate Bill 5116 – passed by legislature in 2019 Applies to all electric utilities in WA and sets specific milestones to reach required 100% clean electric supply • By 2025 – eliminate coal-fired resources from serving WA customers (RCW 19.405.030) • By 2030 – electric supply
Slide 30: CETA: Additional Details
CETA: Additional Details Utilities must show that the all customers benefit from the transition to clean energy. • Equitable distribution of energy and nonenergy benefits and reductions of Equity burdens to vulnerable populations and highly impacted communities Public Health • Long term and short te
Slide 31: Source: WA Department of Commerce
Source: WA Department of Commerce 5
Slide 32: Oct 2021
Oct 2021 6 Source: WA Department of Commerce
Slide 33: CETA and Equity
CETA and Equity
Slide 34: Context for Equity in CETA
Context for Equity in CETA The heart of equity work in CETA is ensuring that all customers are benefitting from the transition to clean energy, with special emphasis placed on “highly impacted communities” and “vulnerable populations”. Vulnerable Populations Highly Impacted Communities Communities t
Slide 35: Equitable Distribution of Energy & Nonenergy Benefits
Equitable Distribution of Energy & Nonenergy Benefits • CETA directs utilities to ensure “that all customers are benefiting from the transition to clean energy: Through the equitable distribution of energy and nonenergy benefits.” • The idea of energy and nonenergy benefits and environmental burdens
Slide 36: Equity Advisory Group
Equity Advisory Group WAC 480-100-655 (2) – A utility must maintain and engage an external equity advisory group of stakeholders to advise the utility on equity issues. Advise on Equity Issues: Vulnerable Population Designation Equity Indicator Development Data Support and Comprised of: develo
Slide 37: Equity Advisory Group Role
Equity Advisory Group Role Equity Advisory Group Equity Areas: indicators Access to Clean Energy Community Engagement & Community Health & Safety defined within each area Energy Affordability Participation Improvement Advisory Groups: TAC, EAAG, TE, EEAG, EAAG EEAG, TAC, EAAG EEAG, TAC, Other TAC, E
Slide 38: Customer Benefit Indicators
Customer Benefit Indicators Customer Benefit Indicators are required to ensure the equitable distribution of energy- and non-energy benefits and reductions of burdens to highly impacted communities and vulnerable populations. We need to engage the public, in coordination with advisory groups, in the
Slide 39: Customer Benefit Indicators Examples
Customer Benefit Indicators Examples 13
Slide 40: Energy Efficiency and Energy Assistance
Energy Efficiency and Energy Assistance
Slide 41: Energy Efficiency & Demand Response
Energy Efficiency & Demand Response In planning to meet projected demand an electric utility must pursue: Cost effective Reliable Feasible conservation and energy resources Demand Response 15
Slide 42: Energy Assistance for Low-Income Households
Energy Assistance for Low-Income Households • An electric utility must make programs and funding available for energy assistance to low-income households by July 31, 2021… To the extent practicable, priority must be given to low-income households with a higher energy burden. • Each electric utility
Slide 43: 2020 Clean Energy Estimates
2020 Clean Energy Estimates James Gall, IRP Manager IRP Manager CEIP Public Meeting, May 20, 2021
Slide 44: Key Issues
Key Issues • Clean energy accounting is still being defined. – Otherwise known as the “use” issue. – WUTC/Commerce may determine use by the end of 2021. • Avista currently sells both RECs and specified energy - how will this be accounted for prior to 2030? • How much clean energy should Washington c
Slide 45: Terminology
Terminology • RECs: Renewable energy credits • PURPA/Customer Programs: QF facilities and direct • Retail Sales (retail electric load): Actual customer customer generation programs such as “Solar Select” sales are excluded from retail sales. – Issue: retail sales cannot be measured instantaneously -
Slide 46: 2020 Scenarios
2020 Scenarios • Scenario 1: Procured clean energy percentage • Scenario 2: Delivered clean energy by hour percentage • Scenario 3: Procured clean energy percentage (net of REC/specified sales) • Other information: – Available “RECs” from Idaho – Clean market purchases – 2022-2025 availability 4
Slide 47: Scenario 1: Procured Clean Energy
Scenario 1: Procured Clean Energy Scenario 1 • 70.2% clean energy allocated to Item Procured Clean Energy Washington. Load 5,855,586 Retail Sales 5,461,691 PURPA/Customer Prog (241,592) Net Sales 5,220,099 • With Idaho transfers of wind & biomass Net Clean Energy Hydro 3,224,185 increases to 74.6%.
Slide 48: Scenario 2: Delivered Clean Energy By Hour
Scenario 2: Delivered Clean Energy By Hour Scenario 1 Scenario 2 • Washington allocated clean energy Delivered Item Procured Clean Energy Clean Energy by Hour reduced to 66.2%. Load 5,855,586 5,855,586 Retail Sales 5,461,691 5,461,691 – 208,436 MWh are produced in excess of PURPA/Customer Prog (241,
Slide 49: Scenario 3: Procured Clean Energy (net of REC/specified sales)
Scenario 3: Procured Clean Energy (net of REC/specified sales) Scenario 1 Scenario 2 Scenario 3 Procured Delivered Clean Energy net of • Considering REC sales directly Procured Clean Energy REC/Spec Item Load Clean Energy 5,855,586 by Hour 5,855,586 Sales 5,855,586 allocated to WA; clean energy Reta
Slide 50: 2022-2025 Forecast (Uses Scenario 1 Methodology)
2022-2025 Forecast (Uses Scenario 1 Methodology) Scenario 1 IRP (Procured Clean Energy) Procured • Clean energy increases due to Item Load Clean Energy 5,855,586 2022 2023 2024 2025 a full year of Rattlesnake Flat Retail Sales 5,461,691 5,666,821 5,695,406 5,718,980 5,740,232 PURPA/Customer Prog Net
Slide 51: Highly Impacted Communities & Vulnerable Populations "Named Communities"
Highly Impacted Communities & Vulnerable Populations “Named Communities” James Gall IRP Manager CEIP Public Meeting, May 20, 2021
Slide 52: CETA Definitions
CETA Definitions (23) "Highly impacted community" means a community designated by the department of health based on cumulative impact analyses in section 24 of this act or a community located in census tracts that are fully or partially on "Indian country" as defined in 18 U.S.C. Sec. 1151. (40) "Vu
Slide 53: Methodology
Methodology • Highly Impacted Community – Identified by Washington State • FIPS code area with tribal properties https://fortress.wa.gov/doh/wtn/wtnibl/ • Score of 9 or 10 on WA Health Disparity Map • Vulnerable Populations – Identified by Avista • FIPS code area • Score of 9 or 10 on WA Health Disp
Slide 54: Vulnerable Population Characteristics
Vulnerable Population Characteristics Vulnerable Population Metric Highly Impacted Communities Metric Circled indicators are called out in CETA definitions 4
Slide 55: Qualifying Areas in Avista's Washington Electric Service Territory
Qualifying Areas in Avista’s Washington Electric Service Territory • Avista has 145 FIPS areas within its WA territory • 43 areas are Highly Impacted Communities (HIC) (30%) – Note: some areas may be removed as determined by refined mapping by the DOH. • 42 areas are Vulnerable Populations – 19 meet
Slide 56: Avista's Named Communities
Avista’s Named Communities 6
Slide 57: Should Avista Make Any Adjustments?
Should Avista Make Any Adjustments? • Should areas be added? – For Vulnerable Populations; is 9 or higher the right cut off point? • Should areas be removed? – Borderline areas- Pend Oreille/Grant County; Avista serves few customers in these areas- in some case they are non-residential – Pullman- th
Slide 58: Department of Health is Revising HIC Areas
Department of Health is Revising HIC Areas • Why is DOH revising the HIC areas? – GIS system may have incorrectly overlapped with boundaries of the FIPS codes with reservation boundaries. – DOH will send out a revised list of HIC areas. – Green “x” areas are likely to be removed as HIC areas. 8
Slide 59: Clean Energy Implementation Plan Public Participation
Clean Energy Implementation Plan Public Participation May 20, 2021
Slide 60: Public Participation
Public Participation We need your help to us ensure customers are benefiting from the transition to clean energy through the: Equitable distribution of energy and non-energy benefits and reductions of burdens to vulnerable populations and highly impacted communities; Long-term and short-term pub
Slide 61: Who will be involved?
Who will be involved? • Public Participation will include input from: Equity – Environmental justice Advisory – Health advocates Group Existing – Tribes Advisory Customers – Representatives from named Groups communities – Customers CEIP 2
Slide 62: How can you help?
How can you help? In the CEIP meetings, we will ask for input from our advisory group members and customers, in the following ways: • Review and provide insight on burdens and barriers our customers face in terms of affordability, accessibility, environmental impacts, etc. • Review and provide insig
Slide 63: How can you provide feedback?
How can you provide feedback? Contact us via telephone • 509-495-4324 Email us • ceta@avistacorp.com Participate in CEIP Meeting Series • Monthly Meetings May - September Myavista.com/ceta 2
Slide 64: Public Participation Meeting Schedule
Public Participation Meeting Schedule: Three days prior: • Zoom meeting invites will be sent out via email and posted to web • Meeting Materials will be posted to website One week following meeting: • Post-Meeting Minutes will be posted to website 2