Avista Corporation · NYSE:AVA
Avista — Corporate Update (August 2021)
37 slides from Avista's corporate update, Aug 17, 2021
Slide 1: Clean Energy Implementation Plan Introduction
Clean Energy Implementation Plan introduction August 17, 2021 Annette Brandon
Slide 2: 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 at 509-495-2255 for questions and comments • Some processes are taking longer remotely • Virtual IRP meetings will continue until we are back in the office
Slide 3: 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 4: Follow up from 07/15/21 CEIP Meeting
Follow up from 07/15/21 CEIP Meeting Notes posted to webpage with all Q&As captured Renewable Energy Credits Renewable Energy Credit/Certificate video emailed and posted to webpage at myavista.com/ceta Several Comments on ease of understanding for technical aspects Definition of Terms prov
Slide 5: 2021 CEIP Public Participation Schedule
2021 CEIP Public Participation Schedule • Meeting 2: Thursday, June 17, 2021 – Review CEAP targets, customer benefit indicators, breakout groups for Equity Advisory Group and Customer/Advisory Groups • Meeting 3: Thursday, July 15, 2021 – Review customer benefit indicators and measurement metrics, r
Slide 6: Today's Agenda
Today’s Agenda Time Topic Presenter 9:00 Introduction and Welcome Annette Brandon CEIP Project Lead 9:10 Public Participation Review Annette Brandon CBI and Resource Selection CEIP Project Lead Ryan Finesilver Manager of Energy Efficiency James Gall IRP Manager 9:50 Break 9:55 Cost Cap Analysis Jame
Slide 7: Clean Energy Implementation Plan Public Participation Feedback
Clean Energy Implementation Plan Public Participation Feedback August 17, 2021 Annette Brandon
Slide 8: Public Participation – What was the ask?
Public Participation – What was the ask? Source: May 2021 Avista CEIP Meeting #1
Slide 9: Public Participation Inputs
Public Participation Inputs Identify Named Benefits/Barriers “Equity Customer Benefit Indicators CEIP Communities Areas” Highly Impacted Communities Benefits of Clean Energy Measurable Resource Mix Vulnerable Populations Prioritization Accountable Lowest Reasonable Cost Barriers to Participation Res
Slide 10: Highly Impacted Communities and Vulnerable Populations (Named Communities)
Highly Impacted Communities and Vulnerable Populations (“Named Communities”) Total represents 47 areas or 32% of total Washington Service Territory. • Highly Impacted Communities • Designated by DOH EAG identified additional • 34 Census Tracts (25%) characteristics for vulnerable populations • Vulne
Slide 11: Who else might have the hardest time reaching benefits?
Who else might have the hardest time reaching benefits? Groups identified help inform other “vulnerable population” characteristics 5
Slide 12: Developing Customer Benefit Indicators – From 86 touchpoints to 12 Final
Developing Customer Benefit Indicators – From 86 touchpoints to 12 Final How could the transition to clean energy benefit (or unintentionally harm) customers? Affordability Environmental Access to clean energy Energy security, resiliency Community/economic development Health and well-b
Slide 13: Customer Benefit Indicators
Customer Benefit Indicators Customer Benefit Indicator and Evaluation Metrics Participation in Company programs • Named Communities AND all customers Number of Households Energy Burdened • Reduction in number of households with energy burden > 6% Availability of methods/modes of outreach and communi
Slide 14: Clean Energy Implementation Plan Resource Review
Clean Energy Implementation Plan Resource Review August 17, 2021 Annette Brandon and James Gall
Slide 15: Specific Actions Renewable Energy
Specific Actions Renewable Energy Interim Clean Energy Targets NAMED OUTAGE PROXIMITY OF COMMUNITY DURATION ENERGY CLEAN ENERGY GENERATION 10-year Resource Acquisition (Average Megawatts) OUTDOOR AIR GREENHOUSE ENERGY BURDEN QUALITY GAS EMISSIONS 9
Slide 16: Specific Actions Energy Efficiency
Specific Actions Interim Clean Energy Targets Energy Efficiency Named Community Clean Energy Number of households energy burdened Outdoor Air Quality 2022-2025 Energy Efficiency Savings Type Greenhouse Gas Emissions Participation in Company Programs Availability of Methods/Modes of Communication 10
Slide 17: Energy Efficiency – Programs Additional Info
Energy Efficiency – Programs Additional Info Programs Specific to Programs Specific to Named Communities all Customers • Site Specific (nonresidential) • Low Income Programs • Prescriptive Lighting (nonresidential) • Multifamily direct install • Prescriptive HVAC (nonresidential • Community Energy •
Slide 18: Specific Actions Demand Response
Specific Actions Demand Response Named Availability of Community Clean methods/modes No Demand Response Targets in 2022- Energy of communication 2025 Time Period. However, the following is in development: Participation in Number of Time of Use Company Households Opt In programs Energy Burdened
Slide 19: Specific Actions Other Company Initiatives
Chapter 4 – Specific Actions Other Company Initiatives Named Community Investments Additional Funding for Named Communities Increase % of grants for those serving or located Avista Foundation Grants within named communities Diversity, Equity and Inclusion Commitment to supplier and employee diversit
Slide 20: Incremental Cost of CETA Compliance
Incremental Cost of CETA Compliance James Gall, IRP Manager IRP Manager CEIP Public Meeting, August 17, 2021
Slide 21: Incremental Cost and Alternative Compliance
Incremental Cost and Alternative Compliance • CETA requires Avista to estimate rate payer costs for two resource portfolios – Alternative Lowest Reasonable Cost • Portfolio without specific clean energy actions – Reasonably Available • Portfolio meeting the requirements of CETA (i.e. CEIP actions) •
Slide 22: Incremental Cost of Compliance ($ millions)
Incremental Cost of Compliance ($ millions) Alternative Lowest Reasonable Cost Portfolio Item 2021 2022 2023 2024 Total Weather Adjusted Sales Revenue 555.3 605.9 626.3 653.9 Incremental 2% of WASR 11.1 12.1 12.5 13.1 Compounding 4.0 3.0 2.0 1.0 Four-Year Incremental Cost Cap 44.4 36.4 25.1 13.1 118
Slide 23: Incremental Cost of Compliance ($ millions)
Incremental Cost of Compliance ($ millions) Reasonably Available Portfolio Item 2022 2023 2024 2025 Total/Avg Alternative Lowest Reasonable Cost WASR 605.9 626.3 653.9 682.8 Reasonably Available Portfolio WASR 605.9 626.3 661.2 704.3 Incremental Cost 0.0 0.0 7.3 21.5 28.8 Annual Percentage Increase
Slide 24: Incremental Cost of Compliance ($ millions)
Incremental Cost of Compliance ($ millions) Excludes REC and Specified Sales Item 2022 2023 2024 2025 Total/Avg Reasonably Available WASR 605.9 626.3 661.2 704.3 Value of REC sales 6.0 6.2 6.2 8.2 Revised WASR 611.8 632.5 667.4 712.5 Alternative Lowest Reasonable Cost WASR 605.9 626.3 653.9 682.8 In
Slide 25: Clean Energy Implementation Plan Survey Results
Clean Energy Implementation Plan Survey Results August 17, 2021 Annette Brandon
Slide 26: Survey Overview
Survey Overview Intent of Survey was to gather additional input from customers who may not have been able to attend our CEIP Public Participation Meeting Series 2600 Customers Took Survey EQUITY AREAS 36 Questions Affordability Community / Top Feedback (in order of importance) and Availability Envir
Slide 27: Customer Benefit Indicators
Customer Benefit Indicators Equity Area Customer Benefit Indicator Affordability • Participation in Company Programs • Number of Energy Burdened Households Access to Clean Energy • Availability of methods/modes of outreach and communication methods Community Development • Named Community Investments
Slide 28: Survey Results Benefits and Challenges
Survey Results Common Themes: Benefits and Challenges Climate Change/Environmental Impact Energy Cost (both benefit and challenge) Security/Dependability Thinking about our transition to clean energy, what potential benefits do you think are most Thinking about our transition to clean energy, what i
Slide 29: Survey Results - Public Health & Environment
Survey Results - Public Health & Environment How important are public health benefits to you? How important are environmental benefits to you? 50.00% 60.00% 45.00% 50.00% 40.00% 35.00% 40.00% 30.00% 25.00% 30.00% 20.00% 20.00% 15.00% 10.00% 10.00% 5.00% 0.00% 0.00% Very important Important Somewhat
Slide 30: Survey Results – Economic and Affordability
Survey Results – Economic and Affordability How important are economic benefits How important are affordability benefits to you? to you? 45.00% 50.00% 40.00% 45.00% 35.00% 40.00% 30.00% 35.00% 25.00% 30.00% 20.00% 25.00% 15.00% 20.00% 10.00% 15.00% 5.00% 10.00% 0.00% 5.00% Very important Important S
Slide 31: Survey Results – Participation and Access
Survey Results – Participation and Access How important are clean electricity How important are accessibility participation benefits to you? benefits to you? 40.00% 40.00% 35.00% 35.00% 30.00% 30.00% 25.00% 25.00% 20.00% 20.00% 15.00% Responses 15.00% 10.00% 10.00% 5.00% 5.00% 0.00% Very important I
Slide 32: Survey Results – Resiliency and Comfort
Survey Results – Resiliency and Comfort How important are energy resiliency How important are comfort and benefits to you? satisfaction benefits to you? 50.00% 40.00% 45.00% 35.00% 40.00% 30.00% 35.00% 30.00% 25.00% 25.00% 20.00% 20.00% 15.00% 15.00% 10.00% 10.00% 5.00% 5.00% 0.00% 0.00% Very import
Slide 33: Survey Results: How might we help you participate in clean energy
Survey Results How might we help you participation in clean energy How can we help you (and others) participate in clean energy programs? Select all that apply. 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Help me Help me Design programs Provide (or Simplify the Have an Avista Reduc
Slide 34: Clean Energy Implementation Plan Next Steps
Clean Energy Implementation Plan Next Steps August 17, 2021 Annette Brandon
Slide 35: Next Steps - Reporting
Next Steps - Reporting CEIP Draft Plan Filed August 16,2021 • Stakeholder Comment Period • Customer Comments • via email at ceta@avistacorp.com • or telephone 509-495-4324 Public Outreach Meeting September 2, 2021 • Educational in nature • Overview of Process • Specific Resource Breakout Rooms CEIP
Slide 36: Next Steps – Implementation
Next Steps – Implementation This is an iterative process which may change as we go through the process and gather more information. CEIP Implementation Phase 2022-2025 • CBIs will be tracked and evaluated • Advisory Groups will continue to meet, evaluate and implement programs and investments • EAG
Slide 37: 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 • Ongoing – Quarterly as needed Myavista.com/ceta Comment Directly to Washington Utilities and Transportation Commission • www.utc.wa.gov/consumers/submit-comment 4