Avista acquires new resources from 2022 All Source RFP

Rhea-AI Summary

Avista has finalized two significant energy contracts aimed at enhancing its clean energy portfolio. The company will purchase approximately 100 megawatts of wind energy from a planned regional project starting by January 1, 2026, which will contribute to over 70% of its peak generating capacity being produced from non-emitting resources. Additionally, a 15-year extension has been made for energy procurement from the 282 MW Lancaster natural gas plant, ensuring reliable generation without the need for new natural gas plants. These initiatives are vital for meeting peak load capacity and renewable energy needs as outlined in Avista's 2021 Electric Integrated Resource Plan.

Positive

• New 30-year wind energy contract of 100 MW starting 2026 increases renewable generation to over 70%.
• 15-year extension for the Lancaster plant ensures reliable energy supply without new natural gas infrastructure.

Negative

• None.

Avista adds new wind to portfolio beginning 2026; renews contract for Lancaster Plant

SPOKANE, Wash., April 11, 2023 (GLOBE NEWSWIRE) -- Avista recently finalized two contracts resulting from the 2022 All Source RFP effort.

Avista completed an agreement to purchase clean energy from a planned regional wind project. The 30-year agreement is for approximately 100 megawatts beginning no later than January 1, 2026. More details related to the wind contract will be released soon. Combined with several other recent contracts signed with Chelan Public Utility District and Columbia Basin Hydro Projects for hydro resources over 70 percent of Avista’s peak generating capability will be produced from non-emitting resources in 2026.

Additionally, Avista completed a 15-year extension to our existing agreement to buy energy produced from the 282 MW Lancaster natural gas combined cycle combustion turbine owned and operated by Rathdrum Power, LLC and located in Rathdrum, Idaho. This agreement allows Avista to optimize an existing natural gas resource to ensure sufficient generating capability and ramping flexibility to reliably serve Avista’s electric customers, without adding new natural gas plants.

“These projects fill an important need for both clean energy and capacity. The new wind contract is a valuable addition to our portfolio. It will supplement two existing wind projects bringing Avista’s total wind generation to approximately 12 percent of our overall resource portfolio,” said Scott Kinney, Avista’s vice president of energy resources. “The Lancaster plant is an important asset in our resource portfolio providing cost effective reliable generation and ensuring adequate resource supply in an ever-changing energy market. The results of the RFP are important next steps to ensure affordable, reliable and clean energy for years to come.”

The contracts are the result of Avista’s 2022 All Source Request for Proposals that sought resources to meet peak load capacity, average energy, and renewable shortfalls between 2026 and 2030 as identified in the company’s 2021 Electric Integrated Resource Plan. In addition to renewable energy needs, Avista sought approximately 196 MW of winter capacity and 190 MW of summer capacity by 2030 for reliability.

About Avista Utilities
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides electric service to 411,000 customers and natural gas to 377,000 customers. Our service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.7 million. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 17,000 customers in the city and borough of Juneau, Alaska. Our stock is traded under the ticker symbol “AVA”. For more information about Avista, please visit www.avistacorp.com.

This news release contains forward-looking statements regarding the company’s current expectations. Forward-looking statements are all statements other than historical facts. Such statements speak only as of the date of the news release and are subject to a variety of risks and uncertainties, many of which are beyond the company’s control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company’s and the Quarterly Report on Form 10-Q for the quarter ended Dec. 31, 2022, and its Annual Report on Form 10-K for the year ended Dec. 31, 2022.

Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.

SOURCE: Avista Corporation

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FAQ

What are the details of Avista's new wind energy contract?

Avista's new wind energy contract is a 30-year agreement for approximately 100 megawatts of clean energy, starting by January 1, 2026.

How will the new contracts impact Avista's energy generation?

The new contracts will increase Avista's non-emitting resource generation to over 70% of its peak capacity, enhancing its clean energy portfolio.

What is the significance of the Lancaster plant agreement for Avista?

The Lancaster plant agreement extends energy procurement for 15 years, ensuring reliable generation and flexibility without requiring new natural gas plants.

When will the new wind energy project start producing energy?

The new wind energy project is expected to begin producing energy no later than January 1, 2026.

What is the purpose of Avista's 2022 All Source RFP?

The 2022 All Source RFP aimed to secure resources to meet peak load capacity and renewable energy needs identified in Avista's 2021 Electric Integrated Resource Plan.