Avista submits 2025 Electric Integrated Resource Plan
Rhea-AI Summary
Avista Corp. (NYSE: AVA) has submitted its 2025 Electric Integrated Resource Plan (IRP) to regulatory commissions in Washington and Idaho. The plan outlines the company's 20-year strategy for meeting electricity demand growth, projected at 0.9% annually with winter peak demand growing at 1.14%.
Key elements include adding new renewable resources like wind and solar by 2030, continuing energy efficiency programs that will reduce demand growth by 32% over 20 years, and implementing demand response programs to reduce peak demand by up to 4%. The company plans to issue an All-Source Request for Proposals (RFP) in May to secure both capacity and renewable resources.
The IRP confirms Avista's commitment to meet Washington's Clean Energy Transformation Act requirements for greenhouse gas neutrality by 2030. The plan also identifies the need for reliable generation resources, either through new natural gas generation or energy storage, and includes the proposed North Plains Connector transmission line as a preferred resource alternative.
Positive
- Energy efficiency programs will reduce demand growth by 32% over 20 years
- Clear path to meet Washington's Clean Energy Transformation Act requirements by 2030
- Structured plan for renewable energy expansion through wind and solar resources
Negative
- Need for significant capital investment in new generation and transmission infrastructure
- Increasing customer demand requiring additional resource acquisition
- Potential reliance on natural gas generation despite clean energy goals
Insights
The 2025 Electric IRP reveals critical strategic shifts and growth projections that warrant investor attention. The projected <percent>0.9%</percent> annual energy demand growth and <percent>1.14%</percent> winter peak demand increase signal steady revenue potential. The plan's emphasis on resource diversification through wind, solar and potential natural gas or storage solutions demonstrates a balanced approach to meeting Washington's Clean Energy Transformation Act requirements.
The <percent>32%</percent> demand reduction through efficiency programs over 20 years and <percent>4%</percent> peak demand reduction via demand response initiatives showcase strong cost management strategies. The proposed North Plains Connector transmission line and upcoming May RFP represent significant infrastructure investments that could impact capital expenditure and future earnings.
The IRP's infrastructure modernization focus and commitment to new resource acquisition present substantial capital deployment opportunities. The planned diversification into hydrogen-based fuels, nuclear and energy storage systems positions AVA strategically for long-term growth. The May All-Source RFP will be a pivotal moment for securing new generation assets and determining future capital allocation.
The emphasis on transmission upgrades, particularly the North Plains Connector, indicates significant grid enhancement investments ahead. This infrastructure expansion aligns with regional growth patterns and regulatory requirements, potentially strengthening AVA's competitive position in the Northwest utility market.
The IRP's alignment with CETA's 2030 greenhouse gas neutrality requirements and 2045 clean energy targets demonstrates strong regulatory compliance positioning. The comprehensive stakeholder engagement process, involving 75 participants and public meetings, reflects robust governance practices that typically reduce regulatory risk. The balanced approach between renewable integration and reliability maintenance through natural gas or storage options shows pragmatic regulatory strategy.
The plan's emphasis on demand-side management and efficiency programs aligns with regulatory preferences, potentially supporting favorable rate case outcomes. This regulatory alignment could facilitate smoother approval processes for future infrastructure investments and rate adjustments.
Will issue Request for Proposals (RFP) to ensure reliable service in the future
SPOKANE, Wash., Jan. 02, 2025 (GLOBE NEWSWIRE) -- Avista Utilities, an operating division of Avista Corp. (NYSE: AVA), has filed its 2025 Electric Integrated Resource Plan (IRP) with the Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission. Avista produces an electric IRP every two years detailing projected growth in electricity demand and the new resources needed to serve customers over the next 20 years.
The electric IRP balances resource requirements to meet Avista’s clean energy targets while maintaining a reliable and cost-effective resource mix. The plan includes adding new renewable resources including wind and solar through contract or ownership by the end of the decade and calls for continuing Avista’s long history of offering energy efficiency programs to help offset demand growth. To ensure adequate system supply, Avista will also need reliable generation resources including either new natural gas generation or energy storage by the end of the decade. The plan also recommends starting demand response programs designed to work with customers to lower their demand when the system is experiencing peak loads.
"Avista's 2025 Electric IRP demonstrates a continued commitment to a clean and affordable energy future for our customers," said Scott Kinney, Avista’s vice president of energy resources and integrated planning. "The IRP also reveals the importance of maintaining and modernizing current infrastructure and the need to acquire new resources to meet customer growth. To address this need, Avista will issue an All-Source Request for Proposals (RFP) in May that we expect will identify both capacity and renewable resources to ensure reliable service in the future.”
Some highlights of the 2025 IRP include:
- Due to customer growth, Avista will need to acquire additional electricity generation in the near future from renewable resources.
- Customer energy demand is expected to grow
0.9% per year and winter peak demand by1.14% per year. - Energy Efficiency reduces future demand growth by
32% over 20 years. - Demand Response programs reduce peak demand by up to
4% . - Identifies the proposed North Plains Connector transmission line as a preferred resource alternative along with other transmission upgrades in the inland northwest.
- Avista is projected to meet Washington’s Clean Energy Transformation Act (CETA) requirements to be greenhouse gas neutral with Washington’s electric supply by 2030.
- Meeting CETA’s 2045 targets will require significant energy transformation including maintaining our existing hydro system and acquiring new resources using hydrogen-based fuels, wind, solar, nuclear, and long and short term energy storage.
IRP Process
Each IRP is a thoroughly researched and data-driven document identifying a resource strategy to meet customer needs while balancing costs and risk measures with environmental goals and mandates. Avista’s professional energy analysts use sophisticated modeling tools and input from over 75 participants to develop each plan. The participants in the public process include customers, environmental organizations and business groups, elected officials and utility commission staff. Avista also hosted two public participation meetings open to all customers in November 2024.
More information on Avista’s diverse energy mix and the IRP is available at myavista.com/IRP.
About Avista Corp.
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 the operating division that provides electric service to 418,000 customers and natural gas to 382,000 customers. Its 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. Alaska Energy and Resources Company is an Avista subsidiary that provides retail electric service to 18,000 customers in the city and borough of Juneau, Alaska, through its subsidiary Alaska Electric Light and Power Company. Avista 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 expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2023 and the Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2024.
Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.
SOURCE: Avista Corporation
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FAQ
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