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Feb. 22, 2010: Avista, through a request for proposals (RFP), is seeking qualifying renewable electric resources to meet a portion of its Washington State-mandated renewable portfolio standard (RPS) requirements.
Avista seeks to acquire up to 35 average megawatts of renewable energy, or as much as 100 megawatts of nameplate wind capacity, under a 20-year power purchase agreement with deliveries beginning in 2012. Proposed projects will deliver electricity qualifying under Washington State’s Energy Independence Act (RCW 19.285) to Avista’s service territory.
RFP responses are due by March 7, 2011. The RFP and bid instructions are available on the Avista Utilities web site at: http://www.avistautilities.com/inside/resources/renewables/.
“Recent market changes, including reductions in the cost of wind power facilities, together with tax incentives that remain in effect, could help reduce the cost of potential projects for our customers,” said Dick Storro, Avista vice president of energy resources. “Through this RFP, Avista is seeking prospective projects to evaluate the most cost-effective options for meeting future renewable resource acquisition targets. Avista balances the need to secure enough energy to meet customers’ needs with the costs of new resources, while satisfying renewable portfolio standards, both in the near and long term.”
Avista must comply with renewable portfolio standards detailed in Washington’s Energy Independence Act and must use eligible renewable resources, renewable energy credits (RECs) or a combination of both to meet the following annual targets: 3% of energy used to meet customer demand by January 1, 2012, 9% by January 1, 2016 and 15% by January 1, 2020.
To meet the 2012 targets, Avista has added qualifying renewable generation capacity with upgrades at its hydroelectric projects and purchased RECs. This updated evaluation may identify renewable resources that if acquired could satisfy a portion of Avista’s RPS requirements for 2016 and be more cost-effective for customers.
The Washington Utilities and Transportation Commission issued a policy statement (Docket #UE-100849) on December 30, 2010, regarding renewable resource acquisitions needed to meet state requirements. In its policy statement the commission advises that, in order to give utilities sufficient incentive and flexibility to achieve the Energy Independence Act’s goals, it would “support the acquisition of renewable resources in advance of RPS deadlines, if early acquisition can be cost-justified.”
While this RFP does not include development of a wind site at Reardan, Wash., Avista continues to study that site in preparation for later development. The company expects to issue another RFP at a later date to meet additional future resource needs, and the Reardan project could be considered in that later process.
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 359,000 customers and natural gas to 319,000 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 1.5 million.
Avista’s primary, non-regulated subsidiary is Advantage IQ. 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 Annual Report on Form 10-K for the year ended Dec. 31, 2009 and the Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2010.
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