Avista Wind Integration Thoughts

Clint Kalich, Avista Utilities

clint.kalich@avistacorp.com, (509) 495-4532

Wind Integration Forum Technical Workgroup

October 29, 2009

2

Where We Are and Plan To Go

Avista System Summary (2010)

–Load: 1,750 peak, 1,150 aMW energy

–Resources: 2,400 MW capacity, 1,700 MW energy

•1000 MW hydro, 840 MW gas, 200 MW coal, 50 MW biomass, 310 contracts

Avista Wind Resource (350 MW total by 2022)

–35 MW Stateline integrated into our system (remotely)

•expires 2011

–Presently evaluating 150 MW RFP (delivery by 2012)

–Need additional 200 MW between 2019 and 2022

3rd Party Wind Development on Avista’s System ~ 300-500 MW

3

Integration Issues

No Significant Wind Penetration Until 2012

Avista Wind Integration Study Released March 2007

–$2.75/MWh @ 5% penetration

–$7.00/MWh @10-20% penetration (assumes diversity at 20%)

–$8.85/MWh @ 30% penetration

Collecting Revenue for 3rd Party Wheeling Service

How Much Does Avista Participate in Regional Wind Efforts

–Intra-hour scheduling

–ACE Diversity Interchange

–DSS

4

Need for New Focus

Determination of Need/Value of 10-Minute Markets

What Is The Capacity Value of Wind?

Is Simplified Statistical Approach Adequate or Do We Need New Tools?

–Are our existing tools up to the job?

What is the Best Means To Integrate Wind?

–Gas (and what kind), hydro, new pumped storage, batteries, conservation

Are Wind BAs Good or Bad For Reliability?