Commission accepts Avista natural gas plan

Regulators have accepted Avista Utilities' 20-year natural gas plan, but also are recommending changes in future plans, including a more convenient meeting site for North Idaho stakeholders.

Electric and natural gas utilities are required by the Idaho Public Utilities Commission to file an Integrated Resources Plan (IRP) every two years that states how the utilities plan to meet customer demand during average load periods and under extreme weather conditions.

In its plan, Avista states natural gas prices are expected to remain low over the next several years due primarily to the continued development of shale gas. Demand from customers in North Idaho will increase by about 1 percent over the next 20 years, the company forecasts.

Avista does not anticipate any resource shortages over the next 20 years, due to increased production from shale and lower customer demand.

"Access to previously untapped shale gas formations throughout North America could provide long-term availability to low-priced natural gas," said Anna Scarlett, Avista spokeswoman.

Avista purchases natural gas on the wholesale market.

The IPUC adopted commission staff's recommendation that Avista's future reports include an easily identifiable progress report that explains the changes between the current plan and previous one.

The IPUC also said Avista should conduct at least one of its meetings with the committee that provides much of the input for developing the IRP in a location more convenient for Avista's North Idaho stakeholders. All four of the most recent committee meetings were held at a Portland airport conference room.

Scarlett said Avista is pleased with the order and appreciates the IPUC's acceptance of the plan.

"We'll evaluate it thoroughly, but overall the recommendations seem reasonable," she said.

She said the committee that helps develop the plan tries to hold the meetings at a time and location most convenient and accessible for the largest number of committee members.

"The purpose of holding the meetings at the Portland airport, a major regional hub airport, was to allow people to fly in and out the same day," she said. "That said, we will certainly investigate the feasibility of moving a future meeting to make it more accessible to North Idaho customers."

The plan states that Avista has a diversified portfolio of gas supply resources, including contracts to buy gas from several supply basins, stored gas and firm capacity rights on six pipelines.

"Avista continues to plan for a broad range of possibilities because of uncertainties, including economic conditions; increasing exporting of liquefied natural gas which alters the price and flows of natural gas nationwide; and the growing market for natural gas vehicles," an IPUC press release states.

Because of higher oil prices and the desire to reduce reliance on foreign oil, forecasters believe there will be increased use for natural gas vehicles particularly in vehicle fleets that include long-haul trucking, public transportation, school buses and refuse trucks.