Avista Wind Integration Thoughts Clint Kalich, Avista Utilities (509) 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  3 rd Party Wind Development on Avista’s System ~ MW

3 Integration Issues  No Significant Wind Penetration Until 2012  Avista Wind Integration Study Released March 2007 – 5% penetration – penetration (assumes diversity at 20%) – 30% penetration  Collecting Revenue for 3 rd 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?