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Aug 25 , 2010
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The evaluation team takes a look at the river from one of 10 public viewpoints Wednesday morning,
August 25. The group will suggest changes to the temporary dams and come back for a second and
possibly third look at spills through the two channels. Evaluators include representatives of Spokane Parks
and Recreation, Spokane Canoe and Kayak Club, Sierra Club, Washington Department of Ecology, Center
for Environmental Law and Policy, Avista, Friends of the Falls, and others. |
Normally at this time of the year, the north and middle channels of the Spokane River in downtown Spokane, what many of us know as Spokane Falls, look pretty dry. That’s because in the past during the dry summer months, natural conditions and Avista’s hydropower operations have resulted in little or no flow through that part of the river. That all changed last year with the issuance of Avista’s new 50-year Federal Energy Regulatory license to operate our Spokane River Project, which includes Upper Falls and Monroe Street Dams in downtown Spokane. As a result of the relicensing process, we must now release minimum aesthetic spills around the clock at both Upper Falls and Monroe Street. That began this summer, and you may have noticed more water flowing through the falls in July and early August.
But there’s more to it than that. If you’ve been to Riverfront Park in the past couple of weeks, you’ve probably noticed something else in the river. Cranes, sandbags, and workers have been busy preparing for an aesthetic spills pilot test at Upper Falls Dam. This test will help us determine whether permanent channel modifications can be made to bring the riverbed closer to its natural state, the way it was before early developers in Spokane cut into the bedrock to divert the water during dry times. We’re hoping to enhance aesthetic appeal even more during periods of low river flow. Our license requires us to do this study to learn whether the same, or a better, aesthetic effect can achieved with daytime releases of 300cfs and channel modifications, as the current daytime release of 500 cfs does, without modifications.
Avista’s Upper Falls Dam is located where the river splits into two channels around Havermale Island in Riverfront Park. The southernmost channel forms the forebay that provides water to the powerhouse, and the northern channel passes through the control works dam and splits again into two smaller channels that run north and south of Canada Island. These are referred to as the north and south (or middle) channels. These two channels are where the pilot test is occurring, and we hope that as a result of this work, viewers of the river downtown will have a pleasant experience no matter what time of year it is.
Last week we temporarily interrupted normal aesthetic spills and placed several small, temporary dams made with sandbags, called weirs, throughout the channels. These weirs divert the flow of water throughout the channels, and this week, an evaluation team made up of representatives of stakeholders, agencies and the public is viewing test spills and giving their feedback as we release 300 cfs through the two channels. Team members will make judgments based on their sense of sound, coverage, depth and power of the water as it moves through the channels. The feedback we receive will help us determine whether to move forward with permanent channel modifications next year.
Next week, we’ll remove all of the equipment and materials from the river, and we’ll return to normal aesthetic spills the following week. Then, if the outcome of the pilot test shows us that permanent modifications are the way to go, the real work begins.
So far, we’re excited about the potential of this project. We’re hoping the result is a cascading waterfall effect throughout both channels of the river that visitors and the community can enjoy all summer long. And this collaborative effort could indeed accomplish that, possibly restoring at least some of the river’s natural beauty that was lost through the development of Spokane over the past 100 or more years.
Jul 26 , 2010
Last March a posting on this blog told you about the request we made of the utility commissions in Washington and Idaho requesting rate changes to recover the costs of buying and generating power and upgrading the pipes, poles and wires that bring you energy when you want it. Today a settlement agreement was filed with the Idaho Public Utilities Commission (IPUC) that would result in an overall electric rate increase of 9.3 percent and a 2.6 percent increase in natural gas rates for our Idaho customers. The settlement must still be approved by the IPUC. The request in Washington is still pending.
Partially offsetting the increase for the next three years will be a bill credit customers will receive to return the balance of Avista’s deferred Idaho state income taxes from prior years.
Today Avista also filed its annual Power Cost Adjustment, also known as PCA, which requests an overall 2.6 percent increase in electric rates. The PCA is the difference between Avista’s actual costs of generating and purchasing power over the past 12 months and the cost currently included in customer rates.
It’s a lot of detailed rates information with ups and down. But, the bottom line - if you are a residential customer in Idaho using an average 1,000 kilowatt-hours a month, you could expect to see a $5.37 month increase beginning on October 1, for a revised bill of $86.27. If you’re a natural gas customer, your bill would increase about $1.71 per month for a revised bill of $59.40, also beginning October 1.
Avista also agreed to increase annual low-income weatherization programs and to increase funds for low-income energy efficiency and education. Idaho Community Action Programs administer these programs.
We see everyday how the rising cost of energy impacts families in the communities we serve. It’s one of the reasons we offer many programs to help customers with energy assistance. Nobody likes an increase in their costs of everyday living like gasoline, food and energy. But the fact remains, that we need to make these requests to continue to provide you with the safe, reliable energy you depend on.
You may have questions about this rate change in Idaho and we’d like to help answer them or provide more information. You can post a comment below in the block or send us an email to conversations@avistautilities.com.
Jun 07 , 2010
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Post Falls Dam on the Spokane River. |
This has been quite a year for unusual weather. All the rain we’ve had is increasing the flow of water into Coeur d’Alene Lake. Our federal license doesn’t permit us to let the lake go above its summer level of 2,128 ft. above sea level. So to keep that from happening we’ve been letting as much water as possible spill over the dam at Post Falls. When the river runs fast, as it is now, this causes the water level to drop in the stretch of the Spokane River upstream of the dam.
If the weather cooperates the river should start to rise later this week. And even though this is an unusual year for weather, it’s normal for the river to fluctuate until around the Fourth of July, when we are typically able to close the spill gates at the dam and hold the lake level steady.
We’re looking at some ways to improve communications with river users, but please remember that conditions can change very quickly and use caution on the water.
-For current information on Spokane River flows and Coeur d'Alene Lake elevation (includes anticipated changes in flow and elevation for the coming week) call 208-769-1357.
-For current information on Spokane River flows and Lake Spokane elevation (includes anticipated changes in flow and elevation for the coming week) call 509-495-8043.
May 26 , 2010
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Ginny Welch gets a good look at her new Toyota Prius. |
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The trunk of the Prius was stuffed with CFL goodness. | Efficiency matters and every little bit adds up. Even when you drive a fuel efficient car. And now, one lucky woman owns a brand new Toyota Prius - and a case of CFL bulbs - to help her be more energy efficient both at home and on the road.
Beginning April 1, KREM 2’s Project Green and Toyota joined Avista in promoting the benefits and awareness of energy efficiency, energy assistance and rebates offered to homeowners. The grand prize in the seven-week promotion was the Prius, courtesy of Northwest Toyota Dealers. The May 25 grand prize event was hosted by KREM 2 weathercaster Tom Sherry and Avista Low Income Program Manager Christine McCabe.
Finalists were drawn each week from the over 65,000 entries to the contest. They ranged in age from 19 to 57 and came from communities throughout eastern Washington and northern Idaho. They are Flavia Ford, Post Falls; Rhianna Thomas, Springdale, Wash.; Robert Holven, Chester, Wash; Eleanor Anderson, Post Falls; Alicia Knowles, Spokane; and Christie Higley, Coeur d’Alene.
And the winner is Ginny Welch from Airway Heights, Wash.
May 17 , 2010
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Kettle Falls Generating Station. |
Sunday the Spokesman-Review ran a good article about biomass plants and the difficulty finding low-cost fuel. It featured Avista’s Kettle Falls Generating Station. Check out, "Biomass challenge," by Becky Kramer.
Two years ago I was involved in the 25th anniversary of the Kettle Falls plant and was able to learn a great deal about the wood-waste burning facility. I’ve got an affinity for it because it’s pretty unique in our power supply mix. While we’re obviously well-versed in hydropower and natural gas-fired generation and such – we’ve only got one biomass plant and it’s cool.
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This video was made during the dedication
of Kettle Falls in 1983. Watch now. | Wood waste – called “hog fuel” – is fed into a seven-story furnace/boiler and burned, creating heat. The walls of the furnace/boiler consist of pipes filled with water that are heated by the burning hog fuel. The optimal burning temperature is 2,000 degrees, resulting in a steam temperature of 950 degrees. The heated water generates stream and pressure that drives a turbine, which turns a generator, creating electricity. The maximum output of the wood-waste only operation is 53 megawatts of electricity.
Avista – or Washington Water Power at the time – created a short video in October 1983 during the dedication of the first-of-its-kind, renewable energy plant. The video is called “From Wood Waste to Power.” Due to its age, some statements and facts in the video are dated, but the general idea is still relevant.
It’s interesting to think that at the time, the plant was so groundbreaking and it’s still a gem today.
Apr 21 , 2010
We're always pleased when we can get out the word about safety on the bodies of water that our dams are connected with. Yesterday, KXLY reporter Jeff Humphrey did a good story on Avista raising the levels on Lake Coeur d'Alene in conjunction with low spring runoff.
If you're a recreational boater, that might mean you'll be able to use the lake earlier than in previous years. But with these early changes comes the dangers hidden under the water - such as rocks or wooden pilings, so watch out.
Mar 31 , 2010
We’ve talked in this blog before about Avista being an investor-owned company. Because we are publicly owned by our shareholders, we have reporting requirements, which we meet each year. These reports are available to the public, and we believe they are a good way for people to gain a better understanding of how we do business. At the end of February we filed our annual report and today we filed our proxy statement with the Securities and Exchange Commission. This is a great opportunity for shareholders and the public to read about how our company performed in 2009. The annual report takes an in-depth look at the financial operations of Avista Corp. and talks about the issues that may impact or are impacting our company.
The proxy statement provides information for shareholders who will vote on issues at the company’s upcoming annual meeting. There is a complete description of how the company is governed by the Board of Directors, their roles and responsibilities and information about directors who are nominated for election.
The proxy also contains in-depth information about executive compensation at Avista. Given the stories in the national news over the past couple of years, there is more and more attention to executive compensation. Some of our customers think that one of the reasons we request a rate increase is to pay the salaries of our executives. That’s not the case. You may or may not agree, so I hope you’ll read on to learn more about salaries and your bill.
The first thing to know is that all employee salaries, including executives, are targeted to be in the middle of the range for similar jobs at similar companies in our region. We review what’s happening in the market regularly. Salaries and incentives are reviewed by the state utility commissions each time we ask for a change to rates, and they determine what is reasonable to include when rates are set.
Less than one-half cent of each dollar in your energy bill goes to pay for the salaries and incentives for all of our officers. That’s less than 75 cents on a monthly bill of $150. Any remainder is paid by shareholders.
Okay, what’s driving the rest of the compensation you see for executives? A part of their compensation is based solely on achieving the targets set for the company’s performance. This means that a part of their compensation is at risk and not guaranteed to be paid. In other words, if we don’t meet goals for customer satisfaction, service reliability and overhead costs, that part of their compensation isn’t paid. Not all industries or all companies set these kinds of targets, but we do and we have for many years.
Some of what is included in the Total Compensation chart in the proxy is a change in the value of the top five executives’ pension – it’s not money they’re taking home – it’s a change in value of their future pension based on length of service with the company, age and other factors. And I want to assure you that Avista doesn’t give perquisites (perks) – no personal private club memberships or discounts on energy bills or cars or boats or vacation homes.
I hope I’ve been able to give you a little more information about our company than you had before you read this post. If you’re interested in more information about executive compensation or how our company runs or our annual report and proxy statement, you can read more here or contact us at conversation@avistautilities.com. We’ll do our best to give you the information you request as quickly as possible. Mar 30 , 2010
We’ve been engaging with customers online for some time now and over the last few weeks, I’ve spent a bit of time commenting on the discussion forums of our local news media. I’ve tried to correct misconceptions about our activities and direct people to places online where they can find more information about the subjects they are passionate about.
These customer outreach efforts drew the attention of The Spokesman-Review recently, because frankly, there aren’t many companies doing what we’re doing online. Yesterday reporter John Stucke’s question and answer with me ran and I was honored to participate and talk about our efforts online. Read the article, " Avista social media man talks his trade." If you’ve been following this blog for any length of time, you know that it’s the centerpiece of our social media efforts. We write posts, do videos and podcasts for the blog, while promoting that work on twitter and discussion forums. We’re also participating in chats and other activities that allow you to talk with us about what’s on your mind. We even did a video earlier this year that discussed our social media focus.
When stories about Avista run in the news or people write about us in any format, we pay attention (just like any other company). I read what people say and what sparks their interest. Oftentimes the comments following these stories contain common misconceptions about how we do things, and that’s when I step in to offer some additional thoughts. Most people are simply offering their opinion and there’s nothing wrong with that. I don’t aim to change anyone’s mind, just offer additional resources so people can decide for themselves.
It’s certainly an interesting time to be online talking with people about the utility business – yes, even those who disagree with what we say or do. I’ll continue to talk to people online in reaction to comments and e-mails, but if you’d like us to spend some time talking about a particular subject on the blog, e-mail me at conversation@avistautilties.com. Mar 26 , 2010
Post by Dan Kolbet
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Massive 1950s era
substation transformer. |
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New substation transformer.
Roughly 20 feet tall. | I think there’s a misperception about what an “infrastructure upgrade” is. The idea of an upgrade says that you’re getting something extra, but maybe you don’t need it. I upgraded my burger combo meal to the large size or upgraded to a new socket set. I could have done without either one (especially the burger, trust me). So when Avista says we’re using ratepayer money to make “upgrades,” it just might make you say, “Nope, the same old system was fine, stick with that – no upgrades needed.”
The trouble is, we’re not able to mess around when it comes to the reliability of our system. And it’s a big system – we have about 275,000 poles for example, some of which are 60 to 70 years old. Now, I know plenty of 60 to 70-year-olds out there who are doing just fine, but they’ve probably not been working every second of every single day, exposed to the elements since the end of World War II like some of our poles and transformers.
Continuing to run a system and handle increasing demands means putting up new stuff.
So the idea of an upgrade rings true in this sense: When we put up a new transformer for example, it is more efficient, better for the environment and will last for decades into the future. That’s an upgrade over an aging piece of equipment. But these things are costly. The substation transformer shown on the top right cost about $35,000 in the 1950s. This equipment has long since been paid off, of course. Today its replacement, shown on the bottom right, costs between $300,000 to $500,000.
Why can’t Avista just tighten its belt and absorb those costs? In many cases, we have. A few examples include centralizing internal processes like supply chain, dispatch, meter change-outs; modifying company printers to default to black and white two-sided jobs, shelving plans to build an office building, continuing a hiring freeze, optimizing our automated phone system to handle more transactions, using more efficient and faster equipment in the field – and more. These savings, while good, just aren’t enough to off-set the capital dollars that have to be spent to “upgrade” our system.
Infrastructure upgrades are just one example of what we’re doing with the additional funds we’re requesting in these rate cases. We produced a video, titled “ Our Infrastructure: Providing Safe, Reliable Energy” that reviews this subject. It’s around two minutes long and worth a look if you want to know where the money goes. Mar 24 , 2010
The cost of energy itself (generating or purchasing) makes up about 60 percent of the cost customers pay each month. So, when those costs go up, it makes a significant impact on rates. To help work through this topic we created the video, “ Power Supply: What’s Driving Rates.”
The details
Avista generates about 93 percent of the power customers use with our own hydro, biomass, natural gas and coal generation resources. The additional power our customers need comes from resources owned by other Northwest producers via some long-term, low-cost contracts.
The demand for electricity continues to increase, so when those long-term contracts expire, as they have and will continue to do so over the next several years, we have to replace that low-cost electricity with reliable, but more expensive power.
Today, the commodity portion of a customer’s bill is about 4 and one half cents a kilowatt-hour for electricity. But, as those long-term contracts expire, the replacement power will cost between 7 and 11 cents, depending on the resource.
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