20240417Final_Order_No_36139.pdf

Office of the Secretary
Service Date
April 17,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT PETITION ) CASE NO. AVU-E-24-02
OF AVISTA CORPORATION AND )
REGENTS OF THE UNIVERSITY OF IDAHO ) ORDER NO. 36139
FOR APPROVAL OF POWER PURCHASE )
AGREEMENT )
On January 31, 2024, Avista Corporation ("Avista") and the Regents of the University of
Idaho ("University") (collectively, the "Parties") filed a joint petition with the Idaho Public
Utilities Commission ("Commission") requesting an order approving a Power Purchase
Agreement ("Agreement") between the Parties for a 132.32 kilowatt ("kW") (AC) solar facility
("Facility").
The Parties represented that the Agreement was substantially the same as the Original
Agreement approved by the Commission in Order No. 35440,which was set to expire by its terms
on February 16, 2024, and the University intended to use the output from the Facility to serve the
University's load.Application at 3-4.The Parties stated that to the extent that the Facility generated
output in excess of the University's load, the University had elected to sell all such output from
the Facility to Avista at the avoided costs calculated at the time of delivery. Id.
The Parties represented that in the Agreement the Parties made minor modifications to the
language of the Original Agreement to reflect Commission precedent in Order No. 35705, and the
Agreement also contained language reflecting the significance of Commission approval of any
amendment to the Agreement.Id.
STAFF COMMENTS
Commission Staff ("Staff") reviewed the Agreement focusing on the proposed avoided
cost rates,the lapsed-contract period, and Section 9.6 of the Agreement. Based on its review, Staff
recommended approval of the Agreement conditioned upon the modification of Section 9.6 to meet
the requirement in Order No. 35705, which requires inclusion of language that restricts a seller
from modifying the facility from the as-built description of the facility without promptly notifying
the Company of that intent. Staff also recommended: (1)the Seller be paid at the proposed avoided
cost rates with an effective date of February 17, 2024; and (2) if the Seller modifies the Facility,
the Company only include Net Power Cost in the Power Cost Adjustment that reflects rates for
ORDER NO. 36139 1

any energy delivered appropriate for the Facility as modified,regardless of the compensation paid
to the Seller.
PARTY REPLY COMMENTS
On March 22, 2024, the Parties submitted Amendment No. 1, which contained
modifications to Section 9.6 conforming with Staff s recommended changes.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Application and the issues in this
case under Title 61 of the Idaho Code including Idaho Code §§ 61-301 through 303. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code
§§ 61-501 through 503.
The Commission has reviewed the Application, all submitted materials, and the comments
of the parties. Based on its review of the record, the Commission finds it fair,just, and reasonable
to approve the Power Purchase Agreement Between the Parties, as amended by Amendment No.
1 filed on March 22, 2024, with an effective date of February 17, 2024.
ORDER
IT IS HEREBY ORDERED that the Power Purchase Agreement Between the Parties, as
amended by Amendment No. 1 filed on March 22, 2024, is approved with an effective date of
February 17, 2024.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626
and 62-619.
ORDER NO. 36139 2

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 171h day of
April 2024.
ERIC ANDERSON, PRESIDENT
HN R. HAMMOND JR., COMMISSIONER
EDWARD LODGE OMMISSIONER
ATTEST:
I jj-).,(6
n a b a an
Commission Secretary
I:\Legal\ELECTRIC\AVU-E-24-02_Regents PPA\orders\AVUE2402_FO_cb.docx
ORDER NO. 36139 3