20240423Final Approved Tariff.pdf

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RECEIVED
2024 Janury 19, PM 4:46
Avista Corp. IDAHO PUBLIC
1411 East Mission,P.O. Box 3727 UTILITIES COMMISSION
Spokane,Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
January 19, 2024
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8, Suite 201-A
Boise, ID 83714
RE: Order No. 36046 Compliance Filing
Amendment No. 3 to Clearwater Paper Corporation Power Purchase and Sale Agreement
Case No. AVU-E-23-15
On October 2, 2023, Avista Corporation ("Avista") and Clearwater Paper Corporation
("Clearwater") filed a Joint Petition for approval of Amendment No. 2 to the Power Purchase and
Sale Agreement ("Agreement"). Amendment No. 2 extended the Agreement through December
31, 2026. On December 29, 2023, the Idaho Public Utilities Commission("Commission") issued
Order No. 36046 approving the extension of the Agreement through December 31, 2026, subject
to further updates to the Agreement. Pursuant to Order No. 36046, Avista and Clearwater have
entered into Amendment No. 3 to update the Agreement as required by the Commission. Avista
submits Amendment No. 3 in compliance with Order No. 36046 and respectfully requests that the
Commission approve Amendment No. 3 and the revised Schedule 25P1, with an effective date of
January 1, 2024.
In Order No. 36046, the Commission required the Parties to update the Agreement to: (1)
update the avoided cost rates for the extended term(2024-2026), (2) add 90/110 provisions to the
Agreement, (3)update Exhibit B, including correction of certain typographical errors in Schedule
25P, (4) update Section 24 of the Agreement to reflect the significance of Commission approval,
and(5)update the Agreement to include additional language to address potential modifications to
' The Revised Schedule 25P submitted in Amendment No. 3 to the Agreement as part of Revised Exhibit
B are:
Electric
Eighteenth Revision Sheet 025P canceling Seventeenth Revision Sheet 025P
Tenth Revision Sheet 025PA canceling Ninth Revision Sheet 025PA
Legislative(strike/underline)versions are also attached.

the Project in accordance with Order No. 35705. The Commission further recommended that
Avista and Morgan Stanley Capital Group (MSCG") amend the REC Agreement that was
submitted as Revised Exhibit F in Amendment No. 2 to reflect the need for Commission approval
"should an alternative method ever be utilized to determine the price of energy between Avista
and [MSCG]."
To comply with Order No. 36046, Avista and Clearwater entered into Amendment No. 3.
Amendment No. 3 updates the avoided cost rates for the period 2024-2026 and provides a
Revised Exhibit B, which replaces and supersedes the prior version of Exhibit B. In response to
the Commission's order regarding energy pricing of the Agreement, and in consultation with
Staff, Avista conducted a new analysis using the Aurora model to simulate the 2024-2026 time
period using the Avista loads from Order No. 35639 with the 2023 Electric IRP assumptions.
Avista also included the PURPA resources included through October 2, 2023. The resulting
price of the analysis levelized over the three-year period(2024-2026) is $36.17 per MWh. This
is an energy price only and assumes when Avista's economic generation dispatch is equal to or
greater then load for each hour the avoided cost is the highest marginal price of Avista's
dispatchable resources. If Avista is buying from the market for the hour,pricing assumes the
Mid-C market price. Avista did not include any avoided capacity cost due to the contract is not in
a capacity deficit period. When adjusting for commission fees, the resulting price of the contract
should be priced at $36.24 per MWh. Ultimately, it is worth noting that under the Agreement the
rate Avista pays Clearwater for Delivered Net Output is equal to and offset by the rate
Clearwater pays Avista.
Amendment No. 3 also adds the 90/110 provisions. Specifically, Amendment No. 3 adds
new Section 5.1 to the Agreement, which addresses the provision of Net Output Estimates and
adds new terms, including"Surplus Energy"and Shortfall Energy". Revised Section 5(c)clarifies
that Avista will pay Clearwater the rates in Exhibit B for Delivered Net Output, except for
Delivered Net Output that is Surplus Energy or Shortfall Energy (i.e., Delivered Net Output for
any month that is greater than 110 percent or less than 90 percent, respectfully, of the Delivered
Net Output Estimates for such month). For all Surplus Energy and Shortfall Energy delivered to
Avista in any month, Avista shall pay Clearwater the applicable month's Market Energy Price
(which is 85 percent of the PowerDex Mid-C Index) or the rate specified in Exhibit B, whichever
is lower.
Amendment No. 3 revises Section 24 of the Agreement to reflect the significance of
Commission approval. Amendment No. 3 also adds new Section 4, which adds language to the
Agreement to address potential modifications to the Project in accordance with Order No. 35705.
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Finally, as recommended by the Commission,Avista and MSCG entered into Amendment
No. 3 to the REC Agreement to reflect the need for Commission approval "should an alternative
method ever be utilized to determine the price of energy between Avista and [MSCG]."
Specifically, Amendment No. 3 to the REC Agreement adds the following language to the REC
Agreement:
In the event that the Parties mutually agree to an alternative index to calculate the Energy
Price for Delivery Period 1 or Delivery Period 2 as set forth above, such alternative index
shall not be valid unless set forth in a written amendment to this Confirmation signed by
both Parties and subsequently approved by the Idaho Public Utilities Commission.
Amendment No. 3 to the Agreement incorporates Amendment No. 3 to the REC Agreement into
Revised Exhibit F to the Agreement(Revised Exhibit F is the REC Agreement as submitted to the
Commission in Amendment No. 2 to the Agreement).
As discussed herein, Avista respectfully requests that the Commission approve
Amendment No. 3, and revised Schedule 25P, with an effective date of January 1, 2024. Please
direct any questions regarding this report to Michael Andrea at [phone] or myself at 509-
495-4584.
Sincerely,
/s/Paul Kimball
Paul Kimball
Manager of Compliance & Discovery
Avista Utilities
509-495-4584
paul.kimb all(&,,avistacorp.com
Enclosure
cc: Peter Richardson
3 Page

IDAHO PUBLIC UTILITIES COMMISSION
Eighteenth Revision Sheet 25P Approved Effective
Canceling Apirl 23, 2024 January 1, 2024
I.P.U.C. No.28 Seventeenth Revision Sheet 25P Per ON 36157
AVISTA CORPORATION Monica Barrios-Sanchez Secretary
d/b/a Avista Utilities
SCHEDULE 25P
EXTRA LARGE GENERAL SERVICE TO CLEARWATER PAPER'S FACILITY- IDAHO
(Three phase, available voltage)
AVAILABLE:
To Clearwater Paper Corporation's Lewiston, Idaho Facility.
APPLICABLE:
To general service supplied for all power requirements with a demand of not less than
2,500 kVA but not greater than 110,000 kVA. The average of the Customer's demand for
the most recent twelve-month period must fall within these demand limits for service under
this schedule. Customer shall provide and maintain all transformers and other necessary
equipment on its side of the point of delivery and enter into a written contract for five (5)
years or longer.
MONTHLY RATE: The sum of the following demand and energy charges:
Energy Charge:
Block 1 Retail Meter 4.2900 per kWh
Block 2 Generation Meter 3.6240 per kWh
Demand Charge as measured at the Retail Meter:
$16,000.00 for the first 3,000 kVA of demand or less.
1S' Demand Block: $5.75 per kVA for each additional kVA of demand up to
55,000 kVA.
2nd Demand Block: $3.00 per kVA for each additional kVA of demand above
55,000 kVA.
Primary Voltage Discount as measured at the Retail Meter:
If Customer takes service at 11 kV(wye grounded)or higher, it will be allowed
a primary voltage discount of 300 per kVA of demand per month.
Minimum:
The demand charge unless a higher minimum is required under contract to
cover special conditions.
ANNUAL MINIMUM: $663,900
Any annual minimum deficiency will be determined during the April billing cycle for the
previous 12-month period. The annual minimum is based on 916,667 kWh's per month priced
at the Block 1 per kWh rate, plus twelve months multiplied by the monthly minimum demand
charge for the first 3,000 kVa of demand. The annual minimum reflected above is based on
base revenues only. Any other revenues paid in billed rates (such as the DSM Tariff Rider
Schedule 91) do not factor into the annual minimum calculation.
Issued January 19, 2024 Effective January 1, 2024
Issued by Avista Utilities
�J By Patrick Ehrbar, Director of Regulatory Affairs
�T

IDAHO PUBLIC UTILITIES COMMISSION
Tenth Revision Sheet 25PA Approved Effective
Canceling Apirl 23, 2024 January 1, 2024
I.P.U.C. No. 28 Ninth Revision Sheet 25PA Per ON 36157
AVISTA CORPORATION Monica Barrios-Sanchez Secretary
dba Avista Utilities
SCHEDULE 25P (continued)
DEMAND:
The average kVA supplied during the 30-minute period of maximum use during the
current month as measured by Company's metering equipment.
The Demand rate for all kVA above 55,000 is directly related to the terms and
conditions of to the Service Agreement between Clearwater Paper and Avista, which is
effective through December 31, 2026. Avista and Clearwater agree that Clearwater's load
under Schedule 25P will increase during planned generation outages, intermittent
Clearwater generation outages, and other variations in Clearwater Facility load. If,
however, Clearwater sells any of its generation output to any third party, thereby taking all
or a larger portion of its retail load from Avista, the second demand block described above
would no longer be applicable, and all demand would be billed at the first block rate, i.e.,
the rate per kVA charged for each kVA from 3001 kVA to 55,000 kVA.
SPECIAL TERMS AND CONDITIONS:
All Special Terms and Conditions are addressed in the Service Agreement between
Avista and Clearwater Paper Corporation as approved by the Commission.
The rates for Schedule 25P that are associated with all present and future tariff rider
schedules (such as the DSM Tariff Rider Schedule 91) are applied to the Block 1 Retail
Meter load only.
For purposes of all proposals related to General Rate Case Filings, Cost of Service
studies, Production and Transmission Ratio calculations, and Power Cost Adjustment rate
calculations etc., "Base Revenue" will be defined as Clearwater's "net" generation
requirements as measured through the Block 1 Retail Meter.
If, at any time, the Agreement is terminated or suspended prior to its expiration,
Clearwater will generate into their own load and be billed at the Block 1 Retail Meter rate.
Service under this schedule is subject to the Rules and Regulations contained in this
tariff. The above Monthly Rates are subject to increases or decreases as set forth in Tax
Adjustment Schedule 58, Temporary Power Cost Adjustment Schedule 66, Tax Customer
Credit Schedule 76 and Energy Efficiency Rider Adjustment Schedule 91.
Issued January 19, 2024 Effective January 1, 2024
Issued by Avista Utilities
�J By Patrick Ehrbar, Director of Regulatory Affairs
�T