20240521News Release.pdf

Idaho Public Utilities Commission Brad Litile,Governor
P.O. Banc 83720. Boise, ID 83720-0074 Eric Anderson, President
Ain R.Mammo* Jr,Cbmmissloner
Edward Lodge,Commissioner
Case No.AVU-E-24-03
Order No. 36189
Contact:Adam Rush
Office: [phone]
E-mail: [e-mail]
NEWS RELEASE: Commission rejects application from electric utility and lumber company to
amend power purchase agreement.
BOISE (May 21, 2024)—The Idaho Public Utilities Commission has declined an application
from an electric utility and lumber company that would amend a power purchase agreement they
entered into.
Avista Utilities and Stimson Lumber asked for commission approval to amend a power purchase
agreement to account for anticipated periods when the lumber company would not be operating
between Jan. 1, 2024, and Dec. 31, 2025. Stimson told Avista that the lumber company expects
there to be extended periods when it would not be operating. However, the power purchase
agreement they entered into requires Stimson to pay Avista a use-of-facilities charge during the
entire power purchase agreement term.
A proposed amendment that the two submitted to the commission in their application would alter
the requirement and allow Stimpson to not pay the use-of-facilities charge for the months the
lumber company was not operating.
Commission staff expressed concern the amendment would have a negative effective on other
Avista ratepayers when the lumber company was idle. The use-of-facilities charge is based on an
annual amount of$8,448, or$704 per month. If the use-of-facilities rate is charged at a monthly
rate of$704 for only the months when Stimson's facilities were used, the annual use-of-facilities
charge would be below the $8,448 annual rate needed, with other customers paying the
difference.
The commission, after reviewing the application, determined the request to amend the power
purchase agreement to not pay the use-of-facilities charge was not fair,just or reasonable in
certain situations because it would shift the recovery of costs to other customers. The
commission understood Avista's wish to charge Stimson a lower rate tied to the months Stimson
uses the facilities. However, that type of design would alter the purpose of use-of-facilities fees.
Additional information is available at puc.idaho.gov/case/Details/7266.