20240610Staff 1-9 to Avista Utilities and Ford Hydro.pdf

RECEIVED
Monday, June 10, 2024 3.59.30 PM
IDAHO PUBLIC
UTILITIES COMMISSION
MICHAEL DUVAL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 11714
Street Address for Express Mail:
11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA )
CORPORATION AND FORD HYDRO ) CASE NO. AVU-E-24-06
LIMITED PARTNERSHIP'S JOINT )
PETITION FOR APPROVAL OF A POWER )
PURCHASE AGREEMENT ) FIRST PRODUCTION
REQUEST OF THE
COMMISSION STAFF
TO AVISTA CORPORATION
d/b/a AVISTA UTILITIES and
FORD HYDRO LIMITED
PARTNERSHIP
Staff of the Idaho Public Utilities Commission,by and through its attorney of record,
Michael Duval, Deputy Attorney General, requests that Avista Utilities ("Avista") and Ford
Hydro Limited Partnership ("Ford Hydro")provide the following documents and information as
soon as possible, but no later than MONDAY,JULY 1, 2024.
This Production Request is to be considered as continuing, and the Company is requested
to provide,by way of supplementary responses, additional documents that it, or any person
acting on its behalf, may later obtain that will augment the documents or information produced.
Please provide answers to each question, supporting workpapers that provide detail or are
the source of information used in calculations, and the name,job title, and telephone number of
FIRST PRODUCTION REQUEST
TO AVISTA UTILITIES and FORD HYDRO 1 JUNE 10, 2024

the person preparing the documents. Please also identify the name,job title, location, and
telephone number of the record holder.
In addition to the written copies provided as response to the requests, please provide all
Excel spreadsheets and electronic files with formulas intact and enabled.
REQUEST NO. 1: Page 4 of the Joint Petition states the current contract expires on
June 30, 2024. However, Page 1 of the proposed Power Purchase Agreement("PPA") states that
the current contract expires on June 29, 2024. Please reconcile the dates.
REQUEST NO. 2: It is expected that the current PPA will expire before the
Commission authorizes the proposed PPA. Please explain whether Ford Hydro plans to
continuously operate the qualifying facility("QF") during the lapsed contract period after the
expiration of the current contract.
REQUEST NO. 3: Page 6 of the PPA states:
At the end of June 2025, and at the end of every third month thereafter, Seller shall
provide to Avista Delivered Net Output estimates pertaining to each of the
additional consecutive three months for which Seller has not yet delivered to Avista
Delivered Net Output estimates, so that Seller shall have provided in advance on a
rolling basis to Avista six months of Delivered Net Output estimates.
Please explain whether"At the end of June 2025" should have been "At the end of the ninth
month of the initial year."
REQUEST NO. 4: Page 7 of the PPA states that"[n]otwithstanding anything in Exhibit
E, the applicable rate for Net Delivered Output that is not Surplus Energy shall be the Avoided
Cost Rates for Non-Fueled Projects Smaller Than Ten Average Megawatts per month—Non-
Levelized that are approved by the Commission and in effect on the Effective Date." Please
respond to the following:
a. Please explain whether the PPA is intended to say, "not Surplus Energy or Shortfall
Energy," instead of"not Surplus Energy;"
FIRST PRODUCTION REQUEST
TO AVISTA UTILITIES and FORD HYDRO 2 JUNE 10, 2024

b. Please explain why the avoided cost rates used for the PPA should be the rates in
effect on the Effective Date, instead of the time when the Parties established Legally
Enforceable Obligations, which is May 15, 2024; and
c. Given the response to part b, please explain whether the statement in quotes needs to
be modified and if so, how?
REQUEST NO. 5: Exhibit E states that"[t]he pricing information provided herein is
based on current avoided cost rates in Idaho and is subject to change as provided in Section 11.1
of the Agreement." Please respond to the following:
a. Please explain whether the PPA intends to reference Section 6.1 instead of Section
11.1; and
b. Given the response to Request No. 4,please explain whether the statement in quotes
needs to be modified and if so, how?
REQUEST NO. 6: The proposed avoided cost rates reflect non-seasonal hydro avoided
cost rates. Please confirm that"non-seasonal hydro' is the proposed technology type. Also,
please provide page numbers or section numbers of the PPA that specify the "non-seasonal
hydro'technology.
REQUEST NO. 7: Section 10.6 (Modifications)references Section 21. Please explain
whether the PPA intends to reference Section 22, instead of Section 21.
REQUEST NO. 8: Exhibit A of the PPA indicates that the nameplate capacity is 1,800
kW based on three 600-kW turbines. Page 6 of the PPA states that generation unit size rating is
1.499 MW. Please respond to the following:
a. Please reconcile the capacity sizes;
b. Please explain how 1.499 MW is determined;
c. Please explain whether the maximum generation capacity is limited to 1.499 MW in
the PPA; and
d. If so,please provide the page number of the PPA that describes the maximum
generation capacity.
FIRST PRODUCTION REQUEST
TO AVISTA UTILITIES and FORD HYDRO 3 JUNE 10, 2024

REQUEST NO. 9: Order No. 32802 states the following:
This Commission assigns REC ownership based on the generating resource
used to calculate the rate. SAR rates, now based on a natural gas resource, assign
RECs to the QF because an equivalent facility constructed by the utility would not
generate RECs. Projects subject to the IRP rate methodology enjoy rates based on
the actual renewable project being constructed whether constructed by the QF or
the utility. Therefore, we find it equitable to split the RECs under these
circumstances. Consequently, the Order does not unreasonably discriminate
among generating technologies. Again, RECs are based on the acquired property
right based upon the factors outlined above.
Order No. 32802. Please respond to the following:
a. Section 7 states that"[t]o the full extent allowed by applicable laws or regulations,
Avista shall own or be entitled to claim fifty percent of the Environmental Attributes
associated with the Net Delivered Output." Please explain if both parties were aware
of Order No. 32802, when the Company and the QF negotiated the proposed PPA;
and
b. Given the response to a., please explain whether Section 7 (including Section 7.1,
Section 7.2, and Section 7.3) needs to be modified and if so,how?
DATED at Boise, Idaho, this 10ffi day of June 2024.
Michael Duval
Deputy Attorney General
I:\Utility\UMISC\PRDREQ\AVU-E-24-06 PR#l.doex
FIRST PRODUCTION REQUEST
TO AVISTA UTILITIES and FORD HYDRO 4 JUNE 10, 2024

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS IOth DAY OF JUNE 2024, SERVED
THE FOREGOING FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
TO AVISTA CORPORATION d/b/a AVISTA UTILITIES and FORD HYDRO LIMITED
PARTNERSHIP, IN CASE NO. AVU-E-24-06, BY E-MAILING A COPY THEREOF
TO THE FOLLOWING:
CHRIS DRAKE MICHAEL G ANDREA
MANAGER RESOURCE OPTIMIZATION SENIOR COUNSEL
AVISTA CORPORATION AVISTA CORPORATION
PO BOX 3727 PO BOX 3727
SPOKANE WA 99220-3727 SPOKANE WA 99220-3727
E-MAIL: chris.drake(et,avistacorp com E-MAIL: miehael.andrea et,a%istaco►:p com
BRENDAJFORD
FORD HYDRO LIMITED PARTNERSHIP
PO BOX 1432
LEWISTON ID 83501
E-MAIL: brenda(«,west ford.co
t�
PATRICIA JORDMN, SECRETARY
CERTIFICATE OF SERVICE