20240723CL_Amendment 1.pdf

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Avista Corp. ea�11!� •
1411 East Mission P.O. Box 3727 jstA
Spokane, Washington 99220-0500 Corp.
Telephone [phone] RECEIVED
Toll Free 800-727-9170 Tuesday, July 23, 2024
IDAHO PUBLIC
July 23, 2024 UTILITIES COMMISSION
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A
Boise, Idaho 83714
RE: AVU-E-24-06 — Amendment 1 to the Power Purchase Agreement between Avista
Corporation and Ford Hydro LP
Included for filing with the Commission is the electronic copy of Avista Corporation and Ford
Hydro's Amendment 1 to the Power Purchase Agreement between Avista and Ford Hydro. The
attached amendment is in compliance with Staff s recommendations in Staff Comments filed with
the Commission on July 11, 2024.
Should you have any questions regarding this filing, please do not hesitate to call Michael Andrea at
[phone]. Thank you in advance for your assistance.
Sincerely,
/s/Paul Kimball
Paul Kimball
Mgr. of Compliance & Discovery
Enclosures

AMENDMENT NO. 1
This Amendment No. 1 ("Amendment")to the Power Purchase Agreement
("Agreement") between Ford Hydro Limited Partnership ("Seller") and Avista Corporation
("Avista"), is entered into by the Parties and this Amendment shall be effective as of the date of
the order issued by the Idaho Public Utilities Commission("Commission") approving this
Amendment ("Amendment Effective Date").
RECITALS
WHEREAS,the Parties entered into the Agreement on May 15, 2024,under which Seller
is to deliver and sell, and Avista is to purchase,the output generated by Seller's Facility;
WHEREAS, on July 11, 2024, Commission Staff("Staff') submitted comments on the
Agreement recommending certain revisions to the Agreement; and
WHEREAS, the Parties are amenable to revising the Agreement consistent with Staff s
comments.
NOW THEREFORE, it is agreed as follows:
AGREEMENT TO AMEND
1. In its comments, Staff notes that the Facility is a non-seasonal hydro project, but
the PPA does not explicitly specify the technology type. Staff therefore recommends that the
Facility's technology type be specified in the PPA"[i]n order to avoid confusion and distinguish
the Facility from seasonal hydro projects[.]" In response to Staff s comments,the first recital is
deleted in its entirety and replaced with the following:
WHEREAS, Seller owns, operates and maintains a 1.499 MW non-seasonal
hydroelectric generating unit(s) near Weippe, Idaho, as more fully described in Exhibit A
("Facility); and
2. The fourth recital in the Agreement incorrectly states that the previous contract
was to expire on June 29, 2024. The previous contract actually expired on June 30,2024.
Accordingly,the fourth recital in the Agreement is deleted in its entirety and replaced with the
following:
WHEREAS, the Second Amended and Restated Agreement will expire in
accordance with its terms on June 30, 2024;
3. Section 5.2 of the Agreement incorrectly states that,pursuant to that section,
Seller is to provide to Avista in advance on a rolling basis "six months of Delivered Net Output
estimates." The Parties intended to adopt a three-month rolling window of Delivered Net Output
estimates. Accordingly,the first sentence of Section 5.2 is deleted in its entirety and replaced
with the following:
Page- 1 AMENDMENT NO. 1 TO THE POWER PURCHASE AGREEMENT BETWEEN
FORD HYDRO LIMITED PARTNERSHIP AND AVISTA CORPORATION

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 three months of Delivered Net Output estimates.
4. The third sentence in Section 6.1 of the Agreement incorrectly omits the phrase
"or Shortfall Energy". Staff also indicates in its comments that the term"Effective Date" in the
third sentence in Section 6.1 should be replaced with May 15, 2024. Accordingly,the third
sentence in Section 6.1 of the Agreement is deleted in its entirety and replaced with the
following:
Notwithstanding anything in Exhibit E, the applicable rate for Net Delivered Output that
is not Surplus Energy or Shortfall 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 May 15, 2024.
5. Section 10.6 of the Agreement incorrectly states that any material modifications
to the Facility will require review and amendment of the Agreement, subject to Section 21 of the
Agreement. The reference to Section 21 of the Agreement should be a reference to Section 22 of
the Agreement. Accordingly,the second sentence in Section 10.6 of the Agreement is deleted in
its entirety and replaced with the following:
Any material modifications to the Facility, including but not limited to the generator or
turbine,that(1) increases the Facility nameplate capacity rating, or(2) changes the
primary energy source, or(3) changes to the generator fuel, will require a review, and
subject to Section 22 of this Agreement, amendment of the Agreement, including
amendment to Exhibit A to reflect the Facility as actually modified and adjustment of the
applicable pricing to ensure that, as of the date when output is first delivered from the
modified Facility,payments to Seller reflect the proper authorized rates for the Facility as
modified.
6. Exhibit E incorrectly references Section 11.1 instead of Section 6.1. Accordingly,
the sentence above the table in Exhibit E is deleted and replaced in its entirety with the
following:
The pricing information provided herein is based on current avoided cost rates in Idaho
and is subject to change as provided in Section 6.1 of the Agreement.
7. Except as expressly amended by the provisions set forth in this Amendment, all of
the terms and conditions of the Agreement, as amended, shall remain in full force and effect
following execution of this Amendment and each Parry confirms,ratifies and approves the
Agreement as amended by this Amendment. All capitalized terms used herein and not otherwise
defined shall have the respective meanings given to such terms in the Agreement. For the
avoidance of doubt,this Amendment is hereby incorporated in the Agreement and, as of the
Page -2 AMENDMENT NO. 1 TO THE POWER PURCHASE AGREEMENT BETWEEN
FORD HYDRO LIMITED PARTNERSHIP AND AVISTA CORPORATION

effective date of this Amendment, all references to the Agreement shall be deemed to be
references to the Agreement as amended by this Amendment.
8. This Amendment may be executed in two (2)or more counterparts, each of which
shall be deemed as an original and together shall constitute one and the same document.
IN WITNESS WHEREOF, each Party has caused this Amendment to be executed by its
duly authorized representatives as of the date first set forth below.
FORD IMITE AVISTA CORPORATION
PART KR13 JLPK
Printed Name: Printed Name: Christopher Drake
Title: an Cc e 2— Title: Manager, Res Opts
Date: J c t �2-0 2- Date: July 19th, 2024
Page - 3 AMENDMENT NO. 1 TO THE POWER PURCHASE AGREEMENT BETWEEN
FORD HYDRO LIMITED PARTNERSHIP AND AVISTA CORPORATION