20051101Avista supplemental response staff 3.pdf

Avista Corp.
1411 East Mission PO Box 3727
Spokane, Washington 99220-3727
Telephone [phone]
Toll Free 800-727-9170
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October 31 , 2005
Scott Woodbury
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ill 83720-0074
RE:A VU-05- 7 / Thompson River Cogen
A vista Corporation hereby submits three copies of its SUPPLEMENTAL response to IPUC Staff
Data Request Number 3.
Questions regarding this response should be directed to Mr. Bob Lafferty (509-495-4460).
Mike Fink
Rate Analyst
A vista Utilities
EnclosuresCC. Richardson
Uda
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.
REQUEST:
RESPONSE:
VISTA CORP.
RESPONSE TO REQUEST FOR INFORMATION
Idaho
A VU-OS-
IPUC Staff
Data Request
Staff -Supp
DATE PREPARED: 10/27/2005WITNESS:
RESPONDER: LaffertyDEPT: Energy Resources
TELEPHONE: [phone]
Please provide a copy of the draft contract referred to on page 6, item 8, of
A vista s Answer to the Complaint of Thompson River Co-Gen that A vista
provided to Thompson River Co-Gen in early August 2005. Please mark
those sections of the draft contract that A vista understands Thompson will
not accept.
Please see attachment labeled "Attachment A - A vista Corporation Response
to Staff Data Request No.3" which provides a summary list of objections of
Thompson River Co-Gen to various sections of A vista s draft contract
proposal.
Attachment A
Avista Corporation - Response to Staff Data Request No.
The following is a list of references to the sections of the 8-05 contract draft proposal
by A vista to Thompson River Co-Gen that A vista believes Thompson River Co-Gen
fTRC) would not acceJ2!
A vista Draft
Contract Reference Topic
Appendix A Total delivered net electric power cost.TRC opposes prices
offered by A vista.
Witnesseth section TRC appears to oppose all references to previously stated
generation capability over 10 MW.
Witnesseth section TRC appears to object to all references to steam and power sales
contracts with Thompson River Lumber as part of description of
the project and relationship to the sale of electricity to A vista.
Section 1 TRC objects to all or parts of several definitions. TRC appears
to object to definitions (b), (e), (f), (g), (k), (1), (m), (n), (0), (P),
(q), (s), (t), (v), (w), and (bb). Notably, TRC eliminates the
alternate Point of Delivery in Idaho and moves it to Montana
thereby causing A vista to be responsible for wheeling power to
the A vista system.
Section 1 , ( e)TRC would limit its obligation to pay transmission losses for
delivery of power to Avista s system in Idaho to 4%.
TRC also appears to object to representing the delivery of power
to Thompson River Lumber as a sale of electric power to a
separately owned company and instead identifies it as "other on-
site load" which inappropriately implies that the Thompson
River Lumber load is part of the project or shares common
ownership.
Section 2 (b)TRC proposes to remove a representation that it is the sole
owner of the Facility.
Section 2 , ( e)TRC removes any references to obligation ofTRC to discharge
Section 3 legal obligations to provide electric power to NorthWestern
Section 4(a) (3)Energy pursuant to the CO-GENERATION POWER SALE
AGREEMENT BETWEEN THOMPSON RIVER CO-GEN
LLC AND NORTHWESTERN ENERGY, LLC, as amended.
Section 4, ( c)TRC proposes to omit reference to preservation of obligations of
the Parties.
Section 4, (d) and (e)TRC proposes to omit reference to contingency upon IPUC
approval of contract and contingency upon WUTC approval of
contract or, alternatively, exclusive allocation of contract costs
to the state of Idaho.
Section 5 Sale of power. TRC proposes a substantial re-write to this
section.
Section 6 Determination of payment. TRC deletes this section. The
language from this section appears to be moved in part to
Section 13 - Payments, with additional edits.
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Attachment A
Avista Corporation - Response to Staff Data Request No.
A vista Draft
Contract Reference Topic
Section 7 Minimum deliveries. TRC deletes this section. The language
from this section appears to be moved to Section 20 - Default
with some additional edits.
Section 8 , and Deviation Account. TRC deletes this section. (TRC now
associated prefers to have its power plant dYnamically integrated into the
definitions and sub-A vista electric system.
sections
Section 9 Security. TRC objects to minimum insurance coverage limits
and maximum deductible levels. TRC has further objections to
limits and language in many of the sub-sections under Section 9
(a). TRC objects to Sub-Section 9(b )(3) concerning follow-up
independent engineering certification. TRC objects to Sub-
Section 9(c) concerning lien rights in its entirety.
Section 10 Interconnection, Transmission and Point of Delivery. TRC
objects to several elements of subsections (a), (b) and (c). TRC
proposes to add a subsection that would obligate A vista to pay
TRC for losses caused by A vista s failure to maintain sufficient
capacity from the Point of Delivery, which is not caused by
Force Majeure. (Maintenance is not included in Force Majeure.
A vista is also required to hold TRC harmless for A vista s failure
to maintain its transmission system or provide adequate
takeaway capacity from the Point of Delivery. TRC's proposal
causes A vista to bear the costs associated with moving power
delivered to the BP A transmission interconnection with
NorthWestern Energy s system to Avista s system in Idaho.
Section 11 TRC proposes changes to sub-sections (d), (e), (g),
Section 13 Payments. TRC proposes new sub-sections and edits to (a) and
(b).
Section 18 Water Rights. TRC apparently is unwilling to subordinate its
use of water from the Clark Fork River to Avista s superior water
right and therefore deletes this section.
Section 20 Default. TRC proposes several edits and additions to sub-
sections (a), (b) and (c). A new sub-section (b) is proposed
concerning termination for inability of the Facility to perform.
Section 33 Transmission Agreements. TRC deletes this section in its
entirety.
Exhibit C Electric Power Delivery One-Line Diagram. TRC deletes this
exhibit.
Exhibit D Electrical One Line Diagram of Facility. TRC deletes this
exhibit.
Exhibit H Form of Mortgage. TRC deletes this exhibit.
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