20140421_4348.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF

FROM: KRISTINE SASSER
DEPUTY ATTORNEY GENERAL

DATE: APRIL 17, 2014

SUBJECT: AVISTA’S APPLICATION FOR PROPOSED REVISIONS TO ITS
TARIFF SCHEDULE 62, CASE NO. AVU-E-14-03

On March 28, 2014, Avista filed an Application proposing revisions to its Tariff
Schedule 62, Cogeneration and Small Power Production Schedule. Avista asks that its
Application be processed by Modified Procedure. The Company also requests that its proposed
changes be effective as of May 5, 2014.
BACKGROUND
Avista’s Application is submitted in response to workshops held between parties to
the GNR-E-11-03 case. The Commission’s final Order in GNR-E-11-03 noted that multiple
parties to the case submitted proposals regarding Commission approval of contracting
procedures and rules for utilities and QFs. The Commission stated that a fair and consistent set
of rules “would reduce confusion and provide more certainty regarding the expectations of all
contracting parties.” Order No. 32697 at 48. The Commission directed the parties to participate
in workshops in order “to begin to form a structure for fair and reasonable contracting
procedures and rules.” Id. The parties collaborated and, ultimately, submitted a draft tariff to the
Commission that utilities could use as a model in the creation of a utility-specific tariff.
THE APPLICATION
Avista maintains that its proposed tariff revisions provide procedures to be used by
Avista and QF developers in negotiating and entering into power purchase agreements for the
sale of the electrical output of QFs to Avista under PURPA at avoided cost rates. Avista asserts
that the proposed procedures generally (1) detail the information QF developers are to provide to
DECISION MEMORANDUM 2
the Company; and (2) provide timelines for both QF developers and Avista to follow in the
process for negotiating and entering into a power purchase agreement.
STAFF RECOMMENDATION
Staff has reviewed Avista’s Application and recommends that the matter be
processed by Modified Procedure with a 21-day comment period. Staff further recommends that
the Company’s proposed effective date of May 5, 2014, be suspended.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application setting a 21-day
comment deadline?
Does the Commission wish to suspend the proposed effective date of May 5, 2014,
for a period of 30 days plus five (5) months pursuant to Idaho Code § 61-622 and IDAPA
31.01.01.123.03?

Kristine A. Sasser
Deputy Attorney General

M_AVU-E-14-03_ks