20200218_jrh1.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R.HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE:FEBRUARY 14,2020
SUBJECT:AVISTA CORPORATION'S APPLICATION FOR APPROVAL OR
REJECTION OF A POWER PURCHASE AGREEMENT WITH STIMSON
LUMBER COMPANY;CASE NO.AVU-E-19-16.
On December 31,2019,A vista Corporation ("Avista"or "Company")asked the
Commission to approve or reject a proposed Power Purchase Agreement ("Agreement")with
Stimson Lumber Company ("Stimson"or "Seller")for the energy generated by a thermal wood
waste small power electric generation plant operated by Stimson in Plummer,Idaho ("Facility").
The Facility is a qualifying facility ("QF")under the Public Utility Regulatory Policies Act of
1978 ("PURPA").
On January 31,2020,the Commission issued its Notice of Application,Notice of Modified
Procedure and Order setting a written comment deadline for the Commission Staff ("Staff")and
interested parties for February 7,2020.See Order No.34538.The Commission also set a reply
comment deadline of February 14,2020.Id.Staff filed comments on February 7,2014.On
February 14,2020,Avista filed correspondence with the Commission providing that it was
amending the Agreement with Stimson and requested more time to file the proposed revised
Agreement once completed.
AVISTA'S CORRESPONDENCE
In response to Staff Comments,Stimson and Avista intend to amend the Agreement so its
term extends through December 31,2021,two years from the proposed effective date of January
1,2020.Avista Correspondence at 1.Besides extending the term of the proposed Agreement
Avista represents that it will be amended to:
DECISION MEMORANDUM I
(i)correct the definition of Market Energy Cost,
(ii)remove the provision that require[s]the Commission to approve the
Agreement by February 21,2020,and
(iii)to replace Exhibit E to include the applicable rates for the period from
January I,2020 through December 31,2021.
Id.at 1.Avista anticipates that it will submit the proposed amendment to the Commission
by February 14,2020.
Avista states that due to the amendment,it respectfully requests that the
Commission delay any decision on the Company's Application and Agreement until after
it is filed.Id.
STAFF RECOMMENDATION
The proposed amendments are a direct response to Staff's Comments.Once filed Staff,
and any other interested party,should be given the opportunity to file comments on the
amendments to the proposed Agreement.Accordingly,after the amendment to the proposed
Agreement is filed Staff recommends that the Commission allow for additional comments to be
filed within seven days (7)from its Order.Further,Staff recommends that the Commission allow
the Company to respond to Staff's original comments,filed on February 7,2020,and any others
that are filed fourteen (14)days from its Order.
COMMISSION DECISION
After the proposed amendment to the Agreement is filed does the Commission wish to
issue an Order:
•Allowing additional comments to be filed by Staff or any other interested party within
seven days (7)from its Order?
•Allowingthe Company to respond to Staff's original comments,filed on February 7,2020,
and any others that are filed fourteen (14)days from its Order?
Ö John R.Hammond Jr.
Deputy Attorney General
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DECISION MEMORANDUM 2