20030127Avista's Answer.pdf

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DAVID 1. MEYER
SENIOR VICE PRESIDENT AND GENERAL COUNSEL
A VISTA CORPORATION
O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: [phone]
FACSIMILE: [phone]
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R. BLAIR STRONG
PAINE, HAMBLEN, COFFIN, BROOKE & MILLER LLP
717 WEST SPRAGUE AVENUE, SUITE 1200
SPOKANE, WASHINGTON 99201-3505
TELEPHONE: [phone]
FACSIMILE: [phone]
ATTORNEYS FOR A VISTA CORPORATION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. A VU-02-
POTLATCH CORPORATION
Complainant
Respondent
A VISTA CORPORATION'
ANS WER, AFFIRMATIVE
DEFENSE, REQUEST FOR
DEFERRAL OF HEARING AND
NOTICE OF APPEARANCES
AVISTA UTILITIES
ANSWER
COMES NOW Avista Corporation ("Avista ) and denies the complaint that
A vista Utilities has failed and refused, and continues to fail and refuse, to purchase the
cogeneration output of Potlatch's Qualifying Facilities in the manner required by law.
Furthermore, Avista answers the separately enumerated sections of Potlatch's Complaint
A VISTA CORPORATION'
ANSWER TO COMPLAINT -
as follows:
With respect to Paragraph No.1 of Potlatch's Complaint (pertaining to the Idaho
Public Utilities Commission having jurisdiction over the matter), A vista admits the same.
II.
With respect to Paragraph No.2 of Potlatch's Complaint (regarding the business
operations of Potlatch), Avista admits the same.
III.
With Respect to Paragraph No.3 of Potlatch's Complaint, Avista admits that
A vista Utilities is an operating division of A vista, that A vista is owned by investors, and
that A vista provides electricity and natural gas service to customers, the majority of
whom are located in northern Idaho and eastern Washington. A vista also admits that
provides electricity to customers in and around the area of Lewiston, Idaho, the location
of Potlatch's Lewiston Facility, but denies that such area is certificated.
IV.
With respect to Paragraph No.4 of Potlatch's Complaint, Avista admits that
Potlatch owns and operates four generators at its Lewiston Facility that, under the current
configuration, are operated and metered as one project. Avista is without knowledge or
information sufficient to form a belief as to whether the generating facility or facilities
currently have or will have Qualifying Facility status pursuant to the rules and regulations
of the Federal Energy Regulatory Commission, or whether the generating facilities
currently are able or will be able to generate 95 megawatts of electric power, and
A VISTA CORPORATION'
ANSWER TO COMPLAINT - 2
therefore Avista denies the same. Avista admits the remaining allegations of Paragraph
No.4 of Potlatch's Complaint.
With respect to Paragraph No.5 of Potlatch's Complaint, Avista admits that it
received from Potlatch a letter dated October 2 2001 , requesting a quote "for the
purchase of power generated by Potlatch after the expiration of the 1991 Agreement."
A vista further admits that A vista and Potlatch representatives met subsequent to the date
of the letter. Avista denies the remaining allegations contained in Paragraph No.5 of
Potlatch's Complaint.
VI.
With respect to Paragraph No.6 of Potlatch's Complaint, Avista denies the same.
VII.
The allegations contained in Paragraph No.7 of Potlatch's Complaint are legal
contentions and characterizations to which no response is required. To the extent a
response is required, Avista denies the allegations contained in paragraph No.7 of
Potlatch's Complaint.
VIII.
A vista denies all allegations not expressly admitted herein.
AFFIRMATIVE DEFENSE
On or about October 2 2001 , Mr. Howard Ray of Potlatch Corporation
dispatched a letter to Mr. Douglas Young of A vista Corporation. Said letter represented
that Potlatch was in the process of determining the most beneficial way to sell the output
A VISTA CORPORATION'
ANSWER TO COMPLAINT - 3
from its generation facilities at the expiration of the 1991 contract. Said letter identified a
sale of Potlatch's generation to Avista by avoided cost as being one option for the sale of
power. Potlatch requested a meeting on October 12 2001 in said letter.
II.
On October 10, 2001 , Potlatch issued a request for proposals for the wholesale
purchase of electric power generated by Potlatch.
III.
Representatives of Potlatch, Avista Corporation and the IPUC Staff met on
October 12 2001. At said meeting, Potlatch representatives stated that they would not
know what kind of product they would be offering until they knew more about variances
in markets and prices.
IV.
Representatives of Potlatch and Avista conducted additional meetings on
November 14, 2001 and December 12 2001. At no time during the November and
December meetings or subsequent to the meetings did Potlatch unconditionally offer a
quantity of power that it desired to supply, the period oftime that it desired to supply
such power or the non-price related features of a contract that it desired.
Potlatch has not been ready, willing and able to enter into a contract for the sale of
power that sets forth specific obligations of the parties and that conforms with the
requirements of the Commission.
A VISTA CORPORATION'
ANSWER TO COMPLAINT - 4
REQUEST FOR DEFERRAL OF HEARING
A vista Corporation respectfully requests the Commission to defer any action on
the Complaint for a period of ninety (90) days, and encourage the parties to engage in
further settlement discussions, with Staffs active participation. In support of its request
A vista submits that there have been no substantive communications for nearly a year
respecting a possible sale of power by Potlatch to A vista. Furthermore, wholesale market
conditions have changed subsequent to the last discussion, which may improve the
opportunity for A vista and Potlatch to reach agreement on a sale of power from the
Lewiston facility. If the Commission defers action upon the Complaint, Avista will
endeavor to initiate settlement discussions with Potlatch for the purpose of attempting to
resolve disputed matters without the necessity of hearing. A vista has requested the
participation of the Commission Staff to help facilitate settlement discussions, and
Commission Staff has agreed to participate.
NOTICE OF APPEARANCES
A vista Corporation request that all pleadings and communications in this matter
be served upon the following:
David J. Meyer
Senior Vice President & General Counsel
A vista Corporation
O. Box 3727
1411 East Mission Avenue
Spokane, Washington 99220-3727
Telephone: [phone]
Facsimile: [phone]
E-mail: david.meyer~avistacorp.com
A VISTA CORPORATION'
ANSWER TO COMPLAINT - 5
Kelly Norwood
Vice President Rates and Regulation
A vista Corporation
O. Box 3727
1411 East Mission Avenue
Spokane, Washington 99220-3727
Telephone: [phone]
Facsimile: [phone]
E-mail: kelly.norwood~avistacorp.com
R. Blair Strong
Paine, Hamblen, Coffin, Brooke & Miller LLP
717 West Sprague Avenue, Suite 1200
Spokane, Washington 99201-3505
Telephone: [phone]
Facsimile: [phone]
E-mail: rbstrong~painehamblen.com
Pursuant to Rule 41 (ID AP A 31.01.01.041), A vista requests that the Commission
authorize service upon the three representatives of Avista, listed above.
DATED this -.:2 day of January 2003.
Paine, Hamblen, Coffin, Brooke & Miller LLP
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R. Bl~ Sw~
Attorneys for A vista Corporation
A VISTA CORPORATION'
ANSWER TO COMPLAINT - 6
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 7...3d day of January 2003 , I caused to be
served a true and correct copy of the foregoing by the method indicated below, and
addressed to the following:
Ms. Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83720-0074
Conley Ward
Givens Pursley LLP
277 North 6th Street, Suite 200
O. Box 2720
Boise, Idaho 83701
u.S. Mail
Hand Delivery
Facsimile
XXXX Overnight Mail
XXXX Electronic Mail
XXXX S. Mail
Hand Delivery
Facsimile
Overnight Mail
Electronic Mail
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R. BLAIR STRONG
00088168
A VISTA CORPORATION'
ANSWER TO COMPLAINT - 7