20021224Potlatch Complaint.pdf

Conley Ward, ISB #1683
Michael Creamer, ISB # 4030
GIVENS PURSLEY, LLP
277 North 6th Street, Suite 200
O. Box 2720
Boise, ill 83701
[phone]
EECEIVED mFfLEO
ZOHZ DEC 24 A~11O:
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Attorneys for Potlatch Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
POTLATCH CORPORATION
Complainant
CASE NO. J va- E- tJ'l -'tJ
Respondent
POTLATCH'S COMPLAINT
A VISTA UTILITIES
Potlatch Corporation hereby complains to the Idaho Public Utilities Commission 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. In support
of this filing, Complainant states as follows:
1. The Idaho Public Utilities Commission ("Commission ) has jurisdiction over this
matter pursuant to title 61 of the Idaho Code and the Public Utility Regulatory Policies Act of
197 8 ("PURP A"
2. Potlatch Corporation ("Potlatch") is a forest products company that operates wood
pulp, paperboard, tissue and wood products manufacturing plants at Lewiston, Idaho
(collectively, the "Lewiston Facility
1 Potlatch also operates other northern Idaho plants that are served by Avista Utilities. These plants are not involved
in this Complaint.
POTLATCH'S COMPLAINT-
3. A vista Utilities ("A vista ) is an investor owned public utility that provides electricity
and natural gas service to customers located predominantly in northern Idaho and eastern
Washington. A vista is the certificated electric service provider for the area in and around
Lewiston, Idaho.
4. Potlatch owns and operates four separate Qualifying Facilities at its Lewiston Facility
capable of generating approximately 95 megawatts of energy. From 1991 through December 31
2001 , Potlatch sold the electric energy produced by its Qualifying Facilities to Avista (formerly,
The Washington Water Power Company ) pursuant to the provisions of an Electric Service and
Purchase Agreement between Potlatch and Avista dated January 3 , 1991 ("1991 Agreement"
The Idaho Public Utilities Commission approved the 1991 Agreement on August 16, 1991.
IPUC Case No. WWP-91-, Order No. 23858 (August 16, 1991).
5. On October 2 2001 Potlatch filed with Avista, in the manner required by applicable
Commission orders, its written request for a firm quote for Avista s purchase of its Qualified
Facilities' generation after the expiration of the 1991 Agreement. Thereafter, Avista and
Potlatch representatives met on several occasions in an attempt to negotiate a successor PURP
agreement. These meetings have served only to establish the fact that Potlatch and Avista have
fundamental and irreconcilable differences that will not be resolved through further negotiations.
6. In its response and negotiations to date, Avista has failed and refused to offer Potlatch
a PURP A contract that complies with PURP A's requirements and this Commission s orders.
Specifically, the purchase power rates proposed by Avista are well below Avista s avoided costs
as defined in 18 CFR ~ 292.101 and this Commission s Order No. IPC-95-9. In addition
Avista is attempting to impose unreasonable contract terms and conditions as a prerequisite to
any purchase from Potlatch.
POTLATCH'S COMPLAINT-
7. Potlatch has no available remedy at law for Avista s unlawful conduct other than to
seek an order from this Commission requiring Avista to purchase the output of Potlatch'
Qualifying Facilities in the manner required by law. Accordingly, the Commission is the
appropriate body to resolve this Complaint.
WHEREFORE, Potlatch prays that the Idaho Public Utilities Commission issue an order:
(a) requiring Avista to purchase the output from Potlatch's Qualifying Facilities at a rate
equivalent to A vista s avoided costs;
(b) establishing a just and reasonable avoided cost rate for A vista; and
(c) granting such further relief as the comm
jLsion may find to be just and reasonable.RESPECTFULLY SUBMITTED this day of December, 2002.
Conley War
Givens Pursley LLP
Attorney for Potlatch
POTLATCH'S COMPLAINT-
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 24th day of December, 2002, I caused to be served a
true and correct copy of the foregoing by the method indicated below, and addressed to the
following:
Jean Jewell
Idaho Public Utilities Commission
472 W. Washington Street
O. Box 83720
Boise, ill 83720-0074
- US. Mail - Fax By Hand
David 1. Meyer
Senior Vice President and General Counsel
A vista Corporation
1411 E. Mission Ave.
Spokane, W A 99220
US. Mail - Fax - By Hand
~,
~-mina Smith
POTLATCH'S COMPLAINT-4