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Home My WebLink About20031023Notice of Joint Petition.pdfOtlice of the Secretary Service Date BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION October 23, 2003 IN THE MATTER OF THE JOINT PETITION OF AVISTACORPORATION AND POTLATCH ) CORPORATION FOR APPROVAL OF POWER PURCHASE AND SALE AGREEMENT. CASE NO. A VU-O3- 7 NOTICE OF JOINT PETITION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/ PROTEST DEADLINE NOTICE OF REPLY COMMENT DEADLINE YOU ARE HEREBY NOTIFIED that on August 25 2003 , Avista Corporation dba A vista Utilities (A vista) and Potlatch Corporation (Potlatch) filed a Petition with the Idaho Public Utilities Commission (Commission) requesting an Order approving a submitted Power Purchase and Sale Agreement between Avista and Potlatch dated July 22, 2003. Potlatch operates a wood pulp, paperboard, tissue and wood product manufacturing facility in Lewiston Idaho. Potlatch owns and operates four electric generators at the Lewiston plant that are capable of generating approximately 130 megawatts (MWs) of energy. The Potlatch electric generators are qualifying facilities (QFs) pursuant to the Public Utilities Regulatory Policies Act of 1978 (PURPA). Direct testimony of Avista supporting the Purchase and Sale Agreement was filed with the Commission on September 26, 2003. Also filed with the Commission on October 10 2003 is a related Interconnection Agreement dated September 22 2003. The submitted Power Purchase and Sale Agreement (Agreement) is for a ten-year term beginning July 1 , 2003 and ending June 30, 2013. The Agreement is conditioned upon approval by the Commission of 1) a direct assignment of all power purchase costs paid by A vista to Potlatch under the Purchase and Sale Agreement to A vista s Idaho operations and 2) deferral and recovery of 100% of all power purchase costs paid by A vista to Potlatch under the NOTICE OF JOINT PETITION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE NOTICE OF REPLY COMMENT DEADLINE Agreement to Avista s Idaho Power Cost Adjustment (PCA) mechanism (Schedule 66) or otherwise recovered by A vista through base rates. As recited in the Joint Petition of the parties, Avista will be the sole purchaser of Potlatch's generation and said purchase is intended to satisfy A vista s obligations under PURP A to purchase power from the qualifying facilities at the Lewiston plant. A vista will pay Potlatch $42.92 per MWh up to a maximum base generation amount of 543 120 MWh (544 608 during a leap year) generated by Potlatch during each July 1 through June 30 period (Operating Year) of the Agreement. This amount is equivalent to 62 average MW and is referred to in the Agreement as the "Base Generation Amount." Amounts generated by Potlatch in excess of the maximum Base Generation Amount each Operating Y ear ("Excess Generation Amount") will either be purchased by A vista at 85% of the applicable Mid-Columbia Index Price, with a price cap of $55 per MWh, or used by Potlatch to reduce its load requirement from A vista. The purchase of Potlatch's Excess Generation Amount by Avista is limited to 43 800 MWh (5 average MW) each Operating Year. Additionally, it is noted that Potlatch has the capacity to generate additional amounts Incremental Generation Amounts ) under certain circumstances. The Purchase and Sale Agreement provides for the purchase by A vista of Incremental Generation Amounts, under the terms and conditions specified in the Agreement. As reflected in the Agreement, A vista will serve Potlatch's load requirement at Lewiston s plant under its Extra Large General Service Schedule 25 rates, including all applicable rate adjustments, unless the Commission issues an Order in the future authorizing different billing rates. A vista and Potlatch request that the Commission issue an Order approving the Purchase and Sale Agreement as a settlement of all known existing disputes between the parties including without limitation, Case No. A VU-OI-05 (In the matter of the Petition of Potlatch Corporation for an Order determining the terms and conditions of Potlatch's purchase of electricity from Avista Utilities) and Case No. A VU-02-08 (a Potlatch complaint alleging that Avista was refusing to purchase the cogeneration of Potlatch's PURPA qualifying facilities at its Lewiston plant). NOTICE OF JOINT PETITION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE NOTICE OF REPLY COMMENT DEADLINE YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. A VU-03- 7. The Commission has preliminarily determined that the public interest regarding the AvistaIPotlatch July 22, 2003 , Purchase and Sale Agreement may not require a hearing to consider the issues presented, and that the issues raised by the Petition may be processed under Modified Procedure , by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204. YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in this proceeding unless it receives written protests or comments opposing the use of Modified Procedure and stating why Modified Procedure should not be used. 31.01.01.203. Reference IDAP A YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application and the Commission s use of Modified Procedure in Case No. A VU-03-07 is Friday, November 14, 2003. YOU ARE FURTHER NOTIFIED that the deadline for Avista and Potlatch to file reply comments in Case No. A VU-03-07 is Friday, November 28, 2003. YOU ARE FURTHER NOTIFIED that persons desiring a hearing must specifically request a hearing in their written protests or comments. If no written comments or protests are received within the deadline, the Commission will consider the matter on its merits and enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order based on the written positions before it. Reference IDAP 31.01.01.204. YOU ARE FURTHER NOTIFIED that written comments concerning Case No. A VU-03-07 should be mailed to the Commission and to Avista and Potlatch at the addresses reflected below. NOTICE OF JOINT PETITION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE NOTICE OF REPLY COMMENT DEADLINE COMMISSION SECRETARY IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 Street Address for Express Mail: DA VID MEYER SENIOR VP AND GENERAL COUNSEL AVISTA CORPORATION 1411 EAST MISSION AVENUE PO BOX 3727 SPOKANE, WA 99220 dmever($avistacoro. com 472 WWASHINGTON ST BOISE, ID 83702-5983 R BLAIR STRONG PAINE, HAMBLEN, COFFIN, BROOKE & MILLER LLP 717 W SPRAGUE AVE, STE 1200 SPOKANE W A 99201 rb strong: (illp ain e ham bien. com A VISTA PAMELA MULL ASSOCIATE GENERAL COUNSEL POTLATCH CORPORATION 601 WEST RIVERSIDE AVE, STE 1100 SPOKANE, WA 99201 Pame la. mull($potlatchcorp. com CONLEY WARD GIVENS PURSLEY 277 NORTH 6TH STREET, STE 200 PO BOX 2720 BOISE ID 83701-2720 cew(illgivenspursley.com POTLATCH These comments should contain the case caption and case number shown on the first page of this document. Persons desiring to submit comments Via e-mail may do so by accessing the Commission s home page located at www.puc.state.id.. Click the "Comments and Questions icon, and complete the comment form, using the case number as it appears on the front of this document. These comments must also be sent to A vista and Potlatch at the e-mail addresses listed above. YOU ARE FURTHER NOTIFIED that the Petition and pre-filed testimony in Case No. A VU-03-07 can be reviewed at the Idaho Public Utilities Commission, 472 West Washington Street, Boise, Idaho and at the Idaho offices of A vista. In addition, the Application may be viewed by accessing the Commission s website at www.puc.state.id.under the "File Room" icon and selecting the appropriate topic heading. NOTICE OF JOINT PETITION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE NOTICE OF REPLY COMMENT DEADLINE DATED at Boise, Idaho this J.~ ,Jl. day of October 2003. L1~ MARSHA H. SMITH, COMMISSIONER Vld/N:AVUEO307 NOTICE OF JOINT PETITION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE NOTICE OF REPLY COMMENT DEADLINE