20061222notice_of_application_avu.pdf

Office of the Secretary
Service Date
December 22, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT PETITION
OF AVISTA CORPORATION AND STIMSON
LUMBER COMPANY FOR APPROV AL OF
A POWER PURCHASE AND SALE AGREEMENT
CASE NO. A VU-O6-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF
COMMENT/PROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on December 6, 2006, A vista Corporation and
Stimson Lumber Company (collectiv~ly Petitioners) filed a Joint Petition with the Idaho Public
Utilities Commission (Commission) for an Order approving a Power Purchase Agreement
(Agreement) between Stimson Lumber Company (Stimson) and A vista Corporation (A vista;
Company) dated October 1 , 2006. Also included is a Generator Interconnection Agreement
(GIA) between Avista and Stimson.
Stimson Lumber Company operates a thermal wood waste small power electric
generation plant at Plummer, Idaho. Stimson s facility is capable of generating up to
approximately 6.5 MW of energy. The facility is a qualifying facility (QF) pursuant to the
Public Utility Regulatory Policies Act of 1978 (PURP A).
The Stimson facility was previously owned and operated by HaleyWest LLC.
Stimson has assumed HaleyWest LLC'obligations under a Power Sale and Purchase
Agreement between Avista and HaleyWest LLC that expired under its own terms on September
, 2006. Stimson and A vista both desired that energy deliveries from the facility to A vista
continue without interruption following termination of the HaleyWest LLC Agreement.
The Stimson Purchase and Sale Agreement is for a term of five years. A vista will be
the sole purchaser of Stimson s generation. For all Net Delivered Output received by Avista that
is not surplus energy, Avista shall pay the published non-Ievelized avoided cost rates for non-
fueled projects smaller than 10 MW. For all surplus energy received by Avista, Avista shall pay
to Stimson the current month's market energy cost per megawatt hour or the Net Delivered
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
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Output purchase price, whichever is lower. Stimson shall operate the facility in such a manner
that the hourly scheduled amount of Net Delivered Output does not exceed 6.5 MW in any hour.
Avista shall have the right, but not the obligation to purchase any Net Delivered Output from the
facility in excess of 6.5 MW in any hour. The maximum annual amount of electric power that
Avista is obligated to purchase is 56 940 MWh in any operating year that is a non-leap year;
(57 069 MWh leap year).
Petitioners are not requesting retroactive approval of the Agreement. The Agreement
allows for energy deliveries and payments by A vista to Stimson at the published avoided cost
rates effective October 1 , 2006. In the event that the Commission does not approve the
Agreement by January 30, 2007, or approves it subject to conditions unacceptable to the parties
the Agreement will terminate. In such event, Stimson shall refund certain amounts to A vista.
Reference Agreement ~ 5.4.
The Petitioners request Commission approval of the Agreement and the related
interconnection agreement. The Petitioners also request a Commission Order allowing deferral
and recovery of all power purchase costs subject to A vista s Power Cost Adjustment (PCA)
mechanism or as otherwise recovered by A vista through base rates, and declaring that prices to
be paid for energy and capacity are just and reasonable, in the public interest, and that the costs
incurred by A vista for purchasing capacity and energy from Stimson are legitimate expenses.
The parties request approval of the Agreement as satisfaction of the entirety of Avista
obligations under PURP A with regard to the facility.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. A VU-06-1O. The Commission has preliminarily found that the public
interest in this matter may not require a hearing to consider the issues presented and that issues
raised by the Company s filing may be processed under Modified Procedure , by written
submission rather than by hearing.Reference Commission Rules of Procedure IDAP A
31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the A vista/Stimson Lumber Power Purchase and Sale Agreement and
the use of Modified Procedure in Case No. A VU-06-10 is Thursday, January 11,2007.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENTIPROTEST DEADLINE
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and may
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 A
31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case
No. A VU-06-10 should be mailed to the Commission, the Company and Stimson at the
addresses reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
A vista Corporation:
Street Address for Express Mail:
David 1. Meyer
Vice President and Chief Counsel for
Regulatory and Governmental Affairs
A vista Corporation
PO Box 3727
1411 E. Mission Avenue, MSC-
Spokane, W A 99220-3727
472 W. Washington Street
Boise, ID 83702-5983
Kelly O. Norwood
Vice President State and Federal Regulation
A vista Corporation
PO Box 3727
1411 E. Mission Avenue, MSC-
Spokane, W A 99220-3727
E-mail: david.meyer~avistacorp.com
kelly .norwood~avistacorp. com
Stimson Lumber:
William E. Peressini
Vice President and Chief Financial Officer
Stimson Lumber Company
520 SW Yamhill, Suite 700
Portland, OR 97204-1330
All 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.idaho.gov. Click the "Comments and Questions
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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 at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Application in Case No. AVU-06-
may be viewed at www.puc.idaho.gov by clicking on "File Room" and "Electric Cases " or can
be viewed during regular business hours at the Idaho Public Utilities Commission, 472 W.
Washington Street, Boise, Idaho and at the Idaho offices of A vista Corporation.
DATED at Boise, Idaho this .;l.;L Ai( day of December 2006.
Jea . Jewell
Co mission Secretary
bls/N:A VU-O6-1O sw
NOTICE OF APPLICATION
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