20070822notice_of_modified_procedure.pdf

Office of the Secretary
Service Date
August 22, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
VISTA CORPORATION FOR AN ORDER
REVISING A VISTA CORPORATION'S
OBLIGATIONS TO ENTER INTO
CONTRACTS TO PURCHASE ENERGY
GENERATED BY WIND-POWERED SMALL
POWER GENERATION FACILITIES
CASE NO. A VU-O7-
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF
COMMENT/PROTEST DEADLINE
On April 2, 2007, Avista Corporation (Avista; Company) filed an Application with
the Idaho Public Utilities Commission (Commission) requesting a change in the Company
PURPA obligations for wind QFs. Avista proposes raising the cap on entitlement to published
avoided cost rates for wind-powered small power generation facilities that are qualifying
facilities (QFs) under Sections 201 and 210 of the Public Utility Regulatory Policies Act of 1978
(PURPA) from the current level of 100 kW to 10 average megawatts per month (10 aMW),
subject to the following conditions:
1. Reducing the published avoided cost rates applicable to purchases by
Avista of electric power from wind-powered QFs by 12%, as a
percentage reduction to be applied against scheduled avoided cost rates
except where the QF developer agrees in the power purchase and sale
contract with Avista to deliver QF output to Avista on a firm hourly
schedule, in which case the percentage reduction shall be 6%;
2. Removing the requirement that the 90%/110% performance band
requirement not be applied to purchases from wind powered QFs;
3. Authorizing A vista to purchase state-of-the-art wind forecasting services
to provide A vista with forecasted wind conditions in those geographic
areas in which wind generation resources are located, provided that QFs
will reimburse A vista for their share of the ongoing cost of the wind
forecasting service, in proportion to their percentage share of the wind-
generator capability being supplied to A vista from that area;
4. Requiring QFs to deliver a "mechanical availability guarantee" to Avista
to demonstrate monthly, except for scheduled maintenance and events of
force majeure or uncontrollable force, that the QF was physically capable
and available to generate a full output during 85% of the hours in a
month;
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
5. ... (Disaggregation issue - separately noticed on June 28 2007)
6. Clarifying that the cap on entitlement to published avoided cost rates
shall be raised to 10 aMW only until Avista s total wind portfolio from
all sources totals 400 MW.
A Notice of Petition in Case No. A VU-07-02 was issued on May 15, 2007. A
Notice of Discussion Regarding Procedure was issued on June 4, 2007. On June 28, 2007, the
Commission issued a Notice establishing an intervention deadline of July 18, 2007. The
following parties requested and were granted intervenor status: Exergy Development Group of
Idaho LLC; Renewable NW Project and NW Energy Coalition; Idaho Windfarms LLC; and INL
Biofuels and Renewable Energy Technologies.
On July 31 and August 10, 2007 Commission Staff sponsored joint settlement
workshops in Case Nos. A VU-07-02 (Avista), IPC-07-03 (Idaho Power), and PAC-07-
(PacifiCorp) to explore whether parties of record could agree to a common generic wind
integration adjustment to published rates. IDAPA 31.01.01.272-276.
The Commission has been informed that the participants in the joint settlement
workshops were unable to reach a compromise generic settlement. In consideration of the
foregoing and based on its review of the filings of record in Case No. A VU-07-, YOU ARE
HEREBY NOTIFIED that the Commission has preliminarily found that the public interest
regarding Avista proposed wind integration adjustment (with related proposed rate
methodology modifications) may not require a hearing to consider those issues and that the
Company s Petition on those issues may be processed under Modified Procedure i.e., 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 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. Reference IDAP A
31.01.01.203.
YOU ARE FURTHER NOTIFIED that the deadlines for filing written comments
or protests with respect to the Petition and the Commission s use of Modified Procedure in Case
No. A VU-07-02 are as follows:
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
Initial Comment Deadline
Reply Deadline
Friday, September 21 2007
Friday, October 5 , 2007
Persons desiring a hearing must specifically request a hearing in their written protests or
comments.
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
31.01.01.204.
YOU ARE FURTHER NOTIFIED that the Petition in Case No. A VU-07-02 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 Avista Corporation.
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
DATED at Boise, Idaho this ;21. M day of August 2007.
U2tPAUL KJELCA R, P SIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
bls!N:A VU-O7-02 sw5
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE