20090202Application.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
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Januar 30,2008
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
Statehouse Mail
W. 472 Washington Street
Boise, Idaho 83720
Dear Ms. Jewell:
A vista Utilities submits for approval by the Commission the original and seven copies of
its "Application of Avista Corporation to Approve Electric Distribution Service
Agreement with East Greenacres Irrigation District."
Please direct any questions on this matter to me at [phone].
Sincerely
, --h~.~/-~~, ... l -:h~
Tara L. Knox, ...
Senior Regûlatory Analyst,
Avista Corp.
tara.knox~avistacorp.com
c: Brian Hischkorn, A vista
Kenneth Dilon, A vista
enclosure
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o....i:p/i:ni,,\,t: It c, i,.",
BRI HIRSCHKORN
MANAGER, PRICING
AVISTA CORPORATION
P.O. BOX 3727
1411 EAST MISSION AVENUE
SPOKA, WASHINGTON 99220-3727
TELEPHONE: [phone]
FACSIMILE: [phone]
innq FEB -2 AM 9= '8
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION TO APPROVE
ELECTRC DISTRIUTION SERVICE
AGREEMENT WITH EAST GREENACRES
IRGATION DISTRICT
CASE NO. A VU-E-09-..
APPLICATION OF
AVISTA
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I. INTRODUCTION
A vista Corporation doing business as A vista Utilities (hereinafter A vista or
Company), at 1411 East Mission Avenue, Spokane, Washington, respectfully requests that
the Commission approve the enclosed Electric Distribution Service Agreement (Attachment
A) with East Greenacres Irgation District (hereinafter referred to as East Greenacres),
sometimes hereinafter referred to individually, as a "Party", and collectively, as the "Paries".
The Parties have entered into an agreement to continue the delivery of United States
Bureau of Reclamation ("Bureau" or "Bureau of Reclamation") energy over A vista owned
and operated distribution facilities from Avista's Post Falls Substation to the East Greenacres
delivery points to become effective March l, 2009, or the first day following approval of the
Commission.
1 The service provided under the Agreement is unique, and therefore more
2 appropriately provided under a special contract rather than a filed tariff. Further, the contract
3 is non-discriminatory and is not unreasonably preferentiaL. The distribution charge included
4 in the Agreement is consistent with distribution charges embedded in current Idaho retail
5 rates. The incremental costs associated with providing service under the Agreement are less
6 than the charge for service, therefore, the revenue received from the Agreement provides a
7 contribution to Avista's fixed costs.
8 The Company requests that this fiing be processed under the Commission's Modified
9 Procedure rules.
10 Communications in reference to this Application should be addressed to:
1112 Tara L. Knox13 Senior Regulatory Analyst14 State and Federal Regulation15 A vista Corporation16 1411 E. Mission Avenue
17 Spokane, Washington 9922018 Phone: [phone] Fax: [phone] tara.knox~avistacorp.com
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2324 II. BACKGROUND
25 East Greenacres operates two pumping facilities located on the Rathdrum Prairie to
26 provide irrigation and domestic water supply to approximately 5,300 acres of land. East
27 Greenacres has been operating and maintaining these Bureau of Reclamation-built facilities
28 since December 31, 1976. East Greenacres receives electric power to operate these facilities
29 from the Bureau of Reclamation.
Application of A vista Corporation 2
1 The electric power is delivered through A vista transmission and distribution facilities
2 to East Greenacre's delivery points. Transmission service is provided under a separate
3 Transmission Service Agreement. The special contract filed herein provides for distribution
4 service from Avista's Post Falls Substation over 13.2kV feeders to East Greenacres two
5 pumping stations. A vista has provided similar service to East Greenacres under a
6 Transmission agreement, which included distribution service, on file with the FERC dated
7 May 27, 1975. The anual charge for distrbution service under the prior agreement was
8 $8,157, Avista has annually delivered approximately 3.1 milion kilowatt-hours to East
9 Greenacres pumping facilities in recent years. This service has been separated into two
10 service agreements (transmission and distribution) to confonn to the Open Access
11 Transmission Tariff requirements of the Federal Energy Regulatory Commission and
12 applicable requirements in the State ofIdaho.
13 III. TERMS OF AGREEMENT
14 The Agreement was executed on January 30, 2009 and becomes effective following
15 approval by the Commission. The tenn of the Agreement is open-ended but wil tenninate
16 upon the earliest of the following events: (1) tennination or expiration of the Transmision
17 Agreement, or (2) upon termination by either Avista or East Greenacres after providing at
18 least one year's prior written notice of termination. A rollover of the Transmision Agreement
19 shall be considered termination of that agreement.
20 The charge for distribution service under the Agreement is $3,622.77 per month, or
21 $43,473.24 per year. The distribution charge is based on East Greenacre's load ratio share of
22 Distribution Facilities Costs derived from Avista's last cost of service study fied with the
Application of A vista Corporation 3
1 Commission in Case No. A VU-E-08-01 updated for the settlement adjustments and revenue
2 increase approved by Order No. 30647. The calculation of the monthly distribution service
3 fee is included in Attachment A as Exhibit 3 to the Agreement.
4 iv. REQUEST FOR APPROVAL
5 Avista, therefore, respectfully requests approval of the "Electric Distrbution Service
6 Agreement" so that East Greenacres Irgation District may receive Bureau of Reclamation
7 power at charges consistent with the distribution costs embedded in Idaho retail rates. The
8 incremental costs associated with providing service under the Agreement are less than the
9 charge for service, therefore, the revenue received from the Agreement provides a
10 contribution to Avista's fixed costs. The service provided under the Agreement is unique,
11 and therefore more appropriately provided under a special contract rather than a filed tariff.
12 Further, the contract is non-discriminatory and is not unreasonably preferentiaL. Avista
13 believes that the Agreement is in the best interest of the Customer, the Company, and Idaho
14 retail ratepayers.
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16 Dated at Spokane, Washington this 30th day of Januar 2009.
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18 A VISTA CORPORATION
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Brian Hirschkorn
Manager, Pricing
State and Federal Regulation
Application of A vista Corporation 4
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Reef: E:.",1." t;:
2ßij9 FEB -2 AM 9: '9
AVU-L -o9-o~
Attachment A
Electric Distribution Service Agreement
between A vista Corporation & East Greenacres Irrigation District
C.ontrt No, AV-TR09.Q260
ELECTRIC DISTRIBUTION
SERVICE AGREEMENT
TIDS ELECTC DISTRIUTION SERVICE AGREEMENT ("Agreeent"), dated as of
~isi 2.9 ,2009, is entered into by
and between Avista Corpration ("Avista') and East
Greenac Irrigation Distrct ("Eat Greecres"), hereinafter sometimes referred to individually as a
"Party" and collecively as the "Paries."
WITNSSETH:
WHEREAS, among other facilties, Eat Grecre opetes two pumping facilties locted on the
Rathdr Praire, (hereinafter collectively refered to as the "East Greecres Unit"). Irrgation and
domestic water for the East Greenacr Unit is fuished by grund water from wells rangng from 230 to
330 feet dee. The multipurose pipeline system use by the Eat Grenacres Unit was constrcted by
the United States of Amerca, Bureau of Reclamation ("Bureau") for yea-round use. It was built to
provide irrigation serice to appro:iimately 5,300 acres of land. Opertion and mantenance of the Eat
Greenacres Unit was assued by East Greenacres on Deembe 31, 1976; and
WHER, pursuant to a sepate argement betee the Bonneville Power Adininistration
("Bonnevile") and East Greecres, Bonnevile transmits and deliver the Bureau's energy to
Bonneville's Bell Substation in Spokae, Washington; and
WHEREAS, Avista and the Bureau are paies to the Contract for Trasmission Service dated May
27, 1975 (Avista FERC Rate Schedule No. 62; USBR Contract No. 14-0-100-8331) which provides for
transfer service to cerain East Greenacre loads ("Transfer Contract"); and
WHEREAS, East Greecres has executed, or wì1 execute, a sepate Long-Term Firm Point-o-
Point Tranússion Serce Agrment with Avista, under Avista's Ope Access Transmission Tariff
("Tarir'),to transmit and deliver Bureau energy from Bonnevile's Bell Substaion to Avista's Post Falls
Substation ("Trasmission Agreeent"); and
WHERE, Avita own and opetes ditrbution facilities over which Avista deliver Buru
energy from Avista' s Post Falls Substation to the East Greencres Unit; and
WH, the Bureau and Avista will ternate the Trafer Contrt upon the effective date of
ths Agrent; and
WHERAS, East Greenacres and Avista desire to enter into this Agreeent for the delivery of
Bureau energy from Avista's Post Falls Substation across Avista's distribution system to the Eat
Greeacres Unit puruant to the lens and conditions set fort herei.
NOW, THERE"'ORE, in consideration of the mutual covenants and promises set forth herein, the
Parties agee as follows:
I . Definitions. In addition to words defined elsehere in ths Agrent as indicated with iIÛtial
capitaiztion, whenever used in this Agreement, the ter below shll have the following
meanings:
1. "Delivery Points" means those points on Avista's electric system where Bureau energy
transfered by Avista pursuant to this Agreement wil be made available to Eat Greecres
for the East Greenacres Unit as desribe in Exhibit i.
Page i ofS
Contr No. AV-TR09.02
1.2. "Avista Receipt Point" means th point where Bureau energy is received on Avista's
distrbution system for delivery puruant to this Agrment, which point(s) are located at the
115 kV side of the 115/13.8 kV Post Falls Substation transformr.
1.3. "Commission" means the Idaho Public Utilities Commission.
2. Term and Termination. A vista shall fie this Agreement, subsequent to its execution, in a timely
manner with th Commission. This Agreement shall beome effective on Marh 1.2009 or the first
day following approval of the Commission, whichever occurs last, and shall termnate upon the
earliest of the following events: (1) termination or expiration of the Trasmission Agrement, or
(2) upon termnation by either Pary after providing at least one yea's prior written notice of
termnation. A rollover of the Transmission Agreement shall be' considered termination of that
agreement.
3. Delivery of Electricity. Subject to the delivery of Bureu Energy to the Avista Receipt Point.
Avista shall deliver Bureau energy to Eat Greenacres at the Delivery Points.
4. Service Characteristics and Demand Limit.
4.1 Electric power delivere to the Delivery Points shall be thre phase, approximately sixty (60)
Her alternating curent, at a nominal potcntial of 13.2 kV, and shall be delivered to the Eat
Greenacres Unit in amounts not exceng a demand limit of 3000 kW distrbuted among the
two pumps that compose the East Greenacres Unit.
4.2 Added Load. East Greenacres shall notify Avista in advance of the addition of any electrc
load that would excee the rated capacity of any of the facilties provided by A vista to serve
the East Greenacres Unit. In the event Eat Greenacres exceeds the nonûnal demad
provided in Section 4.1, East Grenacres shall be liable for aU loss and damage to Avista's
equipment and facilties resulting frm such excess usage.
5. Metenng Equipment Electrc power delivere hereunder shan be meure by meterng equipment
installed at the Delivery Points. All metering equipment shall be installed, owned. and maintained
by Avista.
6. Qperation and Maintenance of the East Greenacres Unit and Delivery Facilties. The two pumping
staions composing the Ea.~t Greenacres Unit ar served by Avista's Post Falls 13.2 kV feeders.
Avista shall own, operate and maintain all electrcal service facilties up to the Delivery Points.
East Grenacres shall be all resposibilty associated with the operation, maintenance and
replacement of its service transformrs and otr equipment at and beyond th Delivery Points..
7. Billng and Payment.
7.1 Monthly BîIing. Each month durng the ter of this Agreement, Avista shal bil East
Grenacres a monthly service fee as shown in Exhibit 3. Such bil shall be mailed to East
Greenacres at the address set forth in Section 16 below.
7.2 Payment. East Grenacres shall pay the amount specified in each invoice by transfer of
immediately available funds within thirty (30) days of the date speified in such invoice (the
"Due Date''). If East Grnacres fails to pay Avista the entire amunt of any bil by the Due
Date, Eat Grenacres shall pay interest on the unpaid balance. from the Due Date until paid
in full, at a rate of 120 peent òf the Prme Commercial Lending Rate. compounded
monthly. as announced by Bank of America at its Spokane & Eastern Branch offce in
Spokane. Washington; provided. however, that the interest rate shall not exceed the maximum
Page 2 of5
Contract No. A V .TR09.0260
rate allowed by applicable law. All payments to Avista shall be submitted to Avista via
electronic fuds trafer to the account specified in each invoice.
8. Scheduling. Scheduling for service under this Agreement shall be pursuat to then curent
borderline load scheduling practices bewee Avistaand Bonnevlle. In the event borderline loa
scheduling practices betwee Avista and Bonnevile cee to exist, Ea Grecres shall schedule
service under this Agreerentpursuant to standad trmission scheduling practice outlned in
A vista's Tarff or such other scheduling practice as may be mutually agree upon by the Paries.
9. Losses. Eat Greenacres shall be responsible for all energy loss related to serice unde this
Agreement as descrbe in Exhbit 2. East Greecre shall scedule loss return energy to Avista
puruant to Section 8. By mutual agreeent from time to time the Parties may establish alterive
arements to settle any loss obligation by East Greeacres. Such altertive arangements shall
be consisten with the treatment of loss retur energy in the Transmission Agrment.
10. Biling by Others. Except as otherise se forth in this Agreement, Avista shall not be responsible
for East Grenacres' biling arrngeents for the purchae of Bureau energy, or for the
transmission thereof by others. East Greencre shall be responsible for sales, use and other taxes
associated with the acquisition and/or transmission, by others, of Buru enerb'Y.
11. Easements and Access to Eat Greecres' Prope. East Greeres hereby authorizes Avista or
its agent to do all work necessary on the lands of Eat Greeacres to accomplish the installation,
operation, and maintenace of Avista's lines and facilties to provide electric serice reuired
herder. East Greenacre shall grt, without cost to Avista, goo and suffcient recordable
eaents, in a fonn satisfactory to Avista, that provide for Avista's facilties to be loced over,
on, across and/or under said lands of East Greenacres covering rights-of.way for the intallation,
opetion and maintence of Avista's facilties reuied to render servce hereuner.
12. Force Majeur. As used in this Agreeent, "Force Majeur" mea the inabilty of either Pary to
perfonn its obligations as set forth herein as a reult of unforeseeable causes beond the reasonable
control of and without the fault or negligence of the Pary c1aimingForce Majeure ("Force Majeur
Events"), which Forc Majeu Events may include, but are not limited to, the following: acts of
God, strikes, lockouts, acts of war, riots, landslides, eartuaes, fires, floo, unoreseeble or
unusual weather conditions, washouts, explosions, brege or accident to machiner or conduit,
Force Majeure occurences as defined by any approved tariffs, or any binding order, rule or
regulation of any court or govermental authority, or any other occurene beyond the resonable
control of either Pary whether similar or dissimilar to any of the foregoing examples. If either
Party is rendered wholly or partially unable to perfonn its obligaiions under this Agreement due to
a Force Majeure Event, that Pary shall be cxcused from whatever perfonnancc is affected by the
Force Majeure Evcnt to the extent so affected and shall not be liable tor said non-peronnce to
eithcr Pary provided that not icc of such Force Majeue Event is given to thc other Party within a
reasnable time. The occurrence of a Force Majeur Event cffècting Avista's abilty to deliver
electric power to the East Greenacres Units shall not pennt East Greecres the right to extend the
terni of this Agreeent, nor relieve East Greeacres from its minimum charge obligations;
provided. howevr. that such IniniinulU charges shall be prorated based on the actual number of
days of serice provided to East Greecres, if a Force Majeu Event affecting Avista results in
Avista's inability to deliver electric power for a period in exces of twenty-four (24) hours.
13. Indemifcation and Hold Hanless Protection. East Grenacres shall indemify and save hanles
Avista tromany liabilty, loss, or expene arsing from or grwing out of injur to pens,
including death, or damge to property, which may ocur on the electric system of East Greenacres
and on its side of thc specified Delivery Points unles such loss is due to the negligence of A vista.
Where such claim or loss is caused by the concurent negligence of East Greenacres, its agents or
employees, and Avista, its agents or employee, Eat Greenacres hereby agree to indemfy,
PagdofS
Contrat No. A V. TR09-0260
defend and save Avista haness from all such claims or losses to the extent that such claim or loss
was caused by the negligence of Eat Greeacre, its agents or employees.
14. Assignent. East Grecres shall not (by contrat. operation of law or otherise) assign ths
Agrent, or any right or interest in this Agreement, without Avista's prior written consent. No
such assignent, with or without prior consnt by Avista, shall relieve Eat Greenres frm its
responsibilities under this Agreement, and all obligations and liabilties incured hereuder shall be
presered until satisfied. Subject to the foregoing restriction on assignent by East Greecres,
this Agreement shall be fully binding upon, inure to the beefit of, and be enforceable by the
successors, assigns and legal representatives of the resective Paries to this Agrment.
15. Amendment and Waiver. Ths Agreeent contains all of the ter and conditions bearing upon the
subject matter and shall not be changed or vared excet by wrtten agreement executed by the
Paries hereto though duly authorize representatives. If at any time the ter hereo are not
strictly adhered to or enforced, they shall not thereby be deeed waived or moifed but shll at all
subsequent times and dates be deemed in full force an effect.
16. Notîces. Unless otherise specified, any notice required uner this Agreeent shal be given in
writing, and shall be effective frm the date reeived by the Pary to which it is provided.
16.1 Notices to Avista shall be mailed or delivered to the attention of:
Avista Corpration
1411 East Mission Avenue
Spokane, Washington 99202-1902
or
P. O. Box 3727
Spokane, Washington 99220-3727
Attention: Manager, Transmission Serices
16.2 Notices to Eat Greenacres shall be mailed or delivered to the attention of:
East Greencr Irgation Distrct
2722 N McGuire Rd.
Post Falls, ID 83854
Attention: Manager
A Pary may change the place or address for deliver of notices to it by giving notice to the other
Party as thus describe.
17. Governng Law. This Agreement shall be construed and interpreted in accordance with the laws of
the State of Washigton, without giving effect to its principles of conflcts of law.
18. Venue. Any action at law or in equity to enforce the tenn and conditions of this Agrent shall
be brought in Spokae County, Wasrungton.
19. Headings. l1ie section headings in tlus Agreement are for convenience only and shall not be
considered part of or used in the interpretation ofthis Agreement.
Page4of5
COOl\'t No. A V .TR09.Q260
IN WINESS WHEREOF, the Paries hereto have cause this Agreeent to be executed by
their didy authorize represtatives on the date(s) set forth below.
A VISTA CORPORATION
By:..,A S:?A4 Cr:r.?'
Jeff Schlect
EAST. GREENACRES IRRGATIONum?:2 /By:b-~
Manager, Trasmission Serices
Date: ,.1.~ "".+4. '( z. U;¿::'ll
Ron Wilson
Manger
Date: ::"'(j 01'. .;~t:)
Page 50f5
Contract No. A V. TR09.0260
Exhibit i
Points of Deliery
1) East Greencre Irrigation District Pumping Station #2
Lotion: The point at Chse Road and Hayden Avenue (Prperty lD # SlN05W223220) wher
A vista's distrbution facilties and the service tranformer owned by East Greencres are
connected
Feeder: PF213
Voltage; 13.2 kV
2) East Greenacres Irrgation District Puming Station #3
Løation: The point at Chase Road, approximately 0.25 miles north of Poleline Road (Propery
i D # 5 i N05W287720) where Avista' s distribution tàcilties and the serice transfonners
owned by F.ast Grccnacres are connected
Feeer: PF213
Voltage: 13.2 kV
Contrct No, A V - TR090260
Exhibit 2
Loss Factors
Distbution Distribution Substtion
Line Line Transformer Total
Distance Loss Loss Loss
Feeder Point of Deliverv (mies)Factor Factor Factor
PF213 Pum #2 3.410 3.410 1.250 4.660
PF213 Pump #3 1.760 1.760 1.250 3.010
Notes:
- Feeder distances are approximate, taken fiom Avista Feeer Maps
- Distrbution line loss factors are calculated by multiplyig the line distane in miles by a factor of
1.00%. All transfonners, whether substation or serice, have a specified 1.25 % loss factor.
- Service to these pumps are metered at a priry voltage. East Greenacres owns the sece transfonners at
these locations.
Contract No. AV.TR09-oi60
Exbit3
Monthly ServeeFee
The Monthly Servce Fee is Th-Thusd Sixty-Five Dollar an Sevety-Seven Cents ($3,622.77).
Calculation of the Monthly Serice Fee is based upon the following:
Load Ratio Share of Idao Distrbution Facilties C.ost from Cost of Serice Study AVU-E-08-0 i
- Idaho normlize anual load for 2007 test year:: 3,429,176,000 kWh
- East Greenacres annual load for 2007 test yea :: 3,352,862 kWh
East Greenacres Load Ratio Share = 0.0978%
Idao Distrbution Facilties Cost = $44,451,66 (excludes Customer Servce, Infonntionand Sales)
Eat Greell4lcres Anual Distribution & Substation Use of Facilties Charge = $4,45 i, i 66 x 0.0978%
:: $43,473.24
= $3,622.77!month