20130522Request for Clarification.pdf

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Rgquest for Clarifieafion of Avlsta Corporation
IPUC Docket No. AVU-E-11-03
Dear Ms. Jewell:
Please find errrclosed for Iiliug in the above-referenced docket an original and seven
copies of the Request for Clarification of Avista Corporation. Please let me know if you have
any questions regarding this filing.
Enolosures
cc: Service List
MICHAEL G. ANDREA (ISB No. 8308) = ': i'; :. i
Avista Corporation ?1ill H;iy 22 F:ii 10, I 6
1411 E. Mission Ave., MSC-23 L'1
Spokane, WA99202 i.,i i', ,
Telephone: [phone] lif ii-l , i - ' '-': '' i - '
michael. andrea@avi stacorp. com
Attorney for Avista Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE COMMISSION'S )
REVIEW OF PURPA QF CONTRACT )
PROVISIONS TNCLUDING THE ) CASE NO. GNR-E-I l-03
SURROGATE AVOIDED RESOURCES )
(SAR) AND INTEGRATED RESOURCE ) REQUEST FOR CLARIFICATION OF
PLANNTNG (IRp) METHODOLOGTES FOR ) AVTSTA CORPORATTON
CALCULATING AVOIDED COST RATES )
)
)
I Pursuant to Idaho Public Utilities Commission ("Commission") Rules of Procedure 53
I
I
I and325, Avista Corporation ("Avista") respectfully requests clarification of Order No. 32697
issued in the above-captioned proceeding. Specifically, as discussed herein, Avista requests that
I
I the Commission clarifu that a renewed or extended power purchase agreement ("PPA") under
the Public Utility Regulatory Policies Act of 1978 for a QF project will include immediate
payment for capacity only if such QF project was being paid for capacity at the end of the term
of the PPA that is being renewed or extended.
I. Request for Clarification
In Order No. 32697, the Commission found it reasonable for the utilities to only begin
payments for capacity at such time that the utility becomes capacity deficient and that paying for
capacity only when the utility becomes capacity deficient results in avoided cost rates that more
Page - I REQUEST FOR CLARIFICATION OF AVISTA CORPORATION
accurately reflect true avoided costs. Order No. 32697 at2l. The Commission provided an
exception for existing QF projects that seek to renew or extend existing PPAs with a utility. Id.
at2l. Specifically, the Commission stated:
It is logical that, if a QF project is being paid for capacity at the end of the contract term
and the parties are seeking renewal/extension of the contract, the renewal/extension
would include immediate payment of capacity. An existing QF's capacity would have
already been included in the utility's load and resource balance and could not be
considered surplus power. Therefore, we find it reasonable to allow QFs entering into
contract extensions or renewals to be paid capacity for the full term of the extension or
renewal.
Id,
Accordingly, the Commission held that QFs shall not receive compensation for capacity until the
utility is capacity deficient. Id. at 52.
Although the Commission recognizedthat,logically only QF projects that are being paid
for capacity at the end of an existing PPA term should receive immediate payment for capacity in
a new or extended PPA, the Commission did not expressly include that qualification in the
ordering paragraph holding that QFs shall not receive compensation for capacity until the utility
is capacity deficient. See id. at 52. On rehearing in Order No. 32802, the Commission reiterated
that 'hhen an existing QF under a current contract desires to continue to sell energy to the same
utility after expiration of the current contract, and the parties enter into a new contract for the
sale and purchase of energy, the QF is entitled to be paid capacity for the full term of the new
agreement." Order No. 32802 at 2. However, the Commission did not in that order make clear
that a renewed or extended PPA for a QF project will include immediate payment for capacity
only if such QF project was being paid for capacity at the end of the term of the PPA that is
being renewed or extended.
Page - 2 REQUEST FOR CLARIFICATION OF AVISTA CORPORATION
Avista understands the Commission's intent to be as suggested in Order No. 32697-i.e.,
a renewed or extended PPA for a QF project will include immediate payment for capacity only if
the QF project seeking such renewal or extension was being paid for capacity at the end of the
term of the PPA that is being renewed or extended. See Order No. 32697 at2l. However,
absent clarification on this point, there is a potential for future litigation over whether, for
example, a QF project that enters into a short-term PPA during the term of which the utility is
not capacity deficient and therefore the QF is not paid for capacity under that short-term PPA, is
automatically entitled to be paid for capacity under a renewed or extended PPA. Accordingly,
Avista respectfully requests that the Commission clarify that a renewed or extended PPA for a
QF project will include immediate payment for capacity only if the QF project seeking such
renewal or extension was being paid for capacity at the end of the term of the PPA that is being
renewed or extended.
II. Conclusion
As discussed herein, Avista respectfully requests that the Commission clarifu Order No.
32697 by clearly stating that a renewed or extended PPA for a QF project will include immediate
payment for capacity only if the QF project seeking such renewal or extension was being paid for
capacity at the end of the term of the PPA that is being renewed or extended.
Respectfully submitted thisJrs day of &l2)l3.
AVISTA CORPORATION
Attorney for Avista Corporation
Page - 3 REQUEST FOR CLARIFICATION OF AVISTA CORPORATION
CERTIFICATE OF SERVICE
I hereby certify that on this 21st day of May 2013, true and correct copies of
the foregoing Request for Clarification of Avista Corporation were delivered to the
following persons via Email (unless otherwise indicated).
Jean Jewell
Idaho Public Utilities Commission
472W. Washington St.
Boise, lD 83702
Email : j ean j [e-mail]. gov
Dean J. Miller
Chas. F. McDevitt
McDevitt, & Miller, LLP
PO Box 2564
Boise, lD 83701-2564
Email: j [e-mail]
has@mcdevitt-miller. com
Daniel E. Solander
Senior Counsel
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 8411I
Email: Daniel.solander@pacifi corp.com
Donovan E. Walker
Idaho Power Company
PO Box 70
Boise,ID 83707-0070
Email: [e-mail]
lnordstrom@idahopower. com
Ted S. Sorenson, P.E.
Sorenson Engineering, [nc.
5203 South 1Ifr East
Idaho Falls, ID 83404
Email: [e-mail]
Kris Sassar
Deputy Attorneys General
Idaho Public Utilities Commission
472W. Washington St.
Boise,ID 83702
Email : [e-mail]. gov
kris. sassar@puc. idaho. gov
Peter Richardson
Gregory M. Adams
Richardson & O'Leary
515 N. 27th St.
PO Box 7218Boise, ID 83702
Email : [e-mail]
gre g@richardsonandoleary. com
Dr. Don Reading
670 Hill Road
Boise,ID 83703
Email: [e-mail]
R. Greg Ferney
Mimura Law Offices, PLLC
2176F,. Franklin Rd., Suite 120
Meridian,lD 83642
Email: [e-mail]
Robert D. Kahn
Executive Director
Northwest and Intermountain Power
Producers Coalition
1117 Minor Ave., Suite 300
Seattle, WA 9810
Email: [e-mail]
Page I-CERTIFICATE OF SERVICE
Glenn Ikemoto Deborah E. Nelson
Margaret Ruger Kelsey J. Nunez
Idaho Windfarms, LLC Givens Pursley LLP
672Blair Ave. 601 Bannock St. (83702)
Piedmont, CA946l1 POBox2720
E-mail: [e-mail] Boise, lD 83701-2720
[e-mail] Email: [e-mail]
kj n@givenspursley. com
Tauna Christensen Bill Piske, Manager
Energy Integrity Project Interconnect Solar Development, LLC
769 N 1100 E 1303 E. Carter
Shelley, ID 83274 Boise, ID 83706
Email: [e-mail] Email: [e-mail]
C. Thomas Arkoosh Bill Brown, Chair
Capitol Law Group, PLLC Board of Commissioners of Adams County,
205 N. 10ft St.,4ft Floor Idaho
PO Box 2598 PO Box 48
Boise,ID 83701 Council,ID 83612
Email: [e-mail] Email: [e-mail]
Ronald L. Williams Scott Montgomery
Williams Bradbury, P.C. President, Cedar Creek Wind, LLC
1015 W. Hays St. 668 Rockwood Drive
Boise 1D,83702 North Salt Lake, Uta 84054
Email: [e-mail] Email: [e-mail]
Marv Lewallen Wade Thomas
Clearwater Paper Corporation General Counsel, Dynamis Energy
601 W. Riverside Ave., Suite 1100 7768. Riverside Drive, Suite 15
Spokane, WA 99201 Eagle, ID 83616Email: Email: [e-mail]
marv. lewallen@clearwaterpaper. com
James Carkulis Robert A. Paul
Managing Member Grand View Solar II
EXERGY DEVELOPMENT GROUP OF 15960 Vista Circle
IDAHO, LLC Desert Hot Springs, CA
802 West Banock Street, Ste. 1200 Email: [e-mail]
Boise, Idaho 83702
Email j carkuli s@exergydevelopment. com
Page 2-IERTIFICATE OF SERVICE
John R. Lowe
Consultant to Renewable Energy
Coalition
12050 SW Tremont Street
Portland, OR97225
Email : [e-mail]
Twin Falls Canal Company
c/o Brian Olmstead, General Manager
P.O. Box 326
Twin Falls, Idaho 83303-0326
Email: [e-mail]
R. Greg Femey
Mimura Law Offices, PLLC
21768. Franklin, Rd., Suite 120
Meridian, ID 83642
Arron F. Jepson
Blue ribbon Energy LLC
10660 South 540 East
Sandy, UT 84070
Email: [e-mail]
Benjamin J. Otto
Idaho Conservation League
710 N. 6th St.
P.O. Box 844
Boise,Idaho 83702
Ph: [phone] x12
Fax: [phone]
Email: [e-mail]
Don Schoenbeck
RCS
Email: [e-mail]
Don Sturtevant
Energy Director
J. R. Simplot Company
ONE CAPITAL CENTER
999 Main Street, P.O. Box 27
Boise, Idaho 837 07 -0027
Email : [e-mail]
North Side Canal Company
c/o Ted Diehl, General Manager
921 N. Lincoln St.
Jerome,Idaho 83338
Email : [e-mail]
MJ Humphries
Blue Ribbon Energy LLC
4515 S. Ammon Road
Ammon,ID 83406
Email: [e-mail]
Magan Walseth Decker
Senior Staff Counsel
Renewable Northwest Proj ect
421 Sw 6ft Ave., Suite 1125
Portland, OR97204
Email: [e-mail]
Liz Woodruff
Ken Miller
Clean Energy Program Director
Snake River Allance
Box 1731
Boise, 10 83701
Email: [e-mail]
kmiller@snakeriveralliance. org
Lori Thomas
Capital Law Group, PLLC
Email: [e-mail]
Page 3-CERTIFICATE OF SERVICE
J. Kahle Becker
The Alaska Center
1020 W. Main St., Suite 400
Boise, ID 83702
Email: [e-mail]
Michael J. Uda
Uda Law Firm P.C.
7 W. 6m Ave., Suite 4E
Helena, MT 59601
Email: [e-mail]
ichael G. Andrea
Page 4-CERTIFICATE OF SERVICE