20110930Joint Petition.pdf

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Utilties Commission
ashington Street
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NEWCA
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Joint Petition of A vista Corporation and Stimson Lumber Company
Amendment No.2 to Power Purchase Agreement
Dear Ms. Jewell:
Please find enclosed for fiing an original and seven copies of the Joint Petition of Avista
Corporation ("A vista") and Stimson Lumber Company (Stimson") for approval of Amendment
NO.2 to the power purchase between Avista and Stimson. Amendment NO.2 is attached to the
Joint Petition. Please let me know if you have any questions regarding this fiing.
Sincerely,
Michael G. Andrea
Senior Counsel
Enclosures
cc: Jeff Weber
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2011 SEP 30 AM 8: 21
For Avita Corpration
Michal G. Andr (ISB No. 8308)
Senor Counsel
A vista Corportion
1411 East Mission, MSC-23
Spokanet WA 99202
Phone: [phone]
Facsimile: [phone]
For Stimson Lumber Company
Jeff Webber
Vice President - Manufactung
Stimson Luber
520 S.W. Yamll
Suite 700
Portand, OR 97204
NEW CASE
BEFORE THE IDAHO PUBLIC UTITIES COMMSION
IN THE MATTER OF TH JOIN PETmON )
OFAVISTACORPORATIONAN ) CASE NO. AVU..E- II..D5"
STIMSON LUMER COMPAN FOR )
APPROVAL OF AMNDMENT NO.2 TO ) JOINT PETmON OF AVISTA
POWER PURCHASE AN SALE ) CORPORATION AN STISONAGREEMENT ) LUMER COMPAN
)
A vista Corporation ("A vista") and Stimson Lumber Company ("Stimn")
(collectivelYt the "Parties") herby peition the Idaho Public Utilities Commision
("Commission") for an order aproving Amendment No.2 to the Power Puhase
Agreement ("Agreement") beteen Avista and Stimson which was originally approved
by the Commission in Order No. 30224. Amendment No.2 extends the term of the
Agrment for a period up to four months ("Extesion Perod") and updates the
Agrement to apply the curnt published avoided cost rates to all power purehases by
A vista under the Agreeent durng the Extnsion Perod
i. Names and Addresses. of Petitioners
Page - 1 JOIN PETITION OF AVISTA CORPORATION AND STISON LUMER
COMPAN
A vista Coiporaon
1411 Eat Mission Avenue
Spokae, W A 99202
Stison Lumbe Company
520 S.W. Yamll
Suite 700
Portland, OR 97204
2. Nature of Businesses
Avista is a corporation create and orgaed under the laws of the State of
Wasington with its principal offce in Spokane, Wasngton. A vita is an investor-
owned utility engaged in, among other thgs, the business of generting, transmitting,
and distbuting electrc power to wholese an reail customers in Ido and
Washington. Avista also provides natul ga serice to customer in Idao, Washington,
and Oregon. As such, Avista's rates, charges, serice and praices ar reguat in
pai by this Commission.
Stimson is a corporation orgized under the laws of the State of Orgon tht
opertes a theral wood waste small power elecc generation plant loced at Plummer,
Idaho ("Facilty"). The Facilty is capable of generng up to approximatly 6.5
megawatt of energy. The Facility is a Qualifyng Facilty puruant to the Public Utility
Regulatory Policies of Act of 1978 ("PUR A").
3. Names of Representatives
All commUncations, pleangs, and orders with resect to this proceedng should
be directed to:
Page - 2 ¡OIN PETmON OF AVISTA CORPORATION AN STIMSON LUMER
COMPAN
For Avista Corporation:
Steve Silkort
Maager, Wholese Marketng and
Contracts
A vist Corporation
i 4 i 1 E. Mission Ave., MSC-7
Spokane, WA 99202
Phone: [phone]
Fax: [phone]
E-mail: steve.silkort(gavistarp.com
For Stimson Lumber Company:
Jeff Webber
Vice Preident - Manufactung
Stison Lumber
520 S.W. Yamll
Suite 700
Portand, OR 97204
Phone: [phone]
Fax: [phone]
E-mail: jwebbestimsonlumber.com
Michal G. Andrea
Senior Counl
Avista Corpration
1411 E. Mission Ave., MSC-23
Spokae, WA 99202
Phone: [phone]
Fax: [phone]
E-mail: mihai.an~ayistrp.com
Prdent and Chief Executive Offce
Stison Lumber
520 S.W. Yamll
Suite 700
Porland, OR 97204
4. Description of Amendment No.2
The Ageement as amended by Amendment NO.1 was apprved by the
Commission in Order No. 30224t which was issed in Case No. A VU-E-0-10 on
Janua 19,2007. The original Tenn of the Agrent was five yes and. therefore, the
Agreement is due to expire on September 30, 2011.
The Paries have been negotiatig in god faith a new power purhas agrent
to replace the Agreement. However, the Pares recognize that it wil not be posible to
execute a final power purchae agreement prior to the expiration of the Ageeent.
AccordinglYt the Pares have exected Amendment No.2 to exted the ter of the
Agreement to allow the Paries time to finalze a new power purhase agent to
Page - 3 JOIN PETITION OF AVISTA CORPORATION AND STIMON LUMER
COMPAN
replace the Agreement. Specifically, the Amendment amends the Agreeen to extend
the ter as follows:
The Ter of the Agrment shal be for the perod commencing on the Effective
Date of the Agreement and terinaing on the earlier of; (i) th effective date of a
new power purhase agrent beteen the Pares tht provide for the sae of
the output of the Faclity to Avist8t or (ii) Januar 2,2012.
On Augut 30, 201 I, the Commssion issued Orer No. 32337, in which the
Commssion resed the published avoide cost rates for PUR A contrts executed on
or af August 30, 2011. Accrdingly, the Amendment also amends the Agent to
aply the new applicale published avoided cost rates to the purcha by Avista of all
output of the Facilty durng the Extended Period.
Except as expresly amended al other ters of the Agrent reai in full
forc and effect for the Exteed Period.
Page.4 JOIN PETITION OF AVISTA CORPORATION AND STISON LUMER
COMPAN
5. Conclusion
A vista and Stimson jointly reectflly reuest tht the Commission issu an
order acepting Amendment No.2 to the Agreeent with an effective dat of
October 1,
2011.
Respelly submitt ths __ 'l th day of Sepber 2011.
AVISTACORPORATION
STIMSON LUMBER COMPANY
JCff9J
Vice Presidet - Manufactung
Page - 5 JOIN PETITION OF AVISTA CORPORATION AND STISON LUMER
COMPAN
..
AMNDMENT NO.2
Ths AMENDMENT NO.2 ("Amendment") dated Septembera& 201l to the Power
Purchase Agreement dated October 1,2006, as amended by Amendment No.1 ("Agreement"), is
entered into by and between Avista Corpration, a Washigton corporation ("Avista"), and
Stimson Lumber Company ("Project Developer"). A vista and Project Developer ar sometimes
referred to individualy as a "Par" and collectively as the "Paries."
RECITALS
WHEREAS, the Paries entered into the Power Pucha Agreeent dated October 1,
2006, as amended by the First Amendment to the Power Purchae Agrment dated December
21,2006 ("Agreement"), under which Seller deliver and sells, and Avistreceives and
purchass, the output generated by the Facilty;
WHEREAS, the Idaho Public Utilities Commission ("IPUC") approved the Agreement in
Order No. 30224 issued on Janua 19,2007; and
WHREAS, the Pares desir to enter into ths Amendment to amend the Agreement to
extend the Ter of the Agreement and to state the rate to be paid by Avista for the output of the
Facilty durng the extended Term as set fort below:
NOW THREFORE, it is agred as follows:
AGREEMENT TO AMEND
1. Puruat to Section 5.5 of the Agrement, the Agreement shl expir on
September 30, 2011. The Paries desire to extend the Term of the Agreement such tht the
Agrement will expire on the ealier of: (i) the effective date of a new power purchae
agreement between the Paries for the Facilty, or(ii) Janua 2, 2012. Accordingly, the
Agreement is hereby amended to replace Section 5.5 in its entirety with the followig new
Section 5.5:
"The Term of the Agreement shall be for the period commencing on the Effective Date of
the Agreement and terminatig on the earlier of: (i) the effective date of a new power
purchase agreement between the Paries that provides for the sale of the output of the
Facility to Avista, or (ii) Janua 2, 2012."
2. Section 1 I. I. i provides the applicable rate for all Net Delivered Output received
by A vista for each hour that is not Surlus Energy, which rate is based on the On- Peak or Off-
Peak Avoided Cost Rates For Non-Fueled Projects Smaller than Ten Megawatts~Non-Levelized
that were in effect on the Effective Date of the Agreement. On August 30, 2011, the !PUC
issued Order No. 32337, in which the !PUC revised the published avoided cost rates for PURP A
contracts executed on or afer August 30, 20l I. Accordigly, the Agreement is amended to add
Page - i AMENDMENT NO.2 TO POWER PURCHASE AGREEMENT BETWEEN
STIMSON LUMBER COMPANY AND AVISTA CORPORATION
the following rates for the period from October 1, 2011 though the end of the Ter of the
Agreement:
For all Net Delivered Output received by Avista durg the perod from October 1,2011
to Januar 3l, 2012, for each hour that is not Surlus Energy, Avist shal pay the
followig applicable rate based on the A vista A voided Cost Rate for Non-Fueled Projects
effective on August 30, 20l1:
Oct 1, 2011 - Dec 31,
2011
Jan 1,2012 - Jan 2, 2012
$57.52
$59.55
$52.12
$54.15
3. Except as expressly amended by the provisions set fort in ths Amendment, all of
the terms and conditions of the Agreement shal remain in fu force and effect following
execution of this Amendment and each Pary confrms, ratifies and approves the Agreement as
amended by this Amendment. All capitaized term used herein and not otherse defined shl
have the respetive meanings given to such terms in the Agreement. For the avoidace of doubt,
this Amendment is hereby incorporated in the Agreement and all references to the Agrement
shall be deemed to be references to the Agreement as amended by ths Amendment.
4. This Amendment NO.2 replaces Amendment NO.2 dated September 27,2011
(September 27 Amendment) in its entirety. The September 27 Amendment is hereby null and
void.
5. This Amendment may be executed in two (2) or more counterps, each of which
shall be deemed as an originl and together shall constitute one and the same document.
Page - 2 AMENDMENT NO.2 TO POWER PURCHASE AGREEMENT BETWEEN
STIMSON LUMBER COMPANY AND AVISTA CORPORATION
r
IN WITNESS WHREOF, the Paries have caused this Amendnent to be executed by
their duly authonzed reresentatives as of the date first se forth above. .
STIMSON LUMBER COMPAN AVISTA CORPRATION
By: 9J
PnntedName::re£ W-ekLr
Title: U,'ce Prr-ìd,..1.. /1wv.t
Date: ?ja.g-/i (i
By: 4A-J g;
Pnnted Name: . 6ré-#N G 51t.u.ù (Z(L
Title: WUòw!tAl.ß, 4¿ífr',. M"NÆt,~
Date: ci /-a I J I
Page - 3 AMMENT NO.2 TO POWER PURCHASE AGREEMENT BETWEEN
STIMSON LUMBER COMPAN AND AVISTA CORPORATION