20111215notice_of_application_order_no_32412.pdf

Office of the Secretary
Service Date
December 15,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT )
APPLICATION OF AVISTA )CASE NO.AVU-E-1 1-06
CORPORATION AND STIMSON LUMBER )
COMPANY FOR APPROVAL OF A )NOTICE OF APPLICATION
POWER PURCHASE AGREEMENT.)
)NOTICE OF
)MODIFIED PROCEDURE
)
_____________________________
)ORDER NO.32412
On November 25,2011,Avista Corporation and Stimson Lumber Company (the
Parties)filed a Joint Application with the Commission requesting approval of a five-year Power
Purchase Agreement (Agreement)between Avista and Stimson Lumber dated November 16,
2011.The Application states that Stimson Lumber operates a thermal wood waste small power
electric generation plant located at Plummer,Idaho.Stimson Lumber is a qualifying facility
(QF)under the applicable provisions of the Public Utility Regulatory Policies Act of 1978
(PURPA)and is capable of generating up to 6.5 megawatts (maximum capacity,nameplate)of
energy.The Parties ask that the Commission approve the Agreement with an effective date of
December 1,2011.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Application states that,upon its effective
date,the Agreement will replace the power purchase agreement (Original Agreement)between
the Parties originally approved by the Commission in Order No.30224,issued on January 19,
2007.The Original Agreement expired on September 30,2011.
YOU ARE FURTHER NOTIFIED that the Commission approved an Amendment to
the Original Agreement,extending the term “until either the effective date of a new power
purchase agreement executed between the Parties or January 2,2012,whichever is earlier”in
order to allow the Parties additional time to complete their negotiations and execute a new
agreement.Order No.32382 at 2.The Amendment utilizes the published avoided cost rates
applicable to PURPA contracts entered into on or after August 30,2011.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32412 1
YOU ARE FURTHER NOTIFIED that the Application states that the Parties have
now completed their negotiations and have executed an Agreement.The Parties request that the
Commission approve the Agreement without change or condition,with an effective date of
December 1,2011,and declare that all payments made by Avista for purchases of energy under
the Agreement be allowed as prudently incurred expenses for ratemaking purposes.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFiED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules
of Procedure,IDAPA 31.01.01.201 through .204.The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission no later
than December 30,2011.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written
comments.Written comments concerning this Application shall be mailed to the Commission
and Avista at the addresses reflected below:
Commission Secretary Michael 0.Andrea
Idaho Public Utilities Commission Senior Counsel
P0 Box 83720 Avista Corporation
Boise,ID 83 720-0074 1411 E.Mission Ave.,MSC-23
Spokane,WA 99202
Street Address for Express Mail:E-mail:michael .andreaavistacorp .com
472 W.Washington Street Steve Silkworth
Boise,ID 83702-5918 Manager,Wholesale Marketing &Contracts
Avista Corporation
1411 E.Mission Ave.,MSC-7
Spokane,WA 99202
E-mail:[e-mail]
Jeff Webber,Vice President —Manufacturing
Stimson Lumber
520 S.W.Yamhill,Suite 700
Portland,OR 97204
E-mail:1 webber@stirnsonl umber.corn
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32412 2
President and Chief Executive Officer
Stimson Lumber
520 S.W.Yamhill,Suite 700
Portland,OR 97204
These 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”
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 Avista and Stimson Lumber at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application and Agreement have been
filed with the Commission and are available for public inspection during regular business hours
at the Commission offices.The Application and Agreement are also available on the
Commission’s web site at www.puc.idaho.gov by clicking on “File Room”and then “Electric
Cases.”
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and the Public Utility
Regulatory Policies Act of 1978 (PURPA).The Commission has authority under PURPA and
the implementing regulations of the Federal Energy Regulatory Commission (FERC)to set
avoided costs,to order electric utilities to enter into fixed-term obligations for the purchase of
energy from qualified facilities and to implement FERC rules.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 31.01.01.000,et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments no later than December 30,2011.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32412 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /5
day of December 2011.
ATTEST:
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,CO ISSIONER
1 I
Jean D Jeve11
Commission Secretary
O:AVU-E-I 1-O6ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32412
1)”
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