20120210Reply.pdf

RECEIVED ~'I~'iI'STA.
Corp.
2012 FEB lOAM 10: 10
11: jean.jewell~puc.idaho.gov
Kootenai Electric Cooperative Power Purchase Agreement
IPUC Case No. A VU-E-12-01
Dear Ms. Jewell:
On Februar 8, 2012, Commission Staff submitted comments ("Comments") on the application of
Avista Corporation ("Avista") and Kootenai Electrc Cooperative ("KEC") for approval of the power
purchase agreement ("Agreement") in the above-referenced proceeding. In the Comments, Staff stated
that it had carefully reviewed all of the term and conditions of the Agreement and "believes they are
fair, reasonable, and not in conflict with prior Commission orders." Accordingly, Staff recommended that
the Commission approve the Agreement without change or condition.
In their application, Avista and KEC requested an effective date of the Agreement of January 5,
2012-i.e., the date that the Agreement was executed by Avista. As noted by Staff, however, the
application for approval of the Agreement was not filed with the Commission until January 9, 2012.
Staff, therefore, recommends that the Commission approve the Agreement with an effective date
commencing on the date of the Commission's order approving the Agreement, not Januar 5, 2012 as
requested by the parties.
Avista appreciates Staffs Comments and understands Staffs recommendation that the
Commission set the effective date of the Agreement on the date of the Commission's approvaL. However,
Avista understands that KEC may commence operations of its Project as early as February 8, 2012.
Accordingly, Avista respectfully requests that the Commission approve the Agreement with an effective
date of January 5,2012 as requested by the parties or, in the alternative, with an effective date no later
than February 8,2012, in order to allow KEC to operate its Project and deliver the output of the Project to
A vista pursuant to the Agreement.
Respectfully submitted,
rt.
Michael G. Andrea
Senior Counsel
cc: KEC