20120118notice_of_application_order_no_32438.pdf

Office of the Secretary
Service Date
January 18,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT )
APPLICATION OF AVISTA )CASE NO.AVU-E-12-O1
CORPORATION AND KOOTENAI )
ELECTRIC COOPERATIVE FOR )NOTICE OF APPLICATION
APPROVAL OF A POWER PURCHASE )
AGREEMENT.)NOTICE OF
)MODIFIED PROCEDURE
)
_______________________________
)ORDER NO.32438
On January 9,2012,Avista Corporation and Kootenai Electric Cooperative (Kootenai
Electric)(collectively,the Parties)filed a Joint Application with the Commission requesting
approval of a Power Purchase Agreement (Agreement)between Avista and Kootenai Electric.
Kootenai Electric is an electric cooperative that proposes to own and operate a landfill gas
electric power generating facility (the Project)located at the Kootenai County Solid Waste
Facility near Beligrove,Idaho.The Project is a qualifying facility under the applicable
provisions of the Public Utility Regulatory Policies Act of 1978 (PURPA)and is capable of
generating up to 3.2 megawatts (maximum capacity,nameplate)of energy.The Parties ask that
the Commission approve the Agreement with an effective date of January 5,2012.
THE APPLICATION
YOU ARE HEREBY NOTIFIED that the Application states that the Agreement shall
commence on the effective date and continue through December 31,2012,unless the Agreement
is terminated earlier pursuant to its terms.1 The Agreement states that Kootenai Electric will
generate and deliver and Avista will purchase the net output of the Project on an as-available
basis.
YOU ARE FURTHER NOTIFIED that the Application outlines that Avista will
purchase the Project’s net output (up to a maximum of 10 aMW)pursuant to Schedule 62 of its
Idaho tariff at the lesser of (i)85%of the weighted average of the daily on-peak and off-peak
Dow Jones Mid-Columbia Non-Firm Index or (ii)the applicable rate based upon the on-peak or
Kootenai Electric may terminate the Agreement at any time during the term by providing Avista 30 days’written
notice.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32438 1
off-peak avoided cost rates for non-fueled projects smaller than ten average megawatts —non
levelized (avoided cost rates)in effect on the effective date of the Agreement.Application at 3.
YOU ARE FURTHER NOTIFIED that the Parties request that the Commission
approve the Agreement without change or condition,with an effective date of January 5,2012,
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 twenty-one (21)days from the date of this Order.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,Avista and Kootenai Electric at the addresses reflected
below:
Commission Secretary AVISTA CORPORATION:
Idaho Public Utilities Commission
P0 Box 83720 Michael G.Andrea
Boise,ID 83 720-0074 Senior Counsel
Avista Corporation
Street Address for Express Mail:1411 E.Mission Ave.,MSC-23
Spokane,WA 99202
472 W.Washington Street E-mail:michael.andrea(i),avistacorp.com
Boise,ID 83702-5918
Steve Silkworth
Manager,Wholesale Marketing &Contracts
Avista Corporation
1411 E.Mission Ave.,MSC-7
Spokane,WA 99202
E-mail:[e-mail]
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32438 2
KOOTENAI ELECTRIC:
Greg Adams
Richardson &O’Leary,PLLC
515 N.27th St.
Boise,ID 83702
E-mail:greg(richardsonandoleary.com
Doug Elliott
General Manager
Kootenai Electric Cooperative,Inc.
2451 W.Dakota Ave.
Hayden,ID 83835-0278
E-mail:[e-mail]
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 Kootenai Electric 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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32438 3
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 twenty-one (21)days
from the date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of January 2012.
PAUL KJELLAJDE ,SIDENT
MARSHA H.SMITH,COMMISSIONER
ATTEST:
J.A f/
S Ai Ri
Jean D.Jewefl
Commission ecretary
O:AVU-E12-O1ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32438
MACK A.REDFORD,
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