20130430notice_of_application_order_no_32798.pdf

Office of the Secretary
Service Date
April 30.2013
BEFORE TIlE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )OF AVISTA CORPORATION FOR )CASE NO.AVU-E-13-02
APPROVAL OF ITS ELECTRIC SERVICE )AGREEMENT WITH CLEARWATER )NOTICE OF APPLICATION
PAPER CORPORATION )
)NOTICE OF
)MODIFIED PROCEDURE
)
_______________________________
)ORDER NO.32798
YOU ARE HEREBY NOTIFIED that on April 15,2013,Avista Corporation
(“Avista”or “Company”)and Clearwater Paper Corporation (“Clearwater”),collectively referred
to as the “Parties,”filed a Joint Petition seeking the Commission’s approval of their new Electric
Service Agreement (“ESA”).The Parties’current ESA.approved by the Commission in Case
No.AVU-E-03-07,Order No.29418,began on January 15,2004,and is set to expire on June 30,
2013.
YOU ARE FURTHER NOTIFIED that Clearwater is a corporation operating a paper
manufacturing facility located in Nez Perce County,Idaho (the “Facility”).Clearwater owns and
operates a generation system at the Facility that is capable of generating approximately 132.2
megawatts of energy (hereinafter “Generation”).
YOU ARE FURTHER NOTIFIED that the Parties’new ESA is for a five-year term
beginning on July 1,2013.The ESA provides for the sale of energy to serve Clearwater’s load at
the Facility and addresses Clearwater’s generation.
YOU ARE FURTHER NOTIFIED that the following is a synopsis of the essential
terms of the Parties’new ESA:
1.The ESA will continue after the initial term on a year to year basis unlesseitherPartyelectstoterminateitwith90dayspriorwrittennoticetotheotherParty;
2.The ESA is conditioned upon approval by the Commission of the ESA asasettlementofallknownexistingdisputesbetweentheParties,withoutprecedentialvalueandwithoutprejudicetotheParties’positions onsimilarissuesinthefuture;
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3.Clearwater’s Generation shall be metered,consistent with Paragraphs4(B)(ii)and 5 of Schedule 63 of Avista’s Idaho tariff,such that ClearwatershallusetheGenerationtoserveitsloadattheFacility:
4.Clearwater shall purchase and receive from Avista all of the electric powerrequirementsattheFacilitythatexceedtheelectricpowergeneratedbyClearwater’s Generation.Avista will continue to serve Clearwater’s
additional power requirements under Avista’s “Extra Large GeneralServiceToClearwaterPaper’s Facility”Schedule 25P rates,including allapplicablerateadjustments,unless the Commission issues an order in thefutureauthorizingdifferentbillingrates:
5.The Parties agree that all energy (kWh)consumption under the terms ofthisESAwillbebilledatSchedule25Prates.For purposes ofcapacity/demand (“kVA”),all kVA billed above 55,000 kVA (“2ndDemandBlock”)will be billed at an initial rate of $2.00 pci’kVA.Thefirst3,000 kVA will continue to be covered under a monthly flat rate(currently $12,500 per month),and the next 52,000 kVA (“1st DemandBlock”)will be billed at the current volumetric demand rate (currently$4.50 per kVA);
6.If Clearwater generates electric power in excess of the electric powerrequirementsoftheFacility.Clearwater will be credited for the excesskWhgeneratedduringthebillingperiodinamannerconsistentwithParagraphs4(B)(ii)and 5 of Schedule 63 of Avista’s Idaho tariff;
7.Clearwater is permitted.after 90 days written notice to Avista of its intenttoterminatetheESA,to sell the output of the Generation to any thirdparty.Clearwater would be responsible for making all necessaryarrangementstofacilitatethesaleoftheoutputoftheGenerationtoanythirdparty.Once Clearwater begins selling the Generation to a third party,the 2nd Demand Block would no longer be applicable and all kVA above3,000 would be billed at the 1st Demand Block rate.
YOU ARE FURTHER NOTIFIED that the Parties propose that the change in
revenues and expenses associated with the new ESA.as compared with the revenues and
expenses included in the last rate case for Clearwater,should be tracked through the PCA at
100%.
YOU ARE FURTHER NOTIFIED that the Parties request that the Commission direct
Avista to file a revised Schedule 25P tariff substantially similar to Exhibit B included in the ESA
filing.
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YOU ARE FURTHER NOTIFIED that the Parties request that the Commission
process their Joint Petition under the rules of Modified Procedure.
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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 3 1.01.01.201 through .204.The Commission notes that iviodified
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 June 14,2013.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 the
Applicant at the addresses reflected below:
Commission Secretary David J.Meyer
Idaho Public Utilities Commission Vice President and Chief Counsel for
P0 Box 83720 Regulatory and Governmental Affairs
Boise,ID 83720-0074 Avista Corporation
1411 E.Mission Avenue
Street Address for Express Mail:P0 Box 3727
Spokane,WA 99220
472 W.Washington Street E-mail:david,meyer(Z4avistacorp.com
Boise,ID 83702-5918
Clearwater Paper Corporation:
Michael S.Gadd
Senior Vice President &General Counsel
Clearwater Paper Corporation
601 W.Riverside Ave.,Suite 1100
Spokane,WA 99201
Peter Richardson
Richardson &O’Leary,PLLC
505 N.27th Street
P0 Box 7218
Boise,ID 83702
E-mail:peter(Lrichardsonandolearv .com
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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 the Applicants 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 has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices.The Application is 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 specifically
Idaho Code §61-503.The Commission may enter any final Order consistent with its authority
under Title 61.
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 Application will be processed under Modified
Procedure.Persons interested in submitting written comments regarding this case or protesting
the use of Modified Procedure should do so no later than June 14,2013.
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DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 3O”
day of April 2013.
PAUL KJELLA R,PRESIDENT
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
C6mmission Secretary
O:AVU-E-13-02_np
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ORDER NO.32798