20140328Application.pdf

Avista Corp.
1411 East Mission P.O. Box3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 800-727-9170
March 27,2014
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P O Box 83720
Boise, lD 83720-0074
Re: Avista Application No. AVU-E-14-03
Dear Ms. Jewell:
Enclosed for filing with the Commission is an original and seven (7) copies of Avista
Corporation, doing business as Avista Utilities application, proposing revisions to tariff Schedule
62 "Cogeneration and Small Power Production Schedule."
Please direct any questions on this matter to Clint Kalich, Manager of Resource Planning at
[phone] or Michael Andrea, Senior Counsel at [phone].
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Manager, Regulatory Policy
Avista Utilities
linda. gervai s@avistacorp. com
509-495-497s
Enclosures
1 MICHAEL G. ANDREA2 SENIOR COUNSEL FOR3 AVISTA CORPORATION4 P.O.BOX3727
5 I4I I EAST MISSION AVENUE6 SPOKANE, WASHINGTON 99220-37277 TELEPHONE: (509) 49s-25648 [e-mail]
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I I IN THE MATTER OF THE APPLICATION )t2 oF AVISTA CORPORATION FOR THE )13 PROPOSED REVISIONS TO TAzuFF )t4 SCHEDULE 62 COGENERATION AND SMALL )15 POWER PRODUCTION SCHEDULE )
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l0 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. AVU-E-14-83
I. INTRODUCTION
18 Avista Corporation, doing business as Avista Utilities (hereinafter Avista or Company),
19 at l4ll East Mission Avenue, Spokane, Washington, respectfully proposes revisions to tariff
20 Schedule 62 "Cogeneration and Small Power Production Schedule." Provided as Attachment A
2l are the proposed revisions to the following tariff sheets, I.P.U.C. No. 28:
22 Fourth Revision Sheet 62 Canceling Third Revision Sheet 6223 Fourth Revision Sheet 62,4' Canceling Third Revision Sheet 62,4.24 Fifth Revision Sheet 628 Canceling Fourth Revision Sheet 62825 Original Sheet 62C New26 Original Sheet 62D New27 Original Sheet 62E New28 Original Sheet 62F New29 Original Sheet 62G New
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31 The Company requests that this filing be processed under the Commission's Modified
32 Procedure rules.
JJ
AVISTA SCHEDULE 62 FILING PAGE 1
Commtrnications in reference to this Application should be addressed to:
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Michael G. Andrea
Senior Counsel
Avista Corporation
P.O.Box3727
14l I E. Mission Avenue, MSC-
Spokane, WA 99220-3727
Phone: [phone]
michael. andrea@ avistacom. com
Linda M. Gervais
Manager, Regulatory Policy
Avista Corporation
P.O.Box3727
l4l I E. Mission Avenue, MSC-27
Spokane, WA 99220-3727
Phone: [phone]
linda. servais @ avistacorp. com
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II. BACKGROT]ND
In Case No. GNR-E-11-03, several parties expressed an interest in the investor-owned
utilities, including Avista, developing and adopting certain procedures to be used by QF
developers and such utilities to negotiate and enter into power purchase agreements under
PURPA. In Order No. 32697, the Commission directed the parties to participate in workshops
'to begin to form a structure for fair and reasonable contracting procedures and rulesl." Avista
participated in the workshops on contracting procedures for QFs held on September 17,2013 and
November 14,2013. Draft proposed contracting procedures prepared by the utilities (including
Avista) and certain QF developers were discussed at those workshops; however, a consensus on
a complete set of contracting procedures to be used by all utilities was not reached. In a letter
dated December 12, 2013 filed in the Case, Avista stated that it intended to develop a complete
set of procedures to be used when it is negotiating and entering into contracts with QF
developers. Avista further proposed that, to the extent that such procedures are to be filed with
the Commission, such procedures would be filed in a new utility-specific case.
I OrderNo. 32697 at48.
AVISTA SCI{EDULE 62 FILING PAGE 2
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III. PROPOSED TARIT'F REVISIONS
Avista's proposed tariff revisions provide procedures to be used by Avista and QF
developers in negotiating and entering into power purchase agreements for the sale of the
electrical output of QFs to Avista under PURPA at avoided cost rates. As discussed in more
detail below, the procedures to be included in Avista's Schedule 62 generally (i) detail the
information QF developers are to provide to the Company; and (ii) provide timelines for both QF
developers and Avista to follow in the process of negotiating and entering into a power purchase
agreement.
A. Applicability
As a threshold matter, Avista's proposed contracting procedures will apply to all QF
developers that desire to make sales to Avista under PURPA and that will deliver
electrical output at a point of delivery on Avista's electrical system that is located in the
State of Idaho. Accordingly, if Avista's proposed contracting procedures are approved,
Schedule 62 will provide the procedures to be used in negotiating and entering into power
purchase agreements with QF developers that are eligible for published avoided cost rates
and QF developers that receive a negotiated (IRP) avoided cost rate.
B. Information QF Developers are to Provide Avista and Indicative Pricing
Section (1)A, of Avista's proposed contracting procedures sets forth the general
information a proposed QF developer is to provide to Avista to obtain an indicative
pricing proposal for a proposed QF. After satisfactory receipt of such information,
Avista will provide an indicative pricing proposal to the QF developer. Such indicative
pricing proposal is to be provided within ten (10) business days for QFs eligible for
published avoided cost rates, and within twenty-five (25) business days for all other QFs.
The indicative pricing proposal is not final or binding on either party, but is intended to
provide indicative pricing early in the process so that the QF developer can make
preliminary determinations regarding its proposed project and its desire to sell output to
Avista under PURPA.
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AVISTA SCTM,DULE 62 FILING PAGE 3
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C. Draft Power Purchase Agreement
Under Section (l)E of the contracting procedures, if after receiving an indicative pricing
proposal from Avista, a QF developer determines that it wants to negotiate a power
purchase agreement with Avista under PURPA, the QF developer may request that
Avista prepare a draft power purchase agreement. [n connection with such request, the
QF developer is to provide Avista with any additional information that Avista reasonably
determines is necessary for the preparation of the power purchase agreement. Upon
satisfactory receipt of all such information, Avista shall, within fifteen (15) business
days, provide the QF developer with a draft power purchase agreement containing a
comprehensive set of proposed terms and conditions for the sale by the QF developer and
purchase by Avista of the QF's output.
Upon its receipt of a draft power purchase agreement, the QF developer is to have ninety
(90) calendar days to review the draft power purchase agreement and to either (a) notify
Avista that it acceps the terms and conditions of the draft power purchase agreement
without any material change and is ready to execute a power purchase agreement that is
the same or substantially similar to the draft power purchase agreement, or (b) provide
Avista an initial set of comments and proposed changes to the draft power purchase
agreement.
If the QF developer provides any comments or proposed changes to the draft power
purchase agreement, the QF developer shall contact Avista to commence negotiations.
Section (1)J of the contracting procedures sets forth general guidelines to be used during
such negotiation of any draft power purchase agreement, including requirements that
Avista not unreasonably delay such negotiations and that Avista respond in good faith to
any additions, deletions or modifications to the draft power purchase agreement that are
proposed by the QF developer.
When the parties are in full agreement with the terms and conditions of the draft power
purchase agreement, including the price for delivered power, Avista shall, within ten (10)
business days, prepare and forward to the QF developer a final, executable version of the
AVISTA SCTMDULE 62 FILING PAGE 4
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power purchase agreement. Upon its receipt of the final, executable version of the power
purchase agreement, the QF developer shall have five (5) business days to execute and
return the final power purchase agreement to Avista. If the QF developer timely executes
and returns the power purchase agreement to Avista, Avista will, within ten (10) business
days of its receipt of the executed power purchase agreement, execute the power purchase
agreement and submit the fully executed power purchase agreement to the Commission
for approval.
If the QF developer fails to comply with the timelines in the contracting procedures set
forth in Schedule 62, Avista shall have no obligation to the QF developer unless or until
its project is resubmitted to Avista in accordance with the contracting procedures. Thus,
if the QF developer does not execute the final power purchase agreement tendered to the
QF developer within five (5) business days as required by Section (1)L of the contracting
procedures, the final power purchase agreement tendered to the QF developer by Avista
will be deemed withdrawn and Avista shall have no further obligation to the QF
developer unless or until the QF developer resubmits its project in accordance with the
contracting procedures.
IV. CONCLUSION
WHEREFORE, Applicant respectfully request that the Commission issue an
Order approving its proposed contracting procedures set forth in tariff Schedule 62 with an
effective date rendered on and after May 5, 2014, with this application being processed under
23 Modified Procedure.
DATED at Spokane, Washington, this 27th day of March, 2014.
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AVISTA CORPORATION
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AVISTA SCHEDULE 62 FILING
Michael G. Andrea
PAGE 5
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Senior Counsel
VERIFICATION
STATE OF WASHINGTON
County of Spokane
Michael G. Andrea, being first duly sworn, on oath deposes and says: that he is the
Senior Counsel for Avista Corporation; that he has read the above and foregoing Applicatron,
knows the contents thereof and believes the same to be true.
SIGNED AND SWORN to before me this 276 day of March 2014, by Michael G.
Andrea.
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Washington, residing at Spo
Commission Expires:
IC in and for the State of
AVISTA SCIIEDTJLE 62 FTLING PAGE 6
TariffSheets
Clean
Fourth Revision Sheet 62
Replacing
Third Revision Sheets 62l.P.U.C. No.28
lssued by Avista UtilitiesBy -#- ,'\. Kelly O. Norwoodry J^,^@J
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62
COGENERATION AND SMALL POWER PRODUCTION SCHEDULE - IDAHO
AVAILABLE:
In all electric territory served by the Company in the State of Idaho.
APPLICABLE:
To Qualifying Facilities that intend to interconnect to the Company's electrical system at
an interconnection point within the State of Idaho or that intend to deliver the output to the
Company at a point of delivery on the Company's electrical system within the State of Idaho.
To be eligible for the rates provided under this tarifl the Facility must be a Qualiffing
Facility with a maximum generating capability equal to or less than the Eligibility Cap.
A Customer selling the output of any Qualifying Facility (including both Qualifuing
facilities with a maximum generating capability equal to or less than the Eligibility Cap and
Qualiffing Facilities with a maximum generating capability greater than the Eligibility Cap)
will be required to enter into a written agreement with the Company in accordance with the
contracting procedures set forth in this tariff. Any such agreement is subject to the approval
of the Idaho Public Utilities Commission.
DEFNITIONS:
"Customer" as used herein means any individual, partnership, corporation, association,
governmental agency, political subdivision, municipality or other entity.
"Cogeneration Facility" means equipment used to produce electric energy and forms of
useful thermal energy (such as heat or steam), used for industrial, commercial, heating, or
cooling pu{poses, through the sequential use ofenergy.
"Daily Shape Adjustment" means an adjustment to rates based on a difference between
on-peak (6 arn to 10pm) rates and off-peak (10 pm to 6 am) rates of $5 per MWh. The Daily
Shape Adjustment increases the on-peak rate and decreases the off-peak rate such that the
difference between the on-peak and off-peak rate is $s/MWh and the average rate weighted
by the number of on-peak and off-peak hours is equal to the unadjusted avoided cost.
"Eligibility Cap" means for all Qualifying Facilities except wind and solar Qualifying
Facilities, ten (10) average megawatts in any given month. For wind and solar Qualifying
Facilities, "Eligibility Cap" means one-hundred (100) kilowatts nameplate capacity.
'oFacility" means the source of electricity owned by the Customer that is located on the
Customer's side of the PCC, and all facilities ancillary and appurtenant thereto, including
interconnection equipment, which the Customer requests to interconnect to the Company's
distribution system.
"In-Service Date" means the date on which the Facility and System Modifications (if
applicable) are complete and ready for service, even if the Facility is not placed in service on
or by that date.
lssued March 27,2014 Effective May 5,2014
VP, State & Federal Regulation
l.P.U.C. No.28
Fourth Revision Sheet 62A
Replacing
Third Revision Sheets 62A
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
oolntegration Charges" means the integration charge applicable to wind generation
approved by the Idaho Public Utilities Commission in Order No. 30500, or as superseded
"Interconnection Service Agreement" is an agreement for interconnection service, between
the Customer and the Company, or the Customer and a 3'd purty transmission provider. The
agreement also includes any amendments or supplements thereto entered into by the
Customer and the Company.
"Market Rate" shall be 85 percent (85%) of the PowerDex hourly Mid-Columbia ("Mid-
C") index.
"Point Of Common Coupling" (or PCC) means the point where the Customer's local
electric power system connects to the Company's distribution system, such as the electric
power revenue meter or at the location of the equipment designated to intemrpt, separate or
disconnect the connection between the Customer and the Company.
"Qualifuing Facility" shall mean a cogeneration Facility or a Small Power Production
Facility that is a "Qualifring Facility" as that term is defined in the Federal Energy
Regulatory Commission's regulations, 18 C.F.R. $ 292.101(bxl) (2010), as may be amended
or superseded.
'oSeasonal Factors" means a seasonal weighting of 0.84 for the period March through
June, and 1.08 for the period July through February.
"Small Power Production Facility" means the equipment used to produce output
including electric energy solely by the use of biomass, waste, solar power, wind, water or any
other renewable resource.
RATES:
The Company agrees to pay the following rates for the purchase of output from Facilities
for which this tariff applies and that is delivered to the Company's system. These rates are
adjusted periodically and are on file with the Idaho Public Utilities Commission.
(l) Levelized Fueled Rates - These rates shall apply when the Customer chooses to
supply output including energy and capacity under Levelized Avoided Cost Rates for
Fueled Facilities. The rates shall apply to natural gas fueled Facilities and shall
depend upon the on-line operation date and term of the agreement and shall be fixed
for the term. The adjustable component rate shall be changed periodically subject to
Idaho Public Utilities Commission orders. Both the fixed and adjustable rate
components are subject to Seasonal Factors, a Daily Shape Adjustment, ffid
Integration Charges. The resultant rate shall be applied to the Facility output for all
kilowatt-hours up to the Eligibility Cap in any given month.
lssued March 27,2014 Effective May 5,2014
lssued by Avista UtilitiesBy I Kelly O. Norwood VP, State & Federal Regulation
l.P.U.C. No. 28
Fifth Revision Sheet 628
Replacing
Fourth Revision Sheets 62B
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
(2) Non-Levelized Fueled Rates - These rates shall apply when the Customer chooses to
supply output including energy and capacity under Non-Levelized Avoided Cost
Rates for Fueled Facilities. The fixed component rate shall be fixed for the term of
the agreement. The adjustable component rate shall be changed periodically subject
to Idaho Public Utilities Commission orders. Both the fixed and adjustable rate
components are subject to Seasonal Factors, a Daily Shape Adjustment, ffid
Integration Charges. The resultant rate shall be applied to the Facility output for all
kilowatt-hours up to the Eligibility Cap in any given month.
(3) Short-Term Rate - The Short-Term Rate shall be applicable when the Customer
chooses to supply output including energy and capacity at market-based rates under
contract. The Short-Term Rate shall be the lower of the applicable Non-Levelized
Non-Fueled Rate or the Market Rate. The rate is subject to a Seasonal Factor, a Daily
Shape Adjustment, and Integration Charges. The resultant rate shall be applied to the
Facility output for all kilowatt-hours up to the Eligibility Cap in any given month.
(4) Levelized Non-Fueled Rates - These rates shall apply when the Customer chooses to
supply output including energy and capacity under Levelized Avoided Cost Rates for
Non-Fueled Facilities. These rates shall apply to Facilities that do not use natural gas
as their primary fuel. The rates shall depend upon the on-line operation date and term
of the agreement and shall be fixed for the term. The rate components are subject to
Seasonal Factors, a Daily Shape Adjustment, and Integration Charges. The resultant
rate shall be applied to the Facility output for all kilowatt-hours up to the Eligibility
Cap in any given month.
(5) Non-Levelized Non-Fueled Rates - These rates shall apply when the Customer
chooses to supply output including energy and capacity under a contract based on
Non-Levelized Avoided Cost Rates for Non-Fueled Facilities. These rates shall apply
to Facilities that do not use natural gas as their primary fuel, and shall be fixed for the
term. The rates are subject to a Seasonal Factor, a Daily Shape Adjustment, and
Integration Charges. The resultant rate shall be applied to the Facility output, for all
kilowatt-hours up to the Eligibility Cap in any given month.
CONTRACTING PROCEDURES :
The Company agrees to adhere to the following contract procedures for the purchase of
output from Customers who own Qualifying Facilities for which this tariff applies and that is
delivered to the Company's system. These contracting procedures are adjusted periodically
and are on file with the ldaho Public Utilities Commission.
lssued March 27,2014 Effective May 5,2014
By f Kelly O. Norwoodru ,J^,-r"J
VP, State & Federal Regulation
LP.U.C. No.28 Original Sheet 62C
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62- continued
(l) Procedures
A. To obtain an indicative pricing proposal for a proposed Qualifuing Facility,
the Customer shall provide the Company information that is reasonably
required to develop such a proposal. General information regarding a
Qualifying Facility shall include, but not be limited to:
i) Qualiffing Facility owner name, organizational structure and chart, and
contact information;iD generation and other related technology applicable to the Qualiffing
Facility;iii) design capacity, station service requirements, and the net amount of
power, all in kilowatts (kW), to be delivered to the Company's electric
system by the Qualifring Facility;iv) schedule of estimated Qualifring Facility electric output, in an 8,760-
hour electronic spreadsheet format;v) ability, if any, of Qualifying Facility to respond to dispatch orders from
the Company;vi) map of Qualifring Facility location, electrical interconnection point, and
point of delivery;
vii) anticipated commencement date for delivery of electric output;
viii) list of acquired and outstanding Qualifying Facility permits, including a
description of the status and timeline for acquisition of any outstanding
permits;
ix) demonstration of ability to obtain Qualiffing Facility status;x) tuel type(s) and source(s);xi) plans to obtain, or actual, fuel and transportation agreements, if
applicable;
xii) where Qualifring Facility is or will be interconnected to an electrical
system besides the Company's, plans to obtain, or actual, electricity
transmission agreements with the interconnected system;
xiii) interconnection agreement status; and
xiv) proposed contracting term and pricing provisions for the sale of electric
output to the Company (i.e., fixed, escalating, indexed).
B. Where the Company determines that the Customer has not provided sufficient
information as required by Section (1)A, the Company shall, within ten (10)
business days, notify the Customer in writing of any deficiencies.
lssued March 27,2014 Effective May 5,2014
lssued Avista
Kelly O. Norwood VP, State & Federal Regulation
d by Avista Utilities
*.+ ,J^,,,,J
I.P.U.C. No. 28 Original Sheet 62D
AVISTA CORPORATION
dba Avista Utilities
C.
SCHEDULE 62 - continued
Following satisfactory receipt of all information required in Section (l)A, the
Company shall, within twenty frve (25) business days, provide the Customer
with an indicative pricing proposal containing terms and conditions tailored to
the individual characteristics of the proposed Qualifuing Facility; provided,
however, that for Qualifuing Facilities eligible for Published Rates pursuant to
the Idaho Public Utilities Commission's eligibility requirements, the
Company will provide such indicative pricing proposal within ten (10)
business days.
The indicative pricing proposal provided to the Customer pursuant to Section
(1)C will not be final or binding on either party. Prices and other terms and
conditions will become final and binding on the parties under only two
conditions:
The prices and other terms contained in a power purchase agreement shall
become final and binding upon full execution of such power purchase
agreement by both parties and approval by the Idaho Public Utilities
Commission, or
The applicable prices that would apply at the time a complaint is filed by a
Qualiffing Facility with the Idaho Public Utilities Commission shall be
final and binding upon approval of such prices by the Idaho Public
Utilities Commission and a final non-appealable determination by the
Idaho Public Utilities Commission that:
a. a "legally enforceable obligation" has arisen and, but for the conduct
of the Company, there would be a contract, and
b. the Qualifring Facility can deliver its electrical output within 180 days
of such determination.
E. If the Customer desires to proceed with contracting its Qualifying Facility
with the Company after reviewing the indicative pricing proposal, it shall
request in writing that the Company prepare a draft power purchase agreement
to serve as the basis for negotiations between the parties. In connection with
such request, the Customer shall provide the Company with any additional
Qualiffing Facility information that the Company reasonably determines
necessary for the preparation of a draft power purchase agreement, which may
include, but shall not be limited to:
i) updated information of the categories described in Section (1)A;ii) evidence of site control for the entire contracting term;
D.
i)
ii)
lssued March 27,2014 Effective May 5,2014
ecr rar{ hrr Arricla I
Kelly O. Noruood VP, State & Federal Regulation
rd by Avista UtilitiesBYrru n/^,"".J
l.P.U.C. No.28 Original Sheet 62E
lssued by
By
Avista Utilities
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
iiD anticipated timelines for completion of key Qualifring Facility
milestones, to include:
a. licenses, permits, and other necessary approvals;
b. tunding;
c. Qualifring Facility engineering and drawings;
d. significant equipment purchases;
e. construction agreement(s);f. interconnection agreement(s); and
g. signing of 3'd-party transmission agreements, where applicableiv) evidence that interconnection studies have been completed, and a
demonstration that Qualifuing Facility interconnection is to occur on or
prior to the requested first delivery date; and,v) additional information as explained in the Company's indicative pricing
proposal.
If the Company determines that the Customer has not provided sufficient
information as required by Section (l)E, the Company shall, within ten (10)
business days, notifr the Customer in writing of any deficiency.
Following satisfactory receipt of all information required in Section (1)E, the
Company shall, within fifteen (15) business days, provide the Customer with a
draft power purchase agreement containing a comprehensive set of proposed
terms and conditions. The draft shall serve as the basis for subsequent
negotiations between the parties and, unless clearly indicated, shall not be
construed as a binding proposal by the Company.
Within ninety (90) calendar days after its receipt of the draft power purchase
agreement from the Company pursuant to Section (l)G, the Customer shall
review the draft power purchase agreement and shall: a) notify the Company
in writing that it accepts the terms and conditions of the draft power purchase
agreement and is ready to execute a contract with same or similar terms and
conditions as the draft contract; or b) prepare
comments and proposals based on the draft,
initial set of written
provide them to the
Company. The Company shall not be obligated to commence negotiations
with a Customer or draft a final contract unless or until the Company has
timely received an initial set of written comments and proposals from the
Customer, or notice from the Customer that it has no such comments or
proposals, in accordance with this Section (l)H.
F.
G.
H.
an
and
lssued March 27,2014 Effective May 5,2014
Kelly O. Norwood VP, State & Federal Regulation
l.P.U.C. No. 28 Original Sheet 62F
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
I. After Customer has met the provisions of Section (1)H above, Customer shall
contact the Company to schedule contract negotiations at such times and
places as are mutually agreeable to the parties.
J. In connection with any contract negotiations between the Company and the
Customer, the Company:
D shall not unreasonably delay negotiations and shall respond in good faith
to any additions, deletions or modifications to the draft power purchase
agreement that are proposed by the Customer;ii) may request to visit the site of the proposed Qualifring Facility if such a
visit has not previously occurred;iii) shall update its pricing proposals at appropriate intervals to
accommodate any changes to the Company's avoided-cost calculations,
the proposed Qualifying Facility or proposed terms of the draft power
purchase agreement;iv) may request any additional information from the Customer necessary to
finalize the terms of the power purchase agreement and to satisff the
Company's due diligence with respect to the Qualiffing Facility.
When both parties are in full agreement as to all terms and conditions of the
draft power purchase agreement, including the price paid for delivered power,
the Company shall prepare and forward to the Customer, within ten (10)
business days, a final, executable version of the power purchase agreement.
The Customer shall, within five (5) business days, execute and return the final
power purchase agreement to the Company.
Where the Customer timely executes and returns the final power purchase
agreement to the Company in accordance with Section (1)L, the Company
will, within ten (10) business days of its receipt of the power purchase
agreement executed by the Customer, execute such power purchase agreement
and submit it to the Idaho Public Utilities Commission for approval.
K.
L.
M.
lssued March 27,2014 Effective May 5,2014
Utilities
Byru J^,^-rJ
Kelly O. Norwood VP, State & Federal Regulation
l.P.U.C. No.28 Original Sheet 62G
lssued by Avista UtilitiesBy . Kelly O. Norwoodru J^,,,,J
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
N. Failure of the Customer to meet any timelines set forth in this Section relieves
the Company of any obligation under this tariff until such time as the
Customer resubmits its Qualit ing Facility and the procedures begin anew. If
the Customer does not execute the final power purchase agteement per
Section (1)L, such final power purchase agreement shall be deemed
withdrawn and the Company shall have no further obligation to the Customer
under this tariff unless or until such time the Customer resubmits the
Qualiffing Facility to the Company in accordance with this Schedule.
(2) Interconnection and Transmission Agreements
A. The Company's obligation to purchase Qualifying Facility electrical output
from the Customer will be conditioned on the consummation of an
interconnection agreement. Where the Qualifuing Facility will not be
physically located within the Company's electrical system, the Customer will
need to consummate an interconnection agreement with the 3'd-party electrical
system.
B. Where the Qualifring Facility will be interconnected to a 3'd-party electrical
system and is requesting either Published Rates, or rates based on firm
delivery of its electrical output, the Company's obligation to purchase such
electrical output will be conditioned on the Customer obtaining a firm
transmission agreement or agreements to deliver all electrical output to the
Company's system. Such agreement(s) shall have minimum terms equal to
the lesser of: a) the term of the agreement being requested by the Qualifring
Facility in Section (l)Axiv, or b) the minimum term required by the 3'd-party
transmission entity to ensure firm roll over transmission rights.
lssued March 27,2014 Effective May 5,2014
VP, State & Federal Regulation
TariffSheets
Underlin e/ S trikethro u gh
l.P.U.C. No. 28
lssued by Avista Utilities
By
+hir+Egq[h Revision Sheet 62
Replacing
Seeen4Third Revision Sheet 62 62
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62
COGENERATION AND SMALL POWER PRODUCTION SCHEDULE - IDAHO
AVAILABLE:
In all electric territory served by the Company in the State of Idaho.
APPLICABLE:
To Oualifyine Faclliliaslha[jntead 1o interconnect to the Company's electrical system
at an interconnection point within the State of Idaho or that intend to deliver the output to the
Company at a point of deliverv on the Company's electrical system within the State of Idaho
To be eligible for the rates provided under this tariff, the Facility must be a Qualifying
Facility with a maximum generating capability equal to or less than the Eligibility Cap.
A_@selling the output of aty_QUelr&l4g Facility (including both
Oualifyins Facilities with a maximum qeneratins capabilitv equal to or less than the
the Elieibility Cap) rind€r+h#will be required to enter into a written agreement with
the Company ln accordance with
asreement{hat is subject to the approval of the Idaho Public Utilities Commission
DEFNITIONS:
"Customer" as used herein means any individual, partnership, corporation, association,
governmental agency, political subdivision, municipality or other entity.
"Cogeneration Facility" means equipment used to produce electric energy and forms of
useful thermal energy (such as heat or steam), used for industrial, commercial, heating, or
cooling purposes, through the sequential use ofenergy.
"Daily Shape Adjustment" means an adjustment to rates based on a difference between
on-peak (6 am to l0pm) rates and off-peak (10 pm to 6 am) rates of $5 per MWh. The Daily
Shape Adjustment increases the on-peak rate and decreases the off-peak rate such that the
difference between the on-peak and off-peak rate is $5A4Wh and the average rate weighted
by the number of on-peak and off-peak hours is equal to the unadjusted avoided cost.
"Eligibility Cap" means for all Qualifying Facilities except wind and solar Qualifying
Facilities, ten (10) average megawatts in any given month. For wind and solar Qualifying
Facilities, "Eligibility Cap" means one-hundred (100) kilowatts nameplate capacity.
"Facility" means the source of electricity owned by the Customer that is located on the
Customer's side of the PCC, and all facilities ancillary and appurtenant thereto, including
interconnection equipment, which the Customer requests to interconnect to the Company's
distribution system.
'oln-Service Date" means the date on which the Facility and System Modifications (if
applicable) are complete and ready for service, even if the Facility is not placed in service on
or by that date.
lssued W Effective @
Kelly O. Norwood VP, State & Federal Regulation
l.P.U.C. No.28
+hi{+Fog!h Revision Sheet 62A
Replacing
Seeen4Third Revision Sheet 624
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
"Integration Charges" means the integration charge applicable to wind generation
approved by the Idaho Public Utilities Commission in Order No. 30500, or as superseded
"Interconnection Service Agreement" is an agteement for interconnection service, between
the Customer and the Company, or the Customer and a 3'd party transmission provider. The
agreement also includes any amendments or supplements thereto entered into by the
Customer and the Company.
"Market Rate" shall be 85 percent (85%) of the v€i
"Point Of Common Coupling" (or PCC) means the point where the Customer's local
electric power system connects to the Company's distribution system, such as the electric
power revenue meter or at the location of the equipment designated to intemrpt, separate or
disconnect the connection between the Customer and the Company.
"Qualifying Facility" shall mean a cogeneration Facility or a Small Power Production
Facility that is a "Quali$ing Facility" as that term is defined in the Federal Energy
Regulatory Commission's regulations, 18 C.F.R. $ 292.101(bxl) (2010), as may be amended
or superseded.
"Seasonal Factors" means a seasonal weighting of 0.84 for the period March through
June, and 1.08 for the period July through February.
"Small Power Production Facility" means the equipment used to produce output
including electric energy solely by the use of biomass, waste, solar power, wind, water or any
other renewable resource.
RATES:
The Company agrees to pay the following rates for the purchase of output from Facilities
for which this tariff applies and that is delivered to the Company's system. These rates are
adjusted periodically and are on file with the Idaho Public Utilities Commission.
(l) Levelized Fueled Rates - These rates shall apply when the Customer chooses to
supply output including energy and capacity under Levelized Avoided Cost Rates for
Fueled Facilities. The rates shall apply to natural gas fueled Facilities and shall
depend upon the on-line operation date and term of the agreement and shall be fixed
for the term. The adjustable component rate shall be changed periodically subject to
Idaho Public Utilities Commission orders. Both the fixed and adjustable rate
components are subject to Seasonal Factors, a Daily Shape Adjustment, ffid
Integration Charges. The resultant rate shall be applied to the Facility output for all
kilowatt-hours up to the Eligibility Cap in any given month.
lssued W Effective @
lssued by
By
Avista Utilities
Kelly O. Norwood VP, State & Federal Regulation
l.P.U.C. No.28
feu++fftn Revision Sheet 628
Replacing
Sheet 628
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
(2) Non-Levelized Fueled Rates - These rates shall apply when the Customer chooses to
supply output including energy and capacity under Non-Levelized Avoided Cost
Rates for Fueled Facilities. The fixed component rate shall be fixed for the term of
the agreement. The adjustable component rate shall be changed periodically subject
to Idaho Public Utilities Commission orders. Both the fixed and adjustable rate
components are subject to Seasonal Factors, a Daily Shape Adjustment, ffid
Integration Charges. The resultant rate shall be applied to the Facility output for all
kilowatt-hours up to the Eligibility Cap in any given month.
(3) Short-Term Rate - The Short-Term Rate shall be applicable when the Customer
chooses to supply output including energy and capacity at market-based rates under
contract. The Short-Term Rate shall be the lower of the applicable Non-Levelized
Non-Fueled Rate or the Market Rate. The rate is subject to a Seasonal Factor, a Daily
Shape Adjustment, and Integration Charges. The resultant rate shall be applied to the
Facility output for all kilowatt-hours up to the Eligibility Cap in any given month.
(4) Levelized Non-Fueled Rates - These rates shall apply when the Customer chooses to
supply output including energy and capacity under Levelized Avoided Cost Rates for
Non-Fueled Facilities. These rates shall apply to Facilities that do not use natural gas
as their primary fuel. The rates shall depend upon the on-line operation date and term
of the agreement and shall be fixed for the term. The rate components are subject to
Seasonal Factors, a Daily Shape Adjustment, and Integration Charges. The resultant
rate shall be applied to the Facility output for all kilowatt-hours up to the Eligibility
Cap in any given month.
(5) Non-Levelized Non-Fueled Rates - These rates shall apply when the Customer
chooses to supply output including energy and capacity under a contract based on
Non-Levelized Avoided Cost Rates for Non-Fueled Facilities. These rates shall apply
to Facilities that do not use natural gas as their primary fuel, and shall be fixed for the
term. The rates are subject to a Seasonal Factor, a Daily Shape Adjustment, and
Integration Charges. The resultant rate shall be applied to the Facility output, for all
kilowatt-hours up to the Eligibility Cap in any given month.
CONTRACTING PROCEDURES :
The Company agrees to adhere to the following contract procedures for the purchase of
output from Customers who own Oualifyins Facilities for which this tariff applies and that is
delivered to the Company's system. These contractine procedures are adjusted periodicall),
and are on file with the Idaho Public Utilities Commission.
By Kellv O. Norwood VP, State & Federal Reoulation
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
(l) Procedures
A. To obtain an indicative pricine proposal for a proposed Oualifying Facility.
the Customer shall provide the Company information that is reasonably
required to develop such a proposal. General information reeardins a
Oualifrine Facility shall include. but not be limited to:
i) Oualifuing Facility owner name" organizational structure and chart. and
contact information:
ii) generation and other related technology applicable to the Oualif.ving
Facility:
iii) desien capacity. station service requirements. and the net amount of
power" all in kilowatts (kW). to be delivered to the Company's electric
system by the Oualifuing Facility:
iv) schedule of estimated Ouali&ine Facility electric output. in an 8.760-
hour electronic spreadsheet format:
v) abililv. if any. of Oualifuine Facility to respond to dispatch orders from
the Company:vi) map of Oualiftine Facility location. electrical interconnection point. and
point of delivery;
vii) anticipated commencement date for delivery of electric output:
viii) list of acquired and outstanding Quali{ying Facility permits. including a
description of the status and timeline for acquisition of any outstanding
permits:
ix) demonstration of ability to obtain Oualit ing Facilit), status:x) fuel type(s) and source(s):
xi) plans to obtain" or actual. fuel and transportation aereements. if
applicable:
xii) where Qualifring Facilitv is or will be interconnected to an electrical
system besides the Company's. plans to obtain. or actual. electricity
transmission agreements with the interconnected system:
xiii) interconnection agreement status: and
xiv) proposed contracting term and pricine provisions for the sale of electric
output to the Company (i.e.. fixed. escalating. indexed).
B. Where the Company determines that the Customer has not provided sufficient
information as required by Section (1).A. the Compan), shall. within ten (10)
business days" notifr the Customer in writing of any deficiencies.
Bv Kellv O. Norwood VP, State & Federal Requlation
AVISTA CORPORATION
dba Avista Utilities
C.
SCHEDULE 62 - continued
Followine satisfactory receipt of all information required in Section (1).A. the
Company shall. within twenty five (25) business days" provide the Customer
with an indicative pricing proposal containing terms and conditions tailored to
the individual characteristics of the proposed Oualiftine Facility: provided.
however. that for Qualifyine Facilities eligible for Published Rates pursuant to
the Idaho Public Utilities Commission's eligibilitv requirements. the
Company will provide such indicative pricing proposal within ten (10)
business days.
The indicative pricing proposal provided to the Customer pursuant to Section
(l)C will not be final or binding on either party. Prices and other terms and
conditions will become final and bindine on the parties under only two
conditions:
i) The prices and other terms contained in a power purchase asreement shall
become final and binding uoon full execution of such power purchase
agreement by both parties and approval bv the Idaho Public Utilities
Commission. or
ii) The applicable prices that would apply at the time a complaint is filed by a
Qualifrine Facilitv with the ldaho Public Utilities Commission shall be
final and bindine upon approval of such prices by the Idaho Public
Utilities Commission and a final non-appealable determination b), the
ldaho Public Utilities Commission that:
a. a "leeally enforceable oblieation" has arisen and. but for the conduct
of the Company" there would be a contract. and
b. the Oualiftine Facility can deliver its electrical output within 180 days
of such determination.
If the Customer desires to proceed with contractine its Qualifying Facility
with the Companv after reviewine the indicative pricine proposal. it shall
request in writing that the Company prepare a draft power purchase aereement
to serve as the basis for negotiations between the parties. In connection with
such request. the Customer shall provide the Company with any additional
Ouali&ine Facility information that the Company reasonably determines
necessar.v for the preparation of a draft power purchase agreement. which may
include. but shall not be limited to:
D updated information of the cateeories described in Section (1).A:
ii) evidence of site control for the entire contractins term:
D.
E.
Bv Kellv O. Norwood VP, State & Federal Requlation
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62- continued
milestones. to include:
a. licenses. permits. and other necessary approvals:
b. fundine:
c. Qualifuing Facility ensineerine and drawings:
d. significant equipment purchases:
e.
f.
ir) evidence that interconnection studies have been completed. and a
demonstration that Quali&ine Facility interconnection is to occur on or
prior to the requested first delivery date: and.
v) additional information as explained in the Company's indicative pricine
proposal.
If the Company determines that the Customer has not provided sufficient
information as required by Section (1).E. the Companv shall. within ten (10)
business days. notify the Customer in writine of any deficiency.
Followine satisfactory receipt of all information required in Section (lLE. the
Company shall. within fifteen (15) business days. provide the Customer with a
draft power purchase aqreement containing a comprehensive set of proposed
terms and conditions. The draft shall serve as the basis for subsequent
negotiations between the parties and. unless clearly indicated" shall not be
construed as a binding proposal by the Company.
Within ninety (.90) calendar days after its receipt of the draft power purchase
agreement from the Company pursuant to Section (1).G. the Customer shall
review the draft power purchase agreement and shall: a) notif.v the Company
in writing that it accepts the terms and conditions of the draft power purchase
agreement and is ready to execute a contract with same or similar terms and
conditions as the draft contractl or b) prepare an initial set of written
comments and proposals based on the draft. and provide them to the
Company. The Company shall not be oblieated to commence neeotiations
with a Customer or draft a final contract unless or until the Company has
timely received an initial set of written comments and proposals from the
Customer. or notice from the Customer that it has no such comments or
proposals. in accordance with this Section (l).H.
iii)
F.
G.
H.
construction agreement(s)l
lssued March 27.2014 Effective Mav 5.2014
By Kellv O. Norwood VP, State & Federal Reoulation
|.P.U.C. No. 28 Orioinal Sheet 62F
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
I. After Customer has met the provisions of Section (1).H above. Customer shall
contact the Company to schedule contract negotiations at such times and
places as are mutually asreeable to the parties.
J. In connection with any contract negotiations between the Company and the
Customer. the Company:
i) shall not unreasonably delay neqotiations and shall respond in eood faith
to any additions. deletions or modifications to the draft power purchase
agreement that are proposed by the Customer:
ii) may request to visit the site of the proposed Qualifring Facility if such a
visit has not previously occurred:
iii) shall update its pricing proposals at approoriate intervals to
accommodate any changes to the Company's avoided-cost calculations.
the proposed Oualifyine Facility or proposed terms of the draft power
purchase agreement:
iv) may request any additional information from the Customer necessary to
finalize the terms of the power purchase agreement and to satisfu the
Company's due diligence with respect to the Ouali&ing Facility: and.v) shall resolve disputes related to power purchase agreement terms
consistent with Section (3) of this tariff.
K. When both parties are in full aereement as to all terms and conditions of the
draft power purchase agreement. includine the price paid for delivered power.
the Company shall prepare and forward to the Customer. within ten (10)
business days. a final. executable version of the power purchase agreement.
L. The Customer shall. within five (5) business days. execute and return the final
power purchase agreement to the Company.
M. Where the Customer timely executes and returns the final power purchase
aereement to the Company in accordance with Section (1).L. the Company
will. within ten (.10) business days of its receipt of the power purchase
agreement executed by the Customer. execute such power purchase agreement
and submit it to the Idaho Public Utilities Commission for approval.
lssued March 27.2014 Effective Mav 5.2014
lssued bv Avista UtilitiesBy Kelly O. Norwood VP. State & Federal Requlation
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
N. Failure of the Customer to meet any timelines set forth in this Section relieves
the Company of any oblieation under this tariff until such time as the
Customer resubmits its Oualifring Facility and the procedures begin anew. If
the Customer does not execute the final power purchase aqreement per
Section (1).L. such final power purchase aerreement shall be deemed
withdrawn and the Company shall have no fi.rther oblieation to the Customer
under this tariff unless or until such time the Customer resubmits the
Oualiffins Facilitv to the Company in accordance with this Schedule.
(2) Interconnection and Transmission Asreements
A. The Company's oblieation to purchase Oualifring Facility electrical output
from the Customer will be conditioned on the consummation of an
interconnection agreement. Where the Oualifuine Facility will not be
physically located within the Companv's electrical system. the Customer will
need to consummate an interconnection agreement with the 3'd-partv electrical
system.
B. Where the Oualifring Facility will be interconnected to a 3'd-part), electrical
system and is requestine either Published Rates. or rates based on firm
delivery of its electrical output. the Company's oblisation to purchase such
electrical output will be conditioned on the Customer obtaining a firm
transmission aqreement or agreements to deliver all electrical output to the
Company's system. Such agreement(s) shall have minimum terms equal to
transmission entity to ensure firm roll over transmission riehts.
lssued March 27. 2014 Effective Mav 5, 2014
lssued bv Avista UtilitiesBv Kellv O. Norwood VP. State & Federal Reoulation