20140523Reply Comments.pdf

Avista Corp.
1411 East Mission P.O. Box3727
Spokane, Washington 99220-0500
Telephone 50S.489-0500
TollFree 8W727-9170
May 22,2014
VIA Electronic Fiting
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P O Box 83720
Boise, lD 83720-0074
Re: Avista Case No. AVU-E-14-03
Dear Ms. Jewell:
Enclosed for filing with the Commission is Avista Corporation, doing business as Avista Utilities
reply comments, in the above captioned Case "Cogeneration and Small Power Production
Schedule." An original and seven (7) copies are being provided via overnight mail to the
Commission as well as copies to the service list.
Please direct any questions on this matter to Clint Kalich, Manager of Resource Planning at
(509) 4954532 or Michael Andrea, Senior Counsel at [phone].
Sincerely,
/t{LLnnarAe,ntal*//
Linda Gervais
Manager, Regulatory Policy
Avista Utilities
linda. gervais@ avi stacorp. com
509-495-4975
Enclosures
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MICHAEL G. ANDREA (ISB No. 8308)
Avista Corporation
1411 E. Mission Ave., MSC-23
Spokane, WA99202
Telephone: [phone]
michael. [e-mail]
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR
APPROVAL OF PROPOSED REVISIONS TO
SCHEDULE 62.
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. AVU-E-14-03
REPLY COMMENTS OF AVISTA
CORPORATION
Avista Corporation (ooAvista") respectfully submits the following reply comments in
response to comments submitted on Avista's proposed revisions to its tariff Schedule 62,
Cogeneration and Small Power Production. As discussed herein, Avista agrees with many of the
comments that were submitted and Avista has revised its proposed Schedule 62 to reflect those
comments. A redline of Avista's revised proposed Schedule 62 is attached hereto as Attachment
A.l
L Reply Comments
On March 28,2014, Avista filed an application proposing revisions to its Schedule 62
("Application"). The proposed Schedule 62 provides procedures to be used by Avista and
Qualifuing Facility ("QF") developers in negotiating and entering into power purchase
agreements for the sale of the output of QFs to Avista under the Public Utility Regulatory Policy
Act of 1978 ("PURPA").
I Attachment A is provided for illustrative purposes only to show the changes that Avista proposes to make to its
original proposed Schedule 62.
Page - 1 REPLY COMMENTS OF AVISTA CORPORATION
AVU-E-14-03
Avista has reviewed the comments submitted in this proceeding in response to its
Application. Based on those comments, Avista has determined that certain revisions to its
proposed Schedule 62 are appropriate.
Avista agrees with comments that the Short-Term Rate should be available to all QFs, not
just those below the Eligibility Cap.2 Avista also proposes to expressly include in its Schedule
62the IRP-Based Rate option, which is calculated based on the IRP Methodology tailored to the
individual characteristics of the proposed QF. The IRP-Based Rate option is available to all
QualiSing Facilities exceeding the Eligibility Cap.
Avista proposes to revise its contracting procedures in response to certain comments.
Specifically, in response to concerns regarding the phrase oobut not limited to" in section 1E of
the proposed Schedule 62, Avistaproposes to delete that phrase in section lE. Avista is also
proposing to delete the phrase "but not limited to" in Section lA. Avista also proposes to revise
the time for Customers to execute and return the final power purchase agreement to Avista in
section lL from five business days to ten business days. Avista does not agree with comments
seeking to eliminate the requirement for certain small QFs to provide an 8,760 hour generation
output profile. This requirement is not unduly burdensome and Avista needs this information for
planning and pricing purposes.
Commentors also expressed concern regarding the requirement to show that
interconnection studies have been completed and that the QF interconnection is to occur on or
prior to the requested first delivery date to obtain a draft power purchase agreement. Avista
proposes to delete this requirement from section lE. Avista revised section lK to include a
2 Sagebrush also urges Avista to provide a standard short-term "as available" tariff contract to facilitate execution of
market-based pricing sales. Sagebrush's request for a short-term "as available" tariffis beyond the scope of this
proceeding.
Page - 2 REPLY COMMENTS OF AVISTA CORPORATION
AVU-E-14-03
requirement that the Customer provide evidence that relevant interconnection studies are
complete and that interconnection is to occur on or prior to the requested delivery date before
Avista is required to prepare a final, executable version of the power purchase agreement.
Commentors took issue with section 1D of Avista's proposed Schedule 62, which
provided that the terms and conditions of a power purchase agreement, including pricing, would
not be final and binding unless or until: (1) the power purchase agreement is fully executed by
both parties and approved by the Commission, or (2) the prices are approved by the Commission
and the Commission has issued a final and non-appealable determination that:
a "legally enforceable obligation" has arisen and, but for the conduct of the
Company, there would be a contract, and
b. the Qualifying Facility can deliver its electrical output within 180 days of such
determination.
One commentor asserts that the underlined "and" above should, at a minimum, be
replaced with "or". However, there can be no binding terms and conditions, including binding
pricing, solely because there is a determination that a QF can deliver its electrical output within a
certain period of time. If Avista were to revise its proposed Schedule 62 to replace "and" with
'ooro', it is at least theoretically possible to have a binding price with a QF that has not even
requested a power purchase agreement from Avista if the Commission issues a determination
that the QF can deliver its electrical output within the stated time. Further, the QF contracting
procedures being proposed in this filing are intended to all but eliminate the necessity of
exercising this provision. Where both parties bargain in good faith and ffe responsive within the
timelines proposed in the revised tarifq the QF should have a defined schedule to obtain pricing
that can be used in their project plans.
Page - 3 REPLY COMMENTS OF AVISTA CORPORATION
AVU-E-14-03
Although Avista disagrees with the suggestion to revise "and" to "or" as discussed above,
Avista is amendable to revising section lD in an attempt to address any concems that the ability
to deliver electrical output within 180 days may be too short of a time period. This said, Avista
believes a balance is necessary between providing a QF long-term "put option" with enough
optionality to complete most or all of the tasks associated with developing a new resource, and
contract pricing becoming stale to the disadvantage of utility customers. The legally-enforceable
obligation instead should provide QF developers who both have negotiated in good faith with the
utility and taken significant financial risks and are prepared to deliver power by having already
moving their projects forward through the steps of preliminary engineering, design and major
asset procurement, the certainty necessary to complete their projects. The creation of a legally
enforceable obligation, absent these efforts, has the potential to the disadvantage customers of
the utility. In an attempt to balance the competing interests, Avista is willing to support
revising the 180 days in section D(iD@) to 365 days, a period of time that would cover, using
analyses provided by Staff in their comments, half of the historical QF developer timelines.
Finally, some comments asserted that Avista modifr its notification from ten to five days
when required information is deemed insufficient in sections 18) and 1F). Five business days is
not sufficient review time given the large volume of data the utility is required to review before
making a determination of compliance with Schedule 62. This is especially true if Avista's staff
responsible for processing QF contracts is unavailable, either because such staff is out of the
office on other business, on vacation, i11, or otherwise unavailable. Avista believes the ten-day
review period that it proposed is reasonable.
Avista appreciates the comments submitted in this proceeding and, as discussed herein,
Avista proposes to revise its Schedule 62 to reflect some of those comments. A redline of
Page - 4 REPLY COMMENTS OF AVISTA CORPORATION
AVU-E-14-03
Avista's proposed Schedule 62 reflecting the revisions that Avista proposes to make in response
to comments submitted in this proceeding is attached hereto as Attachment A.
IL Conclusion
Avista appreciates the opportunity to submit these reply comments. Avista respectfully
requests that the Commission approve its revised proposed Schedule 62.
DATED this 22nd day of May 2014.
Page - 5 REPLY COMMENTS OF AVISTA CORPORATION
AVU-E-14-03
Attorney for Avista Corporation
CERTIFICATE OF SERVICE
I hereby certifu that on this 22nd day of May,2014, true and correct copies of
the foregoing Reply Comments of Avista Corporation were served by emailing and
mailing a copy thereof, postage prepaid, to the following.
Jean Jewell
Idaho Public Utilities Commission
472W. Washinglon St.
Boise, ID 83702
Email : j ean j ewell@puc. idaho. gov
Kristine A. Sasser
Deputy Attorney General
Idaho Public Utilities Commission
PO Box 83720
Boise,lD 83720-0074
Email: [e-mail]
Peter Richardson
Gregory M. Adams
Richardson Adams, PLLC
515 N. 27th St.
PO Box 7218
Boise, ID 83702
Email: [e-mail]
gre g@richardsonadams. com
Benjamin J. Otto
710 N 6th Street
Boise,ID 83701
Email: [e-mail]
lsl Uichael C.,qndrea
Michael G. Andrea
Page I-CERTIFICATE OF SERVICE
l.P.U.C. No. 28
Fourth Revision Sheet 62
Replacing
Third Revision Sheets 62
lssued by
By
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 Qualifring 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.
Te be eligible for tlre rates previded txrder this tariff; the Faeility must be a Qnalifuing
A Customer selling the output of any Qualifying Facility (including both Qualifying
facilities with a maximum generating capability equal to or less than the Eligibility Cap and
Qualifring 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.
DEFINITIONS:
"Customer" as used herein means any individual, partnership, corporation, association,
governmental agency, political subdivision, municipality or other entity.
'oCogeneration 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 of energy.
"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 $5/1\{Wh 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.
"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
Avista Utilities
Kelly O. Nonrood 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
"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 agreement 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 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 "Qualifiing 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 to Qualifring Facilitv projects at or
below the Elieibility Cap 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, 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.
lssued March 27,2014 Effective May 5,2014
Kelly O. Nonrood VP, State & Federal Regulation
l.P.U.C. No.28
by Avista Utilities
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 to Qualif.ving Facility projects
at or below the Eligibilitv Cap 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, 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.
(3) Shert Term Rate The
Uen euerce *ate er *e
Fa€itity eutput for d
(4 3) Levelized Non-Fueled Rates - These rates shall apply to Oualifying Facility projects
at or below the Elieibility Cap 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 QNon-Levelized Non-Fueled Rates - These rates shall apply to Oualifying Facility
projects at or below the Elieibility Cap 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.
(5) Short-Term Rate - The Short-Term Rate shall be applicable to any Oualif_ving Facilitv
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
lssued March 27,2014 Effective May 5,2014
By Kelly O. Nonrvood VP, State & Federal Regulation
l.P.U.C. No.28
Fifth Revision Sheet 628
Replacing
Fourth Revision Sheets 62B
lssued by
By
AVISTA CORPORATION
dba Avista Utilities
(6)
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 all kilowatt-hours of eeneration up to the Eligibility Cap for
Oualifrine Facilities below the Eligibility Cap. and to all hourly Facility output up to
contracted nameplate capacity for Ouali8ine Facility exceeding the Eligibility Cap.
IRP-Based Rate - The IRP-Based Rate option is available to all Oualifvine Facilities
exceedine the Eligibility Cap. It shall be calculated based on the IRP Methodology
and tailored to the individual characteristics of the proposed Oualifying Facility.
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 Idatro Public Utilities Commission.
lssued March 27,2014 Effective May 5,2014
Avista Utilities
Kelly O. Nonrvood VP, State & Federal Regulation
l.P.U.C. No.28 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
Qualiffing Facility shall include, ffi:
D Qualiffing Facility owner name, organizational structure and chart, and
contact information;ii) generation and other related technology applicable to the Qualifring
Facility;iiD 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 Qualifuing Facility;iv) schedule of estimated Qualifuing Facility electric output, in an 8,760-
hour electronic spreadsheet format;v) ability, if any, of Qualiffing 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 Qualifting Facility status;x) fuel type(s) and source(s);xi) plans to obtain, or actual, fuel and transportation agreements, if
applicable;
xii) where Qualifying 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 (l)A, the Company shall, within ten (10)
business days, notify the Customer in writing of any deficiencies.
lssued March 27,2014 ive May 5,2014
lssued by
By
Avista Utilities
Kelly O. Norwood VP, State & Federal Regulation
l.P.U.C. No.28 Sheet 62D
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62 - continued
Following satisfactory receipt of all information required in Section (1)A, the
Company shall, within twenty fi+e (250 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
(l)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:
i) 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
ii) 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 Qualifying Facility can deliver its electrical output within {*g 365
days of such determination.
If the Customer desires to proceed with contracting its Qualiffing 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
Qualifring Facility information that the Company reasonably determines
necessary for the preparation of a draft power purchase agreement, which mayshallinclud@:
i) updated information of the categories described in Section (l)A;ii) evidence of site control for the entire contracting term;
C.
D.
lssued March 27,2014 Effective May 5,2014
lssued by
By Kelly O. Norwood VP, State & Federal Regulation
l.P.U.C. No.28
lssued by Avista Utilities
By
Original Sheet 62E
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 62- continued
iiD anticipated timelines for completion of key Qualifuing Facility
milestones, to include:
a. licenses, permits, and other necessary approvals;
b. tunding;
c. Qualifuing Facility engineering and drawings;
d. significant equipment purchases;
e. construction agreement(s);f. interconnectionagreement(s); and
g. signing of 3'd-pany transmission agreements, where applicableiv) eYidenee that inte
!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, notiff the Customer in writing of any deficiency.
Following satisfactory receipt of all information required in Section (l)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 (1)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 an initial set of written
comments and proposals based on the draft, and 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 (1)H.
F.
G.
H.
lssued March 27,2014 Effective May 5,2014
Kelly O. Nonuood VP, State & Federal Regulation
I.P.U.C. No. 28 Original Sheet 62F
AVISTA CORPORATION
dba Avista Utilities
I.
SCHEDULE 62 - continued
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.
In connection with any contract negotiations between the Company and the
Customer, the Company:
i) 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;iD may request to visit the site of the proposed Qualifuing Facility if such a
visit has not previously occurred;iiD shall update its pricing proposals at appropriate intervals to
accommodate any changes to the Company's avoided-cost calculations,
the proposed Qualiffing 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,
and the Customer provides evidence that all relevant interconnection studies
are complete and that interconnection is to occur on or prior to the requested
first delivery date. 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 fi:re€) ten (10) business days, execute and retum
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 receip 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.
J.
L.
M.
lssued March 27,2014 Effective May 5,2014
lssued Avistaby
By Kelly O. Nonrood VP, State & Federal Regulation
l.P.U.C. No.28 Sheet 62G
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 Quali$,ing Facility and the procedures begin anew. If
the Customer does not execute the final power purchase agreement 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
Qualifuing 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 Qualiffing 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-purty electrical
system.
B. Where the Qualifying 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 Qualiffing
Facility in Section (l)Axiv, or b) the minimum term required by the 3'o-party
transmission entity to ensure firm roll over transmission rights.
lssued March 27,2014 Effective May 5,2014
lssued by
By
Avista Utilities
Kelly O. Norwood VP, State & Federal Regulation