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Home My WebLink About20150603notice_of_petition_order_no_33312.pdfOffice of the Secretary Service Date June 3,2015 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE JOINT ) PETITION OF AVISTA CORPORATION )CASE NO.AVU-E-15-06 AND CLEARWATER PAPER ) CORPORATION FOR APPROVAL OF )NOTICE OF PETITION AMENDMENT NO.1 TO THE ELECTRIC ) SERVICE AGREEMENT )NOTICE OF )MODIFIED PROCEDURE ) ______________________________ )ORDER NO.33312 On May 13,2015,Avista Corporation and Clearwater Paper Corporation (collectively the “Parties”)filed a Joint Petition requesting that the Commission approve an amendment to their Electric Service Agreement (Agreement)previously-approved by the Commission in June 2013.See Order No.32841.In their amendment dated May 4,2015,the Parties agreed to make two modifications to their Agreement outlined in greater detail below.The Parties request that their Petition be processed under Modified Procedure and seek an effective date of August 1, 2015.1 BACKGROUND Clearwater operates a paper manufacturing facility located in Lewiston,Idaho. Clearwater owns and operates several generating units that are capable of generating approximately 132.2 megawatts (MW).Joint Petition at 2.Clearwater maintains that its four generating units are qualifying cogeneration facilities (QFs)under the Public Utility Regulatory Policies Act (PURPA).Id.However,the current Agreement is a non-PURPA contract. By its terms,the current Agreement terminates on June 30,2018.Joint Petition at 2. The Agreement provides that Clearwater will utilize its own generating units to serve its load and that all electric power requirements in excess of Clearwater’s self-generated power “shall be purchased and received from Avista.”Id.Avista serves Clearwater’s additional power needs under Avista’s Schedule 25P rates (Extra Large General Service). The Parties had initially asked for an effective date of July 1,2015,but subsequently agreed to Staff’s request to extend the proposed effective date to August 1,2015. NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDERNO.33312 1 NOTICE OF PETITION YOU ARE HEREBY NOTIFIED that the Parties have agreed upon two modifications to their Agreement.First,while Clearwater uses its own generation to meet some of its energy needs,“it has additional generating capacity that generally is not economical given current energy rates and wholesale market conditions,...“Joint Petition at 3.However,at certain times,the Parties contemplate that wholesale energy prices may increase to a level that would make Clearwater’s ability to produce additional capacity economical.During such periods,the proposed Amendment provides that Avista may require additional generation “in order to meet its system load requirement,and in lieu of purchasing energy in a higher price wholesale market,would instead purchase from Clearwater such ‘Incremental Energy’at a mutually agreed upon price.”Id.The rates for the purchase of such Incremental Energy is not set out in the amendment but will be “a mutually agreed upon price”at the time the Parties agree to sell/purchase the Incremental Energy.The Parties maintain that the ability to purchase incremental energy would benefit both Clearwater and Avista by providing a lower cost alternative to making market purchases. YOU ARE FURTHER NOTIFIED that in the second modification,the Parties have agreed to extend the length of their existing Agreement by three years,to now terminate on June 30,2021.Instead of continuing the existing Agreement on a year-to-year basis (see Section 2), the Parties maintain that the three-year extension allows them to plan for both generation by Clearwater and meeting customer demand by Avista. YOU ARE FURTHER NOTIFIED that the Petition and the proposed modifications have been filed with the Commission and are available for public inspection during regular business hours at the Commission offices.The Petition and Amendment are also available on the Commission’s web site at www.puc.idaho.gov.Click on the “File Room”tab at the top of the page,scroll down to “Open Electric Cases,”and then click on the case number as shown on the front of this document. 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 NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDERNO.33312 2 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 Petition may file a written comment in support or opposition with the Commission no later than July 17,2015.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 Petition shall be mailed to the Commission and the Parties at the addresses reflected below: Commission Secretary Attorney for Avista Corporation Idaho Public Utilities Commission P0 Box 83720 David J.Meyer,Esq. Boise,ID 83720-0074 Vice President and Chief Counsel for Regulatory and Governmental Affairs Street Address for Express Mail:Avista Corporation 1411 E.Mission Avenue 472 W.Washington Street P.O.Box3727 Boise,ID 83702-5918 Spokane,WA 99220 Attorneys for 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 Adams,PLLC 505 N.27t Street P.O.Box 7218 Boise,ID 83702 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 “Case Comment or Question Form”under the “Consumers”tab,and complete the comment form using the case number as it appears on the front of this document. 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 NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDERNO.33312 3 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 Parties may file reply comments,if necessary,no later than July 22,2015. 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 §sS 61-502 and 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 3 1.01.01.000 et seq. ORDER IT IS HEREBY ORDERED that Avista Corporation and Clearwater Paper Corporation’s Joint Petition be processed under Modified Procedure,IDAPA 31.01.01.201-.204. Persons interested in submitting written comments in this matter must do so no later than July 17,2015.Avista and Clearwater may file reply comments (if necessary)no later than July 22, 2015. NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDERNO.33312 4 DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 3 day of June 2015. / // r PAUL KJELLANDE,PRESIDENT NEORD,IONER KRISTINE RAPER,COMM SSIONER ATTEST: p9 Jn D.Jewell (T’Commission Secretary bls/O:AVU-E I 5O6 don NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDERNO.33312 5