20161024Petition.pdf

A vista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
October 24, 2016
State of Idaho
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702-5983
Attention: Ms. Jean Jewell, Secretary
RE: AVU-E-16-Joint Petition of Avista and Stimson Lumber
Dear Ms. Jewell:
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Enclosed is an original and seven (7) copies of a Joint Petition of A vista Corporation and Stimson
Lumber Company for Approval of Amendment No. 1 to its Power Purchase and Sale Agreement.
Please contact Michael Andrea at [phone] with any questions related to this filing.
Sincerely,
&S. ~f 1 Pl" emor Manager o Regu atory o icy
A vista Utilities
linda. [e-mail]
509-495-4975
Enclosures
For Avista Corporation
Michael G. Andrea (ISB No. 8308)
Senior Counsel
A vista Corporation
1411 East Mission, MSC-23
Spokane, WA 99202
Phone: [phone]
Facsimile: [phone]
For Stimson Lumber Company
Lisa Zentner
Purchasing Manager
Stimson Lumber Company
520 SW Yamhill, Suite 700
Portland, OR 97204
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT PETITION )
OF AVISTA CORPORATION AND ) CASE NO. AVU-E-//p-() j
STIMSON LUMBER COMP ANY FOR )
APPROVAL OF AMENDMENT NO. 1 TO ) JOINT PETITION OF AVISTA
POWER PURCHASE AND SALE ) CORPORATION AND STIMSON
AGREEMENT ) LUMBER COMP ANY
________________ )
A vista Corporation ("A vista") and Stimson Lumber Company ("Stimson")
(collectively, the "Parties") hereby jointly petition the Idaho Public Utilities Commission
("Commission") for an order approving Amendment No. 1 ("Amendment") to the Power
Purchase Agreement between A vista and Stimson ("Agreement"). If approved, the
Amendment will extend the Agreement through December 31, 2019. A vista and Stimson
respectfully request that the Commission approve the Amendment with an effective date
Page -1 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
of January 15, 2017, so that it becomes effective at the time that the Agreement would
otherwise expire. The Amendment is attached hereto as Attachment A.
1. Names and Addresses of Petitioners
A vista Corporation
1411 East Mission A venue
Spokane, WA 99202
Stimson Lumber Company
520 S.W. Yamhill
Suite 700
Portland, OR 97204
2. Nature of Businesses
A vista is a corporation created and organized under the laws of the State of
Washington with its principal office in Spokane, Washington. Avista is an investor­
owned utility engaged in, among other things, the business of generating, transmitting,
and distributing electric power to wholesale and retail customers in Idaho and
Washington. Avista also provides natural gas service to customers in Idaho, Washington,
and Oregon. As such, A vista's rates, charges, services and practices are regulated, in
part, by this Commission.
Stimson is a corporation organized under the laws of the State of Oregon that
operates a thermal wood waste small power electric generation plant located at Plummer,
Idaho ("Facility"). The Facility is capable of generating up to approximately 6.5
megawatts of energy. The Facility is a Qualifying Facility pursuant to the Public Utility
Regulatory Policies of Act of 1978 ("PURP A").
Page -2 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
3. Names of Representatives
All communications, pleadings, and orders with respect to this proceeding should
be directed to:
For Avista Corporation:
Steve Silkworth
Manager, Wholesale Marketing and
Contracts
A vista Corporation
1411 E. Mission Ave., MSC-7
Spokane, WA 99202
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
For Stimson Lumber Company:
Lisa Zentner
Purchasing Manager
Stimson Lumber Company
520 SW Yamhill, Suite 700
Portland, OR 97204
Direct: 503-478-1552 / Shortel Ext: 7552
Fax: [phone]
Cell: 503-593-1974
E-mail: [e-mail]
4. Description of Agreement
Michael G. Andrea
Senior Counsel
Avista Corporation
1411 E. Mission Ave., MSC-23
Spokane, WA 99202
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Daniel McFall
COO/CFO
Stimson Lumber Company
520 S.W. Yamhill, Suite 700
Portland, OR 97204
Upon its effective date, the Amendment will extend the Agreement between the
Parties originally approved by the Commission in Order No. 32436, which was issued in
Case No. A VU-E-11-06 on January 19, 2007. The Agreement is due to expire on
January 14, 2017. The Amendment, if approved, will extend the te1m through December
31, 2019 (the period from January 15, 2017 through December 31, 2019 is referred to
herein as the "Extended Period"). The Amendment also amends the Agreement to apply
Page - 3 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
the applicable published avoided cost rates to the purchase by A vista of all output of the
Facility during the Extended Period.
5. Joint Request for Approval
Avista and Stimsonjointly request that the Commission issue an order (i)
accepting the Amendment extending the Agreement through December 31, 2019, without
change or condition, with an effective date of January 15, 2017, and (ii) declaring that all
payments made by A vista for purchases of energy under the Agreement be allowed as
prudently incurred expenses for ratemaking purposes.
Respectfully submitted this 2!51 day of October, 2016.
A VISTA CORPORATION
~-~~dr-e_a _ _,,,-J.---­
Senior Counsel
STIMSON LUMBER COMP ANY
s Zentner
Purchasing Manager
Page - 4 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
ATTACHMENT A
AMENDMENT NO. 1
This AMENDMENT NO. 1 ("Amendment") to the Power Purchase Agreement with an
Effective Date of January 15, 2012 ("Agreement"), is entered into by and between Avista
Corporation, a Washington corporation ("Avista"), and Stimson Lumber Company ("Project
Developer"). A vista and Project Developer are sometimes referred to individually as a "Party"
and collectively as the "Parties."
RECITALS
WHEREAS, the Parties entered into the Agreement under which Project Developer
delivers and sells, and Avista receives and purchases, the output generated by the Facility;
WHEREAS, the Idaho Public Utilities Commission ("IPUC") approved the Agreement in
Order No. 32436 issued on January 13, 2012;
WHEREAS, the Agreement is to expire by its terms on January 14, 2017; and
WHEREAS, the Parties desire to enter into this Amendment to extend the Agreement
through December 31, 2019 and, therefore, agree to amend the Agreement as set forth below:
NOW THEREFORE, it is agreed as follows:
AGREEMENT TO AMEND
A. The Parties agree to extend the Agreement through December 31, 2019, with the
following amendments to the Agreement:
1. Section 5.2 of the Agreement is deleted in its entirety and replaced with
the following:
Project Developer and A vista shall jointly petition the IPUC for an order
approving the Agreement and any mutually agreed to amendment to the
Agreement. This Agreement and any amendment to this Agreement is
conditioned upon the approval and determination by the IPUC that the prices
to be paid for electric power are just and. reasonable, in the public interest,
and that the costs incurred by A vista for purchases of electric power from
Seller are legitimate expenses.
2. Section 5.5 to the Agreement is deleted in its entirety and replaced with
the following:
This Agreement shall expire on December 31, 2019, unless terminated
earlier in accordance with the terms of this Agreement.
Page - 1 AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT BETWEEN
STIMSON LUMBER COMPANY AND A VISTA CORPORATION
3. Exhibit E, Purchase Prices, is deleted and replaced in its entirety with the
First Amended Exhibit E (attached hereto as Attachment A). All references in the
Agreement to Exhibit E shall be deemed to refer to the First Amended Exhibit E.
B. Except as expressly amended by the provisions set fo1th in this Amendment, all of
the tenns and conditions of the Agreement shall remain in full force and effect following
execution of this Amendment and each Party confirms, ratifies and approves the Agreement as
amended by this Amendment. All capitalized terms used herein and not otherwise defined shall
have the respective meanings given to such terms in the Agreement. For the avoidance of doubt,
this Amendment is hereby incorporated in the Agreement and all references to the Agreement
shall be deemed to be references to the Agreement as amended by this Amendment.
C. This Amendment may be executed in two (2) or more counterparts, each of which
shall be deemed as an original and together shall constitute one and the same document.
IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed by
their duly authorized representatives as of the date first set forth above.
STIMSON LUMBER COMPANY AVISTA CORPORATION
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Page -2 AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT BETWEEN
STIMSON LUMBER COMPANY AND AVISTA CORPORATION
ATTACHMENT A
To Amendment No. 1 to Power Purchase Agreement
between Avista Corporation and Stimson Lumber
Company
First Amended Exhibit E
Purchase Prices
The pricing information provided herein is based on current avoided cost rates in Idaho (June 15,
2016) and is subject to change.
The pricing applicable to the project will be consistent with the avoided cost rates that are in
effect at the time that the parties enter into a definitive agreement.
Period
Dec 2016
Jan 2017 -Feb 2017
Mar 2017 -Jun 2017
Jul 2017 -Dec 2017
Jan 2018 -Feb 2018
Mar 2018 -Jun 2018
Jul 2018 -Dec 2018
Jan 2019 -Feb 2019
Mar 2019 -Jun 2019
Jul 2019 -Dec 2019
Heavy Load Hours
$/MWh
67.26
57.35
44.60
57.35
60.02
46.68
60.02
60.28
46.89
60.28
Light Load Hours
$/MWh
61.86
51.95
40.40
51.95
54.62
42.48
54.62
54.88
42.89
54.88