20161110notice_of_application_order_no_33643.pdf

Office of the Secretary
Service Date
November 10, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT )
APPLICATION OF AVISTA CORPORATION )
AND STIMSON LUMBER COMPANY TO )
APPROVE THE FIRST AMENDMENT TO )
THEIR POWER PURCHASE AGREEMENT )
)
)
) __________________ )
CASE NO. A VU-E-16-08
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 33643
On October 24, 2016, Avista Corporation and Stimson Lumber Company filed a joint
Application asking the Commission to approve the First Amendment to their Power Purchase
and Sale Agreement ( .. Agreement"). The Amendment extends the term of the Agreement, set to
expire January 14, 2017, to December 31, 2019. The Application does not propose how it should
be processed. However, Staff recommended that it be processed by Modified Procedure with a
21-day comment period.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that, under the existing Agreement, approved by
the Commission in 2007, Stimson sells, and A vista purchases, electric power generated by
Stimson's thermal wood waste small power electric generation plant in Plummer, Idaho.
Application at 3; Order No. 32436 at 1. Stimson's plant is a qualifying facility (QF) under the
Public Utility Regulatory Policies Act (PURPA), capable of generating up to 6.5 megawatts
(MW) of energy. Order No. 32436 at 1.
YOU ARE FURTHER NOTIFIED that the current Agreement is set to expire January
14, 2017. Application at 3. Under the Amendment, Avista and Stimson agree to extend the term
of the Agreement through December 31, 2019, using applicable Idaho rates as in effect June 15,
2016. Application at 3-4; Attachment A to Amendment.
YOU ARE FURTHER NOTIFIED that Avista and Stimson ask that the Commission
issue an Order with an effective date of January 15, 2017, and find that all payments made by
A vista for energy purchases under the Agreement be allowed as prudently incurred expenses for
ratemaking purposes.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33643 1
YOU ARE FURTHER NOTIFIED that the Application and its attachments have been
filed with the Commission and are available for public inspection during regular business hours
at the Commission offices. The Application and attachments 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 31.01.01.201-204. The Commission notes that Modified Procedure and
written comments have proven to be an effective means for obtaining public input and
participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or in opposition with the Commission within
21 days from the service date of this Order. The comment must contain a statement of reasons
supporting the comment. Persons desiring a hearing must specifically request a hearing in their
written comments. Written comments concerning this Application may be mailed to the
Commission, Avista, and Stimson Lumber at the addresses reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
472 W. Washington St.
Boise, ID 83702-5918
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33643 2
Avista Corporation
Steve Silkworth, Manager, Wholesale
Marketing and Contracts
Michael G. Andrea, Senior Counsel
A vista Corporation
1411 E. Mission A venue
Spokane, WA 99202
E-Mail: [e-mail]
[e-mail]
Stimson Lumber Company
Lisa Zentner, Purchasing Manager
Daniel McFall, COO/CFO
Stimson Lumber Company
520 SW Yamhill, Suite 700
Portland, OR 97204
E-Mail: lzentner@stimsonl umber .com
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 form using the case number as it appears on
the front of this document. These comments must also be sent to A vista and Stimson Lumber at
the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Applicants may file reply comments, if
necessary, no later than 28 days from the service date of this Order.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code, and specifically
Idaho Code § 61-503. The Commission has authority under PURPA and the implementing
regulations of the Federal Energy Regulatory Commission (FERC) to set avoided costs, to order
electric utilities to enter into fixed-term obligations for the purchase of energy from qualified
facilities and to implement FERC rules. The Commission may enter any final Order consistent
with its authority under Title 61 and PURP A.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments no later than 21 days from the
service date of this Order. The Applicants may file replies no later than 28 days from the service
date of this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33643 3
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /OP.
day of November 2016.
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~ERAPER, CON!MISSiONER
ERIC ANDERSON, COMMISSIONER
ATTEST:
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33643 4