20161201Comments.pdf

DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 8370
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
iE CEIVE O
2016 DE(' -I PM f2: 30
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. AVU-E-16-08
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Daphne Huang, Deputy Attorney General, and in response to the Notice of
Application and Notice of Modified Procedure issued in Order No. 33643, submits the following
comments.
BACKGROUND
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"). Under the existing Agreement, approved by the Commission in
2007, Stimson sells and Avista 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
STAFF COMMENTS 1 DECEMBER 1, 2016
Policies Act (PURP A) capable of generating up to 6.5 megawatts (MW) of energy. Order No.
32436 at 1.
The current Agreement is set to expire January 14, 2017. Application at 3. Under the
Amendment, A vista and Stimson agree to extend the term of the Agreement through December
31, 2019 using applicable Idaho rates in effect as of June 15, 2016. Application at 3-4;
Attachment A to Amendment. A vista and Stimson ask that the Commission issue an Order with
an effective date of January 15, 2017 and find that all payments made by Avista for energy
purchases under the Agreement be allowed as prudently incurred expenses for ratemaking
purposes.
STAFF ANALYSIS
Staff reviewed the proposed rates and identified a clerical error associated with the Light
Load Hours rate for the period from March 2019 to June 2019. On November 4, 2016, Avista
filed Supplement Attachment A to correct the error. With the correction, Staff confirms that all
rates are correct. All other terms and conditions contained in the proposed Agreement are
consistent with prior Commission orders.
STAFF RECOMMENDATION
Staff recommends that the Commission approve all of the corrected Agreement's terms
and conditions and declare that all payments made by A vista to the Stimson Lumber Company for
purchase of energy and capacity from the thermal wood waste small power electric generation
plant in Plummer will be allowed as prudently incurred expenses for ratemaking purposes.
--~1 Respectfully submitted this / · day of December 2016.
Deputy Attorney General
Technical Staff: Yao Yin
i:umisc:comments/avuel6.8djhyy comments
STAFF COMMENTS 2 DECEMBER 1, 2016
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS pt DAY OFDECEMBER2016,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. AVU-E-16-08, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
STEVE SILKWORTH MGR
WHOLESALE MARKETING
AVISTA CORP
1411 EMISSION AVEMSC-7
SPOKANE WA 99202
E-mail: steve.silkworth(@avistacorp.com
LISA ZENTNER
DANIEL McFALL
STIMSON LUMBER COMPANY
520 SW YAMHILL STE 700
PORTLAND OR 87204
E-mail: [e-mail]
MICHAEL G ANDREA
AVISTA CORP
1411 EMISSION AVE
MSC-23
SPOKANE WA 99202
E-mail: [e-mail]
CERTIFICATE OF SERVICE