20180112Decision Memo.pdf

DECISION MEMORANDUM
TOr COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STATF
FROM:CAMILLE CHRISTEN
DEPUTY ATTORNEY GENERAL
DATE: JANUARY 12,2018
SUBJBCT:THE JOINT PETITION Otr' AVISTA CORPORATION ANI} CLARK
FORK HYDRO LLC FOR APPROVAL OF A POWER PURCHASE
AGPSEMENT, CASE NO. AVU.E-I8.OI.
On January 9,2018, Avista Corporation dba Avista Utilities and Clark Fork Hydro LLC
(collectively, "the Parties") jointly petitioned to the Commission for an order approving their
Power Purchase Agreement (PPA), with a requested effective date of January l, 2018.
Application at l. The Parties explain that Clark Fork is the developer of the Den Creek
Hydroelectric Project, a 250 kilowatt (kV/) "quali$ing facility" (QF) under the Public Utility
Regulatory Policies Act (PURPA). ld. at 2. Under the PPA, Avista will purchase the output of
the QF at the applicable non-levelized rates for non-seasonal hydro pdects smaller than l0
average megawatts. Id. at}. The PPA has a 20-year terrn. See id. al4.
According to the PPA, the Parties had a prior agreement under which Avista purchased
the output from the QF, which expired by its own terms on December 31, 2017, PPA at 3. The
Parties entered into the proposed PPA so that Avista could continue to purchase the output from
the QF. ld. ln sum, the Parties jointly request that the Commission issue an order accepting the
PPA, without change or condition, with an effective date of January 1,2018, and declaring that
all payments made by Avista for purchases under the PPA be allowed as prudently incurred
exp€nses for ratemaking purposes. Application at 4.
STAFF RECOT{MENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with commerts due within 2l days of the date of the Order, and reply
comments, if any, due within 7 days of the comment deadline.
DECISION MEMORANDUM I
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Moditied
ProcEdure, with comments due within 2l days of the date of the Order, and reply comrnents, if
any, due within 7 days of the comment deadline?
Camille Christen
Deputy Attorney General
?DECISION MEMORANDUM