20180713Amendment 1 to Petition.pdf

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Avista Corp.
141 1 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
July 12,2018
Diane Hanian, Commission Secretary
Idaho Public Utilities Commission
W. 472 Washington Street
Boise, Idaho 83720
Amendment No. I to City of Cove Power Purchase Agreement
IPUC Docket No. AVU-E-I 8-05
Dear Ms. Hanian:
Attached for filing with the Commission is an electronic copy of Avista Corporation,
doing business as Avista Utilities ("Avista" or "Company"), amendment to the power purchase
agreement ("PPA") with the City of Cove, Oregon ("City"). The enclosed amendment revises
sections 7.3 and 7.4 of the of the PPA to clarify that the rate paid for Surplus Energy and
Shortfall Energy will be the lessor of (i) 85 percent of the current month's Market Energy Price,
or (ii) the Avoided Cost Rates. The attached amendment also revises section 5.2 of the PPA to
provide that Monthly Net Output Estimates are to be updated on a monthly basis in a manner
consistent with Commission Order No. 33103.
The City has agreed to the attached amendment. However, the City has requested that
Avista note its preference to provide updates to the next month's Monthly Net Output Estimates
at the end of the immediately preceding month, rather than a month prior to the month in which
the output is to be delivered as required by revised section 5.2 of the PPA.
Re:
An original and seven (7) are being provided via overnight mail. Please direct questions
on this matter to Michael Andrea at [phone] or myself at (509) 495-497 5.
Sincerely,
/y/Lu^"dnrM. Gena,i*
Senior Manager of Regulatory Policy
Avista Utilities
linda. gervais@avistacorp. com
509-495-4975
Enclosures
2lP age
7/11/18
AMENDMENT NO. 1
This AMENDMENT NO. I ("Amendment') to the Power Purchase Agreement
("Agreement") between Avista Corporation ("Avista') and the City of Cove, Oregon ("City"), is
entered into by the Parties and this funendment shall be effective on June 11, 2018
RECITALS
WHEREAS, the Parties enterred into the Ageement on June 7,20L8, under which the
City is to deliver and sell, and Avista will purchase, electr{c energy generated from Seller's
Facili8; and
WHEREAS, it has come to the Parties attention that certain terrrs of the Agreement are
not consistent with the Commission's policy for firm energy delivered fiom hydroelectric
generating facilities that QFs:
NOW TIDREFORE, it is agreed as follows:
AGREEMENT TO AMEND
1. Consistent with Order No. 33103, the Parties intended the Agreement to provide
for updates to generation estirnates. It has come to the Parties attention that the provision in the
Agreement providing for monthly updates is not sufiiciently clear. Accordingly, the Parties
desire to amend Section 5.2 of the Agreement to read, in its entirety, as follows:
5.2 Subsequent Monthlv Net Output 4stimates. Priorto the end of the first month
following the Initial Delivery Date, and prior to end of every month thereafter, Seller
shall provide to Avista updated Monthly Net Output Estimates for the month following
the next month. For example, assuming that the Initial Delivery Date is November 1,
2018, on or before November 30, 2018, Seller shall provide Avista revised Monthly Net
Output Estimates for January 2019. Prior to December 31, 2018, Seller shall provide
Avista revised Monthly Net Output Estimates fot February 2019. Selier shall provide
such updates to Monthly Net Output Estimates for the Term of this Agreement. Seller
shall provide such revised Monthly Net Output Estimates to Avista by written notice in
accordance with Section 29, no later than 5:00 p.m. of the last Business Day of the month
during which they are required to be provided.
2. The Parties desire to amend the Agreement to c1ariff that the Avoided Costs
Rates, as defined in the Agreement, are the Avoided Cost Rates For Non-Fueled Projects Smaller
Than Ten Average Megawatts -Levelized. that are applicable to non-seasonal hydroelectric QFs,
Accordingly, Section 7,2 of the Agreement is amended to read, in its entirety, as follows:
7,2 Base Enerw. For all Base Energy delivered to Avista at the Point of Delivery,
Avista shall pay Seller the applicable rate based upon the Avoided Cost Rates For Non-
Fueled Projects Smaller Than Ten Average Megawatts - Levelized that are applicable to
Page - i AMENDMENT NO. I TO POWER PURCHASE AGREEMENT BETWEEN
AVISTA COPJORATION AND THE CITY OF COVE, OREGON
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7/11/18
non-seasonal hydroelectric QFs and that are in effect on the Effective Date ("Avoided
Cost Rates"). The Avoided Cost Rates are specified in Exhibit B.
Exhibit B is also replaced in its entirety with the Exhibit B that is attached to this Amendment as
Attachment 1.
J.
as follows:
The Parties desire to amend Section 7.3 of the Agreernent to read, in its entirety,
7.3 Surplus Ene.rw. For all Surplus Energy delivered to Avista at the Point of
Delivery, Avista shall pay Seller the Surphs Energy Price, which shall be the lessor of (i)
85 percent of the cument month's Market Energy Price, or (ii) the Avoided Cost Rates.
4. The Parties desire to amend Section 7.4 of the Agreement to rcad, in its entirety,
as follows:
7,4 Shor$.all F,nerev. If the month's Net Output is less than 90 percent of the
Monthly Net Output Estimate for the con'esponding month, Shortfall Energy will be the
same month's actual Net Output delivered to Avista at the Point of Delivery. For all
Shortfall Energy Delivered to Avista at the Poinht of Delivery, Avista shall pay Seller the
Shortfall Energy Price, which shall be the lessor of (i) 85 percent of the current month's
Market Energy Price, or (ii) the Avoided Cost Rates.
5. Except as expressly amended by the provisions set forth 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 bythis 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, as of the effective date of this
Amendment, all rcferences to the Agreement shall be deemed to be references to the Ageement
as amended by this Amendment.
Page - 2 AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT BETWEEN
AVISTA CORPORATION AND TI{E CITY OF COVE, OREGON
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6. This Amendment may be executed in two (2) or nrore counterparts, each of which
shall be deemed as an original and together shall constitute one and the same document.
IN WITIYESS WHEREOX', the Parties have caused this Amendment to be executed by
tlreir duly authorized representatives as of the date first set forth above.
CITY OF COVE, OREGON AVISTA CORPORATION
By:By:
Printed o Printed Name: CJ"n .lt,t"*r D.?"LeAasa(Title:I
Pase - 3 AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT BETWEEN
AVISTA CORPORATION AND THE CITY OF COVE, OREGON
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