20180806Supplement Amendment No. 2.pdf

Avista Corp.
141 I East Mission P.O.Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
August 03,2018
Diane Hanian, Commission Secretary
Idaho Public Utilities Commission
W . 472 Washington Street
Boise, Idaho 83720
Supplement to Amendment No. 2 to City of Cove Power Purchase Agreement
IPUC Case No. AVU-E-18-05
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 No. 2 to the power
purchase agreement ("PPA") with the City of Cove, Oregon ("City"). This Amendment No. 2 is
being submitted to correct Sections 7.3 and 7.4 of the PPA.
In the original joint petition for approval of the PPA, the parties requested a July 13
effective date for the PPA. In light of the amendments, the parties acknowledge some confusion
regarding the effective date of the PPA. Accordingly, as noted in the enclosed Amendment No.
2, the Parties request an effective date for Amendment No. 2 of July 31,2018 or such other date
as set by the Commission. In order to clarify the effective date of the PPA, the parties' further
request that the Commission set the effective date for the Agreement, Amendment No. I and
Amendment No. 2 to be July 31,2018 or such other date as may be set by the Commission.
Re
Ai|,-stsra
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 [phone].
Sincerely,
/y/Lhl^dfr"M. Ge,na&
Senior Manager of Regulatory Policy
Avista Utilities
I inda. gervais@avistacorp. com
s09-495-4975
2lP a ge
AMENDMENT NO.2
This AMENDMENT NO. 2 ("Amendment2") to the Power Purchase Agreement
("Agreemenf') between Avista Corporation ("Avista') and the City of Cove, Oregon ("City"), is
entered into by the Parties and this Amendment shall be effective on July 3 1, 2018, or such other
date as set by the Commission.
RECITALS
WHEREAS, the Parties entered into the Agreement, under which the City is to deliver
and se1l, and Avista will purchase, electric energy generated fi'om Seller's Facility; and
WHEREAS, it has corne to the Parties attention that certain terms of the Agreement are
incorrect and need to be comected:
NOW THEREFORE, it is agreed as follows:
AGREEMENT TO AMEND
l. ln Amendment No. 1, the Parties attempted to amend Sections 7.3 and 7.4 of the
Agreement to clarify the Surplus Energy Price and Shortfall Energy Price are to be the lessor of
the Market Energy Price or the Avoided Cost Rates, The Market Energy Price is defined in the
Agreement to mean "85 percent (85%) of the PowerDex hourly Mid-Colurnbia ("Mid-C")
index." Amendment No. 1 inconectly defined the Surplus Energy Plice and Shortfall Energy
Price in Sections 7.3 and 7.4 of the Agreement to mean, in relevant part, 85 percent of the
Market Energy Price. To corect the Surplus Energy Price and Shortfall Energy Price, the
Parties agree to amend the Agreement to delete all prior versions of Sections 7,3 and7.4 of the
Agreement in their entirety and replace those sections with the following:
7,3 Surnlus Enerery. For all Surplus Energy delivered to Avista at the Point of
Delivery, Avista shall pay Seller the Surplus Energy Pdce, which shall be the lessor of (i)
the cunent month's Market Energy Price, or (ii) the Avoided Cost Rates.
7,4 Shortfall Enerev. If the month's Net Output is less than 90 percent of the
Monthly Net Output Estimate for the comesponding 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 Point of Delivery, Avista shall pay Seller the
Shortrall Energy Price, which shall be the lessor of (i) the cument month's Market Energy
Price, or (ii) the Avoided Cost Rates.
2. Except as expressly amended by the provisions set forth in this Amendment 2, all
of the terms and conditions of the Agreement shall remain in full force and effect following
execution ofthis Amendment 2 and each Party eonfitrrs, ratifies and approves the Agreement as
amended by this Amendment 2. All capital:aed 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 2 is hereby incorporated in the Agreement and, as of the effective date of
Page - 1 AMENDMENT NO. 2 To POWER PURCHASE AGREEMENT BETWEEN
AVISTA CORPORATION AND THE CITY OF COVE, OREGON
this Amendment2, all rcferences to the Agreement shall be deemed to be refercnces to the
Agreement as amended by this Amendment 2,
3. This Amendment may be executed in two (2) or more counterparts, each of which
shall be deemed as an original and together shall constifute 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.
CITY OF COVE, OREGON AVISTA CORPORATION
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Page - 2 AMENDMENT NO. 2 TO POWER PURCHASE AGREEMENT BETWEEN
AVISTA CORPORATION AND THE CITY OF COVE, OREGON
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