20180718Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: JULY 16,2018
SUBJECT: JOINT PETITION OF AVISTA AND THE CITY OF COVE, OREGON TO
AppRovE PowER PURCHASE AGREEMENT, CASE NO. AVU-E-18-05
On June 19,2018, Avista Corporation dba Avista Utilities and the City of Cove, Oregon,
jointly petitioned the Commission for an order approving their Power Purchase Agreement
("PPA"), with an effective date of June 13, 2018. See Joint Petition of Avista Corporation and the
City of Cove, Oregon at l. The Parties explain that the City of Cove owns and operates an 800 kW
hydroelectric generating facility in or around Cove, Oregon. Id. at 2. The facility is a qualifying
facility ("QF") under the Public Utility Regulatory Policies Act ("PURPA"). Id. Under the PPA,
Avista will buy the QF's output at the applicable levelized rates for non-seasonal hydro projects
smaller than 10 average megawatts. Id. at3. The PPA's term runs through June 12, 2038.[d.
On July 13,2018, Avista filed a letter with an amendment to the Parties' PPA. In sum, the
Parties agreed to amend PPA Sections 7.2 - 7.4 to clarify the implementation of the 90/110
performance band. Amendment to Petition at l-2. The Parties also agreed to amend Section 5.2 to
require that the City provide month-ahead forecasting consistent with Commission Order No.
33103 (e.g., the City will submit its September 2Ol9 net output estimate by July 3l,2Ol9). Id. at
1. In the letter accompanying the amendment, Avista noted that although the City agreed to the
amendment in Section 5.2,the Cityprefers next-month forecasting (e.9., the Cityprefers to submit
its September 2Ol9 estimate by August 30,2Ol9).
IDECISION MEMORANDUM
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Petition and Notice of Modified
Procedure, with comments on the amended PPA due within 21 days of the service date of the
Order, and reply comments, if any, due within 7 days of the comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Petition and a Notice of Modified
Procedure, with comments on the amended PPA due within 21 days of the service date of the
Order, and reply comments, if any, due within 7 days of the comment deadline?
Edward
Deputy General
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2DECISION MEMORANDUM