20180831Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 29,2018
SUBJECT: JOINT PETITION OF AVISTA AND THE CITY OF COVE, OREGON TO
APPROVE POWER PURCHASE AGREEMENT, CASE NO. AVU.E.18.O5
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") for an 800 kW hydroelectric generating facility in or around Cove, Oregon.
The facility is a qualifying facility ("QF") under the Public Utility Regulatory Policies Act.
On July 13,2018, Avista filed an amendment to the parties' PPA. The parties agreed
to clarifu that energy deliveries outside the 90/l l0 performance band would receive either 85oh of
the Market Energy Price or the avoided-cost rate, whichever is less. The amendment also addressed
the month-ahead forecasting schedule and made it compatible with Commission Order No. 3 3 1 03 .
On July 23,2018, Avista filed Supplement to Amendment No. I showing the correctly
labeled levelized rates the parties desired to use for the non-seasonal hydro project.
On August 6,2018, Avista filed Supplement to Amendment No. 2 to further clarify the
application of the Market Energy Price and to reconcile the effective date of the PPA and the
amendments.
On August 15,2018, Staff filed comments recommending the Commission approve the
application with the caveat that the Commission approve the contract with the avoided-cost rates
in effect when the agreement was originally signed by both parties, June 13, 2018. At the time of
Staff s comments, the rates reflected in the PPA had expired on May 31,2018.
On August 24,2018, Avista filed Supplement to Amendment No. 3, which amended
the avoided-cost rates to those in effect when the PPA and all the amendments were signed.
DECISION MEMORANDUM I
STAFF RECOMMENDATION
Staff recommends that the Commission re-open the comment period for 14 days with
a7-day reply period. Avista's Supplement to AmendmentNo. 3 was filed after the comment period
and the reply period expired. Therefore, no opportunity has been provided for the public to
comment on the application as it is currently written. Staff believes that, in the interest of fairness
and administrative efficiency, the comment period should be re-opened. Avista has advised Staff
that Avista concurs in Staff s recommendation.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Extended Comment Period, with
comments on the amended PPA due within 14 days of the service date of the Order, and reply
comments, if any, due within 7 days of the comment deadline?
Edward J
Deputy Attorney
t:\Legal\ELECTRICLA.VU-E-18-05Vnemos'fiVUEl805 decisionmemo_commentperiod.docx
2DECISION MEMORANDUM