20181220notice_of_application_order_no_34223.pdf

Office of the Secretary
Service Date
December 20,2018
BEFORE THE IDAHO PUBLIC UTILITIBS COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF AVISTA AND
CLEARWATER PAPER FOR APPROVAL
OF A POWER PURCHASE AND SALE
AGREEMENT
CASE NO. AVU.E.18.13
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 34223
On November29, 2018, Avista Corporation ("Avista") and Clearwater Paper
Corporation ("Clearwater Paper") jointly applied to the Commission for an order approving their
Power Purchase and Sale Agreement ("2018 Agreement"). Clearwater Paper owns and operates
four thermal electric generating units with a combined total nameplate capacity of 132.2 mega-
volt amps (MVA). Application at 2. The units are qualifying facilities under the Public Utility
Regulatory Policies Act of 1978 ("PURP A"). Id.
The Commission now issues this Notice of Application and Notice of Modified
Procedure setting comment and reply deadlines.
NOTICE OF APPLICATION
YOU ARE HEREBYNOTIFIED that, if approved, the parties' 2018 Agreementwould
supersede an earlier Agreement between the applicants that was approved by Commission Order
No. 32841 and extended by Commission Order No. 33350 ("2013 Agreement"). Id. at 5.
YOU ARE FURTHER NOTIFIED that the 2018 Agreement would require Avista to
file a new tariff with the Commission, Schedule 25P Block 2 PURPA rates, under which Avista
would buy energy, capacity, and renewable energy credits (RECs) from Clearwater Paper. Id. at
4. Under the 2018 Agreement, Avista would also sell all energy and capacity demanded by
Clearwater Paper to it at this rate. Id. The proposed Schedule 25P Block 2 PURPA rates will be
about $24.50 per MWh. Id. at 4,6-7.
YOU ARE FURTHER NOTIFIED that Avista and Clearwater Paper have contracted
with a third-party buyer, Morgan Stanley Capital Group, who will purchase bundled RECs from
Avista generated by Clearwater Paper. Id. The 2018 Agreement is conditioned on the existence
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34223
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of that contract. Id. If the 20 I 8 Agreement should take effect but then be suspended or terminated,
the applicants would revert to the 2013 Agreement. Id. at 5.
YOU ARE FURTHERNOTIFIED that Clearwater Paper would receive 90% of the net
revenue from RECs sold under the 2018 Agreement, and the remainingl0%o of net revenues would
flow through the Power Cost Adjustment to Avista's Idaho customers. Id. at 8.
YOU ARE FURTHER NOTIFIED that the applicants request the Application be
processed by Modified Procedure. Id. at 10.
YOU ARE FURTHER NOTIFIED that the Application is available for public
inspection during regular business hours at the Commission offices. These documents are also
available on the Commission's web site at rvrvrv.puc.idaho.gt'rv. Click on the "File Room" tab at
the top of the page, then select "Electric Cases" and click on the case number as shown on the
front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically ldaho
Code $$ 61-502 and 6l-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01 .000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHERNOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to Rules 201 through204 of the Commission's Rules of Procedure, IDAPA
31.01.01.201 through .204. The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by no
later than February 412019. The comment must contain a statement of reasons supporting the
comment. Persons desiring a hearing must specifically request a hearing in their written comments.
Written comments concerning this Application shall be mailed to the Commission and the
applicants at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34223 2
For the Commission:For Avista:
Michael G. Andrea
Senior Counsel
Avista Corporation
1411 E. Mission Avenue - MSC-I7
Spokane, WA99202
Street Address for Express Mail:
For Clearwater Paper:
472 W . Washington Street
Boise, ID 83702-5918 Peter Richardson
Richardson Adams, PLLC
505 N. 27th Street
P.O. Box 7218
Boise, ID 83702
Michael S. Gadd
Senior Vice President & General Counsel
Clearwater Paper Corporation
601 W. Riverside Ave., Suite 1100
Spokane, WA 99201
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at rvrvrv.puc.iclaho.gov. Click the "Consumers" tab then click
the "Case Comment or Question Form" and complete the comment form using the case number as
it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the applicants shall file joint reply comments,
if necessary, by no later than February 14,2019.
YOU ARE FURTHERNOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its Order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34223
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
J
ORDER
IT IS HEREBY ORDERED that Avista's and Clearwater Paper's Application be
processed by Modified Procedure, Rule 201-204 (IDAPA 31.01.01 .201-.204)- Persons interested
in submitting written comments must do so by February 4,2019. Avista and Clearwater Paper may
file joint reply comments by no later than Febru ary 14,2019. _.d
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this Z'0
day of December, 2018.
PA PRESIDENT
MMISSIONER
ERIC ANDERSON, COMMISSIONER
A T:
Diane M. Hanian
Commission Secretary
I:\Legal\ELECTRIC\AVU-E-18-13\AVUEl8l3_ntc app mod proc_ej
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34223 4