20191115Application.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
November 14,2019
Diane Hanian. Secretary
Idaho Public Utilitics Commission
1 133 1 West Chinden Boulevard
Building I Suite 201-A
Boise, Idaho 83 714
RiCEIVED
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Dear Ms. Hanian:
Avista Utilities submits for approval by the Commission the original and seven copies of its
"Application of Avista Corporation to Approve Electric Distribution Service Agreement with
East Greenacres Irrigation District."
Please direct any questions on this matter to Tara Knox at [phone].
Patrick Ehrbar
Director of Regulatory Affairs
enclosure
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DAVID J, MEYER
VICE PRESIDENT AND CHIBI,'COUNSEL T.'OR
REGULATORY AND GOVERNMENTAI, AFFAIRS
AVISTA CORPORATION
P.O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE. WASHINGTON 99220.3727
TELEPHoNE: [phone], FAX: [phone]
DAVID,[e-mail]
IN THE MATTER OF TIIE APPLICATION
OF AVISTA CORPORAIION TO APPROVE
ELECTRIC DISTRIBUTION SERVTCE
AGREEMENT WITH EAST GREENACRES
IRRIGATION DISTRICT
BEFORE THE IDAHO PUBLIC UTILITIT],S COMMISSION
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CASE NO. AVU-E-19-I3
APPLICATION OF
AVISTA
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I. INTRODUCTION
Avista Colporation doing business as Avista Utilities ("Avista" or "Company"), at
l41l East Mission Avenue, Spokane. Washington, respectfully requests lhat the Commission
approve the Electric Distribulion Service Agreement, provided here as Attachment A, with
East Greenacres lnigation District ("East Greenacres"), sometimes hereinafter reibrred to
individually, as a "Party", and collectively, as the "Parties".
The Parties have entered into an Agreement 10 continue the delivery of United States
Bureau of Reclamation ("Bureau" or "Bureau of Reclamation") energy over Avista-owned and
operated distribution tacilities from Avista's Post Falls Substation to the East Greenacres
delivery points. The Agreement is to become effective January l, 2020, or the first day
lbllowing approval by the Commission,JJ
Application ol' Avista Corporation
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The service provided under the Agreement is unique, and therefore more appropriately
provided under a special contract rather than a filed tariff. Further, the contract is non-
discriminatory and is not unreasonably preferential. The distribution charge included in the
Agreement is consistent with distribution charges embedded in current Idaho retail rates at the
time it was signed by the Parties. The incremental costs associated with providing service
under the Agreement are less than the charge for service, therefore, the revenue received from
the Agreement provides a contribution to Avista's fixed costs.
The Company requests that this filing be processed under the Commission's Modified
Procedure rules.
Communications in reference to this Application should be addressed to:l0
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David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory and Govemmental Affairs
Avista Corporation
P.O. Box 3721
l4l I E. Mission Avenue, MSC- 13
Spokane, W A. 99220-3121
Phone: [phone]
Patrick D. Ehrbar
Director, Regulatory Affhirs
Avista Corporation
P.O. Box 3727
l4l I Il. Mission Avenue, MSC-29
Spokane, W A 99220-3'727
Phone: [phone]
Dat.ehrbar@a vistacorD.corn
david.meyer(Da vistacorD.con.l
2t II. BACKGROUND
East Greenacres operates two pumping facilities located on the Rathdrum Prairie to
provide irrigation and domestic water supply to approximately 5,300 acres of land. East
Greenacres has been operating and maintaining these Bureau of Reclamation-built facilities
since December 31,1976. East Greenacres receives electric power to operate these facilities
from the Bureau of Reclamation.
The electric power is delivered through Avista transmission and distribution facilities
to East Greenacres' delivery points. Since March l, 2009, this service has been separated into
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Application of Avista Corporation
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1 two service agreements, one lbr transmission and one tbr distribution, in order to separate the
provision of transmission and distribution service under their respective jurisdictions - open
access transmission service under the Federal Energy Regulatory Commission ("FERC") and
transfbr service over distribution facilities pursuant to applicable requirements in the State ol
Idaho. Avista historically provided this service to East Greenacres under an agreement on file
with FERC since May 27, 1975.
The special contract llled herein provides lbr distribution service from Avista's Post
Falls Substation over l3.2kV feeders to East Greenacres' two pumping stations. Avista has
annually delivered approximately 3.8 million kilowatt-hours to East Greenacres pumping
facilities in recent years. The annual charge for distribution service under the existing
agreement is $4,231 .74 per month, or $50,780.88 per year. This charge was approved by the
Commission in Order No. 33145 in Case No. AVU-E-14-08.
III. TERMS OF AGREEMENT
The Agreement, included as Attachment A, was executed on November 7 , 2019 and
becomes effective ibllowing approval by the Commission. The term of the Agreement
coincides with the term of the Transmission Agreement, but may continue beyond the
expiration of the Transmission Agreement if East Creenacres continues to purchase
transmission service and additional time is needed 1o develop a follow-on distribulion service
agreement. This provision ensures that there will be no gap in the Company's ability to charge
East Greenacres for distribution service.
The charge fbr distribution service under the new Agreement is $5,232.57 per month,
or $62,790.84 per year. The distribution charge is based on East Greenacres' peak demand-
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Application of Avisla Corporation J
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ratio share of Distribution Facilities Costsl derived from Avista's last cost of service study
filed with the Commission in Case No. AVU-E-17-01 updated fbr both the settlement
adjustments and 2019 revenue increase approved by Order No. 33953 and tax reform
adjustrnents approved by Order No. 34070. 'fhe calculation ofthe monthly distribution servicc
fee is included in Exhibit 3 of Attachmenl A.
The Company does not have a tariffin place for customers who take service in a manner
similar to East Greenacres. In fact, East Greenacres is the only customer in Avista's Idaho
service territory who receives its power requirements from the Bureau of Reclamation.
Because the service characteristics are unique, and the distribution charge is based on
Commission-supported demand-based methodology. Avista believes that the contract is not
unreasonably preferential.
IV. REQUEST FOR APPROVAL
Avista, therefore, respectfully requests approval of the "Electric Distribution Service
Agreement" so that East Greenacres Irrigation District may continue to receive Bureau ol'
Reclamation power at charges consistent with the distribution costs embedded in ldaho retail
rates. The incremental costs associated with providing service undcr the Agreement are less
than the charge for service, therefore, the revenue received from the Agreement provides a
contribution to Avista's fixed costs. The service provided under the Agreement is unique, and
therefore more appropriately provided under a special contract rather than a filed tariff.
Further, the contract is non-discriminatory and is not unreasonably preferential. Avista
I Consistent with comments provided by Staff in AVU-E-09-02 stating that "allocation ofdistribution facilities
used by the inigation district based on demand is more appropriate" and the Commission in its final Order No.
30784, subsequently approved in Case No. AVU-E-14-08 by final Order No. 33145, the Company is continuing
its use ofa demand-based methodology for elecnic distribution service provided to the inigation district.
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4Application ol' Avista Corporation
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I believes that the Agreement is in the besl interest oflhe Customer, the Company, and Idaho
retail ratepayers.
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DATED at Spokane, Washington, this /(?|ay of November,2019.
AVISTA CORPORATION
By l7-7,t tv,a
David Jl Mever
Vice President and ChielCounsel fbr
Regulatory and Governmental Affairs
Application of Avista Corporation
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STATE OF WASHINGTON )
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County ofSpokane )
David J. Meyer, being first duly swom on oath, deposes and says: That he is the Vice
President and ChiefCounsel for Regulatory and Governmental Affairs for Avista Colporation
and makes this verilication for and on behalfofsaid corporalion, being thereto duly authorized:
That he has read the foregoing filing, knows the contents thereof, and believes the same
to be true.
\72 / .t7
SIGNED AND SWORN to before me this l4th day of November 2019, by David J. Meyer.
il ll IL A|ffir...-z NO't PUBLIC in and for the State of
Washi residing at Spokane.Puauto 2l23.Commission Expires:17/..J
IIt
6Application of Avista Corporation
VF]RIFICA'IION
Attachment A
Electric Distribution Service Agreement
betwecn Avista Corporation & East Greenacres lrrigation District
ELECTRIC DISTRIBUTION
Sf,RVICE AGREEMf,NT
THIS ELECTRIC DISTRIBUTION SERVICE AGREEMENT ("Agreement"), dated as of
November -l!, 2019, is entered into by and between Avista Corporation ("Avista") and East Creenacres
lrrigation District ("East Greenacres"). hereinaftcr sometimes referred to individually as a "Paqv" and
collectively as the "Parties."
WITNESSETH:
WHEREAS, among other facilities, East Greenacres operates two pumping f'acilities located on the
Rathdrum Prairie, (hereinafter collectively ref'erred to as the "East Greenacres Unit"). lrrigation and
domestic water for the East Greenacres Unit is fumished by ground rvater from wells ranging frorn 230 to
330 t'eet deep. The multipurpose pipeline system used by the East (lreenacres Unit was constructed by the
United States of America, Bureau of Reclamation ("Bureau'') ibr year-round use. It was built to provide
irrigation service to approximately 5.300 acres of land. Operation and maintenance olthe East Greenacres
lJnit was assumed by East Greenacres on Dccember 3l . 1976: and
WHEREAS, pursuant to a separate arrangement between the Bonneville Power Administration
("Bonneville") and East Greenacres, Bonneville transrnits and delivers thc Bureau's energy to Bonneville's
Bell Substation in Spokane, Washington; and
WHEREAS, Avista and the Bureau were parties to a Contract for Transmission Sewice dated May
27, 1975 (Avisra F-ERC Rate Schedule No. 62; [J SBR Contract No. l4-06- 100-8]l I ) which was terminated
on May 1, 2009, and which provided for transfer service to certain East Greenacres' loadsl and
WHEREAS, Avista provides Firm Point-to-Point Transmission Service to East Greenacres pursuant
to a separate agreement under Avista's Open Access Transmission Tariff, to transmit and delivcr Bureau
energy from Bonnevillc's Bell Substation to Avista's ldaho Road and Post Falls Substations (" lransmission
Agreement"); and
WHERf,AS, Avista owns and operates distribution facilities over which Avista delivers Bureau
energy from Avista's ldaho Road and Post Falls Substations to the East Greenacres Unit: and
WHEREAS, East Creenacres and Avista are party to the lllcctric Distribution Service Agreement
dated August 6, 2014, which, but for certain limitcd continuation terms, expires undcr its own tems on
September 30, 2019; and
WHEREAS, Bast Greenacres and Avista desire to enter into this Agreement for the continued
delivery of Bureau energy from Avista's ldaho Road and Post Falls Substations across Avista's
distribution system to the East Creenacres Unil pursuant to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and promises set lbrth herein, the
Parties agree as fbllows:
l. Definitions. In addition to words defined elsewhere in this Agreement as indicatcd rvith initial
capitalization. whenever used in this Agrccment. the terms belou,shall have the following meanings:
l.l "Delivery Points" means those points on Avista's electric system where Bureau energy
transferred by Avista pursuant to this Agreement will be made available to East Greenacres for
the East Grecnacres Unit as described in Exhibit l.
Contract No. AV- l'R l9-0,127
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1.2. "Avista ReceiDt Points" means the point where Bureau cncrgy is rcccived on Avista's
distribution system for delivery pursuant to this Agreement. which point(s) are located at the
I | 5 kV side of Avista's Idaho Road and Post Falls Substation transformers.
Term and Termination. Avista shall file this Agreement, subsequent to its execution. in a timely
manner with the Commission. This Agreement shall become ef't'ective on October 1,2019, or such
other date specified by the Commission, and shall terminate upon the earliest ofthe following events:
(l) termination of the 'Iransmission Agreement, (2) expiration of the 'l'ransmission Agreement,
provided, however,that in the event East Greenacres continues lo purchase transmission service from
Avista following expiration of the 'l'ransmission Agreement, this Agreement shall remain in effect
until such time as the Parties execute. and the Commission approves, a replacement Electric
Distribution Service Agreement, or (3) upon termination by either Party after providing at least one
year's prior written notice of termination.
Deliverv of Electricity. Subject to the delivery of Bureau Energytothe Avista Receipt Points, Avista
shall deliver Bureau energy to East Greenacres at the Delivery Points.
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4. Service Characteristics and Dcmand l,irnit.
4.1 Electric power delivered to the Delivery Points shall be three phase, approximately sixty (60)
Hertz alternating current, at a nominal potential of 13.2 kV, and shall be delivered to the East
Greenacres Unit in amounts not exceeding a demand limit o13000 kW distributed among the
two pumps that compose the East Greenacres Unit.
5. Metering Equioment. Electric powcr delivered hereunder shall be measured by metering equiprnent
installed at the Delivery Points. All metering equipment shall be installcd, owned, and maintained by
Avista.
6. Operation and Maintenance of the East Greenacres Unit and Delivery Facilities. The two pumping
stations composing the East Greenacres Unit are served by Avista's ldaho Road and Post Falls 13.2
kV feeders. Avista shall own, operate and maintain all electrical service facilities up to the Delivery
Points. East Greenacres shall bear all responsibility associated with the operation, maintenance and
replacement of its service transformers and other equipment at and beyond the Delivery Points.
7.1 n Billin Each month during the term of this Agreement, Avista shall bill East
Creenacres a monthly ser.uice f'ee as shown in lrxhibit 3. Such bill shall be rnailed to L,ast
Greenacres a1 the address set lorlh in Seotion l6 below.
Payment. East Greenacres shall pay the amount specified in each invoice by transfer of
immcdiately available t'unds within thirly (30) days of the date specitied in such invoice
(the "Due Date"). lf East Greenacres fails to pay Avista the entire amount of any bill by
the Due Date, East Crecnacres shall pay interest on the unpaid balance, l'rom the Due Date
until paid in full, at a rate of 120 percent ol the Prime Commercial Lending Rate,
Page 2 of 8
7.2
1.3. "Commission" means the Idaho Public Utilities Commission.
4.2 Added Load. East Greenacres shall notify Avista in advance of the addition of any electric
load that would exceed the rated capacity of any of the facilities provided by Avista to serve
the East Greenacres Unit. In the event East Greenacres exceeds the nominal demand provided
in Section 4.1, East Greenacres shall bc liable for all loss and damage to Avista's equipment
and facilities resulting from such excess usage.
7. Billine and Payment.
compounded monthly, as announced by Bank ofAmerica at its Spokane & Eastern Branch
olfice in Spokane, Washington; provided, however. that the interest rate shall not exceed
the maximum rate allowed by applicable law. All payments to Avista shall be submitted
to Avista via electronic funds transfer to the account spccified in each invoice.
8. Scheduling. Scheduling for service under this Agreement shall be pursuant to then current borderline
load scheduling practices between Avista and Bonneville. In thc event borderline load scheduling
practices between Avista and Bonneville cease to exist, East Creenacres shall schedule service under
this Agreement pursuant to standard transmission scheduling practices outlined in Avista's Tariff or
such other scheduling practices as may be mutually agreed upon by the Parties.
9. Losses. East Greenacres shall be responsible for all energy losses related to service under this
Agreement as described in Exhibit 2. East Greenacres shall schedulc loss return energy to Avista
pursuant to Section 8. By mutual agreement from time to time the Parties may establish altemative
arrangements to settle any loss obligation bv East Greenacres. Such alternative arrangements shall be
consistent with the treatment of loss relurn energy in the Transmission Agreement.
10. Billine by Others. Except as otherwise set forth in this Agreement, Avista shall not be responsible for
East Greenacres' billing arrangements for the purchase of Bureau energy, or for the transmission
thereof by others. East Greenacres shall be responsible for sales, use and other taxes associated with
the acquisition and/or transmission, by olhers, of Bureau energy.
ll. Easements and Access to East Greenacres' Propertv. East Greenacres hereby authorizes Avista or its
agent to do all work necessary on the lands ofEast Greenacres to accomplish the installation, operation,
and maintenance of Avista's lines and facilities to provide clectric service required hereunder. East
Greenacres shall grant, without cost to Avista, good and sufficient recordable easements. in a form
satisfactory to Avista, that provide for Avista's facilities to be located over, onr across and/or under
said lands of East Greenacres covering rights-of-way for the installation, operation and maintenance of
Avista's facilities required to render service hereunder.
12. Force Majeure. As used in this Agreement, "Force Majeure" means the inability of either Party to
perform its obligations as set forth herein as a result of unforeseeable causes beyond the reasonable
control of and without the fault or negligence of the Party claiming Force Majeure ("Force Majeure
Events"). which Forcc Majeure Events mav include, but are not lirnited to, the following: acts ofGod.
strikes. lockouts, acts of war, riots, landslides, earthquakes, fires. floods- unforeseeable or unusual
weather conditions. washouts, cxplosions, breakage or accident to machinery or conduit, Force Majeure
occurrences as defined by any approved tariffs, or any binding order, rule or regulation ofany couft or
governmental authority, or any other occurrence beyond the reasonable control ofeither Party whether
similar or dissimilar to any of the fbrcgoing examples. If either Party is rendered wholly or pa(ially
unable to perform its obligations under this Agreement due to a l"orce Majeure Event, that Party shall
be excused from *'hatever performance is affected by the Force Majeure Event to the extent so affected,
and shall not be liable lor said non-pcrformance to eithcr Pany provided that notice ol such Force
Majeure Evenl is given to the other Party wilhin a reasonable time. The occurrence ofa Force Majeure
Event effecting Avista's ability to delivcr elcctric pou,er to the Easl Greenacres Unit shall not permit
East Greenacres the right to extend the term of this Agreement, nor relieve East Greenacres from its
minimum charge obligations1' provided, however, that such minimum charges shall be prorated based
on the actual number ofdays ofservice provided to Ilast Grecnacrcs. ifa Force Majeurc llvent affecting
Avista rcsults in Avista's inability to deliver electric power for a period in excess of twenty-four (24)
hours.
13. Indemnification and Hold Harmless Protection. East Greenacres shall indemnifl and save harmless
Avista from any liability, loss, or expense arising from or growing out of injury to persons, including
death, or damage to property! which may occur on the electric system of East Greenacres and on its
Page 3 of {l
side of the specified Delivery Points unless such loss is due to the negligence of Avista. Where such
claim or loss is caused by the concurrent negligence of East Creenacres, its agents or employces, and
Avista, its agents or employees, East Greenacres hereby agrees to indemnily, defbnd and save Avista
harmless from all such claims or losses to the extent that such claim or loss was caused by the
negligence of East Greenacres. its agents or employees.
14. Assignment. East Greenacres shall not (by contract, operation of law or otherwise) assign this
Agreement, or any right or interest in this Agreement, without Avista's prior written consent. No such
assignment, with or without prior consent by Avista, shall relieve East Creenacres from its
responsibilities under this Agreement, and all obligations and liabilities incuned hereunder shall be
preserved until satisfied. Subject to the foregoing restriction on assignment by East Greenacres, this
Agreement shall be fully binding upon, inure to the benetit ol, and be enforceable by the successors,
assigns and legal representatives ofthe respective Parties to this Agreement.
15. Amendment and Waiver. This Agreement contains all ofthe terms and conditions bearing upon the
subject matter and shall not be changed or varied except by written agreement executed by the Parties
hereto through duly authorized r€presentatives. Ifat any time the terms hereto are not strictly adhered
to or enforced, they shall not thereby be deemed waived or modified. but shall at all subsequent times
and dates be deemed in full force and effect.
16. Notices. Unless otherwise specified, any notice required under this Agreement shall be given in
writing, and shall be effective from the date received by the Party to which ir is provided.
16. I Notices to Avista shall be mailed or delivered to the attention of:
Avista Corporation
l4l I East Mission Avenue
Spokane, Washington 99202-1902
or
P. O. Box 3727
Spokane, Washington 99220-3 727
Attention: Manager, Transmission Services
16.2 Notices to East Greenacres shall be mailed or delivcred to the attention of:
East Greenacres Irrigation District
2722 N McGuire Rd.
Post Falls, ID 83854
Attention: Manager
A Party may change the place or address for delivery of notices to it by giving notice to the other
Party as thus described.
17. Governing Law. This Agreement shall be construed and interpreted in accordance with the laws ofthe
State of Washington. without giving effect to its principles of conflicts of law.
18. Venue. Any action at law or in equity to enlorce the terms and conditions of this Agreement shall be
brought in Spokane County, Washington.
19. Headings. The section headings inthis Agreement are for convenience only and shall not be considered
part of or used in the interpretation ofthis Agreement.
Page 4 of8
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their
duly authorized representatives on the date(s) set forth below.
AVISTA CORPORATION EAST (;REENACRES IRRI(;ATION
DISTRICT
B)':/s/ J A Schlcct Ilv /s/ lton Wilson
Jeff Schlect
Senior Manager, Transmission Services
Date: August 8'h, 20 l9
Ron Wilson
Manager
Date: November 7'l', 2019
Page 5 of 8
I ) East Greenacres Irrigation District Pumping Station #2
Location: The point at Chase Road and Hayden Avenue (Property lD # 51N05W223220) where
Avista's distribution facilities and the service transformers owned bv East Greenacres are
connected
Feeder: IDR253
Voltage: 13.2 kV
2) East Creenacres lrrigation District Pumping Station #3
Location: The point at Chase Road, one quarter mile north of Poleline Road (Property
ID # 5 1N05W287720) wherc Avista's distribution facilities and the service transformers
owned by East Greenacres are connected
Feeder: Pf-213
Voltage: 13.2 kV
Page 6 of8
Exhibit I
Points of Deliven,
Exhibit 2
Loss Calculations
Notes:
- Feeder distances are approximate, taken from Avista feeder mapping software
- Distribution line loss factors are calculated by multiplying the line distance in miles by a factor of
I .00%. All transformers, whether substation or service, have a specified 1.25 o/o loss factor.
- Service to these pumps is metered at a primary voltage. East Creenacres owns the service transformers at
these locations.
Feeder Distribution Section
Distribution
Line
Distancc
(miles)
Distribution
Line
Loss
Factor
Substation
Transformer
Loss
Factor
Total
Loss
Factor
tDI{251 Pump #2 2.0 t1 2.017 I .250 3.267
PI-2 t3 Pump #3 1.760 l.760 1.250 3.0t0
Pase 7 of tl
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Monlhh'Electric Distribution Sen ice Charso
'l-he monthly charge is Five l'housand Two Hundred Thirty-Two Dollars and Fifty-Seven Cents
($s.232.57).
The monthly Electric Distribution Scrvice charge is calculated based upon a load ratio share of Idaho
distribution lacilities costs as included in Idaho retail electric rates as of January I , 201 9 (rate test year of
January 2016 - December 1016).
Ilast Greenacres Load Ratio Share
Idaho retail l2-month average peak load (demand)
East Greenacres l2-month average peak load (demand)
East Greenacres demand ratio
568.333 kW
840 kw
0.001 476
ldaho Distribution Facilities Cost
Substation, OI I poles and conductor, [JG conduit and conductor $42.546.285
East (ireenacrcs Electric Distribution Sen ice Chargc
ldaho Distribution f acilities Cost
Ilast Greenacres demand ratio
Annual Service Charge
Month 1,," Serv ice Charge
$42.546,285
0.001476
$62.791
$s.232.57
Pasc 8 of8
Exhibit 3