20200131Notice_of_Petition_Order_No_34538.pdf

Office of the Secretary
Service Date
January 31,2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT PETITION )CASE NO.AVU-E-19-16
OF AVISTA CORPORATION AND STIMSON )LUMBER COMPANY FOR APPROVAL OF )NOTICE OF PETITION
POWER PURCHASE AND SALE )AGREEMENT )NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34538
On December 31,2019,Avista Corporation ("Avista"or "Company")filed a Joint
Petition ("Petition")seeking approval of a proposed Power Purchase Agreement ("Agreement")
with Stimson Lumber Company ("Stimson"or "Seller")for the energy generated by a thermal
wood waste small power electric generation plant operated by Stimson in Plummer,Idaho
("Facility").The Facility is a qualifying facility ("QF")under the Public Utility Regulatory
Policies Act of 1978 ("PURPA").
The Commission now issues this Notice of Petition,Notice of Modified Procedure and
Order setting comment and reply deadlines.
NOTICE OF PETITION
YOU ARE HEREBY NOTIFIED that under the proposed Agreement,Stimson would
sell the electric energy generated by the Facility to the Company at the rates based in the On-Peak
or Off-Peak Avoided Cost Rates for Non-Fueled Projects Smaller than Ten Average Megawatts
per month-Non-Levelized for a one year term.Petition at 3.
YOU ARE FURTHER NOTIFIED that the Facility operated by Stimson "is capable of
generatingup to approximately 6.5 megawatts of energy."Id at 2.
YOU ARE FURTHER NOTIFIED that the proposed Agreementreplaces a prior power
purchase agreement which was approvedby the Commission in Order No.30224 on January 19,
2007.Id.at 3,footnote 1.The original term of the previous agreement was five years,expiring on
September 30,2011.Id.The previous agreement was amended to extend its term through
December 31,2019.Id.
YOU ARE FURTHER NOTIFIED that the Company states that if the proposed
Agreement is approved by the Commission prior to February 21,2020,Avista requests that the
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34538 1
term commence on January 1,2020,and extend for a term of one year followingthis requested
effective date.Id.
YOU ARE FURTHER NOTIFIED that to provide for the continuous operation of the
Facility,the Agreement allows Stimson to deliver energy from the Facility to Avista and for Avista
to pay Stimson for such energy deliveries,requested by the Company to be effective January 1,
2020.1 Id.at 4.The Company asserts that to allow for the continuous operation of the Facility,
the Agreement allows Stimson to deliver energy from the Facility to Avista and for Avista to pay
Stimson for such energy deliveries effective January 1,2020.Id.
YOU ARE FURTHER NOTIFIED Avista represents that in the event the Commission
does not approve the Agreement by February 21,2020,or approves it subject to conditions
unacceptable to the parties,the Agreement will terminate.In such event,Stimson shall refund
certain amounts to Avista pursuant to Section 5.4 of the proposed Agreement.Id.
YOU ARE FURTHER NOTIFIED that the Agreement is conditioned upon the
approval and determination by the Commission that the prices to be paid for electric power are
just and reasonable,in the public interest,and that the costs incurred by Avista for purchases of
electric power from Stimson are legitimate expenses.Agreement at p.8,§5.2.
YOU ARE FURTHER NOTIFIED that the Petition is available for public inspection
during regular business hours at the Commission's office.These documents are also available on
the Commission's web site at www.puc.idaho.gov.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 jurisdictionunder Title 61 of the Idaho Code and specifically Idaho
Code §§61-501,61-502 and 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED 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
i Section 5.1 of the proposed Agreement provides the Agreement shall be effectiveon January 1,2020,or such other
date as ordered by the Commission.Agreement at p.8,§5.1.
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34538 2
Procedure pursuant to Rules 201 through 204 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 because this is a renewal contract,the parties
to the case are well-versed in the subject matter of the proposed Agreement and previous
agreement.The Company requests a Commission decision approving,rejecting or modifyingthe
proposed Agreementby February 21,2020.Therefore,the Commission finds good cause to allow
for shortened written comment periods.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Petition may file a written comment in support or opposition with the Commission by no later than
February 7,2020.The written comment must contain a statement of reasons supportingit.Persons
desiring a hearing must specifically request a hearing in their written comments.Written
comments concerning this Petition shall be mailed to the Commission and the Company at the
addresses reflected below:
For the Idaho Public Utilities For Avista Corporation:
Commission:
Commission Secretary Kevin Holland
Idaho Public Utilities Commission Wholesale Marketing Manager
P.O.Box 83720 Avista Corporation
Boise,ID 83720-0074 1411 E.Mission Avenue,MSC-7
Spokane,Washington 99202
Street Address for Express Mail:E-Mail:kevin.holland avistacorp.com
11331 W.Chinden Blvd.,Michael G.AndreaBuilding8,Suite 201-A Senior Counsel
Boise,ID 83714 1411 E.Mission Avenue,MSC-17
Spokane,Washington 99202
E-Mail:michael.andrea avistacorp.com
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34538 3
For Stimson Lumber Company:
Lisa Zentner
Director of Purchasing
Stimson Lumber Company
520 S.W.Yamhill,Suite 700
Portland,Oregon 97204
Email:Izentner stimsonlumber.com
Daniel McFall
COO/CFO
Stimson Lumber Company
520 S.W.Yamhill,Suite 700
Portland,Oregon 97204
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 www.puc.idal>o 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 Company shall file reply comments,if
necessary,by no later than February 14,2020.
YOU ARE FURTHER NOTIFIED 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 a formal hearing.
ORDER
IT IS HEREBY ORDERED that the Petition of the Company 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 7,2020.The Company may file reply comments by no later
than February 14,2020.
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34538 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this day of
January 2020.
PÅÛL KJE A R,PRESIDENT
ElÉC ANIIERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
I:\LeganELECTRIC\AVU-E-19-16\orders\AVUE1916_NtcofPtn jrh.docx
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34538 5