20210111Application.pdf

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Avista Corp.
1411 EastMission P.O. Box3727
Spokane. Washington 99220 -050f,.
Telephone [phone]
Toll Free 800-727-9170
January LI,202L
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&)JanNoriyuki, Secretary
Idaho Public Utilities Commission
I 1331 W. Chinden Blvd. Bldg. 8, Ste. 201-A
Boise,Idaho 83714
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RE: Case No. AVU-E-21- 02-
DearMs. Noriyuki:
Attached for filing with the Commission is Avista Corporation's, doing business as AvistaUtilities', application requesting that the Commission approve Amendment No. 2 to the Service
Territory Agreement between Avista and Kootenai Electric Cooperative, Inc.
Please direct any questions regarding ttris filing to Michael Andrea at 509-495-2564.
Sincerely,
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PaulKimball
Managerof Compliance & Discovery
Avista Utilities
509-495-4584
p aul. kimb all@ avistacom. com
Enclosure
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Michael G. Andrea (ISB No. 8308)
SeniorCounsel
Avista Corporation
141 1 East Mission, MSC-I 7
Spokane, WA99202
Phone: [phone]&
Facsimile: (509) 7 77 -5468
Email : michael. an dr ea@?v istacorp. com
Attorney for Avista Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF THE APPLICATTON
OF AVISTA CORPORATION FOR AN ORDER
APPROVING THE EXTENSION OF A SERVICE
TERRITORY AGREEMENT BETWEEN AVISTA
AND KOOTENAI ELECTRIC COOPERATryE
CASE NO. AVU-E-21-A2-
APPLICATION OF AVISTA
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I.INTRODUCTION
Avista Corporation doing business as Avista Utilities (hereinafter Avista or Company),
at I4Il East Mission Avenue, Spokane, Washingon, respectfully requests that the
Commission approve theenclosedAmendmentNo. 2 ("Amendmenf') to the Service Tenitory
Agreement between Avista and Kootenai Electric Cooperative, [nc. (hereinafter referred to as
KEC), sometimes hereinafter referred to individually, as a "Partyr", and collectively, as the
"Parties". The Amendment is attached hereto as Exhibit 1.
On March 21,2001, the Commission issued Order No.28681 approving a Service
Territory Agreement between Avisia and KEC. In the Agreement, the Parties agreed that the
electric service to an entire residential development and subsequent additions to such
development shallbe determined by which electric supplier serves at least one of the lots in
the subdivision pursuant to the provisions of the Idaho Electric Supplier Stabilization Act,
1 Idaho Code Section 6l-332C. The Agreement also provides that it shall initially run for a
2 peiod of 1 0 years but shall be automatically extended for successive periods of ten (1 0) yeas
3 upon the same terms and conditions as set forlh in this Agreement unless one of the Parties
4 elects to terminate the Agreement.
5 Either Party may terminate the Agreement by notifyingthe other not less than sixty
6 (60) daysbeforethe end of the initial, or renewalterm of its intentnot to renew the Agreement
7 As approved by the Commission in OrderNo. 28681, the Agreement, unless extended, was set
8 to expire February 15,2011.
g OnJanuary 3l,2}ll,AvistafiledaletteradvisingtheCommissionthatneitherAvista
10 nor KEC notified each other regarding their intent to terminate the Agreement. Consequenty,
11 the letter stated that the Agreement has been extended for another ten-year term, or until
12 February l5,2}2L Forpurposes of updatingthe administrative record in CaseNo. AVU-E-
1 3 0 1 -02, the Commission issued a Minute Order on February 24, 20Il .
14 The current term of the Agreement is due to expire on February t5 ,2021. Avista and
15 KEC have been negotiating a new service territory agreement to replace the Agreement. To
16 date, the Parties have not been able to reach agreement on all of the terms of a new service
17 territory agreement. To provide additional time to complete the negotiations on a new service
l8 territory agreement without committing to another l0-year term, the Parties have agreed to
19 amend the Agreementto renew for successive l2-month terms.
Application of Avista Corporation 2
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The Company requests that this filing be processed under the Commission's Modified
Procedure rules.
Communications in reference to this Application should b e addressed to :J
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MichaelAndrea
SeniorCounsel
Avista Corporationl4ll E. Mission Avenue
Spokane, Washington 99220
Phone: [phone]
Michael. andrea@avistacorp. com
Patrick Ehrbar
Director o f Regulatory Affairs
Avista Corporation
141 1 E. Mission Avenue
Spokane, Washington 99220
Phone: [phone]
Pat. [e-mail]
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II. PROPOSED AGREEMENT
Beginning n mid-2020, Avista and KEC began discussions on the terms of a new
service territory agreement. Those conversations have been robust, but are not yet compleb,
as a number of issues remain that Avista and KEC would like to resolve. Absent either
termination of or an amendment to the Agreement, the Agreement would automatically renew
onFebruary l5,2Wl foranew l0-yearterm. ToavoidbeinglockedintoanewlO-yeartern,
Avista provided notice of its intent not to renew on Decemb er 15,2020.
Subsequenfly, the Parties agreed to amend the Agreement to allow the Agreementto
renew for successive 1 2 -month terms instead of I 0-yearterms. If the Amendment is approvd
theAgreementwill remainineffectforanew l2-monthterm,whichshouldprovidethepanies
time to complete theirnegotiations and finalize a new Service Territory Agreement to replace
the Agreement.
JApplication of Avista Corporation
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IIr. REQUEST FOR APPROVAL
For the reasons stated hereir:, Avista respectfullyrequests approval of the Amendment
so thatAvista and KEC can continue to operate in a mannerconsistentwiththe current Service
Territory Agreement and at the same time continue discussions on the terms of a new Servbe
Territory Agreement.
Dated at Spokane, Washington this l lth dayofJanuary 202L
AVISTA CORPORATION
BY /s/ Michael
MchaelAndrea
SeniorCounsel
Avista Corporation
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4Application of Avista C-orporation
AMENDMENT NO.2
To Service Territory Agreement
This AMENDMENT NO. 2 ("Amendment") to the Service Territory Agreement:
Agreement for Administering Residential Developments (as amended, the "agreement"), dated
December _,2020, is entered into by and between Avista Corporation ("Avista") and
Kootenai Elechic Cooperative ("KEC"). Avista and KEC are sometimes referred to individually
as a "Part5/" and collectively as the "Parties."
RECITALS
WHEREAS, on February 15,199I, the Parties entered into a Service Territory
Agreement: Agreement for Administering Residential Developments;
WHEREAS, on December 26,2002, the Parties entered into Amendment No. I to the
agreement;
WHEREAS, the agreement was for a duration or term of ten (10) years and, unless
otherwise terminated in accordance with its terms, automatically renewed for successive ten-year
terms.
WHEREAS, the Parties desire to enter into this Amendment to revise the term of the
agreement as set forth herein:
NOW TI{EREFORE, it is agreed as follows:
AGREEMENT TO AMENI)
l. Section 3 of the agreement sets forth the terms for automatically renewing the
term. The Parties agrce to amend the agreement by deleting Section 3 of the agreement in its
entirety and replacing it with the following:
Section 3-Renewal:
The duration of this agreement shall be extended automatically for successive periods of
one (l) year upon the same terms and conditions set forth in this agreement, unless one of
the parties notifies the other, not less than sixty (60) days before the end of the then-
current renewal term of the intent not to renew the agreement.
2. Except as expressly amended by the provisions set forth in this Amendment, all of
the terms and conditions of the agreement shall remain in full force and effect following
execution of this Amendment and each Party confirms, ratifies and approves the agreement as
amended by this Amendment. For the avoidance of doubt, this Amendment is hereby
incorporated in the agreement and all references to the agreement shall be deemed to be
references to the agreement as amended, including as the agreement is amended by this
Amendment.
Page - I AMENDMENT NO. 2 TO SERVICE TERRITORY AGREEMENT BETWEEN
AVISTA CORPORATION AND KOOTENAI ELECTRIC COOPERATIVE
3. This Amendment may be executed in two (2) or more counterparts, each of which
shall be deemed as an original and together shall constitute one and the same document.
IN WITNESS WIIEREOF, the Parties have caused this Amendment to be executed by
their duly authorized representatives as of the date first set forth above.
AVISTA CORPORATION KOOTENAI ELECTRIC
COOPERATIVE
/an ia D. r{,U ct.tl!,*s
By:By:
printedName: Latisha D. Hill PrintedName:
Douglas A. Elliott
Title: VP Community & Economic Vitality Title: General Manager ICEO
Page - 2 AMENDMENT NO. 2 TO SERVICE TERRITORY AGREEMENT BETWEEN
AVISTA CORPORATION AND KOOTENAI ELECTRIC COOPERATIVE