20210713Application.pdf

DocuSign Envelope lD: 8E00472D-2595-4870-9994-0A35A6005D2D
For Avista Corporation
Michael G. Andrea (ISB No. 8308)
Senior Counsel
Avista Corporation
1411 East Mission, MSC-17
Spokane, WA99202
Phone: [phone]
For Stimson Lumber Company
Lisa Zentner
Purchasing Manager
Stimson Lumber Company
520 S. Yamhill, Suite 700
Portland, OP.97204
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT PETITION
OF AVISTA CORPORATION AND
STIMSON LUMBER COMPANY FOR
APPROVAL OF AMENDMENT NO. 2 TO
POWER PURCHASE AND SALE
AGREEMENT
CASE NO. AVU-E- Jt-ol
JOINT PETITION OF AVISTA
CORPORATION AND STIMSON
LUMBER COMPANY
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Avista Corporation ("Avista") and Stimson Lumber Company ("Stimson")
(collectively, the "Parties") hereby petition the Idaho Public Utilities Commission
("Commission") for an order approving Amendment No. 2 to the Power Purchase
Agreement ('oAgreement") between Avista and Stimson the Idaho Public Utilities
Commission approved the Agreement, as amended by Amendment No. l, in Order No.
34692 issued on June 15,2020. Amendment No. 2 extends the term of the Agreement
through December 31,2023 and updates the Agreement to apply the current published
avoided cost rates to all power purchases by Avista under the Agreement during the
period from January 1,2022 through December 31,2023 ("Extension Period").
Amendment No. 2 is attached hereto as Exhibit A.
Page - I JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
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Docusign Envelope lD: 8E00472D-2595-4870-9994-043546005D2D
1. Names and Addresses of Petitioners
Avista Corporation
1411 East Mission Avenue
Spokane, WA99202
Stimson Lumber Company
520 S. Yamhill, Suite 700
Portland, OR97204
2. Nature of Businesses
Avista is a corporation created and organized under the laws of the State of
Washington with its principal office in Spokane, Washington. Avista is an investor-
owned utility engaged in, among other things, the business of generating, transmitting,
and distributing electric power to wholesale and retail customers in Idaho and
Washington. Avista also provides natural gas service to customers in Idaho, Washington,
and Oregon. As such, Avista's rates, charges, services and practices are regulated, in
part, by this Commission.
Stimson is a corporation organized under the laws of the State of Oregon that
operates a thermal wood waste small power electric generation plant located at Plummer,
Idaho ("Facility"). The Facility is capable of generating up to approximately 6.5
megawatts of energy. The Facility is a Qualifuing Facility pursuant to the Public Utility
Regulatory Policies of Act of 1978 ("PURPA").
3. Names of Representatives
All communications, pleadings, and orders with respect to this proceeding should
be directed to:
For Avista Corporation:
Chris Drake
Wholesale Marketing Manager
Michael G. Andrea
Senior Counsel
Page - 2 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
DocuSign Envelope lD: 8E00472D-25954870-9994-0A35A6005D2D
Avista Corporation
1411 E. Mission Ave., MSC-7
Spokane, WA99202
Phone: [phone]
Fax: [phone]
E-mail : chris.drake@avistacorp. com
Avista Corporation
l4l1 E. Mission Ave., MSC-I7
Spokane, WA99202
Phone: [phone]
Fax: [phone]
E-mail : [e-mail]
For Stimson Lumber Company:
LisaZentner
Purchasing Manager
Stimson Lumber Company
520 S. Yamhill, Suite 700
Portland, OR97204
Phone: [phone] / Shortel Ext: 7 552
E-mail : [e-mail]
4. Description of Amendment No.2
The Agreement as amended by Amendment No. I was approved by the
Commission in Order No. 34692 issued on June 15,2020. The original Term of the
Agreement was due to expire on December 31, 2021.
The Parties have executed Amendment No. 2 to extend the term of the Agreement
for an additional two years. Specifically, the Amendment replaces Section 5.5 of the
Agreement to extend the term as follows:
The term of the Agreement shall commence on the Effective Date and shall
continue through December 31,2023, unless terminated earlier by the terms and
conditions contained herein.
Amendment No. 2 also replaces Exhibit E to the Agreement to update the avoided cost
rates that will apply during the Extension Period.
Except as expressly amended, all other terms of the Agreement remain in full
force and effect for the Extension Period.
Page - 3 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
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5. Conclusion
Avista and Stimson jointly respectfully request that the Commission issue an
order accepting Amendment No. 2 to the Agreement with an ef[ective date of January l,
2022.
Respectfully submitted this 13th day of July,202l.
AVISTA CORPORATION
w
fildl^z,Ll A,,ln t,
Senior Counsel
STIMSON LUMBER COMPAI\Y
lly:
Uw h.,,rlwt
Purchasing Manager
Page - 4 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
Docusign Envelope lD: 2AEEE79A-EF7B-461 7-9C33-FAA9ilEOC225
AMENDMENT NO.2
This AMENDMENT NO. 2 ("Amendment No. 2")to the Power Purchase Agreonent
("Agreement") between Avista Corporation ("Avista") and the Stimson Lumber Company
("Project Developer"), is entered into by the Parties and this Amendment No. 2 shall be effective
on January 1,2022.
RECITALS
WHEREAS, the Parties entered into the Agreonent on December 23,2019, under which
Project Developer is to deliver and sell, and Avista is to purchase, electric energy generated from
Seller's Facility; and
WHEREAS, the Idaho Public Utilities Commission approved the Agreement, as amended
by Amendment No. 1, in Order No. 34692 issued on June 15,2020.
WHEREAS, Project Developer has requested to amend the Agreernent to extend the term
of the Agreement through December 31,2023.
NOW THEREFORE, it is agreed as follows:
AGREEMENT TO AMEND
l. Section 5.5 of the Agreement is deleted in its entirety and replaced with the
following
5.5 The term of the Agreernent shall commence on the Effective Date and
shall continue through December 31,2023, unless terminated earlier by the terms and
conditions contained herein.
2. Exhibit E is deleted in its entirety and replaced with the Second Amended Exhibit
E attached hereto as Attachment 1.
3. Except as expressly amended by the provisions set forth in this Amendment No.
2, all of the terms and conditions of the Agreonent, as amended by Amendment No. l, shall
remain in full force and effect following execution of this Amendment No. 2 and each Party
confirms, ratifies and approves the Agreement as amended by this Amendment No. 2. All
capitalized terms used herein and not otherwise defined shall have the respective meanings given
to such terms in the Agreement. For the avoidance of doubt, this Amendment No. 2 is hereby
incorporated in the Agreement and, as of the effective date of this Amendment No. 2, all
references to the Agreernent shall be deemed to be references to the Agreement as amended by
this Amendment No. 2.
4. This Amendment No. 2 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.
Page - I AMENDMENT NO. 2 TO POWER PURCHASE AGREEMENT BETWEEN
AVISTA CORPORATION AND STIMSON LUMBER COMPANY
Docusign Envelope lD: 2A8E679A-EF/8.461 7-9C3+FA490466C225
IN WITNESS WHEREOF, each Party has caused this Amendment No. 2 to be
executed by its duly authorized representatives as of the date first set forth below.
STIMSON LTIMBER COMPAIIY AVISTA CORPORATION
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By:By:dt
Printed Name: Li sa zentner printedName: Scott rinney
Title: Director of eurchasing Title: Di rector Energy supply
Date: rul-13-2021 | 12:07 PM PDT Date: rul-13-2021 I 11:58 Ar'4 PDT
Page - 2 AMENDMENT NO. 2 TO POWER PURCHASE AGREEMENT BETWEEN
AVISTA CORPORATION AND STIMSON LUMBER COMPANY
Docusign Envelope lD: 2ABEE79A-8F7 Ep,617 -9C33-FAA904E6C225
ATTACHMENT 1
SECOND AMENDED EXHIBIT E
DocuSUn Envelope lD: 2AEEE79A-EFIU617 -9C33-FAA9O4EOC225
Second Amended Exhibit E
Purchase Pricesl
1 Rates from IPUC - Avista Rates Renewal Contracts 6-7-2021, Avoided Cost Rates for Non-Fueled Projects, Non-
Levelized Rates, Resource: Other.
Period Heaw Load Hours Lisht Load Hours
2022 Jan-Feb $53.6s $48.2s
2022Mar-Julrt $41.72 $37.s2
2022 Jul-Dec $s3.6s $48.25
2023 Jan-Feb $s2.94 $47.s4
2023 Mar-Jun $41.18 $36.98
2023 Jul-Dec $s2.94 $47.s4