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Home My WebLink About20230921Application.pdf Avista Corp. 1411 East Mission, P.O. Box 3727 Spokane, Washington 99220-0500 Telephone 509-489-0500 Toll Free 800-727-9170 Jan Noriyuki, Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd Building 8, Suite 201-A Boise, ID 83714 RE: Avista – Petition and Amendment No. 3 to the Stimson Lumber Company PPA Dear Ms. Noriyuki: Enclosed for filing with the Commission is an electronic copy of the Joint Petition of Avista and Stimson Lumber Company for approval of Amendment No. 3 to the power purchase and sale agreement. Amendment No. 3 extends the term of the Agreement through December 31, 2025 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, 2024 through December 31. 2025. Please direct any questions regarding this report to Michael Andrea at (509) 495-2564 or myself at 509-495-4584. Sincerely, /s/Paul Kimball Paul Kimball Manager of Compliance & Discovery Avista Utilities 509-495-4584 paul.kimball@avistacorp.com Enclosure RECEIVED Thursday, September 21, 2023 2:12:29 PM IDAHO PUBLIC UTILITIES COMMISSION CASE NO. AVU-E-23-14 For Avista Corporation Michael G. Andrea (ISB No. 8308) Senior Counsel Avista Corporation 14 1 I East Mission. MSC-I 7 Spokane. WA 99202 Phone: (509) 495-2564 For Stimson Lumber Company Lisa Zentner Director of Purchasing 9400 SW Barnes Rd, Suite 530 Portland OR 97225 (503) 4 78-1552 BEFORE THE IDAHO PUBLJC UTILITIES COMMISSION IN THE MATTER OF TI-IE JOINT PETITION ) OF AVISTA CORPORATION AND ) STIMSON LUMBER COMPANY FOR ) APPROVAL OF AMENDMENT NO. 3 TO ) POWER PURCHASE AND SALE ) AGREEMENT ) _______________ ) CASE NO. A VU-E- JOINT PETITION OF A VISTA CORPORATION AND STIMSON LUMBER COMPANY Avista Corporation ('·Avista'') and Stimson Lumber Company ("Stimson"') (co llectively. the "Pa11ies") hereby petition the Idaho Public Utilities Commission ("Commission'') for an order approving Amendment No. 3 to the Power Purchase Agreement (" Agreement'') between Avista and Stimson.1 Amendment No. 3 extends the term of the Agreement through December 31. 2025 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 I, 2024 through December 3 1. 2025. Amendment No. 3 is attached hereto as Exhibit A. 1 The Agreement, as amended by Amendment No. I, was originally approved by the Commission in Order No. 34692 issued in Case No. A VU-E-19-16. The Commission approved Amendment No. 2 in Order No. 35245 issued in Case No. A VU-E-21-07. Page -I JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER COMPANY I. Names and Addresses of Petitioners Avista Corporation 141 l East Mission Avenue Spokane, WA 99202 Stimson Lumber Company 9400 SW Barnes Rd., Suite 530 Portland, OR 97225 2. Nature of Businesses A vista 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 Qualifying Facility pursuant to the Publ ic Uti lity 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 Counse l Page -2 JO INT PETITION OF AVISTA CORPORATION AND STLMSON LUMBER COMPANY Avista Corporation 1411 E. Mission Ave., MSC-7 Spokane. WA 99202 Phone: (509) 495-8624 Fax: (509) 777-5242 E-mail: chris.drake@avistacorp.com For Stimson Lumber Company: Lisa Zentner Purchasing Manager Stimson Lumber Company 9400 SW Barnes Rd., Suite 530 Portland, OR 97225 (503) 4 78-1552 E-mail: lzentner@stimsonlumber.com 4. Description of Amendment No. 3 Avista Corporation 1411 E. Mission Ave., MSC-1 7 Spokane. WA 99202 Phone: (509) 495-2564 Fax: (509) 777-5468 E-mail: michael.andrea@avistacorp.com The original Agreement, as amended by Amendment No. I, was to expire by its terms on December 3 1,202 l. In Amendment No. 2 to the Agreement, the parties extended the Agreement through December 3 1, 2023. Stimson has requested to further extend the Agreement through December 3 1. 2025. Pursuant to Stimson• s request, the Parties have executed Amendment No. 3 to the Agreement. Amendment No. 3 extends Lhe term of the Agreement through December 31 , 2025. and updates the avo ided cost rates to add the rates that will apply during the period from January I, 2024 through December 31 . 2025. Except as expressly amended. all other terms of the Agreement remain in full force and effect. 5. Conclusion Avista and Stimson jointly respectfully request that the Commission issue an order accepting Amendment No. 3 to the Agreement with an effective date of January I. 2024. Respectfull y submitted this ~th day of September , 2023. Page -3 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER COMPANY AVISTA CORPORATION y-d2/)f 0 Michael G. Andrea Senior Counsel STIMSON LUMBER COMP ANY Lisa Zentner Director of Purchasing Page -4 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER COMPANY Page - 1 AMENDMENT NO. 3 TO POWER PURCHASE AGREEMENT BETWEEN AVISTA CORPORATION AND STIMSON LUMBER COMPANY AMENDMENT NO. 3 This AMENDMENT NO. 3 (“Amendment No. 3”) to the Power Purchase Agreement (“Agreement”) between Avista Corporation (“Avista”) and the Stimson Lumber Company (“Project Developer”), is entered into by the Parties and this Amendment No. 3 shall be effective on January 1, 2024. RECITALS WHEREAS, the Parties entered into the Agreement 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, the Idaho Public Utilities Commission approved the Agreement, as amended by Amendment No. 2, in Order No. 35245 issued on December 7, 2021. WHEREAS, Project Developer has requested to amend the Agreement to extend the term of the Agreement through December 31, 2025. NOW THEREFORE, it is agreed as follows: AGREEMENT TO AMEND 1. Section 5.5 of the Agreement is deleted in its entirety and replaced with the following: 5.5 The term of the Agreement shall commence on the Effective Date and shall continue through December 31, 2025, unless terminated earlier by the terms and conditions contained herein. 2. Exhibit E is deleted in its entirety and replaced with the Third Amended Exhibit E attached hereto as Attachment 1. 3. Except as expressly amended by the provisions set forth in this Amendment No. 3, all of the terms and conditions of the Agreement, as amended by Amendment No. 1 and Amendment No. 2, shall remain in full force and effect following execution of this Amendment No. 3 and each Party confirms, ratifies and approves the Agreement as amended by this Amendment No. 3. 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. 3 is hereby incorporated in the Agreement and, as of the effective date of this Amendment No. 3, all references to the Agreement shall be deemed to be references to the Agreement as amended by this Amendment No. 3. Page - 2 AMENDMENT NO. 3 TO POWER PURCHASE AGREEMENT BETWEEN AVISTA CORPORATION AND STIMSON LUMBER COMPANY 4. This Amendment No. 3 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 WHEREOF, each Party has caused this Amendment No. 3 to be executed by its duly authorized representatives as of the date first set forth below. STIMSON LUMBER COMPANY By: ____________________________ Printed Name: ___________________ Title: __________________________ Date: __________________________ AVISTA CORPORATION By: ____________________________ Printed Name: ___________________ Title: __________________________ Date: __________________________ ATTACHMENT 1 THIRD AMENDED EXHIBIT E Second Amended Exhibit E Purchase Prices1 Perio Heav Load Hours Li ht Load Hours 2024 Jan-Feb $62.81 $57.41 2024 Ma -Jun $48.85 $44.65 2024 Jul-Dec $62.81 $57.41 2025 Jan-Feb $59.50 $54.10 2025 Ma -Jun $46.28 $42.08 2025 Jul-Dec $59.50 $54.10 1 Rates from IPUC ‐ Avista Rates Renewal Contracts 6‐1‐2023, Avoided Cost Rates for Non‐Fueled Projects, Non‐ Levelized Rates, Resource: Other.