20240122Amendment No. 5 Letter.pdf

Avista Corp.
1411 East Mission, P.O. Box 3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170

January 22, 2024

Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8, Suite 201-A
Boise, ID 83714

RE: Avista – Amendment No. 5 to the Stimson Lumber Company PPA
Case No. AVU-E-23-14

On December 8, 2023, the Commission issued Order No. 36019 in the above-referenced
matter. In Order No. 36019, the Commission approved Amendment No. 3 to the Power Purchase
Agreement (“Agreement”) between Avista Corporation (“Avista”) and Stimson Lumber Company
(“Stimson”), subject to a further compliance filing.

On December 20, 2023, Avista submitted Amendment No. 4 to the Agreement as its
compliance filing. In accordance with Order No. 36019, Amendment No. 4 (1) added new Section
9.9 to the Agreement to address potential modifications to the Facility in accordance with Order
No. 35705, (2) modified Section 24 of the Agreement to reflect the significance of Commission
approval, and (3) replaced Exhibit E to the Agreement to update the avoided cost rates.
Amendment No. 4 also updated Section 31 to the Agreement so that Stimson would only be
required to pay the use-of-facilities charge required by that section during months that its Facility
actually produces power.

Staff indicated that the language in Amendment No. 4 to address potential modifications
to the Facility should be further revised. Amendment No. 5 includes revised language developed
in consultation with Staff to address potential modifications to the Facility. Staff further indicated
that the revisions to Section 31 to the Agreement dare not properly submitted in Avista’s
compliance filing. Accordingly, Amendment No. 5 deletes the new language that was proposed
in Amendment No. 4 that would have relieved Stimson of the requirement to pay the use-of-
facilities charge required by that section during months that its Facility did not produce any power.

RECEIVED
Monday, January 22, 2024 3:21:25 PM
IDAHO PUBLIC
UTILITIES COMMISSION

2 | P a g e

Please direct any questions regarding this report to Michael Andrea at [phone] or
myself at 509-495-4584.

Sincerely,

/s/Paul Kimball

Paul Kimball
Manager of Compliance & Discovery
Avista Utilities
509-495-4584
[e-mail]

Enclosure