20240202Compliance Filing.pdf

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

February 2, 2024

Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A
Boise, Idaho 83714

RE: AVU-E-23-15 – Amendment No. 4 to Power Purchase Agreement between Avista
Corporation and Clearwater Paper Corporation

Included for filing with the Commission is the electronic copy of Avista Corporation and Clearwater
Paper Corporation’s Amendment No. 4 to the Power Purchase and Sale Agreement.

Should you have any questions regarding this filing, please do not hesitate to call Michael Andrea at
[phone]. Thank you in advance for your assistance.

Sincerely,

/s/ Paul Kimball

Paul Kimball
Mgr. of Compliance & Discovery

Enclosures

RECEIVED
Friday, February 2, 2024 2:01PM
IDAHO PUBLIC
UTILITIES COMMISSION
AMENDMENT NO. 4 TO POWER PURCHASE AND SALE AGREEMENT BETWEEN
AVISTA CORPORATION AND CLEARWATER PAPER CORPORATION
Page 1 of 3
AMENDMENT NO. 4
This Amendment No. 4 (“Amendment No. 4”) dated February 2nd, 2024 to the Power
Purchase and Sale Agreement (“Agreement”), is entered into by and between Avista Corporation
(“Avista”) and Clearwater Paper Corporation (“Clearwater”). Avista and Clearwater are
sometimes referred to individually as a “Party” and collectively as the “Parties.”
RECITALS
WHEREAS, in 2018, the Parties entered into the Agreement and the Agreement was filed
with the Commission for approval on November 29, 2018;
WHEREAS, the Commission approved the Agreement in Order No. 34252;
WHEREAS, upon issuance of Commission Order No. 34252, the Agreement became
effective on February 27, 2019, and was to expire by its terms on December 31, 2023;
WHEREAS, on October 2, 2023, the Parties entered into Amendment No. 1 to amend the
Agreement to extend the Term for three additional years;
WHEREAS, on November 26, 2023, the Parties entered into Amendment No. 2 to (i)
correct references to Amendment No. 1 to the REC Agreement, (ii) update Exhibit F to the
Agreement with Revised Exhibit F that includes Amendment Nos. 1 and 2 to the REC
Agreement, and (iii) update and corrects the definition of “REC Agreement”; and
WHEREAS, on December 29, 2023, the Commission issued Order No. 36046 extending
the Agreement through December 31, 2026 subject to further compliance filing;
WHEREAS, on January 19, 2024, the Parties entered into Amendment No. 3 to comply
with Order No. 36046;
WHEREAS, the Parties now desire to submit this Amendment No. 4 to correct Revised
Exhibit B to the Agreement, which is attached to Amendment No. 3.
NOW THEREFORE, it is agreed as follows:
AGREEMENT TO AMEND
1. The sections of Revised Exhibit B entitled “Power Purchase Payment Rate” and
“Schedule 25P Rates Pursuant to Section 7 of the Agreement”, including footnotes 1 and 2, are
deleted and replaced in their entirety with the following sections:
Power Purchase Payment Rate
As provided in Section 7 of this Agreement, Avista agrees to buy the amount of energy equal
to the Delivered Net Output at the Schedule 25P Block 2 PURPA rate, which is the Schedule

AMENDMENT NO. 4 TO POWER PURCHASE AND SALE AGREEMENT BETWEEN
AVISTA CORPORATION AND CLEARWATER PAPER CORPORATION
Page 2 of 3
25P Block 2 Generation Load rate less the gross up for revenue related expenses associated
with Commission Fees), as may be amended and approved by the Commission from time-
to-time, which is currently $36.17 per MWh.

Schedule 25P Rates Pursuant to Section 7 of the Agreement

The Parties have agreed that Clearwater will be subject to Schedule 25P base rates as follows1:
• The first 3,000 kVA would continue to be covered under a monthly flat rate
of $16,000 per month.
• The next 52,000 kVA would be billed at the current 1st Block volumetric demand
rate of
$5.75 per kVA, and all remaining kVA would be billed at the current 2nd Block
volumetric demand rate of $3.00 per kVA. The calculation of demand is
provided in Exhibit D.
• The retail energy rate that captures Clearwater’s load at the retail meter will be
priced at the existing Schedule 25P energy rate. That rate is now described as
Block 1 Net Retail Load.

The above three bullets maintain the status quo from a billing perspective between
the present Electric Service Agreement and this new Power Purchase and Sales
Agreement.

• Under the terms of this Agreement, Avista has revised Schedule 25P to include
a new energy block - Block 2 Generation Load - for the sole purpose of capturing
Clearwater’s generation load measured at the generation meter. The Block 2
Generation Load rate (less the gross up for revenue related expenses associated
with Commission Fees) will capture Clearwater's generation load at the
generation meter priced at the PURPA contract rate of $0.03617 per kWh.2 The
Block 2 Generation Load rate ensures that the price of energy sold to Clearwater
is equal to the price paid for the energy delivered to Avista by Clearwater.

Clearwater and Avista understand that demand and energy rates may change from time to
time during the term of the Agreement as approved by the Commission. Pages 1-2 of
Exhibit B to the Agreement is the draft form of Schedule 25P that would be filed with the
Commission prior to the Effective Date of the Agreement.

1 Base rates refer to the prices detailed on Schedule 25P which recover the Company's costs related to generation,
transmission, distribution and common costs. Base rates do not include other tariffs, such as Schedule 66 (Power
Cost Adjustment), Schedule 91 (Energy Efficiency Rider Adjustment), or any other tariffs that are added to, or
subtracted from, base rates for purposes of developing overall billing rates.
2 The Block 2 Generation Load rate (less the gross up for revenue related expenses associated with Commission
Fees) of $0.03617 per kWh includes both energy and demand related costs associated with serving Clearwater's
generation load.

2. Except as expressly amended by the provisions set forth in this Amendment No.
4, all of the terms and conditions of the Agreement shall remain in full force and effect following

AMENDMENT NO. 4 TO POWER PURCHASE AND SALE AGREEMENT BETWEEN
AVISTA CORPORATION AND CLEARWATER PAPER CORPORATION
Page 3 of 3
execution of this Amendment No. 4 and each Party confirms, ratifies and approves the
Agreement as amended. All capitalized terms used herein and not otherwise defined shall have
the respective meanings given to such terms in the Agreement. As of the effective date of
Amendment No. 4, this Amendment No. 4 is hereby incorporated in and made part of the
Agreement.

3. This Amendment No. 4 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, the Parties have caused this Amendment to be executed by
their duly authorized representatives as of the date first set forth above.

AVISTA CORPORATION CLEARWATER PAPER CORPORATION

Jamie McDonald
Vice President of Procurement
Kevin Holland
Director of Energy Supply