20240206Joint Petition.pdf

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

February 6, 2024

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

RE: In the Matter of the Joint Petition of Avista Corporation and Stimson Lumber Company
for Approval of Amendment 6 to the Power Purchase and Sale Agreement.
Case No. AVU-E-24-

Avista and Stimson hereby petition the Idaho Public Utilities Commission for an order
approving Amendment No. 6 to the Power Purchase Agreement between Avista and Stimson.
Amendment No. 6 recognizes that during the period from January 1, 2024 through December 31,
2025, Project Developer anticipates there will be extended periods of time where the Facility will
not operate.

Avista and Stimson jointly respectfully request that the Commission issue an order
accepting Amendment No. 6 to the Agreement with an effective date of February 2, 2024.

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
RECEIVED
Tuesday, February 6, 2024 3:06PM
IDAHO PUBLIC
UTILITIES COMMISSION
CASE NO. AVU-E-24-03
Page - 1 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
For Avista Corporation
Michael G. Andrea (ISB No. 8308)
Senior Counsel
Avista Corporation
1411 East Mission, MSC-17
Spokane, WA 99202
Phone: [phone]
For Stimson Lumber Company
Lisa Zentner
Purchasing Manager
Stimson Lumber Company
9400 SW Barnes Rd., Suite 530
Portland, OR 97225
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. 6 TO
POWER PURCHASE AND SALE
AGREEMENT
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CASE NO. AVU-E-
JOINT PETITION OF AVISTA
CORPORATION AND STIMSON
LUMBER COMPANY
Avista Corporation (“Avista”) and Stimson Lumber Company (“Stimson” or
“Project Developer”) (collectively, the “Parties”) hereby petition the Idaho Public
Utilities Commission (“Commission”) for an order approving Amendment No. 6 to the
Power Purchase Agreement (“Agreement”) between Avista and Stimson.1 Amendment
No. 6 recognizes that during the period from January 1, 2024 through December 31,
2025, Project Developer anticipates there will be extended periods of time where the
Facility will not operate. Project Developer has requested, and Avista agrees,
1 The Agreement, as amended by Amendment No. 1, was originally approved by the Commission in Order
No. 34692 issued in Case No. AVU-E-19-16. The Commission approved Amendment No. 2 in Order No.
35245 issued in Case No. AVU-E-21-07. The Commission approved Amendment Nos. 3-5 in Case No.
AVU-E-23-13.

Page - 2 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
that, given the potential that Project Developer’s Facility will not operate for extended
periods of time, Project Developer shall only be required to pay the use-of-facilities
charge required in Section 31 of the Agreement for those months in which Project
Developer operates its Facility and shall not be billed for or required to pay that use-of-
facilities charge for any month in which the Facility is not operated. Amendment No. 6 is
attached hereto as Attachment A.
1. Names and Addresses of Petitioners
Avista Corporation
1411 East Mission Avenue
Spokane, WA 99202

Stimson Lumber Company
9400 SW Barnes Rd., Suite 530
Portland, OR 97225

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

Page - 3 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
megawatts of energy. The Facility is a Qualifying 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
Avista Corporation
1411 E. Mission Ave., MSC-7
Spokane, WA 99202
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]

For Stimson Lumber Company:

Lisa Zentner
Purchasing Manager
Stimson Lumber Company
9400 SW Barnes Rd., Suite 530
Portland, OR 97225
Phone: [phone] / Shortel Ext: 7552
E-mail: [e-mail]

Michael G. Andrea
Senior Counsel
Avista Corporation
1411 E. Mission Ave., MSC-17
Spokane, WA 99202
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]

4. Description of Amendment No. 6
In Amendment No. 3 to the Agreement, which was subsequently further amended
by Amendment Nos. 4 and 5, the Parties extended the term of the Agreement through
December 31, 2025. Stimson has informed Avista that during the period from January 1,
2024 through December 31, 2025, Stimson anticipates there will be extended periods of
time where its Facility will not operate. Stimson has requested that during extended
periods where its Facility does not operate that it not be required to pay the use-of-
Page - 4 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
facilities charge that would otherwise be required pursuant to Section 31 of the
Agreement.
Pursuant to Stimson’s request, the Parties have executed Amendment No. 6 to the
Agreement. Amendment No. 6 provides that Project Developer shall not be billed for or
required to pay that use-of-facilities charge for any month in which the Facility is not
operated. Project Developer will be required to pay the use-of-facilities charge for any
month in which its Facility is operated. 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. 6 to the Agreement with an effective date of February 2,
2024.
Respectfully submitted this 5th day of February, 2024.
AVISTA CORPORATION
___/s/ Michael G. Andrea_______
Michael G. Andrea
Senior Counsel
STIMSON LUMBER COMPANY
______________________________
Lisa Zentner
Purchasing Manager
Page 1 of 2 AMENDMENT NO. 6 TO POWER PURCHASE AGREEMENT BETWEEN
AVISTA CORPORATION AND STIMSON LUMBER COMPANY
AMENDMENT NO. 6

This Amendment No. 6 (“Amendment No. 6”) 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. 6 shall be effective
on February 2nd, 2024 or such other date established by the Idaho Public Utilities Commission
(“Commission”) (“Amendment No. 6 Effective Date”).

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, the output generated by
Seller’s Facility;

WHEREAS, the Commission originally approved the Agreement, as amended by
Amendment No. 1, in Order No. 34692 issued on June 15, 2020;

WHEREAS, since the original Agreement was approved in Order No. 34692, the
Agreement has been amended several times, to among other things, extend the term of the
Agreement through December 31, 2025;

WHEREAS, Project Developer has informed Avista that during the period from January
1, 2024 through December 31, 2025, it anticipates there will be extended periods of time where
the Facility will not operate; and

WHEREAS, the Parties desire to amend the Agreement to suspend Project Developer’s
obligation to pay a use-of-facilities charge for any month in which the Facility does not operate.

NOW THEREFORE, it is agreed as follows:

AGREEMENT TO AMEND

1. Avista and Project Developer have agreed that, for the period commencing on the
Amendment No. 6 Effective Date through December 31, 2025, Project Developer shall only be
required to pay such use-of-facilities charge for those months in which Project Developer
operates its Facility and shall not be billed for or required to pay the use-of-facilities charge for
any month in which the Facility is not operated. Accordingly, Section 31 of the Agreement is
amended to add the following at the end of Section 31 of the Agreement:

Notwithstanding the foregoing, if the Facility does not produce any Delivered Net
Output in any calendar month, Avista will not bill Project Developer and Project
Developer shall not be required to pay, the monthly use-of-facilities charge pursuant to
this Section 31 for such calendar month.

2. Except as expressly amended by the provisions set forth in this Amendment No.
6, all of the terms and conditions of the Agreement, as amended, shall remain in full force and
Page 2 of 2 AMENDMENT NO. 6 TO POWER PURCHASE AGREEMENT BETWEEN
AVISTA CORPORATION AND STIMSON LUMBER COMPANY
effect following execution of this Amendment No. 6 and each Party confirms, ratifies and
approves the Agreement as amended by this Amendment No. 6. 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. 6 is hereby incorporated in the
Agreement and, as of the Amendment No. 6 Effective Date, all references to the Agreement shall
be deemed to be references to the Agreement as amended by this Amendment No. 6.

3. This Amendment No. 6 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. 6 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: __________________________