20130522Request for Clarification.pdf

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Beqne*t for Clarllicafion of Avista Corporafion
IPUC Docket No. AVU-E-11-03
DearMs. Jewell:
Plosse find enolosed for filing in theabove.refereneed.docket an original and swen
copies of the Request for Clarification of Avista Corporation Please let me know if you have
any questions regarding this filing.
Enclosuro*
o$ Service List
MICHAEL G. ANDREA (ISB No. 8308)
Avista Corporation
141I E. Mission Ave., MSC-23
Spokane, WA99202
Telephone: [phone]
michael.andrea@avistacorp. com
Attorney for Avista Corporation
IN THE MATTER OF THE COMMISSION'S
REVIEW OF PURPA QF CONTRACT
PROVISIONS INCLUDING THE
SURROGATE AVOIDED RESOURCES
(SAR) AND INTEGRATED RESOURCE
PLANNTNG (rRP) METHODOLOGTES FOR
CALCULATING AVOIDED COST RATES
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. GNR.E-I I-03
REQUEST FOR CLARIFICATION OF
AVISTA CORPORATION
r6
Pursuant to Idaho Public Utilities Commission ("Commission") Rules of Procedure 53
and325, Avista Corporation (o'Avista") respectfully requests clarification of OrderNo. 32697
issued in the above-captioned proceeding. Specifically, as discussed herein, Avista requests that
the Commission clarif, that a renewed or extended power purchase agreement (*PPA") under
the Public Utility Regulatory Policies Act of 1978 for a QF project will include immediate
payment for capacity only if such QF project was being paid for capacity at the end of the term
of the PPA that is being renewed or extended.
I. Request for Clarification
In Order No. 32697, the Commission found it reasonable for the utilities to only begin
payments for capacity at such time that the utility becomes capacity deficient and that paying for
capacity only when the utility becomes capacity deficient results in avoided cost rates that more
Page - 1 REQUEST FOR CLARIFICATION OF AVISTA CORPORATION
accurately reflect true avoided costs. Order No. 32697 at2l. The Commission provided an
exception for existing QF projects that seek to renew or extend existing PPAs with a vtility. Id.
at2l. Specifically, the Commission stated:
It is logical that, if a QF project is being paid for capacity at the end of the contract term
and the parties are seeking renewal/extension of the contract, the renewaUextension
would include immediate payment of capacity. An existing QF's capacity would have
already been included in the utility's load and resource balance and could not be
considered surplus power. Therefore, we find it reasonable to allow QFs entering into
contract extensions or renewals to be paid capacity for the full term of the extension or
renewal.
Id.
Accordingly, the Commission held that QFs shall not receive compensation for capacity until the
utility is capacity deficient. Id. at 52.
Although the Commission recognizedthat,logically only QF projects that are being paid
for capacity at the end of an existing PPA term should receive immediate payment for capacity in
a new or extended PPA, the Commission did not expressly include that qualification in the
ordering paragraph holding that QFs shall not receive compensation for capacity until the utility
is capacity deficient. See id. at 52. On rehearing in Order No. 32802, the Commission reiterated
that "when an existing QF under a current contract desires to continue to sell energy to the same
utility after expiration of the current contract, and the parties enter into a new contract for the
sale and purchase of energy, the QF is entitled to be paid capacity for the full term of the new
agreement." Order No. 32802 at 2. However, the Commission did not in that order make clear
that a renewed or extended PPA for a QF project will include immediate payment for capacity
only if such QF project was being paid for capacity at the end of the term of the PPA that is
being renewed or extended.
Page - 2 REQUEST FOR CLARIFICATION OF AVISTA CORPORATION
Avista understands the Commission's intent to be as suggested in Order No. 32697-i.e.,
a renewed or extended PPA for a QF project will include immediate payment for capacity only if
the QF project seeking such renewal or extension was being paid for capacity at the end of the
term of the PPA that is being renewed or extended. See Order No. 32697 at2l. However,
absent clarification on this point, there is a potential for future litigation over whether, for
example, a QF project that enters into a short-term PPA during the term of which the utility is
not capacity deficient and therefore the QF is not paid for capacity under that short-term PPA, is
automatically entitled to be paid for capacity under a renewed or extended PPA. Accordingly,
Avista respectfully requests that the Commission clarify that a renewed or extended PPA for a
QF project will include immediate payment for capacity only if the QF project seeking such
renewal or extension was being paid for capacity at the end of the term of the PPA that is being
renewed or extended.
II. Conclusion
As discussed herein, Avista respectfully requests that the Commission clarify Order No.
32697 by clearly stating that a renewed or extended PPA for a QF project will include immediate
payment for capacity only if the QF project seeking such renewal or extension was being paid for
capacity at the end of the term of the PPA that is being renewed or extended.
Respecttully submitted this)rs day of &12013.
Attorney for Avista Corporation
AVISTA CORPORATION
Michael G. Andrea
Senior Counsel
Page - 3 REQUEST FOR CLARIFICATION OF AVISTA CORPORATION
CERTIFICATE OF SERVICE
I hereby certiff that on this 21st day of May 2013, true and correct copies of
the foregoing Request for Clarification of Avista Corporation were delivered to the
following persons via Email (unless otherwise indicated).
Jean Jewell
Idaho Public Utilities Commission
472W. Washington St.
Boise,ID 83702
Email: [e-mail]
Dean J. Miller
Chas. F. McDevitt
McDevitt, & Miller, LLP
PO Box 2564
Boise, lD 83701-2564
Email: j [e-mail]
has@mcdevitt-miller. com
Daniel E. Solander
Senior Counsel
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
Email: [e-mail]
Donovan E. Walker
Idaho Power Company
PO Box 70
Boise,ID 83707-0070
Email: [e-mail]
lnordstrom@idahopower. com
Ted S. Sorenson, P.E.
Sorenson Engineering, Inc.
5203 South lls East
Idatro Falls, ID 83404
Email: [e-mail]
Kris Sassar
Deputy Attomeys General
Idaho Public Utilities Commission
472W. Washington St.
Boise, lD 83702
Email : [e-mail]. gov
kris. sassar@fuc. idaho. gov
Peter Richardson
Gregory M. Adams
Richardson & O'Leary
515 N. 27thSt.
PO Box 7218Boise,ID 83702
Email: [e-mail]
greg@richardsonandoleary. com
Dr. Don Reading
670 Hill Road
Boise,ID 83703
Email: [e-mail]
R. Greg Ferney
Mimura Law Offices, PLLC
2176E. Franklin Rd., Suite 120
Meridian, ID 83642
Email: [e-mail]
Robert D. Kahn
Executive Director
Northwest and Intermountain Power
Producers Coalition
1117 MinorAve., Suite 300
Seattle, WA 9810
Email: [e-mail]
Page I-CERTIFICATE OF SERVICE
Glenn Ikemoto
Margaret Ruger
Idaho Windfarms, LLC
672Blair Ave.
Piedmont, CA946ll
E-mail : [e-mail]
}lar gar et@envi si onwind. com
Tauna Christensen
Energy Integrity Proj ect
769N1100E
Shelley, lD 83274
Email: [e-mail]
C. Thomas Arkoosh
Capitol Law Group,PLLC
205 N. 10tr St.,4tr Floor
PO Box 2598
Boise,ID 83701
Email: [e-mail]
Ronald L. Williams
Williams Bradbury, P.C.
1015 W. Hays St.
Boise LD,83702
Email: [e-mail]
Marv Lewallen
Clearwater Paper Corporation
601 W. Riverside Ave., Suite I100
Spokane, WA 99201
Email:
marv. lewallen@clearwaterpaper. com
James Carkulis
Managing Member
EXERGY DEVELOPMENT GROUP OF
IDAHO, LLC
802 West Banock Street, Ste. 1200
Boise,Idaho 83702
Email j carkulis@exergydevelopment. com
Deborah E. Nelson
Kelsey J. Nunez
Givens Pursley LLP
601 Bannock St. (83702)
PO Box2720
Boise, lD 83701-2720
Email: [e-mail]
kj n@givenspursley. com
Bill Piske, Manager
Interconnect Solar Development, LLC
1303 E. Carter
Boise,ID 83706
Email : [e-mail]
Bill Brown, Chair
Board of Commissioners of Adams County,
Idaho
PO Box 48
Council,ID 83612
Email: [e-mail]
Scott Montgomery
President, Cedar Creek Wind, LLC
668 Rockwood Drive
North Salt Lake, Uta 84054
Email: [e-mail]
Wade Thomas
General Counsel, Dynamis Energy
7768. Riverside Drive, Suite l5
Eagle,ID 83616
Email: [e-mail]
Robert A. Paul
Grand View Solar II
15960 Vista Circle
Desert Hot Springs, CA
Email: [e-mail]
Page 2--{ERTIFICATE OF SERVICE
John R. Lowe
Consultant to Renewable Energy
Coalition
12050 SW Tremont Street
Portland, OR97225
Email : j [e-mail]
Twin Falls Canal Company
c/o Brian Olmstead, General Manager
P.O. Box 326
Twin Falls, Idaho 83303-0326
Email: [e-mail]
R. Greg Ferney
Mimura Law Offices, PLLC
2176E. Franklin, Rd., Suite 120
Meridian, ID 83642
Arron F. Jepson
Blue ribbon Energy LLC
10660 South 540 East
Sandy, UT 84070
Email: [e-mail]
Benjamin J. Otto
Idaho Conservation League
710 N. 6th st.
P.O. Box 844
Boise,Idaho 83702
Ph: [phone]x12
Fax: [phone]
Email: [e-mail]
Don Schoenbeck
RCS
Email: [e-mail]
Don Sturtevant
Energy Director
J. R. Simplot Company
ONE CAPITAL CENTER
999 Main Street, P.O. Box 27
Boise, Idaho 837 07 -0027
Email: [e-mail]
North Side Canal Company
c/o Ted Diehl, General Manager
921 N. Lincoln St.
Jerome,Idaho 83338
Email : [e-mail]
MJ Humphries
Blue Ribbon Energy LLC
4515 S. Ammon Road
Ammon,ID 83406
Email : blueribbon ener gy @gmail. com
Magan Walseth Decker
Senior Staff Counsel
Renewable Northwest Proj ect
421 SW 6tr Ave., Suite 1125
Portland, OR97204
Email: [e-mail]
Liz Woodruff
Ken Miller
Clean Energy Program Director
Snake River Allance
Box 1731
Boise, l0 83701
Email: [e-mail]
kmiller@snakeriveralliance. org
Lori Thomas
Capital Law Group, PLLC
Email : [e-mail]
Page 3-CERTIFICATE OF SERVICE
J. Katrle Becker
The Alaska Center
1020 W. Main St., Suite 400
Boise, lD 83702
Email: [e-mail]
Michael J. Uda
Uda Law Firm P.C.
7 W. 6tl'Ave., Suite 4E
Helena, MT 59601
Email: [e-mail]
Page 4--CERTIFICATE OF SERVICE