20110912Avista Petition to Intervene.pdf

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Corp.
2011 SEP 12 f.\f1 9: 21
September
c Utilities Commission
ashington Street
, ID 93702
Petition of Avista Corporation to Intervene
IPUC Docket No. IPC-E-1l-15
Dear Ms. Jewell:
Please find enclosed for filing an original and seven copies of the Petition of Avista
Corporation to Intervene in the above-referenced docket. Please let me know if you have any
questions regarding this fiing.
Sincerely,
rz.
Michael G. Andrea
Senior Counsel
Enclosures
Michael G. Andrea (ISB No. 8308)
Senior Counsel
A vista Corporation
1411 East Mission, MSC- 23
Spokae, W A 99202
Phone: [phone]
Facsimile: [phone]
RECEIVED
2011 SEP 12 AM 9: 21
UTI
Attorney for A vista Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMMSION
PV SOLAR TWO, LLC
Complainant,
v.
)
)
) NO. IPC-E-1l-15
)
) PETIION OF A VISTA
) CORPORATIONTOINTERVENE
)
)
IDAHO POWER COMPANY
Defendant.
Pusuant to the Idaho Public Utilities Commssion's ("Commssion") Rules of
Procedure 53 and 71 though 73, A vista Corpration ("A vista") hereby petitions to
intervene, and to appear and parcipate as a pary, in the above-captioned matter.
1. Name and Addres of Petitioner
A vista Corpration
1411 East Mission Avenue
Spokane, W A 99202
2. Nature of Business
A vista is a corpration created and organzed under the laws of the State of
Washington with its principal offce in Spokane, Washington. A vista is an investor-
owned utility engaged in, among other thngs, the business of generating, transmittig,
and distrbuting electrc power to wholesale and retal customers in Idaho and
Washington. A vista also provides natura gas service to customers in Idao, Washington,
Page - 1 PETITION OF AVISTA CORPORATION TO INRVENE
and Oregon. As such, Avista's rates, charges, services and practices are regulated, in
par, by ths Commssion.
3. Names of Repreentatives
All communications, pleadngs, and orders with respect to ths proceedng should
be directed to:
Clint Kalich
Manager, Resource Planning and Analysis
A vista Corpration
1411 E. Mission Ave., MSC-7
Spokane, W A 99202
Phone: [phone]
Fax: [phone]
E-mail: clint.kalich(gavistacorp.com
Michael G. Andrea
Senior Counsel
A vista Corpration
1411 E. Mission Ave., MSC-23
Spokane, W A 99202
Phone: [phone]
Fax: [phone]
E-mail: michae1.andrea(gavistacorp.com
4. A vista's Interest in this Preeing
On August 2,2011, Grand View PV Solar Two, LLC ("Complainant") fied a
formal complaint against Idaho Power Company ("Idaho Power") to initiate the above-
captioned proceedng. In its complaint, Complaintat alleges that it requested that Idaho
Power "execute a stadard Public Utility Regulatory Policies Act of 1978 ("PURPA")
power purchase agreement ("PPA") for qualifying facilties ("QFs")." Complaint at 1.
Complainant furter alleges: "Idao Power has not negotiated in good faith in response
to Grad View's attempt to include terms in the stadard PPA to the effect that Idaho
Power does not own the environmenta attrbutes associated with the electrcal production
from Grd View's proposed solar electrc PURA project." Complaint at 1-2 (footnote
omitted). Accordingly, Complainant "requests that the Commssion issue a declartory
judgment that it is entitled to a PPA with a clause in which Idao Power explicitly
disclaims ownership of the environmenta attbutes." Complaint at 2.
Page - 2 PETITION OF A VISTA CORPORATION TO INRVENE
On September 1, 2011, the Commssion issued a Notice of Review and Notice of
Intervention Deadline ("Notice") in Case No. GNR-E-II-03, which initiates phase thee
of the Commssion's investigation and review ofPURA issues.! In the Notice, the
Commssion stated that it "anticipates that the scope of ths inquir wil also include (but
is not limited to) considerations regarding. . . renewable energy credits. . . ."
Accordingly, the primar issue raised by the Complainant in the above-captioned
proceeding (i.e., the treatment of RECs generated by or associated with QFs) is likely to
also be at issue in Case No. GNR-E-II-03. Accordingly, in order to address the issue of
treatment of RECs in a single forum, ths proceedng should be stayed until such time as
the issues in GNR - E-II-03 are resolved.
Ownership of environmenta attrbutes (sometimes referred to as "RECs")
associated with PURP A QFs is not settled in Idaho. Where a utility constrcts and owns
a PURA-equivalent resource, such resource would create REC's and the value of such
RECs would not come at a cost exceeding the resource. The utility's customers would,
therefore, receive the benefit of the value of the RECs generated by or associated with a
utility-owned PURA-equivalent resource. It follows that the utility's avoided cost is
inclusive of RECs and RECs generated by or associated with a QF should be assigned to
the utility for the benefit of the utility's customers. Alternatively, to the extent RECs
generated by or associated with a QF are not assigned to the utility, the price paid by the
utility for the PURPA power should be reduced to reflect the lost value to the utility.
i Phase 1 was initiated on November 5,2010, by a request filed by Idao Power Company, Avista,
and PacifiCorp, dba Rocky Mountan Power, for the Commission to initiate an investigation to address
varous avoided cost issues related to PURA in Case No. GNR-E-lO-04. Phase 2 was initiated by a
Notice of Inquiry, Notice of Intervention Deadline, Notice of Scheduling an d Notice of Technical Hearng
issued by the Commssion on Februar 25, 2011 in GNR E-11-01.
Page - 3 PETITION OF AVISTA CORPORATION TO INRVENE
As noted above, the issue of ownership of RECs is not yet settled in Idaho. In this
proceeding, Complainant requests that the Commssion order Idaho Power to expressly
disclaim ownership of any environmenta attrbutes associated with a QF. In order to
resolve the dispute, the Commssion may need to determne ownership of RECs
associated with QFs in Idaho in ths proceeing. As an investor-owned utility that does
business in the State of Idaho, any determnation regarding ownership of RECs by ths
Commssion in ths proceeng may create precedent that wil diectly impact A vista.
A vista, therefore, has a direct and substatial interest in ths proceeing. No other pary
can adequately represent Avista's interest in ths proceeding. Accordingly, good cause
exists to grant Avista's motion to intervene.
5. Conclusion
For the forgoing reasons, A vista respectfully requests that, if ths proceeng is
not stayed pending resolution of the issues in GNR-E-II-03, the Commssion grt
Avista's petition and allow Avista to intervene as a pary in the above-captioned
proceeding.
Respetflly submitted ths 9th day of September 2011.
AVISTA CORPORATION
~o
Michael G. Andrea
Senior Counsel
Page - 4 PETIION OF AVISTA CORPORATION TO INRVENE
CERTIFICATE OF SERVICE
I hereby certify that on this 9th day of September 2011, tre and correct copies of
the foregoing Petition of A vista Corporation to Intervene were sent to the following
persons via regular maiL.
Kris Sassar
Deputy Attorneys General
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702
Peter Richardson
Gregory M. Adams
Richardson & O'Leary
515 N. 27th St.
PO Box 7218Boise, ID 83702
Donovan E. Walker
Jason B. Wiliams
Idaho Power Company
1221 West Idaho Street
PO Box 70
Boise, ID 83707
Page I~CERTIFICATE OF SERVICE