20120620Update and Request.pdf

RECEIVED
2O!2 JUN 2O PH 2:3t
ATTORNEYS AT LAW

Tel [phone]
IDAHO rt.

[O. Box 7218 Boisc,ID 83707 515 N. 27;h St. Boic,ID 83702 fEo
June 20, 2012
Re: IPC-E-11-23 - Kootenai Electric Cooperative, Inc's Factual Update Filing and
Request to Stay Idaho Public Utilities Commission Determination
Enclosed please find Kootenai Electrical Coorperative, Inc's LLC's Factual Update Filing and
Request to Stay Idaho Public Utilities Commission Determination, filed in the above-reference
docket today.
Thank you for your assistance.
Sincerely,
U cj~ 0eggory M. Adams
Attorney for Kootenai Electric Cooperative
Enc.
ATTORNEYS AT LAW
Tel: [phone] Fax: [phone]
P.O. Box 7218 Boise, ID 83707 - 515 N. 27th St. Boise, ID 83702
June 20, 2012
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702
RE: IPC-E-11-23 - Kootenai Electric Cooperative, Inc.'s Factual Update Filing
and Request to Stay Idaho Public Utilities Commission Determination
Dear Ms. Jewell:
I write on behalf of Kootenai Electric Cooperative, Inc. ("Kootenai"), and request
acceptance of this letter filing in the above captioned docket. Although this case has been
fully submitted under the Idaho Public Utilities Commission's ("IPUC") modified
procedure rules, Kootenai makes this filing pursuant to IPUC Rule of Procedure 66.
Kootenai also makes this filing out of its ongoing obligation to apprise the Commission
of recent developments in related matters. As explained below, Kootenai submits that the
Federal Energy Regulatory Commission ("FERC") will likely resolve the factual dispute
in this matter over the Point of Delivery to Idaho Power on the Lob-Oxbow 230 kilovolt
line, and the IPUC should defer ruling on this matter until FERC has had the opportunity
to address the issue.
Idaho Power commenced this action at the IPUC on November 3, 2011, requesting that
the IPUC assert jurisdiction over Kootenai's proposed qualifying facility ("QF") sale to
Idaho Power in the State of Oregon pursuant to available tariffs of the Public Utility
Commission of Oregon ("OPUC"). Idaho Power has maintained before the IPUC that
"The correct inquiry is where the point of delivery of the Project's energy exists. Here
the point of delivery occurs at the Lolo substation in the state of Idaho." Idaho Power
Comments, IPUC Case No. IPC-E-1 1-23, p. 2 (January 4, 2012). In contrast, Kootenai
directed the IPUC to filings where the utilities have represented to FERC that the portion
of line from Avista' s Lolo Substation to a point near Imnaha, Oregon is a part of Avista' s
Transmission System. Consequently, Kootenai maintains that it will deliver to Idaho
Power in Oregon, and therefore may use the OPUC QF tariffs. This matter was
submitted on comments by both Kootenai and Idaho Power dated January 4, 2012. Idaho
Power filed a letter filing correcting a factual error in its pleadings on March 27, 2012,
and Kootenai made an update filing on March 28, 2012. In Kootenai's March 28th letter,
Idaho Public Utilities Commission
June 20, 2012
IPC-E-1 1-23
Page 2
Kootenai suggested that the IPUC should consider any relevant documents that may be
provided after discovery in the proceeding at the OPUC.
Consistent with Kootenai's March 28 th letter, Kootenai is now providing the IPUC with
the following update from discovery materials and briefing at the OPUC, where the
underlying facts have been further developed.' Idaho Power has thus far agreed to the
following facts:
• The point in change of ownership in the Lob-Oxbow line is at Imnaha,
Oregon. Idaho Power's Response to Kootenai 's Motion for Summary
Judgment ("Idaho Power SJResponse") OPUC Docket No. UM 1572, p. 2
Ins. 8-9 (May 18, 2012).2
• Transmission Capacity over the Lolo to Inmaha section of the line is
posted on Avista's OASIS as a part of Avista's transmission system. Id. at
p.9 in. 17top. 10 In. 1.
• Avista maintains the Lolo to Imnaha section of the Lob-Oxbow line. Id. at
p.11 Ins. 3-4.
• Although the metering equipment is located at the Lolo Substation, line
losses are imputed to Avista up to Imnaha, Oregon. Id. at p. 16 Ins. 1-3.
• The Lolo-Imnaha section of the line is included in the rate base used by
Avista to calculate transmission rates which Kootenai will pay Avista for
transmission to Idaho Power's system. Id. at p. 8 Ins. 3-5.
• A QF interconnecting to the line at any point between the Lolo Substation
and Imnaha would do so pursuant to Avista's Open Access Transmission
Tariff ("OATT"). Id. at p. 12 ins. 11-13.
Additionally, in discovery in the OPUC proceeding, Kootenai obtained the 1958
Interconnection Agreement between Idaho Power, Avista, and PacifiCorp, which governs
the Lob-Oxbow Interconnection and is still in effect.3 That Interconnection Agreement
defines Points of Delivery as follows: "The Points of Delivery for energy supplied
between the parties hereto, unless otherwise specified, shall be at the place and in the
interconnecting circuit between the parties where ownership and control of the facilities
changes." Idaho Power has continued to maintain, however, that Avista cannot deliver
Kootenai's QF output to Idaho Power anywhere other than to Avista's Lolo Substation -
which is 63 miles from the point where Avista's and Idaho Power's facilities are actually
interconnected near Imnaha, Oregon.
1 Kootenai can provide supporting documentation obtained in the OPUC proceeding if Idaho Power
disputes these facts or if the IPUC requests such a filing.
2 The filings cited herein are available online at
hiip:Happs.puc.state.or.us/edockets/docket.asp?DocketlD=17250
This 1958 Interconnection Agreement is available as part of a compliance filing made on
September 12, 2003, in the FERC Docket Nos. ER03-953-00 1, ER03-954-00 1 and ER03-964-0 1, available
online at httn://elibrary.ferc.gov/idmws/docket search.asp.
Idaho Public Utilities Commission
June 20, 2012
IPC-E-1 1-23
Page 3
In an attempt to finally resolve the issue, on May, 3, 2012, Kootenai submitted a request
with Avista under its OATT for a Long-Term Firm Point-to-Point Transmission Service
Agreement ("LTF Point-to-Point Agreement") to the point of interconnection near
Imnaha, Oregon. On May 31, 2012, Avista tendered an executable LTF Point-to-Point
Agreement to Kootenai. The tendered LTF Point-to-Point Agreement described the Point
of Delivery as follows:
The point on the Lob-Oxbow 230 kV Transmission Line where the 230
kV facilities of Idaho Power Company and Avista are interconnected, and,
for scheduling purposes, the LOLO point of delivery.
Avista stated that within 15 days Kootenai must sign the LTF Point-to-Point Agreement
or ask that it be filed unexecuted with FERC pursuant to Section 15.3 of the OATT to
resolve any remaining concerns.
After Kootenai provided Idaho Power with the LTF Point-to-Point Agreement tendered
by Avista, Idaho Power continued to assert in a letter to Kootenai that Kootenai and
Avista could not deliver past Avista's Lolo Substation. Idaho Power also wrote a letter to
Avista stating it would intervene at FERC in the docket created by Avista's filing of the
LTF Point-to-Point Agreement to argue to FERC that Lolo Substation is the required
Point of Delivery. Consequently, on June 11, 2012, Kootenai responded to Avista to
request that Avista file the unexecuted agreement with FERC pursuant to Section 15.3 of
Avista's OATT. Kootenai requested that Avista do so in light of Idaho Power's response.
Kootenai requested that the LTF Point-to-Point Agreement specifically include the term
"near Imnaha, Oregon" in the definition of the Point of Delivery, and that Avista file the
unexecuted agreement with FERC to address that additional request and Idaho Power's
position that it can only accept deliveries at the Lolo Substation.
Kootenai then filed a Motion and Affidavit in the OPUC proceedings requesting that the
OPUC stay its determination regarding the Point of Delivery until after FERC has
addressed the issue. Kootenai has attached that Motion and Affidavit filed at the OPUC
to this letter for further background for the IPUC. The Affidavit also contains the LTF
Point-to-Point Agreement tendered by Avista.
The dispute between Kootenai and Idaho Power has evolved into a dispute over the
proper location of a Point of Delivery in a FERC-jurisdictional transmission agreement.
The terms of Kootenai's transmission agreement with Avista are subject to FERC's
jurisdiction, and FERC regularly resolves disputes over the proper terms in such
agreements, including the proper Point of Delivery.4 FERC will likely address the issue
in the near future. Although Kootenai maintains that the record overwhelmingly
demonstrates that the Point of Delivery is the point of interconnection near Imnaha,
See 16 U.S.C. §§ 824(b), 824d and 824e; See Wisconsin Power and Light Co., 84 FERC ¶ 61,300
(1998).
Idaho Public Utilities Commission
June 20, 2012
IPC-E-1 1-23
Page 4
Oregon, the IPUC should not address the matter until after FERC has had the opportunity
to do so.
For the reasons stated above, Kootenai respectfully submits that the Idaho Public Utilities
Commission should not rule on Idaho Power's Petition until FERC has had the
opportunity to address the issue of the Point of Delivery.
*ncerely,
goryM.Ada
Richardson & O'Leary PLLC
Attorney for Kootenai Electric Cooperative, Inc.
cc: Service List in IPUC Docket No. IPC-E-1 1-23
IPC-E-1 1-23
ATTACHMENT TO
KOOTENAI ELECTRIC COOPERATIVE, INC'S
FACTUAL UPDATE FILING JUNE 209 2012 AND
REQUEST TO STAY IDAHO PUBLIC UTILITIES
COMMISSION DETERMINATION
BEFORE THE
PUBLIC UTILITY COMMISSION OF OREGON
KOOTENAI ELECTRIC COOPERATIVE, ) INC., ) Docket No UM 1572
Complainant, )
) KOOTENAI ELECTRIC
VS. ) COOPERATIVE, iNC.'S MOTION
) FOR PARTIAL STAY PENDING IDAHO POWER COMPANY, ) FERC DETERMINATION Defendant.)
1 I INTRODUCTION
2 Kootenai Electric Cooperative, Inc ("Kootenai") hereby moves the Public Utility
3 Commission of Oregon (the "OPUC"), pursuant to Oregon Administrative Rule 860-001-0420
4 for a partial stay of its determinations in this matter. Specifically, Kootenai requests that the
5 OPUC not address Idaho Power's defense that Avista's Open Access Transmission Tariff
6 ("OATT") prohibits Kootenai from delivering to the point of interconnection near Imnaha,
7 Oregon, until the Federal Energy Regulatory Commission ("FERC") addresses that matter. That
8 matter is within FERC 's jurisdiction and Kootenai has requested that Avista file an unexecuted
9 Long-Term Firm Point-to-Point Transmission Service Agreement with FERC for its
10 determination of the issue Pursuant to 860-001-0420(3), Kootenai has conferred with Idaho
11 Power and understands that Idaho Power opposes this Motion for Partial Stay.
12 II BACKGROUND
13 Pursuant to the Public Utility Regulatory Policies Act of 1978 ("PURPA"), Kootenai's
14 Fighting Creek Landfill Gas to Energy qualifying facility ("QF") filed a complaint against Idaho
15 Power alleging that Kootenai is entitled to an OPUC Schedule 85 power purchase agreement
16 ("PPA") Kootenai and Idaho Power each moved for summary judgment on April 27, 2012, and
PAGE 1— MOTION FOR PARTIAL STAY
1 filed supporting affidavits and exhibits The first disputed issue in this case is whether Avista
2 will deliver Kootenai's QF output to Avista's Lolo Substation or to the point of interconnection
3 on the 230 kilovolt Lob-Oxbow line near Inmaha, Oregon. This is the factual issue
4 determinative of the applicability of the OPUC Schedule 85. See Pub. Serv. Co. ofN.H. v. N.H.
5 Elec. Coop., Inc., 83 FERC 161,224, ¶J 61,998 —62,000 (1998) (determining QF may utilize
6 FERC's orders and tariffs governing open access to transmission to compel a purchase by any
7 utility to which it can transmit its output); see also Kootenai 's Motion for Summary Judgment at
8 11 In. 19 to 13 In. 4 (providing additional legal authority for this conclusion).
9 Idaho Power has itself repeatedly stated that the Point of Delivery to which Avista will
10 deliver Kootenai' s output is the critical inquiry in this matter with regard to the applicability of
11 Schedule 85. See, e.g., Amended Answer at 12 ("This dispute involves whether Avista will
12 deliver Kootenai's energy to Idaho Power in Idaho or Oregon. Idaho Power maintains that the
13 point of delivery is in the state of Idaho and therefore Kootenai is categorically ineligible for a
14 Schedule 85 ESA "), Idaho Power Motion for Summary Judgment at 1 Ins 22-23 (declaring
15 "The crux of this dispute is the point of delivery ('Point of Delivery' or 'POD') for the energy
16 Kootenai proposes to sell to Idaho Power"), id at 2 ins 13-14 (asserting "As a matter of law, the
17 Point of Delivery is at the Lolo Substation"); id. at 7 Ins. 9-11 (asserting "it is not possible for
18 Kootenai, or any other generator, to deliver energy to the change in physical Ownership of the
19 Lob-Oxbow line"), id at 9 ins 12-13 (asserting "under the terms of the ESA that Kootenai has
20 requested, Kootenai's Transmission Agreement with Avista is dispositive as to the location of
21 the Point of Delivery"), id at 10 Ins 7-9 (stating, "when Avista wheels power to Idaho Power.
22 . . Avista delivers the power to the Lolo Substation and Idaho Power receives the power at the
23 Lolo Substation"), id at 12 Ins 13-15 (stating, "The location of the Point of Delivery to Idaho
PAGE 2— MOTION FOR PARTIAL STAY
I Power's system is the correct inquiry and threshold determination with regard to an off-system
2 QF requiring Idaho Power to contract pursuant to PURPA"), id at 14 in 8 (asserting,
3 "Kootenai's Point of Delivery is Outside Idaho Power's Oregon Control Area"), Idaho Power's
4 Summary Judgment Response at 19 ins 11-12 (arguing the Dormant Commerce Clause is
5 inapplicable because "Kootenai is not proposing to deliver its output in Oregon")
6 To fully address Idaho Power's arguments, on May, 3, 2012, Kootenai submitted a
7 deposit and a request with Avista for a Long-Term Firm Point-to-Point Transmission Service
8 Agreement ("LTF Point-to-Point Agreement") to the point of interconnection near Imnaha,
9 Oregon See Kootenai 's Summary Judgment Response at 20-21 After completion of summary
10 judgment briefing, on May 31, 2012, Avista tendered an executable LTF Point-to-Point
11 Agreement to Kootenai The tendered LTF Point-to-Point Agreement described the Point of
12 Delivery as follows
13 The point on the Lob-Oxbow 230 kV Transmission Line where the 230 kV
14 facilities of Idaho Power Company and Avista are interconnected, and, for
15 scheduling purposes, the LOLO point of delivery.
16
17 Affidavit of Doug Elliott in Support of Partial Stay ("Elliot Partial Stay Affidavit")
18 atlj6and Exhibit 1 at p. 7
19
20 Avista stated that within 15 days Kootenai must sign the LTF Point-to-Point Agreement or ask
21 that it be filed unexecuted with FERC pursuant to Section 15.3 of the OATT to resolve any
22 remaining concerns. Id. at Exhibit 1 at p. 1.
23 Kootenai expected that Avista's description of the Point of Delivery would resolve Idaho
24 Power's concern that Kootenai would be unable to deliver to the point of interconnection near
25 Imnaha, Oregon Elliot Partial Stay Affidavit at 18. Therefore, Kootenai sent the LTF Point-to-
26 Point Agreement to Idaho Power to determine whether this tendered agreement would resolve
PAGE 3— MOTION FOR PARTIAL STAY
I Idaho Power's concern, and satisfy Idaho Power that Kootenai will deliver to a point in Oregon.
2 Id. at ¶J 9-10 and Exhibit 2. On June 8, 2012, Idaho Power responded that the LTF Point-to-
3 Point Agreement tendered by Avista had not changed Idaho Power's position Id at ¶J 11-13
4 and Exhibit 3. Idaho Power maintained that, despite the LTF Point-to-Point Agreement tendered
5 by Avista, "The only possible way for Avista to deliver Kootenai's output to Idaho Power across
6 the Lob-Oxbow path is by delivering to the only existing, designated Point of Delivery between
7 Idaho Power and Avista on that path, which is the Lolo substation." Id. Idaho Power also
8 separately sent a letter to Avista Transmission Id at 1114-17 and Exhibit 4 That letter stated
9 that "if the LTSA is executed as drafted and filed with the FERC, Idaho Power would need to
10 intervene to seek clarification as to confirm that the POD is indeed the Lolo substation" Id It
11 also stated "Idaho Power will only accept energy from Avista at the POD designated as LOLO,
12 which is the Lolo substation" Id
13 Consequently, Kootenai decided not to sign the LTF Point-to-Point Agreement tendered
14 by Avista because even that agreement has apparently not resolved Idaho Power's concerns Id
15 at ¶ 18 On June 11, 2012, Kootenai responded to Avista to request that Avista file the
16 unexecuted agreement with FERC pursuant to Section 15.3 of Avista's OATT Id at ¶J 18-20
17 and Exhibit 5. Kootenai requested that Avista do so in light of Idaho Power's response. Id. at
18 Exhibit 5 a p. 3. Kootenai requested that the LTF Point-to-Point Agreement specifically include
19 the term "near Imnaha, Oregon" in the definition of the Point of Delivery, and that Avista file the
20 unexecuted agreement with FERC to address that additional request and Idaho Power's position
21 that it can only accept deliveries at the Lolo , Substation Id at Exhibit 5 at pp 2-3
22 III. ARGUMENT
23 The dispute in this case over the Point of Delivery has evolved into a dispute over a
PAGE 4 - MOTION FOR PARTIAL STAY
I matter that is best determined by FERC - whether Avista will deliver under its OATT to Idaho
2 Power at the Lolo Substation or the point of interconnection near hiinaha, Oregon Kootenai has
3 briefed the OPUC on why Idaho Power's position is unreasonable and inconsistent with its 1958
4 Interconnection Agreement with Avista, as well as other filings and tariffs on file with FERC.
5 Kootenai did so to demonstrate it would be able to obtain a LTF Point-to-Point Agreement with
6 Avista to the point of interconnection near Imnaha, Oregon, which is in fact a requirement of the
7 Schedule 85 PPA. Avista has now tendered a transmission agreement that describes the Point of
8 Delivery as the point of interconnection on the Lob-Oxbow line (not Lolo Substation) There is
9 little more Kootenai or the OPUC can do to resolve the issue. As Kootenai has argued
10 previously, the forum for Idaho Power to challenge Kootenai's transmission agreement with
11 Avista is FERC. See Kootenai 's Summary Judgment Reply at 24 Ins. 17-23.
12 The Federal Power Act ("FPA") grants FERC authority to regulate the transmission of
13 electric energy in interstate commerce See 16 U S C §§ 824(b), 824d and 824e FERC
14 promulgated a pro forma OATT that includes the minimum terms and conditions under which
15 transmission providers may offer service. Promoting Wholesale Competition Through Open
16 Access Nondiscriminatory Transmission Services by Public Utilities Recovery of Stranded Costs
17 by Public Utilities and Transmitting Utilities, Order No. 888, FERC Stats. & Regs. ¶ 31,036, ¶11
18 31,635-31,636 (1996), 61 FedReg 21,540 ("Order No 888"), on reh'g Order No 888-A, FERC
19 Stats. & Regs. ¶ 31,048, 62 Fed.Reg. 12,274 (1997), on reh'g, Order No. 888-B, 81 FERC ¶
20 61,248 (1997), on reh'g Order No 888-C, 82 FERC ¶ 61,046 (1998)
21 Kootenai has requested that Avista file the unexecuted LTF Point-to-Point Agreement
22 with FERC for final resolution the location of the Point of Delivery. Idaho Power will have the
23 opportunity to intervene in that FERC docket. FERC is better equipped to address that issue
PAGE 5— MOTION FOR PARTIAL STAY
I because the 1958 Interconnection Agreement, Avista's OATT, and the unexecuted LTF Point-to-
2 Point Agreement all regard transmission in interstate commerce under the FPA And all are (or
3 will be) agreements or tariffs kept on file with FERC - not the OPUC. FERC regularly resolves
4 disputes of this nature regarding the appropriate terms of transmission agreements.'
5 Additionally, because FERC will likely resolve the Point of Delivery issue, factors of
6 administrative economy warrant a partial stay in the OPUC proceeding on that issue until FERC
7 has addressed the issue.
8 Kootenai requests a partial stay, but not a complete stay of the proceedings. The OPUC
9 should not stay proceedings on the remaining issue of whether Kootenai created a legally
10 enforceable obligation ("LEO") to deliver to Idaho Power pursuant to the terms of the Schedule
11 85 PPA it executed on December 27, 2011. See Kootenai 'S Motion for Summary Judgment at
12 19-20. There is precedent for the OPUC to resolve a dispute over the date a QF created a LEO
13 prior to resolution of a dispute over the proper point of delivery. See Water Power Co., Inc. v.
14 PaceJICorp, 99 Or App 125, 128-29, 781 P 2d 860, 862-63 (1989) Resolution of the LEO issue
15 during the months it may take for FERC to provide final resolution of the Point of Delivery issue
16 is warranted here because Kootenai's QF is currently online and selling at below-market rates
17 Waiting to resolve the LEO issue will result in further unwarranted delay in resolving the case
18 IV. CONCLUSION
19
20 For the reasons stated herein, Kootenai respectfully requests that the OPUC stay its
21 determination regarding the Point of Delivery issue until FERC has addressed the matter. The
22 issue involves Avista's FERC-jurisdictional OATT and transmission contracts kept on file with
This discrete issue is therefore different from a dispute over the terms of a power purchase agreement that
are related to transmission. See American Ref-Fuel Co. of Niagara, L.P. v. Niagara Mohawk Power Corp., 97
FERC 161,158, IM 61,701-61,702 (2001). FERC regularly determines the propriety of terms in transmission
agreements including the point of dehvery. See Wisconsin Power and Light Co 84 FERC 161,300 (1998)
PAGE 6 - MOTION FOR PARTIAL STAY
I FERC. Kootenai submits that the OPUC should resolve the remaining issue of whether Kootenai
2 created a legally enforceable obligation pending resolution of the Point of Delivery issue by
3 FERC
Respectfully submitted this 14th day of June 2012.
RICHARDSON AND O'LEARY, PLLC
/s/ Gregory M Adams
Peter J. Richardson (OSB No. 06668)
Gregory M. Adams (OSB No. 10 1779)
Richardson & O'Leary, PLLC
515 N. 27th Street
P.O. Box 7218
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter(richardsonandoleary.corn
greg(richardsonandoleary.com
Attorneys for Kootenai Electric
Cooperative, Inc.
PAGE 7— MOTION FOR PARTIAL STAY
BEFORE THE
PUBLIC UTILITY COMMISSION OF OREGON
KOOTENAI ELECTRIC COOPERATIVE, )
INC., ) Docket No. UM 1572
Complainant, )
) AFFIDAVIT OF DOUG ELLIOTT IN
VS. ) SUPPORT OF KOOTENAI ELECTRIC
) COOPERATIVE, INC 'S REQUEST IDAHO POWER COMPANY, ) FOR PARTIAL STAY OF Defendant ) PROCEEDINGS
I, Doug Elliott, do declare the following and if called to testify, would and could
competently testify thereto
I I am over the age of 18, and am employed as the General Manager of Kootenai
Electric Cooperative, Inc ("Kootenai") I make this Affidavit based upon my personal
knowledge
2 I am the same Doug Elliott who made the Affidavits of Doug Elliott, filed earlier
in this docket (OPUC Docket No. UM 1572). I hereby incorporate by reference my statements
from those Affidavits as if set forth filly herein
3 As I stated earlier, Kootenai requested a Long Term Firm Point to Point
Transmission Service Agreement ("LTF Point-to-Point Agreement") from Avista on May 3,
2012 to deliver its qualifying facility's output to Idaho Power at the point of interconnection on
the Lob-Oxbow line near Imnaha, Oregon
4.On May 31, 2012, Avista tendered an executable LTF Point-to-Point Agreement.
5.I have attached a true and correct copy of the executable LTF Point-to-Point
AFFIDAVIT OF DOUG ELLIOTT IN SUPPORT OF KOOTENAI ELECTRIC
COOPERATIVE, INC 'S REQUEST FOR PARTIAL STAY OF PROCEEDINGS
PAGE 1
Agreement and Avista's cover letter as Exhibit 1 to this Affidavit.
6 The executable LTF Point-to-Point Agreement tendered by Avista described the
Point of Delivery as follows:
The point on the Lob-Oxbow 230 kV Transmission Line where the 230
kV facilities of Idaho Power Company and Avista are interconnected, and,
for scheduling purposes, the LOLO point of delivery.
7.Avista Transmission's cover letter stated that within 15 days Kootenai must sign
the LTF Point-to-Point Agreement or ask that it be filed unexecuted with FERC pursuant to
Section 15.3 of the Open Access Transmission Tariff ("OATT") to resolve any remaining
concerns
8.I expected that Avista's description of the Point of Delivery would resolve Idaho
Power's concern that Kootenai would be unable to deliver to the point of interconnection near
Imnaha, Oregon
9 On June 1, 2012, Kootenai sent the LTF Point-to-Point Agreement to Idaho
Power by letter from our counsel, Mr. Greg Adams, to determine whether the tendered
agreement would resolve Idaho Power's concern, and satisfy Idaho Power that Kootenai will
deliver to a point in Oregon
10 I have attached a true and correct copy of that June 1, 2012 letter from Mr. Adams
to Idaho Power as Exhibit 2 to this Affidavit
11 On June 8, 2012, Idaho Power responded by a letter to Kootenai from Idaho
Power's counsel, Mr. Donovan Walker, which stated that the LTF Point-to-Point Agreement
tendered by Avista had not changed Idaho Power's position
12 I have attached that letter from Idaho Power's counsel as Exhibit 3 to this
AFFIDAVIT OF DOUG ELLIOTT IN SUPPORT OF KOOTENAI ELECTRIC
COOPERATIVE, INC.'S REQUEST FOR PARTIAL STAY OF PROCEEDINGS
PAGE 2
Affidavit.
13 Idaho Power maintained that, "The only possible way for Avista to deliver
Kootenai's output to Idaho across the Lob-Oxbow path is by delivering to the only existing,
designated Point of Delivery between Idaho Power and Avista on that path, which is the Lob
substation"
14 On June 8, 2012, Idaho Power also separately sent a letter from its Director of
Load Serving Operations, Ms Tessia Park, to Mr. Jeff Schlect, Manager of Avista Transmission
Services
15 I have attached a true and correct copy of that letter from Ms Park to Avista as
Exhibit 4 to this Affidavit
16 That letter stated that "if the LTSA is executed as drafted and filed with the
FERC, Idaho Power would need to intervene to seek clarification as to confirm that the POD is
indeed the Lolo substation"
17 That letter also stated, "Idaho Power will only accept energy from Avista at the
POD designated as LOLO, which is the Lolo substation"
18 Kootenai decided not to sign the LTF Point-to-Point Agreement tendered by
Avista because it apparently has not resolved Idaho Power's concern
19. Consequently, on June 11, 2012, Kootenai responded to Avista, by letter from our
counsel, Mr. Greg Adams, to request that Avista file the unexecuted LTF Point-to-Point
Agreement with FERC pursuant to Section 15.3 of Avista's OATT
20 I have attached a true and correct copy of that letter from Mr. Adams to Avista as
Exhibit 5 to this Affidavit
21 That letter requested that the LTF Point-to-Point Agreement specifically include
AFFIDAVIT OF DOUG ELLIOTT IN SUPPORT OF KOOTENAI ELECTRIC
COOPERATIVE, INC 'S REQUEST FOR PARTIAL STAY OF PROCEEDINGS
PAGE 3
the term "near Imnaha, Oregon" in the definition of the Point of Delivery, and that Avista file the
unexecuted agreement with FERC to address that additional request and Idaho Power's position
that it can only accept deliveries at the Lolo Substation
22 From communications with Avista, we expect that Avista will make the filing of
the unexecuted LTF Point-to-Point Agreement with FERC within 30 days
I declare under penalty of perjury under the laws of the United States and under laws of
the state of Idaho that the foregoing is true and correct.
Further your affiant sayeth naught
DATED June-i,2,2012.
Doug Efflott
STATE OF IDAHO )
) ss.
COUNTY OF
On this 42 day of June 2012, before me, a Notary Public in and for the State of Idaho,
personally appeared Doug Elliott, personally known to me to be the person who executed this
instrument (or proved to me on the basis of satisfactory evidence) and acknowledged it to be his
free and voluntary act and deed for the uses and purposes mentioned in the instrument
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year
first above written.
NOTAR?PVLIC for the State of Idaho
Residing atQ4A 4942__k-
441ma its

My Commission expires 3 - -
AFFIDAVIT OF DOUG ELLIOTT IN SUPPORT OF KOOTENAI ELECTRIC
COOPERATIVE, INC.'S REQUEST FOR PARTIAL STAY OF PROCEEDINGS
PAGE 4
OPUC DOCKET NO. UM 1572
ELLIOTT AFFIDAVIT IN SUPPORT OF STAY
EXHIBIT 1
Avista Corp.
1411 East Mission PO Box Zl2?
Spokane,Washingwn 99220-3727
Telephone [phone]
Toll Free 808-727-8110
4:7vIsTA
Corp.
May 31, 2012
Shawn Dolan
Manager of Engineering
Kootenai Electric Cooperative, Inc.
2451 W. Dakota Ave.
Hayden, ID 83835
Dear Mr. Dolan:
This letter is in response to your application for 3 MW of Long-Term Firm Point-to-Point
Transmission Service Request (TSR# 76877961) from AVA.SYS to LOLO requested on May 4,
2012. Avista Corporation ("Avista") received a deposit in the amount of $6,000.00 on May 4,
2012, which is the correct deposit amount for a 3 MW request. Per Avista's Open Access
Transmission Tariff FERC Electric Tariff Volume No. 8 ("Tariff"), your application is
complete.
Avista has determined your service request can be met starting September 1, 2012 for a 5 year
term (terminating August 31, 2017). The enclosed Long-Term Firm Point-to-Point Transmission
Service Agreement ("Agreement") is for service from AVA.SYS to LOLO. Please be advised of
the timing requirements associated with execution of a Service Agreement under the Tariff.
According to Section 19 of the Tariff, "whenever the Transmission Provider determines that a
System impact Study is not required and that the service can be provided, it shall notfj' the
Eligible Customer as soon as practicable. . . Failure of an Eligible Customer to execute and
return the Service Agreement or request the filing of an unexecuted service agreement pursuant
to Section 15.3, within fifteen (15) days after it is tendered by the Transmission Provider will be
deemed a withdrawal and termination of the Application and any deposit submitted shall be
refunded with interest."
Please indicate your acceptance and agreement by signing two originals of the Long-Term Finn
Point-to-Point Transmission Service Agreement where indicated. Once signed, please return one
original to Avista at the address below. The remaining original is for your records.
Avista Corporation
Warróni. Clark MSC-16
Senior Transmission Contracts Engineer
1411 East Mission Avenue
Spokane, WA 99202-1902
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 1
Page 1
Once Avista has received the fully-executed original, Avista will be changing your TSR status
from STUDY to ACCEPTED. KEC will need to confirm this TSR since KEC had initially
marked 'Preconfirmed - No" on its TSR submittal. For a Yearly Firm product, this needs to be
done within 15 days from when the Transmission Provider marks it as ACCEPTED (this is the
Customer Confirmation time limit).
Per our prior discussions Avista understands that KEC may desire specific language to be
included fbr the designated Point of Delivery under the Agreement and that if such language is
not included KEC may request that Avista file an unexecuted agreement with the Commission.
Avista is tendering this Agreement using our standard form of description and terminology for a
point of delivery used in our transmission-related agreements. Please note that Avista is happy
to either accept the executed Agreement or file an unexecuted agreement to obtain Commission
direction on the matter, whichever approach you deem appropriate. We look forward to
continuing our ongoing transmission service relationship with KEC. If you have any questions
concerning this letter, please contact me at (509) 4954186.
Sincerely,
T; C
Warren J. Clark
Senior Transmission Contracts Engineer
Avista Corporation
Enclosures
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit I
Page 2
Avsta Contract No. AV-TRI2-1 119
LONG-TERM FIRM POINT-TO-POINT TRANSMISSION SERVICE
AGREEMENT
under
AVISTA CORPORATION'S
OPEN ACCESS TRANSMISSION TARIFF
FERC ELECTRIC TARIFF, VOLUME NO.8
This LONG-TERM FIRM POINT-TO-POINT TRANSMISSION SERVICE
AGREEMENT made and entered into this - day of,2012, by and between
AVISTA CORPORATION ("Avista") and KOOTENA! ELECTRIC COOPERATIVE,
INC. ("KEC"), which hereinafter may be referred to individually as "Party" or
collectively as "Parties".
WITNES SETH
WHEREAS, Avista provides Firm Point-to-Point Transmission Service over its
Transmission System under Avista's Open Access Transmission Tariff, and
WHEREAS, KEC desires to receive Long-Term Firm Point-to-Point
Transmission Service under Avista's Open Access Transmission Tariff, and
NOW THEREFORE, the Parties agree as follows:
Section 1 -Definitions
Unless otherwise defined herein, all capitalized terms shall have their respective
meanings as set forth in Avista's Open Access Transmission Tariff; FERC Electric Tariff,
Volume No. 8 ("Tariff'). KEC shall be the Transmission Customer as such term is used
in the Tariff and Avista shall be the Transmission Provider as such term is used in the
Tariff.
Section 2 - Standard Provisions
2.1 Terms and Conditions: The terms and conditions under which Long-Term Firm
Transmission Service is offered and accepted are pursuant to this Service
Agreement and to the Tariff. The Tariff is hereby incorporated by this reference
and made a part of this Service Agreement. Avista may change the terms and
conditions of the Tariff upon, and only upon, approval by the Commission
pursuant to a filing by Avista.
2.2 Completed Application: Avista has determined that KEC is deemed to have a
Completed Application for Firm Point-to-Point Transmission Service under the
Tariff.
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 1
Page 3
2.3 Application Deposit: KEC has provided to Avista an Application deposit in
accordance with the provisions of Section 173 of the Tariff:
2.4 System Impact and Facilities Studies: Study Agreements for a System impact
Study and/or a Facilities Study are not required for the Application dated May 4.
2012.
Section 3 - Term and Regulatory Filing
3.1 Effective Date and Filing: This Service Agreement shall be effective on the
Service Commencement Date of September 1, 2012 or such other date as may be
designated by the Commission when accepted for filing ("Effective Date").
Avista shall file this Service Agreement with the Commission as a Service
Agreement under the Tariff.
3.2 Termination of Agreement: This Service Agreement shall remain in effect
through August 31, 2017.
Section4 - Long-Term Firm Point-to-Point Transmission Service
Commencing on the Effective Date Avista shall provide, and KEC shall take and
pay for, Long-Term Firm Point-to-Point Transmission Service pursuant to the Tariff.
Exhibit I to this Service Agreement lists the Points of Receipt and Points of Delivery, the
amounts of Reserved Capacity at the Points of Receipt and Points of Delivery and
applicable charges for Long-Term Firm Point-to-Point Transmission Service.
Section 5 - Other Services
Commencing on the Effective Date Avista shall provide, and KEC shall take and
pay for all applicable Ancillary Services. The amounts of such services, specific terms
and conditions associated with such services and the charges for such services are listed
in Exhibit 2 to this Service Agreement.
Section 6 - Construction of Facilities
Construction of Direct Assignment Facilities or Network Upgrades are not
required for Firm Transmission Service to be provided pursuant to this Service
Agreement.
'4
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit I
Page 4
Section 7 - Billing and Payment
Billing and payment for all services provided under this Service Agreement shall
be pursuant to Section 7 of the Tariff. Bills sent to KEC shall be sent to:
Attention: Accounts Payable
Kootenai Electric Cooperative, Inc.
2451 W. Dakota Ave.
Hayden. ID 83835
All payments to Avista shall be wire transferred to the account specified on each
billing invoice.
Section 8 - Miscellaneous Provisions
8.1 Waivers: Any waiver at any time by either Party hereto of its rights with respect
to the other Party or with respect to any matter arising in connection with this
Service Agreement shall not be considered a waiver with respect to any other
default of the same or any other matter.
8.2 Effect of Section Readings: Section headings appearing in this Service
Agreement are inserted for convenience of reference only and shall not be
construed to be interpretations of the text of this Service Agreement.
8.3 Notices: Any written notice or request made to Avista under this Service
Agreement shall be directed to:
Attention: Manager, Transmission Services
Avista Corporation
1411 East Mission Avenue
Spokane, Washington 99202-1902
or
P. 0. Box 3727
Spokane, Washington 99220-3727
Any written notice or request made to KEC under this Service Agreement shall be
directed to:
Attention; Manager of Engineering
Kootenai Electric Cooperative, Inc.
2451 W. Dakota Ave.
Hayden, ID 83835
3
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 1
Pages
IN WITNESS WHEREOF, the Parties hereto have caused this Service Agreement to be
executed in their respective names by their duly authorized representatives as of the date
first noted above.
AVISTA CORPORATION
. A- ~>
Jeff Schiect
Senior Manager, FERC Policy and Transmission Services
Signed this 31 day of May, 2012
KOOTENAI ELECTRIC COOPERATIVE INC.
Doug Elliott
General Manager
Signed this day of ,2012
4
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 1
Page 6
EXHIBIT 1
SPECIFICATIONS AND CHARGES FOR
LONG-TERM FIRM POINT-TO-POINT TRANSMISSION SERVICE
Point of Receipt
Location: The point on the Post Falls-Dower 115 kV Transmission Line
where the facilities of KEC and Avista are interconnected and, for
scheduling purposes, the AVA.SYS point of receipt.
Reserved Capacity: 3 MW
Delivering Party: Kootenai Electric Cooperative, Inc.
Point of Delivery
Location:
Reserved Capacity:
Receiving Party:
The point on the Lob-Oxbow 230 kV Transmission Line where
the 230 kV facilities of Idaho Power Company and Avista are
interconnected and, for scheduling purposes, the LOLO point of
delivery.
3 MW
Idaho Power Company
Reserved Capacity
Maximum Amount of Capacity and Energy to be Transmitted:
Three megawatts (3 MW)
Monthly Transmission Charge
(Pursuant to Schedule 7 of the Tariff)
One twelfth of the Annual Transmission Charge, multiplied by the monthly Reserved
Capacity. The Annual Transmission Charge shall be the then-current yearly rate for
Long-Term Firm Point-to-Point Transmission Service. As of the Effective Date, the
yearly rate is $24.00/kW-year, or $2.00/kW-month.
Losses
(Pursuant to Section 15.7 of the Tariff)
Loss Factor is three percent (3%) applied to actual energy transmitted, to be delivered to
Avista at either the Point of Receipt or the Point of Delivery or such other point as may
be mutually agreed upon by the Parties from time to time. Avista shall specify and KEC
shall return its applicable loss return obligation amounts, in whole megawatt increments,
5
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 1
Page 7
for delivery one-hundred and sixty-eight (168) hours following the transmission of such
energy, unless otherwise reasonably specified by Avista.
System Impact and/or Facilities Study Charges
(Pursuant to Section 19 of the Tarift)
None Required
Direct Assignment Facilities Charges
None Required
Designation of Party Subject to Reciprocal Service Obligation
(Pursuant to Section 6 of the Tariff)
Kootenai Electric Cooperative, Inc.
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 1
Page 8
EXHIBIT 2
SPECIFICATIONS AND CHARGES FOR ANCILLARY SERVICES
SchedulinSysteni Control and Dispatch Service
(Pursuant to Schedule I of the Tariff)
As of the date of execution there is no charge for this service.
In the event, pursuant to a filing by Avista that is accepted by the Commission, Avista
establishes a separate ancillary service rate schedule covering Scheduling, System
Control and Dispatch Service requirements, upon its effective date such ancillary service
shall apply.
Reactive Supply and Voltage Control from Generation and Other Sources Service
(Pursuant to Schedule 2 of the Tariff)
As of the date of execution there is no charge for this service.
In the event, pursuant to a filing by Avista that is accepted by the Commission, Avista
establishes a separate ancillary service rate schedule covering Reactive Supply and
Voltage Control from Generation and Other Sources Service requirements, upon its
effective date such ancillary service shall apply.
ReuIation and Frecinency Resoonse Service
(Pursuant to Schedule 3 of the Tariff)
Generator Regulation and Frequency Response Service
(Pursuant to Schedule 3-A of the Tariff, pending before the Commission)
The monthly Generator Regulation and Frequency Response Service Charge shall be at
the then-current Tariff rate. As of the Effective Date, the monthly Generator Regulation
and Frequency Response Service obligation shall be 2.0% of KEC's Reserved Capacity
and the monthly rate for Generator Regulation and Frequency Response Service is
$ 8.94/kW.
Monthly Charge = 0.02 x (3000kW) x ($8.94/kW-month) = $536.40
7
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 1
Page 9
Energy Imbalance Service
(Pursuant to Schedule 4 of the Tariff)
Operating Reserve - Spinning Reserve Service
(Pursuant to Schedule 5 of the Tariff)
The monthly Operating Reserve - Spinning Reserve Service Charge shall be at the then-
current Tariff rate. As of the Effective Date, the monthly Operating Reserve Spinning
Reserve Service obligation shall be 3.5% of KEC's thermal generation located within
Avista's Control Area and the monthly rate for Spinning Reserve Service is 58.941kW.
Monthly Charge = 0.035 x (3000kW) x (58.94/kW-month) = $938.70
Operating Reserve - Supplemental Reserve Service
(Pursuant to Schedule 6 of the Tariff)
The monthly Operating Reserve - Supplemental Reserve Service Charge shall be at the
then-current Tariff rate. As of the Effective Date, the monthly Operating Reserve -
Supplemental Reserve Service obligation shall be 3.5% of KEC's thermal generation
located within Avista's Control Area and the monthly rate for Spinning Reserve Service
is 58.941kW.
Monthly Charge = 0.035 x (3000kW) x ($8.94/kW-month) = $938.70
Generator Imbalance Service
(Pursuant to Schedule 9 of the Tariff)
KEC may elect to settle generator imbalance deviations within Deviation Band I either
by the return of energy or by settling financially. K.EC may change such election no
more often than once per any one-year period and such change shall only become
effective upon the first day of a specified month. KEC shall provide at least ninety (90)
days' notice prior to any such change in election.
KEC elects to initially settle generator imbalance deviations within Deviation Band 1
financially.
Hourly imbalance deviations within Deviation Band 1 settled financially shall be settled
pursuant to Schedule 9 and the then-current Hourly Pricing Proxy.
UM 1572
Kootenai Electric Cooperative, inc.
Elliott Stay Affidavit Exhibit I
Page 10
OPUC DOCKET NO. UM 1572
ELLIOTT AFFIDAVIT IN SUPPORT OF STAY
EXHIBIT 2
IJ
ifl*HRDOiN iOLJi*.RY'
ATTORNEYS AT LAW
Tel; 208.988-7900 9a, 208-938-7904
P.O. Box 7218 Boise, ID 83707 - 515 N. 27th St. Boise, ID 83702
June 1, 2012
Via Elechyngk Mail
Donovan Walker
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Re: Kootenai Electric Cooperative, Inc.'s qualifying facility
Mr. Walker,
As you know, Kootenai Electric Cooperative, Inc. and Idaho Power have been unable to agree on
the location of the point of delivery to which Kootenai would be able to deliver its qualifying
facility output to Idaho Power over the 230 kilovolt Lob -Oxbow line. Specifically, we have
been unable to agree whether that point is in Idaho or in Oregon. Kootenai has requested a
Long-Term Firm Point-to-Point Transmission Service Agreement that it believes would meet the
requirements of the executed Schedule 85 power purchase agreement provided to Idaho Power
on December 27, 2011. Avista has tendered an executable transmission agreement to Kootenai,
which I have attached. Kootenai will need to decide whether the sign the agreement within 15
days. Could you please respond as to whether this tendered agreement resolves Idaho Power's
concern, and satisfies Idaho Power that Kootenai will deliver to a point in Oregon?
Thank you in advance for your prompt response.
Very truly yours,
Gregory M. Adams
RICHARDSON AND O'LEARY PLLC
Attorney for Kootenai Electric Cooperative, Inc.
cc: Jason Williams, Idaho Power Attorney
Lisa Rackner, Idaho Power Attorney
Adam Lowney, Idaho Power Attorney
Doug Elliott, Kootenai Electric Cooperative, Inc.
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 2
Page 1
A,isla Contract No. PV-TRI2-1 119
LONG-TERM FIRM POINT-TO-POINT TRANSMISSION SERVICE
AGREEMENT
under
AVISTA CORPORATION'S
OPEN ACCESS TRANSMISSION TARIFF
FERC ELECTRIC TARIFF, VOLUME NO.8
This LONG-TERM FIRM POINT-TO-POINT TRANSMISSION SERVICE
AGREEMENT made and entered into this - day of 2012, by and between
AVISTA CORPORATION ("Avista") and KOOTENAI ELECTRIC COOPERATIVE,
INC. ('I(EC"), which hereinafter may be referred to individually as "Party" or
collectively as "Parties".
WITNES SETH
-4011-WHEREAS, Avista provides Firm Point-to-Point Transmission Service over its
Transmission System under Avista's Open Access Transmission Tariff and
WHEREAS, KEC desires to receive Long-Term Firm Point-to-Point
Transmission Service under Avista's Open Access Transmission Tariff, and
NOW THEREFORE, the Parties agree as follows:
Section 1 - Definitions
Unless otherwise defined herein, all capitalized terms shall have their respective
meanings as set forth in Avista's Open Access Transmission Taiiff, FERC Electric Tariff,
Volume No. 8 ("Tariff"). KEC shall be the Transmission Customer as such term is used
in the Tariff and Avista shall be the Transmission Provider as such term is used in the
Tariff.
Section 2- Standard Provisions
2.1 Terms and Conditions: The terms and conditions under which Long-Term Firm
Transmission Service is offered and accepted are pursuant to this Service
Agreement and to the Tariff. The Tariff is hereby incorporated by thu reference
and made a part of this Service Agreement. Avista may change the terms and
conditions of the Tariff upon, and only upon, approval by the Commission
pursuant to a filing by Avista.
2.2 Completed Aoplication; Avista has determined that KEC is deemed to have a
Completed Application for Firm Point-to-Point Transmission Service under the
Tariff.
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 2
Page 2
2.3 Application Deposit; KEC has provided to Avista an Application deposit in
accordance with the provisions of Section 17.3 of the Tariff.
2.4 System J.mvact and Facilities Studies: Study Agreements for a System Impact
Study and/or a Facilities Study are not required for the Application dated May 4,
2012.
Section 3 -Term and Regulatory Filing
3.1 Effective Date and Filing: This Service Agreement shall be effective on the
Service Commencement Date of September 1, 2012 or such other date as may be
designated by the Commission when accepted for filing ("Effective Date").
Avista shall file this Service Agreement with the Commission as a Service
Agreement under the Tariff.
32 Termination of Agreement: This Service Agreement shall remain in effect
through August 31, 2017,
Section 4- Long-Term Finn Point-to-Point Transmission Servi
Commencing on the Effective Date Avista shall provide, and KEC shall take and
pay fbi', Long-Term Firm Point-to-Point Transmission Service pursuant to the Tariff.
Exhibit I to this Service Agreement lists the Points of Receipt and Points of Delivery, the
amounts of Reserved Capacity at the Points of Receipt and Points of Delivery and
applicable charges for Long-Term Firm Point-to-Point Transmission Service.
Section 5 - Other Servi
Commencing on the Effective Date Avista shall provide, and KEC shall take and
pay for all applicable Ancillary Services. The amounts of such services, specific terms
and conditions associated with such services and the charges for such services are listed
in Exhibit 2 to this Service Agreement.
Section 6- Construction of Facilities
Construction of Direct Assignment Facilities or Network Upgrades are not
required for Firm Transmission Service to be provided pursuant to this Service
Agreement-
2
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 2
Page 3
Section 7 - Billina and Payment
Billing and payment for all services provided under this Service Agreement shall
be pursuant to Section 7 of the Tariff. Bills sent to KEC shall be sent to:
Attention: Accounts Payable
Kootenai Electric Cooperative, Inc.
2451 W. Dakota Ave.
Hayden, ID 83835
All payments to Avista shall be wire transferred to the account specified on each
billing invoice.
Section 8 - Miscellaneous Provisions
8.1 Waivers: Any waiver at any time by either Party hereto of its rights with respect
to the other Party or with respect to any matter arising in connection with this
Service Agreement shall not be considered a waiver with respect to any other
default of the same or any other matter.
8.2 Effect of Section Heading: Section headings appearing in this Service
Agreement are inserted for convenience of reference only and shall not be
construed to be interpretations of the text of this Service Agreement.
8.3 Notices: Any written notice or request made to Avista under this Service
Agreement shall be directed to:
Attention: Manager, Ttansmission Services
Avista Corporation
1411 East Mission Avenue
Spokane, Washington 99202-1902
or
P. 0. Box 3727
Spokane, Washington 99220-3127
Any written notice or request made to KEC under this Service Agreement shall be
directed to:
Attention: Manager of Engineering
Kootenai Electric Cooperative, Inc.
2451 W. Dakota Ave.
Hayden, ID 83835
3
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 2
Page 4
IN WITNESS WHEREOF, the Parties hereto have caused this Service Agreement to be
executed in their respective names by their duly authorized representatives as of the date
first noted above.
AVISTA CORPORATION
By:
Jeff S chiect
Senior Manager, FERC Policy and Transmission Services
Signed this 31st day of May, 2012
KOOTENAI ELECTRIC COOPERATIVE rNC.
By.
Doug Elliott
General Manager
Signed this _ day of ,2012
4
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 2
Page 5
EXHIBIT 1
SPECIFICATIONS AND CHARGES FOR
LONG-TERM FIRM POINT-TO-POINT TRANSMISSION SERVICE
Point of Receipt
Location: The point on the Post Falls-Dower 115 kV Transmission Line
where the facilities of KEC and Avista are interconnected and, for
scheduling purposes, the AVA.SYS point of receipt.
Reserved Capacity: 3 MW
Delivering Party: Kootenai Electric Cooperative, Inc.
Point of Deliver
Location: The point on the Lob-Oxbow 230 kV Transmission Line where
the 230 kV facilities of Idaho Power Company and Aviate are
interconnected and, for scheduling purposes, the LOLO point of
delivery.
Reserved Capacity: 3 MW
Receiving Party: Idaho Power Company
Reserved Capacity
Maximum Amount of Capacity and Energy to be Transmitted:
Three megawatts (3 MW)
Monthly Transmission Charge
(Pursuant to Schedule 7 of the Tariff)
One twelfth of the Annual Transmission Charge, multiplied by the monthly Reserved
Capacity. The Annual Transmission Charge shall be the then-current yearly rate for
Long-Term Firm Point-to-Point Transmission Service. As of the Effective Date, the
yearly rate is S24.00/kW-year, or $2.00JkW-month.
Losses
(Pursuant to Section 15.7 of the Tariff)
Loss Factor is three percent (3%) applied to actual energy transmitted, to be delivered to
Avista at either the Point of Receipt or the Point of Delivery or such other point as may
be mutually agreed upon by the Parties from time to time. Avista shall specify and KEC
shall return its applicable loss return obligation amounts, in whole megawatt increments,
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 2
Page 6
for delivery one-hundred and sixty-eight (168) hours following the transmission of such
energy, unless otherwise reasonably specified by Avista.
System Impact and/or Pac1litie Study Charzes
(Pursuant to Section 19 of the Tariff)
None Required
Direct Assigiunent Facilities Charaes
None Required
Desia.nalion of Party Subject to Reciprocal Servke Obffiat(on
(Pursuant to Section 6 of the Tariff)
Kootenai Electric Cooperative, Inc.
6
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 2
Page 7
EXHIBIT 2
SPECIFICATIONS AND CHARGES FOR ANCILLARY SERVICES
Schodulinu, System Control and Dispatch Service
(Pursuant to Schedule I of the Tariff)
As of the date of execution there is no charge for this service.
In the event, pursuant to a filing by Avista that is accepted by the Commission, Avista
establishes a separate ancillary service rate schedule covering Scheduling. System
Control and Dispatch Service requirements, upon its effective date such ancillary service
shall apply.
Reactive Supnly and Voltage Control from Generation and Other Sources Service
(Pursuant to Schedule 2 of the Tariff)
As of the date of execution there is no charge for this service.
In the event, pursuant to a filing by Avista that is accepted by the Commission, Avista
establishes a separate ancillary service rate schedule covering Reactive Supply and
Voltage Control from Generation and Other Sources Service requirements, upon its
effective date such ancillary service shall apply.
Reaulation and Freuueacv Response Service
(Pursuant to Schedule 3 of the Tariff)
Generator Regulation and Frequency Response Service
(Pursuant to Schedule 3-A of the Tariff, pending before the Commission)
The monthly Generator Regulation and Frequency Response Service Charge shall be at
the then-current Tariff rate. As of the Effective Date, the monthly Generator Regulation
and Frequency Response Service obligation shall be 2.0% of KEC's Reserved Capacity
and the monthly rate for Generator Regulation and Frequency Response Service is
58.941kW.
Monthly Charge = 0.02 x (3000kW) x ($8.94/kW-month) = $536.40
7
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 2
Page 8
Energy Imbalance Scrvice
(Pursuant to Schedule 4 of the Tariff)
Oneratin Reserve - Spunning Reserve Service
(Pursuant to Schedule 5 of the Tariff)
The monthly Operating Reserve - Spinning Reserve Service Charge shall be at the then-
current Tariff rate. As of the Effective Date, the monthly Operating Reserve Spinning
Reserve Service obligation shall be 3.5% of KEC's thermal generation located within
Avista's Control Area and the monthly rate for Spinning Reserve Service is S8.94/kW.
Monthly Charge = 0.035 x (3000kW) x ($8.94/kW-month) = $938.70
Operating Reserve - Supplemental Reserve Service
(Pursuant to Schedule 6 of the Tariff)
The monthly Operating Reserve * Supplemental Reserve Service Charge shall be at the
then-current Tariff.rate. As of the Effective Date, the monthly Operating Reserve -
Supplemental Reserve Service obligation shall be 3.5% of KEC's thermal generation
located within Avista's Control Area and the monthly rate for Spinning Reserve Service
is $8.94/kW
Monthly Charge = 0.035 x (3000kW) x ($8.94/kW-month) = $938.70
Generator Imbalance Service
(Pursuant to Schedule 9 of the Tariff)
KEC may elect to settle generator imbalance deviations within Deviation Band 1 either
by the return of energy or by settling financially. KEC may change such election no
more often than once per any one-year period and such change shall only become
effective upon the first day of a specified month. KEC shall provide at least ninety (90)
days' notice prior to any such change in election.
KEC elects to initially settle generator imbalance deviations within Deviation Band I
financially,
Hourly imbalance deviations within Deviation Band 1 settled financially shall be settled
pursuant to Schedule 9 and the then-current Hourly Pricing Proxy,
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 2
Page 9
OPUC DOCKET NO. UM 1572
ELLIOTT AFFIDAVIT IN SUPPORT OF STAY
EXHIBIT 3
HO
PNER®
An IDACORP Company
DONOVAN E. WALKER
Lead Counsel
dwpIkeridahopower.com
June 8, 2012
VIA ELECTRONIC & U.S. MAIL
qreg(riChardsoflandolearv.com
Gregory M. Adams
RICHARDSON & O'LEARY, PLLC
515 North 27th Street
P.O. Box 7218
Boise, Idaho 83707
Re: Response to June 1, 2012, Letter Regarding Kootenai Electric
Cooperative, Inc. ('Kootenai")
Mr. Adams:
In response to your letter of June 1, 2012, the Long-Term Firm Point-to-Point
Transmission Service Agreement tendered by Avista Corporation ("Avista") that you
referenced and attached to your letter does not change Idaho Power Company's ("Idaho
Power") position, as previously communicated to you starting on November 3, 2011,
and set forth in the subsequent pleadings filed with the Idaho Public Utilities
Commission and the Public Utility Commission of Oregon. The only possible way for
Avista to deliver Kootenai's output to Idaho Power across the Lob-Oxbow path is by
delivering to the only existing, designated Point of Delivery between Idaho Power and
Avista on that path, which is the Lolo substation. The additional language that you have
insisted that Avista include in the description of the point of delivery in the proposed
Long-Term Firm Point-to-Point Transmission Service Agreement does nothing to
change this fact, and does nothing to change the fact that Kootenai's output is delivered
to Idaho Power's Control Area, and Balancing Area Authority at the Lolo substation, in
the state of Idaho. Past the Lolo substation, Idaho Power has complete control and
responsibility for this energy; Avista does not.
With regard to your insinuation that Idaho Power is somehow responsible for
your decision about whether to execute the Long-Term Firm Point-to-Point
Transmission Service Agreement tendered by Avista within the required fifteen (15)
days, please let me reiterate from my December 29, 2011, letter that, "Any such actions
that Kootenai decides to take with regard to its generation project is done of its own
UM 1572 1221 W. Idaho St. (83702)
.Kootenai Elect jative, Inc.
Elliott Stay Affidavit Exhibit 3
Page 1
Gregory M. Adams
June 8, 2012
Page 2 of 2
volition and at its own risk..... Idaho Power is not responsible for the consequences
of Kootensi's decisions regarding how it pursues the development of its generation
project."
Since r y,
Donovan E. Walker
DEW:csb
cc: Randy Aliphin (via e-mail)
Jason Williams (via e-mail)
Tess Park (via e-mail)
Lisa Rackner (via e-mail)
Adam Lowney (via e-mail)
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 3
Page 2
OPUC DOCKET NO. UM 1572
ELLIOTT AFFIDAVIT IN SUPPORT OF STAY
EXHIBIT 4
IDAHO POWER®
An IDACORP Company
June 8, 2012
VIA ELECTRONIC & U.S. MAIL
Jeff Schiect
Manager, Transmission Services
Avista Corporation
1411 East Mission Avenue
P.O. Box 3727
Spokane, Washington 99220-3727
Re: Kootenai Electric Cooperative, Inc.'s Long-Term Firm Point-to Point Transmission
Service Agreement
Dear Mr. Schiect:
On June 1, 2012, Idaho Power Company ("Idaho Power") received notification from Kootenai
Electric Cooperative, Inc.'s ("Kootenai") attorney that Avista Corporation ("Avista") has
provided Kootenai an executable Long-Term Firm Point-to-Point Service Agreement ("LTSA").
Kootenai provided Idaho Power a copy of the LTSA. In the LTSA, Avista provides for a Point
of Delivery ("POD") defined as "The point on the Lob-OXBOW 230 kV Transmission Line
where the 230kV facilities of Idaho Power Company and Avista are interconnected and, for
scheduling purposes, the LOLO point of delivery."
As you know, Idaho Power is required to post applicable PODs and Points of Receipt ("PORs")
on its OASIS and register those POD s/PORs in the TSIIJ directory with NERC. Idaho Power
wants to confirm with Avista that the POD between Idaho Power's and Avista's transmission
systems is in fact the Lolo substation, which is designated as LOLO on Idaho Power's OASIS,
and that the energy Avista will be delivering to Idaho Power pursuant to the LTSA will indeed
be delivered to the Lolo substation, as the Lolo substation is Idaho Power's Control Area
boundary (designated as LOLO on Idaho Power's OASIS) and the location at which Idaho
Power assumes all responsibility for scheduling and balancing energy on its transmission system
pursuant to FERC, NERC, WECC, and other applicable regulations.
Because the language in the LTSA defines the POD as something other than what is designated
on Idaho Power's OASIS, Idaho Power has concerns that either Avista and/or Kootenai may be
requesting that energy is delivered to Idaho Power at someplace other than the POD of LOLO
designated on Idaho Power's OASIS. Accordingly, if the LTSA is executed as drafted and filed
with the FERC, Idaho Power would need to intervene to seek clarification as to confirm that the
POD is indeed the Lolo substation.
While Idaho Power's OATT does allow Network Customers to request new PORs/PODs, it does
not allow Point-to-Point transmission customers to request new PORs/PODs. Neither Avista nor
UM 1572 1221W. Idaho St. (83702)
Kootenai Elect jative, Inc.
Elliott Stay Affidavit Exhibit 4
Page 1
Jeff Schiect
June 8, 2012
Page 2 of 2
Kootenai is an Idaho Power Network Customer. Accordingly, Idaho Power's OATT does not
allow either Avista or Kootenai to deliver energy to Idaho Power's transmission system at any
place other than the PODs designated on Idaho Power's OASIS, consistent with FERC's non-
discriminatory open access requirements. Thus, Idaho Power will only accept energy from
Avista at the POD designated as LOLO, which is the Lolo substation.
Lastly, as you may know, Idaho Power is currently engaged in litigation with Kootenai at the
Public Utility Commission of Oregon regarding Kootenai's Fighting Creek Landfill qualifying
facility generating project ("Kootenai Project"). The LISA is the mechanism by which the
Kootenai Project is proposing to deliver energy to Idaho Power. At issue in that case is the
location at which Kootenai will deliver energy to Idaho Power. While the issues in that case do
not involve Avista, the relationship between Idaho Power and Avista as adjacent transmission
providers and Balancing Areas is implicated by the LISA. As a transmission provider, Idaho
Power has an obligation to ensure it is providing non-discriminatory and open access to all
requesting generators as well as operate and maintain its transmission system in accordance with
FERC, NERC, and WECC regulations.
Accordingly, please confirm in writing within ten (10) calendar days that the LTSA is not
requesting a POD for the delivery of energy from Avista to Idaho Power other than the OASIS
designated POD of LOLO, which is the Lolo substation.
Very wily yours,
Tessia Park
Director Load Serving Operations
cc: Michael Andrea, Avista (via e-mail)
Donovan Walker, Idaho Power (via e-mail)
Jason Williams, Idaho Power (via e-mail)
Greg Adams, Richardson & O'Leary, Counsel for Kootenai (via e-mail)
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 4
Page 2
OPUC DOCKET NO. UM 1572
ELLIOTT AFFIDAVIT IN SUPPORT OF STAY
EXHIBIT 5
ATTORNEYS AT LAW
Tx] 208-938.7900 £'.x 208-938-7904
P.O. Box 7218 Boxc, 112 83707 - 515 N. 27th St. 8ois, ID 83702
June 11, 2012
Via U.S. Mail and Electronic Mail
Michael G. Andrea
Avista Corporation
1411 East Mission Avenue
Spokane, Washington 99202
michae1.andreaiavistacoro.com
Re: Kootenai Electric Cooperative's LTF Point-to-Point Transmission Request;
Request for Filing of Unexecuted Agreement under § 15.3 (TSR # 76877961)
Mr. Andrea:
I write on behalf of Kootenai Electric Cooperative, Inc. in response to Avista' s tender of an
executable Long-Term Firm Point-to--Point Transmission Service Agreement ("LTF Point-to-
Point Agreement"). Kootenai appreciates A.vista's efforts to meet Kootenai's needs with regard
to this request under Avista's Open Access Transmission Tariff ("OATT").
As you know, Kootenai seeks to transmit the output from its Fighting Creek qualifying facility
("QF) all the way across Avista's Transmission System to the point of interconnection with
Idaho Power on the 230 kilovolt Lob-Oxbow line near Imnaha, Oregon. Because the Lob-
Oxbow line crosses the Idaho-Oregon border, Kootenai desires the LTF Point-to-Point
Agreement include a description of the precise location of the Point of Delivery in Oregon. For
Kootenai's QF sale to Idaho Power, the state wherein the Point of Delivery is located will inform
several issues, including which state's QF tariffs apply, which state's tax laws apply, which
state's business organization laws apply, and other similar matters.
Kootenai has requested that the LTF Point-to-Point Agreement contain more specificity in
describing the Point of Delivery than merely the non-specific posted path used on Avista's Open
Access Same Time Information System ("OASIS") website —which is "AVA.SYS to LOLO."
The circumstances here warrant greater specificity because (1) the posted path to LOLO includes
all facilities connecting Idaho Power's and Avista's systems,' and (2) in this case Idaho Power's
and A-vista's systems are connected by a 108-mile long 230 kilovolt line running from Avista's
Lolo Substation in Idaho to Idaho Power's Oxbow Substation in Oregon. The name used for the
posted path on OASIS therefore presents some ambiguity as to the precise location of the Point
18 C.F.R. § 376(b)(lXiv).
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 5
Page 1
Mr. Michael Andrea
June 11, 2012
Page 2
of Delivery.
Kootenai understands the precise Point of Delivery to be the point specified as Idaho's Engineer
Station 1600 plus 97.3 (on the section line between Sections 16 and 21, Township 1 North,
Range 48 East, W M) near Imnaha, Oregon. Kootenai bases this understanding on several facts
obtained from Federal Energy Regulatory Commission ("FERC") filings and communication
with Idaho Power, which include:
• The point in change of ownership on the Lob-Oxbow line is the point near
Imnaha, Oregon.
• The Point of Delivery specified in the 1958 Interconnection Agreement between
Idaho Power and Avista on file with FERC is defined as the point in change in
ownership - here, the point near Irnnalia, Oregon.
• The 1958 Interconnection Agreement calls for line losses to be imputed to the
Point of Delivery - again, the point near Imnaha, Oregon.
• Although the metering equipment is located at the Lolo , Substation, the utilities
currently impute line losses to Avista up to the point near linnaha, Oregon.
• The Lolo-Irnnaha section of the line is included in the rate base used by Avista to
calculate transmission rates and line losses which Kootenai will pay Avista for
Point-to-Point transmission service to Idaho Power's system.
• In FERC filings regarding the line, Avista and Idaho Power have stated that
transmission capacity over the Lolo to Inmaba section of the line has been and
will be posted on Avista' s OASIS as a part of Avista' s Transmission System.
FERC Docket No. EC01-32.
• A generator interconnecting to the line at any point between the Lolo Substation
and Inmaha would do so with Avista pursuant to Avista' s OATT.
In response to Kootenai's LTF Point-to-Point Agreement specifying the point of interconnection
near Imnaha, Oregon, Avista tendered an executable LTF Point-to-Point Agreement, which
described the Point of Delivery as follows:
The point on the Lob-Oxbow 230 kV Transmission Line where the 230 kV
facilities of Idaho Power Company and Avista are interconnected, and, for
scheduling purposes, the LOLO point of delivery.
Kootenai appreciates Avista's attempt to accommodate Kootenai's request. However, as you
know, Idaho Power appears to remain unconvinced Kootenai may use Avista's Transmission
System for Point-to-Point Service up to the point of interconnection near Imnaha, Oregon, and
instead believes Kootenai may not deliver past Avista's Lolo Substation. Kootenai is therefore
forced to request that Avista insert the term. "near Imnaha, Oregon" into the definition of Point of
Delivery, such that it reads:
The point on the Lob-Oxbow 230 kV Transmission Line where the 230 kV
facilities of Idaho Power Company and Avista are interconnected near Imnaha,
Oregon, and, for scheduling purposes, the LOLO point of delivery.
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 5
Page 2
Mr. Michael Andrea
June 11, 2012
Page 3
We are aware of instances where we believe Avista has provided this level of detail in describing
a Point of Delivery in a LTF Point-to-Point Agreement in the recent past. Two such agreements
utilizing far more description than the names used for the OASIS posted path are on file with
Seattle City Light and Tacoma Power in FERC Docket No. ER-08-625.
In light of Kootenai's request to include the term "near hnnaha, Oregon" in the definition of the
Point of Delivery and Idaho Power's position regarding its receipt of the delivery, Kootenai
formally requests that Avista file the unexecuted agreement with FERC pursuant to Section 15.3
of Avista's OATT. That would enable all interested parties to seek clarity from FERC.
Kootenai would appreciate any efforts Avista may be able to make to file the unexecuted
agreement prior to expiration of the 30-day time limit specified in the OATT. Please let me
know if you have any questions.
Very truly yours,
12 - RICHARDSON AND O'LEARY, PLLC
Attorneys for Kootenai Electric Cooperative, Inc.
cc (email only): Doug Elliott, Kootenai Electric Cooperative, Inc.
Jeff Schiect, Avista Transmission
Warren Clark, Avista Transmission
UM 1572
Kootenai Electric Cooperative, Inc.
Elliott Stay Affidavit Exhibit 5
Page 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 20th day of June, 2012, a true and correct copy of
the within and foregoing KOOTENAI'S FACTUAL UPDATE FILING AND REQUEST
TO STAY IDAHO PUBLIC UTILITIES COMMISSION DETERMINATION was
served as shown to:
Jean Jewell X Hand Delivery
Idaho Public Utilities Commission U.S. Mail, postage pre-paid
472 West Washington - Facsimile
Boise, ID 83702 - Electronic Mail
Kris Sasser .. Hand Delivery
Idaho Public Utilities Commission U.S. Mail, postage pre-paid
472 West Washington - Facsimile
Boise, ID 83702 - Electronic Mail
Donovan Walker X Hand Delivery
Jason Williams U.S. Mail, postage pre-paid
Idaho Power Company - Facsimile
1221 West Idaho Street - Electronic Mail
Boise, ID 83702
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