20070313notice_of_application_order_no_30271.pdf

Office of the Secretary
Service Date
March 13, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION REQUESTING
APPROVAL OF A NATURAL GAS
TRANSPORT A TION SERVICE
AGREEMENT
NOTICE OF APPLICATION
CASE NO. A VU-07-
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 30271
On February 20, 2007, Avista Corporation ("A vista" or "Company ) filed an
Application with the Commission requesting approval of a Natural Gas Transportation Service
Agreement (the "Agreement") between the Company and Potlatch Forest Products Corporation
Potlatch"). This Commission has the jurisdiction over such request pursuant to Idaho Code
61-307 61-622 and 61-623.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that, according to the Application, Avista has been
providing natural gas transportation service to Potlatch's Lewiston, Idaho plant under an existing
agreement since 1993. During that time, Potlatch has increased its efficiency and reduced its
annual natural gas consumption from 64 million therms to 38 million therms. In addition, Avista
has seen considerable load growth in the Moscow/Lewiston area and an increased need for
pipeline capacity. A vista and Potlatch negotiated a capacity release agreement, and Potlatch
expressed its desire to negotiate a new gas distribution agreement as well.
YOU ARE FURTHER NOTIFIED that the initial term of the Agreement is ten years
beginning the day following Commission approval and ending November 30, 2016. The parties
have agreed on charges based upon Potlatch's desire to pay Avista for distribution service in the
future that more reasonably reflects the alternative cost of connecting directly to a different
pipeline, and A vista s desire to retain a reasonable level of distribution charges. Based on
Potlatch's usage in 2006, its annual bill under the existing agreement is $264 000. Under the
Agreement, Potlatch would pay: $185 000 through November 2007; $150 000 from December
2007 through November 2008; $111 000 from December 2008 through November 2009; and
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30271
$74 000 per annum from December 2009 through the end of the Agreement. The Company
believes that the current and projected rate of growth it is experiencing in north Idaho should
offset a portion of the lost revenue/margin received from Potlatch under the existing agreement.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the
Application in this case and has preliminarily determined that the public interest in this matter
may not require a hearing to consider the issues presented, and that the issues raised by the
Application may be processed under Modified Procedure, i., by written submission rather
than by hearing. IDAPA 31.01.01.210-204. The Commission notes that Modified Procedure
and written comments have proven to be an effective means for obtaining public input and
participation.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to Avista s Application and the use of Modified Procedure in this case is
twenty-one (21) days after the service date of this Order. The comment must contain a
statement of reasons supporting the comment. Persons desiring a hearing must specifically
request a hearing in their written comments. Written comments concerning this Application
shall be mailed to the Commission and the Applicant at the addresses reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
Kelly Norwood
Vice President, State and Federal Regulation
A vista Corporation
1411 E. Mission Ave., MSC-
Spokane, W A 99220
E-mail: kelly.norwood~avistacorp.com
472 W. Washington Street
Boise, Idaho 83702-5983
David 1. Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
A vista Corporation
1411 E. Mission Ave., MSC-
Spokane, W A 99220
E-mail: david.meyer~avistacorp.com
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30271
icon, and complete the comment form using the case number as it appears on the front of this
document. These comments must also be sent to A vista at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission may consider the matter on its merits and may
enter its Order without a formal hearing. If written comments or protests are received within the
deadline, the Commission will consider them and in its discretion may set the matter for hearing
or may decide the matter and issue its Order based on the written comments before it. IDAP A
31.01.01.204.
YOU ARE FURTHER NOTIFIED that the Application and Agreement have been
filed with the Commission and are available for public inspection during regular business hours
at the Commission offices or on the Commission s website www.puc.idaho.gov under "File
Room.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code, and specifically Idaho Code gg 61-307, 61-622
and 61-623.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the Application of Avista Corporation be processed
by Modified Procedure, IDAPA 31.01.01.201-204. Persons interested in submitting written
comments in this matter or protesting the use of Modified Procedure must do so no later than
twenty-one (21) days from the issuance ofthis Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30271
DONE by Order of the Idaho Public Utilities Commission at Boise , Idaho this 13M
day of March 2007.
ATTEST:
je . D. Jewell
Commission Secretary
O:A VU-07-
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30271
JJ~
MARSHA H. SMITH, COMMISSIONER