20200407Customer Notice.pdf

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Avista Corp.
l4l I East Mission P.O.Box3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
April8,2020
Transport Customer
Address
City, Idaho 83xxx
Via Electronic Mail
RE: Notice of Settlement between Avista Corporation and Clearwater Paper
On November 14,2019, Avista petitioned the Idaho Public Utilities Commission (Commission)
to grant a limited waiver of certain penalty provisions in Schedule 146 of Avista's natural gas
tariff, seeking authorization to enter into settlement discussions with Clearwater Paper
Corporation. On February 7,2020, the Commission approved Avista's Petition in Order No.
34549 (Case No. AVU-G-19-08). As a part of the Commission's order, it stated:
IT IS FURTHER ORDERED that if a settlement agreement is reached, the parties
shall submit the settlement agreernent to the Commission for approval. Additional
notice of the settlement shall be grvento Avistars Idaho transportation customers
by the date the settlement agreement is filed with the Commission. @mphasis
added.)
You are one of Avista's ldaho natural gas transportation customers, and this notice is provide in
accordance with the Commission's directive.
Notice
Clearwater Paper is a customer that takes transportation service under Avista's Idaho Natural Gas
Tariff ("Tariff'). Between February 7,2019 and March 4,2019 ("Relevant Period"), Clearwater
Paper exceeded its nominated gas volumes and, as a result incurred substantial entitlement
penalties under Avista's Tariff. Under the particular circumstances under which Clearwater
Paper's penalties were incurred such penalties a question arose regarding whether such penalties
were unduly burdensome.
RECEIVED
2020 April 7AM11:57
IDAHO PUBLIC
UTILITIES COMMISSION
In February and March 2020, Avista and Clearwater Paper engaged in settlement discussions to
resolve the entitlernent penalties. Avista and Clearwater have entered into a Settlement Agreement
to resolve Clearwater Paper's penalties. The agreed upon penalty amount in the Settlernent
Agreement recognizes the unique circumstances that gave rise to Clearwater Paper's penalties and
is intended to deter future entitlement violations.
On April 7, 2020, Avista filed an application with the Idaho Public Utilities Commission
(Commission) asking for approval of a Settleme,nt Agreement with Clearwater Paper. This
Settlement Agreement resolves all issues associated with any entitlement penalties that were levied
by Avista against Clearwater Paper for exceeding its nominated natural gas volumes during the
Relevant Period.
Additional Information
Avista's petition for approval of the settlement is subject to public review and a Commission
decision. A copy of the petition is enclosed and is available for public review at the offices of both
the Commission and Avista, and on the Commission's website (www.puc.idaho.gov). Customers
may file with the Commission written comments related to the Company's filing. Customers may
also subscribe to the Commission's RSS feed (http:/iwww.puc.idaho.gov/rssfeeds/rss.htm) to
receive periodic updates via e-mail about the case. Copies of the rate filing is also available on our
website, www.myavista. com/rates.
If you would like to submit comments on the proposed settlement, you can do so by going to the
Commission website or mailing comments to:
Idatro Public Utilities Commission
P. O. Box 83720
Boise, ID 83720-0074
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