HomeMy WebLinkAbout20200508Decision Memo.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE: MAY 8, 2020
SUBJECT: AVISTA’S PETITION FOR APPROVAL OF A SETTLMENT
AGREEMENT WITH CLEARWATER PAPER CORPORATION; CASE
NO. AVU-G-20-02.
On April 7, 2020, Avista Corporation (“Company”) filed a Petition seeking approval
of a Settlement Agreement with Clearwater Paper Corporation (“Clearwater”). The Company
requests that the Petition be processed by Modified Procedure. Petition at 6.
THE PETITION
The Company represents the Settlement Agreement resolves a disputed penalty that
could have been imposed on Clearwater under the Company’s Idaho Natural Gas Tariff
(“Tariff”). During the period from February 7, 2019 to March 4, 2019, the penalties for
Clearwater’s unauthorized volumes during overrun entitlements were calculated to be $926,202
(“Penalty”). Id. at 1. The Company alleges though that under the unique circumstances that
gave rise to the Penalty, the Company asserts imposing it in the full amount was unduly
burdensome. Id. Under the terms of the Settlement Agreement, the Company and Clearwater
agreed to settle the Penalty for $500,000. Id. at 1-2. The Company asserts that other customers
were not harmed by Clearwater’s entitlement violations, nor was the Company penalized by
Northwest Pipeline. Id. at 4-5. Clearwater has authorized the Company to represent that it
supports the Petition. Id. at 2.
The Company represents it has provided notice of the Settlement Agreement to its
Idaho transportation customers as required by Order No. 34549. Id. at 5.
DECISION MEMORANDUM 2
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Petition and Notice of Modified
Procedure, with comments and reply comments due within twenty-one and twenty-eight days,
respectively, from the service date of the Notice.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Petition and Notice of Modified
Procedure that establishes comments and reply comments must be filed within twenty-one and
twenty-eight days, respectively, from the service date of the Notice?
__________________________
John R. Hammond Jr.
Deputy Attorney General
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