BOISE, Idaho — The Idaho Public Utility Commission has denied a request from an electric and timber utility company that would have amended its power purchase agreement.
Avista Utilities and Stimson Lumber requested the commission’s approval to amend the power purchase agreement to account for expected periods when the lumber company will not operate between Jan. 1, 2024, and Dec. 31, 2025. Stimson told Avista that the lumber company expects there will be extended periods when it will not operate. However, their PPA requires Stimson to pay Avista utility usage fees during the entire term of the PPA.
The proposed amendment the two presented to the commission in their application would change the requirements and allow Stimpson not to pay facility usage fees for months the lumber company was not operating.
Commission staff expressed concern that the amendment would have a negative impact on other Avista ratepayers when the timber company is out of business. Facilities fees are based on an annual amount of $8,448, or $704 per month. If the utility usage rate was charged at a monthly rate of $704 for the months only Stimson facilities were used, the annual utility usage fee would be less than the required annual rate of $8,448, with other customers paying the difference.
After reviewing the request, the Commission determined that requesting a modification to the PPA for non-payment of utility charges was not fair, just, or reasonable in certain situations because it would shift cost recovery to other customers. The Commission understood Avista’s desire to charge Stimson a lower rate tied to the months Stimson uses the facilities. However, this type of design would change the purpose of facility usage fees.
Additional information is available at http://puc.idaho.gov/case/Details/7266.
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(tags for translation) Idaho Public Utilities Commission
