BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
 
 
In the Matter of the Application of
AVISTA CORPORATION
for Authority to Sell its Interest in the Coal-Fired Centralia Power Plant.	
	Docket No. UE-991255
	ORDER
	RE: EXEMPT WHOLESALE GENERATOR STATUS 

MEMORANDUM

 On August 6, 1999, Avista Corporation (Avista or the Company) filed an 
Application for “Authority to Sell its Interest in the Coal-Fired Centralia 
Power Plant.”  Avista’s application seeks an Order under chapter 80.12 RCW 
authorizing the sale of its 15 percent ownership interest in the 1340-megawatt 
Centralia Power Plant (Centralia) to TECWA Power, Inc.  The Application also 
seeks authorization to defer treatment of the gain on the sale to a future rate 
proceeding.

 TECWA is a Washington corporation and a subsidiary of TransAlta Corporation, 
headquartered in Calgary, Alberta, Canada. The parent company, TransAlta, is a 
Canadian energy company with $5 billion (Canadian) in assets and is the leading 
producer of independent power in Canada.   TECWA has agreed to  purchase 
Centralia for $425,598,000 and the adjacent Centralia Mine for $101,400,000.

 As set forth in Avista’s application, TECWA Power, Inc., intends to seek 
Federal Energy Regulatory Commission (“FERC”) approval to own and operate the 
Centralia facilities with exempt wholesale generator status.  Because the 
Centralia Power Plant is currently in Avista’s rate base for its jurisdictional 
sales of electricity in this state, 15 U.S.C. § 79z-5a(c) requires that TECWA 
include with its EWG application to FERC a statement that the Washington 
Utilities and Transportation Commission has determined that allowing the 
facility to be a wholesale facility operated by an EWG: “(1) will benefit 
consumers; (2) is in the public interest; and (3) does not violate state law.” 
    
         
FINDINGS
THE COMMISSION FINDS:
1. Avista is engaged in the business of furnishing electric and gas service 
within the state of Washington as a public service company, and is subject to 
the jurisdiction of this Commission. 

2. Avista filed an Application on August 6, 1999, for an order under chapter 
80.12 RCW authorizing the sale of Avista’s ownership interests in the Centralia 
Power Plant to TECWA Power, Inc.  The Application also sought a determination 
from the Commission that allowing these facilities to be operated by an exempt 
wholesale generator meets the requirements of 15 U.S.C. § 79z-5a(c).

3. If the Commission eventually approves the sale of the Centralia Power Plant, 
allowing the purchaser to operate the Centralia Power Plant as an EWG will 
benefit consumers and is in the public interest.  Under these conditions, 
allowing the purchaser to operate the Centralia Power Plant as an EWG would not 
violate state law.

ORDER

WHEREFORE, THE COMMISSION HEREBY ORDERS:

1. Avista’s application for a determination under 15 U.S.C. § 79z-5a(c) is 
granted, conditioned upon a Commission order approving the proposed sale of the 
Centralia Power Plant.  If the Commission does not ultimately issue an order 
approving the proposed sale, this EWG determination will be null and void.

2. This order shall in no way affect the authority of this Commission over 
rates, services, accounts, evaluations, estimates, or determination of cost or 
any matters whatsoever that may come before it, nor shall anything herein be 
construed as an acquiescence in any estimate or determination of cost or any 
valuation of property claimed or asserted.

3. The Commission retains jurisdiction over the subject matter and Avista 
Corporation to effect the provisions of this order.

 DATED at Olympia, Washington, and effective this  13th day of October, 1999.
 WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

     MARILYN SHOWALTER, Chairwoman

     RICHARD HEMSTAD, Commissioner

     WILLIAM R. GILLIS, Commissioner