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HomeMy WebLinkAbout20080623_2274.pdfDECISION MEMORANDUM TO:COMMISSIONER REDFORD COMMISSIONER SMITH CO MMISSI 0 NER KEMPTON COMMISSION SECRETARY COMMISSION STAFF LEG AL FROM:WELDON STUTZMAN DEPUTY ATTORNEY GENERAL DATE:JUNE 18 2008 SUBJECT:CASE NO. A VU-08- VISTA CORPORATION'S APPLICATION FOR AN ORDER AUTHORIZING DEFERRAL OF NET REVENUES FROM SALE OF CARBON FINANCIAL INSTRUMENTS On May 22 , 2008 , Avista Corporation filed an Application requesting an order from the Commission authorizing the Company to defer net revenues from the sale of carbon financial instruments (CFls). The revenues result from the sale of credits relating to the reduction in greenhouse gas emissions through a pilot program offered through the Chicago Climate Exchange. Participants in the Exchange are required to reduce greenhouse gas emissions during two phases. The Exchange allows members to sell greenhouse gas credits based on greenhouse gas reductions compared to a baseline. A vista banked credits for 2003 through 2006, and was able to sell surplus Phase 1 CFIs for $2 557 065 , net of the Exchange commissions. In this filing, the Company is requesting an order allowing for the deferral of the net revenue (revenues from sales of CFls, less cost, including membership fees paid to the Exchange ).The net revenues will be allocated to the Company s Washington and Idaho jurisdictions based on the current production/transmission allocation of 64.59% to Washington and 35.41 % to Idaho. The Company requests authority to defer the CFI revenues in Account 254 - Other Regulatory Liabilities. Interest would accrue on the Idaho share of the deferrals at the customer deposit rate. The Company will propose ratemaking treatment of the net revenues and accrued interest in its next general rate case filing or some other proceeding. DECISION MEMORANDUM A vista requests that its Application be processed by Modified Procedure. Staff recommends that A vista s Application for an order authorizing the deferral of net revenues from the sale of CFls be processed by Modified Procedure with 21-day comment period. COMMISSION DECISION Should the Application of A vista for an order authorizing the deferral of net revenues from the sale of CFls be processed by Modified Procedure? t ~- Weldon B. Stutzman Deputy Attorney General bls/M:A VU-O8-02 ws DECISION MEMORANDUM