20101213_3181.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:MA TT ELAM
DATE:DECEMBER 9, 2010
SUBJECT:AVISTA'S TARIFF ADVICE - ADV 10-05-E & ADV 10-04-
On November 5 , 2010, Avista filed a Tariff Advice requesting the Commission approve
the cancellation of Schedule 156 and approve changes to Schedules 150, 112, and 132. The
Company also requested the Commission approve updated Index Pages with the addition of
Schedules 99 and 199, and the elimination of Schedules 121 and 122. Most of the proposed
changes result from the Commission s Order in the Company s recent rate case, Case Nos.
A VU-I0-0l and A VU-lO-O1. The Company requests an effective date of January 1 2011.
THE TARIFF ADVICE
In this Tariff Advice, A vista proposes to:
1) Cancel Schedule 156 and combine the rate with Schedule 150;
2) Clarify the language in Schedule 150;
3) Add clarifying language to Schedules 112 and 132;
4) Add Schedules 99 and 199 to the electric and natural gas Index Pages; and
5) Eliminate Schedules 121 and 122 from the natural gas Index Page.
STAFF REVIEW
Staff reviewed Avista s Tariff Advice and determined that most changes result from the
Company s rate case. Schedule 150 was suspended because of the rate case, however because the
PGA superseded the rates approved in the rate case, A vista created Schedule 156 to make interim
adjustments to its gas costs. Rate case Order No. 32072 was issued September 2010 so Avista
proposes to eliminate its interim Schedule 156 and combine the gas costs with Schedule 150, the
primary tariff related to Purchase Gas Adjustments (PGA). Further, Avista proposes to clarify the
DECISION MEMORANDUM DECEMBER 9 2010
Purpose" section of Schedule 150 to more accurately describe the tariff as passing through the
Company s "purchasing and transportation" costs, not only the costs "imposed by the Company
suppliers." Staff believes clarification of the language in Schedule 150 is appropriate, and has
confirmed that its reconciliation with Schedule 156 reflects the approved rates in the Company
PGA (Case No. A VU-I0-03).
The gas rate adjustment (Schedule 155) is calculated individually for Schedules 112 and
132, so the Company proposes to add clarifying language to the changes it made during the rate
case. Specifically, Avista proposes addihglanguage to the front of these tariffs indicating that
each customer s gas rate adjustment is calculated individually.
During the rate case, the Company added Schedules 99 and 199 to refund customers the
Deferred State Income Tax (DSIT), so the Company proposes updating the Index Pages to reflect
these additions. Further, Avista proposes removing Schedules 121 and 122 from the Index Pages
because the tariffs were cancelled as part of Case No. A VU-08-0 1. After reviewing the Tariff
Advice, Staff believes all the changes are appropriate.
STAFF RECOMMENDATION
Staff recommends that Avista Utilities' Tariff Advice be approved and the associated tariff
sheet revisions be allowed to go into effect on January 1 , 2011. Staff believes that the proposed
changes satisfy the Commissions Rule of Procedure for Tariff Advices, Rule 134, IDAP A
31.01.01.134.
COMMISSION DECISION
Does the Commission wish to approve the changes set forth in this Tariff Advice?
M tt Elam
i:udmemos/Avista schedule 156 cancellation
DECISION MEMORANDUM DECEMBER 9 2010