20070725AVU to Staff 1-3.pdf

Avista Corp.
1411 East Mission PO Box 3727
Spokane, Washington 99220-3727
Telephone [phone]
Toll Free 800-727-9170
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Corp.
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July 24, 2007
Jean Jewell, Secretary
State of Idaho
Idaho Public Utilities Commission
Statehouse
Boise, ID 83720
Re: Avista s Case No. A VU-07-5 and A VU-07-
Dear Ms. Jewell:
Pursuant to IDAP A 31.01.01.228, enclosed for filing are an original and three (3) copies
of Avista s response to "First Production Request of the Commission Staff to Avista
Corporation" dated July 17, 2007.
Any questions regarding this filing should be directed to Susan Baldwin at (208) 769-
1340 or myself at [phone].
Sincerely,
Linda Gervais
Regulatory Compliance
State and Federal Regulation
A vista Utilities
509-495-4975
linda. gervais~avistacorp .com
cc: Dan Graves
VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQ UES TER:
TYPE:
REQUEST NO.
Idaho
A VU-O7-5 A VU-O7-
IPUC
Data Request
DATE PREPARED:
WITNESS:
RESPONDER:
TITLE:
DEPARTMENT:
TELEPHONE:
07/24/2007
Susan Baldwin
Account Executive
Energy Solutions
[phone]
REQUEST:
With the continuing new development in the Sandpoint area, Staffs concern is about stranded
facilities as Avista and other electric suppliers vie for new customers. Please explain what
policies are in place and what planning efforts are employed to assure Avista s customers and the
Commission s Staff that loss of investment, or stranded investment does not occur?
RESPONSE:
Stranded investment is a concern for Avista as the Company currently has no territorial
allocation agreement with Northern Lights which would allow one utility the assurance of all
new meters within a development once a backbone is installed. Currently, the only governing
source is the Idaho Energy Supplier Stabilization Act, which allows both utilities to compete
house by house within residential developments even though one utility has installed all the main
line. Avista has approached Northern Lights to draft such an agreement; however, the current
board at Northern Lights feels the system in place is working adequately. Currently, Avista has
assigned a Competitive Development Specialist. This specialist has extensive training in the
rules surrounding customer choice as outlined in the Idaho Energy Supplier Stabilization Act and
has fostered a good working relationship with Northern Lights which enables Avista to work
cooperatively with them whenever a competitive project arises.
When such a project occurs, a representative of Northern Lights and Avista work cooperatively
to determine which utility is best positioned to provide electric service to the project. Working
with the developer, they review the position of each utilities infrastructure, terrain, difficulty of
installation for each utility, location of the first service entrance and subsequent meters as well as
potential for future expansion.
Currently, allocating customers between Avista and Northern Lights provides the best practical
solution for utilities, the developer and future customers until which time Northern Lights agrees
to enter into a territorial allocation agreement.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.
Idaho
AVU-O7-5 AVU-O7-
IPUC
Data Request
DATE PREPARED:
WITNESS:
RESPONDER:
TITLE:
DEP ARTMENT:
TELEPHONE:
07/24/2007
Susan Baldwin
Account Executive
Energy Solutions
[phone]
REQUEST:
In both cases did Avista and Northern Lights compare exactly how much it would cost each to
provide service to the two new developments , or perform a cost analysis? If so, please provide
those computations.
RESPONSE:
No formal cost estimate was done for either project. The utilities field checked both projects
finding that Northern Lights had existing infrastructure closer to the entrance and location of the
first house within both developments. It was also determined using both field and GIS
measurements that Northern Lights was closer to the majority of the lots within both
developments. In the case of Lakewood Estates, one more determining factor was considered;
from Avista s current infrastructure location in the North West property corner, Avista would
have had a very difficult and costly installation due to the steep, rocky terrain. Northern Lights
would be able to tie to their existing service at Hwy 95 and Ovelane and follow the new road
through the development.
VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.
Idaho
AVU-O7-5 AVU-O7-
IPUC
Data Request
DATE PREPARED:
WITNESS:
RESPONDER:
TITLE:
DEPARTMENT:
TELEPHONE:
07/24/2007
Susan Baldwin
Account Executive
Energy Solutions
[phone]
REQUEST:
In both cases, referring to the areas surrounding each of the new developments, is A vista aware
of any plans for additional developments? Have Avista and Northern Lights discussed who will
provide service to these new customers? If so, please provide a brief description for each of the
planned developments and the factors that determined who would serve the area.
RESPONSE:
The Company is not aware of any future development in either case.