20080201Stipulation.pdf

David J. Meyer
Vice President and Chief Counsel of
Regulatory and Governental Affairs
A vista Corporation
1411 E. Mission Avenue
P. O. Box 3727
Spokane, Washington 99220
Phone: [phone], Fax: [phone]
lR.. t:CFl to . ..-..",
zaua FEB - I ANIJ: 52
!DAj.IO PUBLIC
UTILrnES COMM1SSIOl,
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VIST A CORPORATION, dba A VISTA
UTILITIES, FOR AN ORDER
AUTHORIZING A CHANGE IN
DEPRECIATION RATES
) CASE NO. AVU-E-07-11
) CASE NO. A VU-G-07-03
)
) STIPULATION
)
This stipulation ("Stipulation") is entered into by A vista Corporation (hereafter
"A vista" or "Company") and the Staff of the Idaho Public Utilties Commission ("Staff').
These entities are collectively referred to as the "Paries."
I. INTRODUCTION
1. The terms and conditions of this Stipulation are set forth herein. The Paries
agree that this Stipulation represents a fair, just and reasonable compromise of the issues
raised in this proceeding and that this Stipulation is in the public interest. The Paries
maintain that the Stipulation and its acceptance by the Idaho Public Utilities Commission
("IPUC" or the "Commission") represent a reasonable resolution of issues identified in
the matter. The Paries, therefore, recommend that the Commission, in accordance with
RP 274, approve the Stipulation and all of its terms and conditions without material
change or condition.
II. BACKGROUND
2. On November 1,2007, Avista applied to the Commission for approval of
proposed changes to depreciation rates applicable to the Company's depreciable propert.
The Company requested that the Commission issue an order approving the proposed
changes to depreciation rates to coincide with the Januar 1, 2008 effective date of the
depreciation rate changes in its Washington service territory.
3. No other petitions to intervene were fied in this matter.
4. The Commission is empowered to ascertain and determine the proper and
adequate rates of depreciation of the Company's propert used in the rendering of retail
electric and natual gas service under the provisions of Section 61-525 Idaho Code. Each
utilty under the Commission's jurisdiction is required to conform its depreciation
accounts to the rates so ascertained and determined by the Commission. The Commission
may make changes in such rates of depreciation from time to time as the Commission
may find necessar.
5. The Company last changed its depreciation rates in Idaho effective
September 9,2004, in accordance with Order No. 29602, issued in Case Nos. AVU-E-04-
1 and A VU -G-04-1. In those cases, the Company agreed to adopt Staff s proposal to
synchronize depreciation rates between States, so that Idaho rates would be changed to
agree with rates approved by the Washington Utilties and Transporttion Commission in
Docket No. UE-991606. Those depreciation rates were based on a depreciation study
from 1997.
6. A vista subsequently hired Ganett Fleming, Inc. to undertake a
Depreciation Study (the Study) of its depreciable electric, gas and common plant in
service as of December 31,2004. The objective of this assignment was to recommend
depreciation rates to be utilized by A vista for accounting and ratemaking puroses.
7. On April 26, 2007, Avista fied with the Washington Utilties and
Transporttion Commission (WUTC) a request for electric and natual gas rate increases
in Docket Nos. UE-070804 and UG-070805. The proposed depreciation rates from the
Study were incorporated into those fiings. A Parial Settlement Stipulation between
Avista, Commission Staff, and the other intervenors was filed on October 15,2007, in
which the parties agreed to accept the depreciation rates proposed in the Study, including
a WUTC Staff proposed reduction in the negative net salvage values the Company used
in determining new depreciation rates on four electric accounts, which results in lower
depreciation accrual rates on those accounts than were proposed in the Study. This filing
incorporates those changes. The Settlement Stipulation in Washington was ultimately
approved by the WUTC on December 19,2007.
8. The Paries understand that, for the Company to maintain uniform utilty
accounts, the depreciation rates for system-allocated plant (i.e. production, transmission,
and certain general plant) must be uniform and consistent among the Company's Idaho
and Washington regulatory jurisdictions. In the event different depreciation rates were
ordered in these two states, it would result in multiple sets of depreciation accounts and
records that would need to be adjusted anually for changes in allocation factors, which
would impose a costly administrative burden on the Company and unecessar expense
for the Company's ratepayers.
9. The Company is proposing an effective date that would allow the change
in Idaho depreciation rates to coincide with the Januar 1, 2008 effective date of rates
approved by the WUTC in the Company's recently-concluded Washington general rate
cases, as discussed above.
10. Based upon the settlement discussions among the Paries, as a compromise
of the positions in this case, and for other considerations as set forth below, the Paries
agree to the following terms.
III. TERMS OF THE STIPULATION
11. The Depreciation Study appropriately updates the Company's book
depreciation accrual rates based on all plant-in-service as of December 31, 2006. The
initial results of the Study showed that the Company's current anual depreciation
expense for its Idaho jurisdiction should be increased by approximately $128,000 for
electric propert and decreased by approximately $132,000 for natural gas propert, in
order to set the depreciation accrual rates at the most appropriate level for assets in place
as of December 31,2006. Following IPUC Staffs review of the Study, the Paries have
agreed to an IPUC Staff proposed extension to the remaining service life used in
determining the depreciation rate on one Idaho directly-assigned electric distribution
account (Account No. 367). With the inclusion of this change, the depreciation rate
change results in a net decrease of curent anual depreciation expense of approximately
$668,000 for Idaho electric propert. Attchment A contains a summar of the revised
electric and gas anual depreciation adjustments. Attachment B contains the approved
depreciation rates by plant account. Approval of the Study rates would be for accounting
purposes only and would not impact customer rates at this time. The impact of these
changes to depreciation rates would be reflected in Avista's next general rate case.
12. The Company's Application was processed by means of Modirïed
Procedure and the Paries met to review the Company's proposed changes in depreciation
rates. Based on the exchange of information, Staff has concluded that the proposed
change in depreciation rates should be approved as fied, and with an effective date of
Januar 1,2008.
13. Accordingly, the Depreciation Study recommendations regarding
depreciation rates, as requested, are the proper and adequate current depreciation rates for
the Company. The depreciation rates proposed in the Depreciation Study in its accounts
and records shall coincide with the Januar 1,2008 effective date of the depreciation rate
changes in the state of Washington.
14. The Paries agree the Stipulation represents a compromise of the positions
of the Paries in this case. As provided in RP 274, except to the extent necessar for a
Par to explain before the Commission its own statements and positions with respect to
the Stipulation, all statements made and positions taen in negotiations relating to this
Stipulation shall be confidential and wil not be admissible in evidence in this or any
other proceeding.
15. The Paries submit this Stipulation to the.Commission and recommend
approval in its entirety pursuant to RP 274. Paries shall support this Stipulation before
the Commission, and no Par shall appeal a Commission Order approving the
Stipulation or an issue resolved by the Stipulation. If this Stipulation is challenged by any
person not a par to the Stipulation, the Paries to this Stipulation reserve the right to fie
testimony, cross-examine witnesses and put on such case as they deem appropriate to
respond fully to the issues presented, including the right to raise issues that are
incorporated in the settlements embodied in the Stipulation. Notwithstanding this
reservation of rights, the Paries to this Stipulation agree that they wil continue to support
the Commission's adoption of the terms of this Stipulation.
16. If the Commission rejects any part or all of this Stipulation, or imposes
any additional material conditions on approval of this Stipulation, each Par reserves the
right, upon written notice to the Commission and other Paries to this proceeding, within
14 days of the date of such action by the Commission, to withdraw from this Stipulation.
In such case, no Par shall be bound or prejudiced by the terms of this Stipulation, and
each Par shall be entitled to seek reconsideration of the Commission's order, fie
testimony as it chooses, cross-examine witnesses, and do all other things necessar to put
on such case as it deems appropriate. In such case, the Paries immediately will request
the prompt reconvening of a prehearng conference for puroses of establishing a
procedural schedule for the completion of this case. The Parties agree to cooperate in
development of a schedule that concludes the proceeding on the earliest possible date,
taing into account the needs of the Paries in paricipating in hearngs and preparing
briefs.
17. The Paries agree that this Stipulation is in the public interest and that all
its terms and conditions are fair, just and reasonable.
18. No Par shall be bound, benefited or prejudiced by any position asserted
in the negotiation of this Stipulation, except to the extent expressly stated herein, nor
shall this Stipulation be construed as a waiver of the rights of any Par unless such rights
are expressly waived herein. Execution of this Stipulation shall not be deemed to
constitute an acknowledgment by any Par of the validity or invalidity of any paricular
method, theory or principle of regulation or cost recovery. No Par shall be deemed to
have agreed that any method, theory or principle or regulation or cost recovery employed
in ariving at this Stipulation is appropriate for resolving any issues in any other
proceeding in the future. No findings of fact or conclusions of law other than those stated
herein shall be deemed to be implicit in this Stipulation.
19. The obligations of the Paries under this Stipulation are subject to the
Commission's approval of this Stipulation in accordance with its terms and conditions
and upon such approval being upheld on appeal, if any, by a cour of competent
jurisdiction.
20. This Stipulation may be executed in counterpars and each signed
counterpar shall constitute an original document.
Dated this _ day of Februar, 2008.
A VIST A CORPORATION
BY:
David J. Meyer
Vice President, Chief Counsel for
Regulatory & Governental Affairs
IDAHO PUBLIC UTILITIES COMMISSION
02/01/2008 10: 12 FAX [phone] AVIST A CORP 14 002/002
1 method, theory or principle or regulation or cost recovery employed in arving at this
2 Stipulation is appropriate for resolving any issues in any other proceeding in the future. No
3 findings of fact or conclusions of law other than those stated herein shall be deemed to be
4 implicit in this Stipulation.
5 19.The obligations of the Pares under this Stipulation ar subject to the
6 Commission's approval of this Stipulation in accordance with its terms and conditions and
7 upon such approval being upheld on appeal. if any, by a court of competent jurisdiction.
8 This Stipulation may be executed in countear and each signed counteipar20.
9 shall constitute an original document.
10
11 Dated this -Jay of Februar, 2008.
12
13 A VISTA CORPORA nON
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By;~ljd ~avr .r
Vice Prsident, Chief Counsel for
Regulatory & Governmental Affairs
IDAHO PUBLIC UTITS COM:SSION
BY')"~
Donald L. ell, n
Deputy Attorney General
STIPULTION Page 7 of?
ATTACHMENT A
AVISTA UTILITIES
Depreciation Expense - Electric
For the Year Ended December 31, 2006
2006 Deprec. at 2006 Deprec. at WA ID
Existing Rate Proposed Rate Change Allocation Allocation
Production Plant:
Steam Production Plant 11,388,515 10,174,951 (1,213,564)(798,889)(414,675)
Hydraulic Production Plant 6,208,522 6,629,652 421,130 277,230 143,900
Other Production Plant 10,625,177 8,796,613 (1,828,564)(1,203,743)(624,820)
Total Production Plant 28,222,214 25,601,216 (2,620,998)(1,725,402)(895,595)
PfT Ratio 65.830%34.170%
Transmission Plant 9,049,748 7,614,061 (1,435,687)(945,113)(490,574)
PfT Ratio 65.830%34.170%
Distribution Plant 17,457,435 21,689,392 4,231,958 3,120,428 1,111,530
Depreciable Plant-ADP-12A
General Plant-See Allocation WS 6,693,473 5,530,438 (1,163,035)(770,045)(392,990)
Depreciable Plant-ADP-12A 66.210%33.790%
TOTAL ELECTRIC PLANT 61,422,870 60,435,107 (987,762)(320,132)(667,629)
DEFERRED TAX IMPACT (§ 35%(112,046)(233,670)
ID Accumulated Depreciation/Deferred Tax Impact:
Accumulated
Depeciation BalanceDe~05 0Jan-06 (55,636)Feb-06 (111,272)Mar-06 (166,907)Apr-06 (222,543)May-06 (278,179)Jun-06 (333,815)
Jul-06 (389,450)Aug-06 (445,086)Sep-06 (500,722)
Oct-06 (556,358)Nov-06 (611,993)Dec-06 (667,629)
Average of Monthly Average (333,815)
Deferred FIT
Balance
o
(19,473)
(38,945)
(58,417)
(77,890)
(97,363)
(116,835)
(136,308)
(155,780)
(175,253)
(194,725)
(214,198)
(233,670)
(116,835)
Page 1 of2
ATIACHMENTA
AVISTA UTILITIES
Depreiation Expense. Gas
For the Year End December 31, 2006
Underground Storage Plant
System Contract Demand Ratio
200 Depre, at
Existing Rate
42.5,988
2006 Depre. at
Propos Rate
34,112
Cliångê
(81.876)
WA
AllocUon
(60.056)
73.350%
to
Alloction
(21,820)
26.650%
Distribution Plant
Actual Therms Purchase
TOTAL GAS PLANT
7,862.876 7,561,878 (30,998)(214,542)(86,456)
71.2n%2it723%
177,423 152;821 (24,602)(18,046)
73.350%
99,447 85,072 (14,375)(10,54)(3,831)
73.350''A 26.65k
90.561 924,547 (44.014)(30.394)(13,620)
61M55%00.945%
9,534,295 9,068,430 (465.865)(333,582)(132.284)
(116,754)(46,299)
General Plant. Direct
System Contract Demand Ratio
Transportation Plant - Direct
System.Cootract Demand Ratio
Geneml Plant.See Allocation WS
Depreciable Plant-ADP-12A
DEFERRED TAX iMPACT~ 35%
10 Accumulated DeprêciatioriDeferred Tax Impact:
Accumulated
Depecialion BalanceDec-oS 0Jan-OO (11,024)Feb-OO (22,047)Mar~OO (33,071)A¡:r-O (44.005)May-OO (55,118)Jun-OO (66.142)
Jul-OO (77 ,1 sa)Aug-OS (88.189)Sep.OO (99,213)
Oet-o (110,237)Nov-O (121,200)
Dec-O
Average of Monthly Average
Deferred F1T
Balance
Page 2 of2
10f7
ATTACHMENT B
AVISTA UTILITIES
Depreciation Expense
For the Year Ended December 31,2006
(1)(2)(3)(4)(5)(6)(7)
Existing Proposed
Account 2006 Avg.Existing Annual Study Annual Increase or
Number Description Balance Rate Deprec.Rate Deprec.(Decrease)
$%$%$$
HYDRAULIC PRODUCTION PLANT
CABINET GORGE
330.3 Removing Propert of Others 6,783,237 41,901 2.27 153,979 112,078
330.31 Removing Propert of Others-Conservation 240,922 2 2.27 5,469 5,467
330.4 Land Easements 365,924 2,260 2.75 10,063 7,803
330.41 Land Easements-Conservation 332,796 571 2.03 6,756 6,185
331.0 Structures & Improvements 9,296,356 346,820 1.62 150,601 (196,219)
331.1 Structures & Improvements-Fish & Wildlife 10,610 397 1.50 159 (238)
331.2 Structures & Improvements-Recreation 592,490 21,349 1.64 9,717 (11,632)
331.26 Structures & Improvements-Rec Info 24,242 908 2.47 599 (309)
332.0 Reservoirs, Dams & Waterways 17,499,008 478,514 1.79 313,232 (165,282)
332.1 Reservoirs, Dams & Waterways-Fish & Wildlife 2,881,198 4,299 2.51 72,318 68,019
332.15 Reservoirs, Dams & Waterways-Fish & Wildlife 986,319 1,434 2.29 22,587 21,153
332.2 Reservoirs, Dams & Waterways-Recreation 107,153 2,951 1.91 2,047 (904)
333.0 Waterwheels, Turbines & Generators 32,007,087 397,225 2.59 828,984 431,759
334.0 Accessory Electric Equipment 5,227,443 272,644 1.43 74,752 (197,892)
335.0 Misc. Power Plant Equipment 2,342,515 11,712 0 (11,712)
335.1 Misc. Power Plant Equipment-Fish & Wildlife 54,938 746 2.99 1,643 897
335.2 Misc. Power Plant Equipment-Recreation 19,647 303 2.99 587 284
336.0 Roads, Railroads & Bridges 1,098,564 58,179 2.05 22,521 (35,658)
Total 79,870,449 2.06 1,642,215 2.10 1,676,013 33,798
LITTLE FALLS
330.1 Settement 4,200,000 88,216 2.00 84,000 (4,216)
330.3 Removing Property of Others 13,634 418 2.47 337 (81)
330.4 Land Easements 3,627 111 7.03 255 144
331.0 Structures & Improvements 911,061 0 0.12 1,093 1,093
332.0 Reservoirs, Dams & Waterways 5,010,780 178,765 1.51 75,663 (103,102)
332.2 Reservoirs, Dams & Waterways-Recreation 14,366 516 1.74 250 (266)
333.0 Waterwheels, Turbines & Generators 3,968,823 300,035 0.51 20,241 (279,794)
334.0 Accessory Electric Equipment 1,706,235 117,833 0.93 15,868 (101,965)
335.0 Misc. Power Plant Equipment 136,815 7,990 1.18 1,614 (6,376)
Total 15,965,341 4.35 693,884 1.25 199,321 (494,563)
LONG LAKE
330.3 Removing Property of Others 171,080 4,535 2.04 3,490 (1,045)
330.4 Land Easements 246,562 6,536 5.68 14,005 7,469
331.0 Structures & Improvements 1,436,183 (1,258)0.12 1,723 2,981
331.1 Structures & Improvements-Fish & Wildlife 64,872 0 0 0
331.2 Structures & Improvements-Recreation 92,158 0 0 0
332.0 Reservoirs, Dams & Waterways 16,532,371 940,642 1.10 181,856 (758,786)
332.2 Reservoirs, Dams & Waterways-Recreation 105,639 6,011 1.31 1,384 (4,627)
333.0 Waterwheels, Turbines & Generators 8,823,605 512,778 1.29 113,825 (398,953)
334.0 Accessory Electric Equipment 2,779,392 203,025 0.82 22,791 (180,234)
335.0 Misc. Power Plant Equipment 387,918 18,216 1.58 6,129 (12,087)
Total 30,639,780 5.52 1,690,485 1.13 345,203 (1,345,282)
MONROE STREET
331.0 Structures & Improvements 7,742,077 6,145 1.82 140,906 134,761
331.1 Structures & Improvements-Fish & Wildlife 206 0 2.43 5 5
331.2 Structures & Improvements-Recreation 507,701 403 2.51 12,743 12,340
332.0 Reservoirs, Dams & Waterways 8,045,079 4,006 1.72 138,375 134,369
333.0 Waterwheels, Turbines & Generators 11,018,005 11,734 2.28 251,211 239,477
334.0 Accssory Electric Equipment 1,660,800 6,167 2.97 49,326 43,159
335.0 Misc. Power Plant Equipment 26,344 103 2.04 537 434
336.0 Roads, Railroads & Bridges 50,448 50 2.17 1,095 1,045
Total 29,050,660 0.10 28,608 2.05 594,198 565,590
20f7
ATIACHMENTB
AVISTA UTILITIES
Depreciation Expense
For the Year Ended December 31, 2006
(1)(2)(3)(4)(5)(6)(7)
Existing Proposed
Account 2006 Avg.Existing Annual Study Annual Increase or
Number Description Balance Rate Depree.Rate Depree.(Decrease)
$%$%$$
NINE MILE
330.3 Removing Property of Others 9,937 394 1.66 165 (229)
330.4 Land Easements 980 39 4.59 45 6
331.0 Structures & Improvements 3,934,864 76,218 2.35 92,469 16,251
332.0 Reservoirs, Dams & Waterways 11,744,264 230,078 2.16 253,676 23,598
332.1 Reservoirs, Dams & Waterways-Fish & Wildlife 3,535 69 2.24 79 10
332.2 Reservoirs, Dams & Waterways-Recreation 92,744 1,817 2.35 2,179 362
333.0 Waterwheels, Turbines & Generators 9,465,050 30,459 3.03 286,791 256,332
334.0 Accessory Electric Equipment 2,643,763 64,847 2.57 67,945 3,098
335.0 Misc. Power Plant Equipment 281,963 6,856 2.31 6,513 (343)
336.0 Roads, Railroads & Bridges 625,181 2,144 2.64 16,505 14,361
Total 28,802,281 1.43 412,921 2.52 726,368 313,447
NOXON RAPIDS
330.3 Removing Property of Others 29,413,622 122,586 2.02 594,155 471,569
330.4 Land Easements 10,607 44 2.83 300 256
330.41 Land Easements-Conservation 550,000 2,292 1.84 10,120 7,828
331.0 Structures & Improvements 11,080,010 233,184 1.77 196,116 (37,068)
331.1 Structures & Improvements-Fish & Wildlife 28,422 179 1.84 523 344
331.2 Structures & Improvements-Recreation 574,838 10,692 1.85 10,635 (57)
331.26 Structures & Improvements-Rec Info 11,359 242 1.86 211 (31)
332.0 Reservoirs, Dams & Waterways 30,097,050 536,877 1.79 538,737 1,860
332.1 Reservoirs, Dams & Waterways-Fish & Wildlife 1,005,322 17,933 1.77 17,794 (139)
332.15 Reservoirs, Dams & Waterways-Fish & Wildlife 481,128 8,583 1.76 8,468 (115)
332.2 Reservoirs, Dams & Waterways-Recreation 96,606 1,615 2.16 2,087 472
333.0 Waterwheels, Turbines & Generators 33,241,997 238,057 2.89 960,694 722,637
334.0 Accessory Electric Equipment 12,692,253 101,873 2.53 321,114 219,241
335.0 Misc. Power Plant Equipment 2,300,093 136,474 0.97 22,311 (114,163)
335.1 Misc. Power Plant Equipment-Fish & Wildlife 348,557 20,854 1.40 4,880 (15,974)
335.2 Misc. Power Plant Equipment-Recreation 6,753 26 1.40 95 69
336.0 Roads, Railroads & Bridges 225,369 5,632 2.12 4,778 (854)
Total 122,163,986 1.18 1,437,143 2.20 2,693,017 1,255,874
POST FALLS
330.3 Removing Propert of Others 23,167 368 4.18 968 600
330.4 Land Easements 2,708,437 42,978 3.79 102,650 59,672
331.0 Structures & Improvements 612,088 0 0.36 2,204 2,204
331.1 Structures & Improvements-Fish & Wildlife 2,665 0 0.23 6 6
331.2 Structures & Improvements-Recreation 5,526 0 0.24 13 13
332.0 Reservoirs, Dams & Waterways 5,759,792 22,685 2.72 156,666 133,981
332.1 Reservoirs, Dams & Waterways-Fish & Wildlife 16,133 64 2.86 461 397
332.2 Reservoirs, Dams & Waterways-Recreation 268,670 1,064 3.09 8,302 7,238
333.0 Waterwheels, Turbines & Generators 2,230,774 0 0.16 3,569 3,569
334.0 Accessory Electric Equipment 854,367 0 0.14 1,196 1,196
335.0 Misc. Power Plant Equipment 214,663 3,159 2.68 5,753 2,594
Total 12,696,282 0.55 70,318 2.22 281,789 211,471
UPPER FALLS
330.3 Removing Propert of Others 63,564 2,284 2.48 1,576 (708)
331.0 Structures & Improvements 460,413 0 0 0
331.2 Structures & Improvements-Recreation 31,387 0 0 0
332.0 Reservoirs, Dams & Waterways 7,058,533 119,694 1.20 84,702 (34,992)
332.2 Reservoirs, Dams & Waterways-Recreation 61,644 3,077 1.36 838 (2,239)
333.0 Waterwheels, Turbines & Generators 1,090,002 76,706 0.90 9,810 (66,896)
334.0 Accessory Electric Equipment 776,139 29,327 1.85 14,359 (14,968)
335.0 Misc. Power Plant Equipment 106,857 1,855 2.30 2,458 603
Total 9,648,539 2.41 232,943 1.18 113,743 (119,200)
Total Hydraulic Production Plant 328,837,318 1.89 6,208,517 2.02 6,629,652 421,135
30f7
4017
ATTACHMENTB
AVISTA UTILITIES
Depreciation Expense
For the Year Ended December 31, 2006
(1)(2)(3)(4)(5)(6)(7)
Existing Proposed
Account 2006 Avg.Existing Annual Study Annual Increase or
Number Description Balance Rate Depree.Rate Depree.(Decrease)
$%$%$$
TRANSMISSION PLANT
350.3 Removing Property of Others 1,486,017 1.32 19,616 1.26 18,724 (892)
350.4 Land Rights 8,487,996 1.32 111,933 1.28 108,646 (3,287)
352.0 Structures & Improvements 13,150,989 2.11 277,905 1.61 211,731 (66,174)
353.0 Station Equipment 153,279,410 2.63 4,026,986 2.39 3,663,378 (363,608)
354.0 Towers & Fixtures 17,069,239 1.40 238,969 1.87 319,195 80,226
355.0 Poles & Fixtures 99,291,514 3.03 3,010,571 1.84 1,826,964 (1,183,607)
356.0 OH Conductor & Devices 72,726,141 1.80 1,309,942 1.93 1,403,615 93,673
357.0 UG Conduit 561,148 1.66 9,315 1.58 8,866 (449)
358.0 UG Conductor & Devices 1,317,910 1.52 20,032 1.73 22,800 2,768
359.0 Roads & Trails 1,826,844 1.34 24,480 1.65 30,143 5,663
Total 369,197,208 9,049,749 7,614,061 (1,435,688)
DISTRIBUTION PLANT
361.0 Structures & Improvements 10,229,439 2.13 217,919 1.80 184,130 (33,789)
362.0 Station Equipment 76,759,289 2.48 1,900,202 2.60 1,995,742 95,540
364.0 Poles, Towers & Fixtures 171,634,479 1.87 3,210,542 2.66 4,565,477 1,354,935
365.0 OH Conductor & Devices 113,570,904 1.30 1,477,444 2.46 2,793,844 1,316,400
366.0 UG Conduit 59,876,655 1.88 1.128,211 2.71 1,622,657 494,446
367-WA UG Conductor & Devices 60,063,858 2.27 1,363,965 6.38 3,771,749 2,407,784
367-ID UG Conductor & Devices 34,356,657 2.27 780,733 4.24 1,456,722 675,989
368.0 Line Transformers 134,753,556 2.65 3,573,305 2.00 2,695,071 (878,234)
369.1 OH Services 41,413,068 2.13 882,085 1.69 699,881 (182,204)
369.2 UG Services - Spokane Network 1,229,912 2.13 26,165 1.59 19,556 (6,609)
369.3 UG Services - Other 54,118,269 2.13 1,152,875 1.59 860,480 (292,395)
370.0 Meters 23,761,590 3.28 779,704 2.39 567,902 (211,802)
373.1 Street Lighting & Signal Sys-Mercury Vapor 4,841,917 2.21 107,016 1.08 52,293 (54,723)
373.2 Street Lighting & Signal Sys-UG Conductor 2,432,780 2.21 53,870 1.23 29,923 (23,947)
373.3 Street Lighting & Signal Sys-Decorative 5,233,275 2.21 115,621 1.02 53,379 (62,242)
373.4 Street Lighting & Signal Sys-Sodium Vapor 11,368,277 6.05 687,777 2.82 320,585 (367,192)
Total 805,643,925 17,457,434 21,689,392 4,231,958
1,148,185
ELECTRIC GENERAL PLANT Utilty 0
390.1 Structures & Improvements 2,033,059 2.02 41,008 1.85 37,612 (3,396)
391.1 Computer Equipment 148,900 20.36 30,321 17.67 26,311 (4,010)
393.0 Stores Equipment 104,872 2.40 2,516 2.25 2,360 (156)
394.0 Tools, Shop & Garage Equipment 2,874,999 4.49 129,084 4.22 121,325 (7,759)
395.0 Laboratory Equipment 3,047,117 3.34 101,783 7.72 235,237 133,454
397.0 Communication Equipment 27,186,860 9.87 2,683,888 5.40 1,468,090 (1,215,798)
398.0 Miscellaneous Equipment 2,760 0.18 5 2.37 65 60
Total 35,398,567 2,988,605 1,891,000 (1,097,605)
ELECTRIC TRANSPORTATION PLANT Utilty 0
392.0 Transportation Equipment 1,243,320 (3.38)(41,966)3.70 46,003 87,969
396.0 Power Operated Equipment 2,449,252 7.43 181,921 5.51 134,954 (46,967)
Total 3,692,572 139,955 180,957 41,002
TOTAL ELECTRIC PLANT 2,188,158,528 57,857,953 56,976,626 (881,327)
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60f7
ATIACHMENTB
AVISTA UTILITIES
Depreciation Expense
For the Year Ended December 31, 2006
(1)(2)(3)(4)(5)(6)(7)
Existing Proposed
Account 2006 Avg.Existing Annual Study Annual Increase or
Number Description Balance Rate Depree.Rate Depree.(Decrease)
$%$%$$
GAS PLANT
UNDERGROUND STORAGE
350.2 Rights of Way 32,723 2.00 655 1.69 553 (102)
351.0 Structures & Improvements 1,065,109 1.75 18,633 1.44 15,338 (3,295)
352.0 Storage Wells 5,817,514 2.00 116,348 1.73 100,643 (15,705)
352.1 Wells 254,354 2.54 6,453 0.92 2,340 (4,113)
352.2 Reservoirs 203,330 2.22 4,514 2.35 4,778 264
352.3 Cushion Natural Gas 5,971,926 2.54 151,687 1.88 112,272 (39,415)
353.0 Lines 823,423 2.06 16,962 2.36 19,433 2,471
354.0 Compressor Station Equipment 2,043,859 2.32 47,484 1.81 36,994 (10,490)
355.0 Measuring & Regulating Equipment 171,919 2.66 4,573 4.88 8,390 3,817
356.0 Purification Equipment 407,250 2.97 12,095 2.35 9,570 (2,525)
357.0 Other Equipment 1,681,643 2.77 46,583 2.01 33,801 (12,782)
Total 18,473,050 425,987 344,112 (81,875)
DISTRIBUTION PLANT
375.0 Structures & Improvements 518,673 2.19 11,375 1.96 10,166 (1,209)
376.0 Mains 160,645,516 2.39 3,833,236 1.81 2,907,684 (925,552)
378.0 Measuring/Regulating Station Equipment 3,511,639 2.13 74,878 3.06 107,456 32,578
379.0 Measuring/Regulating City Gate Equipment 1,491,098 2.24 33,399 3.08 45,926 12,527
380.0 Services 117,362,693 2.67 3,132,926 2.77 3,250,947 118,021
381.0 Meters 37,199,504 1.94 721,937 3.22 1,197,824 475,887
385.0 Measuring/Regulating Industrial Equipment 2,263,561 2.44 55,124 1.85 41,876 (13,248)
Total 322,992,684 7,862,875 7,561,878 (300,997)
GAS GENERAL PLANT
390.1 Structures & Improvements 605,452 2.59 15,653 2.96 17,921 2,268
393.0 Stores Equipment 56,900 2.48 1,412 3.93 2,236 824
394.0 Tools, Shop & Garage Equipment 1,567,219 4.24 66,464 4.69 73,503 7,039
395.0 Laboratory Equipment 553,814 3.27 18,110 4.54 25,143 7,033
397.0 Communication Equipment 771,590 9.77 75,382 4.36 33,641 (41,741)
398.0 Miscellaneous Equipment 31,332 1.28 401 1.20 376 (25)
Total 3,586,307 177,422 152,821 (24,601)
GAS TRANSPORTATION PLANT
392.0 Transportation Equipment 286,905 5.00 14,334 5.00 14,345 11
396.0 Power Operated Equipment 1,144,449 7.44 85,113 6.18 70,727 (14,386)
Total 1,431,354 99,447 85,072 (14,375)
COMMON GAS GENERAL PLANT Utilty 8
391.0 Offce Furniture & Equipment 378,871 4.53 17,163 9.62 36,447 19,284
394.0 Tools, Shop & Garage Equipment 142,360 4.13 5,879 5.11 7,275 1,396
395.0 Laboratory Equipment 17,266 3.27 565 4.49 775 210
397.0 Communication Equipment 864,974 10.52 90,994 5.13 44,373 (46,621)
Total 1,403,471 114,601 88,870 (25,731)
TOTAL GAS PLANT 347,886,866 8,680,332 8,232,753 (447,579)
GRAND TOTAL 2,607,426,332 71,288,016 69,835,527 (1,452,489)
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 1st DAY OF FEBRUARY 2008,
SERVED THE FOREGOING STIPULATION, IN CASE NOS. AVU-E-07-11 AND AVU-
G-07-03, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL
A VISTA CORPORATION
PO BOX 3727
SPOKANE WA 99220
E-MAIL: david.meyerØlavistacorp.com
KELLY NORWOOD
VICE PRESIDENT - STATE & FED. REG.
A VISTA UTILITIES
PO BOX 3727
SPOKANE WA 99220
E-MAIL: kelly.norwoodØlavistacorp.com
~~SECRETARY ~~¿
CERTIFICATE OF SERVICE