Attch21_AVUE995_StaffComments.doc

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 1895

Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983

Attorney for the Commission Staff

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION DBA AVISTA UTILITIES – WASHINGTON WATER POWER DIVISION FOR AUTHORITY TO REVISE ELECTRIC TARIFF SCHEDULE 66-—TEMPORARY POWER COST ADJUSTMENT—IDAHO AND TO IMPLEMENT A RELATED REBATE. )
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CASE NO. AVU-E-99-5

COMMENTS OF THE
COMMISSION STAFF

COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Scott Woodbury, Deputy Attorney General, and in response to the Notice of Application, Notice of Modified Procedure and Notice of Comment/Protest Deadline issued on July 29, 1999, submits the following comments.
On July 27,1999, the Washington Water Power Division of Avista Utilities filed Case
No. AVU-E-99-5 with the Idaho Public Utilities Commission. The Company’s Application proposes a revision to tariff Schedule 66 – Temporary Power Cost Adjustment – Idaho, which would decrease rates an average of 2.503% and rebate $2,766,000 to customers.
On July 29, 1999, the Commission issued Order No. 28108 approving the rate reduction on an interlocutory basis and timing the implementation of the rate reduction to coincide with the general rate increase approved by the Commission in Case No. WWP-E-98-11, Order No. 28097. The general rate increase and the PCA rate decrease were both effective August 1, 1999, with the decrease partially offsetting the increase.
Case No. WWP-E-88-3, Order No. 22816 dated October 31, 1989 establishes a balancing account trigger of $2.2 million (Idaho) and a 5% annual rate cap (floor) during each annual July 1 to June 30 period - no more than two consecutive surcharges/rebates during any 12month period. The combined effect of the two current rebates is an overall decrease of 5.163%. Staff recommends that the Commission accept the Company recommended PCA rebate amount even though it exceeds the 5% cap set in Case No. WWP-E-88-3. Were the net refund amount limited to 5%, the difference would be carried forward in the balancing account. Allowing the full amount in the balancing account to be rebated now benefits customers and should be authorized.
Staff has completed its review of the Company’s filing including an audit of the months of July, 1998 through the trigger month, June, 1999. Staff verified the accuracy and legitimacy of the amounts included in the PCA balancing account and discovered no irregularities. Staff recommends that the PCA rate decrease proposed by the Company receive final Commission approval as filed.

Respectfully submitted this 20th day of August 1999.

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Scott Woodbury Deputy Attorney General
Technical Staff: Keith Hessing
Kathy Stockton

KS:KH:va:word:u:umisc/comments/Avue995.ksw

STAFF COMMENTS 2 August 20, 1999