20040607Response No 48 of Avista to Potlatch.pdf

. Avista Corp.
1411 East Mission POBox3727
Spokane. Washington 99220-3727
Telephone [phone]
Toll Free 800-727.9170
RECEIVED illFILED
2aa~ JUN -4 AI1 9:SJ
~~~'V'STAm
Corp.
' i ita Ud; ! CUTILI TIE S COt~1t;-"SSlnN
June 3 , 2004
Conley E. Ward
GIVENS PURSLEY LLP
601 W. Bannock Street
PO Box 2720
Boise, ID 83701-2720
Re:Production Request of Potlatch Corporation
in Case Nos. A VU-04-01 and A VU-04-
Mr. Ward
I have attached one copy of Avista s response to Potlatch Data Request No. 48.
If you have any questions, please call me at [phone] or Don Falkner at (509) 495-
4326.
Mike Fink
Rate Analyst
Enclosures
Cc:S. Woodbury
D. Peseau
A. Yanke I
(IPUC)
(Utility Resources, Inc.
(Yankel & Assoc, Inc.
VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO:
Idaho
A VU-04-01 / A VU-04-
Potlatch
Data Request
DATE PREPARED:
WITNESS:
RESPONDER:
DEP ARTMENT:
TELEPHONE:
6/1/2004
Bill Johnson
Bill Johnson
Power Supply
[phone]
REQUEST:
Re: Exhibit 10, 2 of 2, line 80. If this entry is "expense for gas purchased for, but not
consumed for generation" and is purchased at index-based prices, why has it not been "flipped"
or simultaneously re-sold into the same indexed market at the same price? In other words, why
aren t the figures $17.8 million and $40.9 million the same? Please provide a detailed
exp lanati on.
RESPONSE:
Line 80 of Exhibit 10, Schedule 1 , page 2 of 2 shows the $40.9 million revenue amount
for the sale of gas purchased for, but not consumed for generation in the 2002 test year, and $0
for the proforma period. The physical gas was purchased at an index price and later the price
was fixed using fixed-for-floating price swaps. The index price represents the market price at a
point in time. These market prices change over time, therefore the gas cannot be re-sold at the
same indexed price as it was purchased.
It is not clear what the figure $17.8 million from your question represents, as the source
of this figure is not identified.