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HomeMy WebLinkAbout20150904AVU to Staff 131.docAVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO DATE PREPARED: 09/03/2015 CASE NO.: AVU-E-15-05/AVU-G-15-01 WITNESS: Elizabeth Andrews REQUESTER: IPUC RESPONDER: Liz Andrews TYPE: Production Request DEPARTMENT: State & Federal Regulation REQUEST NO.: Staff - 131 TELEPHONE: (509) 495-8601 REQUEST: Please describe why a period of 24 months was selected for Project Compass Deferral and Amortization. See Workpapers EG-COM-1, G-COM, and E-COM. Additionally, provide examples of EG-COM-1, G-COM, and E-COM at both 60 and 72 month amortizations. RESPONSE: The Company chose a two-year period to minimize the impact on customers from a one-year change, as well as it produces the same level of expense over the two-year rate plan for 2016-2017 proposed by the Company. This two-year amortization period is consistently applied in this case between the electric and natural gas Pro Forma Study adjustments, as a two-year period was used to amortize the electric and natural gas Project Compass Deferral, Colstrip Settlement Refund Deferral and Lake Spokane Deferral adjustments. In addition, this approach is consistent with past adjustments approved by the IPUC, such as the Reardan Deferral Balance two-year amortization approved in Case No. AVU-E-12-08, beginning 4/1/2013 through 3/30/15. Page 1 of 1