HomeMy WebLinkAbout20150910AVU to Staff Revised 131.docAVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 09/08/2015
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-Revised 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 3/31/15.
Workpaper tab EG-Com-1 provided the overall cost of the project and the Idaho’s calculated deferral amount at 80% for the electric and natural gas operations. Therefore, this workpaper would not change based on a change in amortization period. Both workpaper tabs labeled E-Com (electric) and G-Com (natural gas) showed the monthly and annual amortization expense over a two-year period (1/1/2016-12/31/2017) for Idaho electric and natural gas. The change in amortization expense if 60 or 72 months were used are shown below.
A 5-year or 6-year amortization of the electric and natural gas deferral balances were not considered by the Company as appropriate because there is no return on the deferred balances.
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