20080421_2223.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
CO MMISSI 0 NER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
WORKING FILE
LEGAL
FROM:RICK STERLING
DATE:APRIL 14, 2008
SUBJECT:REVISIONS TO A VISTA'S SCHEDULE 51 - LINE EXTENSION,
CO NVERSI ON AND RELOCA TI ON SCHEDULE.
On April 4, 2008 , Avista filed revised Schedule 51 , the Company s Line Extension, Conversion
and Relocation Schedule in compliance with Order No. 28562 issued on November 27 2000 in Case
No. A VU-OO-l. Avista is required to make an annual filing, on or before April 1 , updating its line
extension costs and charges to reflect actual costs incurred in the previous calendar year.
Staff has reviewed the revised tariff and finds that it incorporates all of the changes ordered by
the Commission in Order No. 28562. Most line extension costs have increased approximately 7-
percent, while costs for transformers are up over 10 percent from last year. These cost increases greatly
exceed the general inflation rate, but are consistent with recent rapid cost increases in the construction
and materials industries. By keeping line extension costs current, new customers bear more of their fair
share of the costs, rather than burdening existing ratepayers with the costs of new growth.
ST AFF RECOMMENDATION
Staff recommends approval of the revised tariff with an effective date of May 15 2008.
CO MMISSI ON D ECISI
Does the Commission wish to accept the annual revisions of Avista s Schedule 51 for 2008?
Rick Sterling
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DECISION MEMORANDUM APRIL 14 2008