20100601_2979.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEG AL
WORKING FILE
FROM:TJ GOLO
DATE:MAY 24, 2010
RE:REVISIONS TO A VISTA'S SCHEDULE 51- LINE EXTENSION,
CONVERSION AND RELOCATION SCHEDULE.
On May 3 , 2010, Avista filed revised Schedule 51 , the Company s Line Extension
Conversion and Relocation Schedule in compliance with Order No. 28562 issued on November
2000 in Case No. A VU-OO-Ol. 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 proposed revised tariff which includes all of the proposed line
'" extension cost updates. The proposed costs update incorporates all of the changes ordered by the
Commission in Order No. 28562 which stated that the "Company may continue to annually file
an updated tariffreflecting changes in Basic Costs.In this update, most line extension costs
have increased at least 15 percent. For example, the fixed cost for an overhead primary service
increase 7 percent from $3 774 to $4 032. Similarly, the fixed cost for an underground
secondary increases 16 percent from $199 to $230. Transformer costs increase $283 for
overhead transformers and $40 for pad-mounted transformers. While most of the line extension
costs and charges have increased for individual line extensions, the total cost per lot for line
extensions in subdivisions, including the service cost with primary, secondary, and transformer
costs have decreased approximately 5 percent from $2 288 to $2 160. By keeping line extension
costs current, new customers bear more of their fair share of the costs, rather than burdening
existing ratepayers with the cost of serving new customers.
DECISION MEMORANDUM - 1 -MAY 24 2010
The Company also proposed minor additional language changes in their Exceptional Cost
definition. In addition, A vista proposes to require subdivision Developers to make an advance
cash payment if they provide their own ditching. Staff agrees with A vista that the change will
allocate the cost between Builders and Developers more appropriately. Staff believes both of
these changes are reasonable.
STAFF RECOMMENDATION
Staff recommends approval of the revised tariff with an effective date of June 7, 2010.
COMMISSION DECISION
Does the Commission wish to accept the annual revisions of A vista s Schedule 51 for
2010?
udmemos/Avista Schedule 51 dec memo 2010
DECISION MEMORANDUM - 2 -MAY 24 2010