20101004_3101.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF

FROM: KRISTINE SASSER
DEPUTY ATTORNEY GENERAL

DATE: SEPTEMBER 30, 2010

SUBJECT: APPLICATION OF AVISTA FOR AUTHORITY TO REVISE ITS
RESIDENTIAL AND FARM ENERGY RATE (SCHEDULE 59), CASE
NO. AVU-E-10-04

On September 15, 2010, Avista filed an Application with the Commission seeking
authority to revise its Schedule 59, Residential and Farm Energy Rate. More specifically, the
Company proposes an adjustment of a rate credit from the currently approved 0.289¢ per kWh to
0.147¢ per kWh, or a decrease to the credit of 1.65%. The Company requests that the
Application be processed by Modified Procedure and rates become effective November 1, 2010.
THE APPLICATION
Avista’s Application states that the current 0.289¢ per kWh rate credit, to pass
through residential exchange program benefits, was approved effective August 1, 2009. That
rate credit resulted from a settlement agreement with the Bonneville Power Administration
(BPA) and was based on two years of assumed payments from BPA for their 2009 and 2010
fiscal years, as well as an amount from settlement of an outstanding Deemer Account.
Avista maintains that the current rate credit was designed to pass through the total of
the 2009 and 2010 benefits over a period of 15 months, August 1, 2009 through October 31,
2010. The proposed rate credit of 0.147¢ per kWh will replace the current credit of 0.289¢ per
kWh and is designed to pass through the amount of expected benefits from BPA for their 2011
fiscal year over a refund period of 12 months, November 1, 2010 through October 31, 2011. For
a customer using 1,000 kWh per month, the proposed, lower rate credit would result in a
monthly increase of $1.42 per month, or 1.65%.
DECISION MEMORANDUM 2
The Application states that the proposed rate credit will have no effect on Avista’s net
income. The proposed rate credit would, however, result in an increase of approximately $1.7
million to Idaho electric revenue, since a lesser amount of benefits will be passed through to
customers.
STAFF RECOMMENDATION
Staff has reviewed the Application and recommends that the case proceed by
Modified Procedure with a comment deadline of October 21, 2010.
COMMISSION DECISION
Does the Commission find that the public interest may not require a hearing to
consider the issues presented, and that this proceeding may be processed under Modified
Procedure with a comment deadline of October 21, 2010?

M:AVU-E-10-04_ks