20090420_2536.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
CO MMISSI 0 NER RED FO RD
COMMISSION SECRETARY
LEG AL
WORKING FILE
FROM:TJ GOLO
DATE:APRIL 15, 2009
RE:REVISIONS TO A VISTA'S SCHEDULE 51 - LINE EXTENSION,
CONVERSION AND RELOCATION SCHEDULE.
On March 31 , 2009, A vista filed revised Schedule 51 , the Company s Line Extension
Conversion and Relocation Schedule in compliance with Order No. 28562 issued on November
, 2000 in No. A VU-OO-l. A vista 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 10-11 percent. These cost increases greatly exceed the general inflation rate, but
are consistent with recent cost increases in the construction and materials industries. Meanwhile
the costs of transformers are down from last year. Although Staff has seen continuous increases
for transformer costs in previous updates of line extension cost, in this update, overhead
transformer costs are down approximately 5 percent and underground transformer costs are down
11 percent from last year. 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 4 2009.
DECISION MEMORANDUM - 1 -APRIL 15 , 2009
COMMISSION DECISION
Does the Commission wish to accept the annual revisions of Avista s Schedule 51 for
2009?
i:udmemos/A VU Line Extension Costs update.doc
DECISION MEMORANDUM - 2 -APRIL 15 , 2009