20090727_2642.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

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

FROM: SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL

DATE: JULY 23, 2009

SUBJECT: CASE NOS. AVU-E-09-06/AVU-G-09-04 (Avista)
TARIFF SCHEDULES 91/191 – ENERGY EFFICIENCY PUBLIC
PURPOSE RIDER ADJUSTMENT – FURTHER PROCEDURAL
RECOMMENDATION

On June 30, 2009, Avista Corporation dba Avista Utilities (Avista; Company) filed
and Application with the Idaho Public Utilities Commission (Commission) requesting approval
of an increase to tariff Schedules 91 and 191 rates, Energy Efficiency Public Purpose Rider
Adjustment. Schedules 91 and 191 are designed to recover the costs incurred by the Company
associated with providing electric and natural gas energy efficiency services to customers. The
proposed increase in Schedules 91 (from 2.24 to 3.27%) and 191 (from 1.55 to 2.60%) rates, the
Company contends, is necessary to continue to fund ongoing electric and natural gas efficiency
programs consistent with the Company’s most recent electric and natural gas integrated resource
plans (IRPs). It will also serve to amortize a deficiency balance within the electric and natural
gas efficiency tariff riders resulting from the Company’s response to higher than expected
customer demand for services. Also included in the Company’s filing are proposed procedural
modifications to reduce the likelihood of significant positive or negative balances in the future.
PROCEDURAL BACKGROUND
This matter was initially a decision item on the Commission’s July 13 decision
agenda. The Company’s requested effective date for its Energy Efficiency Rider Adjustments is
August 1, 2009. Also on the July 13 agenda was an Avista request to implement a BPA electric
service residential and small farm energy rate adjustment credit (Tariff Advice No. 28) for an
August 1, 2009 effective date. The increase in the Schedule 91 electric energy efficiency tariff
DECISION MEMORANDUM 2
rider and the BPA credit were offsetting adjustments that the Commission found reasonable to
implement at the same time. Accordingly, the Commission saw fit to authorize implementation
of the Schedule 91 Electric Energy Efficiency Tariff Rider by interlocutory order for an August 1
effective date while at the same time suspending the proposed gas efficiency tariff rider. Both
cases are to be processed under Modified Procedure. IDAPA 31.01.01.201-204. The
Commission’s procedural decision comported with Staff’s recommendation. The Commission’s
Order and Notice have yet to be issued.
FURTHER PROCEDURAL RECOMMENDATION
Staff now recommends that the Commission approve both the gas and electric energy
efficiency tariff riders by interlocutory order for an effective date of August 1, 2009. This
procedure will allow all pending and proposed Avista rate changes to sync up for an August 1
effective date, the Company’s electric/gas rate case (Order No. 30856, AVU-E/G-09-01); the
BPA credit (Tariff Advice 98); and the electric and gas Energy Efficiency Public Purpose Tariff
Riders (Avista Schedules 91 and 191). Allowing the gas Schedule 191 Energy Efficiency Tariff
Rider to be implemented August 1 by interlocutory order is further justified because the
Company has a negative $1,036,753 natural gas DSM tariff rider balance (unaudited) as of the
close of May 2009. (The Company’s electric DSM tariff rider balance for Idaho was a negative
$2,361,178 (unaudited) as of the same date.)
COMMISSION DECISION
For reasons set out above, Staff recommends that the Commission by interlocutory
order approve an August 1, 2009 effective date for both the Company’s Schedule 91 electric and
Schedule 191 gas Energy Efficiency Public Purpose Tariff Rider adjustments. The joint cases
will be processed pursuant to Modified Procedure and the matter will be brought back for final
Commission action following investigation and the filing of comments. Does the Commission
agree with Staff’s recommended procedure?

Scott Woodbury
Deputy Attorney General

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