2000714_sw.doc

DECISION MEMORANDUM

TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
RON LAW
BILL EASTLAKE
LOUANN WESTERFIELD
TONYA CLARK
DON HOWELL
DAVE SCHUNKE
RANDY LOBB
KEITH HESSING
WORKING FILE
FROM:
DATE:
JULY 14, 2000 RE: PCA TRIGGER EXCEEDED—AVISTA
COMPANY REQUEST TO DELAY IMPLEMENTATION OF REBATE

On July 10, 2000, Avista Corporation dba Avista Utilities—Washington Water Power Division—Idaho, filed a notice letter with the Idaho Public Utilities Commission (Commission) apprising the Commission that electric PCA deferrals for the month of June 2000 have increased the balance in the PCA deferral account to $3,322,760, which exceeds the PCA methodology trigger amount of $2.2 million. Pursuant to established methodology, the Company is required to initiate a tariff change to implement the rebate (15 days to file notice; 45 days to file application).
The Company estimates that PCA entries for the July-December 2000 period may be as high as $10 million in the surcharge direction. The Company proposes to delay implementation of the triggered rebate and to use the accrued balance as an offset to the anticipated surcharge entries.
Staff reserves judgment on the appropriateness of the Company’s request until after it reviews and audits the Company’s PCA methodology calculations and balance account. Staff does not anticipate being able to review same until the week of July 24.
Commission Decision
Avista files notice of its PCA trigger being exceeded and requests a delay of implementation of the triggered rebate ($3,322,760). Staff recommends that the Commission defer decision on the Company’s request until after Staff has had the opportunity to review and audit the Company’s methodology calculations and PCA balance account. How does the Commission wish to handle the Company’s request?

vld/M:REBATE delay_sw

DECISION MEMORANDUM 2