20070313Report received Feb 21, 2003.pdf

Avista Corp.
1411 East Mission PO Box 3727
Spokane, Washington 99220-3727
Telephone [phone]
Toll Free 800-727-9170
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February 19 2003 tnt"'"
UTILnlES COr"if1iSSiON
Ms. Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P. O. Box 83720
Boise, Idaho 83720-0074
Dear Ms. Jewell:
Modified PCA - Two Year Report
The Commission issued Order No. 28775 in Case No. A VU-Ol-l on July 11,
2001. That Order approved modifications to the Company s Power Cost
Adjustment (PCA) mechanism effective January 1 2001. At page 15 of the Order
the Commission directed the Company to file a report after two years of operation
of the modified PCA. The pertinent language from the Order is as follows:
After two years of operation with these changes we will expect the
Company to file a report with this Commission detailing the operation of
the modified PCA. The report should include total surcharge and rebate
amounts recovered over the period, significant events that have impacted
power supply expenses, changes in the long-term (greater than one year)
supply/demand situation and mechanism modifications that may be
justified.
At page 16 of the Order the Commission directed the Company to file the PCA
report with the Commission by March 30, 2003. The Company believes that the
information submitted in this letter and identified as having been submitted in
previous PCA filings meets the reporting requirements of Order No. 28775 listed
above.
The modified PCA mechanism tracks 90% of the difference between actual and
the authorized level of net power supply expenses approved in the last general rate
case. There is an adjustment to power supply costs for changes in retail load and
a carrying cost is applied to PCA balances.
Since the modified PCA was implemented on January 1 2001 , a 4.7% surcharge
was implemented on February 1 2001 based on deferred power costs through
October 31 2000. A 1.9% rebate that had been implemented on August 1 , 2000
expired on July 31 , 2001. A new 14.7% surcharge was implemented for a one-
year period on October 12 2001 and the existing 4.7% surcharge was extended.
Effective October 12, 2002 the combined surcharges totaling 19.4% were
extended for an additional one-year period. Attachment A is sheet showing the
monthly surcharge and rebate amounts for the two-year period of January 1 2001
through December 31 , 2002.
~5/7
The Company s filings to implement the 14.7% surcharge in 2001 and extend the
combined 19.4% surcharge in 2002 contained information regarding the
significant events, namely, record-low hydroelectric generation and
unprecedented high wholesale prices and volatility, that have impacted power
supply expenses and changes in the long-term supply/demand situation. In
addition , the monthly reports submitted to the Commission identify the variances
between actual and authorized components of net power supply expenses. The
Company is not recommending any modifications to the PCA mechanism at this
time.
If any additional information is required regarding the reporting requirements, or
if you have any questions , please contact me at [phone].
Sincerely,
Kelly Norwood
Vice President Rates and Regulation
Enclosure
Attachment A
PCA Two Year Report
Avista Utilities
Idaho Power Cost Adjustment (PCA)
Rebate and Surcharge Revenue
January 2001 - December 2002
Rebate
Jan-
Feb-
Mar-
Apr-
May-
Jun-01 "
Jul-
Aug-
Sep-
Oct-
Nov-
Dec-
Jan-
Feb-
Mar-
Apr-
May-
Jun-
Jul-
Aug-
Sep-
Oct-
Nov-
Dec-
Totals
$238,096
250,473
218,646
203,831
186,445
333,022
161 270
Combined
19.4%
Surcharae
$522 669
486,801
445,545
794 853
384 117
399,828
424,444
512 130
580,954
116 167
525,851
275,859
253,920
046,112
879,874
839,707
822 555
962 847
917 598
821,411
069,140
317,523
-$1 591,783 $32,399,905
One-month accounting lag eliminated.