HomeMy WebLinkAbout200132_jh.docDECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
JEAN JEWELL
DON HOWELL
BILL EASTLAKE
LOU ANN WESTERFIELD
RANDY LOBB
DAVE SCHUNKE
TERRI CARLOCK
MICHAEL FUSS
BEVERLY BARKER
RON LAW
TONYA CLARK
WORKING FILE
FROM: JOHN R. HAMMOND
DATE: MARCH 2, 2001
RE: IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION DBA AVISTA UTILITIES, FOR AN ORDER APPROVING AN ELECTRIC ENERGY BUY-BACK PROGRAM FOR PUMPING SCHEUDLES 31 & 32 CUSTOMERS. CASE NO. AVU-E-01-4.
On February 28, 2001, Avista Corporation dba Avista Utilities (“Avista”) filed an Application requesting Commission approval of its Tariff 70-R. This Tariff would provide Avista’s irrigation customers, who take service under Schedules 31 and 32, the option to sell power back to Avista by reducing their electric consumption. Avista requests expedited processing of its Application and seeks a Commission Order making the Program effective from March 15, 2001.
BACKGROUND
Avista states that the market price of electricity is expected to remain high for the 2001 irrigation season because of low snowpack, and projected low streamflows. Under these conditions the Company believes this Program has the potential to reduce its power supply expense during this period of time.
Avista will make this Program available to irrigation customers who have historically used at least 100,000 kWh while taking service from Schedules 31 and 32. Avista estimates that it has thirty (30) customers that meet the minimum eligibility requirements for participation in this Program and who consumed approximately 22,000 megawatt hours from May to September 2000. Avista states that it will notify these customers by phone and mail to describe how this Program will operate.
To participate, eligible irrigators must agree to reduce their energy consumption by a minimum of 100,000 kWh from May to September 2001. Avista states that those customers who wish to participate must notify the Company prior to April 15, 2001. Avista states that it will pay participants who reduce energy usage by more than 100,000 kWh ten (10¢) cents for each kWh saved. Avista proposes to record payments to customers as a power supply expense in Account 555, as these payments will be made in lieu of purchasing power on the wholesale market.
Staff Recommendation
The Commission Staff has reviewed the Company's Application and makes the following recommendations to the Commission.
Staff recognizes the time sensitive nature of Avista’s Application and recommends it be processed in an expedited manner because irrigators must make decisions regarding the 2001 growing season in the coming weeks. However, Staff also recognizes that this is a new program and many details regarding its implementation are unknown. Therefore, Staff recommends the use of Modified Procedure and suspension of the proposed effective date beyond March 15, 2001 to allow a shortened period of time for interested persons and parties to comment. Staff proposes that a period of ten (10) days be allowed for comments. After the comment period has expired Staff proposes that this Application come before the Commission for a final decision on March 19, 2001. COMMISSION DECISION
Does the Commission wish to process Avista’s Application in an expedited manner?
Does the Commission wish to process Avista’s Application by the use of Modified Procedure under the Commission’s Rules of Procedure?
Does the Commission wish to shorten the comment period from twenty-one (21) days to ten (10) days in an effort to expedite Avista’s Application?
Does the Commission wish to suspend issuance of an Order addressing this Application beyond March 15, 2001, the date which Avista has requested?
John R. Hammond
Deputy Attorney General
Staff: Michael Fuss
M:avue014_jh
DECISION MEMORANDUM 2