20011203Application.pdf

Advice No. 01-11-E
November 30, 2001
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
Statehouse Mail
W. 472 Washington Street
Boise, Idaho 83720
Dear Ms. Jewell:
Enclosed for filing with the Commission is an original of the Company’s following proposed tariff sheets,
I.P.U.C. No. 28:
Original Sheet 95
Second Revision Sheet B-1 Canceling First Revision Sheet B-1
In addition, pursuant to the Commission’s Electronic Filings Pilot, the Company has filed an electronic
copy of the tariff and other documents contained in this filing.
The purpose of this filing is to offer an optional wind power rate to all customers. Avista Utilities’ wind
power option is priced in increments, or “blocks”, of $1.00. Each $1.00 block of wind purchased by
customers equals 55 kilowatt hours (kWh). Schedule B-1 includes reference to this program as well as
inserting a reference to Schedule 92, the latter being a housekeeping modification.
Enclosed is an Application that provides information supporting the proposed tariff and a Certificate of
Service. Also enclosed is a notice to customers that will be posted in the Company’s offices. The
Company respectfully requests that the proposed tariff be approved effective February 1, 2002.
Please direct any questions on this matter to Bruce Folsom at [phone].
Sincerely,
Kelly Norwood,
Vice-President, Avista Corp.
Enclosures
c:Attached Service List
Application of Avista Corp. re Schedule 95, Optional Wind Power Rate PAGE 1
Kelly Norwood1
Vice President2
Avista Corporation3
E. 1411 Mission Avenue4
P.O. Box 37275
Spokane, Washington 992206
Phone: [phone] Fax: [phone]
8
9
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION10
11
12
IN THE MATTER OF THE APPLICATION OF AVISTA )13
CORPORATION FOR APROVAL OF )CASE NO. AVU-E-01-14
SCHEDULE 95, OPTIONAL WIND POWER RATE )15
)16
17
18
Avista Corporation ("Avista" or "Company") hereby requests that the Idaho Public19
Utilities Commission ("Commission") approve an optional wind power rate under new20
Schedule 95. The following information is submitted in support of this Application.21
22
I. Procedural Information23
The name of the Applicant is the Avista Corporation, a Washington corporation,24
whose principal business office is East 1411 Mission Avenue, Spokane, Washington. The25
Applicant is an investor-owned utility engaged in the generation, transmission, and26
distribution of electricity in certain portions of Eastern Washington and in Northern Idaho.27
The Applicant also provides natural gas distribution service in certain portions of Eastern28
Washington, Northern Idaho, California, and Oregon.29
Applicant is subject to the jurisdiction of the Idaho Public Utilities Commission, the30
Washington Utilities and Transportation Commission, the Montana Public Service31
Commission, the Oregon Public Utilities Commission, the California Public Utilities32
Application of Avista Corp. re Schedule 95, Optional Wind Power Rate PAGE 2
Commission, and the Federal Energy Regulatory Commission. Communications in reference1
to this Application should be addressed to:2
Kelly Norwood3
Vice President4
Avista Corporation5
E. 1411 Mission Avenue6
P.O. Box 37277
Spokane, Washington 992208
Phone: [phone] FAX: [phone]
10
and,11
David J. Meyer, Sr. Vice Pres. & General Counsel12
Avista Corporation13
P.O. Box 372714
Spokane, Washington 9922015
Phone: [phone], Fax: [phone]
Avista provides service to approximately 309,000 electric customers and 269,000 natural17
gas customers throughout its service area.18
19
II. Description of Program and Tariff20
Avista is proposing to offer an optional wind power rate. State of Washington 200121
legislation required its utilities to have in place by January 1, 2002 a voluntary option for the22
retail purchase of qualified alternative energy resources by Washington customers. The23
Company has filed such a rate in Washington and seeks to have a similar schedule in place24
for Idaho customers.25
Avista Utilities’ wind power option is priced in increments, or “blocks”, of $1.00.26
Each $1.00 block of wind purchased by customers equals 55 kilowatt hours (kWh).27
Under this “buck-a-block” pricing, customers may consider one of two purchase28
approaches. Some customers may elect to purchase wind power in one or two dollar monthly29
amounts with no linkage to their energy usage. These customers may view this payment as a30
Application of Avista Corp. re Schedule 95, Optional Wind Power Rate PAGE 3
contribution to support alternative energy production. Alternatively, customers can calculate1
and buy a selected percentage to serve their average monthly load. A customer who wishes2
to have half of his or her 1100 kWh average monthly load served by wind power would pay3
an incremental $10.00 per month (i.e., 10 blocks at 55 kWh per block multiplied by $1.00).4
A lights and appliance customer who uses an average of approximately 600 kWh per month5
might elect 100% wind generation by paying an extra $11.00 per month (i.e., 11 blocks at 556
kWh per block multiplied by $1.00).7
Research has attempted to differentiate the attributes of customers who participate in8
these types of programs and those who don’t. E-Source, a national research and consulting9
firm, reports that one key characteristic, for example, of participating customers is having10
completed a college or advanced degree. This suggests that the Company should focus its11
program notification efforts on specific segments of its customer population, or should “fish12
where the fish are.” These customers may be predisposed to support wind power and would13
likely consider their purchase from a “percentage of load” perspective. The Company14
intends to cost-effectively reach these customers through targeted communications.15
The Company has discussed this filing with local and regional stakeholders and16
interested customers. Significant discussions were held with Pacific Northwest17
environmental and consumer interests for the purposes of certification. Avista Utilities18
desired to have its offering “certified” as renewable energy by the regional entity providing19
such endorsements, Renew 2000. Such certification would support the Company’s20
marketing efforts and would aid allied marketing by environmental organizations. However,21
Renew 2000’s then-existing guidelines required that the minimum block size be 100 kWh.22
Upon discussion and review at Avista Utilities’ request, Renew 2000’s Board of Directors23
Application of Avista Corp. re Schedule 95, Optional Wind Power Rate PAGE 4
determined that a utility’s minimum 55 kWh block was “certifiable” if, on average,1
participating residential customer usage averaged greater than 150 kWh. Avista Utilities2
intends to seek such certification from Renew 2000.3
Avista Utilities is in the process of contracting with Pacificorp to purchase output4
from its Stateline Wind Facility on the Oregon-Washington border. This sales agreement5
would specifically provide for the delivery of wind power to Avista Utilities’ system to6
support customer purchases under this program at the proposed tariffed rates herein.7
All customer classes may participate in this program. The rate change associated8
with this filing is voluntary. Approximately $150,267 (system) in incremental revenue is9
estimated to result from this offering. All incremental revenue will be applied to program10
costs. There are no earnings associated with this program.11
12
III. Request13
The Company respectfully requests that the Commission approve the proposed14
Schedule 95, Optional Wind Power Rate, to be effective February 1, 2002 as described15
above.16
17
18
DATED this 30th day of November, 200219
Avista Corporation20
By: _______________________________21
Kelly Norwood22
Vice President, Avista Corp.23
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have served Schedule 95, Optional Wind Power Rate Tariff filing
regarding I.P.U.C. No. 28 Electric Service of Avista Corporation by mailing a copy thereof, postage
prepaid to the following:
Keith Hessing Randy Lobb
Idaho Public Utilities Commission Idaho Public Utilities Commission
472 W. Washington Street 472 W. Washington Street
Boise, ID 83702-5983 Boise, ID 83702-5983
Danielle Dixon Lori Barnes
Northwest Energy Coalition (NWEC)ASC Inc.
219 1st Avenue South, Suite 100 408 Sherman Suite #214
Seattle, WA 98104 Coeur d'Alene, ID 83814
Edward Finklea Ken Canon
Energy Advocates, LLP Industrial Customers of
526 NW 18th Avenue Northwest Utilities
Portland, OR 97209-2220 825 NE Multnomah, Suite 180
Portland, OR 97232
Conley E. Ward
Givens Pursley and Huntley, LLP
277 N. 6th Street, Suite 200
Boise, ID 83701
Dated at Spokane, Washington this 30th day of November, 2001.

Jean T. Osterberg
Rates Coordinator
Advice No. 01-11-E
AVISTA CORPORATION
dba Avista Utilities
NOTICE OF TARIFF CHANGE
(Idaho Electric Service Only)
Notice is hereby given that the “Sheets” listed below of Tariff I.P.U.C. No. 28, covering electric
service, has been filed with the Idaho Public Utilities Commission (IPUC) in Boise.
Original Sheet 95
Second Revision Sheet B-1 Canceling First Revision Sheet B-1
The purpose of this filing is to offer an optional wind power rate responsive to RCW 19.29A.090. This
legislation requires utilities to provide a voluntary option for the retail purchase of qualified alternative
energy resources, as specified in this code, beginning on January 1, 2002. The title sheet (B-1) also
includes an updated reference to Schedule 92.
Avista Utilities’ wind power option is priced in increments, or “blocks”, of $1.00. Each $1.00 block of
wind purchased by customers equals 55 kilowatt hours (kWh). Some customers may elect to purchase
wind power in one or two dollar monthly amounts as a contribution to support alternative energy
production. Alternatively, customers can calculate and buy a selected percentage to serve their average
monthly load. A customer who wishes to have half of his or her 1100 kWh average monthly load
served by wind power would pay an incremental $10.00 per month (i.e., 10 blocks at 55 kWh per
block multiplied by $1.00). A lights and appliance customer who uses an average of approximately 600
kWh per month might elect 100% wind generation by paying an extra $11.00 per month (i.e., 11
blocks at 55 kWh per block multiplied by $1.00).
Avista Utilities is in the process of contracting with Pacificorp to purchase output from its Stateline Wind
Facility on the Oregon-Washington border. This sales agreement would specifically provide for the
delivery of wind power to Avista Utilities’ system to support customer purchases under this program at
the proposed tariffed rates herein.
All customer classes may participate in this program. The rate change associated with this filing is
voluntary. Approximately $150,267 in incremental revenue is estimated to result from this offering. All
incremental revenue will be applied to program costs. There are no earnings associated with this
program.
The Company requests that the Commission approve the proposed tariff changes included in this filing
to be effective January 1, 2002. Also enclosed is a “Notice of Tariff Change” which will be posted in
all company offices coincident with the date of this filing.
Issue Date:November 30, 2001
Keep Posted Until:February 1, 2002
I.P.U.C. No.28 Original Sheet 95 95
Issued November 30, 2001 Effective February 1, 2002
By Kelly Norwood ,Vice President
SCHEDULE 95
OPTIONAL WIND POWER RATE - IDAHO
AVAILABLE
To Customers in the State of Idaho where the Company has electric service.
APPLICABLE
To all customers receiving electric service who agree to purchase blocks of wind
power under this schedule.
BLOCK
One (1) block equals 55 kWh of wind power.
CHARGE PER BLOCK
$1.00 per month. This charge shall be in addition to all other charges contained
in the customer’s applicable tariff schedule.
MONTHLY BILLING
The monthly billing shall be the number of Blocks the customer has agreed to
purchase multiplied by the Charge per Block. The Monthly Billing is in addition to all
other charges contained in customer’s applicable tariff schedule. This schedule’s
Monthly Billing shall be applied to the customer’s billing regardless of actual energy
consumption.
WIND POWER
For the purpose of this schedule, the power source is wind generation purchased
by the Company based on the number of Blocks that customers have agreed to
purchase.
SPECIAL TERMS AND CONDITIONS
Service under this schedule is subject to the Rules and Regulations contained in
this tariff.
Customers may apply for or terminate from this schedule anytime during the
year.
Wind Power will be delivered to the Company within one year of when the energy
was purchased by customer under this schedule.
The above Monthly Billing is subject to increases as set forth in Tax Adjustment
Schedule 58.
I.P.U.C. No.28 Original Sheet 95 95
Advice No. 01-11-E
Issued by Avista Utilities
By Kelly Norwood ,Vice President
SCHEDULE 95
OPTIONAL WIND POWER RATE - IDAHO
AVAILABLE
To Customers in the State of Idaho where the Company has electric service.
APPLICABLE
To all customers receiving electric service who agree to purchase blocks of wind
power under this schedule.
BLOCK
One (1) block equals 55 kWh of wind power.
CHARGE PER BLOCK
$1.00 per month. This charge shall be in addition to all other charges contained
in the customer’s applicable tariff schedule.
MONTHLY BILLING
The monthly billing shall be the number of Blocks the customer has agreed to
purchase multiplied by the Charge per Block. The Monthly Billing is in addition to all
other charges contained in customer’s applicable tariff schedule. This schedule’s
Monthly Billing shall be applied to the customer’s billing regardless of actual energy
consumption.
WIND POWER
For the purpose of this schedule, the power source is wind generation purchased
by the Company based on the number of Blocks that customers have agreed to
purchase.
SPECIAL TERMS AND CONDITIONS
Service under this schedule is subject to the Rules and Regulations contained in
this tariff.
Customers may apply for or terminate from this schedule anytime during the
year.
Wind Power will be delivered to the Company within one year of when the energy
was purchased by customer under this schedule.
The above Monthly Billing is subject to increases as set forth in Tax Adjustment
Schedule 58.
Issued November 30, 2001 Effective February 1, 2002
Issued by Avista Utilities
By Kelly Norwood, Vice President
Second Revision Sheet B-1 B-1
Cancelling
I.P.U.C. No. 28 First Revision Sheet B-1
AVISTA CORPORATION
dba Avista Utilities
INDEX PAGE - IDAHO - continued
Schedule Sheet
No. Title of Sheet No.
Miscellaneous Schedules
51 Line Extension, Conversion, and Relocation Schedule - Idaho..............51
53 Temporary Service ................................................................................53
54 Line Extension And Conversion Schedule for
Local Improvement Districts - Idaho ....................................................54
58 Tax Adjustment Schedule - Idaho ..........................................................58
59 Residential And Farm Energy Rate Adjustment - Idaho .........................59
62 Cogeneration And Small Power Production Schedule - Idaho................62
65 Temporary Rate Adjustment – Idaho…………………………………........65
66 Temporary Power Cost Adjustment - Idaho............................................66
67 Energy Efficiency Service for New Residential Buildings - Idaho............67
70 Idaho Rules And Regulations.................................................................70
90 Electric Energy Efficiency Programs - Idaho ..........................................90
91 Energy Efficiency Rider Adjustment - Idaho ...........................................91
92 All Customer Electric Energy Buy-Back Program...................................92
95 Optional Wind Power Rate - Idaho.........................................................95
Issued November 30, 2001 Effective February 1, 2002
Advice No. 01-11-E
Issued by Avista Utilities
By Kelly Norwood, Vice President
Second Revision Sheet B-1 B-1
Cancelling
I.P.U.C. No. 28 First Revision Sheet B-1
AVISTA CORPORATION
dba Avista Utilities
INDEX PAGE - IDAHO - continued
Schedule Sheet
No. Title of Sheet No.
Miscellaneous Schedules
51 Line Extension, Conversion, and Relocation Schedule - Idaho..............51
53 Temporary Service ................................................................................53
54 Line Extension And Conversion Schedule for
Local Improvement Districts - Idaho ....................................................54
58 Tax Adjustment Schedule - Idaho ..........................................................58
59 Residential And Farm Energy Rate Adjustment - Idaho .........................59
62 Cogeneration And Small Power Production Schedule - Idaho................62
65 Temporary Rate Adjustment – Idaho…………………………………........65
66 Temporary Power Cost Adjustment - Idaho............................................66
67 Energy Efficiency Service for New Residential Buildings - Idaho............67
70 Idaho Rules And Regulations.................................................................70
90 Electric Energy Efficiency Programs - Idaho ..........................................90
91 Energy Efficiency Rider Adjustment - Idaho ...........................................91
92 All Customer Electric Energy Buy-Back Program ................................... 92
95 Optional Wind Power Rate - Idaho ......................................................... 95
WIND RATE PROJECTIONS: SALES AND REVENUES
Washington/Idaho
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)
Total Incre-Total (Incr)
Number of Assumed Assumed %Average Number of Total/mo.mental Wind power sup-Total for
Customers Percent Number of Load Blocks per Number Revenue ply (annual)Admin.
[see note 1]Subscrip Participants by load (kwh/mo)Customer of Blocks (Annual)[see note 2](Annual)
b*c e*f/55 kwh d*g h* $1 *12 i*m i*n
Residential 273,219
Residential- Minus 10% Target 245,897 0.50%1,229 10.00%1,000 1.8 2,213 26,557 19,180 7,377
Residential-Target (10%)27,322 5.00%1,366 40.00%1,000 7.2 9,836 118,031 85,244 32,786
Commercial 35,060 0.25%88 10.00%3,000 5.4 473 5,680 4,102 1,578
Total 308,279 0.87%2,683 12,522 $150,267 $108,526 $41,741
----------[see note 4]--------
0.95 Wind aMW
(total blocks * kwh in blocks
* 12 months)/ 8760 hours/1000
Assumptions
Wholesale Cost 3/0.035 $ per kwh 72%(m)
A&G (Mktg) Cost 0.005 $ per kwh 28%(n)
Total Cost 0.04 $ per kwh

Embedded Energy Cost 0.022 $ per kwh

Incremental Cost (Premium)0.018 $ per kwh
Retail Pricing 55.6 kwh per block
1 $ per block
Notes
1/ FERC Form 1, average 2000
2/ Does not include revenue from embedded portion of power supply: embedded cost (i.e., $0.022 per kwh) * wind kwh =$183,660
3/ Wholesale cost to supplier:wholesale cost * wind kwh =$292,186 (i.e., $0.035 per kwh * wind kwh)
4/ Does not include tax and gross-up effects.