staffsupp.pdf

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 1895

Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983

Attorney for the Commission Staff

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE SUBMISSION OF
THE STATUS REPORT OF AVISTA
CORPORATION AND APPLICATION FOR A
CONTINUATION OF A POWER COST
ADJUSTMENT (PCA) SURCHARGE.

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CASE NO. AVU-E-02-6

SUPPLEMENTAL REPLY
COMMENTS OF
THE COMMISSION STAFF

COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Scott Woodbury, Deputy Attorney General, submits the following reply
comments.
On August 9, 2002, Avista Corporation doing business as Avista Utilities (Avista;
Company) filed an Application with the Idaho Public Utilities Commission (Commission)
requesting a continuation of the electric Schedule 66 Power Cost Adjustment (PCA) surcharge of
19.4% ($23.6 million) currently scheduled to expire on October 11, 2002. As reflected in this
filing, Avista states that the current status of the unrecovered PCA deferral balance as of June 30,
2002, is $45,600,228 for its Idaho jurisdiction. Avista is requesting that the Commission continue
the PCA surcharge for an additional 12 months, through October 11, 2003.
Staff’s original comments were filed on September 20, 2002. Responses to production
requests received September 24, 2002 along with subsequent conversations with Avista have
revealed additional details that necessitate supplemental reply comments.
SUPPLEMENTAL REPLY COMMENTS 1 SEPTEMBER 27, 2002
SUPPLEMENTAL REPLY COMMENTS 2 SEPTEMBER 27, 2002
Consistent with the original comments, Staff takes the position that capital costs are not
variable fuel costs and should not be recovered through the PCA. Staff originally proposed to
exclude capital costs associated with the Kettle Falls project in the amount of $56,598.
Subsequent to receiving the production request responses, and after additional contact with
the Company, Staff has identified additional capital costs for the Devil’s Gap and Othello projects
that were included in the PCA deferral balance. Staff recommends the removal of all capital costs
associated with the Kettle Falls, Devil’s Gap and Othello projects and the interest associated with
these capital costs.
In addition to the Kettle Falls capital costs of $56,598, Staff proposes to exclude $96,743
associated with the Devil’s Gap project and $744,884 associated with the Othello project.
Attached is revised Attachment A showing these changes with the interest impact. These
adjustments do not change the proposed surcharge rate.

Respectively submitted this day of September 2001.

___________________________
Scott Woodbury
Deputy Attorney General

Technical Staff: Kathy Stockton

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