The URL can be used to link to this page

Home My WebLink About20040909Interlocutory Order No 29588.pdfOffice of the Secretary Service Date September 9, 2004 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF VISTA CORPORATION FOR THE AUTHORITY TO INCREASE ITS RATES AND ) CHARGES FOR ELECTRIC AND NATURAL GAS SERVICE TO ELECTRIC AND NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO. CASE NO. AVU-O4- VU -O4- INTERLOCUTO R ORDER NO. 29588 On February 6, 2004, A vista Corporation dba A vista Utilities (A vista; Company) filed an Application with the Idaho Public Utilities Commission (Commission) for authority to increase its rates and charges for electric and natural gas service in the State of Idaho. The Company in northern Idaho serves approximately 109 315 electric customers and 61 799 natural gas customers. The Company s original request of $35.2 million or a 24.% increase in electric revenue was revised at hearing to $31.1 million or 21.2%. The Company s original request of $4.754 million or a 9.16% increase in natural gas revenue was revised at hearing to $4.06 million or 7.8%. A proposed reduction in the Company s current Power Cost Adjustment (PCA) surcharge rate was also requested. The net amount of actual increase varies by class of customer and usage. A technical hearing in Case Nos. A VU-04-1 and A VU-04-1 was held in Boise Idaho the week of July 19 2004. The following parties appeared by and through their respective counsel of record: A vista Corporation Potlatch Corporation Coeur Silver Valley, Inc. David S. Meyer, Esq. Conley E. Ward, Esq. Charles L. A. Cox, Esq. Brad M. Purdy, Esq. Scott D. Woodbury, Esq. Lisa Nordstrom, Esq. Public testimony hearings were held in Kellogg and Sandpoint on July 26, 2004 and Lewiston on July 27, 2004. A continued technical hearing was held in Boise on August 16, 2004. The Community Action Partnership Association of Idaho (CAP AI) Commission Staff Commission in this Interlocutory Order issues an abbreviated Order identifying approved rate base, revenue requirement and resultant rates. The Commission also directs a change in the INTERLOCUTORY ORDER NO. 29588 Company s PCA deferral account balance and authorizes an extended PCA recovery period. It is the Commission s intention to issue a final Order with detailed reasoning within 30 days. Commission Findings The Commission has reviewed the filings of record in Case Nos. A VU-04-1 and A VU-04-1 including the Prehearing Memorandum filed by Potlatch, the transcript of technical proceedings, the transcript of public testimony and filed public comments, and the Petition for Intervenor Funding filed by CAP AI. Avista Utilities - Electric and Gas Electric: Regarding the Company electric operations, the Commission approves the following for rate base and revenue requirement. We also make ultimate findings regarding deferred PCA issues, Intervenor Funding and authorized changes in electric rates. Rate Base The Commission approves an electric pro forma rate base of$424 114 000. Revenue Requirement Current revenue recovered in electric base rates is $146 248 000. The Commission in this case approves a base revenue requirement of $170 964 195, an increase in electric base rates of $24 716 195 or 16.90%. The resultant average cents per kilowatt hour for base rates is 5.47 cents. Power Cost Adjustment (PCA) With respect to PCA issues deferred to this rate case in Order No. 29377 regarding Coyote Springs 2 (CS2), the Commission notes an audited PCA account balance May 31 , 2004 of $26 261 334 (reference Case No. A VU-04-3), disallows CS2 Deal B losses of $6,496 669 and disallows $4 771 550 of Deal A losses for a net PCA account balance total of$14 993 115. The Commission approves the Company proposal to recover the remaining PCA deferral balance over a two-year period. The resultant annual PCA recovery is $7,496 558, subject to annual PCA review and adjustment. The Commission authorizes a future change in the current uniform percentage recovery method to a recovery method based on energy consumption. The Commission in this Order also approves the assignment and recovery from the residential class through the PCA of authorized CAP AI intervenor funding in the amount of $12 622.75. INTERLOCUTORY ORDER NO. 29588 Electric Rates The electric rates we approve as just and reasonable are set out in attached Schedule A (Electric). Idaho Code 9 61-502. Base electric rates increase by $24 716 000 while PCA rates decrease by $20 337 000. The result is a net increase of $4 379 000 or 2.5%. The authorized revenue to be recovered in rates as set out below including residential exchange credit, Centralia credit, PCA surcharge and DSM rider is $176 226 208 for a total average rate of 5.64 cents or 5%. We establish a separate rate schedule for Potlatch. The proposed increase for an electric residential customer using an average of 941 kWhs per month is $4., or a 7.2% increase in their electric bill. Intervenor Funding The Commission approves CAP AI's Petition for Intervenor Funding in the requested amount of$12 622.75. Reference Idaho Code 9 61-617A. Our award is based on a finding that CAP AI's participation materially contributed to the Commission s decision, the costs of intervention are reasonable and would be a significant financial hardship for CAP AI if no award is given, the recommendations made by CAP AI differed materially from Staff s case, and the CAP AI's participation addressed issues of concern to residential and low income customers. The award is to be recovered from residential customers through the Company PCA mechanism. Natural Gas: Regarding A vista s natural gas operations the Commission approves the following for rate base and revenue requirement. We also make ultimate findings regarding natural gas rate base and authorized changes in natural gas rates. Rate Base The Commission approves a pro forma rate base of $59 653 000. Revenue Requirement The Commission approves additional natural gas revenues of $3 311 000 for a total revenue requirement of $55 230 000, a 6.38% revenue increase. Cost of Gas in Base Rates The Commission adopts A vista s proposal to add the current PGA weighted average cost of gas (W ACOG) adjustment of $0.27186/therm to base rates to produce a total base rate gas cost of $0.44989/therm. INTERLOCUTORY ORDER NO. 29588 Natural Gas Rates The natural gas rates the Commission approves as just and reasonable are those set forth in attached Schedule B (Gas). Idaho Code 9 61-502. The base rates we approve in this case are the fixed base rates incorporated in the Company s PGA adjustment authorized simultaneously in Order No. 29590, Case No. A VU-04-2. The proposed increase for a natural gas residential customer using an average of 73 therms of gas per month will be $12.84 per month, or 21.39%. CONCLUSIONS OF LAW The Public Utilities Commission has jurisdiction over A vista Corporation dba A vista Utilities and its Application in Case Nos. A VU-04-1 and A VU-04-1 pursuant to Idaho Code, Title 61 and the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq. ORDER In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED that Avista Utilities file tariffs in conformance with this Order to be effective on September 9, 2004, for service rendered on and after that date. IT IS FURTHER ORDERED that Community Action Partnership Association of Idaho is awarded intervenor funding in the amount of$12 622.75. THIS IS AN INTERLOCUTORY ORDER, not a final and appealable Order of the Commission. The period of reconsideration will not begin until the final Order is issued. INTERLOCUTORY ORDER NO. 29588 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this &Hv day of September 2004. ATTEST: ~h ~ ~( AL.OS Barbara Barrows Assistant Commission Secretary bls/O:A VUEO401 A VUGO401 sw3 INTERLOCUTORY ORDER NO. 29588 ARSHA H. SMITH, COMMISSIONER ENNIS S. HANSE , COMMISSIONER AVISTA UTILITIES AVU-O4- Present and Commission Ordered Electric Rates Present Rates Residential Service - Schedule Commission Ordered Rates $4.00 Basic Charge $4.Basic Charge First 600 kWhs All over 600 kWhs 555 ~/kWh 303 ~/kWh First 600 kWhs All over 600 kWhs 717 ~/kWh 6.487 ~/kWh PCA Rate 0 - 600 kWh All over 600 kWh 939 ~/kWh 092 ~/kWh PCA Rate 274 ~/kWh Present Rates General Service - Schedule Commission Ordered Rates $6.00 Basic Charge $6.Basic Charge Energy Charge 6. 564 ~/kWh First 3650 kWh All Over 3650 kWh 148 ~/kWh 076 ~/kWh Demand Charge: 20 kW or less Over 20 kW no charge $3.50/kW Demand Charge: 20 kW or less Over 20 kW no charge $3.50/kW PCA Rate 391 ~/kWh PCA Rate 369 ~/kWh Present Rates Large General Service - Schedule Commission Ordered Rates996 ~/kWh First 250 000 kWh 4.688 ~/kWh All Over 250 000 kWh 3.985 ~/kWh Energy Charge Demand Charge:Demand Charge: 50 kW or less $225.50 kW or less $250. Over 50 kW $2.75/kW Over 50 kW $3.00/kW Primary Voltage Discount 20~/kW Primary Voltage Discount 20~/kW PCA Rate 011 ~/kWh PCA Rate 265 ~/kWh Extra Large General Service - Schedule 25Present Rates Commission Ordered Rates Energy Charge 2.874 ~/kWh First 500 000 kWh 3.862 ~/kWh All Over 500 000 kWh 3.259 ~/kWh Demand Charge: 000 kva or less Over 3 000 kva 500. $2.25/kva Demand Charge: 000 kva or less Over 3 000 kva 000. $2.75/kva Primary Voltage Discount 20~/kva Primary Voltage Discount 20~/kva Annual Minimum $406 140 Annual Minimum $502 670 PCA Rate 607 ~/kWh PCA Rate 177 ~/kWh SCHEDULE A (Electric) ORDER NO. 29588 CASE NOS. AVU-O4- A VU-O4- Rates Exhibit 9r712004 KDH VISTA UTILITIES AVU-O4- Present and Commission Ordered Electric Rates Potlatch - Schedule 25P Present Rates First 3650 kWh Energy Charge 874 ~/kWh Energy Charge 333 ~/kWh Demand Charge:Demand Charge: 000 kva or less 500.000 kva or less 000. Over 3 000 kva $2.25/kva Over 3 000 kva $2.7 5/kva Primary Voltage Discount 20~/kva Primary Voltage Discount 20~/kva Annual Minimum $406 140 Annual Minimum $474 630 PCA Rate 607 ~/kWh PCA Rate 163 ~/kWh Present Rates Pumping Service - Schedule Commission Ordered Rates $6.00 Basic Charge $6.Basic Charge PCA Rate 716 ~/kWh First 85 kWh/kW 6 .440 ~/kWh 716 ~/kWh Next 80 kWh/kW 6 .440 ~/kWh 548 ~/kWh All additional kWhs 5.474 ~/kWh 888 ~/kWh PCA Rate 0 .267 ~/kWh First 85 kWh/kW Next 80 kWh/kW All additional kWhs Street and Area Lights - Schedules 41-Present Rates Commission Ordered Rates Base Rates Various Base Rate Increase 20.19% PCA Surcharge 19.37%PCA Surcharge 13% Rates Exhibit 9r712004 KDH SCHEDULE A (Electric) ORDER NO. 29588 CASE NOS. A VU-O4- A VU-O4- AVISTA UTILITIES AVU-04- Present and Commission Ordered Natural Gas Rates Present Rates General Service - Schedule 101 Commission Ordered Rates $3.28 Basic Charge $3.Basic Charge All Therms 7 4.197 ~/Therm All Therms 80.050 ~/Therm Present Rates Large General Service - Schedule 111 Commission Ordered Rates 1 st 200 Therms Next 800 Therms Over 1 ,000 Therms 75.836~/Therm 74 .197 ~/Therm 64.975#Therm 1 st 200 Therms Next 800 Therms Over 1 000 Therms 78.301 ~/Therm 76.481 ~/Therm 66.239~/Therm Minimum - $97.30/Month plus 27.186~/Therm Minimum - $156.60/Month Present Rates Large General Service - Schedule 121 Commission Ordered Rates 1 st 500 Therms Next 500 Therms Next 9 000 Therms Over 10 000 Therms 7 4.852~/Therm 74.197~/Therm 64.975~/Therm 63.284~/Therm 1 st 500 Therms Next 500 Therms Next 9 000 Therms Over 10 000 Therms 77 .209~/Therm 76.481 ~/Therm 66.239#Therm 64.361 ~/Therm Minimum - $238.33/Month plus 27.186~/Therm Minimum - $386.05/Month Present Rates Interruptible Service - Schedule 131 Commission Ordered Rates All Therms 55. 724~/Therm All Therms 56. 586~/Therm Present Rates Transportation Service - Schedule 146 Commission Ordered Rates Basic Charge $0.Basic Charge $200 / Month All Therms 1 0.57 4~/Therm All Therms 1 0.960~/Therm 1 Includes Purchase Gas Adjustment Schedule 150/Excludes all other rate adjustments 2 Does not include Schedule 150 or any other rate adjustment. Rates Exhibit.xls tab Rate Exh 9r712004 MJF SCHEDULE B (Natural Gas) ORDER NO. 29588 CASE NOS. A VU-O4- A VU-O4-