20040312Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
For Immediate Release
Case No. A VU-04-
March 12, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
A vista proposes to sell its interest in Washington hydro plant
Boise - A vista Utilities is seeking approval from the Idaho Public Utilities Commission to sell its interest in the
Skookumchuck Hydroelectric Plant near Centralia, Wash, to Washington LLC, which intends to operate the plant as
a wholesale generator.
A vista contends the I-megawatt plant does not produce enough energy to make it worth the costs of operating and
maintaining it. A vista projects the sale of Skookumchuck will result in a small after-tax gain. The Idaho share (33
percent) of the after-tax gain is projected to be about $216 000. A vista proposes to allocate the gain between
ratepayers and shareholders in the same manner that A vista s after-tax gain on the sale of the Centralia Power Plant
was allocated in 1999. Under that formula, the allocation to ratepayers would be about $151 000 with about $65 000
going to shareholders.
A vista is proposing that the gain to ratepayers be added to the deferred gain on the Centralia Power Plant, which is
currently being passed on to ratepayers through a rate credit.
The project is an earth-filled dam and hydroelectric generating plant built in 1973. The dam serves as a water storage
facility for the nearby Centralia Power Plant. Other owners include PacifiCorp, Public Utility District No.1 of
Snohomish (W A) County, Puget Sound Energy, City of Tacoma, City of Seattle and Public Utility District 1 of
Grace Harbor County. Washington LLC plans to continue operation of the project to provide cooling water supply to
the Centralia Power Plant and to sell remaining output on the wholesale market.
A vista contends the sale will not harm the public interest because competitive markets will be unaffected by the sale.
Customers will not be harmed if the project is sold, A vista contends, because the cost of the power generated from
Skookumchuck substantially exceeds the projected cost of market power.
The commission will take written comment on the matter through April 1. Persons wishing to submit comments can
do so via e-mail by accessing the commission s homepage at www.puc.state.id.and clicking on "Comments &
Questions." Fill in the case number (A VU-04-2) and enter your comments. Comments can also be mailed to P.
Box 83720, Boise, ill 83720-0074 or faxed to [phone].
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