20041102Final Order.pdf

Office of the Secretary
Service Date
November 1 , 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION FOR A
MODIFICA TION TO THE RESIDENTIAL
AND SMALL FARM ENERGY RATE
ADJUSTMENT CREDIT.ORDER NO. 29623
CASE NO. AVU-O4-
On October 1 , 2004, Avista Corp. dba Avista Utilities (Avista; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting approval of a
change to the Company s Schedule 59 Residential and Farm Energy Rate Adjustment tariff.
A vista requests authority to increase the residential and farm energy rate adjustment credit from
0.252~ per kWh to 0.412~ per kWh for an effective date of November 1 2004. The Commission
in this Order approves the proposed increase.
As a northwest regional utility, A vista is entitled to participate in the Residential
Exchange Program (REP) that extends the benefits of the Columbia River Federal Power
Program to residential and small farm consumers served by investor-owned utilities in the
region. Section 5c of the Northwest Power Act, 16 U.C. 9 839( c). The REP is administered by
the Bonneville Power Administration (BP A). A Residential Exchange Settlement Agreement
between A vista and BP A settled the parties' rights and obligations for the Residential Exchange
Program for the ten-year term of the Agreement, October 1 , 2001 through September 30, 2011.
A vista uses the energy rate adjustment credit to pass onto its qualifying residential and small
farm customers the estimated residential exchange benefits it receives from BP A. The proposed
rate credit of 0.412~ per kWh is designed to pass through the projected balance of accumulated
benefits at October 31 , 2004, as well as the expected level of benefits to be received from BP
during the period November 1 2004 through October 31 2005.
The proposed 0.412~ credit is a uniform cents per kilowatt hour decrease that will
apply to residential and small farm customers served under Schedules 1 , 12, 22, 32, and 48. For
residential and small farm area lighting customers served under Schedule 48, the proposed credit
is applied on a uniform cents per kilowatt hour basis to the energy usages of the various lights
covered under that rate schedule. The calculation of the proposed rate credit is shown in
Company workpapers. As reflected in the Company s Application, the proposed increase in the
ORDER NO. 29623
rate credit will result in an overall reduction in annual revenue of approximately $1.7 million.
The increase in the rate credit will have no effect on Avista s net income.
The Application in Case No. A VU-04-4 was processed pursuant to Modified
Procedure. The deadline for filing written comments was October 28, 2004. Commission Staff
was the only party to file comments.
Staff Analysis
Staff has reviewed the Company s Application, workpapers, accounting and
calculations. Staff finds the deferral calculations and quantification of the secondary effects of
the BP exchange credit to be correct. Staff believes that the rate calculation is based on
reasonable estimates of the money A vista will receive from BP A and the amount of energy
A vista will sell to its customers who qualify for the credit. Staff recommends approval of the
Company s Application as filed for an effective date of November 1 2004.
Commission Findings
The Commission has reviewed the filings of record in Case No. A VU-04-
including the comments and recommendations of Commission Staff. The Commission continues
to find it reasonable to process the Company s Application pursuant to Modified Procedure, i.
by written submission rather than by hearing. IDAP A 31.01.01.204.
A vista in this case requests authority to increase its Schedule 59 Residential and
Small Farm Energy Rate Adjustment Credit from 0.252 cents per kilowatt hour to 0.412 cents
per kilowatt hour for an effective date of November 1 , 2004. The proposed credit will benefit
qualifying residential and small farm customers and will provide appropriate benefits from
regional power as contemplated by the 1980 Pacific Northwest Electric Power Planning and
Conservation Act. Weare satisfied that the Company workpapers, accounting and calculations
are correct and reasonable.
The Idaho Public Utilities Commission expresses its continued appreciation to the
Bonneville Power Administration for its acknowledgement that the benefits of the Federal
Columbia River Power System (FCRPS) should be spread to all the residents of the Pacific
Northwest. The Commission finds it reasonable to approve the proposed increase in the
Company s Schedule 59 Residential and Small Farm Energy Rate Adjustment Credit for an
effective date of November 1 , 2004.
ORDER NO. 29623
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over A vista Corporation dba
A vista Utilities, an electric utility, pursuant to the authority granted in Title 61 , Idaho Code, 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 and the Commission does hereby approve an increase in Avista
Schedule 59 Residential and Small Farm Energy Rate Adjustment Credit from 0.252 cents per
kilowatt hour to 0.412 cents per kilowatt hour for an effective date of November 1 2004.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 51'
day of November 2004.
2! IfvdhL
P AUL'KJELLANDE , PRESIDENT
OW;L
MARSHA H. SMITH, COMMISSIONER
, OMMISSIONER
ATTEST:
bls/O:A VUE0404 sw
ORDER NO. 29623