20041020Comments.pdf

" O
.~~
,j--- f \ c r
t:.C t i if C.
j!",;,;,..;
f~-l~.
SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 1895
znuli ocr 20 rH"t iO=
,,'/ ,-; (
)ULil;
tlTiLiTIES COt,;;r~'IISSIO~J
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 APPLICATION OF
VISTA CORPORATION FOR A
MODIFICATION TO THE RESIDENTIAL
AND SMALL FARM ENERGY RATE
ADJUSTMENT CREDIT (SCHEDULE 59).
CASE NO. A VU-O4-
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, and in response to the
Application of Avista Corporation filed on October 1, 2004 in Case No. A VU-04-, submits
the following comments.
BACKGROUND AND STAFF ANALYSIS
On October 1 , 2004, A vista Corporation dba A vista Utilities (A vista; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting authority to
increase its Residential and Farm Energy Rate Credit (BP A Credit). The current credit is 0.252
~/kWh and the proposed credit is 0.412 ~/kWh.
The proposed credit is made up of three parts, a deferred unrefunded balance, an amount
projected to be received from BP A during the coming year under the existing contract and an
additional amount associated with the secondary effects of reduced customer revenue. The
secondary effects of reduced customer revenue to be passed onto customers are reduced
STAFF COMMENTS OCTOBER 20, 2004
commission fees and reduced uncollectibles. The total amount to be credited to customers is
divided by expected annual sales subject to the credit to get the credit rate. The credit rate
calculation contains assumptions about the number ofkWhs the Company will sell to qualifying
customers as well as the level of the three Bonneville Power Administration (BP A) Cost
Recovery Adjustment Clauses (CRACs) which affect BPA's payments to Avista. Differences
between what A vista receives from BP A, with adjustment for secondary effects, and what A vista
credits to customers are deferred and will be trued up in the following year.
STAFF RECOMMENDATION
The Staff has reviewed the Company s accounting and calculations. Staff finds the
deferral calculations and quantification of the secondary effects of the credit to be correct. The
Staff believes that the rate calculation is based on reasonable estimates of the money Avista will
receive from BP A and the amount of energy A vista will sell to it's customers who qualify for the
credit. Staff recommends approval of the Company s Application as filed for an effective date of
November 1 2004.
Respectfully submitted this
dO
day of October 2004.
Scot Woodbury
Deputy Attorney General
Technical Staff: Keith Hessing
Kathy Stockton
i: umisc :commen ts/ avueO4.3 swkhkls
STAFF COMMENTS OCTOBER 20, 2004
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 20TH DAY OF OCTOBER 2004
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF IN CASE
NO. AVU-04-, BY MAILING A COpy THEREOF POSTAGE PREPAID TO THE
FOLLOWING:
DAVID J. MEYER
SR VP AND GENERAL COUNSEL
VISTA CORPORATION
PO BOX 3727
SPOKANE W A 99220-3727
E-mail dmeyer~avistacorp.com
KELLY NORWOOD
VICE PRESIDENT - STATE & FED. REG.
AVIS T A UTILITIES
PO BOX 3727
SPOKANE WA 99220-3727
E- mail Kell y .norwood~avistacorp. com
~A,ul.l. Vt/,Q4CJ",,--
SECRETARY
CERTIFICATE OF SERVICE