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David J. Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Mfairs
A vista Corporation
1411 E. Mission Avenue
P. O. Box 3727
Spokane, Washington 99220
Phone: (509) 489-0500, Fax: (509) 495-8851
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MA TIER OF THE SUBMISSION OF THE
POWER COST ADJUSTMENT (PC A) STATUS
REPORT OF A VISTA CORPORATION AND
REQUEST FOR RECOVERY OF POWER COSTS
DEFERRED THROUGH JUNE 30. 2005
CASE NO. A VU-05-
I. INTRODUCTION
A vista Corporation, doing business as A vista Utilities (hereinafter A vista or Company), at
1411 East Mission Avenue, Spokane, Washington, respectfully files the status report as required by
the Commission 1 , and requests the Commission issue an order approving recovery of power costs
deferred through June 30, 2005, and the continuation of the existing PCA surcharge. The existing
PCA surcharge of 2.448% was approved effective April 15, 2005 by Order No. 29752 dated April
, 2005 in Case No. A VU-05-1. In that case the PCA surcharge was reduced to offset the
increase in base tariff rates to recover costs associated with the purchase of the second half of the
Coyote Springs 2 generating plant.
As stated by the Commission at page 6 of its Order No. 29605 dated October 8, 2004 in Case No. A VU-04-
The actual remaining PCA deferral balance as of June 30, 2005, will be subject to review by this Commission prior
to establishing a surcharge for any additional period of time.
A VISTA'S APPLICATION FOR RECOVERY OF DEFERRED POWER COSTS PAGE
A 19.4% surcharge was originally authorized by this Commission by Order No. 28876 dated
October 11 , 2001 in Case No. A VU-Ol-ll. The surcharge was extended by Order No. 29130
dated October 11, 2002 in Case No. A VU-02-, and by Order No. 29377 dated November 18
2003 in Case No. A VU-03-6. The surcharge was reduced to 4.385% effective September 9, 2004
in conjunction with a general rate increase authorized by Amended Interlocutory Order No. 29588 in
Case No. A VU-04-1 dated September 9,2004. The surcharge was then reduced to the existing
level of 2.448% effective April 15, 2005 in Case No. A VU-05-
Pursuant to Order No. 29605 in Case No. A VU-04-, this filing, along with the attached
testimony and associated workpapers (incorporated herein by reference), serves as the PCA status
report for twelve months ended June 30, 2005. In this filing the Company has identified the power
cost deferrals during the review period, and has explained the primary factors causing the PCA
deferrals.
The Company requests that this status report be processed under the Commission s Modified
Procedure rules.
Communications in reference to this Application should be addressed to:
Kelly O. Norwood
Vice President
State and Federal Regulation
A vista Corporation
1411 E. Mission Avenue
Spokane, Washington 99220
Phone: (509) 495-4267
Fax: (509) 495-8851
David J. Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
A vista Corporation
1411 E. Mission Avenue
Spokane, Washington 99220
Phone: (509) 489-0500
Fax: (509) 495-8851
II. DEFERRAL ACTIVITY AND REPORTING
The deferral balance of $26.1 million at June 30, 2004 is shown below, together with the
changes in the balance through June 30, 2005. Mr. McKenzie s testimony explains the changes in
A VISTA'S APPLICATION FOR RECOVERY OF DEFERRED POWER COSTS PAGE 2
the deferral balance and Mr. Storro s testimony provides additional explanation of the factors
causing the deferral entries for the period July 2004 through June 2005.
Unrecovered balance at June 30, 2004
Net Deferral Activity (July 2004 - June 2005)
Amortizations Related to Surcharge Revenues (July 2004 - June 2005)
Intervenor Funding Amount
Write-offs (Deal A and Deal B)
Interest (Net)
Unrecovered balance at June 30, 2005
$26,105,927
337,109
877 581
623
378,011
264.743
;5.935.324
Monthly reports have been filed with the Commission regarding actual PCA deferral entries
to date. To facilitate Staffs review, additional copies of those reports for the months of July 2004
through June 2005 have been included with this filing and have also been provided to Potlatch
Corporation who intervened in A VU-Ol-ll and A VU-02-6. As already noted, the Company
requests that this filing be processed under the Commission s Modified Procedure rules.
Ill. NO TARIFF CHANGES
The Company is not proposing to change the existing PCA surcharge rates as set forth under
Eighth Revision Sheet 66 as a result of this filing. The existing PCA surcharge rates produce annual
revenues of approximately $4 268,000, which is less than the unrecovered deferral balance of
$5,935 324 at June 30, 2005. The Company proposes that the existing surcharge rates remain in
place and that the surcharge rates be reviewed again when the PCA status filing is made next year
covering the July 2005 through June 2006 twelve-month period.
In the past the PCA status filing was due 60 days prior to the expiration of the surcharge.
Since the surcharge rate was lowered on September 9, 2004 and again on April 15, 2005, there no
longer appears to be an established expiration date. Avista suggests, on a going-forward basis, that
the PCA status filing be required to be filed on or before August 15th of each year, which is about 45
A VISTA'S APPLICATION FOR RECOVERY OF DEFERRED POWER COSTS PAGE 3
days after the end of the twelve months ended June 30th reporting period. Proposed modifications to
the PCA surcharge or rebate rates could still be addressed in the status report proceeding, or in some
other proceeding.
IV. REQUEST FOR RELIEF
The Company respectfully requests the Commission for an order approving recovery of
power costs deferred through June 30, 2005 and the continuation of the existing PCA surcharge
rates. The Company requests that this status report filing and request for recovery of deferred power
costs be processed under the Commission s Modified Procedure rules.
Dated at Spokane, Washington this 10th day of August 2005.
VISTA CORPORATION
BY
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Dav a .L1\1eyer
Vice President and Chief Counsel of
Regulatory and Governmental Mfairs
A VISTA'S APPLICATION FOR RECOVERY OF DEFERRED POWER COSTS PAGE 4
VERIFICATION
STATE OF WASHINGTON)
County of Spokane
David J. Meyer, being rust duly sworn on oath, deposes and says: That he is the Vice
President and Chief Counsel of Regulatory and Governmental Affairs of A vista Corporation and
makes this verification for and on behalf of said corporation, being thereto duly authorized;
That he has read the foregoing filing, knows the contents thereof, and believes the same to be
true.
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SIGNED AND SWORN to before me this 10th day of August 2005, by David J. Meyer.
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NOT AR BLIC in and for the State of
Washington, residing at Spokane.
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A VISTA'S APPLICATION FOR RECOVERY OF DEFERRED POWER COSTS PAGE 5
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have served Avista Corporation s filing related to
Avista Corporation s submission of the Power Cost Adjustment (PCA) Status
Report and Request for Recovery of Power Costs Deferred through June 30
2005, by mailing a copy via overnight mail thereof, postage prepaid to the
following:
Ms Jean D Jewell, Secretary
Idaho Public Utilities Commission
PO Box 83702
West 472 Washington
Boise, ID 83720-5983
Ralph Davisson
Potlatch Corporation
601 W. Riverside Ave.
Suite 1100
Spokane, W A 99201
(Workpapers Not Included)
Conley E. Ward
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83701-2720
Dated at Spokane , Washington this 10th day of August 2005.
Patty 01
Rates Coordinator
David J.Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
A vista Corporation
1411 E. Mission Avenue
P. O. Box 3727
Spokane, Washington 99220
Phone: (509) 489-0500, Fax: (509) 495-8851
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE SUBMISSION OF THE
POWER COST ADmSTMENT (PCA) STATUS
REPORT OF A VISTA CORPORATION AND
REQUEST FOR RECOVERY OF POWER COSTS
DEFERRED THROUGH JUNE 30. 2005
CASE NO. A VU-05-
DIRECT TESTllv10NY
RONALD L. MCKENZIE
FOR AVIS T A CORPORATION
Please state your name, the name of your employer and your business address.
My name is Ronald L. McKenzie. I am employed by A vista Corporation at 1411
East Mission Avenue, Spokane, Washington.
In what capacity are you employed?
I am employed by A vista as Manager of Regulatory Accounting in the State and
Federal Regulation Department.
Please state your educational background and professional experience.
I graduated from Eastern Washington University in 1973 with a Bachelor of Arts
Degree in Business Administration, majoring in Accounting. I joined the Company in September
1974.I obtained a Master of Business Administration Degree from Eastern Washington
University in 1~89. I have attended several utility accounting and ratemaking courses and
workshops. I have held various accounting positions within the Company. I have served in the
State and Federal Regulation Department for the majority of my career with the Company.
What is the scope of your testimony in this proceeding?
My. testimony provides a status report of the accounting entries and account
balances related to the Idaho Power Cost Adjustment (PCA) for the twelve months ended June
, 2005. The unrecovered deferral balance at June 30, 2005 is $5 935 324. In this filing no
change is being requested to the existing PCA Schedule 66 rate.
Are you sponsoring an Exhibit?
Yes. I am sponsoring Exhibit No. - (RLM-l), consisting of the existing PCA
tariff, Schedule 66.
Would you please show the change in the unrecovered deferral balance from
June 30, 2004 to June 30, 2005?
McKenzie, Di
A vista
Page 1
Yes. The change in the unrecovered deferral balance from June 30, 2004 to June
2005 is shown below:
Unrecovered balance at June 30, 2004
Net Deferral Activity (July 2004 - June 2005)
Amortizations Related to Surcharge Revenues (July 2004 - June 2005)
Intervenor Funding Amount
Write-offs (Deal A and Deal B)
Interest (Net)
Unrecovered balance at June 30, 2005
Would you please explain the components listed above?
Yes.The net deferral activity amount of $3 337 109 represents the Idaho
$26 105 927
337 109
877 581
623
378 011
, -
264.743
$5.935.324
jurisdictional share of the excess power costs deferred under the PCA mechanism by A vista for
the twelve months ended June 30, 2005. Mr. Storro discusses the components that make up this
amount. The Company absorbed excess power costs amounting to $306 141 for the twelve-
month period in addition to the Deal A and Deal B write-offs shown above.
The amount for amortizations related to surcharge revenues of -$11 877 581 represents
the amount of surcharge revenues for the twelve months ended June 30, 2005 net of revenue-
related expenses (commission fees and uncollectibles). During the twelve-month period the
surcharge rates have been lowered twice. The surcharge rates were lowered from 19.4% to
385% effective September 9, 2004 in conjunction with a general rate increase authorized by
Amended Interlocutory Order No. 29588 in Case No. A VU-04-1 dated September 9, 2004.
The surcharge rates were then lowered to the existing level of2.448% effective April 15, 2005 by
Order No. 29752 dated April 12, 2005 in Case No. A VU-05-1 to offset the increase in base
tariff rates to recover costs associated with the purchase of the second half of the Coyote Springs
2 generating plant. The existing surcharge rates produce annual revenues of approximately
268 000.
McKenzie, Di
A vista
Page 2
The intervenor funding amount of $12 623 represents the amount paid by Avista for
intervenor funding awarded to the Community Action Partnership Association of Idaho pursuant
to Order No. 29602 in Case No. A VU-04-1 dated October 8 2004.
The write-off amount of -$11 378 011 relates to Deal A and Deal B losses that were
excluded from PCA recovery by Order No. 29602.
The -$264 743 interest amount represents interest for the twelve-month period July 1
2004 through June 30, 2005 as well as the reversal of interest related to the Deal A and Deal B
losses that were excluded from PCA recovery.Interest for the twelve-month period was
calculated using the Customer Deposit Rate (July-December 2004 of %, January-June 2005 of
2%) on current year deferrals and the Customer Deposit Rate plus 2% on carryover balances
from one year to the next. This interest rate methodology was approved by Order No. 29323 in
Case No. A VU-03-04 dated August 21 2003.
Was a notice supplied to customers regarding the Company s PCA status
report and request for recovery of deferred power costs?
No. The Company is not proposing to change the existing PCA surcharge rates.
The Company is proposing that the existing surcharge rates remain in place and that the
surcharge rates be reviewed again when the PCA status filing is made next year covering the July
2005 through June 2006 twelve-month period. Exhibit No. - (RLM-l) is a copy of the
existing Schedule 66.
Is the Company continuing with its customer bill paying assistance programs?
Yes. The Company has several programs available to assist customers with paying
their bills. Avista s comfort level billing program offers customers the option of averaging their
bills and paying the same monthly amount all year long in order to smooth out the seasonal highs
McKenzie, Di
A vista
Page 3
and lows.Under the C.S. (Customer Assistance Referral and Evaluation Service)
program, specially trained customer service representatives provide referrals to area agencies and
churches for customers with special needs for help with housing, utilities, medical assistance, etc.
LlliEAP (Low Income Heating Energy Assistance Program) is a Federal program aimed to help
low income customers pay their electric and gas bills. These funds are distributed through local
agencies. Idaho customers who have children, elderly or infirmed in the household may qualify
for the winter moratorium plan. From December 1 through February 28 customers are not
required to pay their bills in full and can defer payment or make partial payments. The Company
also works out p~yment arrangements with customers having difficulty paying their bills.
In addition, the Company has convenience options that help those who need flexibility,
but are generally able to pay. APS, or automatic payment service (money is deducted from
checking account automatically each month), is a good example. Other popular services include
debit and credit card service, check-by-phone or over the web, preferred due date (the customer
picks a more convenient date to pay than the one the Company states on the bill), and e-billing.
Does that conclude your prefiled direct testimony?
Yes it does.
McKenzie, Di
A vista
Page 4
David J. Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
A vista Corporation
1411 E. Mission Avenue
P. O. Box 3727
Spokane, Washington 99220
Phone: (509) 489-0500, Fax: (509) 495-8851
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. A VU--D~
EXHIBIT NO. _(RLM-
RONALD L. MCKENZIE
FOR A VISTA CORPORATION
IN THE MATTER OF THE SUBMISSION OF THE
POWER COST ADJUSTMENT (PCA) STATUS
REPORT OF AVISTA CORPORATION AND
REQUEST FOR RECOVERY OF POWER COSTS
DEFERRED THROUGH JUNE 30. 2005
I.P.C. No.
Eighth Revision Sheet 66
Canceling
Seventh Revision Sheet 66
VISTA CORPORATION
d/b/a A vista Utilities
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
April 12,2005 66 April 15, 2005
Per O.N. 29752
Jean D. Jewell Secretary
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold and to the flat rate charges for Company-owned or
Customer-owned Street Lighting and Area Lighting Service. This Rate Adjustment is
designed to recover or rebate a portion of the difference between actual and allowed
net power supply costs.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be increased by the
following amounts:
Schedule 1
Schedules 11 & 12
Schedules 21 & 22
Schedules 25
Schedule 25P
Schedules 31 & 32
163ct per kwh
190ct per kwh
145ct per kwh
O. 1 03ct per kwh
O93ct per kwh
151 ct per kwh
Flat rate charges for Company-owned or Customer-owned Street Lighting and
Area Lighting Service are to be increased by the following percentage:
Schedules 41-2.448%
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
Issued January 19, 2005 Effective April 15, 2005
Issued by A vista Utilities
Kelly O. Norwood - Vice President, State & Federal Regulation
Exhibit No. (RLM-
~~
It''( c.v Case No. A O5-
A vista
Page 1 of 1
McKenzie workpaper
Page 1 of 4
Avista Corporation
Summary of Idaho Power Cost Adjustment (PCA)
Balances, Deferrals and Amortizations
July 2004 through June 2005
Unrecovered Balance at June 30, 2004
Deferrals (July 2004 - June 2005)
Amortizations Related to Surcharge Revenues (July 2004 - June 2005)
Intervenor Funding Am9unt
W riteoffs
Interest (Net of Interest Associated with Writeoffs)
$26 105 927
337 109
877 581
623
378 011
264 743
935 324Unrecovered Balance at June 30, 2005
Check
Account 186380 ED 10 balance (Q) 6/30/05
Account 186390 ED 10 balance (Q) 6/30/05
$86,110 272
174 948
Net 935 324
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Avista Corporation
Summary of Idaho Power Cost Adjustment (PCA)
Accounting Entries - Amortization
July 2004 through June 2005
McKenzie workpaper
Page 2 of 4
Account 186390 ED 10
Beginning Balance 6/30/04
Jul-
Aug-
Sep-
Oct-
Nov-
Dec-
Jan-
Feb-
Mar -
Apr-
May-
Jun-
Total
Balance
End of
Month
$68 297 367
310,091 607,458
2,417 333 024 791
1,414 256 -74,439 047
894,415 -333,462
617 654 -951 116
738 550 689 666
788 697 -77,478,363
709 883 -78,188 246
655 084 - 78 843 330
613,416 -79,456 746
375,550 - 79 832 296
342 652 174 948
$11 877 581
Current
Month
Entries
A vista Corporation
Summary of Idaho Power Cost Adjustment (PCA)
Accounting Entries - Deferral Account
July 2004 through June 2005
Account 186380 ED ID
Current Balance
Month End of
Entries Month
Beginning Balance 6/30/04 $94,403 294
Jul-04 Deferral 741 648
Interest 688 190 630
Aug-04 Deferral 3,405 008
Interest 287 100 637 925
Sep-04 Deferral 263 589
Interest 157
Intervenor Funding 623
Writeoffs 702,418
Interest Adj.580 825 142 873
Oct-04 Deferral 023 235
Interest 11,415 131 053
Nov-04 Deferral 433 050
Interest 367
Reconsideration 324,407
Interest Adj.279 032 498
Dec-04 Deferral 853 621
Interest 216 188 093
Jan-05 Deferral 225,423
Interest 661 994 331
Feb-05 Deferral 370,265
Interest 762 652 828
Mar-05 Deferral 835 868
Interest 876 514 572
Apr-05 Deferral 816 631
Interest 175 356 378
May-05 Deferral 729,423
Interest 574 651 529
Jun-05 Deferral 563,440
Interest 183 110 272
Total 293 022
Deferrals 337 109
Interest 264 743
Intervenor Funding 623
W riteoffs 378 011
Total 293 022
McKenzie workpaper
Page 3 of 4
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9
DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL OF
REGULA TORY AND GOVERNMENT AL AFFAIRS
VISTA CORPORATION
O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: (509) 489-0500
FACSIMILE: (509) 495-8851
" i C .r::~Lt"L '1 LJ L...J
" ".~
: ;- L LJ
:WG5 !~UG I Ai"! 10= I 5
il) iiU PUBLIC
! TJ: ' T ! C c (' n f...M '(" C'
;j
i ,L I iL,.J vUt II I JJ
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE SUBMISSION OF
THE POWER COST ADJUSTMENT (PCA)
STATUS REPORT OF A VISTA CORPORATION)
AND REQUEST FOR RECOVERY OF POWER
COSTS DEFERRED THROUGH JUNE 30," 2005
CASE NO. A VU-05- Ob
DIRECT TESTIMONY
RICHARD L. STORRO
FOR A VISTA CORPORATION
I. INTRODUCTION
Please state your name, employer and business address.
My name is Richard L. Storro. My business address is 1411 East Mission
Avenue, Spokane, Washington, and I am employed by the Company as the Director of
Power Supply.
What is your educational background?
I participated in a program with the College of Idaho and the University of
Idaho, where upon completion I received a Bachelor of Science degree in physics from
the College of Idaho and a Bachelor of Science degree in electrical engineering from the
University of Idaho, both in 1973.
How long have you been employed by the Company?
I started working for A vista in 1973 as a distribution engineer. I have
worked in various engineering positions, and have held management positions in line and
gas operations, system operations, hydro production and construction, and transmission. I
joined the Energy Resources Department as a Power Marketer in 1997 and became
Director of Power' Supply in 2001. My primary responsibilities involve the oversight of
both the short-tenn and long-tenn planning and acquisition of power supply resources for
the Company.
What is the scope of your testimony in this proceeding?
My testimony will provide a brief summary of the factors driving power
supply expenses during the review period, July 2004 through June 2005.I also describe
the supporting documentation that is provided in electronic fonnat.
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II. SUMMARY
Would you please summarize power supply expenses during the July
2004 through June 2005 review period?
Yes. During the review period, Idaho s share of power supply expenses
exceeded the authorized level by $3 061 442 (not including Potlatch generation and
revenue and the adjustment for Centralia for the months of July, August and a portion of
September 2004). Of that total, the Company absorbed $306 141 or 10 percent of the
additional power costs subject to the 90%/1 0% sharing.l This resulted in a net increase
power supply costs for the period of $2 755 301. The total amount deferred during the
July 2004 through June 2005 period including the Potlatch and Centralia amounts was
337 109.
Power supply expenses were higher than the authorized level due to several
factors. Hydro generation, which was approximately 8.4 aMW below the authorized
level, which would account for approximately $1.5 million of increased expense. The net
expense related to the sale of gas originally purchased for generation added
approximately $600 000 million to Idaho s share of power supply expense. Some of this
expense is related to long-term gas purchases referred to as Deals "A" and "B" that has
previously been addressed by the Commission. Deals "A" and "B" purchases ended
October 31 2004.
1 The Potlatch power purchase and revenue associated with the purchase is tracked at 100% in the PCA per
Idaho Public Utilities Commission Order No. 29418 dated January 15, 2004. The 10% portion absorbed by
Avista is based on the portion of the PCA deferrals that are shared 90%/10% which was $3 061,442 during
the review period.
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Total natural gas fuel expense was approximately $2.7 million higher than the
authorized amount due primarily to higher than authorized natural gas prices and the
second half of Coyote Springs 2 being in operation from January 20, 2005 until April 15
2005 when the authorized expense reflected the gas for the second half of Coyote Springs
2. Operating margins from Coyote Springs 2 during the same period helped lower power
supply expense. Thermal fuel expense for the Colstrip and Kettle Falls plants was
approximately $600 000 million lower than the authorized amount.
What new long-term contracts did the Company enter into during the
July 2004 through June 2005 review period?
The Company entered into two new long-term contracts during the review
period. In October 2004, the Company signed five-year contract to purchase power from
a small hydro plant in western Washington. This was an extension, with new terms, of an
existing contract. In March 2005, the Company entered into a contract to exchange
power at the Coyote Springs 2 plant for power at the Mid Columbia for the period
January 2006 through December 2007.This contract effectively provides firm
transmission for the Coyote Springs 2 plant. These contracts have been provided
confidentially to IPUC Staff.
III. SUPPORTING DOCUMENTATION
Please provide a brief overview of the documentation provided by the
Company in this fIling.
The Company maintains a number of documents that record relevant
factors considered at the time of a transaction.The following is a list of current
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documents that are maintained. Unless noted these documents have been provided on a
compact disk as part of this filing. Other documents will be provided on request:
Gas/Electric Transaction Record:These documents record the key details of the
price, term and conditions of a transaction and include a discussion of market
conditions at the time of the transaction, the reason for the transaction, and
pertinent transmission or other delivery issues.The Company has provided
worksheets summarizing electric and natural gas transactions during the period.
Additional documentation will be provided on request.
Position Reports:These daily reports provide a summary of monthly loads and
resources over an 18-month forward period.Also included are forward
hydroelectric generation estimates as well as critical water generation variability.
Fixed price natural gas quantities are also shown assigned to the most economic
available generation plant.
Long-Term Physical Electric Load & Resource Tabulation:For transactions with
deliveries extending greater than the I8-month period covered by the Position
Report, the Company includes this document to show the net system position
during the extended period. This document also shows variability associated with
an 80% confidence interval around the combined variability of hydroelectric
generation and variability of load.
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Forward Market Electric and Natural Gas Price Curves:This daily data is
maintained in Nucleus, the Company s electronic energy transaction database
record system.
Electric/Gas - Heat Rate Transaction Worksheet:For each natural gas transaction
a worksheet is prepared which summarizes the economics of the transaction using
the forward electric and natural gas prices available in the market at the time
the transaction, the most economic available generator, and the resultant cost to
generate electric power (these worksheets will be provided on request for specific
electric or gas transactions).
Price Quote Worksheet:Provides a record of the natural gas purchase or sales
prices available from several parties in the market at the time of a particular gas
transaction. This record includes price infonnation at specific points of delivery
(part of Gas/Electric Transaction Records that will be provided on request for
specific transactions).
Credit Report:Lists those counter-parties with which the Company is allowed to
enter into either purchase or sales transactions as detennined by credit criteria set
by the Company. This report may also provide information on other parties
credit limits placed upon their own transactions with the Company (not provided
but available on request).
Does that conclude your direct pre-fIled testimony?
Yes.
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, CONFIDENTIAL
ATTACHMENTS