20080520Compliance Filing.pdf

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~~~'V'STA.
Corp.
ell
ecretar
c Utilties Commission
3720
, il 83720-0074
Re: Annual Compliance Filng of Asset Retirement Obligation (SFAS 143)
Case Nos. A VU-E-05-09 & A VU-G-05-03
Dear Ms. Jewell:
In Order No. 29962, the Commission directed the Company to record regulatory assets or
liabilities associated with the implementation of Statement of Financial Accounting Standards
(SFAS) 143. As a result of the Order, the Company is required to file anually, and as par of
any rate case fiing, all joural entres made under the requirements of SF AS 143.
This filing requirement was inadvertently overlooked for 2006. Therefore, enclosed, please find
three copies of the 2006 and 2007 SF AS 143 anual compliance filing.
In addition, the Company filed a general rate case in April 2008, Case Nos. A VU-E-08-01 and
A VU-G-08-01. These ARO transactions have been removed from the 2007 Results of
Operations and have no impact on the Company's earnngs or rate request in this case. Any
questions pertaining to this matter in the pending general rate case can be addressed to CompanyWitness Liz Andrews. '
Please direct any questions regarding this filing to Liz Andrews at [phone].
Sincerely,
?û J~~
Kelly Norwood
Vice President, State and Federal Regulation
Enclosure
LA
Avista Utilties
FAS 143 Accounting. Asset Retirement Obligations
Year Ended December 31,2006
FERC
Account Dr.Cr.
December 31! 2005 Balances
ARO Assets 101000 2,081,864
Accumulated Depreciation 108000 521,600
Regulatory Assets 182376 2,968,560
ARO Liabilities 230000 4,528,824
Recorded Journal Entries
Calendar Year 2006 Accretion. Depreciation and Removal Costs Entries
1 Regulatory Assets 182376 280,915
ARO Liabilities 230000 280,915
To record accretion expense on AROs.
2 Regulatory Assets 182376 42,520
Accumulated Depreciation 108000 42,520
To record depreciation on the ARO assets.
Calendar Year 2006 Changes in Estimates
3 ARO Assets 101000
Accumulated Depreciation 108000
Regulatory Assets 182376
ARO Liabilities 230000
To record changes in estimates. None in 2006.
December 31! 2006 Balances
AROAssets 101000 2,081,864
Accumulated Depreciation 108000 564,120
Regulatory Assets 182376 3,291,995
ARO Liabilities 230000 4,809,739
ID_ARO_Compliance.xls Page 1 of 3
Avista Utilties
FAS 143 Accounting - Asset Retirement Obligations
Year Ended December 31,2007
FERC
Account Dr.Cr.
December 31! 2006 Balances
ARO Assets 101000 2,081,864
Accumulated Depreciation 108000 564,120
Regulatory Assets 182376 3,291,995
ARO Liabilties 230000 4,809,739
Recorded Journal Entries
Calendar Year 2007 Accretion, Depreciation and Removal Costs Entries
1 Regulatory Assets 182376 243,309
ARO Liabilities 230000 243,309
To record accretion expense on AROs.
2 Regulatory Assets 182376 42,188
Accumulated Depreciation 108000 42,188
To record depreciation on the ARO assets.
Calendar Year 2007 Changes in Estimates
3 ARO Assets 101000 (663,519)
Accumulated Depreciation 108000 (92,852)
Regulatory Assets 182376 (491,969)
ARO Liabilities 230000 (1,062,636)
To record changes in estimates on Kettle Falls ARO.
December 31! 2007 Balances
ARO Assets 101000 1,418,345
Accumulated Depreciation 108000 513,456
Regulatory Assets 182376 3,085,523
ARO Liabilities 230000 3,990,412
ID _ARO _ Compliance.xls Page 2 of 3
AVISTA UTILITIES
FAS 143. Asset Retirement Obligations
Activity by Asset for 2006 and 2007
Asset Asset Asset Reserve Reserve Reserve Depreciation Depreciation
Balance Balance Balance Balance Balance Balance Expense Expense
Description FERC Account 200512 200612 200712 200512 200612 200712 2006 2007
Offce Bldg.CO AA 399100 351,679.53 351,679.53 351,679.53 (304,936.56)(316,664.88)(328,062.07)11,728.32 11,397.19
Transformers ED AN 374000 129,707.00 129,707.00 129,707.00 (76,766.00)(79,413.08)(82,059.53)2,647.08 2,646.45
Colstrip 3 ED C3 317000 67,294.72 67,294.72 67,294.72 (32,624.99)(34,256.21 )(35,887.51)1.631.22 1,631.30
Colstrip 4 ED C4 317000 67,294.72 67,294.72 67,294.72 (32,624.99)(34,256.21 )(35.887.51 )1.631.22 1.631.30
CS2 ED CS 347000 351,681.62 351,681.62 351,681.62 (18,935.23)(25,247.00)(31.558.72)6,311.77 6,311.72
2005AROs 967,657.59 967.657.59 967,657.59 (465,887.77 (489,837.38)(513,55.34)23,949.61 23,617.96
Kette Falls ED KF 317000 1,114,206.00 1,114,206.00 1,114,206.00 (55.712.12)(74,282.24)(92,852.36)18,570.12 18,570.12
Manual Adj. (2)(663,519.00)92,852.00
Pre-2005 AROs 1,114,206.00 1,114,206.00 450.687.00 (55,712.12)(74.282.24)(0.36)18.570.12 18.570.12
TotalAROs 2,081,863.59 2,081,863.59 1,418.344.59 (521,599.89)(564,119.62)(513,455.70)42,519.73 42,188.08
Reg. Asset Reg. Asset Reg. Asset ARO Liabilty ARO Liabilty ARO Liabilty Accretion Accretion
Balance Balance Balance Balance Balance Balance Expense Expense
Description FERC Account 200512 200612 200712 200512 200612 200712 2006 2007
Office Bldg.CD AA 399100 1.604.988.00 1,717,967.44 1,834,090.45 (1,651,731.12)(1,752,982.24)(1.857,708.06)101.251.12 104,725.82
Transformers ED AN 374000 675.294.00 685.243.27 662,593.35 (728,234.38)(735,536.57)(710,240.20)7,302.19 (25,296.37)
Colstrip 3 ED C3 317000 186,508.50 201,698.00 217,718.71 (221,179.20)(234,737.48)(249,126.89)13,558.28 14,389.41
Colstrip 4 ED C4 317000 186,508.50 201,698.00 217,718.71 (221.179.20)(234,737.48)(249,126.89)13,558.28 14,389.41
CS2 ED CS 347000 87,655.00 119,737.37 153,399.43 (420,401.41 )(446.17201)(473,522.35)25.770.60 27,350.34
2005AROs 2,740,954.00 2,926,34.08 3,085,520.65 (3,242,725.31 )(3,404,165.78)(3,539,724.39)161,440.47 135.558.61
Kette Falls ED KF 317000 227,605.59 365.650.13 491,970.67 (1,286,097.99)(1,405,572.41 )(1,513,323.07)119,474.42 107,750.42
Manual Adj. (2)(491,968.73)1,062,635.73
Pre-2005 AROs 227,605.59 365,650.13 1.94 (1,286,097.99)(1,405,572.41 )(450,687.34)119,474.42 107,750.42
TotalAROs 2,968,559.59 3,291,994.21 3,085,522.59 (4,528,823.30)(4,809,738.19)(3,990,411.73)280,914.89 243,309.03
Notes:
(1) Fixed asset detail downloaded from Oracle fixed assets system.
(2) Manual adjustment on Kette Falls ARO was not recorded in the fixed assets system in 2007. A general journal was recorded to the GL in 2007.
This entry will be reversed and recorded in the fixed assets system in 2008. The adjustment to the Kettle Falls ARO was due to change in
estimate, based upon changes to closure regulations.
10 _ARO _ Compliance.xls Page 3 of 3