20120629Compliance Filing.pdf

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June 28, 2012 UTILI1ES COM hil l SSON
Ms. Jean D. Jewell
Commission Secretary
Idaho Public Utilities Commission
P0 Box 83720
Boise, ID 83720-0074
Re: Annual Compliance Filing ofAsset 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 annually, and as part of
any rate case filing, all journal entries made under the requirements of SFAS 143.
Enclosed, please find three copies of the 2011 SFAS 143 annual compliance filing.
These ARO transactions are removed from the monthly Results of Operations and are therefore,
not included in the Company's earnings or in any rate request in the Company's general rates
cases.
The Company requests that the Commission eliminate the annual filing requirement that is
required by Order No. 29962. Avista has filed the journal entries in compliance filings for the
past five years. The journal entries have been routine in nature, including recording accretion of
the ARO liabilities and depreciation of the ARO assets. Because of this, and the fact that all
ARO transactions are removed from Idaho results of operation, the Company is requesting that
filing obligations under the Commission's prior order be removed. The Company will maintain
the same records regarding the ARO transactions and would have them available to Staff and any
other party upon request.
Please direct any questions regarding this filing to Liz Andrews at [phone].
Sincerely,
"i
Kelly Norwood
Vice President, State and Federal Regulation
Enclosure
LA
Avista Utilities
FAS 143 Accounting - Asset Retirement Obligations
Year Ended December 31, 2011
FERC

Account Dr. Cr.
December 31. 2010 Balances
ARO Assets 101000 1,437,593
Accumulated Depreciation 108000 615,216
Regulatory Assets 182376 3,065,032
ARO Liabilities 230000 3,887,409
Recorded Journal Entries
I Calendar Year 2011 Accretion, Depreciation and Removal Costs Entries
1 Regulatory Assets 182376 (374,591)
ARO Liabilities 230000 (374,591)
To record accretion expense, net of removal costs, on AROs.
2 Regulatory Assets 182376 27,049
Accumulated Depreciation 108000 27,049
To record depreciation on the ARO assets.
Calendar Year 2011 Other Changes
3 ARO Assets 101000 96
Accumulated Depreciation 108000
Regulatory Assets 182376 -
ARO Liabilities 230000
O&M Loadings various 96
To record 2011 impact due to HVAC remodel.
December 31, 2011 Balances
ARO Assets 101000 1,437,689
Accumulated Depreciation 108000 642,265
Regulatory Assets 182376 2,717,489
ARO Liabilities 230000 3,512,817
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