20060830notice_of_application_avu.pdf

Office of the Secretary
Service Date
August 30, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE SUBMISSION OF CASE NO. A VU-06-
THE POWER COST ADJUSTMENT (PCA)
STATUS REPORT OF AVISTA NOTICE OF APPLICATION
CORPORATION AND REQUEST FOR
RECOVERY OF POWER COSTS NOTICE OF
DEFERRED THROUGH JUNE 30, 2006 MODIFIED PROCEDURE
NOTICE OF
COMMENTIPROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on August 15 , 2006, A vista Corporation dba
Avista Utilities (Avista; Company) filed an Application with the Idaho Public Utilities
Commission (Commission) for an Order approving continuation of the existing 2.448% PCA
surcharge and authorizing recovery of power costs deferred through June 30, 2006. Avista
Application serves as a PCA Status Report for the 12 months ended June 30, 2006 and complies
with the Commission s direction in Avista PCA Order No. 29881 , Case No. A VU-05-
The Company in its filing identifies the power cost deferrals during the July 1 , 2005
through June 30, 2006 review period, and explains the primary factors causing the PCA
deferrals. The unrecovered deferral balance at June 30, 2005 was $5 935 324. The unrecovered
balance at June 30, 2006 is $1 517 103. While the annual amount of revenue under the existing
surcharge (approximately $4.3 million) is greater than the unrecovered surcharge balance at June
, 2006, the Company contends the unrecovered surcharge balance is expected to grow.
Richard Storro, Director of A vista Power Supply, in testimony filed with the Application
explains the reasons that actual power costs are expected to exceed authorized power costs and
what the effect is forecasted to be on the deferral balance. At July 31 , 2006, the deferral balance
had grown to $3.2 million. In all likelihood, the Company estimates that the deferral balance by
the end of August 2006 will be higher than the annual surcharge revenue level of $4.3 million.
With the existing surcharge remaining in place, the deferral balance is expected to approximate
$8.7 million at the end of the year. However, should conditions turn out to be more favorable
than expected, resulting in the deferral balance reaching zero at some point, A vista will make a
filing to either zero-out the surcharge rates, or to continue or modify the rates depending upon
actual and expected power supply conditions at the time. Should the surcharge rates not be
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
modified prior to filing the next PCA Status Report covering the July 2006 through June 2007
12-month period, the surcharge rates will be reviewed as a part ofthat filing.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. A VU-06-05. The Commission has preliminarily found that the public
interest in this matter may not require a hearing to consider the issues presented and that issues
raised by the Company s filing may be processed under Modified Procedure , by written
submission rather than by hearing. Reference Commission Rules of Procedure IDAP A
31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to Avista s Application and the use of Modified Procedure in Case No.
A VU-06-05 is Friday, September 29, 2006. Persons desiring a hearing must specifically
request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and may
enter its Order without a formal hearing. If comments or protests are filed within the deadline
the Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it. Reference IDAPA
31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case
No. A VU-06-05 should be mailed to the Commission and the Company at the addresses
reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
Kelly O. Norwood
Vice President State & Federal Regulation
A vista Corporation
1411 E. Mission Avenue
Spokane, W A 99220
E-mail: kelly.norwood~avistacorp.com
472 W. Washington Street
Boise, ID 83702-5983
David J. Meyer
Vice President . and Chief Counsel of
Regulatory and Governmental Affairs
A vista Corporation
1411 E. Mission Avenue
Spokane, W A 99220
E-mail: dmeyer~avistacorp.com
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENTIPROTEST DEADLINE
All comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to A vista at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may the set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application and prefiled testimony of
Company witnesses in Case No. A VU-06-05 may be viewed at www.puc.idaho.gov
clicking on "File Room" and "Electric Cases," or can be viewed during regular business hours at
the Idaho Public Utilities Commission, 472 W. Washington Street, Boise, Idaho and at the Idaho
offices of A vista Corporation dba A vista Utilities.
DATED at Boise, Idaho this 3 ()
-fI'day of August 2006.
.J.PJe . Jewell
Commission Secretary
bls/N:A VU-06-
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENTIPROTEST DEADLINE