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HomeMy WebLinkAbout20060914Application.pdfAvista Corp. 1411 East Mission PO Box 3727 Spokane, Washington 99220-3727 Telephone 509-489-0500 Toll Free 800-727-9170 RECEIVED 200& SEP I AM 9: 4 , September 13 , 2006 \D/:J-j.o Pl!~~\C ' UTIL\T\E~ COi~"M\SSIOI" Ms. Jean D. Jewell, SecreTary Idaho Public Utilities Commission 472 W. Washington St. Boise, ID 83720 ~~' 'V'STA. Corp. Dear Ms. Jewell:-A V "6- 4-0 Tariff LP.C. No. 28, Electric Service Temporary Rate Adjustment Schedule 65 Enclosed for filing with the Commission is an original and seven copies of the following tariff sheet: First Revision Sheet 65 Canceling Original Sheet 65 The proposed tariff sheet eliminates or zeros-out the temporary rate adjustment rate credits that have been used to pass through the customer portion of the gain on the sale of the Centralia Power Plant. The proposed effective date is November 1 , 2006. The Company expects that the customer portion of the gain on the sale of the Centralia Power Plant will be fully refunded to customers by November 1 , 2006. Elimination of the rate credit will result in an overall annual increase in Idaho electric revenue of approximately $2.5 million or 1.45% and will affect all electric customers. The elimination of the rate credit will have no effect on Avista s net income. A residential customer using 1 000 kilowatt-hours per month will see an increase of $0.91 or 1.45% in their monthly bill due to the elimination of the temporary Centralia gain rate credit. In a separate filing the Company is proposing, also effective November 1 , 2006 , to increase the rate credit applicable to residential and small farm customers to pass through increased residential exchange benefits it will receive from the Bonneville Power Administration. That filing will result in a proposed decrease of $0.47 or 0.75% per month for a residential customer using 1 000 kilowatt-hours per month. The net increase to a residential customer using 1 000 kilowatt-hours per month from the elimination of the temporary Centralia gain rate credit and the increase in the residential and small farm exchange credit amounts to $0.44 or 0.70%. Enclosed are copies of the existing tariff Schedule 65 with the old rates crossed out and with the proposed zero-rates underlined, an Application that provides information supporting the proposed tariff, a notice to customers that will be posted in the Company s offices and included as an insert in customer bills, a copy of a press release, and a set of workpapers. If you have any questions regarding this filing, please contact Ron McKenzie at (509) 495-4320. Sincerely, 70r ~,, Kelly Norwood Vice President State and Federal Regulation Enclosures I.P.C. No. First Revision Sheet 65 Canceling Original Sheet 65 AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 65 TEMPORARY RATE ADJUSTMENT -IDAHO AVAILABLE: To Customers in the State of Idaho where the Company has electric service available. This Temporary Rate 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 Temporary Rate Adjustment is designed to pass through the customer portion of the gain on the sale of the Centralia Power Plant. MONTHLY RATE: The energy charges for the individual rate schedules are to be decreased by the following amounts: Schedule 1 Schedule 11 & 12 Schedule 21 & 22 Schedule 25 Schedule 31 & 32 oooit 0001t 0001t 0001t 0001t Flat rate charges for Company-owned or Customer-owned Street Lighting and Area Lighting Service (Schedules 41-49) are to be decreased by 0.000%. SPECIAL TERMS AND CONDITIONS: 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 September 13, 2006 Effective November 1 , 2006 Issued by Avista Utilities By ~.:... Kelly Norwood - Vice President, State and Federal Regulation I.P.C. No.Original Sheet 65 AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 65 TEMPORARY RATE ADJUSTMENT - IDAHO AVAILABLE: To Customers in the State of Idaho where the Company has electric service available. This Temporary Rate 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 Temporary Rate Adjustment is designed to pass through the customer portion of the gain on the sale of the Centralia Power Plant. MONTHLY RATE: The energy charges for the individual rate schedules are to be decreased by the following amounts: Schedule 1 Schedule 11 & 12 Schedule 21 & 22 Schedule 25 Schedule 31 & 32 001 ~ 121~ 085~ 050~ 073~ ooo OOO OOO OOO OOO Flat rate charges for Company-owned or Customer-owned Street Lighting and Area Lighting Service (Schedules 41-49) are to be decreased by 777% 000% SPECIAL TERMS AND CONDITIONS: 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 July 7, 2000 Effective August 1 , 2000 Issued by Avista Utilities Thomas D. Dukich Manager, Rates & Tariff Administration RECEIVED David J. Meyer 200& SEP I (; AM 9: Vice President and Chief Counsel of . ~ DAHO PubliCRegulatory and Governmental Affalr~'TILI (:' .; HI SIOCJ - v ,Vj NI 1";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 IN THE MA TIER OF THE APPLICATION OF A VISTA CORPORATION FOR ELIMINATION OF ) THE TEMPORARY RATE ADJUSTMENT TO P ASS THROUGH THE CENTRALIA GAIN CASE NO. AVU-06- APPLICATION OF A VISTA CORPORATION I. INTRODUCTION A vista Corporation doing business as A vista Utilities (hereinafter A vista or Company), at 1411 East Mission Avenue, Spokane, Washington, respectfully requests that the Commission approve the elimination of the temporary rate adjustment rate credits that have been used to pass through the customer portion of the gain on the sale of the Centralia Power Plant. Temporary Rate Adjustment Schedule 65 is the tariff sheet that contains the rate credits currently in effect. The Company is proposing that the Schedule 65 rate credits be eliminated , or zeroed-out effective November 1 , 2006. The Company expects that the customer portion of the gain on the sale of the Centralia Power Plant will be fully refunded to customers by November 1 2006. Elimination ofthe rate credit will result in an overall annual increase in Idaho electric revenue of approximately $2. million or 1.45% and will affect all electric customers. In a separate filing the Company is proposing, also effective November 1 , 2006, to increase the rate credit applicable to residential and A VISTA'S APPLICA nON TO ELIMINATE TEMPORARY RATE ADJUSTMENT PAGEl small farm customers to pass through increased residential exchange benefits it will receive from the Bonneville Power Administration. The increase in the residential exchange rate credit amounts to a decrease of approximately 0.75%, which, for residential and small farm customers, will partially offset the increase caused by eliminating the Centralia gain credit. The Company requests that this filing 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. BACKGROUND The Commission approved the sale ofthe Company s interest in the Centralia Power Plant in Order No. 28297 dated March 7 2000 in Case No. A VU-99-6. The customer portion ofthe gain was deferred and was originally to be passed on to customers over an eight-year period. Potlatch' Lewiston facility was exempted from receiving any portion of the gain as the facility was served under a special service contract. The Centralia gain rate credits contained on Original Sheet 65 were effective August 1 , 2000. Beginning January 1 , 2002 Potlatch began receiving service under Schedule 25 - Extra Large General Service and began receiving and has continued to receive the Centralia gain credit applicable to Schedule 25 of 0.059~ per kilowatt-hour. The Commission approved the sale of the Company s interest in the Skookumchuck hydroelectric generation facility, which is operated to supply cooling water to the Centralia Power A VISTA'S APPLICATION TO ELIMINATE TEMPORARY RATE ADJUSTMENT PAGE 2 Plant, in Order No. 29484 dated April 28, 2004 in Case No. A VU-04-2. As proposed by the Company and approved by the Commission, the customer portion of the gain on the sale Skookumchuck was deferred and added to the deferred gain on the Centralia Power Plant. The customer portion of the net of tax Centralia gain amounted to approximately $7 507 000 and the customer portion ofthe net oftax Skookumchuck gain amounted to approximately $154 000. The Company expects that the total amount of the net of tax gains of approximately $7 661 000, and the benefit of a carrying cost on the unamortized gains, will have been passed on to customers at the end of October 2006. With a termination date of November 1 2006, the Centralia gain credits will have been in place for a period of six years and three months, which is shorter than the original eight- year pass-through period. The shorter pass-through period is due primarily to having Potlatch receive the gain credit applicable to Schedule 25 beginning January 1 , 2002. In addition, customer loads have grown since the gain credits were made effective on August 1 , 2000 , also resulting in a shorter pass-through period. There will be a small under-refunded or over-refunded balance when the Centralia gain credits are terminated on November 1 2006. Based on forecasted loads for September and October 2006, the result will be an over-refund of approximately $18 000 before tax, $12 000 net of tax. The Company proposes that any under-refunded or over-refunded balance be transferred to the deferred Power Cost Adjustment (PCA) deferral account as well as the remaining balance of associated deferred federal income tax being transferred to the PCA deferred tax account. III. IMPACT OF ELIMINATING TEMPORARY RATE CREDITS The Company proposes that the Centralia gain temporary rate credits be eliminated effective November 1 , 2006. The elimination of the temporary rate credits results in an overall increase in A VISTA'S APPLICATION TO ELIMINATE TEMPORARY RATE ADJUSTMENT PAGE 3 annual revenue of approximately $2.5 million. Elimination ofthe temporary rate credits will have no effect on Avista s net income. A residential customer using 1 000 kilowatt-hours per month will see an increase of $0.91 or 1.45% in their monthly bill due to the elimination of the temporary rate credit. The proposed simultaneous increase to the rate credit applicable to residential and small farm customers to pass through increased residential exchange benefits it will receive from the Bonneville Power Administration will amount to a decrease of $0.47 or 0.75% per month for a residential customer using 1 000 kilowatt-hours per month. The net increase to a residential customer using I ,000 kilowatt-hours per month from the elimination of the Centralia credit and the increase in the residential and small farm exchange credit amounts to $0.44 or 0.70%. IV. REQUEST FOR RELIEF The Company respectfully requests an order from the Commission approving the elimination or zeroing-out of the Centralia gain rate credits contained on Temporary Rate Adjustment Schedule , effective November 1 2006. Any under-refunded or over-refunded balance ofthe Centralia gain would be transferred to the PCA deferral account and PCA deferred tax account. The Company requests that this filing be processed under the Commission s Modified Procedure rules. Due to the straightforward nature of the filing, the Company does not believe that a hearing is required. Dated at Spokane, Washington this 13th day of September 2006. A VISTA CORPORATION C/ ~:f'- David f.Meyer Vice President and Chief Counsel of Regulatory and Governmental Affairs A VISTA'S APPLICATION TO ELIMINATE TEMPORARY RATE ADmSTMENT PAGE 4 VERIFICATION STATE OF WASHINGTON) County of Spokane David J. Meyer, being first 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. /-!I SIGNED AND SWORN to before me this 13th day of September 2006, by David J. Meyer. NOTARY PO IC in and for the State of Washington, residing at Spokane. ",\\\1111 """" 1\"OLSfy '11" ..('\~ " "'."" ~Q..!' , ~, . ' ft ~' ~~ " ~'o\\v I..;' ~ ......~ ~'. ~ i It ...()1ARY ~\ ~--- ,% \ pua\.\t. j;e: ~ -:"' ~/I!f! '1. v- "" 1i!. '" .... ,;" (;;:l:j =, .' ~..,~" "'""" .1;.~ ~ /" ~ w"CO" ~"" 1I11 ..." " III/I" III" 11\\\' Commission Expires:~ /;Z .2../ A VISTA'S APPLICATION TO ELIMINATE TEMPORARY RATE ADmSTMENT PAGE 5