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Home My WebLink About20060928notice_of_application_avu2.pdfOffice of the Secretary Service Date September 28, 2006 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF A VISTA CORPORATION FOR ELIMINATION OF THE TEMPORARY RATE ADJUSTMENT TO PASS THROUGH THE CENTRALIA GAIN CASE NO. A VU-O6- NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE YOU ARE HEREBY NOTIFIED that on September 14 2006, Avista Corporation dba Avista Utilities (Avista; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting to eliminate or zero-out the temporary rate adjustment credits (tariff Schedule 65) that have been used to pass through the customer portion of the gain on the sale ofthe 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. Energy charges for the individual rate schedules are to be increased by the following amounts: Schedule 1 Schedule 11 and 12 Schedule 21 and 22 Schedule 25 Schedule 31 and 32 091~ 0.124~ 085~ 059~ 073~ Flat rate charges for Street and Area Lighting Service (Schedules 41-49) are to be increased by 1.777%. BACKGROUND The Commission approved the sale of the 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 of the gain was deferred and was originally to be passed on to customers over an eight-year NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICES OF COMMENT/PROTEST DEADLINE period. Potlatch's Lewiston facility was initially 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. The Commission in 2004 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 Plant. Reference Order No. 29484, 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 of 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 507 000 and the customer portion of the net of tax 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. The shorter pass-through period is due primarily to having Potlatch receive the gain credit applicable to Schedule 25 beginning January , 2002. In addition, customer loads have grown since the gain credits were made effective on August l , 2000, also resulting in a shorter pass-through period. The Company proposes that any under-refunded or over-refunded balance on November 1 , 2006 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. A vista proposes that the Centralia gain temporary rate credits be eliminated effective November 1 , 2006. Elimination of the temporary rate credits will result in an overall increase in annual revenue of approximately $2.5 million. 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. YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. A VU-06-08. 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 i.e., by written NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICES OF COMMENT/PROTEST DEADLINE submission rather than by hearing. 31.01.01.201-204. Reference Commission Rules of Procedure IDAP A 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-06-08 is Thursday, October 19, 2006. 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 IDAP 31.01.01.204. YOU ARE FURTHER NOTIFIED that written comments concerning Case No. A VU-06-08 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 and Federal Regulation Avista Corporation 1411 E. Mission Avenue Spokane, W A 99220 E-mail: kellv.norwood(fYavistacorp.com 472 W. Washington Street Boise, ID 83702-5983 David J. Meyer Vice President and Chief Counsel Regulatory and Governmental Affairs Avista Corporation 1411 E. Mission Avenue Spokane, W A 99220 E-mail: dmeyer~avistacorp.com 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. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICES OF COMMENT/PROTEST DEADLINE YOU ARE FURTHER NOTIFIED that the Application in Case No. A VU-06- may be viewed at www.puc.idaho.gov by 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 Avista Utilities. DATED at Boise, Idaho this .;l... 'j/ -rI- day of September 2006. ~LU. ' . Je~ry D. Jewell \ Commission Secretary blsfN:A VU-06- NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICES OF COMMENT/PROTEST DEADLINE