20060914Application.pdf

Avista Corp.
1411 EaSt Mission PO Box3727
Spokane, Washington 99220-3727
Telephone [phone]
Toll Free 800-727-9170
RECEIVED
200G SEP 14 AM 9: 1+8
~'V'STA.
Corp.
September 13 , 2006 IDAHO t~~UdL.\C
UTILITIES COMMISSION
Ms. Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise, ID 83720
Avo
ch-o9
Dear Ms. Jewell:
TariffI.P.C. No. 28, Electric Service
Residential and Farm Energy Rate Adiustment Credit
Enclosed for filing with the Commission is an original and seven copies of the following tariff
sheet:
Sixth Revision Sheet 59 Canceling Fifth Revision Sheet 59
The proposed tariff sheet sets forth a proposed residential and small farm energy rate adjustment
credit of 0.459~ per kilowatt-hour to be effective November 1 , 2006. The credit results from a
residential exchange program aimed at giving electric customers a portion of benefits from federal
hydroelectric projects located in the Northwest supplied by the Bonneville Power Administration
(BP A). A vista uses the rate credit to pass on to its qualifying electric customers the residential
exchange benefits it receives from BP A.
The Company is proposing that the rate credit be increased from the existing 0.412~ per kilowatt-
hour to 0.459~ per kilowatt-hour to pass through the expected level of benefits to be received
from BP A during the period November 1 , 2006 through October 31 , 2007, adjusted for the
projected, over-refunded balance at October 31 2006.
Under the assumptions contained in the Application, the proposed rate credit results in an overall
reduction in annual revenue of approximately $552 000. The increase in the rate credit will have
no effect on Avista s net income. For a residential customer using 1 000 kilowatt-hours per
month the new credit would be $4.59 per month or $0.47 more than the existing credit of $4.
per month. With the new higher credit in place, residential customers ' bills will be about 0.75%
lower than they were before the increase in the rate credit.
Enclosed are copies of the existing tariff Schedule 59 with the old rate crossed out and with the
proposed rate 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 [phone].
Sincerely,
Kelly Norwood
Vice President State and Federal Regulation
I.P.C. No. 28
Sixth Revision Sheet 5l
Canceling
Fifth Revision Sheet 59
A VISTA CORPORATION
dba Avista Utilities
SCHEDULE 59
RESIDENTIAL AND FARM ENERGY RATE ADJUSTMENT - IDAHO
APPLICABLE:
To Residential Customers in the State of Idaho where Company has electric
service available. This rate adjustment results from an Agreement between the
Company and Bonneville Power Administration (BPA) covering Residential
Exchange Program benefits. The rate adjustment in this schedule shall be
applicable to customers served under Schedules 1 , 12, 22 , 32 and 48.
MONTHLY RATE:
The energy charges for all blocks of electric Schedules 1 , 12 , 22 and 32 and
the charges for area lights based on the energy usages of the lights on Schedule
48 are to be reduced by 0.459~ per kWh.
SPECIAL TERMS AND CONDITIONS:
The rate adjustment under this schedule is subject to revision to reflect the
true up from estimated to actual benefits and to reflect projected future benefits. In
the event the credits applied under this schedule exceed the benefits , the
Company will adjust the rate on this schedule to recover that difference.
The energy credit applied to Schedule 32 for farm irrigation and pumping
load, for each billing period, shall not exceed the amount of energy determined by
the following formula:
400 x 0.746 x days in the billing period x 24
In no instance shall any qualifying irrigation and pumping load for any month
exceed 222 000 kWh.
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above rate is subject to the provisions of 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. 28
Fifth Revision Sheet 5&
Canceling
Fourth Revision Sheet 59
A VISTA CORPORATION
dba Avista Utilities
SCHEDULE 59
RESIDENTIAL AND FARM ENERGY RATE ADJUSTMENT - IDAHO
APPLICABLE:
To Residential Customers in the State of Idaho where Company has electric
service available. This rate adjustment results from an Agreement between the
Company and Bonneville Power Administration (BPA) covering Residential
Exchange Program benefits. The rate adjustment in this schedule shall be
applicable to customers served under Schedules 1 , 12 , 22 , 32 and 48.
MONTHLY RATE:
The energy charges for all blocks of electric Schedules 1 , 12, 22 and 32 and
the charges for area lights based on the energy usages of the lights on Schedule
48 are to be reduced by 112~per kWh. 0.459
SPECIAL TERMS AND CONDITIONS:
The rate adjustment under this schedule is subject to revision to reflect the
true up from estimated to actual benefits and to reflect projected future benefits. In
the event the credits applied under this schedule exceed the benefits, the
Company will adjust the rate on this schedule to recover that difference.
The energy credit applied to Schedule 32 for farm irrigation and pumping
load , for each billing period , shall not exceed the amount of energy determined by
the following formula:
400 x 0.746 x days in the billing period x 24
In no instance shall any qualifying irrigation and pumping load for any month
exceed 222 000 kWh.
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above rate is subject to the provisions of Tax Adjustment Schedule 58.
Issued September 30 2004 Effective Novem ber 1 , 2004
Issued by Avista Utilities
Kelly O. Norwood - Vice President, State and Federal Regulation
David J. Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
A vista Corporation
1411 E. Mission Avenue
P. O. Box 3727
Spokane, Washington 99220
Phone: [phone], Fax: [phone]
RECEIVED
2006 SEP I 4 AM 10: 0 I
IQN'-!O PUBLIC
UTILlllt::3 COf,,ii\iUSSION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
A VISTA CORPORATION FOR A MODIFICATION)
TO THE RESIDENTIAL AND SMALL FARM
ENERGY RATE ADJUSTMENT CREDIT
CASE NO. A VU-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 a modification to the residential and farm energy rate adjustment credit. A vista proposes
that the credit be modified from 0.412~ per kilowatt-hour to 0.459~ per kilowatt-hour effective
November 1 2006. The purpose ofthe energy rate adjustment credit is to pass through to qualifying
electric residential and small farm customers the estimated benefits to be derived under the
Residential Exchange Settlement Agreement between A vista and the Bonneville Power
Administration (BP A). The proposed rate credit of 0.459~ per kilowatt-hour is designed to pass
through the expected level of benefits to be received from BP A during the period November 1 2006
through October 31 , 2007, adjusted for the projected, over-refunded balance at October 31 , 2006.
A VISTA'S APPLICA nON TO MODIFY RESIDENTIAL EXCHANGE CREDIT RATE PAGEl
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: [phone]
Fax: [phone]
David J. Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
A vista Corporation
1411 E. Mission Avenue
Spokane, Washington 99220
Phone: [phone]
Fax: [phone]
II. BP A RESIDENTIAL EXCHANGE PROGRAM BENEFITS
The Northwest Regional Power Act establishes a Residential Exchange Program to provide
benefits to residential and small farm consumers of Pacific Northwest utilities. A Settlement
Agreement between Avista and BPA settled the Parties' rights and obligations for the Residential
Exchange Program for the ten-year term of the Agreement, October 1 2001 through September 30
2011. A vista uses the residential and farm energy rate adjustment credit to pass on to its quali fying
electric customers the residential exchange benefits it receives from BP A. The increase in the rate
credit is due to increased benefits Avista will receive during the second five-year period (2006-2011)
of the ten-year agreement with BPA (2001-2011). Under the agreement, the base calculator for
Avista s customer benefits was set at 90 MW for the first five-year period and 149 MW for the
second five-year period, which results in higher benefits during the second five-year period.
III. PROPOSED ENERGY RATE ADJUSTMENT CREDIT
The proposed rate credit is set forth on proposed Sixth Revision Sheet 59 - Residential and
Farm Energy Rate Adjustment. The Company proposes an effective date of November 1 2006. The
proposed rate credit is a uniform cents per kilowatt-hour decrease of 0.459~ and would apply to
AVISTA'S APPLICATION TO MODIFY RESIDENTIAL EXCHANGE CREDIT RATE PAGE 2
residential and small farm customers served under Schedules I , 12 , 22, 32 and 48. For residential
and small farm area lighting customers served under Schedule 48, the proposed credit is applied on a
uniform cents per kilowatt-hour basis to the energy usages of the various lights covered under that
rate schedule. The calculation of the proposed rate credit is shown in the workpapers that
accompany this filing. The proposed rate credit of 0.459~ per kilowatt-hour is designed to pass
through the expected level of benefits to be received from BP A during the period November 1 2006
through October 31 , 2007, adjusted for the projected, over-refunded balance at October 31 , 2006.
The proposed increase in the rate credit would result in an overall reduction in annual
revenue of approximately $552 000. The increase in the rate credit will have no effect on A vista
net income. For a residential customer using 1 000 kilowatt-hours per month the new credit would
be $4.59 per month or $0.47 more than the existing credit of$4.12 per month. With the new higher
credit in place, residential customers ' bills will be about 0.75% lower than they were before the
increase in the rate credit.
IV. REQUEST FOR RELIEF
The Company respectfully requests an order from the Commission approving the proposed
residential exchange rate credit of 0.459~ per kilowatt-hour effective November 1 , 2006. 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.
A VISTA'S APPLICATION TO MODIFY RESIDENTIAL EXCHANGE CREDIT RATE PAGE 3
Dated at Spokane, Washington this 13 th day of September 2006.
A VISTA CORPORATION~/IJ. Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
A VISTA'S APPLICATION TO MODIFY RESIDENTIAL EXCHANGE CREDIT RATE PAGE 4
, 13
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.
V-/ !
,,-
SIGNED AND SWORN to before me this 13th day of September 2006, by David J. Meyer.
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NOTARY PU C in and for the State of
Washington, residing at Spokane.
~c1-~ Commission Expires:
A VISTA'S APPLICATION TO MODIFY RESIDENTIAL EXCHANGE CREDIT RATE PAGE 5