20061031final_order_no_30164.pdf

Office of the Secretary
Service Date
October 31 , 2006
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
ORDER NO. 30164
CASE NO. A VU-06-
On September 14, 2006, Avista Corporation dba Avista Utilities (Avista; Company)
filed an Application with the Idaho Public Utilities Commission (Commission) requesting
approval of a proposed modification to the Residential and Small Farm Energy Rate Adjustment
credit. Tariff Schedule 59. Avista proposes that the credit be increased from the existing 0.412~
per kilowatt hour (kWh) to 0.459~ per kWh effective November 1 , 2006. The Commission in
this Order approves the Company s Application.
As a northwest regional utility, A vista is entitled to participate in the Residential
Exchange Program (REP) that extends the benefits of the Columbia River Federal Power
Program to residential and small farm customers served by investor-owned utilities in the region.
Section 5c of the Northwest Power Act, 16 U.C. g 839(c). The REP is administered by the
Bonneville Power Administration (BP A). As reflected in the Application, the purpose of the
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 (Agreement) between Avista and Bonneville Power Administration (BPA). The
increase in the rate credit is due to increased benefits A vista will receive during the second five-
year period (2006-2011) of the 10-year agreement with BPA (2001-2011).Under the
Agreement, the base calculator for A vista s customer benefits was set at 98 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.
The proposed rate credit is a uniform cents per kWh decrease of 0.459~ and would
apply to residential and small farm customers served under Schedules 1 , 12 , and 48. For
residential and small farm area lighting customers served under Schedule 48, the proposed credit
is applied on a uniform cents per kWh basis to the energy usages of the various lights covered
ORDER NO. 30164
under that rate schedule. The calculation of the proposed rate credit is shown in Company
workpapers.
The increase in the rate credit will have no effect on Avista s net income. For
residential customers using 1 000 kilowatt hours per month the new credit will 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 rate credit. The proposed credit passes through the expected level of benefits to be received
from BPA during the period November 1 , 2006 through October 31 , 2007, adjusted for the
projected, over-refunded balance at October 31 2006.
On September 28, 2006, the Commission issued Notices of Application and Modified
Procedure in Case No. A VU-06-9. The deadline for filing written comments was October 23
2006. Comments were filed by one of the Company s customers who is retired and on a fixed
income. Comments and recommendations were also filed by Commission Staff. Staff has
reviewed the Company s Application, workpapers, accounting and calculations. Staff finds the
deferral calculations and quantification of the secondary effects of the BP A exchange credit to be
correct. Staff believes that the rate calculation is based on the reasonable estimates ofthe money
A vista will receive from BP A in the amount of energy A vista will sell to its customers who
qualify for the credit. Staff has reviewed the proposed changes for Avista s Schedule 59 and
recommends that the Commission approve the Application for an effective date of November 1
2006.
Commission Findings
The Commission has reviewed the filings of record in Case No. A VU-06-
including the comments and recommendations of Commission Staff. The Commission continues
to find it reasonable to process the Company s Application pursuant to Modified Procedure, i.
by written submission rather than by hearing. IDAP A 31.01.01.204.
Avista in this case requests authority to increase its Schedule 59 Residential and
Small Farm Energy Rate Adjustment credit from 0.412~ per kWh to 0.459~ per kWh effective
November 1 , 2006. The proposed credit will benefit qualifying residential and small farm
customers and will provide appropriate benefits from regional power as contemplated by the
1980 Pacific Northwest Electric Power Planning and Conservation Act. We are satisfied that the
Company workpapers, accounting and calculations are correct and reasonable. The Commission
ORDER NO. 30164
fmds it reasonable to approve the proposed increase in the Company s Schedule 59 Residential
and Small Farm Energy Rate Adjustment credit for an effective date of November 2006.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over A vista Corporation dba
Avista Utilities, an electric utility, pursuant to the authority granted in Title 61 , Idaho Code, and
the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED and the Commission does hereby approve an increase in Avista
Schedule 59 Residential and Small Farm Energy Rate Adjustment credit from 0.412~ per kWh to
0.459~ per kWh for an effective date of November 2006.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 30164
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3/
day of October 2006.
ATTEST:
~CJ~
D. Jewell
C mmission Secretary
bls/O:A VU-06-09 sw
ORDER NO. 30164
DER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER