20061023Comments.pdf

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 1895
RECEIVED
20GG OCT 23 PH 2: 35
nH~C FUt;l.01"\1,. " "SIOUTILlT\ES CiJ!Vii"'ilv :'
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
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 ADJUSTMENTCREDIT CASE NO. A VU-O6-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Scott Woodbury, Deputy Attorney General, and in response to the Notice of
Application, Notice of Modified Procedure and Notice of Comment /Protest Deadline issued on
September 28 , 2006, submits the following comments.
BACKGROUND
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 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. 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
STAFF COMMENTS OCTOBER 23, 2006
Settlement Agreement (Agreement) between Avista and Bonneville Power Administration
(BPA). The increase in the rate credit is due to increased benefits Avista 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 Avista s customer benefits was set at 98 aMW for the first
five-year period and 149 aMW 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 of
0.459~ and will apply to residential and small farm customers served under Schedules 1 , 12
, and 48.
The proposed increase in the rate credit will result in an overall reduction in annual
revenue of approximately $552 000. The increase in the rate credit and reduction in revenues
will not affect 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.
STAFF ANALYSIS
The Settlement Agreement (Agreement) between Avista and BPA established the
Residential and Small Farm Energy Credit. The Agreement settles the parties' rights and
obligations under the Residential Exchange Program provided for by the Northwest Regional
Power Act. Under the Settlement Agreement the benefits Avista receives from the Federal
Columbia River Power System will increase from 90 to 149 aMWs beginning November 1
2006. The benefits provided for under this Agreement are to be passed through and shared by
the eligible residential and small farm customers of A vista.
Staff has reviewed the proposed changes for Avista s Schedule 59, Residential and Farm
Energy Rate Adjustment Credit. The proposed change will allow the Company to continue
passing through benefits allocated under the Agreement to qualified customers. The proposed
change reduces the energy charges in Schedules 1 , 12 , and 32. 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 under that rate schedule.
STAFF COMMENTS OCTOBER 23, 2006
RECOMMENDATION
The proposed residential exchange credit adjustment proposed by Avista in Case No.
A VU-06-9 will increase Schedule 59 benefits to qualified residential and small farm customers
under the Residential Exchange Program. Staff recommends that the Commission approve the
Application for an effective date of November 1 , 2006.
Respectfully submitted this
C)
aay of October 2006.
Technical Staff: Mike Darrington
i :/umisc/ comments/ avueO6. 9swmd
STAFF COMMENTS OCTOBER 23 2006
CERTIFICA TE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 23 RD DAY OF OCTOBER 2006
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. A VU-06-, BY E-MAILING A COpy THEREOF AND BY MAILING A COpy
THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
DAVID J. MEYER
SR VP AND GENERAL COUNSEL
A VISTA CORPORATION
1411 E MISSION AVE, MSC-
SPOKANE W A 99220
E-mail dmeyer~avistacorp.com
KELL Y NORWOOD
VICE PRESIDENT - STATE & FED. REG.
A VISTA UTILITIES
1411 EMISSION AVE, MSC-
SPOKANE W A 99220
E-mail Kelly.norwood~avistacorp.com
SECRE'T AR Y ,
CERTIFICATE OF SERVICE