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RECEIVED
2007 May 23 AM 10:08
IDAHO PUBLIC
UTILITIES COMMISSION
Corp.
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il'Q';p:ti.OJi,fUtili ties' Cbmmi ssi on
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TariffLP .C. No, 28, El(;ctric Service
Residential and Small Farm Energy RateAdjustment Credit
Dear Ms. Jewel1:
Attached for filing with the Commission is one copy of thefoUowing tariff sheet:
Seventh Revision Slleet 59, CancelingSixth Revision Sheet 59
Therevisedtatiffsheet eliminates the residential and SiTIaUfann energy rate adjustment
credit and establishes a proposed charge ofO.! 44~ perkilowatt~hQur !.ate to rt;Jcover the
over~refunded exchange credit balance over a tWelve-month period. The proposed tariff
would beeffeOtive J urte22 2007, underthethirty~days statutory notice requirement.
However, the Cotnpany reque~tstha.t theproP9sed tatiffbe approved on less than
statutory noticeandthatthcl11atter be scheduled as soon as possible. The Company also
requests thatthefiIing be prQcessed l.U1der fv!od:ifie(lProcequre.
The Bonneville Fower Ad111inistration (BFA) has.suspendeclResidentIal Exchange
Progran:1 (REPJp~ynIents asaresult of the recent rulings train the 9th u.S. Circuit Court
of Appeals. Avista hashcenpassmg'through its share ofREP benefits it has been
receivingtromBPAtoAvism'squWifyingelectrib ctIstomers byrneans of the rate credit
on Sheet 59. Since BPA has te11i1inated REP payments, it is necessary for Avista to
eliminate the Sheet 59 rate credit. Avista and the other affected shareholder-owned
electric titilities Will pursue all available options to restore theREP benefit payments.
Avista uses aba.Iancingaccount to account for the teceiptofREPbenefits IT om BPA and
the amounts passed tDtbtighto customers. At the end of April 2007, there is an over'-
funded 1JalW1ce~nd ;1s$ociated intercsta111otihtiIig tOaPproximately$913 ,000 for Idaho
opetations.'fheover,.te:fun'dedbalance willcontinlle togrQwsince BPAhasstopped
benefit paytnellt$, andtheexisting Sheet 59 rate credit of 0.523 ~petkilowatt-hbur wil1
continue until the rateise1i:minated. 'The longer the existing rate credit remains in place
the largertheover'-refllnded bahmcebecomes. Assuming a mid-Juueeffectivedatc; the
over-refurldedbalaiIce is ex.pectedtb be approximately .$1. 7 million. Approval ofllie
proposed tariffonJessthan statutory notice will help minimize theamoullt ofthe over-
refurlded balance.
Avistais.proposing acl1arge ofQJ44~p~rkilowatt-hour rate to recover the over-refunded
~xchange credit balanceoveratwe1ve-moIithperiod. Having only onorato cllallge that
~lU:nillates theexistiIigcredit and establishes the rate charge to recover the o.ver~refunded
balance is intl1epublicmterest. Thetemis and conditions of Schedule 59 provide that:
In the event the credits applied under this schedule exceegthe benefits, the Company
will adjusttherateon thisschedule to " recover that difference.
VYhen the existing rate creditwws established it Was projected that the balancing account
would reach zero at the end of October 2007; During winter months theREP benefit
paymentswerelessth~Ul amounts refunded to customers l1nd~rtbe existing rate credit;
resulting manover-re:fu.1ldbalance in the balancing aCcount. Durillgsummer months the
REPbenefit payments would have been greater than amounts refunded to customers.
Termination of the :RE:P pi?nefits from 13PA before the end of thecohtract year has caused
theover:-TepmdsitUalion, A.Jtached areworkpapersthat show the calculation of the
proposed chargeofO.144~ pt;Jrkilowatt.ihollfto recover theover-refundeddiflerence over
a twelve'-l11onth period.AYista will monitor therecovetyoftheover.;,refunded balance of
REP be,nefits andfi1e fortertrtfuationofthe charge iI1a futlJrefilihg. Or, ifcircu1llstances
changeandAvi~tapeginstoreceive REP benefits, tile rate would be modified.
The existing rate credit is a unifolID cen'ts per kilowatt-hQW decrease of 0.459~ and
appliesto1"~sidential andsrp,a1l farm customerssetved under Schedules!, 12,, 3Z,and
48. For litesidential customerusmg 1,OOQkilowatt,;.hol1rsP~lIlonth, elimulating the
credit andi11'1plementing the charge ofQ.144~ per kilowatt...holit would result in an
increase of$6,03 petmbIith.Residential customers' bills wi1l be about 9.52% higher
than they were withtheex:istillgrat~c,redit. T~leactual iIicrease:will vary based on
customer usage.
The proposed rate changewill have no effect all Avista' snet income. The proposed rate
change will resultman annllalincrea~e in IdaJ1oelectricrevenueofapproximately$7.
million.
In a,dditio.n to theprpposed tariffalldwOi-kpapers, also attacliedarethefollowing items:
1) an affidavit, 2) a tariff sheet shoWing changes by using strikeouts and llnderIining,3) a
copy of the letter frpm.I3PA notifying Avista that ithas suspended payments ofREP
benefits. and4)apress release;Pleasedditectanyquestionstegatdil1g this filing to Ron
McKenzie at(509) 495'-4320.
Sincerely,
7d; ~... ..-J
Kelly Norwood
Vice President State and Federal Regulation
Attachments
C. No. 28
Seventh Revision 811eet59,
Canceling
SiXth Revisicin $heet 69
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 59
RESIQENTIALAND FARM ENERGVRATEADJUSTMENT - IDAHO
APPLICABLE:
TaResidential Customers in the state of Idaho whefeGompany has electric
service avaIlable. This rate f,idjustrnentrestlltsfrom an Agreemenlbetween the
Company and Bonneville Power Administration (BPA) covering Residential
Exchange Program benefits. The rate adjtJstment in this schedule shall be
applicf,ible to custorner$serve.d underSchedules 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 forareaHghtsbasedohthe energy usages of the lights on'Schedule
48 aretb be im::reasedby 0.144WperkWh.
SPECIAL TERMS AND CONDITIONS:
The rate adjustment under this schedule is subject 10 revision to reflect the
true up from estimated to actual benefitsandto reflectprdjected future benefits. In
the eventthe credits applied underthisscheduleexceecIthe benefits, the
Company willadjustthe rate on this schedule to recover that difference.
The energy creditapplied to Schedule 32 forfarm Irrigation and pumping
load foreachbUling period, shall not exceed the amoun.t of energy deterrnined'
thefoHowing formula:
4QQXO.746 X days in. the billing period x 24
Inno instance'shallanyqualifying irrigf,itionand pumping load for any month
exceed 222,000 kWh,
Service LJnderthisschedUI~J$subjectto the Rules and Regulations
contained ihthistariff.
The above ratei$ subject tatha provisions of Tax Adjustment Schedule 58.
I$su~d Ma,yZ2 2007 Effective June 22, 2007
Issued by Avista Utilities
KellY Norwood~ Vice President, State and Federal Regulation
TariffLP.C, N(lo 28, Electric8ervice
Residential' andSmal1 Farrn Energy RateAdjustment Credit
Proposed Rate Change Filed May 22" 2007
WdRI(P APERS
AvistaGorporation
Propos~d R~sjdential Exchange Surcharge Rale
Slateef Idaho
Assumed Effective June 15. 2007
OVer-refunded balance at 4130/07 '-Actual
Interest balance at 4130/07 -Actual
Total recoverablebah:mceat4/30/07
Forecast of amortization related to existing credit projected to expire 6/15/07
May-
Jun-
Jul-
Projected recoverablebal;3.ncea~~uming a 6/15/07 rate change
Estimated interest during 12-rnohthrecoveryperidd (15%. applied to 50% of balance)
SUbtotal
Conversion factor
ReVenue reqwirement
Projected kWh Jul-OlthruJurl'-'O8
surcharge rate
Bill for 1 OOOkWhatexisting rates (incluc!ingalladders)
lil6rease ($0.00144+$0.00459)"1000
Percent increase
$878 866
33,889
$912,755
378,266
320 389
58;981
670,391
41,760
$1,712 151
994819
$ 1 721,068
195,779,000
00144
$63.
$6.
52%
Workpapers
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Proration Percentag~s ~June15 2007 Rate Change
JunE!&J~ 2007
Read
Day 2007
20 May-
21 May-
1 May~
Jun~b1
3 Jun-
4 Jun~O5:5: Jun,.Q6
J!Jo..o7
7 Jun-
8 Jun-
9 Jun~
10 Jun~
11 Jun-
12 Jun-
13 Jun-14 Jun~19
15 Jul1-
16 Jun-17 JlJn~22
18 Jul1.
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Total
Percent
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Jun-
J!ln~
Jul~b2
Jul-
JlJl~
Jul-
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JUI,,
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Jul-
JuH3
Jul~la
Jul47
Jul"
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Jul-
JUI-2:3
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Jul;.25
Juh26
T Dial
Percent
29 16 29 15 29 14 31 13 29 10 30 32 30 30 2: 30 32 32 30 30 30 32 32 30 30 639 104 535
100.00% 16,28% 83.72%
Day$
SVC Before
Days Jun-32 30
30 32 32 30 30 30 32 32 30 30 30 32 32 30 30 30 32 32: 648 594
100.00% 91.67%
011&
After
Jun-
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5
AFFIDAVIT
STATE OF WASHINGTON )
:ss
County of Spokane
, David!, Meyer, being first duly sworn on oath, deposes and says: That h~ is the
Vice President and Chi ef Co'U11selofRegutatory,and Governnie.ntal Affairs of A vista
Corporation andtMkesthesestatements fo.rand on hehalfof said corporatiOll,being
thereto duly authorized;
ThilfhehaSread the fotegbi:ngillil1g,knowsthe col1tentsthereof, and beli eves the
game to 'be true. ThattlleBOnheville Power Adl11il1istratioI1:has suspended Residential
ExchangeProgr!Uupi:tyments, thereby creating an emergenpysitua.tionand the need for
the foregoing filing.
SIGNED AND SWORNtb before me this 22i1d day of May 2007, by David J. Meyer.
\\\~nunfIJ!lIll
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~.'""",,\.'!.~
WA$p
\\\,
'J1!fJlllU IInt\\)
NOTARY 'UC in-andfor the State of
Washington, residing at Spokane.
Commi~sion Expires: .;lj~ ::Lj/
P~U.C. No.
Sixth Revision Sheet 59
Cancaling
Fifth Revision She(:1t59
AVlSTACORPORATION
dba Avista Utilities
SCHEDULE 59
RES I DENTIAL AND FARMENERGYRATEADJUSTMENT .. IDAHO
APPLICABLE:
To Residential Customers inthe state of Idaho where Company has electric
servIce available. This rate CiJdJ!.Istment resqltsfrorn an Agreement betweenthe
Company and Bonneville Power Administration rBP A) covering Residential
ExchangeProgrambenefil.s. The tate adjustment in this schedule shall be
applicable tocYstortlers served under Schedules 1,, 22, 32 and 48.
MONTHLY RATE:
The energy charges for all blocksofeJectricSchedules 1, 12, 22 and 32 and
the charges for area lights b€jsed on the energyosag,es afthe lights on Schedule
48 are to be rddU(jdd l)y 15g~per,kWh.
increased OA44
SPECIAL TERMS AND CONDITIONS:
The rate adjustment under this schedule is subject to revision to reflect the
true upfromeslimated to actual benefits and to reflettprojected future benefits. In
theeyentthe credits applied under this schedule exceed the benefits, the
Compahywilladjustthe rate on this schedule to recover that difference.
The ,energy creditappHed to Schedule 32 for farm irrigation and pumping
load, for each blUing period, shall nqteXGeedtheamount otenergy determined by
the following formula:
400xO.74q X days in the billing period x 24
Inno Instance,shaUanyquaUfyingirdgati()nandpumping load for anymonth
exceed 222 000 kWh.
Service underlhisschedule issubj~ct to the Rules ahd Regulations
contained in this tariff.
The above rate is sllbjectto the provisiohsofTaxAdjustment Schedule 58.
Issued SeJ)t~mber13,2006 Effective November 1, 2006
Issu~d by AvistaUtilities
Kelly Nor'wood-'VicePresidant, State and Federal RegUlation
Departmentof Energy
BonneYille P()w~r AdministratiOn
Sox3Q21
Portland. 0 rego n9720 8-3621
OWERSERVICES
May 21, 2007
In reply refer to: P8~
Mr. Kelly Norwood, Vii;;cPre$ident
StateandF~deral RegUla-na:il
AVista
201 W. RiverDrive
Spokane WA 99201
Dear Mr. Norwood:
As we hayerecently infopned)'(jir otyour repteSentatives; thela\vpn,yidesthat a Federal
Certifying Qfficeris personallyresponsibleartdaycQuntal31t:dor certityingthe legalityof a
proposed payment,artdispersonallyaccountable fo!l11a1clngapayruent prohibited by law. See
31US.C,*3528;Prindiple$of:!?eqeral ApPJ.'oprianons Second Edition, Vol'U111eII.9c88 - 9-
145. In the Ni11th'CircUit Court of Appeal's (Court)recentM:aY3, 2.flQ7,PGE andG,olcien
NorthwestAlumi71tl11J. d:ecisions, the CQlU1;cdJiclrided that certain Boooeville Power
Administrano:il(BPA) actions.inenteringrcsidentialexCllange,se1:tleI11entsin 2000 with Y()UT
company an(l othcrInvestor OWlledUtiIities were notinaccordaIlce with law)' This quite
undeTs1:andablYraisedsubstantialquestionwhetl1e:rthe BPACert;iiYing Officer could certify
additional paymentsunderthesettlernentagteenienti;,; indeed:.theCourthas asked fotbriefing as
to theeftect ofitsi11lii1gsonpendfug challenges to other outstanding settlement agreements.
We have e6ncluded thatthisuncertmntycreated'bythc'Court's decisions means that we must at
this up:le slJspeJAdpaymeJits, You haveackrioWledgedthatBPA is,thus currentlypreventedhy
reasOns beyond its control fromcontinWng p,ayPlent pending final decisions by the Ninth Circuit
in the outstanding Ninth Circuitcliallenges, and thatin1ightof this uncertainty created byti1c
Court's, d~is.ionsyollagree l1ottO assert BPA is in breach of contract asa result oithe
suspension ~ Accordingly, BP A is irnmed late! ysuspen(liugpa:ymen ts(includingcons ervationan d
renewable discounts and ZIIlY other credits)l1nder the challenged BPAagrcements pending fIDal
decisions'hytheNinth Circuitin the Dl1tstandingNinth Circuit challenges, Such temporary
suspension and acknowledgeruentshall notconstltUte an actruissionor waiverof,and is subject
, any statutory, contractual and other rightsandobligatio'llS oithe parties that111ay exist, so the
s~pe:ilsion iswithoutpreJudicetotheissueofWhether' thcs'Uspended amounts must at some later
point be paid (ororedited).BPA'ssuspension in no way affects thecontl11l1cd existence of the
settlemti\nt agreements.
We verymuchtegret thatitisnecessary fot us to suspend payments at this time, since we
understandthatthiswiUrapidly result in large and, for some, severe rate consequences for your
residential and snHiUfamlcustombrs. We have spent collsiderableeffort seekingto findnwans
to cpntinue tl1epayn:1entSt9aUPWn1~1"~ time for the parties toTmd a way to address the issues
raisedbytl1eCourt, butwithQut$UcCe$s;
BPAcurrently anticipatesthat$Uchs1.1SpensionwiUcontinllea:tleastuntil any petitions for
fGhearing on the Court's decisions are finally r~solved, We believe the Court's decisions 011the
settlements are in, error, and weareex.ploring all potential viable avenlles for re)iearing,incl tiding
by the full O:rurtjfpQssi1?l~; BPAagrees thatthisslispeIisiohis oIilyan interimmcas!ITe and
does hofreptesellt a nnal action by the Administrator, and it will not assertothEJfwise. BPA
agrees'it WHI inform you ofits fuialdecisionregardingthe suspended and any remaining
payments (and, credits) withinareasol1able,periodofti11le#ier the,decislbl1sby the NUlth Circuit
are final in. the outstanding-Ninth Circuitchallenges.
In the Interim we will be consulting with key stakeholders informally as to any ideas for finding
a way toresolve these iSSllCS consistentwiththe Court's decision. Thisis, rnademore
challenging by the fact that the Courthasnotruledyet on the signific:ant2bOJ and 2004
Gimendme~tstothecoIltra.cts that tP,eCo:w1 ciidrule on. We wantto resolve.this isSileas quickly
as possible, but also recogniZe thatanywork now may be undone by further rulings trom theCourt,
This is a l1lostvexing ptoblem,and we lookfOf',vardtowotking with you and others in the,
PaciflcNorthwestregioIltpflnd:aresolution that best serves theintercist of all Northwest
citizens.
Sincetely~
Mark O.Gendron
Vice President, Requirements Marketing
cc:
Larry LaBolle
AlI"""'IIfir
' ""-'' "' .
"'-'11'.."'."North "estern:
Enersrv,.eN
PUGET SQUNDENERGY
me Enl7iJ'$JJI To Dc GrecJ Thing;;.
~PGE.I.
~ /
Portland General Elec:tric PACIFIC POWER
A: DiVISION!)" "ACiFICD~P
Aft 1oACO!!P ccmPi"'V
Fdr.lmmediate Release:
May 21,2007
Media Contacts:
Avista~Hllgh Jmhof 509-495-4 264
IdahO).3ower: Dennis Lopez, 208-388-2464
NotlliWest~rn Energy:Clalldia Rapkoch 866-
622-8081
Pacific Power: Jan Mitchell, 503-813-7281
Portland (j~Ileral Electric: steve Corson, 503-
464-8444
Pugel Sound Energy: :M81ihaMQnfried, 888-831-
7250
Rocky Mountain Power~DavidEskelsen, 800-
775-7950
Utmti~$ vow to seek restotct(iOfl of custOl11ers'federalpowerbenefits
CoiJrt'sruliiJgs (;CtusesuspetJs,'ol1ofbilfctedits for majority of Northwest consC,fmers
PORTLAND;, Ore. The PacifitNorthwest'ssevel1shar~holder-Qwnedelectric utilities,
together serving 60 percent of the regioIl's population, said theywi1l fightto restore their
customers' federatpowerbenefitsafterbeingnotified earIier'today by thcBOllncviUe Power
Administration (BPAl that a recent federalcourtrul~i1gis forCIng suspension ofthosebcnefits.
BFA told the utilitiestms, moTIlingitisimmedialelysuspcndingrnqnthly paYIncnts
them ofapproximately,$25 million, or about $3()O111il1i(Hl annually. Theutiliti~& ~ Portlan,d
General Electrlc,.Pacific Po\ver, RQQky MQl1!lfail1Power, AviSta, Puget SoUnd Energy, Idaho
Power, and NorthWestern, Energy - have for nearly 30 years directly passed' through 13 P A's
federal power benefits as credits on the electricity bills ofthcirresidential and sm~-faml
customers. The paymel1ts,roade ,under agreements between 13PAandthe' seven utilities,
representthe3.3511lillion i.ltilityeustomers' share of power-cost benefits from the Northwest'
federal, h ydropow etsystem.
We very muchre-g;ret thatlt is'nccessa,ryrqTustosu::;pendpayrnentsatthis time, since
weundt;Jrstand that this will rapidly tesultinlarge and; forBorne, severerate consequences for
your re~idential and small far1llcustorn~rs;" said MarkO. Gendron BP Avi co president of
RequiremcntsMarketing, ina letter to thc tltilities.
WehelievetheCourt's decisiohSon the settlements are in error," Gendron said, "a11d we
are exploring al1potentral viableavenucs forteheanng, including by the fulL Court if possible.
A three-judgepane1 ofthe 9th U.8. Circuit COllrt of Appeals on May 3 ruled that certain
actions 13PA tooki):1:enteringmtosettlement agreel11cnts With the affected utilities are
inconsistentwith theNQrthwest .Power Act., That law reqIJires BP A to give household and small-
farm 9l1cStomersserved by,private utilities an equitable sharepf the Northwest'sfec,ieral power
benefits:
Noneof'theBPA'screditpaymentsgpcs to thc1ltilitie~" sllareholders; 1 00 percent of the
benefits, under the la\,arepassedthrOt~ghto the utilities' customers.
Theaffccted utilities today'defendedthe:ir agreements with BPA , saying the court' s
rulings are fla\Vcd.Eventiridetthcsettlemeritagreillncl1tsllow ill qtieStiOll1 customerS ofthe
affected utilities, Who makeup 6() PercenJ ortM Nortbwest's pgpl1Iation, receiVe less than 15
percent oftheregionwideconsurner savillgsprovidedhythe Northwest'~ 10W'-costfederal
hydropower.
The 9th Circuit Court's decisiollapd the BPA'sstlbsequent s~pension ofits credit
payments mean a majority of the Northwest's population, for the time heingat least, will receive
none, ofthepower~cost henefit$,theregion derives from its low-cost fedel,'aIhydropowersystem.
Thbsehenefits currelltly are, estimated at more tha:ll $2 billion :aI111ually.
Because thepaYlnentsthat fundtheBP A credit ar~no longer being made"the seven:
utilities each will soolrfik With statetltilitycoII11Tlissions req\lestmgthat theBP A credit be
s\;lspendedolltheif custOl11ers' bills. (The effect of the credit's 8uspensiQI't on ~(1chutility
Qilstomers is listedbelow.J
The utilities said they Willpufsue all available options necessary-- judicial
administrative, orlegislative ~io reStore their customers' federal power benefits. Their initial
mOve, they said, will he to seek a 9th c;ircuit CoUItofAppea1s rehearing of the May 3 decisions,
Disc\1ssionsaIso are under way with members oftheNorthwC5t'scPngressional delegati on, to
informtllem ofthecredits,U,spellSi()p'S1mpacts on CUstomers and to begin exploring potential
legislative action to address the sudden change.
##If
Eff~~tofthecredit's~uspensioriQritlictypi~~re-sidentHdcusto:m:er'Smonthly bill (based on
ave rageresilleJttialelecttiCity ttsagl!, ilt jJiii'entheses):
Avista Utilities(I&~o) """""'" 9.%1$6.03 (~l OOOkwh/J:no.
Avista Utilities (W~ITgton) ......11.$ %I$6.69(($1,OOOkwhIlIl0.
. IdaJ1oPower(Idah6)....,.....,....... 9.3%/$535 ((fg li050kwhl.mo.
. Iclahopower(Qregon)..
..............
6.2 %/$6.54 (~1,23Qkwh/mo.
NorthWestemJ3hCrgy ....
..,....,.,.
1.5%/$1.13 (~750kwh/1I10,
Pacific Power (Otegol.1),..', "'
" .
.. 13.1 %/ $9;62 ((fY 1,OQQkwhlmo.
PacificPower(Wa$b1ngton).. ...
. ...
16.8%/$11 A9(~ 300 kwh mo.
Portland Gemer~,J~lectJi~ . ... ...
....
13;9% /$10.66 (~900 kwh/mo.
. Pug~t$()l1n9.Bnergy...".....
........
13.2%/ $10.28 (~l OOOkwhlmo.
Rocky Mo'\.tntalriPower(Idaho) ,... 25.3 %1 $16.76((fY l;OOOkWlllmo.
Utility le~ders' quotes onsqsp~sion aBbe $~ttlel1lentpaY.Dlents:
. "
We are very disappointed inthe decision by the court and will work to restore our
customer sptevious shareofhenefits that were heingpassed through:fi:o.m.BP AWe
beheve that r~sid~nW~I' arig;smaU fafi1i~4stbm.ers' served by the Northwest's hrvestor Owned
Utilities are entitled to a fairshareofthehenefits of the Federal QolU1I1bia Power System
and hope thatwe willbeahletowotkwith BI?A andothercl1$tc,m.ergroups to acmevews"
--"LaMont Kecn,president,andcliiefexecutive officer" Idab()P()wer Co.mpany
. j'
Ourcustomershavearighttoafairshareoftlle benefit~o f theN ortlnvest hydro system.
Thecourf'saction hasta'ken thfl,taway. We'ia,UJ1eed toqOmeto the tablein11nediately
preservethevalueofthesyste1I1"fof'all"NorthwestresiCfc:J:t1ts.
" '
J'eggy Fowler,CF.Q ~nd
president P()rtl~nd ~JXeral ElectricContpa~y
. "
It's asimplequestioh of equity for allNorthweslelectr1cc911sumers. Until this can be
resolved, weareilltheobviou~lyt1awed sitt1a.tion iriQl'egon . for example, ofhaVinghenetlts
:fi:om the federal power system flowing entirely tojpstthe 25 pervent of electric consumers
who happen to be served bymunicipaI811d consUJner-owned entities in the state. n - Pat
Reitcn,pre~ident"PaCific ,rOWer
. "
It is c1earlyagainst the intent or federal law to nave OW cqgtop1ersco:rripletely shut out
any benefits from the f~dera1 power system, wl1enthose bclletltswereintende.d to be shared
thtoughoutthe.Northwest.We Will bea.ggressively working witbothep; in the region to
resolve this and restore benefitstoot1I' Idaho c~t9m.ersasquicklyas possible;" - Rich
Walje pre'$idCint,R(lc.ky Mountain Po,ver
. "
This, deci~ion ispate1'ltly1j.n.fairto ourcust()mers. Thefedeta1hydrosystem belongs to every
citizehin ourregjon andGongress decreed that everyone wo11ldshareinits benefits.
will figbtto haveQurcustomers' benefitstestored, whether it's thro-ugha challengeofthe
comf!sdeciSiotl." workingcloseJy with the Bonnevi11ePowerAdministrati on, or ultimately,
by aleglslativechange in the Northwest Power Act. !I Sc()ttMQrds, president a~d chiet'
aperating,qfJker" Avista CQ:rp.
Lawyers can argu.e over the Northwest Power Act; sfinerp:oints, but at the end of the day,
thisisasim,plequ~ti91l0fmitness. AllNorthwest citizens share owl'l,ership ,()fqur federal
hydr()syst~I11. It ma1;es no more sensetOdenya majority of them a fair share of the region
federalpowerhenents than it would to den)' tllem the benefits of our publicToadsor
school$." -$t~ve R,eyJiolds,cbairrilll1l, pr,eside:l11aridCEO, Puget SaundEnergy
About.AvistaCol'tI.
Avista",Corp; is ar)energy'cpmpanYioVQ!ve.d.,!1ithe,prod!Jctioh transrni$SionaI')d distributibn of energy as weUotherei1ergy~ businesses, AvistaQtilities is a ~ompany operating division that provides seNiee to 346;000electntahd3 hattJra1 gas customerS.inthr'eewesleth states. Avisla'sn'6n:'regulatedsubsidiaries inClude
Ai:NantageIQan'dAVistaEriergy. Avista Gorp.sstockisttacted underthetickersymbol ~AVA.' ForITibre information
about Avr$ta.pleC,i$~ visitWWN.a.VIstaCOi"P.corn MistC,iCotp.anq JtlE? Avista Corp:lpgp, c,i~ traqemarksofAvist~
Corporation. AJI ottlE?rtrademar~ri"lerrtione,dif1 thisdocume;ntaf(~tlw pr()pertyoftheirtespectiveowners. This news
release, co ntai hsforwa rd~16okingsta'temE!n ts regarding the 'co 111 pal1 y's current expectati otis; Forward-looking
state;ments'ar~all. stat$,I11e;ntso#1er th;'tn historlcp,r.,raCfs. ,$uchstaternEiljtsspe;a\(pl1lyasof tM, gate or the' news
rele?sEialJdar~sUlJjeptt!Javarietyorrisksand uncertain~es; rnaIJyqf whiChi;lre peYPnd' thecQrnpanY' s control
Which,' coo Idcauseapfi.lalt$sYJtstpc!ffferrnateriallyfromtheeXpectations. 'These risks and uncertainties, include, in
additiontotliose discl.lssed hereiri, all 6fthefactQrs 'gisQt)$sed iri tI1.c()mp(jnysAonual Report on FohTt j,()"K fqrthe
year,E!nd,edDec.:3,20Q€j, 'and,theOliarterly ReportonF9rm"10"Clf9I'tlwguarter ende;d lV1arch31 , 2007.
About, PaeifiCorp(Pac:ific:PoWetand ,Rock"Mountain PoW~r)
Pa.cifiCorplsone pltfua'loWE!st"yOsletecfricityprodqcersin (he U., providing approximately 1.7 million customers
wittirel fable . effiCient energy. TI1e company works to meefgrowingellEirgy demand While protectillgand enhancing
theeriYi(or'II'rieritPaCifiQorp 'qperafeS a$PCiCific PoweriMOregon, WasningtoTl.andCaIifothia,and as Rocky
Mountain POW~(inlJt~h, Wypmlng'(inclldaho~ Visit ourWebsiteatpacifjcpower.net or rockymtnpQwer.net.
About PortlandGal1etalElectricComp;:mv
PQrtlcIJ'jd~~ne~IEI~qtric; h a;actqllartei"~dinPprtjand, pre..,lsa fullyintegr.ate(jelectric uti fitythi:!t serves
p,pproxirnate,ly 7Qp,OdOT~sjdel')tlal comm~rci~Land industrial tu$tomersinOre;gOO. Visit our Web site at
www~P()rtJandGeneraLc6rn.
AboutPuqet Sound Enerqy
Washihgt6n'state'sbldeslahd; largest, energy' utility, witha6,OOO-square-ri1i1e'seNic;e,area 'stretching ' across 11
counties, PQgefSound Ehetgy(PSE)seKtes'1i'I9re:than1milliqnetectric cuSfornEirsand 718 000 natural gas
custQmer~. prirnarUyinWestem Washingfon.PSE meets the energy ,needs ofJtsgrowingCtlstomerbase through
incremental" cost-effective, energy,efficiehcy ,loW-cost'procureme!lt6f, sustaJhableenergy resol.J rces, and' far-sighted
inVestlt1enHMhe eilerSJY-delivery infrastructure. For ri1oreinforrnati(mvlsit.pse~cQm.