20080416notice_of_application_avu.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
April 16 2008
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION FOR THE
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR ELECTRIC AND
NATURAL GAS SERVICE TO ELECTRIC
AND NATURAL GAS CUSTOMERS IN THE
STATE OF IDAHO
CASE NOS. A VU-O8-
A VU-O8-
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
NOTICE OF
PREHEARING CONFERENCE
YOU ARE HEREBY NOTIFIED that on April 3 , 2008 , Avista Corporation dba
Avista Utilities (Avista; Company) filed an Application with the Idaho Public Utilities
Commission (Commission) for authority to increase the Company s general rates for electric and
natural gas service in Idaho by averages of 15.8% and 5., respectively. If approved, the
Company revenues for electric base retail rates would increase by $32.3 million annually;
Company revenues for natural gas service would increase by $4.7 million annually. The net
amount of actual increase varies by class of customer and usage.
Electric
Under the Company electric rate proposal, an average residential customer
(Schedule 1) using 977 kilowatt hours of electricity per month would see a $10.70 per month
increase or 15.9% for a revised monthly bill of $78.08. This includes a Company-proposed
increase in the basic monthly customer service charge from $4.00 to $4.60. Other electric
customers would see an increase between 15.4% and 16.5%.
The proposed revenue increase for electric service requested in this case, the
Company states, is driven primarily by increased power supply costs, capital investments in
upgrading aging infrastructure to increase capacity and reliability, relicensing costs for Avista
Spokane River Hydropower Project, and the Company s investment in advanced meter reading
(AMR).
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE
Natural Gas
Under the Company s natural gas rate proposal, an average residential customer
(Schedule 101) who uses 65 therms per month would see a $4.91 increase or 6., for a revised
monthly bill of $80.05. This includes a proposed increase in the monthly basic customer service
charge from $3.28 to $4.00. Larger commercial natural gas customers would see no more than a
3% increase. The proposed rate change for natural gas customers, the Company states, does
not reflect changes in the cost of natural gas purchased by A vista to serve customers. Changes in
the cost of natural gas are reflected in annual Purchased Gas Adjustment.
Driving the natural gas rate request in this case is Avista s investment in expanding
the natural gas storage and delivery capacity at its Jackson Prairie Storage Facility and the
Company s investment in advanced meter reading (AMR).
Evidence in support of the Company s need for a rate increase for electric and natural
gas is based on a 2007 test year. The Company proposes an average rate of return on rate base of
74%, with a 47.94% common equity ratio and a 10.8% return on equity. Avista alleges that
unless it is authorized to increase rates as requested, the Company s rates will not be fair, just
and reasonable and it will not have the opportunity to realize a fair return on its investment.
The Company s base rates and charges for electric and natural gas service were last
adjusted in 2004 (Case Nos. A VU-04-01/A VU-04-, Order No. 29602). An additional
electric rate adjustment related to the Coyote Springs II generating project was implemented
April 12, 2005 (Case No. A VU-05-01).
YOU ARE FURTHER NOTIFIED that the Commission in Order No. 30528 has
suspended the Company-proposed May 5, 2008 effective date for a period of thirty (30) days
plus five (5) months from May 5 , 2008, or until such time as the Commission may issue an Order
accepting, rejecting or modifying the Application in this matter.
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case Nos.
A VU-08-01 and/or A VU-08-01 for the purpose of becoming a party, i., to present
evidence, to acquire rights of cross-examination, to participate in settlement or negotiation
conferences, and to make and argue motions must file a Petition to Intervene with the
Commission pursuant to Rules 72 and 73 of the Commission s Rules of Procedure, IDAPA
31.01.01.072 and .073. Persons desiring to acquire intervenor rights of participation must file a
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE
Petition to Intervene on or before Friday, May 9,2008. Persons seeking intervenor status shall
also provide the Commission Secretary with their electronic mail address to facilitate future
communications in this matter.
YOU ARE FURTHER NOTIFIED that persons desiring to present their VIews
without parties' rights of participation and cross-examination are not required to intervene and
may present their comments without prior notification to the Commission or to other parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed. The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that a prehearing conference in Case Nos. A VU-
08-01 and A VU-08-01 has been scheduled to commence at 1:30 p.m. on Wednesday. May
14. 2008 at the Commission Hearin2 Room. 472 West Washin2ton Street. Boise. Idaho
[phone] Persons desiring to participate telephonically should make prior arrangements
with the Commission Secretary (208-334-0338); secretary~puc.idaho.gov. The purpose of the
prehearing conference is to identify intervening parties, to identify issues not readily apparent
from a review of the Company s Application, and to establish hearing dates and deadlines for the
filing of testimony.
YOU ARE FURTHER NOTIFIED that discovery is available in Case Nos. A VU-
08-01 and A VU-08-01 pursuant to the Commission s Rules of Procedure, IDAP
31.01.01.221-234.
YOU ARE FURTHER NOTIFIED that the Company s Application and supporting
testimony, exhibits and workpapers in Case Nos. A VU-08-01 and A VU-08-01 can be
reviewed at the Commission s office in Boise, Idaho and at the Idaho offices of Avista Utilities
during regular business hours. The Application is also available for public inspection on the
Commission s website at www.puc.idaho.gov under "File Room" and then "Electric Cases
and/or "Gas Cases.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Avista s representatives in this matter:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE
DAVID J. MEYER
VICE PRESIDENT, CHIEF COUNSEL, REG. & GOV'T AFFAIRS
A VISTA CORPORATION
PO BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, W A 99220-3727
E-mail: david.meyer~avistacorp.com
KELL Y NORWOOD
VICE PRESIDENT - STATE & FEDERAL REGULATION
A VISTA UTILITIES
PO BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WA 99220-3727
E-mail: kelly.norwood~avistacorp.com
YOU ARE FURTHER NOTIFIED that Avista s intrastate revenue requirement, and
every component of it, both rate base and expense, are at issue. The Commission may grant
deny, or modify the revenue requirement requested and may find a revenue requirement different
from that proposed by any party is just, fair and reasonable. IDAP A 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Avista retail
customers , both recurring and non-recurring, including those of special contract customers, are at
issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, reject or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just, fair and reasonable.
IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings and may approve, reject or modify existing or
proposed relationships among and between customer classes or rate groupings. IDAP A
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges, abolish, create or reduce components of
rates and charges, abolish, reduce or create customer classes or rate groupings, and abolish
reduce or create absolute or relative differences among and between existing classes or rate
groupings of customers. IDAP A 31.01.01.124.02.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations
service, instrumentalities, equipment, facilities, classifications , and customer relations of the
utility are at issue, and the Commission may address any of them in its order.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted according to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA). Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-mail: secretary~puc.idaho.gov
DATED at Boise, Idaho this &tk day of April 2008.
~tr) Je D. Jewell
Commission Secretary
N:A VU-O8-A VU-08-
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE