20080812notice_of_proposed_settlement_order_no_30622.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
August 12 2008
IN THE MATTER OF THE APPLICATION
OF AVISTA 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-08-
A VU-08-
NOTICE OF
PROPOSED SETTLEMENT
NOTICE OF AMENDED AND
FURTHER SCHEDULING
NOTICE OF TECHNICAL HEARING
(SETTLEMENT STIPULATION)
NOTICE OF PUBLIC HEARINGS
(NORTHERN IDAHO)
NOTICE OF COMMENT DEADLINE
ORDER NO. 30622
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
revenue for electric and natural gas service in Idaho by averages of $32.3 million (16.7%) and
$4.7 million (5.8%), respectively. Intervening parties to this case are Potlatch Corporation and
Community Action Partnership Association of Idaho.
Public workshops for A vista customers were held on July 23, 2008 in Moscow and
July 24 2008 in Coeur d' Alene for the purpose of explaining the Company s Application and in
order to provide an opportunity for customers to ask questions of Commission Staff.
NOTICE OF PROPOSED SETTLEMENT
YOU ARE HEREBY NOTIFIED that on July 28, 2008 , Commission Staff filed with
the Commission a Notice of Intent to Engage in Settlement Discussions. RP 272. A settlement
conference was subsequently held on July 31 2008 and was attended by all parties to the case.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED AND FURTHER SCHEDULING
NOTICE OF TECHNICAL HEARING (Settlement Stipulation)
NOTICE OF PUBLIC HEARINGS (Northern Idaho)
NOTICE OF COMMENT DEADLINE
ORDER NO. 30622
Pursuant to discussions, the parties have entered into a Stipulation and negotiated
settlement that purports to resolve all issues raised in this proceeding. The Stipulation was filed
with the Commission on August 8 , 2008. The parties represent that the Stipulation is in the
public interest and that all of its terms and conditions are fair, just and reasonable.
Under the terms of the Stipulation, A vista would be authorized to recover $23.163
million (11.98%) in additional annual electric revenue and $3.878 million (4.7%) in additional
annual natural gas revenue.
The Stipulation summarizes the adjustments made by the parties to the Company
general rate case filing and discusses specific accounting treatment for (a) Spokane River
relicensing, (b) confidential litigation, (c) Montana riverbed litigation, and (d) revenues
associated with sale of carbon financial instruments (CFIs).
Other issues addressed by the parties in the Stipulation are test year adjustments
power cost adjustment (PCA) authorized level of expense, prudency of the Company energy
efficiency expenditures from November 1 , 2003 to December 31 , 2007, rate spread (a uniform
percentage increase for all classes except electric Schedule 25P), rate design (changes in
commodity and non-commodity rate components), low-income DSM funding (increase of
$125 000), low-income conservation funding for outreach (increase of $25 000), and a proposal
for a Commission-established workshop for examining issues related to energy affordability.
The parties recommend that the Commission approve the Stipulation for an October
2008 effective date. RP 274.
NOTICE OF SCHEDULING
YOU ARE FURTHER NOTIFIED that proponents of a proposed settlement carry the
burden of showing that the settlement is reasonable, in the public interest and in accordance with
law or regulatory policy. RP 275. The parties recognize that the proposed settlement is not
binding on the Commission. RP 276. Settlements are reviewed under Commission Rule of
Procedure 274 (Consideration of Settlements). To establish a sufficient record for decision in
this matter the parties propose and the Commission adopts the following scheduling:
August 22, 2008 Deadline for filing by parties of testimony in support
of Settlement Stipulation
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED AND FURTHER SCHEDULING
NOTICE OF TECHNICAL HEARING (Settlement Stipulation)
NOTICE OF PUBLIC HEARINGS (Northern Idaho)
NOTICE OF COMMENT DEADLINE
ORDER NO. 30622
September 5, 2008 Deadline for filing written comments regarding
the proposed Settlement Stipulation
YOU ARE FURTHER NOTIFIED that the Commission will conduct a technical and
evidentiary hearing on the Settlement Stipulation in this matter on THURSDAY, AUGUST
28,2008, COMMENCING AT 1:00 P.M. AT THE COMMISSION HEARING ROOM, 472
WEST WASHINGTON STREET, BOISE, IDAHO
YOU ARE FURTHER NOTIFIED that the Commission will conduct evenIng
hearings in northern Idaho for the purpose of taking public comment and testimony on the
proposed Settlement Stipulation at the following locations and times:
WEDNESDAY, AUGUST 27, 2008, COMMENCING AT 7:00 P.M. ATTHE NEZ PERCE COUNTY COMMISSION CONFERENCE ROOM,
BRAMMER BUILDING, 1225 IDAHO STREET, LEWISTON, IDAHO
THURSDAY, AUGUST 28, 2008, COMMENCING AT 7:00 P.M. ATTHE EDGEWATER RESORT, 56 BRIDGE STREET, SANDPOINT,
IDAHO.
YOU ARE FURTHER NOTIFIED that the parties proposed and the Commission has
agreed to vacate the August 15 2008 direct testimony and September 9, 2008 rebuttal deadlines
set forth in its Notice of Scheduling issued May 14, 2008. The Commission retains the
previously established September 23 technical hearing date in the event a further scheduling
conference is required. We find that no party to this proceeding will be prejudiced by our
decision and that it is in the best interest of all involved to accommodate the parties' attempts to
settle this matter.
YOU ARE FURTHER NOTIFIED that the Settlement Stipulation in Case Nos.
A VU-08-01lA VU-08-01 together with accompanying Motion and Appendices (and
supporting testimony after August 22, 2008) can be reviewed at the Commission s office in
Boise, Idaho and the Idaho offices of A vista during regular business hours. The Settlement
Stipulation and Motion are also available for viewing on the Commission s website at
www.puc.idaho.gov under "File Room" and then "Electric Cases.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED AND FURTHER SCHEDULING
NOTICE OF TECHNICAL HEARING (Settlement Stipulation)
NOTICE OF PUBLIC HEARINGS (Northern Idaho)
NOTICE OF COMMENT DEADLINE
ORDER NO. 30622
YOU ARE FURTHER NOTIFIED that the Commission is not bound by any
settlement reached by the parties. RP 276. The Commission will independently review any
settlement proposed to determine whether the settlement is just, fair and reasonable, and in the
public interest, or otherwise in accordance with law or regulatory policy. The Commission may
accept the settlement, reject the settlement, or state additional conditions under which the
settlement will be accepted. IDAP A 31.01.01.276.
YOU ARE FURTHER NOTIFIED that written comments concerning the proposed
settlement must be mailed to the Idaho Public Utilities Commission and A vista at the following
addresses:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
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
Mail: david.meyer~avistacorp.com472 W. Washington Street
Boise, ID 83702-5918
Kelly Norwood
Vice President - State & Federal Regulation
A vista Utilities
PO Box 3727
1411 East Mission Avenue
Spokane, WA 99220-3727
Mail: kelly.norwood~avistacorp.com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to A vista at the e-mail addresses listed above.
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED that the Joint Motion for Approval of Settlement Stipulation filed by
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED AND FURTHER SCHEDULING
NOTICE OF TECHNICAL HEARING (Settlement Stipulation)
NOTICE OF PUBLIC HEARINGS (Northern Idaho)
NOTICE OF COMMENT DEADLINE
ORDER NO. 30622
A vista Utilities, Potlatch Corporation, Community Action Partnership Association of Idaho, and
Commission Staff be processed pursuant to the procedural scheduling set forth above.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J:;"
t-"
day of August 2008.
MACK A. REDFORD, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Commission Secretary
bls/O:A VU-O8-A VU-O8-sw3
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED AND FURTHER SCHEDULING
NOTICE OF TECHNICAL HEARING (Settlement Stipulation)
NOTICE OF PUBLIC HEARINGS (Northern Idaho)
NOTICE OF COMMENT DEADLINE
ORDER NO. 30622