20080625notice_of_application_order_no_30580.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
June 25, 2008
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION DBA AVISTA
UTILITIES FOR AN ORDER
AUTHORIZING DEFERRAL OF NET
REVENUES FROM SALES OF CARBON
FINANCIAL INSTRUMENTS
CASE NO. A VU-08-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30580
YOU ARE HEREBY NOTIFIED that on May 22 2008, Avista Corporation filed an
Application requesting an order from the Commission authorizing the Company to defer net
revenues from the sale of carbon financial instruments (CFIs). The revenues result from the sale
of credits relating to the reduction in greenhouse gas emissions through a pilot program offered
through the Chicago Climate Exchange. Participants in the Exchange are required to reduce
greenhouse gas emissions during two phases. The Exchange allows members to sell greenhouse
gas credits based on greenhouse gas reductions compared to a baseline. A vista banked credits
for 2003 through 2006, and was able to sell surplus Phase I CFIs for $2 557 065 , net of the
Exchange commissions.
YOU ARE FURTHER NOTIFIED that in this filing, the Company is requesting an
order allowing for the deferral of the net revenue (revenues from sales of CFIs, less cost
including membership fees paid to the Exchange). The net revenues will be allocated to the
Company s Washington and Idaho jurisdictions based on the current production/transmission
allocation of 64.59% to Washington and 35.41 % to Idaho. The Company requests authority to
defer the CFI revenues in Account 254 - Other Regulatory Liabilities. Interest would accrue on
the Idaho share of the deferrals at the customer deposit rate. The Company will propose
ratemaking treatment of the net revenues and accrued interest in its next general rate case filing
or some other proceeding.
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 20 I through 204 of the Idaho Public Utilities Commission s Rules
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30580
of Procedure, IDAPA 31.01.01.201-204. The Commission notes that Modified Procedure and
written comments have proven to be an effective means for obtaining public input and
participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-one (21) days from the service date of this Notice. The comment must contain a
statement of reasons supporting the comment. Persons desiring a hearing must specifically
request a hearing in their written comments. Written comments concerning this Application may
be mailed to the Commission and A vista at the addresses reflected below:
Street Address for Express Mail:
David 1. 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.meyerCfYavistacorp.com
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, Idaho 83720-0074
472 W. Washington Sreet
Boise, ID 83702-5918 Kelly Norwood
Vice President - State & Federal Regulation
A vista Utilities
PO Box 3727
1411 East Mission Avenue
Spokane, W A 99220-3727
Mail: kelly.norwoodCfYavistacorp.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.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30580
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices or on the Commission Website at
www.puc.idaho.gov under the "File Room" and then "Electric Cases.
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 pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the Application of Avista Corporation for an order
authorizing deferral of net revenues from sales of carbon financial instruments be processed by
Modified Procedure IDAPA 31.01.01.201-.204.Persons interested in submitting written
comments in this matter must do so within twenty-one (21) days from the service date of this
Notice.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30580
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :2S#-
day of June 2008.
ATTEST:
~l\Je D. Jewell
Commission Secretary
bls/O:A VU-08-02 ws
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30580
;J~
MARSHA H. SMITH, COMMISSIONER