20080709notice_of_application_order_no_30591.pdf

Offce of the Secretar
Service Date
july 9, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR
AUTHORI TO DEFER COLSTRIP
LAWSUI SETTLEMENT PAYMENT
)
) CASE NO. AVU-E-08-03
)
) NOTICE OF APPLICATION
)
) NOTICEOF
) MODIFIED PROCEDURE
)
) ORDER NO. 30591
NOTICE OF APPLICATION
YOU AR HEREBY NOTIFIED that on May 22, 2008, Avista Corpration
("Avista" or "Company") fied an Application with the Commssion seeking an accounting order
deferrg the Company's payment of a settlement associated with a lawsuit over damages caused
by the operation of the Colstp Generating Project in Colstrp, Monta A vista states that it
own a 15 percent interest in Units 3 & 4 of the Colstrp Generating Project.
YOU AR FURTHER NOTIFIED that Avista estimates that its share of the lawsuit
settement payment, absent any recovery from applicable insurce carers, is $2,084,443.
YOU AR FUTHER NOTIFIED tht Avista clais it could potentially recover
approximately $734,035 under relevant insurce policies and thereby reduce its out-of-pocket
expense to approximately $1,350,408. The defendat, Colstrp Generating Project, is curntly
seekig indemnfication from its insurce carers. The potential outcome of their effort is not
asertable.
YOU AR FURTHER NOTIFIED th Avista assert tht the settlement term
represent a favorable resolution of ths matter because it (1) offers a final resolution of more th
five year of disputed litigation; (2) represents a substatial reduction of Avist's potential
exposur for "excessive compensatory and puntive daages"; (3) faciltates Avista's negotiation
with the Monta Deparent of Environmenta Quity concernng appropriate remediation
effort at the Colstrp facilty; and (4) assists the defendats in limting any futue claims by
providing them with "rights of first refual with respect to plaintiffs' properties."
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDUREORDER NO. 30591 1
YOU ARE FURTHER NOTIFIED that Avista requests an "order allowing for the
deferr of the settlement payment." The Company states that it will more fuly "address the
prudency and recovery of the settement payment, and propose a method of recovery of the
settlement payment(,J" minus "any reimburement from insurce carers," in its next genera
rate case, or any other proceeding the Commission deems appropriate.
YOU AR FURTHER NOTIFIED that Avista ha specifically requested the
"authority to defer the Colstrp settement payment in Account 186 - Miscellaneous Deferrd
Debits." The Company states that the "settlement payment will be allocated to the Washington
and Idao jursdictions based on the curent Production/rasmission allocation of 64.59% to
Washington and 35.41 % to Idaho, and placed in separate Washington and Idaho 186-accounts."
The Company would apply the tyical customer deposit rate to Idao's shar of the deferrs.
NOTICE OF MODIFIED PROCEDURE
YOU AR FURTHER NOTIFIED that the Commission has determined tht the
public interest may not require a formal hearng in ths matter and will proceed under Modified
Procedur pursuat to Rules 201 though 204 of the Idao Public Utilties Commission's Rules
of Procedure, IDAPA 31.01.01.201 though .204. The Commssion notes tht Modified
Procedure and wrtten comments have proven to be an effective mean for obtanig public input
and parcipation.
YOU AR FUTHR NOTIFIED that any persn desiring to state a position on ths
Application may fie a wrtten comment in support or opposition with the Commission with
twenty-one (21) days from the servce date of ths Notice. The comment must conta a
sttement of reasons supporting the comment. Persons desirig a hearg must specifically
request a hearng in their wrtten comments. Written comments concerng ths Application
shall be mailed to the Commission and A vista at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDUR
ORDER NO. 30591 2
Commission Secretar
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Ex.press Mail:
Kelly O. Norwood
Vice President
State and Federal Regulation
Avista Corporation
1411 E. Mission Avenue
Spokane, Washington 99220
E-mail: kelly.norwoodCIavistacorp.com
472 W. Washington Street
Boise, ID 83702-5918 David J. Meyer, Esq.
Vice President and Chief Counsel of
Regulatory and Governental Affairs
A vista Corporation
141 I E. Mission Avenue
Spokane, Washington 99220
E-mail: david.meyerCIavistacorp.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 ww.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 wil consider this matter on its merits and
enter its Order without a formal hearng. If wrtten comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearng.
YOU ARE FURTHER NOTIFIED that the Application has been fied with the
Commission and is available for public inspection during regular business hours at the
Commission offces. The Application is also available on the Commission's Website at
ww.puc.idaho.gov and then clicking on the "File Room" and then "Electric Cases."
YOU ARE FURTHER NOTIFIED that all proceedings in this case wil be held
pursuat to the Commission's jursdiction unCler Title 61 of the Idaho Code and specifically
Idaho Code § 6 I -524. The Commission may enter any final Order consistent with its authority
under Title 6 I.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDUREORDER NO. 30591 3
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure, IDAPA 3 i.o 1.0 i .000 et seq.
ORDER
IT is HEREBY ORDERED that this Application wil be processed under Modified
Procedure. Persons interested in submitting wrtten comments regarding this case or protesting
the use of Modified Procedure should do so no later than 21 days from the service date of ths
Order.
DONE by Order of the Idaho Public Utilties Commission at Boise, Idaho this ,,""
day of July 2008.~~
MACK A. REDFORD, PRESIDENT
~JJ~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~~~~Commission Secretar
O:A VU-E-08-03 _np
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDUREORDER NO. 30591 4