20090420Decision Memo.pdf

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DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKNG FILE
FROM:TJGOLO
DATE:APRIL 15, 2009 Itvo t~DCr'Ò3
RE: REVISIONS TO A VISTA'S SCHEDULE 51 - LINE EXTENSION,
CONVERSION AND RELOCATION SCHEDULE.
On March 31,2009, Avista filed revised Schedule 51, the Company's Line Extension,
Conversion and Relocation Schedule in compliance with Order No. 28562 issued on November
27,2000 in No. AVU-E-OO-l. Avista is required to make an anual filing, on or before April 1,
updating its line extension costs and charges to reflect actual costs incurred in the previous
calendar year.
Staff has reviewed the revised taff and finds that it incorporates all ofthe changes
ordered by the Commission in Order No. 28562. Most line extension costs have increased
approximately 10-11 percent. These cost increases greatly exceed the general inflation rate, but
are consistent with recent cost increases in the constrction and materials industres. Meanwhile,
the costs of transformers are down from last year. Although Staff has seen continuous increases
for transformer costs in previous updates of line extension cost, in this update, overhead
transformer costs are down approximately 5 percent and underground transformer costs are down
11 percent from last year. By keeping line extension costs curent, new customers bear more of
their fair share of the costs, rather than burdening existing ratepayers with the costs of new
growth.
STAFF RECOMMENDATION
Staf recommends approval of the revised tarff with an effective date of May 4,2009.
DECISION MEMORANDUM - 1 -APRIL 15,2009
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COMMISSION DECISION
Does the Commission wish to accept the anual revisions of Avista's Schedule 51 for
2009?
i:udmemos! AVU Line Extension Cost update.doc
DECISION MEMORAUM - 2 -APRI 15,2009