20090730Application.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
RECE.\VED
1069 JUl 30 AM 'O~ 08
\OAHO p
UTlUT\ES C'
~~~'V'STA'
Corp.
VIA OVERNGHT MA
July 29,2009
State ofIdaho
Idaho Public Utilties Commission
472 W. Washington St.
Boise, ID 83702-5983
Attention: Ms. Jean Jewell, Secretar
Case No. A VU- E-09-D r¡
Power Cost Adjustment (PCA) Anual Filing of A vista Corporation
Enclosed is Avista's Power Cost Adjustment (PCA) anual filing. The fiing consists of an
original and seven copies of Avista's Application and nine copies of prefied testimony and
exhibits. Also enclosed are three copies of supporting workpapers and documentation, as well as
a set of Monthly PCA reports for the months of July 2008 through June 2009. Also enclosed is a
certificate of service. A computer readable copy of the testimonies, exhibits, and workpapers,
required under Rule 231.05, are included on an enclosed compact disk. Since no adjustment to
the PCA rate is being proposed there is no customer notice or press release.
The Company is requesting that the Commission issue an order approving recovery of power
costs deferred for the period July 1, 2008 through June 30, 2009. Under normal circumstances
the Company would be proposing a PCA rate adjustment based on deferrals for the perod July 1,
2008 through June 30, 2009. In this instance no rate adjustment is being proposed due to the
Stipulation and Settlement approved by Order No. 30856 dated July 17, 2009 in the Company's
electric and gas general rate cases, Case Nos. A VU-E-09-01 and A VU-G-09-01. As par of the
Settlement (Item 15(t) on page 12) the parties agreed to reduce the PCA surcharge rate effective
August 1,2009. The PCA surcharge rate ofO.61OØ per kilowatt-hour that was effective October
1, 2008, wil be reduced to 0.344Ø per kilowatt-hour effective August 1, 2009. The August 1,
2009 PCA surcharge rate of 0.344Ø per kilowatt-hour is expected to remain in place until
October 1, 2010, when it wil be replaced by a new rate that wil be proposed as par of the
Company's next anual PCA report for the period July 1, 2009 through June 30, 2010.
Please note that Avista has deemed certain supporting documents to be classified as
CONFIDENTIA, rendering these documents exempt from public inspection, examination and
copying pursuant to Sections 9-340A through 9-340F of the Idaho Code. Avista believes that the
identified CONFIDENTIA supporting documents contain valuable commercial information.
As such, Avista is submitting a separate electronic CD containing the electronic form of the
CONFIDENTIA supporting documents, in compliance with Idaho rule 67.01.b. Please adhere
to A vista's request by treating those supporting documents identified as CONFIDENTIA by not
disclosing to any pary outside of this proceeding without the specific written permission of
Avista.
Please direct any questions regarding ths filing to Ron McKenzie at [phone].
Sincerely,
?# J~..
Kelly Norwood
Vice President, State and Federal Regulation
Enclosures
RM
RECEIVED
CERTIFICATE OF SERVICE 2009 JUL 30 AM 10= 37
IDAHO PUBLV-:
UTilITIES COMMIŠSION
I HEREBY CERTIFY that I have served Avista Corporation's Power Cost
Adjustment (PCA) Annual Rate Adjustment Filng by mailng a copy thereof,
postage prepaid, to the following:
Ms Jean D Jewell, Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise,ID 83702-5983
Pamela Mull
Vice President & General Counsel
Clearwater Paper
601 W. First Ave.
Suite 1600
Spokane, WA 99201
Howard Ray
Technical Services Manager
Clearwater Paper
803 Mil Road
PO Box 1126
Lewiston, ID 83501-1126
Dated at Spokane, Washington this 29th day of July 2009.
pa~
Rates Coordinator
1
2
3
4
5
6
7
8
RECEIVED
David J. Meyer "069 JUL 30 AM \O~ 08
Vice President and Chief Counsel of L
Regulatory and Governental Affairs
A vista Corporation
i 4 i 1 E. Mission Avenue
P. O. Box 3727
Spokane, Washington 99220
Phone: [phone], Fax: [phone]
9 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
10
11
12
13
14
IN THE MATTER OF THE POWER )
COST ADJUSTMENT (PCA) ANAL )
FILING OF A VISTA CORPORATION )
CASE NO. A VU-E-09-o7
I. INTRODUCTION
15 A vista Corporation, doing business as A vista Utilities (hereinafter A vista or Company), at
16 1411 East Mission Avenue, Spokane, Washington, respectfully files its Power Cost Adjustment
17 (PCA) anual filing in the above referenced case. The Company requests the Commission issue an
18 order approving recovery of power costs deferred for the period July 1, 2008 through June 30, 2009.
19 As explained below, no adjustment to the PCA rate is being proposed as part of this filing. The
20 Company requests that this filing be processed under the Commission's modified procedure rules.
21 Communications in reference to this Application should be addressed to:
22
23
24
25
26
27
28
29
Kelly O. Norwood
Vice President
State and Federal Regulation
A vista Corporation
1411 E. Mission Avenue
Spokane, Washington 99220
Phone: [phone]
Fax: [phone]
David J. Meyer
Vice President and Chief Counsel of
Regulatory and Goverental Affairs
A vista Corporation
1411 E. Mission Avenue
Spokane, Washington 99220
Phone: [phone]
Fax: [phone]
30
31 II. BACKGROUND
AVISTA'S peA ANNAL FILING PAGE 1
1 Avista's PCA is used to track changes in revenues and costs associated with varations in
2 hydroelectric generation, secondar prices, thermal fuel costs, and changes in power contract
3 revenues and expenses. Avista's existing PCA methodology and method of recover were
4 approved in Case No. A VU-E-07-01 by Order No. 30361 dated June 29, 2007. In that case the
5 Commission approved a change in the PCA methodology from a trgger and cap mechanism to a
6 single anual PCA rate adjustment filing requirement. The Commission approved the following
7 procedural schedule for administering the annual PCA filings:
8 August 1 Company filing for prior July - June deferal period
9 September 1 Review and comments by Staff and other interested paries
10 October 1 Commission Order and effective date of PC A rate adjustment
11 The Commission also approved a change in the method of PCA deferral recovery from a uniform
12 percentage basis to a uniform cents per kilowatt-hour basis effective with the October 1, 2007 PCA
13 rate change.
14 On July 3 1,2007 Avista filed its first PCA anual rate filing for the perod July 1,2006
15 through June 30, 2007 pursuant to the modifications and procedural schedule approved by Order No.
16 30361. Order No. 30429 in Case No. AVU-E-07-07 dated September 14,2007 approvedaPCArate
17 surcharge of 0.267 ø per kilowatt-hour effective for the period October 1, 2007 through September
18 30,2008.
19 On July 28, 2008 Avista filed its PCA report for the period July 1,2007 through June
20 30, 2008. Order No. 30645 in Case No. A VU-E-08-05 dated September 30, 2008 approved a PCA
21 rate surcharge of 0.610Ø per kilowatt-hour effective for the period October 1, 2008 though
22 September 30, 2009.
AVISTA'S peA ANNAL FILING PAGE 2
1 III. DEFERRS - JULY 1, 2008 THROUGH JUE 30, 2009
2 The amount of power cost deferrals for the period July 1, 2008 through June 30, 2009
3 amounted to $10,761,381. Mr. Johnson's testimony provides an explanation ofthe factors causing
4 the deferral entries for the period. Mr. McKenzie's testimony provides a summar and explanation
5 of the accounting entries associated with the PCA deferrals.
6 Monthly reports have been filed with the Commission regarding actual PCA deferal
7 entres to date. To facilitate Staffs review, additional copies of those reports for the months of
8 July 2008 through June 2009 have been included with this filing and have also been provided to
9 Clearater Paper.
10 IV. NO PCA RATE ADJUSTMENT IS BEING PROPOSED
11 Under normal circumstances the Company would be proposing a PCA rate adjustment based
12 on deferrals for the period July 1, 2008 through June 30, 2009. In this instance no rate adjustment is
13 being proposed due to the Stipulation and Settlement approved by Order No. 30856 dated July 17,
14 2009 in the Company's electrc and gas general rate cases, Case Nos. A VU-E-09-01 and A VU-G-09-
15 01. As par of the Settlement (Item 15( t) on page 12) the parties agreed to reduce the PCA surcharge
16 rate effective August 1, 2009. The PCA surcharge rate of 0.61 Oø per kilowatt-hour that was effective
17 October 1,2008, wil be reduced to 0.344Ø per kilowatt-hour effective August 1,2009.
18 The August 1,2009 PCA surcharge rate ofO.344Ø per kilowatt-hour is expected to remain in
19 place until October 1,2010, when it wil be replaced by a new rate that wil be proposed as par of
20 the Company's next anual PCA report for the perod July 1, 2009 through June 30, 2010.
21
22
AVISTA'S peA ANNAL FILING PAGE 3
1 V. REQUEST FOR RELIEF
2 The Company requests the Commission issue an order approving recovery of power costs
3 deferred for the period July 1, 2008 through June 30, 2009. The Company requests that the matter be
4 processed under the Commission's Modified Procedure rules through the use of wrtten comments.
5
6 Dated at Spokane, Washington this 29th day of July 2009.
7
8 AVISTA CORPORATION
9
10
11
12
13
14
BY "1út J~~_
Kelly Norwood
Vice President
State and Federal Regulation
AVISTA'S peA ANNAL FILING PAGE 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
VERIICATION
STATE OF WASHIGTON)
)
County of Spokane )
Kelly Norwood, being first duly sworn on oath, deposes and says: That he is the Vice
President of State and Federal Regulation of Avista Utilities and makes this verification for and on
behalf of Avista Corporation, being thereto duly authorized;
That he has read the foregoing filing, knows the contents thereof, and believes the same to be
tre.¿~~4t
SIGNED AN SWORN to before me this 29th day of July 2009, by Kelly Norwood.
\\\\\\\\1111 "lilt.~,\,\' o\.NE: 111111.
,~,,"" ...........~ "~~~"" ....~A.~... ~~ .. .._...."N ...~_..0.' . ': . 1i¥ ..# "a.iy .. ~:: : 0 ,.f:'" \::~~ .iu"" 1 ë.. ~ :.-S ". PU'\: 0: f:i~ \.§...~s".... b. _ '1''.~.,,~_ 'I . .....c;. '''i... ~~~. !4r,.......... \" ~. E OF ..~ \\'\~
., ", II!. .t\\\.'.\
NOTAR~&StateOf
Washington, residing at Spokane.
Commission Expires:,;/~~/t0r I
A VISTA'S peA ANAL FILING PAGES