20100727Application.pdf

FILED ELECTRONICALLY AN VIA OVERNIGHT MAIL
JiVlSTAe
RECEIVEdorp.
inlOJUL 21 AM 10=31
Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
July 26,2010
n i¡ IJ i="'LJ~\Gnnv..t .....- '" ,".-,UTiUTli:;: vV
State of Idaho
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702-5983
Attention: Ms. Jean Jewell, Secretary
Case No. AVU-E-10-03
Power Cost Adjustment (PCA) Anual Filng of A vista Corporation
Enclosed is Avista's Power Cost Adjustment (PCA) annual filing. The filing consists of an
original and seven copies of Avista's Application and nine copies of prefied testimony and
exhibits. Also enclosed are thee copies of supporting workpapers and documentation, as well as
a set of Monthly PCA reports for the months of July 2009 through June 2010. Also enclosed is a
certificate of service, thee copies of a customer notice, and three copies of a press release. A
computer readable copy of the testimonies, exhibits, and workpapers, required under Rule
231.05, are included on an enclosed compact disk.
The Company is requesting that the Commission issue an order approving recovery of power
costs deferred for the period July 1,2009 through June 30, 2010, and approving a PCA surcharge
of 0.532~ per kilowatt-hour to be effective October 1, 2010. Since the proposed surcharge is
spread on a uniform cents per kilowatt-hour basis, the resulting percentage increases vary by rate
schedule. The overall increase is 2.61 %.
Under the Company's proposal, the surcharge rate for all customers, including residential
customers would increase from 0.344~ per kilowatt-hour to 0.532~ per kilowatt-;hour, or an
increase ofO.188~per kilowatt-hour. For an average residential customer using 1,000 kilowatt-
hours per month, the monthly increase wil be $1.88. Under present rates, a residential bil for
1,000 kilowatt-hours amounts to $80.90. With the proposed surcharge in place the monthly bil
would be $82.78, or about 2.32% higher than the bil under present rates.
Please note that A vista has deemed certain supporting documents to be classified as
CONFIDENTIAL, 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 CONFIDENTIAL supporting documents contain valuable commercial information.
As such, A vista is submitting a separate electronic CD containing the electronic form of the
CONFIDENTIA supporting documents, in compliance with Idaho rule 67.0L.b.
Please direct any questions regarding this filing to Ron McKenzie at [phone].
Sincerely,~ d.. i.
Kelly Norwood
Vice President, State and Federal Regulation
Enclosures
RM
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have served Avista Corporation's Power Cost
Adjustment (PCA) Annual Rate Adjustment Filng by mailing 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 26th day of July 2010.
Ll.~pattyOI~
Rates Coordinator
RECE nl.....t
1 David J. Meyer
2 Vice President and Chief Counsel of
3 Regulatory and Governental Affairs
4 A vista Corporation
5 1411 E. Mission Avenue
6 P. O. Box 3727
7 Spokane, Washington 99220
8 Phone: [phone], Fax: [phone]
lOl6JUl27 A~ntJ: 37
9 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
10
11
12
13
14
15
IN THE MA TIER OF THE POWER COST
ADJUSTMENT (PCA) ANAL RATE
ADJUSTMENT FILING OF AVISTA
CORPORATION
)
) CASE NO. A VU-E-I0-03
)
)
I. INTRODUCTION
16 A vista Corporation, doing business as A vista Utilties (hereinafter A vista or Company),
17 at 1411 East Mission Avenue, Spokane, Washington, respectfully files its Power Cost
18 Adjustment (PCA) anual rate adjustment filing in the above referenced case. The Company
19 requests the Commission issue an order approving recovery of power costs deferred for the
20 period July 1, 2009 through June 30, 2010, and approving a PCA surcharge of 0.532~ per
21 kilowatt-hour to be effective October 1, 2010. The Company requests that this fiing be
22 processed under the Commission's modified procedure rules.
23 Communications in reference to this Application should be addressed to:
24
25
26
27
28
29
30
31
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 Governental Affairs
A vista Corporation
1411 E. Mission Avenue
Spokane, Washington 99220
Phone: [phone]
Fax: [phone]
II. BACKGROUND32
AVISTA'S peA ANAL RATE ADJUSTMENT FILING PAGE 1
1 A vistàs PCA is used to track changes in revenues and costs associated with varations in
2 hydroelectrc generation, secondar prices, thermal fuel costs, and changes in power contract
3 revenues and expenses. A vistàs existing PCA methodology and method of recovery 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 trigger and cap mechanism to a
6 single anual PCA rate adjustment filing requirement. The Commission approved the following
7 procedural schedule for administering the anual PCA filings:
8 August 1 Company filing for prior July-June deferral period
9 September 1 Review and comments by Staff and other interested parties
10 October 1 Commission Order and effective date of PCA rate adjustment
11 The Commission also approved a change in the method of PCA deferral recovery from a
12 uniform percentage basis to a uniform cents per kilowatt-hour basis effective with the October 1,
13 2007 PCA rate change.
14 On July 28,2008 Avista filed its PCA report for the period July 1,2007 through June 30,
15 2008 and requested a surcharge of 0.61O~ per kilowatt-hour effective October 1, 2008. On
16 September 30, 2008 the Commission issued Order No. 30645 in Case No. A VU-E-08-05,
17 approving the PCA surcharge of 0.61O~ per kilowatt-hour effective October 1, 2008. The PCA
18 surcharge was then reduced to 0.344~ per kilowatt-hour effective August 1, 2009, to parially
19 mitigate the general rate increase that was approved by Order No. 30856 in Case No. A VU-E-
20 09-01, dated July 17, 2009.
21 On July 30, 2009 A vista fied its annual PCA report for the period of July 1, 2008
22 through June 30, 2009 and requested that the PCA rate established by Order No. 30856 remain in
23 effect until the Company's next anual PCA filing establishes a new rate to be effective on
AVISTA'S peA ANAL RATE ADJUSTMENT FILING PAGE 2
1 October 1,2010. The Commission approved that proposal in Case No. A VU-E-09-07, by Order
2 No. 30919, dated October 7, 2009.
3 III. DEFERRS - JULY 1, 2009 THROUGH JUNE 30, 2010
4 The amount of power cost deferrals for the period July 1,2009 through June 30, 2010 is
5 shown below, as well as interest for the same period. Mr. Johnson's testimony provides an
6 explanation of the factors causing the deferral entres for the period. Mr. McKenzie's testimony
7 addresses the Centralia refund and interest amount.
8
9
10
11
12
Deferrals (July 2009 - June 2010)
Centralia refund
Subtotal
Interest
Balance at June 30, 2010
$16,613,904
-189,607
16,424,297
121,794
$16,546,091
13 Monthly reports have been filed with the Commission regarding actual PCA deferral
14 entries to date. An additional copy of those reports for the months of July 2009 through June
15 2010 have been included with this filing and have also been provided to Clearwater Paper
16 Corporation.
17 IV. PROPOSED SURCHARGE TO BE EFFECTIVE OCTOBER 1, 2010
18 The Company is proposing a uniform cents per kilowatt-hour PCA surcharge of 0.532~ to
19 be effective October 1, 2010. Attached as Exhibit"A'is a copy of the proposed tariff, Schedule 66
20 (Twelfth Revision), which contains the proposed PCA surcharge rate. Also included in Exhibit
21 '~is a tariff sheet that shows the proposed changes to Schedule 66 (Eleventh Revision) by the
22 use of strikeouts and underlining. Page 2 of Mr. McKenzie's Exhibit No. _ (RLM-1) shows the
23 calculation of the proposed surcharge. The proposed surcharge is designed to recover the
24 deferrals for the period July 1, 2009 through June 30, 2010, as well as the unrecovered balance
AVISTA'S peA ANAL RATE ADJUSTMENT FILING PAGE 3
1 related to the July 1, 2008 through June 30, 2009 deferral period, and interest durng the recovery
2 period of October 1,2010 through September 30,2011.
3 Since the proposed surcharge is spread on a uniform cents per kilowatt-hour basis, the
4 resulting percentage increases vary by rate schedule. Page 1 of Mr. McKenzie's Exhibit No. _
5 (RLM-1) shows the effect of the proposed PCA surcharge by rate schedule. The proposed
6 surcharge is 0.532~ per kilowatt-hour, which is 0.188~ per kilowatt-hour more than the existing
7 surcharge ofO.344~ per kilowatt-hour. Column (f) on page 1 of Exhibit No. _ (RLM-1) shows
8 the percentage increases by rate schedule. The overall increase is 2.61 %.
9 Under the Company's proposal, the surcharge rate for all customers, including residential
10 customers wil increase from 0.344~ per kilowatt-hour to 0.532~ per kilowatt-hour, or an
11 increase of 0.188~ per kilowatt-hour. For an average residential customer using 1,000 kilowatt-
12 hours per month, the monthly increase wil be $1.88. Under present rates, a residential bil for
13 1,000 kilowatt-hours amounts to $80.90. With the proposed surcharge in place the monthly bil
14 would be $82.78, or about 2.32% higher than the bil under present rates.
15 V. REQUEST FOR RELIEF
16 The Company requests the Commission issue an order approving recovery of power costs
17 defered for the period July 1, 2009 through June 30, 2010, and approving a PCA surcharge of
18 0.532~ per kilowatt-hour to be effective October 1, 2010. The Company requests that the matter
19 be processed under the Commission's Modified Procedure rules through the use of wrtten
20 comments.
21
AVISTA'S peA ANAL RATE ADJUSTMENT FILING PAGE 4
1 Dated at Spokane, Washington this 26th day of July 2010.
2
3 AVISTA CORPORATION
4
5
6
7
8
9
BØt~w=
Kelly Norwood
Vice President
State and Federal Regulation
AVISTA'S peA ANAL RATE ADJUSTMENT FILING PAGES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
VERIICATION
STATE OF WASHINGTON )
)County of Spokane )
Kelly Norwood, being first duly sworn on oath, deposes and says: That he is the
Vice President of State and Federal Regulation of Avista Utilties and makes this verification for
and on behalf of Avista Corporation, being thereto duly authorized;
That he has read the foregoing filing, knows the contents thereof, and believes the same
to be true.
~4ú h~
SIGNED AN SWORN to before me this 26th day of July 2010, by Kelly Norwood.
\\,'''""1',/~\.." \.. DL.S"''-'..~'\r.~.....~~.L~~~ .. ~'(p'~ei/ :- tP~
g : NOTARY \ :
: dl \ PUBUC r~ E..~\ . ~..-; _ ... ... ,LO~~ , A....02.22.\".~.. f.' ~~:(- ......... ~"" OF Wp.$ \\\\'Ii,"""",,
NOTARY P LIC in and for the State of
Washington, residing at Spokane.
Commission Expires: c9 -à;; - f'l
AVISTA'S peA ANAL RATE ADJUSTMENT FILING PAGE 6
Case No. AVU-E-10- 63
Exhibit "A"
I.P.U.C. NO.28
Twelfth Revision Sheet 66
Canceling
Eleventh Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
66
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold and to the flat rate charges for Company-owned or
Customer-owned Street Lighting and Area Lighting Service. This Rate Adjustment is
designed to recover or rebate a portion of the difference between actual and allowed
net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21, 22, 25, 25P, 31, and 32
are to be increased by O.532Ø per kilowatt-hour in all blocks of these rate schedules.
Flat rate charges for Company-owned or Customer-owned Street Lighting and
Area Lighting Service, Schedules 41-49, are to be increased by O.532Ø per kilowatt-
hour times the monthly usages of the various light sizes and types on these schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
Issued July 26, 2010 Effective October 1, 2010
Issued by Avista Utiities
By Kelly O. Norwood - Vice President, State & Federal Regulation
I.P.U.C. NO.28
Eleventh Revision Sheet 66
Canceling
Tenth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utiities
66
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold and to the flat rate charges for Company-owned or
Customer-owned Street Lighting and Area Lighting Service. This Rate Adjustment is
designed to recover or rebate a portion of the difference between actual and allowed
net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21, 22, 25, 25P, 31, and 32
are to be increased by O.344Ø per kilowatt-hour in all blocks of these rate schedules.
O.532Cl
Flat rate charges for Company-owned or Customer-owned Street Lighting and
Area Lighting Service, Schedules 41-49, are to be increased by O.344Ø per kilowatt-
hour times the monthly usages of the various light sizes and types on these schedules.
O.532Cl
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
Issued July 24, 2009 Effective August 1, 2009
Issued by Avista Utilties
By Kelly O. Norwood - Vice President, State & Federal Regulation