20101021Comments.pdf

KRISTINE A. SASSER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BARNO. 6618
RECEI r'"î
zonner 21 AM 7: 55
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
A VISTA CORPORATION DBA A VISTA )
UTILITIES FOR MODIFICATION OF ITS )
RESIDENTIAL AND FARM ENERGY RATE )ADJUSTMENT. )
)
CASE NO. A VU-E-IO-4
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilties Commission, by and through its
Attorney of record, Kristine A. Sasser, Deputy Attorney General, and in response to the Notice of
Application and Notice of Modified Procedure issued in Order No. 32082 on October 5, 2010, in
Case No. AVU-E-I0-4, submits the following comments.
BACKGROUND
On September 15,2010, Avista Corporation dba Avista Utilities (Company) fied an
Application with the Commission seeking authority to revise its Schedule 59, Residential and
Farm Energy Rate Adjustment. More specifically, the Company proposes an adjustment to the
Residential Exchange Program (REP) credit from the curently approved 0.289it/kWh to
0.147it/kWh, or a decrease to the credit of 49%. The REP provides a share of the benefits of the
federal Columbia River power system to the customers of the six investor-owned utilties in the
Pacific Northwest. Avista applies the benefits it receives, which usually fluctuate anually, to
STAFF COMMENTS 1 OCTOBER 21,2010
customers as a credit on their monthly electric bilL. The Company requests that the rates become
effective November 1, 2010.
Avista's Application states that the current 0.289it/kWh REP credit, to pass through
residential exchange program benefits, was approved effective August 1,2009. That REP credit
resulted from a settlement agreement with the Bonnevile Power Administration (BPA) and was
based on two years of assumed payments from BP A for their 2009 and 201 o fiscal years, as well
as an amount from settlement of an outstanding Deemer Account.
Avista maintains that the current REP credit was designed to pass through the total of the
2009 and 2010 benefits over a period of 15 months, August 1, 2009 through October 31, 2010.
The proposed REP credit ofO.147it/kWh would replace the current REP credit of0.289it/kWh
and is designed to pass through the amount of expected benefits from BP A for their 2011 fiscal
year over a refund period of 12 months, November 1,2010 through October 31, 2011.
The proposed REP credit ofO.l47it/kWh would apply to residential and small far
customers served under Schedules 1, 12,22,32, and 48. For a customer using 1,000 kWh per
month, the proposed, lower rate credit would result in a monthly increase of $1.42 per month, or
1.65%. The actual increase wil vary based on customer usage.
The Application states thatthe proposed REP credit wil have no effect on Avista's net
income. The proposed rate credit would, however, result in an increase of approximately $1.7
milion to Idaho electric revenue, since a lesser amount of benefits wil be passed through to
customers.
STAFF ANALYSIS
The Company submitted workpapers supporting its calculation of the proposed
0.l47it/kWh REP credit. This fiing reflects estimated payments for the 2011 fiscal year. The
total benefit amount applicable to Idaho customers is approximately $1.7 milion.
The REP calculation stars with the benefit amount of $1 ,792,832 applicable to Idaho
customers. Avista adjusted this amount to include: (1) the over-refunded balance at the end of the
existing rate (October 31, 2010) and (2) the revenue conversion factor of 0.995502, making the
total amount of REP credit $1,800,933. The Company"s projected energy usage is 1,228,796,000
kilowatt-hours for all qualifying residential and small far customers during the period of
November 1, 2010 to October 31, 2011 ¡ The total credit amount is divided by the projected
STAFF COMMENTS 2 OCTOBER 21,2010
energy used to obtain the proposed credit amount ofO.147it/kWh. Staff believes the proposed
credit amount ofO.147it/kWh has been correctly computed by Avista. The Company has issued
an individual notice to all residential and small farm customers.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the new tariff rate of 0.147 it/k Wh
effective November 1,2010 to timely "pass-through" the REP credits received from BPA to
Avista's customers.
1sTRespectfully submitted this ;) - day of October 2010.
t!:.Q. a. ~AI'lKrist' e A. Sasser
Deputy Attorney General
Technical Staff: T.J. Golo
i: umisc:commentsavue 1 O.4kstj comments.doc
STAFF COMMENTS 3 OCTOBER 21,2010
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 21sT DAY OF OCTOBER 2010,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. AVU-E-IO-04, BY E-MAILING AND MAILING A COPY THEREOF, POSTAGE
PREPAID, TO THE FOLLOWING:
DAVID J MEYER
VP & CHIEF COUNSEL
A VISTA CORPORATION
PO BOX 3727
SPOKANE WA 99220-3727
E-MAIL: david.meyer(iavistacorp.com
KELL YO NORWOOD
VP STATE & FED REG
A VISTA CORPORATION
PO BOX 3727
SPOKANE WA 99220-3727
E-MAIL: kelly.norwood(iavistacorp.com
l~.\(~
SECRETARY
CERTIFICATE OF SERVICE