20110714notice_of_application_order_no_32292.pdf

Office of the Secretary
Service Date
July 14,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NOS.AVU-E-11-01OFAVISTACORPORATIONDBAAVISTA)AVU-G-1 1-01UTILITIESFORAUTHORITYTO)INCREASE ITS RATES AND CHARGES FOR )NOTICE OF APPLICATIONELECTRICANDNATURALGASSERVICE)IN IDAHO )NOTICE OF
)INTERVENTION DEADLINE
)
_______________________________
)ORDER NO.32292
On July 5,2011,Avista Corporation dba Avista Utilities filed an Application seeking
authority to increase the Company’s general rates for electric and natural gas service in Idaho by
averages of 3.7%and 2.7%,respectively.If approved,the Company’s revenues for electric
based rates would increase by $9 million annually.Company revenues for natural gas would
increase by $1.9 million annually.The Company requests an effective date of August 5,2011,
for its proposed electric and natural gas rate increases.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Avista is a public utility primarily engaged in
the generation,transmission and distribution of electric power and the distribution of natural gas
in portions of eastern and central Washington and northern Idaho.as well as distribution of
natural gas in northeast and southwest Oregon.The Company’s existing Idaho rates and charges
for electric and gas service were approved by the Commission on September 21,2010,and
became effective on October 1,2010.Order No.32070.
YOU ARE FURTHER NOTIFIED that the Company’s Application maintains that its
proposed revenue increases are driven primarily by an increase in net plant investment (including
return on investment,depreciation and taxes,and offset by the tax benefit of interest),increases
in distribution,operation and maintenance (O&M),and administrative and general (A&G)
expenses,partially offset by a reduction in net power supply and transmission expenditures.
Application at 3-4.
YOU ARE FURTHER NOTIFIED that evidence in support of the Company’s need
for a rate increase for electric and natural gas is based on a 12-month test year ending December
31,2010.Id.at 4.The Company is requesting an overall rate of return of 8.49%with a
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32292
proposed 10.9%return on equity.Id.at 7.Avista asserts that it will notify each customer of the
proposed rate increases through a bill stuffer during a billing cycle and by issuing a news release.
A.Electric Service
YOU ARE FURTHER NOTIFIED that the Company contends that approximately
90%of the revenue requirement requested in this case is due to an increase in net plant
investment.The Company maintains that it experienced an increase of approximately $21
million in net plant rate base for the Idaho jurisdiction.Morris Direct at 17.The remaining 10%
is due to increases in O&M and A&G expenses.
YOU ARE FURTHER NOTIFIED that the proposed increase for a residential
customer using an average of 956 kilowatt-hours (kWh)per month is $3.06 per month,or a 3.7%
increase in their electric bill.This includes a Company-proposed increase in the basic/customer
charge from $5.00 to $5.50 per month.Ehrbar Direct at 5.The Company is not proposing any
changes to the present rate structures within its electric schedules.Id.at 6.
B.Gas Service
YOU ARE FURTHER NOTIFIED that the Company asserts that its proposed
increase in natural gas rates is primarily driven by changes in various operating cost components.
Approximately two-thirds of the increase is due to O&M and A&G expenditures,such as
increased costs in employee benefits.The remaining one-third increase is a result of net plant
investment,due to additional Company investment in underground storage facilities,distribution
and general plant.Morris Direct at 18.The proposed increase for a residential customer using
an average of 62 therms of gas per month would be $2.15 per month,or a 3.5%increase in their
gas bill.As part of this increase,the Company is proposing an increase in the monthly customer
charge from $4.00 to $4.50 per month.Ehrbar Direct at 7.The Company is not proposing any
changes to the present rate structures within its gas service schedules.Id.at 32.
The proposed percentage increases by rate schedules for electric and natural gas
service are reflected in the tables below.
Proposed Electric Increase by Percentage
Residential (Sch.1)3.6%
Commercial (Sch.11)3.5%
Large Commercial (Sch.21)3.5%
Industrial (Sch.25)3.4%
Clearwater Paper (Sch.25P)3.3%
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32292 2
Proposed Natural Gas Increase by Percentage
Residential &General Service (Sch.101)3.5%
Large Commercial (Sch.111)0.1%
Interruptible Service (Sch.131)1.0%
YOU ARE FURTHER NOTIFIED that Avista’s intrastate revenue requirement,and
every component of it,both rate base and expense,are at issue.The Commission may grant,
deny,or modify the revenue requirement requested and may find a revenue requirement different
from that proposed by any party is just,fair and reasonable.IDAPA 3 1.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Avista retail
customers,both recurring and non-recurring,including those of special contract customers,are at
issue,and every component of every existing and proposed rate and charge is at issue.The
Commission may approve,reject or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just,fair and reasonable.
IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve,reject or
modify existing or proposed relationships between and among rates and charges within,between
or among customer classes or rate groupings and may approve,reject or modify existing or
proposed relationships among and between customer classes or rate groupings.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may abolish,reduce or
create rate blocks or categories of rates and charges,abolish,create or reduce components of
rates and charges,abolish,reduce or create customer classes or rate groupings,and abolish,
reduce or create absolute or relative differences among and between existing classes or rate
groupings of customers.IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the tariffs,practices,rules and regulations,
service,instrumentalities,equipment,facilities,classifications,and customer relations of the
utility are at issue,and the Commission may address any of them in its order.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA).Persons needing the help of a sign language interpreter or other
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NOTICE OF INTERVENTION DEADLINE
ORDER NO.32292 3
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5)working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE,IDAHO 83 720-0074
[phone] (Telephone)
[phone] (FAX)
E-mail:secretary(äpuc .idaho .gov
SUSPENSION
After reviewing the Application in this matter,the Commission finds it will be unable
to consider the Application before the proposed effective date of August 5,2011,because of
other demands on the Commission’s time and the complexity of the issues.The Commission
further finds that the Application is of sufficient importance to require the Commission’s
investigation of the reasonableness of the proposed increase in rates and charges.Consequently,
the proposed rate changes subject to this Application are suspended for a period of thirty (30)
days plus five (5)months from the proposed effective date of August 5,2011.Idaho Code §
6 1-622 and 61-623.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission’s web site at www.puc.idaho.gov by clicking
on “File Room”and then “Electric Cases”and/or “Gas Cases.”
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §61-502,61-622,and 61-623.The Commission may enter any final Order
consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 etseq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32292 4
Petition to Intervene with the Commission pursuant to this Commission’s Rules of Procedure
72 and 73,IDAPA 31.01.01.072 and -.073.Persons intending to participate at the hearing must
file a Petition to Intervene no later than fourteen (14)days from the service date of this
Order.Persons desiring to present their views without parties’rights of participation and cross-
examination are not required to intervene and may present their comments without prior
notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed.The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued,the Staff
counsel will convene an informal prehearing conference for the purpose of discussing a schedule
to process this case,the service of discovery,and other issues raised by the parties.Parties
desiring to participate by phone should contact Staff counsel for teleconference instructions,
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Avista’s representatives in this matter:
David J.Meyer
Vice President &Chief Counsel,Reg.&Gov’t Affairs
Avista Corporation
P0 Box 3727
1411 East Mission Avenue
Spokane,WA 99220-3 727
E-mail:david.meyer@avi stacorp.corn
Kelly Norwood
Vice President —State &Federal Regulation
Avista Utilities
P0 Box 3727
1411 East Mission Avenue
Spokane,WA 99220-3727
E-mail:kelIy.norwood(avistacorp.com
ORDER
IT IS HEREBY ORDERED that the proposed increase in rates and charges submitted
by Avista is suspended for a period of thirty (30)days plus five (5)months from the proposed
effective date of August 5,2011,or until such time as the Commission issues an Order
accepting,rejecting,or modifying the proposed schedules in this matter.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32292 5
IT IS FURTHER ORDERED that persons desiring to intervene in this matter for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
with the Commission no later than fourteen (14)days from the service date of this Order.
IT IS FURTHER ORDERED that discovery is available in these consolidated cases
pursuant to the Commission’s Rules of Procedure,IDAPA 31.01.01.221-234.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of July 201 1.
ATTEST:
Jeath D.Jewell 71
COmmission Secretary
O:AVU-E-I I-OIAVU-G-I I-Oiks
NOTICE OF APPLICATION
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ORDER NO.32292
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MACK A.DFORI5CMMISSIONER
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MARSHA H.SMITH,COMMISSIONER
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