20110818notice_of_application_order_no_32328.pdf

Office of the Secretary
Service Date
August 18,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN TIlE MATTER OF THE POWER COST )
ADJUSTMENT (PCA)ANNUAL RATE )CASE NO.AVU-E-ll-03
ADJUSTMENT FILING OF AVISTA )
CORPORATION )NOTICE OF APPLICATION
)
)NOTICE OF
)MODIFIED PROCEDURE
)
_________________________________
)ORDER NO.32328
On July 28,2011,Avista Corporation dba Avista Utilities filed its annual Power Cost
Adjustment (PCA)Application.Avista requests an Order approving an overall reduction in its
PCA surcharge of 5.99%with a proposed effective date of October 1,2011.Application at 4.
The Company requests that its Application be processed by Modified Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Avista’s PCA mechanism is used to track
changes in revenues and costs associated with variations in hydroelectric generation,secondary
prices,thermal fuel costs,and changes in power contract revenues and expenses.The
Company’s existing PCA methodology and method of recovery were approved in 2007 in Case
No.AVU-E-07-01 (Order No.30361).In that case,the Commission approved a change in the
PCA methodology from a trigger and cap mechanism to a single annual PCA rate adjustment
filing requirement.The Commission also approved a change in the method of PCA deferral
recovery from a uniform percentage basis to a uniform cents per kWh basis.
YOU ARE FURTHER NOTIFIED that the proposed 0.0720/kWh PCA surcharge
will replace an existing 0.5320/kWh surcharge,for a decrease of 0.4600/kWh (or 5.99%).The
proposed surcharge is designed to recover power costs deferred by the Company for the period
of July 1,2010 through June 30,2011,as well as the unrecovered balance related to the July 1,
2009 through June 30,2010 deferral period,and interest during the recovery period of October 1,
2011 through September 30,2012.
YOU ARE FURTHER NOTIFIED that when calculating power supply expenses,the
Company noted that higher hydro generation decreased power supply expenses during the
deferral period.However,the hydro-related decrease was offset by increases associated with the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32328 1
Lancaster plant’s fixed-cost,thermal fuel costs at Coistrip and Kettle Falls.and the effect of
declining power prices.’
YOU ARE FURTHER NOTIFIED that the actual percentage decrease will vary by
rate schedule as shown below.
Customer Group
(Schedule)Percentage Decrease
Residential (Schedule 1)-5.19%
General Service (Schedules 11,12)-4.49%
Large General Service (Schedules 21.22 )-5.73%
Extra Large General Service (Schedule 25)-8.03%
Clearwater (Schedule 25P)-8.80%
Pumping Service (Schedules 31,32)-5.26%
Street and Area Lights (Schedules 4 1-49)-1.88%
Under the Company’s proposal,an average residential customer using 956 kWh per month will
experience a decrease in their monthly bill of $4.40.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal evidentiary hearing in this matter and will proceed under
Modified Procedure pursuant to the Commission’s Rules of Procedure 201 through 204,IDAPA
31.01.01.201 through .204.The Commission notes that Modified Procedure (with written
comments)has proven to be an effective means for obtaining public input and participation in
cases of this nature.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission no later
than September 21,2011.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written
comments.Written comments concerning this Application shall be mailed to the Commission
and the parties at the addresses reflected below:
Lancaster costs are currently being recovered through the PCA because the power purchase agreement became
effective after base rates were established in Case No.AVU-E-09-0 I Stipulation and Settlement at 10,approved by
Order No.30856.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32328 2
Commission Secretary Kelly 0.Norwood
Idaho Public Utilities Commission Vice President State and Federal Regulation
P0 Box 83720 Avista Corporation
Boise,ID 83720-0074 1411 E.Mission Avenue
Spokane,WA 99220
Street Address for Express Mail:E-mail:ke11y.norwood(davistacorp.com
472 W.Washington Street
Boise,ID 83702-5918 David J.Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
Avista Corporation
1411 E.Mission Avenue
Spokane,WA 99220
E-mail:david,meyer(davistacorp.com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at www.puc.idaho.gov.Click the “Comments and Questions”
icon,and complete the form,using the case number as it appears on the front of this document.
E-mail comments should also be sent to Avista at the addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion.may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application,supporting workpapers 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 other workpapers are
also available on the Commission’s web site at www.puc.idaho.gov by clicking on “File Room”
and then “Electric Cases”
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §61-118,61-119,61-502,and 6 1-503.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 31.01.01 .000,ci seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32328 3
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons wishing to file comments must do so no later than September 21,2011.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2011.
ATTEST:
Je D.Jewell j
Commission Secretary
O:AVU-Ei -O3kk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32328
‘
\JJ\\_j
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
PRESIDENT
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