20120307notice_of_application_order_no_32477.pdf

Office of the Secretary
Service Date
March 7,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION REQUESTING )CASE NOS.AVU-E-12-03
AUTHORITY TO CHANGE THE )AVU-G-12-02
DEPRECIATION METHOD OF ITS )
TRANSPORTATION EQUIPMENT )NOTICE OF APPLICATION
)
)NOTICE OF
)MODIFIED PROCEDURE
)
___________________________________
ORDER NO.32477
On February 17,2012,Avista Corporation (hereinafter “Avista”or “Company”)
submitted dual Applications seeking a Commission Order authorizing a proposed change in the
depreciation method applied to its transportation equipment.The Company proposes April 1,
2012,as an effective date for the proposed change.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that in its Application Avista states that the last
modifications to the Company’s depreciation rates in Idaho occurred on January 1,2008,
pursuant to Commission Order No.30498,dated February 6,2008,Case Nos.AVU-E-07-1 1 and
AVU-G-07-03.The Company also notes that prior depreciation studies and depreciation rate
modifications have not included changes to the mileage-based depreciation rates applicable to
transportation equipment.Avista states that the current mileage-based rates have been in effect
for over 50 years.
YOU ARE FURTHER NOTIFIED that Avista is proposing to switch the depreciation
method applicable to its transportation equipment from mileage-based depreciation rates to
straight-line depreciation rates because straight-line depreciation for transportation equipment is
the standard method being used by other utilities.
YOU ARE FURTHER NOTIFIED that Avista believes that the change is necessary
because it has contracted for the installation of a new computer software system to calculate
depreciation and that this new system would have to be modified in order to accommodate
mileage-based depreciation rates.Avista states that this modification would increase the cost of
the new system and may delay its implementation.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32477 1
YOU ARE FURTHER NOTIFIED that Avista has determined that straight-line
depreciation rates will produce approximately the same amount of depreciation expense on an
annual basis as the current mileage-based rates.
YOU ARE FURTHER NOTIFIED that Avista included Attachment A to its
Application delineating the various categories of transportation equipment and the determination
of the proposed straight-line depreciation rates for the various categories.
YOU ARE FURTHER NOTIFIED that Avista requests that the implementation of
the proposed straight-line depreciation rate be allowed once the new depreciation software
system becomes operational.The Company estimates that the new software system will become
operational in July 2012.The Company proposes an April 1,2012 effective date so that the
Company can proceed with the design and implementation of the new depreciation software
system.
YOU ARE FURTHER NOTIFIED that any proposed changes in the straight-line
rates will be reflected in the Company’s next general rate case filing,or other filing that will
request approval of the new rates that result from the depreciation study.
YOU ARE FURTHER NOTIFIED that Avista has made similar filings with the
Washington Utilities and Transportation Commission (WUTC)and the Oregon Public Utility
Commission.Avista states that it is important that the Company be allowed to maintain
uniformity in accounting across its service territory and regulatory jurisdictions.
YOU ARE FURTHER NOTIFIED that Avista requested that this matter be processed
through Modified Procedure.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company’s
filings in Case Nos.AVU-E-12-03 and AVU-G-12-02 and finds that the public interest may not
require a formal hearing in this matter and will proceed under Modified Procedure pursuant to
Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules of Procedure,IDAPA
3 1.01.01.201 through .204.The Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position
concerning Avista’s Applications may file a written comment in support or opposition with the
Commission.The comment must contain a statement of reasons supporting the comment.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32477 2
Persons desiring a hearing must specifically request a hearing in their written comments.
Written comments concerning Avista’s Applications shall be filed with the Commission within
twenty-one (21)days of the service date of this Order.Written comments concerning this
filing should be mailed to the Commission and the Company at the addresses written below:
Commission Secretary David J.Meyer
Idaho Public Utilities Commission Vice President and Chief Counsel of
P0 Box 83720 Regulatory and Government Affairs
Boise,ID 83720-0074 Avista Corporation
1411 E.Mission Avenue
Street Address for Express Mail:Spokane,WA 99220
E-mail:david .meyer(avistacorp.com
472 W.Washington Street
Boise,ID 83702-59 18 Kelly 0.Norwood
Vice President
State and Federal Regulation
Avista Corporation
1411 E,Mission Avenue
Spokane,WA 99220
E-mail:kel [e-mail]
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 comment form,using the case number as it appears on the front of this
document.These comments must also be sent to Avista at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that Avista’s Application can be viewed at
www.puc.idaho.gov by clicking on “File Room”and “Electric Cases”or “Gas Cases.”
YOU ARE FURTHER NOTIFIED that the Idaho Public Utilities Commission has
jurisdiction over the Company,its filing and the issues pertaining to this case pursuant to Title 61
of the Idaho Code.
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 et seq.
ORDER
IT IS HEREBY ORDERED that the Application be processed under Modified
Procedure,Persons interested in submitting written comments regarding this case or protesting
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32477 3
the use of Modified Procedure should do so no later than 21 days from the service date of this
Order.
DONE by Order of the idaho Public Utilities Commission at Boise,Idaho this /
day of March 2012.
ATTEST:
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MARSHA H.SMITH,COMMISSIONER
I /1/
Jean D.Jewe11
Commission Secretary
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32477
PAUL KJELL’AER,PRESIDENT
MACK A,REDFORD,COMMISSIONER
4