20120731Application.pdf

Avista Corp. Al
1411 East Mission P.O. Box 3727 nVISTA
Spokane. Washington 99220-0500 RECF\/F p Telephone [phone] Corp.
Toll Free 800-727-9170 2I2JUL31 M1tO:148
FILED ELECTRONICALLY AND VIA OVERNIW4E MAIL L:
UTILITIES L110MMIF8810it
July 30, 2012
State of Idaho
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702-5983
Attention: Ms. Jean Jewell, Secretary
Case No. AVU-E-12-O(e
Power Cost Adjustment (PCA) Annual Filing of Avista Corporation
Enclosed for filing with the Commission 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 prefiled testimony and exhibits. Also enclosed are three copies of supporting
workpapers and documentation, as well as a set of Monthly PCA reports for the months of July
2011 through June 2012. A certificate of service, three copies of a customer notice, and three
copies of a press release are also enclosed. 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, 2011 through June 30, 2012, and approving a PCA rebate of
0.0900 per kilowatt-hour to be effective October 1, 2012. Under the Company's proposal, the
PCA rate for all customers, including residential customers, would decrease from a surcharge of
0.0720 per kilowatt-hour to a rebate of 0.0900 per kilowatt-hour, or a decrease of 0.1 620 per
kilowatt-hour. Since PCA rate adjustments are spread on a uniform cents per kilowatt-hour
basis, the resulting percentage decreases vary by rate schedule. The overall decrease is 2.17%.
For an average residential customer using 939 kilowatt-hours per month, the monthly decrease
will be $1.52. Under present rates, a residential bill for 939 kilowatt-hours amounts to $80.56.
With the proposed rebate in place the monthly bill would be $79.04, or 1.89% lower than the bill
under present rates. Note that the bill impact above does not include the impact of either the
Company's proposed rate reduction to Schedule 91 (Energy Efficiency Rider Adjustment), or the
increase due to the expiration of Schedule 99 (Deferred State Income Tax Adjustment). Those
rate adjustments would also go into effect on October 1, 2012, under the Company's proposal.
Please note that Avista 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, Avista is submitting a separate electronic CD containing the electronic form of the
CONFIDENTIAL supporting documents, in compliance with Rule 067.02.b.
Please direct any questions regarding this filing to Ron McKenzie at [phone].
Sincerely,
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 Filing 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
Mary Lewallen
Clearwater Paper
601 W. Riverside Avenue
Suite 1100
Spokane, WA 99201
[e-mail]
(Excluding Confidential Information)
Dated at Spokane, Washington this 30th day of July 2012.
Patrick Ehrbar
Manager, Rates & Tariffs
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David J. Meyer
Vice President and Chief Counsel for
Regulatory and Governmental Affairs
Avista Corporation
1411 E. Mission Avenue
P. 0. Box 3727
Spokane, Washington 99220
Phone: [phone], Fax: [phone]
RECEIVED
212JIJL 31 AM 101- 8
r -ALj -

L.r; iLl r,iLL'
I 1 .0 m
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
10 IN THE MATTER OF THE POWER COST )
11 ADJUSTMENT (PCA) ANNUAL RATE ) CASE NO. AVU-E-12-_
12 ADJUSTMENT FILING OF AVISTA ) APPLICATION OF AVISTA
13 CORPORATION ) CORPORATION
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15 I. INTRODUCTION
16 Avista Corporation, doing business as Avista Utilities (hereinafter Avista or Company),
17 at 1411 East Mission Avenue, Spokane, Washington, respectfully files its Power Cost
18 Adjustment (PCA) annual rate adjustment filing in the above referenced case. The Company
19 requests the Commission issue an order approving the level of power costs deferred in the rebate
20 direction for the period July 1, 2011 through June 30, 2012, and approving a PCA rebate of
21 0.0900 per kilowatt-hour to be effective October 1, 2012. The Company requests that this filing
22 be processed under the Commission's Modified Procedure Rules.
23 Communications in reference to this Application should be addressed to:
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kPA
Kelly 0. Norwood
Vice President
State and Federal Regulation
Avista Corporation
1411 E. Mission Avenue
Spokane, Washington 99220
Phone: [phone]
Fax: [phone]
David J. Meyer
Vice President and Chief Counsel for
Regulatory and Governmental Affairs
Avista Corporation
1411 E. Mission Avenue
Spokane, Washington 99220
Phone: [phone]
Fax: [phone]
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 1

I II. BACKGROUND

2 Avista's PCA is used to track changes in revenues and costs associated with variations in

3 hydroelectric generation, secondary prices, thermal fuel costs, and changes in power contract
4 revenues and expenses. Avista's existing PCA methodology and method of recovery were
5 approved in Case No. AVU-E-07-01 by Order No. 30361 dated June 29, 2007. In that case the
6 Commission approved a change in the PCA methodology from a trigger and cap mechanism to a
7 single annual PCA rate adjustment filing requirement. The Commission approved the following
8 procedural schedule for administering the annual PCA filings:

9 August 1 Company filing for prior July - June deferral period

10 September 1 Review and comments by Staff and other interested parties

11 October 1 Commission Order and effective date of PCA rate adjustment

12 The Commission also approved a change in the method of PCA deferral recovery from a

13 uniform percentage basis to a uniform cents per kilowatt-hour basis effective with the October 1,
14 2007 PCA rate change.

15 The existing PCA surcharge was made effective on October 1, 2011. On July 28, 2011,
16 Avista filed its annual PCA report for the period July 1, 2010 through June 30, 2011 and
17 requested a PCA surcharge of 0.0720 per kilowatt-hour effective October 1, 2011. The
18 Commission approved that proposal in Case No. AVU-E-11-03, by Order No. 32375, dated
19 September 30, 2011.
20 III. DEFERRALS - JULY 1, 2011 THROUGH JUNE 30, 2012

21 The amount of power cost deferrals for the period July 1, 2011 through June 30, 2012 is
22 shown below, as well as interest for the same period. Mr. Johnson's testimony provides an
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 2
1 explanation of the factors causing the deferral entries for the period. Mr. McKenzie' s testimony
2 addresses the interest amount.
3 Deferrals (July 2011 - June 2012) $(3,170,099)
4 Interest (21.812)
5 Balance at June 30, 2012 $(3.191,911)
6 Monthly reports have been filed with the Commission regarding actual PCA deferral
7 entries to date. An additional copy of those reports for the months of July 2011 through June
8 2012 have been included with this filing and have also been provided to Clearwater Paper
9 Corporation.
10 IV. PROPOSED REBATE TO BE EFFECTIVE OCTOBER 1, 2012
11 The Company is proposing a uniform cents per kilowatt-hour PCA rebate of 0.0900 to be
12 effective October 1, 2012. Attached as Exhibit "A" is a copy of the proposed tariff, Schedule 66
13 (Fourteenth Revision), which contains the proposed PCA rebate rate. Also included in Exhibit
14 "A" is a tariff sheet that shows the proposed changes to Schedule 66 (Thirteenth Revision) by the
15 use of strikeouts and underlining. Page 1 of Mr. McKenzie's Exhibit No. (RLM-1) shows
16 the calculation of the proposed rebate. The proposed rebate is designed to pass through the
17 deferrals for the period July 1, 2011 through June 30, 2012, as well as the unrecovered balance
18 related to the July 1, 2010 through June 30, 2011 deferral period, and interest during the recovery
19 period of October 1, 2012 through September 30, 2013.
20 Since PCA rate changes are spread on a uniform cents per kilowatt-hour basis, the
21 resulting percentage decreases vary by rate schedule. Page 1 of Mr. McKenzie's Exhibit No.
22 (RLM-1) shows the effect of the proposed PCA rebate by rate schedule. The proposed rebate is
23 0.0900 per kilowatt-hour, which is 0.1620 per kilowatt-hour less than the existing surcharge of
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 3

1 0.0720 per kilowatt-hour. Column (f) on page 1 of Exhibit No. (RLM-1) shows the

2 percentage decreases by rate schedule. The overall decrease is 2.17%.

3 Under the Company's proposal, the PCA rate for all customers, including residential
4 customers will decrease from a 0.0720 per kilowatt-hour surcharge to a 0.0900 per kilowatt-hour
5 rebate, or a decrease of 0.1620 per kilowatt-hour. Residential customers using an average of 939
6 kilowatt-hours per month would see their monthly bills decrease from $80.56 to $79.04, a
7 decrease of $1.52 per month, or 1.89%. These impacts do not include other proposed rate
8 changes to become effective on October 1, 2012 (Schedule 91 reduction and Schedule 99

9 expiration).

10 V. REQUEST FOR RELIEF

11 The Company requests the Commission issue an order approving the level of power costs

12 deferred in the rebate direction for the period July 1, 2011 through June 30, 2012, and approving
13 a PCA rebate of 0.0900 per kilowatt-hour to be effective October 1, 2012. The Company
14 requests that the matter be processed under the Commission's Modified Procedure rules through
15 the use of written comments.
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17 Dated at Spokane, Washington this 301h day of July 2012.
18

19 AVISTA CORPORATION
BY4 J

22 Kelly Norwood

23 Vice President

24 State and Federal Regulation
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AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4
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VERIFICATION
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 Utilities 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.
741i /b4V
SIGNED AND SWORN to before me this 30th day of July 2012, by Kelly Norwood.
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AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING
PAGE 5
Case No. AVU-E-12-
Exhibit "A"
Thirteenth Revision Sheet 66
Canceling
I.P.U.C. No.28 Twelfth Revision Sheet 66 1 66
AVISTA CORPORATION
d/b/a Avista Utilities
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 0.072 per kilowatt-hour in all blocks of these rate schedules.
decreased 0.090
Flat rate charges for Company-owned or Customer-owned Street Lighting and
Area Lighting Service, Schedules 41-49, are to be increased by 0.072 per kilowatt-
hour times the monthly usages of the various light sizes and types on these schedules.
decreased 0.090
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 27, 2011 Effective October 1, 201

Issued by Avista Utilities

By Kelly 0. Norwood - Vice President, State & Federal Regulation
Fourteenth Revision Sheet 66
Canceling
I P U C No 28 Thirteenth Revision Sheet 66 66
AVISTA CORPORATION
dibla Avista Utilities
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 decreased by 0.090 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 decreased by 0.0900 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.
July
By Kelly 0. Norwood - Vice President, State & Federal Regulation