20130207Motion for Approval-Settlement Stipulation.pdf

Avista Corp.
1411 East Mission P.O. Box 3727 AVITSM Spokane. Washington 99220-0500
Telephone [phone] Corp.
Toll Free 800-727-9170 RE CE I v p.
FILED ELECTRONICALLY AND VIA OVERNIGHT MAIL 1113"'FEB -? PH 2:15
, 4r. • 1E* JUi CuMM 1•SS.iOf•.
February 6, 2013
Jean D. Jewell
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington Street
Boise, ID 83702
Re: Case Nos. AVU-E-12-08 and AVU-G-12-07
Avista's Motion and Stipulation and Settlement
Enclosed for filing with the Commission in the above-referenced docket are the original
and seven copies of Avista's Motion and Stipulation and Settlement, dated February 6,
2013.
Certain parties to the Stipulation intend to file testimony in support of the Stipulation, on
or before February 22, 2013.
Sincerely,
Dav7JMe/ye/r
Vice President, Chief Counsel for Regulatory
& Governmental Affairs
Enclosures
c: Service List
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this 6th day of February, 2013, served the Motion and
Stipulation and Settlement in Docket No. AVU-E-12-08 and AVU-G-12-07, upon the
following parties, by mailing a copy thereof, properly addressed with postage prepaid
to:
Jean D Jewell, Secretary Brad M. Purdy
Idaho Public Utilities Commission Attorney at Law
Statehouse 2019 N 17th Street
Boise, ID 83720-5983 Boise, ID 83720
[e-mail] bmpurdychotmail.com
Karl Klein Peter J. Richardson
Weldon Stutzman Greg M. Adams
Deputy Attorneys General Richardson & O'Leary PLLC
Idaho Public Utilities Commission 515 N. 27th Street
472 W. Washington P0 Box 7218
Boise, ID 83702-0659 Boise, ID 83702
karI.kleinpuc. idaho.qov peterrichardsonandolearv.com
WeIdon.stutzmancpuc. idaho.gov qrerichardsondolearv.com
Mary Lewallen Dean J. Miller
Clearwater Paper McDevitt & Miller, LLP
601 W. Riverside Avenue 420 W. Bannock St.
Suite 1100 P0 Box 2564-83701
Spokane, WA 99201 Boise, ID 83701-2564
mary. lewallen(clearwaterpaper.com ioetmcdevitt-miller.com
Scott Atkison Benjamin J. Otto
Idaho Forest Products Idaho Conservation League
171 Highway 95 N. 710 N. 6th St.
Grangeville, ID 83530 Boise, ID 83702
scottacidahoforestqroup. corn botto(idahoconservation.org
Larry A. Crowley Dr. Don Reading
The Energy Strategies Institute, Inc. 6070 Hill Road
5549 South Cliffsedge Avenue Boise, Idaho
Boise, Idaho 83716 dread inpmindsprinq.com
crowleyaaol.com
Ken Miller
Clean Energy Program Director
Snake River Alliance
Boise, ID
kmiIlercsnakeriveraIIiance.orq
Paul Kimball
Sr. Regulatory Analyst
RECEIVED
David J. Meyer, Esq.
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
Avista Corporation
1411 E. Mission Avenue
P.O. Box 3727
Spokane, Washington 99220
Phone: [phone], Fax: [phone]
Karl Klein
Weldon Stutzman
Deputy Attorneys General
Idaho Public Utilities Commission Staff
P.O. Box 83720
Boise, ID 83720-0074
Phone: [phone], Fax: [phone]
2013 FEB -7 PM 2: 15
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.JT1 1 IT!ES Th-4Mlsso
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION DBA ) CASE NOS. AVU-E-12-08
AVISTA UTILITIES FOR AUTHORITY TO ) AVIJ-G-12-07
INCREASE ITS RATES AND CHARGES )
FOR ELECTRIC AND NATURAL GAS ) MOTION FOR APPROVAL OF
SERVICE IN IDAHO ) STIPULATION AND SETTLEMENT
COMES NOW, Avista Corporation ("Avista" or "Company") and the
Commission Staff, and hereby move the Commission for an Order accepting the Settlement
Stipulation filed herewith. RP 56; 272; 274. This Motion is based on the following:
1. On October 11, 2012, Avista filed an Application with the Commission for
authority to increase revenue from electric and natural gas service in Idaho by 4.6% and 7.2%,
respectively. If approved, the Company's revenues for electric base retail rates would have
increased by $11.4 million annually; Company revenues for natural gas service would have
Motion for Approval of Stipulation - AVU-E-12-08 & AVU-G-12-07 Page 1
increased by $4.6 million annually. The Company requested an effective date of April 11, 2013
for its proposed electric and natural gas rate increases. By Order No. 32689, dated December 4,
2012, the Commission suspended the proposed schedules of rates and charges for electric and
natural gas service, until such time as the Commission enters an Order accepting, rejecting or
modifying the Application in this matter.
2.Petitions to intervene in this proceeding were filed by Clearwater Paper
Corporation, Idaho Forest Group, LLC, Community Action Partnership Association of Idaho
("CAPAI"), the Idaho Conservation League and the Snake River Alliance. By various orders,
the Commission granted these interventions. See, IPUC Order Nos. 32678, 32680 and 32687.
3.Settlement conferences were noticed and held in the Commission offices on
January 17 and 24, 2013, and were attended by signatories to this Stipulation; further
discussions ensued.
4.Based on settlement discussions, the Parties whose signatures appear on the
Stipulation have agreed to resolve and settle all of the issues in the case (hereinafter "Parties").'
A copy of the signed Stipulation evidencing that settlement is enclosed as Attachment 1.
5.The Parties recommend that the Commission grant this Motion and approve the
Stipulation in its entirety, without material change or condition, pursuant to RP 274.
6.The Parties respectfully request that the Commission consider the Motion, the
Stipulation, and the pre-filed testimony in support of the Stipulation at the time of the technical
evidentiary hearings to be scheduled in this docket. The Parties request that any such hearings
1 The Community Action Partnership Association of Idaho participated in settlement discussions and is continuing
to review its position with regard to the Settlement, as proposed, and will be filing separate comments and/or
testimony in that regard. The Snake River Alliance, as an intervenor, was provided notice of the settlement
discussions, but did not participate.
Motion for Approval of Stipulation - AVU-E-12-08 & AVU-G-12-07 Page 2
be scheduled so as to allow the implementation of new rates, as per the Stipulation, on April 1,
2013. The testimony in support of the Stipulation will be filed on or before February 22, 2013.
7. As noted in the Stipulation, the Parties agree that the Stipulation is in the public
interest and that all of its terms and conditions are fair, just and reasonable.
NOW, THEREFORE, the Parties respectfully request That the Commission issue orders
in Case Nos. AVU-E-12-08 and AVU-G-12-07:
1.Granting this Motion and accepting the Stipulation (Attachment 1), in its
entirety, without material change or condition, and
2.Authorizing the Company to implement revised tariff schedules designed to
recover the additional annual electric and natural gas revenue from Idaho customers consistent
with the terms of the Stipulation; and
3.Authorizing that revised tariff schedules be made effective April 1, 2013 and
October 1, 2013 consistent with the terms of the Stipulation
.1-I,,
Respectfully submitted this L day of February, 2013.
cz- I Z -'-~ -
IV
David J. Meyer
Attorney for Avista Corporation
Karl Klein
Weldon Stutzman
Deputy Attorneys General
Idaho Public Utilities Commission Staff
Motion for Approval of Stipulation - AVU-E-1 2-08 & AVU-G-12-07 Page 3
be scheduled so as to allow the implementation of new rates, as per the Stipulation, on April 1
2013. The testimony in support of the Stipulation will be filed on or before February 22, 2013.
7. As noted in the Stipulation, the Parties agree that the Stipulation is in the public
interest and that all of its terms and conditions are fair, just and reasonable.
NOW, THEREFORE, the Parties respectfblly request that the Commission issue orders
in Case Nos. AVU-B-12-08 and AVU-0-12-07:
1.Granting this Motion and accepting the Stipulation (Attachment 1), in its
entirety, without material change or condition; and
2.Authorizing the Company to implement revised tariff schedules designed to
recover the additional annual electric and natural gas revenue from Idaho customers consistent
with the terms of the Stipulation; and
3.Authorizing that revised tariff schedules be made effective April 1, 2013 and
October 1, 2013 consistent with the terms of the Stipulation.
Respectfully submitted this day of February, 2013.
David J. Meyer
Attorney for Avista Corporation
KaxKlein
Weldon Stutzman
Deputy Attorneys General
Idaho Public Utilities Commission Staff
Motion for Approval of Stipulation - AVU-E-12-08 & AVU-G-12-07 Page 3
MOTION FOR APPROVAL OF
STIPULATION AND SETTLEMENT
Case Nos. AVU-E-12-08 & AVU-G-12-07
ATTACHMENT 1
David J. Meyer, Esq.
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
Avista Corporation
1411 E. Mission Avenue
P.O. Box 3727
Spokane, Washington 99220
Phone: [phone], Fax: [phone]
Karl Klein
Weldon Stutzman
Deputy Attorneys General
Idaho Public Utilities Commission Staff
P.O. Box 83720
Boise, ID 83720-0074
Phone: [phone], Fax: [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
114 THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION DBA AVISTA
UTILITIES FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES
FOR ELECTRIC AND NATURAL GAS
SERVICE IN IDAHO
)
) CASE NOS. AVU-E-12-08
) AVU-G-12-07
)
)
) STIPULATION AND SETTLEMENT
This Stipulation is entered into by and among Avista Corporation, doing business as
Avista Utilities ("Avista" or "Company"), the Staff of the Idaho Public Utilities Commission
("Staff), Clearwater Paper Corporation ("Clearwater"), Idaho Forest Group, LLC ("Idaho
Forest") and the Idaho Conservation League ("Conservation League")'. These entities are
collectively referred to as the "Parties," and represent several parties in the above-referenced
cases that participated in settlement discussions. The Parties understand this Stipulation is
subject to approval by the Idaho Public Utilities Commission ("IPUC" or the "Commission").
'The Community Action Partnership Association of Idaho ("CAPAL") participated in settlement discussions and is
continuing to review its position with regard to the Settlement, as proposed, and will be filing separate comments
and/or testimony in that regard. The Snake River Alliance, as an intervenor, was provided notice of the settlement
discussions, but did not participate.
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 1
I. INTRODUCTION
1. The terms and conditions of this Stipulation are set forth herein. The Parties agree
that this Stipulation represents a fair, just and reasonable compromise of all the issues raised in
the proceeding and that this Stipulation and its acceptance by the Commission represents a
reasonable resolution of the multiple issues identified in these cases. The Parties, therefore,
recommend that the Commission, in accordance with RP 274, approve the Stipulation and all of
its terms and conditions without material change or condition.
II. BACKGROUND
2.On October 11, 2012, Avista filed an Application with the Commission for
authority to increase revenue from electric and natural gas service in Idaho by 4.6% and 7.2%,
respectively. If approved, the Company's revenues for electric base retail rates would have
increased by $11.4 million annually; Company revenues for natural gas service would have
increased by $4.6 million annually. The Company requested an effective date of April 1, 2013
for its proposed electric and natural gas rate increases. By Order No. 32689, dated December 4,
2012, the Commission suspended the proposed schedules of rates and charges for electric and
natural gas service.
3.Petitions to intervene in this proceeding were filed by Clearwater, Idaho Forest,
CAPAI, the Idaho Conservation League, and the Snake River Alliance. By various orders, the
Commission granted these interventions. See, IPUC Order Nos. 32678, 32680 and 32687.
4.Settlement conferences were noticed and held in the Commission offices on
January 17 and 24, 2013, and were attended by signatories to this Stipulation; further discussions
ensued. Based upon the settlement discussions among the Parties, as a compromise of positions
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 2
in this case, and for other consideration as set forth below, the Parties agree to the following
terms:
III. TERMS OF THE STIPULATION AND SETTLEMENT
5. Overview of Settlement and Revenue Requirement. The Parties agree that Avista
should be allowed to implement revised tariff schedules designed to recover the following
revenue requirement in two steps, as summarized in Attachment A, and below:
Electric
Step 1: April 1, 2013
a. No electric base rate change effective April 1, 2013, instead of the proposed
4.6%, or $ 11.393 million.
Step 2: October 1, 2013
a.Overall electric base rate increase of 3.1% (3.2% in billed rates) or $7.825 million
effective October 1, 2013.
b.Offsets - Apply $3.865 million for rate mitigation purposes (the BPA Parallel
Operation Settlement) , and amortize that offset over 15 months, from October 1,
2013 to December 31, 2014.
C. Net overall bill increase to customers of 1.9% effective October 1, 2013.
Summary of Electric Rate Changes
Billing Rate Net Billing
Change Oflet Rate Change
April 1, 2013 0.0% 0.0% 0.0%
October 1, 2013 3.2% -1.3% 1.9%
2 The BPA Settlement Revenue of $3.865 million represents the Idaho customers' share of $ 12.224 million (system)
for the past use of Avista's transmission system for the period January 2005 through February 2013. In December
2012, Avista and Bonneville reached a settlement that pertains to the use of Avista's transmission system by
Bonneville. Avista and Bonneville each own and operate transmission systems that are interconnected at various
points. Between June 1998 and December 2009, Bonneville integrated four generation projects onto its 115 kV
transmission system in the Walla Walla, Washington area. Bonneville sold transmission capacity to wind projects
totaling 336 MW. The transmission path for these four projects follows a single Bonneville line that has a rated
capacity of only 203 MW. Upon Avista's discovery of this situation, Avista asserted that Bonneville requires the
use of up to 133 MW of parallel capacity support through the Avista system in order to fulfill Bonneville's
transmission service obligations for these wind projects. The Settlement Agreement was intended to resolve the
issue of compensation to Avista for the prior use of its transmission system, as well as provide Bonneville with
continuing cost-effective parallel capacity support in lieu of constructing additional transmission facilities at this
point in time. Avista anticipates FERC approval of the Settlement in February 2013, after which Avista will bill
Bonneville.
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 3
Natural Gas
Step 1: April 1, 2013
a. Overall natural gas base rate increase of 4.9% (5.0% in billed rates) or $3.115
million, instead of the proposed 7.2%, or $4.561 million, effective April 1, 2013.
Step 2: October 1. 2013
a. Overall natural gas base rate increase of 2.0% (2.0% in billed rates) or $1.330
million effective October 1, 2013.
b Offsets - Apply $1.550 million PGA deferral credit balance from 2012 PGA 3 to
partially offset the base rate increase, amortized over 15 months, October 1, 2013
to December 31, 2014.
C. Net overall bill impact to customers of 0.3% effective October 1, 2013.
Summary of Natural Gas Rate Changes
Billing Rate Net Billing
Change Oflet Rate Change
April l,2013 5.0% 0.0% 5.0%
October 1 2013 2.0%
6. Cost of Capital. The Settling Parties agree to a 9.8 percent return on equity, with
a 50.0 percent common equity ratio, and adopt the capital structure and resulting rate of return as
set forth below:
Capital - ProForma ProForma
Component Structure Cost Weighted Cost
Total Debt 50.00% 6.01% 3.01%
Common Equity 50.00% 9.80% 4.90%
Total 100.00% 7.91%
In Docket A\TU G 12 05 the Commission approved Staff's proposal that approximately $1.55 million in un
refunded credit balances be held back due to the Company's filing of a "Notice of Intent to File a General Rate
Case." The Commission stated in Order 32651, on page 6, that "the resulting $1.55 million un-refunded credit
balance will help mitigate potential rate increases and provide rate stability for customers."
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 4
A. ELECTRIC
7. Overview of Electric Revenue Requirement (April 1, 2013). Below is a summary
table and descriptions of the electric revenue requirement components agreed to by the Parties
for April 1, 2013:
SUMMARY TABLE OF ADJUSTMENTS TO ELECTRIC REVENUE REQUIREMENT
EFFECTIVE APRIL 1, 2013
000s of Dollars
Revenue
Requirement Rate Base
Amount as Filed: $ 11,393 $ 639,030
Adjustments:
a.) Cost of Capital $ (5,517)
b.) Remove 2013 Capital Additions (Delay to October 1, 2013) $ (1,117) $ C
c.) Remove 2013 Expenses: Delay Recovery to October 1, 2013 Rate Change
i.Major Generation O&M $ (926)
ii.Information Services & Technology $ (318)
iii.CS2 Levelized Return $ (38)
iv.Non-Exec Labor $ (426)
d.) Remove 2013 Property Tax Expense $ (428)
e.) Remove Officer Incentive and CPI escalation $ (187)
L) Two-Year Amortization of Reardan $ 878
g.) Include Palouse Wind in PCA until in base rates in 2015 (90 0/o/100/o sharing) $ (3,139)
h.) Miscellaneouse Adjustments: Two-Year Amortization of Booz Consulting
costs, Oasis Training, Abandoned Projects & Depreciation Study expense $ (175)
Adjusted Amounts Effective April 1, 2013 $ - $ 637
a.Cost of Capital. As previously described (see Paragraph 6 above).
b.Remove 2013 Capital Additions. Reflects total depreciation expense and rate
base, net of accumulated depreciation and accumulated deferred income tax,
as of year-end December 31, 2012. Moves 2013 capital additions to October
1, 2013 rate change.
c.Remove 2013 Expenses: Delay Recovery to October 1, 2013 Rate Change.
i. Major Generation O&M. Removes the 2013 incremental non-
labor generation plant operation and maintenance (O&M) expense
related to the Company's thermal generation plant at Kettle Falls,
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 5
and its hydro generation plants, to be included in the October 1,
2013 rate change.
ii.Information Services & Technology. Removes the 2013
incremental information service and technology expenses, related
mainly to the Company's replacement of the Company's Customer
Service Information System, and increased costs to support various
business processes, application support, additional security
requirements, annual contractual agreements and maintenance and
license fees, to be included in the October 1, 2013 rate change.
iii.CS2 Levelized Return. Removes the 2013 incremental
amortization of the deferred levelized return related to the 10-year
deferral of return on the Coyote Springs 2 (CS2) investment, to be
included in the October 1, 2013 rate change.
iv.Non-Exec Labor. Removes the 2013 incremental non-executive
labor increases, to be included in the October 1, 2013 rate change.
d.2013 Property Tax. Removes the 2013 incremental property tax expense,
adjusting property tax expense to December 31, 2012 levels.
e.Remove Officer Incentive and CPI Escalation. Removes officer portion of
incentives and removes the Consumer Price Index adjustment on incentives
included in the Company's original filing.
f.Two-Year Amortization of Reardan. See Paragraph 10 below for further
information.
g.Include Palouse Wind in PCA until Reflected in Base Rates in 2015. See
Paragraph 9 below for further information.
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 6
h. Miscellaneous Adjustments. Includes a two-year amortization of Booz & Co.
consulting fees, thereby reducing test period expenses, and removes certain
1_1 -- -- otner amounts retatea to uii training, aoanuoneu projects and uepreeiauon
study expenses.
8. Overview of Electric Revenue Requirement (October 1. 2013). Below is a
summary table and descriptions of the Electric revenue requirement components agreed to by the
Parties for October 1, 2013:
SUMMARY TABLE OF ELECTRIC REVENUE REQUIREMENT
EFFECTIVE OCTOBER 1, 2013
000s of Dollars
Amounts Effective April 1, 2013
Adjustments to October 1, 2013 Rate Change:
a.)2013 Capital Additions
b.)2014 Capital Additions
c.)Add 2013 Expenses
L Major Generation O&M
ii. Information Services & Technology
ffl. CS2 Levelized Return
iv. Non-Exec Labor
Adjusted Amounts Effective October 1, 2013
Revenue
Requirement Rate Base
$ - $ 637,448
$ 5,488 $ 20,705
$ 629 $ 888
$ 926
$ 318
$ 38
$ 7,825
a. 2013 Capital Additions. Includes 2013 capital additions, reflecting total
depreciation expense and rate base, net of accumulated depreciation and
accumulated deferred income tax, as of year-end December 31, 2013.
b.2014 Capital Additions. Includes certain 2014 capital additions, including
depreciation expense and rate base, net of accumulated depreciation and
accumulated deferred income tax, to represent an agreed-upon level of rate
base.
c.2013 Expenses:
STIPULATION AND SETTLEMENT - AVtJ-E-12-08 & AVU-G-12-07 Page 7
0
i.Major Generation O&M. Includes the 2013 incremental non-labor
generation plant O&M expense discussed above in Paragraph
7(c)(i).
ii.Information Services & Technology. Includes the 2013
incremental information service and technology expenses
discussed above in Paragraph 7(c)(ii).
iii.CS2 Levelized Return. Includes the 2013 incremental
amortization of the deferred CS2 levelized return discussed above
in Paragraph 7(c)(iii).
iv.Non-Exec Labor. Includes the 2013 incremental non-executive
labor increases discussed above in Paragraph 7(c)(iv).
9.Palouse Wind. The Parties agree that recovery of costs related to the Palouse
Wind Power Purchase Agreement ('TPA") will be included in the PCA, subject to the current
sharing (90% customer, 10% Company) until it is included in base rates as part of the
implementation of new rates from the Company's next general rate case anticipated in 2015.
10.Reardan Wind Site Deferral. The Parties agree to amortize the Reardan Wind
Project deferred balance of $1.747 million over a two-year period beginning April 1, 2013.
11.Amortization of 2013 Coyote Springs 2/Coistrip Maintenance Deferral. The
Parties agree that the amount deferred in 2013 related to the Company's O&M costs of its
Coyote Springs 2 (C S2) natural gas-fired generating plant and its fifteen (15) percent ownership
In May 2008, Avista purchased the Reardan Wind Project Site from Energy Northwest, the then-current developer,
after it was demonstrated as the Company's least-cost option for securing a renewable resource for its customers,
consistent with its 2007 Integrated Resource Plan. Avista later chose to delay the construction of the Reardan
project and take advantage of much-lower costs for wind projects that emerged in 2011 (Palouse Wind). Avista
recorded $4.0 million of site acquisition and preparation costs, of which approximately $1.7 million is Idaho's share.
This includes approx. $0.37 million in AFUDC in accordance with Order No. 30611 (Case No. AVU-E-08-04)
I STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 8
share of the Coistrip 3 & 4 coal-fired generating plants will be amortized Over three years,
beginning with the implementation of new base rates resulting from the Company's next general
rate case filing.5
B. NATURAL GAS
12. Overview of Natural Gas Revenue Requirement (April 1. 2013). Below is a
summary table and descriptions of the Natural Gas revenue requirement components agreed to
by the Parties:
SUMMARY TABLE OF ADJUSTMENTS TO NATURAL GAS REVENUE REQUIREMENT
EFFECTIVE APRIL 1, 2013
000s of Dollars
Revenue
Requirement Rate Base
Amount as Filed: $ 4,561 $ 110,930
Adjustments:
a.) Cost of Capital $ (957)
b.) Remove 2013 Capital Additions (Delay to October 1, 2013) $ (22) $ 1,309
c.) Remove 2013 Expenses: Delay Recovery to October 1, 2013 Rate Change
L Information Services & Technology $ (42)
ii. Non-Exec Labor $ (215)
d.) Remove 2013 Property Tax Expense $ (84)
e.) Remove Officer Incentive and CPI escalation $ (50)
£) Miscellaneouse Adjustments: Two-Year Amortization of Booz Consulting $ (76)
costs, Injuries & Damages, Abandoned Projects & Depreciation Study
expense
Adjusted Amounts Effective April 1, 2013 $ 3,115 $ 112,239
a.Cost of Capital. As previously described (see Paragraph 6 above).
b.Remove 2013 Capital Additions. Reflects total depreciation expense and rate
base, net of accumulated depreciation and accumulated deferred income tax,
Per Order No. 32371 in Case No. AVU-E-1 1-01, in order to address the large variability in year-to-year O&M
costs, beginning in 2011, the Company was allowed to defer changes in O&M costs related to its Coyote Springs 2
(C52) natural gas-fired generating plant located near Boardman, Oregon, and its fifteen (15) percent ownership
share of the Coistrip 3 & 4 coal-fired generating plants located in southeastern Montana. The Company compares
actual, non-fuel, O&M expenses for the Coyote Springs 2 and Colstrip 3 & 4 plants with the amount of expenses
authorized for recovery in base rates in the applicable deferral year, and defers the difference from that currently
authorized. The deferral occurs annually, with no carrying charge, with deferred costs being amortized over a three-
year period, beginning in January of the year following the period costs are deferred.
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 9
as of year-end December 31, 2012. Moves certain 2013 capital additions to
the October 1, 2013 rate change.6
c. Remove 2013 Expenses: Delay Recovery to October 1, 2013 Rate Change.
i.Information Services & Technology. Removes the 2013
incremental information service and technology expenses as
discussed above, to be included in the October 1, 2013 rate change.
ii.Non-Exec Labor. Removes the 2013 incremental non-executive
labor increases as discussed above, to be included in the October 1,
2013 rate change.
d. 2013 Property Tax. Removes the 2013 incremental property tax expense,
adjusting property tax expense to December 31, 2012 levels.
e. Remove Officer Incentive and CPI Escalation. Removes officer portion of
incentives and removes the Consumer Price Index adjustment on incentives
included in the Company's original filing.
f. Miscellaneous Adjustments. Includes a two-year amortization of Booz & Co.
consulting fees, thereby reducing test period expenses, and removes certain
other amounts related to injuries and damages, abandoned projects and
depreciation study expenses.
o In the Company's filed case, inclusion of total net plant, including accumulated depreciation and accumulated
deferred income tax on an average-of-monthly-average basis for 2013, had the effect of reducing rate base by $1.309
million and increasing revenue requirement associated with a net increase in depreciation expense by $22,000. This
is due to the original filed adjustment that depreciated all plant, including the plant in service balance at December
31, 2012, to the AMA balance at December 31, 2013. The additional accumulated depreciation on plant in service
at December 31, 2012 was greater than the net plant additions in 2013 on an AMA basis, which had an overall
impact of reducing net rate base.
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 10
13. Overview of Natural Gas Revenue Reguirement (October 1. 2013). Below is a
summary table and descriptions of the Natural Gas revenue requirement components agreed to
by the Parties:
SUMMARY TABLE OF ADJUSTMENTS TO NATURAL GAS REVENUE REQUIREMENT
EFFECTIVE OCTOBER 1, 2013
000s of Dollars
Revenue
Requirement Rate Base
Amounts Effective April 1, 2013 $ - $ 112,239
Adjustments to October 1, 2013 Rate Change:
a.)2013 Capital Additions $ 1,073 $ 3,831
b.)Add 2013 Expenses
1. Infonnation Services & Technology $ 42
ii. Non-Exec Labor $ 215
Adjusted Amounts Effective October 1, 2013 $ 1,330 $ 116,070
a.2013 Canital Additions. Includes certain 2013 capital additions, including
depreciation expense and rate base, net of accumulated depreciation and
accumulated deferred income tax, to represent an agreed-upon level of rate
base.
b.2013 Expenses:
i.Information Services & Technology. Includes the 2013
incremental information service and technology expenses
discussed above in Paragraph 1 2(c)(i).
ii.Non-Exec Labor. Includes the 2013 incremental non-executive
labor increases discussed above in Paragraph 12(c)(ii).
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 11
L

C. OTHER SETTLEMENT COMPONENTS I
14.PCA Authorized Level of Expense. The new level of power supply expense, retail
load and Clearwater Paper generation, and the April 1, 2013 and October 1, 2013 Load Change
Adjustment Rates resulting from the April 1, 2013 and October 1, 2013 settlement revenue
requirements for purposes of the monthly PCA mechanism calculations, are detailed in
Attachment B. The parties agree for the purpose of Settlement in this case to accept the
Company's normalized load forecast without specifically accepting the weather normalization
methodology or the proposed Energy Efficiency Load Adjustment.
15.Depreciation Rates. The Parties have agreed to the updated electric and natural
gas depreciation rates as filed by the Company, with all common/allocated plant depreciation
rates, including the new depreciation rates for transportation equipment, effective January 1,
2013 to coincide with the Company's Washington and Oregon jurisdictions, with the remaining
direct Idaho plant depreciation rate changes effective April 1, 2013.
16.Earnings Test. The Company agrees to an after-the-fact earnings test, where it
would refund to customers one-half of any earnings in excess of the 9.8% ROE for each of the
years 2013 and 2014, to allay any concerns that the base rate relief in April 1, 2013 and October
1, 2013 may allow the Company to exceed its authorized return. The earnings test would be
based on actual, consolidated results for Idaho electric and natural gas operations.
17.Rate Freeze/Stay Out. The Parties agree that, in recognition of the two-year rate
plan covered by this Stipulation, Avista will not file another electric or natural gas general rate
case before May 31, 2014, and while it may request an effective date earlier than January 1,
2015, final approved new rates will not go into effect prior to January 1, 2015. This does not
apply to tariff filings authorized by or contemplated by the terms of the Power Cost Adjustment
(PCA), or the Purchased Gas Adjustment tariff (PGA), or other miscellaneous filings.

STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 12
D. COST OF SERVICE/RATE SPREAD/RATE DESIGN
18. Cost of Service. For electric operations, the Company prepared an analysis using
a peak credit method of classifying production costs, allocating 100% of transmission costs to
demand, and allocating transmission costs on a twelve-month basis. For settlement purposes, the
Parties agreed to use a pro-rata allocation based on the Company's proposed 15% move towards
unity for purposes of spreading the revised electric revenue requirement, while not agreeing on
any particular cost of service methodology.
For natural gas operations, the Company proposed that all rate schedules be moved
approximately 25% towards unity. For settlement purposes, the Parties agreed to use a pro-rata
allocation of the Company's natural gas rate spread percentages from its original filing for
purposes of spreading the revised revenue requirement.

19. Rate Spread/Rate Design (Base Rate Changes).
(a)As indicated above, the Parties agreed that the increase in base revenues
would be spread to all electric and natural gas rate schedules on a pro-rata allocation of
the Company's rate spread percentages from its original filing.
(b)The Parties agree that the revenue requirement for each electric and natural
gas service schedule will be applied as a uniform percentage increase to each volumetric
energy rate as shown in Attachment C. The Parties agree that there will be no change to
Schedule 1 and Schedule 101 basic charges.
(c)Attachment C provides a summary of the current and revised rates and
charges (as per the Settlement) for electric and natural gas service.

20. Rate Spread/Rate Design (Offsets).
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 13
(a)The Parties have agreed that the electric base rate offset related to the BPA
Settlement Revenues will be spread to electric rate schedules on a uniform cents per kWh
basis.
(b)The Parties have agreed that the natural gas base rate offset related to the
2012 PGA deferral credit balance of $1.55 million will be spread to natural gas rate
schedules on a uniform cents per therm basis.
(c)Attachment D contains the form of tariff related to the electric and natural gas
offsets agreed to by the Parties. A new electric rate schedule, Schedule 97, will be used
for purposes of passing through to customers the electric offset. A new natural gas rate
schedule, Schedule 197, will be used for purposes of passing through to customers the
natural gas offset. Both tariffs would expire on December 31, 2014.
{d) Any under- or over-refunded amounts relating to the Electric or Natural Gas
offsets will be trued up in the following year's Power Cost Adjustment (electric) or
Purchased Gas Cost Adjustment (natural gas).
21. Resulting Percentage Increase by Electric Service Schedule. The following tables
reflect the agreed-upon percentage increase by schedule for electric service 7:
Electric Increase Pereentae by Schedule - ADIiI 1. 2013
Rate Schedule
Increase in Base
Rates
Net Increase in
Billing Rates
Residential Schedule 1 0.0% 0.0%
General Service-Schedule 11/12 0.0% 0.0%
Large General Service Schedule 21/22 0.0% 0.0%
Extra Large General Service Schedule 25 0.0% 0.0%
Clearwater Paper Schedule 25P 0.0% 0.0%
Pumping Service Schedule 31/32 0.0% 0.0%
Street & Area Lights Schedules 0.0% 0.0%
Overall 0.0% 0.0%
Avista will file both electric and natural gas conforming tariffs related to the October 1, 2013 rate changes with the
Commission on or before August 30, 2013 for the Commission's review and approval.
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 14
Electric Increase Percentage by Schedule - October 1, 2013
Rate Schedule
Increase in Base
Rates
Net Increase in
Billing Rates*
Residential Schedule 1 3.5% 2.6%
General Service Schedule 11/12 2.8% 1.9%
Large General Service Schedule 21/22 3.3% 2.1%
Extra Large General Service Schedule 25 2.7% 1.0%
Clearwater Paper Schedule 25P 2.3% 0.4%
Pumping Service Schedule 31/32 3.9% 2.9%
Street & Area Lights Schedules 3.1% 2.7%
Overall 3.1% 1.9%
* Net Increase includes the effects of the proposed changes in Schedule 97 (BPA
Adjustment) and the General Rate Increase, all effective on October 1, 2013.
22. Resulting Percentage Increase by Natural Gas Service Schedule. The following
tables reflect the agreed-upon percentage increase by schedule for natural gas service:
Natural Gas Increase Percentae 1w Schedule - Anril 1.2013
Rate Schedule
Increase in Base
Rates
Net Increase in
Billing Rates
General Service Schedule 101 5.3% 5.4%
Large General Service Schedule 111/112 3.8% 3.9%
Interruptible Sales Service Schedule 131/132 4.0% 4.0%
Transportation Service Schedule 146 8.7% 8.7%
Overall 4.9% 5.0%
Natural Gas Increase Percentage by Schedule - October 1, 2013
Rate Schedule
Increase in Base
- Rates
Net Increase in
Billing Rates **
General Service Schedule 101 2.1% 0.6%
Large General Service Schedule 111/112 1.6% -0.5%
Interruptible Sales Service Schedule 131/132 1.4% -1.40
Transportation Service Schedule 146 3.5% 3.5%
Overall 2.0% 0.3%
** Net Increase includes the effects of the proposed changes in Schedule 197 (PGA) and
the General Rate Increase, all eflëctive on October 1, 2013.
STIPULATION AND SETTLEMENT -AVU-E-12-08 & AVU-G-12-07 Page 15
IV. OTHER GENERAL PROVISIONS
23 The Parties agree that this Stipulation represents a compromise of the positions of
the Parties in this case As provided in RP 272, other than any testimony filed in support of the
approval of this Stipulation, and except to the extent necessary for a Party to explain before the
Commission its own statements and positions with respect to the Stipulation, all statements made
and positions taken in negotiations relating to this Stipulation shall be confidential and will not
be admissible in evidence in this or any other proceeding
24 The Parties submit this Stipulation to the Commission and recommend approval
in its entirety pursuant to RP 274. Parties shall support this Stipulation before the Commission,
and no Party shall appeal a Commission Order approving the Stipulation or an issue resolved by
the Stipulation If this Stipulation is challenged by any person not a party to the Stipulation, the
Parties to this Stipulation reserve the right to file testimony, cross-examine witnesses and put on
such case as they deem appropriate to respond fully to the issues presented, including the right to
raise issues that are incorporated in the settlement terms embodied in this Stipulation.
Notwithstanding this reservation of rights, the Parties to this Stipulation agree that they will
continue to support the Commission's adoption of the terms of this Stipulation.
25. If the Commission rejects any part or all of this Stipulation or imposes any
additional material conditions on approval of this Stipulation, each Party reserves the right, upon
written notice to the Commission and the other Parties to this proceeding, within 14 days of the
date of such action by the Commission, to withdraw from this Stipulation In such case, no Party
shall be bound or prejudiced by the terms of this Stipulation, and each Party shall be entitled to
seek reconsideration of the Commission's order, file testimony as it chooses, cross-examine
witnesses, and do all other things necessary to put on such case as it deems appropriate. In such
case, the Parties immediately will request the prompt reconvening of a prehearing conference for
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 16
purposes of establishing a procedural schedule for the completion of the case. The Parties agree
to cooperate in development of a schedule that concludes the proceeding on the earliest possible
date, taking into account the needs of the Parties in participating in hearings and preparing
testimony and briefs.
26 The Parties agree that this Stipulation is in the public interest and that all of its
terms and conditions are fair, just and reasonable.
27.No Party shall be bound, benefited or prejudiced by any position asserted in the
negotiation of this Stipulation, except to the extent expressly stated herein, nor shall this
Stipulation be construed as a waiver of the rights of any Party unless such rights are expressly
waived herein. Execution of this Stipulation shall not be deemed to constitute an
acknowledgment by any Party of the validity or invalidity of any particular method, theory or
principle of regulation or cost recovery. No Party shall be deemed to have agreed that any
method, theory or principle of regulation or cost recovery employed in arriving at this Stipulation
is appropriate for resolving any issues in any other proceeding in the future. No findings of fact
or conclusions of law other than those stated herein shall be deemed to be implicit in this
Stipulation.
28.The obligations of the Parties under this Stipulation are subject to the
Commission's approval of this Stipulation in accordance with its terms and conditions and upon
such approval being upheld on appeal, if any, by a court of competent jurisdiction.
29.This Stipulation may be executed in counterparts and each signed counterpart
shall constitute an original document.
STIPULATION AND SETTLEMENT - AVU-E- 12-08 & AVU-G- 12-07 Page 17
DATED this day of February, 2013
Avista Corporation Idaho Public Utilities Commission Staff
By_ / J By
Dvid J. ?v(eyer Karl Klein
Attorney for Avista Corporation Weldon Stutzman
Deputy Attorneys General
Clearwater Paper Corporation Idaho Forest Group
By:_______________________________ By:
Peter Richardson Dean J. Miller
Attorney for Clearwater Paper Attorney for Idaho Forest Group LLC
Idaho Conservation League
By:
Benjamin J. Otto
Attorney for ICL
STIPULATION AND SETTLEMENT —AVU-E-12-08 & AVU-G-12-07
Page 18
DATED this (c day of February, 2013.
Avista Corporation S Idaho Public Utilities Coipnission Staff
By: J?J j I
David J. Meyer Karl Klein
Attorney for Avista Corporation Weldon St1t7mRn
Deputy Attorneys General
Clearwater Paper Corporation Idaho Forest Group
By. By:
Peter Richardson Dean J. Miller
Attorney for Clearwater Paper Attorney for Idaho Forest Group LLC
Idaho Conservation League
By.
Benjamin J. Otto
Attorney for ICL
STIPULATION AND SETTLEMENT - AVU-E-1 2-08 & AVU-G-12-07 Page 18
DATED this ____ day of February, 2013.
Avista Corporation Idaho Public Utilities Commission Staff
By:
David J. Meyer Karl Klein
Attorney for Avista Corporation Weldon Stutzman
Deputy Attorneys General
Cie Idaho Forest Group
By
I Peter Ri hardson Dean J. Miller
Attorney for Clearwater Paper Attorney for Idaho Forest Group LLC
Idaho Conservation League
By:___________________________
Benjamin J. Otto
Attorney for ICL
STIPULATION AND SETTLEMENT —AVU-E-12-08 & AVU-G-12-07 Page 18
DATED this j j day of February, 2013.
Avista Corporation Idaho Public Utilities Commission Staff
By:
David J. Meyer Karl Klein
Attorney for Avista Corporation Weldon Stutzman
Deputy Attorneys General
Clearwater Paper Corporation I 0 0 St
By: By: -
Peter Richardson Dean J. Miller
Attorney for Clearwater Paper Attorney for Idaho Forest Group LLC
Idaho Conservation League
By:___________________________
Benjamin J. Otto
Attorney for ICL
STIPULATION AND SETTLEMENT - AVU-E-12-08 & AVU-G-12-07 Page 18
DATED this5day of February, 2013.
Avista Corporation Idaho Public Utilities Commission Staff
By_ By
David J. Meyer Karl Klein
Attorney for Avista Corporation Weldon Stutzman
Deputy Attorneys General
Clearwater Paper Corporation Idaho Forest Group
By-
Peter Richardson Dean J Miller
Attorney for Clearwater Paper Attorney for Idaho Forest Group LLC
Idaho Conservation League
Benjamin J. Otto
Attorney for ICL
STIPULATION AND SETTLEMENT - AVIJ-E.-12-08 & AVU-G-12-07 Page 18
STIPULATION AND SETTLEMENT
Case Nos. AVU-E-12-08 & AVU-G-12-07
-
Avista Utilities
Idaho Rate Adjustments Electric
RESIDENTIAL GENERAL SVC. LG. GEN. SVC. EX LG GEN SVC CLEARWATER PUMPING ST & AREA LTG
Effective April 1, 2013 TOTAL SCHEDULE 1 SCH. 11,12 SCH. 21,22 SCHEDULE 25 SCHEDULE 25P SCH. 31, 32 SCH. 41-49
1 Total Billed Revenue $ 245,924,000 $ 96,390,000 $ 32,597,000 $ 51,597,000 $ 16,024,000 $ 41,005,000 $ 4,867,000 $ 3,444,000
2 Revenue Changes
3 GRCIncrease 1$ - 1$ - $ - $ - $ - $ - $ - $ -
4 Total Revenue Change $ - $ - $ - $ - $ - $ $ - $
5
6 Percentage Chanizes
7 GRC Increase 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
8 Total Billed Percentage Change 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
9
10
11
12
13
14
15
16 Effective October 1. 2013
17 Total Billed Revenue S 245,924,000 $ 96,390,000 $ 32,597,000 $ 51,597,000 $ 16,024,000 $ 41,005,000 $ 4,867,000 $ 3,444,000
18 Revenue Chances
19 GRC Increase * $ 7,825,000 $ 3,532,000 $ 920,000 $ 1,714,000 $ 434,000 $ 928,000 $ 190,000 $ 107,000
20 BPA Reduction (15 Month Amortization) ** $ (3,058,000) $ (1,024,000) $ (301,000) $ (614,000) $ (273,000) $ (782,000) $ (51,000) $ (13,000)
21 Total Revenue Change $ 4,767,000 $ 2,508,000 $ 619,000 $ 1,100,000 $ 161,000 $ 146,000 $ 139,000 $ 94,000
22
23 Percentage Chances
24 GRC Increase 3.2% 3.7% 2.8% 3.3% 2.7% 2.3% 3.9% 3.1%
25 BPA Reduction -1.3% -1.1% -0.9% -1.2% -1.7% -1.9% -1.0% -0.4%
26 Total Billed Percentage Change 1.9% 2.6% 1.9% 2.1% 1.0% 0.4% 2.9% 2.7%
27
28
29 * Utilizes a pro-rata allocation of the Company's electric rate spread percentage from its original filing for purposes of spreading the revised revenue requirement.
30 ** The BPA settlement benefit of $3865 million amortized over 15 months is equal to $3.058 million annually. It will expire @ 12/31/14.
Stipulation and Settlement
Case No. AVU-E-12-08 and AVU-G-12-07
Avista
Attachment A Page 1 of 2
Avista Utilities Natural Gas
Idaho Rate Adjustments
GEN SERVICE LRG GEN SVC INTERRUPTIBLE TRANSPORT SPECIAL
Effective April 1. 2013 TOTAL SCHEDULE 101 SCH. 111&112 SCH. 131&132 SCHEDULE 146 CONTRACTS
1 Total Billed Revenue $ 62,090,000 $46,896,000 $14,607,000 $201,000 $289,000 $97,000
2 Revenue Changes
3 GRC Increase * J$ 3,114,740 $ 2,512,740 $ 569,000 $ 8,000 $ 25,000 $ -
4 Total Revenue Change $ 3,114,740 $ 2,512,740 $ 569,000 $ 81000 $ 25,000 $ -
5
6 Percentage Changes
7 GRC Increase 5.0% 5.4% 3.9% 4.0% 8.7% 0.0%
8 Total Billed Percentage Change 5.0% 5.4% 3.9% 4.0% 8.7% 0.0%
9
10
11
12
13
14 Effective October 1. 2013
15 Total Billed Revenue $ 65,204,740 $ 49,408,740 $ 15,176,000 $ 209,000 $ 314,000 $ 97,000
16 Revenue Changes
17 GRC Increase * $ 1,330,000 $ 1,073,000 $ 243,000 $ 3,000 $ 11,000 $ -
18 PGA Reduction (15 Month Amortization) ** $ (1,131,000) $ (799,000) $ (326,000) $ (6,000) $ - $ -
19 Total Revenue Change $ 199,000 $ 274,000 $ (83,000) $ (3,000) $ 11,000 $ -
20
21 Percentage Changes
22 GRC Increase 2.0% 2.2% 1.6% 1.4% 3.5% 0.0%
23 PGA Reduction -1.7% -1.6% -2.1% -2.9% 0.0% 0.0%
24 Total Billed Percentage Change 0.3% 0.6% -0.5% -1.4% 3.5% 0.0%
25
26 * Utilizes a pro-rata allocation of the Company's natural gas rate spread percentages from its original filing for purposes of spreading the revised
27 revenue requirement.
28 ** The PGA deferral of $1.55 million amortized over 15 months is equal to $1.31 million annually. It will expire @ 12/31/14.
Stipulation and Settlement
Case No. AVU-E-12-08 and AVU-G-12-07
Avista
Attachment A Page 2 of 2
STIPULATION AND SETTLEMENT
Case Nos. AVU-E-12-08 & AVU-G-12-07
ATTACHMENT B
Avista Corp
Pro forma January - December
PCA Authorized Expense and Retail Sales
PCA Authorized Power Supply Expense - System Numbers ill
Total aotiaii Februwy March 4pj ma June JUIV ,jg( September Octobe November December
Account 555- Purchased Power (2) $88,182,972 $10717432 $9,359,487 $8,546,885 $6,841,564 $5,337,699 $5,287,042 $5,648,618 $7,939,502 $5,551,282 $5,789,904 $8,437,276 $8,726,282
Account 501 - Thermal Fuel $30,916,732 $2789917 $2,832,215 $2,785,057 $2,031,330 $1,718,372 $1,405,767 $2,715,972 $2,948,383 $2,925,528 $3,051,784 $2,909,636 $3,002,771
Account 547- Natural Gas Fuel $86,631,151 $8,264,229 $7,537,533 $7,376,233 $4,927,841 $2,851,219 $2,201,285 $6,893,937 $8,303,984 $8,561,441 $9,099,171 $9,713,701 $10,900,577
Account 447-Sale for Resale $57,620,639 $4,641,568 $4,386,361 $4,792,538 $5,372,207 $5,022,215 $3,271,701 $6,033,100 $3,115,032 $4,649,875 $4,672,288 $5,573,841 $6,089,913
Power Supply Expense $148,110,215 $17,130,010 $15,142,875 $13,915,637 $8,428,528 $4,885,076 $5,622,392 $9,225,427 $16,076,838 $12,388,375 $13,268,571 $15,486,772 $16,539,718
Transmission Expense $17,970,479 $1,495,284 $1,530,877 $1,480,538 $1,427,248 $1,371,518 $1,420,882 $1,432,251 $1,480,124 $1,483,239 $1,547,809 $1,665,262 $1,635,447
Transmission Revenue $14,192,399 $1,181,058 $975,106 $1,088,154 $1,016,354 $1,087,976 $1,266,618 $1,420,627 $1,296,313 $1,218,435 $1,355,084 $1,151,351 $1,135,323
PCA Authorized Idaho Retail Sales (3)
12(81 January Februa March Aoril ma June Alh Auou ( September Octobe November December
Total Retail Sales, MWh 2,920,315 288,554 259,942 251,709 220,890 215,126 211,354 242,247 239,641 218,705 210,034 262,809 299,304
Clearwater Paper Retail Load = Generation, Mwh 444,563 39,257 35,848 26,604 38,658 38,512 33,557 38,814 38,992 35,735 38,447 38,899 41,240
April 1, 2013 Approved Rates
Load Change Adjustment Rate $26.63 /MWh
October 1, 2013 Approved Rates
Load Change Adjustment Rate $26.97 /MWII
PCA Authorized Clearwater Paper Directly Assigned Values
]:g.IaI January February March ADNI may June JUIV Aunu ( September October November December
Purchased Power $19,080,644 $1,684,910 $1,535,596 $1,141,844 $1,689,201 $1,652,935 $1,440,266 $1,665,897 $1,673,537 $1,533,746 $1,680,145 $1,669,545 $1,770,021 April 1,2013 Approved Rates
Retail Revenue from Load Generation (4) $21,043,428 $1,854,485 $1,707,734 $1,256,968 $1,833,636 $1,819,288 $1,591,883 $1,833,555 $1,841,967 $1,694,991 $1,816,219 $1,844,742 $1,948,159 October 1, 2013 Approved Rates
Retell Revenue from Load = Generation (4) $21,523,556 $1,896,882 $1,746,450 $1,285,700 $1,875,387 $1,860,881 $1,627,925 $1,875,474 $1,884,078 $1,733,585 $1,857,742 $1,886,783 $1,992,699
1)Multiply system numbers by 34.76% to determine Idaho share.
2)Purchased Power Expense includes reduction for Pro Forma Billing Determinants at system cost.
3)12 months ended June 2012 weather normalized Idaho retail sales (utilizes Company's Pro Forma Billing Determinants).
4) Calculated at approved marginal Schedule 25P rates assuming 100% load factor for demand charge.
Stipulation and Settlement
Case No. AVU-E-12-08 and AVU-G-12-07
Avista Attachment B Page 1 of 1
STIPULATION AND SETTLEMENT
Case Nos. AVU-E-12-08 & AVU-G-12-07
ATTACHMENT C
-
AVISTA UTILITIES
IDAHO ELECTRIC, CASE NO. AVU-E-12-08
PROPOSED INCREASE BY SERVICE SCHEDULE
12 MONTHS ENDED JUNE 30, 2012
(000s of Dollars)
lEffective October 1st, 2013 I
Base Tariff Base Tariff Base Total Billed Total Billed Gen. Incr.
Revenue Proposed Revenue Tariff Revenue Total Total Revenue as a %
Line Type of Schedule Under Present General Under Proposed Percent at Present General Sch. 97 - BPA at Proposed of Billed
No. Service Number Rates(1) Increase Rates (1) Increase Rates(2) Increase Decrease Rates(2) Revenue
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
I Residential I $99,497 $3,532 $103,029 3.5% $96,390 $3,532 ($1,024) $98,898 2.6%
2 General Service 11,12 $32,432 $920 $33,352 2.8% $32,597 $920 ($301) $33,216 1.9%
3 Large General Service 21,22 $51,400 $1,714 $53,114 3.3% $51,597 $1,714 ($614) $52,698 2.1%
4 Extra Large General Service 25 $16,036 $434 $16,470 2.7% $16,024 $434 ($273) $16,185 1.0%
5 Clearwater 25P $41,091 $928 $42,019 2.3% $41,005 $928 ($782) $41,151 0.4%
6 Pumping Service 31,32 $4,859 $190 $5,049 3.9% $4,867 $190 ($51) $5,006 2.9%
7 Street & Area Lights 41-49 $3.405 107 $3512 3.1% $3444 J.QZ $3,539 2.7%
8 Total $248,720 $7,825 $256,545 3.1% $245,924 $7,825 ($3,058) $250,691 1.9%
(1)Excludes all present rate adjustments (see below).
(2)Includes all present rate adjustments: Schedule 59- Residential & Farm Energy Rate Adjustment, Schedule 66- Temporary
Power Cost Adjustment, Schedule 91 - Energy Efficiency Rider Adjustment, and Schedule 97- BPA Rate Adjustment.
Stipulation and Settlement
Case No. AVU-E-1 2-08 and AVU-G-1 2-07
Avista
Attachment C Page 1 of 6
$0.06241 $0.06297
$0.05317 $0.05373
$350.00 $350.00
$4.75/kW $4.75/kW
$0.20/kW $0.20/kW
$0.05117
$0.04319
$12,500
$4.5OIkva
$0.20/kW
$683,420
$0.04153
$12,500
$4.50/kva
$0.20/kW
$617,940
$0.05212
$0.04414
$12,500
$4.50/kva
$0.20/kW
$0.04254
$12,500
$45OIkva
$0.20/kW

$8.00 $8.00

$0.09260 $0.09299

$0.07888 $0.07927
AVISTA UTILITIES
IDAHO ELECTRIC, CASE NO. AVU-E-12-08
PRESENT AND PROPOSED RATE COMPONENTS BY SCHEDULE
I lEffective October 1st, 2013
General Proposed
Base Tariff Present Present Rate Sch. 97-BPA Billing
Sch. Rate Other Adi.(1) Billing Rate lnc/(Decr) Decrease Bt
(a) (b) (c) (d) (e) (f) (g)
Residential Service - Schedule I
Basic Charge $5.25 $5.25 $0.00 $5.25
Energy Charge:
First 600 kWhs $007848 ($000276) $0.07572 $0.00298 ($0.00091) $0.07779
All over 600 kWhs $008764 ($000276) $0.08488 $0.00332 ($0.00091) $0.08729
General Services - Schedule 11
Basic Charge $10.00 $10.00 $0.00
Energy Charge:
First 3,650 kwhs $0.09338 $000072 $0.09410 $0.00296 ($0.00091)
All over 3,650 kWhs $0.06958 $000072 $0.07030 $0.00220 ($000091)
Demand Charge:
20 kW or less no charge no charge no charge
Over 20 kW $5.25/kW $5.25/kW
Large General Service - Schedule 21
Energy Charge:
First 250,000 kWhs $006039 $000035 $006074 $0.00258 ($0.00091)
All over 2(2) Includes all preser $005154 $000035 $005189 $0.00219 ($0.00091)
Demand Charge:
50 kW or less $350.00 $350.00 $0.00
Over 50 kW $4.75/kW $4.75/kW
Primary Voltage Discount $0.20IkW $0.20/kW
Extra Larne General Service -Schedule 25
Energy Charge:
First 500,000 kWhs $0.05047 ($000004) $005043 $0.00165 ($0.00091)
All over 500,000 kWhs $0.04275 ($000004) $004271 $0.00139 ($0.00091)
Demand Charge:
3,000 kva or less $12,500 $12,500
Over 3,000 kva $4.50Ikva $4.50Ikva
Primary Volt. Discount $0.20/kW $0.20/kW
Annual Minimum Present: $666,570 Proposed:
Clearwater - Schedule 25P
Energy Charge:
all kWhs $004146 ($0.00010) $004136 $0.00108 ($0.00091)
Demand Charge:
3,000 kva or less $12,500 $12,500
Over 3,000 kva $4.50Ikva $4.50Ikva
Primary Volt. Discount $0.20/kW $0.20/kW
Annual Minimum Present: $606,060 Proposed:
Pumping Service - Schedule 31
Basic Charge $8.00 $8.00 $0.00
Energy Charge:
First 165 kW/kWh $0.08939 $000052 $008991 $0.00360 ($0.00091)
All additional kWhs $0.07620 $000052 $0.07672 $0.00307 ($0.00091)
(1) Includes all present rate adjustments: Schedule 59- Residential & Farm Energy Rate Adjustment, Schedule 66- Temporary
Power Cost Adjustment, and Schedule 91 - Energy Efficiency Rider Adjustment.
Stipulation and Settlement
Case No. AVU-E-12-08 and AVU-G-12-07
Avista
Attachment C Page 2 of 6
$10.00
$0.09615
$0.07159
$5.25/kW
Proposed
Base Tariff
Rate
(h)
$5.25
$0.08146
$0.09096
$10.00
$0.09634
$0.07178
no charge
$5.25/kW
AVISTA UTILITIES
IDAHO GAS, CASE NO. AVU-G-1247
PROPOSED INCREASE BY SERVICE SCHEDULE
12 MONTHS ENDED JUNE 30, 2012
(000$ of Dollars)
lEffective April 1st, 2013 I
Base Tariff Base Tariff Base Total Billed Total Billed Percent
Revenue Proposed Revenue Tariff Revenue Total Revenue Increase
Line Type of Schedule Under Present General Under Proposed Percent at Present General at Proposed on Billed
No. Service Number Rates (1) Increase Rates (1) Increase Rates (2) Increase Rates (2) Revenue
(a) (b) (C) (d) (e) (t) (g) (h) (i) 0)
I General Service 101 $47,852 $2,513 $50,365 5.3% $46,896 $2,513 $49,409 5.4%
2 Large General Service 111/112 $14,997 $569 $15,566 3.8% $14,607 $569 $15,175 3.9%
3 Interruptible Service 131/132 $201 $8 $209 4.0% $201 $8 $209 4.0%
4 Transportation Service 146 $289 $25 $314 8.7% $289 $25 $315 8.7%
5 Special Contracts 148 0.0% 0.0%
6 Total $63,436 $3,115 $66,551 4.9% $62,090 $3,115 $65,205 5.0%
(1)Includes Schedule 150- Purchased Gas Cost Adjustment
(2)Includes Schedule 155- Gas Rate Adjustment
Stipulation and Settlement
Case No. AVU-E-1 2-08 and AVU-G-1 2-07
Avista
Attachment C Page 3 of 6
General Proposed

Rate Billing
Increase Rate

(e) (f)

$0.00 $4.25
$0.04690 $0.85196
$0.04689 $0.87322
$0.02413 $0.71831
$0.02156 $0.63995
$0.01987 $0.58832

$9.38 $90.99
$0.41827
Proposed
Base
Rate (1)
(g)
$4.25
$0.86981
$0.89107
$0.73616
$0.65780
$0.60617
$90.99
$0.43612
AVISTA UTILITIES
IDAHO GAS, CASE NO. AVU-G-12-07
PRESENT AND PROPOSED RATE COMPONENTS BY SCHEDULE
lEffective April 1st, 2013 I
Base Present Present
Rate (1) Rate Adi.(2) Billing Rate
(a) (b) (C) (d)
General Service - Schedule 101
Basic Charge $4.25 $4.25
Usage Charge:
All therms $0.82291 ($0.01785) $0.80506
Large General Service - Schedule Ill
Usage Charge:
First 200 therms $0.84418 ($0.01785) $0.82633
200 - 1,000 therms $0.71203 ($0.01785) $0.69418
1,000- 10,000 therms $0.63624 ($0.01785) $0.61839
All over 10,000 therms $0.58630 ($0.01785) $0.56845
Minimum Charge:
per month $81.61 $81.61
per therm $0.43612 ($0.01785) $0.41827
Interruptible Service - Schedule 132
Usage Charge:
All Therms $0.50911 $0.50911
Transportation Service - Schedule 146
Basic Charge $225.00 $225.00
Usage Charge:
All Therms $0.10671 $0.10671
$0.02074 $0.52985 $0.52985

$0.00 $225.00 $225.00

$0.00978 $0.11649 $011649
(1)Includes Schedule 150- Purchased Gas Cost Adjustment
(2)Includes Schedule 155 - Gas Rate Adjustment
I
Stipulation and Settlement
Case No. AVU-E-12-08 and AVU-G-12-07
Avista
Attachment C Page 4 of 6
AVISTA UTILITIES
IDAHO GAS, CASE NO. AVU-G-12-07
PROPOSED INCREASE BY SERVICE SCHEDULE
12 MONTHS ENDED JUNE 30, 2012
(000$ of Dollars)
lEffective October 1st, 2013 I
Base Tariff Base Tariff Base Total Billed Total Billed Percent
Revenue Proposed Revenue Tariff Revenue Total Total Revenue Increase
Line Type of Schedule Under Present Genera! Under Proposed Percent at Present General Sch 197- PGA at Proposed on Billed
Service Number Rates (1) Increase Rates (1) Increase Rates (2) Increase Increase Rates (3) Revenue
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
1 General Service 101 $50,365 $1,073 $51,438 2.1% $49,408 $1,073 -$799 $49,682 0.6%
2 Large General Service 111/112 $15,566 $243 $15,809 1.6% $15,175 $243 -$326 $15,092 -0.5%
3 Interruptible Service 131/132 $209 $3 $212 1.4% $209 $3 -$6 $206 -1.4%
4 Transportation Service 146 $314 $11 $325 3.5% $315 $11 $0 $326 3.5%
5 Special Contracts 148 0.0% 0.0%
6 Total $66,551 $1,330 $67,881 2.0% $65,204 $1,330 -$1,131 $65,403 0.3%
(1)Includes Schedule 150- Purchased Gas Cost Adjustment
(2)Includes Schedule 155 - Gas Rate Adjustment
(3)Includes Schedule 155- Gas Rate Adjustment and Schedule 197 - PGA Rate Adjustment
Stipulation and Settlement
Case No. AVIJ-E-1 2-08 and AVU-G-1 2-07
Avista
Attachment C Page 5 of 6
I
AVISTA UTILITIES
IDAHO GAS, CASE NO. AVU-G-12-07
PRESENT AND PROPOSED RATE COMPONENTS BY SCHEDULE
lEffective October 1st, 2013 I
General Proposed Proposed Proposed
Base Present Present Rate Sch. 197 PGA Billing Base
Rate (1) Rate Adi.(2) Billing Rate Increase Ad". Rate Rate Rate (1
(a) (b) (C) (d) (e) (f) (g) (h)
General Service - Schedule 101
Basic Charge $4.25 $4.25 $0.00 $4.25 $4.25
Usage Charge:
All therms $0.86981 ($0.01785) $085196 $0.02003 ($0.01489) $0.85710 $0.88984
Larne General Service - Schedule 111
Usage Charge:
First 200 therms $0.89107 ($0.01786) $0.87322 $0.02005 ($0.01489) $0.87838 $0.91112
200- 1,000 therms $073616 ($0.01785) $0.71831 $0.01026 ($0.01489) $0.71368 $0.74642
1000- 10,000 therms $065780 ($0.01785) $0.63995 $0.00927 ($0.01489) $0.63433 $0.66707
All over 10,000 therms $060617 ($0.01785) $0.58832 $0.00845 ($0.01489) $0.58188 $0.61462
Minimum Charge:
per month $90.99 $90.99 $4.01 $95.00 $95.00
per therm $0.43612 ($0.01785) $0.41827 ($0.01489) $0.40338 $0.43612
Interruptible Service - Schedule 132
Usage Charge:
All Therms $0.52985 $052985 $0.00759 ($0.01489) $0.52255 $0.53744
Transportation Service - Schedule 146
Basic Charge $225.00 $225.00 $0.00 $225.00 $225.00
Usage Charge:
All Therms $0.11649 $0.11649 $0.00426 $0.12075 $0.12076
(1)Includes Schedule 150- Purchased Gas Cost Adjustment
(2)Includes Schedule 155- Gas Rate Adjustment
Stipulation and Settlement
Case No. AVU-E-1 2-08 and AVU-G-1 2-07
Avista
.
Attachment C Page 6 of 6
STIPULATION AND SETTLEMENT
Case Nos. AVU-E-12-08 & AVU-G-12-07
ATTACHMENT D
Avista Corporation
State of Idaho
BPA Rate Adjustment Offset
ID portion of BPA Settlement -$3,846,000
Conversion Factor 0.995010
Revenue Requirement -$1,865,288
15 Month Amortization Rate Pro Forma BPA
Sch kWh Reduction
1 1,454,376,696 ($1,320,981)
11&12 418,029,209 ($379,688)
21&22 847,204,858 ($769,499)
25 373,474,024 ($339,219)
25P 1,079,930,838 ($980,879)
31&32 65,224,871 ($59,242)
41-49 17,372,742 ($15,779)
Total 4,255,613,238 ($3,865,288)
Uniform cents reduction ($0.00091)
* Effective October 1st, 2013 through December 31st, 2014
** Any residual balance will be trued up in a future PCA filed by the Company.
Stipulation and Settlement
Case No. AVU-E-12-08 and AVU-G-12-07
Avista
Page 1 of 4
Attachment 0
I.P.U.C. No.28 Original Sheet 97 97
AVISTA CORPORATION
dlbla Avista Utilities
SCHEDULE 97
BONNEVILLE POWER ADMINISTRATION SETTLEMENT - IDAHO
AVAILABLE:
To Customers in the State of Idaho where Company has electric service
available.
PURPOSE:
To adjust electric rates for revenues related to the Bonneville Power
Administration settlement.
MONTHLY RATE
The energy charges of electric Schedules 1, II, 12, 21, 22, 25, 25P, 31,
32 and 41-49 are to be decreased by 0.0910 per kilowatt-hour in all blocks of
these rate schedules.
TERM:
The energy charges will be reduced for a fifteen month period, from
October 1, 2013 through December 31, 2014. Any residual balance will be trued
up in a future PCA filed by the Company.
SPECIAL TERMS AND CONDITIONS:
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 September XX, 2013 Effective October 1, 2013
Kelly Norwood, Vice President, State & Federal Regulation
Attachment D Stipulation and Settlement
Case No. AVU-E-12-08 and AVU-G-12-07
Avista
Page 2 of 4
Avista Corporation
State of Idaho
PGA Rate Adiustment Offset
Refund of Deferred Gas Costs -$1,542,264
Conversion Factor 0995009
Revenue Requirement -$1,550,000
15 Month Amortization Rate Pro Forma PGA
Sch Therms Reduction
101 74,508,535 ($1,109,559)
111&112 29,081,957 ($433,080)
131&132 494,346 ($7362)
Total 104,084,838 ($1,550,000)
Uniform cents reduction ($0.01489)
* Effective October 1st, 2013 through December 31st, 2014
** Any residual balance will be trued up in a future PGA filed by the Company.
Stipulation and Settlement
Case No. AVU-E-12-08 and AVU-G-12-07
Avista
Attachment 0 Page 3 of 4
I.P.U.C. No.27 Sheet 197
AVISTA CORPORATION
d/bla Avista Utilities
SCHEDULE 197
REFUND OF DEFERRED GAS COSTS - IDAHO
AVAILABLE:
To Customers in the State of Idaho where Company has natural gas
service available.
PURPOSE:
To adjust natural gas rates for the refund of prior deferred gas costs.
MONTHLY RATE:
The energy charges of natural gas Schedules 101, 111, 112, 131, and 132
are to be decreased by 1.4890 per therm in all blocks of these rate schedules.
TERM:
The energy charges will be reduced for a fifteen month period, from
October 1, 2013 through December 31, 2014. Any residual balance will be trued
up in a future PGA filed by the Company.
SPECIAL TERMS AND CONDITIONS:
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 158.
Issued September XX, 2013 Effective October 1, 2013

Issued by Avista Utilities

By Kelly Norwood, Vice President, State & Federal Regulation
Attachment 0 Stipulation and Settlement
Case No. AVU-E-12-08 and AW-G-12-07
Avista
Page 4 of 4