HomeMy WebLinkAbout28108.docBEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION DBA AVISTA UTILITIES—WASHINGTON WATER POWER DIVISION FOR AUTHORITY TO REVISE ELECTRIC TARIFF SCHEDULE 66 TEMPORARY POWER COST ADJUSTMENT IDAHO AND TO IMPLEMENT A RELATED REBATE.
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) CASE NO. AVU E 99 5
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
ORDER NO. 28108
YOU ARE HEREBY NOTIFIED that on July 27, 1999, Avista Corporation dba Avista Utilities—Washington Water Power Division (Avista; Company) in Case No. AVU E 99-5 filed an Application with the Idaho Public Utilities Commission (Commission) proposing a revision to the Companys electric tariff Schedule 66temporary Power Cost AdjustmentIdaho. Avista requests that the Commission approve a $2,766,000, 2.503% rebate to Avistas Idaho customers. The rebate is being requested as a result of the trigger being reached and exceeded in Avistas Power Cost Adjustment (PCA) balancing account. The Companys PCA mechanism was first established in Case No. WWP-E-88-3, Order No. 22816 issued October 31, 1989, and has been extended, modified and clarified in a number of subsequent cases (WWP-E-93-3, Order No. 24874; WWP E 94-4, Order No. 25637; WWP E 97-10, Order No. 27202; and WWP-E-98-4, Order No. 27824). Since its inception to date of filing, there have been eight rebates totaling $20,820,000 and three surcharges totaling $6,769,000. The PCA-related rate changes are limited to no more than two consecutive surcharges or rebates during any 12-month period, July 1 to June 30, and the annual rate change during any 12-month period is limited to 5%.
Water Powers PCA is used to track changes in revenues and costs associated with variations in hydroelectric generation, prices in the secondary market, and changes in PURPA power expenses. The PCA rate adjustment mechanism is designed to recover/rebate variances in power supply expenses incurred by the Company. The PCA mechanism tracks changes in the Companys power supply costs associated with abnormal weather and stream flows. The weather-related portion of the PCA tracks 100% of the variation in hydro generation from the hydro generation authorized, variation in secondary prices from those authorized, and the related variation in thermal generation. The PCA is also designed to recover contract costs incurred pursuant to the Public Utilities Regulatory Policies Act of 1978 (PURPA) and the related implementing rules and regulations of the Federal Energy Regulatory Commission (FERC) beyond the level included in the Companys general revenue requirement. PURPA contract costs are the result of the Companys federally mandated obligation to purchase the output of qualifying small power and cogeneration facilities and, therefore, are largely outside the control of Avista. The PCA tracks 100% of the changes in costs associated with PURPA contracts. The Company is allowed to record the difference between actual power supply costs and the level of those costs authorized by the Commission. When the total difference in costs exceed $2.2 million, the Company may request authority to implement a surcharge or rebate. As reflected in the Companys Application, the $2.2 million trigger was reached and exceeded in July 1999, based on actual data from the preceding month, June.
Under the Companys proposal in this case, the monthly energy charges of the individual electric rate schedules are to be decreased by the following amounts:
Type of Service
Present
Sch 66 Rebate
Effective 2/1/99; Expires 1/31/00
(2.660%)
Proposed
Sch 66 Rebate
(2.503%)
Schedules 1, 3A-D, & 15
(Residential)
Schedules 11, 12, 13A-D, & 16
(General)
Schedules 17, 21, 22, & 23A-D
(Large General)
Schedule 25
(Extra Large General)
Schedules 18, 31, 32, & 33A-D
(Pumping)
0.127/kWh
0.189/kWh
0.132/kWh
0.082/kWh
0.135/kWh
0.115¢/kWh
0.153¢/kWh
0.114¢/kWh
0.077¢/kWh
0.107¢/kWh
Flat rate charges for Company-owned or customer-owned street lighting and area lighting service (Schedules 41-49) under the present rebate are reduced by 2.660% and under the proposed rebate will be reduced by a further 2.503%. Implementation of the proposed rebate will result in an overall decrease of 2.503% in the Companys Idaho electric rates or $1.15 in the monthly bill of an average residential customer using 1,000 kWh. The combined effect of both the existing and proposed rebates is an overall decrease of 5.163%, or $2.42 in the monthly bill of an average residential customer using 1,000 kWh. The existing rebate, however, will expire on January 31, 2000.
Avista has requested expedited approval of its rebate on less than statutory notice so that the effective date of the rebate will coincide with any rate change authorized by the Commission in Case No. WWP-E-98-11, the Company’s general rate filing. The Company, as part of its Application, has filed supporting testimony and exhibits.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. AVU-E-99-5 including the Company’s testimony, exhibits and underlying workpapers. The Commission has been apprised by Commission Staff that a preliminary desk audit of the Company’s filings reveals no irregularities. The Commission finds it reasonable pending further analysis, investigation and findings in this case, to grant on an interlocutory basis the Company’s request for expedited treatment and implementation of the requested rebate in such manner and timing as to coincide with the rate change authorized in Case No. WWP-E-98-11, Order No. 28097. In approving expedited treatment the Commission finds it reasonable to also waive the advance individual customer notice requirements of IDAPA 31.21.02.102.
YOU ARE FURTHER NOTIFIED that the Commission has preliminarily determined that the public interest may not require a hearing to consider the issues presented in Case No. AVU-E-99-5 and that the issues raised by the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application, the Commission’s interlocutory Order allowing expedited implementation of the rebate and the Commissions use of Modified Procedure in Case No. AVU-E-99-5 is Friday, August 20, 1999. Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in this proceeding unless it receives written protests or comment opposing the use of Modified Procedure and stating why Modified Procedure should not be used. Reference IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the matter on its merits and enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order on the basis of the written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. AVU-E-99-5 should be mailed to the Commission and the Company at the addresses reflected below:
COMMISSION SECRETARY THOMAS D. DUKICH, MANAGER
IDAHO PUBLIC UTILITIES COMMISSION RATES AND TARIFF ADMINISTRATION
PO BOX 83720 AVISTA UTILITIES—WASHINGTON WATER
BOISE, IDAHO 83720-0074 POWER DIVISION
PO BOX 3727
Street Address for Express Mail: SPOKANE, WASHINGTON 99220
472 W WASHINGTON ST DAVID J. MEYER
BOISE, IDAHO 83702-5983 SR. VICE PRESIDENT & GENERAL C OUNSEL
AVISTA UTILITIES—WASHINGTON WATER
POWER DIVISION
PO BOX 3727
SPOKANE, WASHINGTON 99220
All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that the Application in Case No. AVU-E-99-5 can be reviewed at the Commissions Office and the Idaho Offices of Avista Corporation dba Avista Utilities—Washington Water Power Division during regular business hours.
O R D E R
In consideration of the foregoing and as more particularly described and qualified above, IT IS HEREBY ORDERED and the Commission does hereby approve and authorize Avista Corporation dba Avista Utilities—Washington Water Power Division to implement a $2,766,000, 2.503% rebate to refund amounts accumulated in its Power Cost Adjustment (PCA) balancing account through proposed amended tariff Schedule 66 — Temporary Power Cost Adjustment—Idaho for an effective August 1, 1999, date (coinciding with the rate change authorized in Case No. WWP-E-98-11, Order No. 28092) and to expire one year from said date.
IT IS FURTHER ORDERED and the Commission does hereby approve the processing of this Application pursuant to Modified Procedure and scheduling, as more particularly described above.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of July 1999.
DENNIS S. HANSEN, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
PAUL KJELLANDER, COMMISSIONER
ATTEST:
Myrna J. Walters
Commission Secretary
vld/O:AVU-E-99-5.sw
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
ORDER NO. 28108 -1-
Office of the Secretary
Service Date
July 29, 1999