avue996-pace992.sw.doc

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 1895

Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983

Attorney for the Commission Staff

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF
AVISTA CORPORATION FOR AUTHORITY TO SELL ITS INTEREST IN THE COAL-FIRED CENTRALIA POWER PLANT
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CASE NO. AVU-E-99-6
IN THE MATTER OF THE APPLICATION OF PACIFICORP FOR AN ORDER APPROVING THE SALE OF ITS INTEREST IN
(1) THE CENTRALIA STEAM ELECTRIC GENERATING PLANT, (2) THE RATE BASED PORTION OF THE CENTRALIA COAL MINE, AND (3) RELATED FACILITIES; FOR A
DETERMINATION OF THE AMOUNT OF AND THE PROPER RATEMAKING TREATMENT OF THE GAIN ASSOCIATED WITH THE
SALE; AND FOR AN EWG DETERMINATION
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CASE NO. PAC-E-99-2

COMMENTS OF THE COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Scott Woodbury, Deputy Attorney General, and in response to the Notice of Application, Notice of Modified Procedure and Notice of Comment/Protest Deadline issued on August 31, 1999, in the above respective cases submits the following comments.
The Commission Staff has reviewed the filings of both the Avista Corporation in Case No. AVU-E-99-6 and PacifiCorp in Case No. PAC-E-99-2 regarding the sale of the Centralia coal-fired power plant. Based on its preliminary review, Staff identifies the following issues that it intends to address: (a) prudence of sale – reclamation risk, multiple owner risk, economics (cost of replacement power, etc.); (b) gain – dollar calculation and regulatory treatment. Staff believes that the issues in each case dealing with the justification for the sale and distribution of the gain resulting from the sale are similar and can be addressed under Modified Procedure. Although the investigations are still underway, it is Staff’s belief that factual differences can be adequately addressed in written Comments. However, Staff stands ready to proceed to hearing in one or both of these cases should the Commission, the Company, or other parties believe that a hearing is necessary to more fully evaluate the issues.
Staff proposes the following Modified Procedure scheduling: Staff/Intervenor Comment deadline: December 3, 1999; Utility Reply : December 30, 1999.

Respectfully submitted this day of September 1999.

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Scott Woodbury
Deputy Attorney General

SW:va:word:u:umisc:comments/avue996-pace992.sw

COMMENTS OF THE 1 September 30, 1999
COMMISSION STAFF