100213_AVUadjustments.pdf

Idaho Public Utilities Commission
Case No. AVU-E-13-08, Order No. 32895
Case No. AVU-E-13-06, Order No. 32889
October 2, 2013
Contact: Gene Fadness [phone], 890-2712

PUC taking comment on two Avista applications

The Idaho Public Utilities Commission is taking comments on two Avista Utilities applications
that could slightly impact rates in the future.

Comments are being accepted through Oct. 21 on the utility’s request to fund up to $300,000 in
research and development of energy efficiency projects through Idaho’s four-year universities.
The utility also seeks authority to defer expenses related to improving oxygen levels in Lake
Spokane. The commission is taking comment on that application through Oct. 24.

R&D efficiency projects, Case No. AVU-E-13-08

Avista already offers a number of programs that result in more efficient use of energy and that
also reduce demand on Avista’s generation system. The proposed $300,000 in annual
investment into applied research and development could benefit customers as soon as in the
next one to four years, according to Avista’s application. Energy efficiency and demand
reduction programs are the least expensive source of energy for Avista and its customers.

The up to $300,000 expended would be included in the company’s Energy Efficiency Rider,
which is adjusted annually to match revenues with expenses. The impact to an Avista
residential customer who uses the company’s average of 930 kilowatt-hours per month would
be about eight-tenths of a cent per month or $1 per year.

Avista says its proposal is consistent with Gov. C.L. “Butch” Otter’s Idaho Global Entrepreneurial
Mission (“iGem”) under which industries supplement university research and development
funding provided by the state.

If the R&D funding is approved, Avista would file an annual report every March 31 outlining the
project selection process, project descriptions and milestones as well as an accounting of
expenditures.

Spokane Lake deferral account, Case No. AVU-E-13-06

A renewal of Avista’s federal license to operate its Long Lake hydroelectric facility and
Washington State Department of Environmental Quality regulations require that the utility
improve oxygen conditions in Lake Spokane. The lake is a reservoir created by the Long Lake
hydro plant.

The utility examined a number of alternatives to address the problem and adopted a plan that
includes removing non-native carp and non-native aquatic vegetation and educating shoreline
owners on proper vegetative management.

Expense incurred through Dec. 31, 2012 is about $1.34 million according to Avista, of which
$468,893 would be allocated to Idaho customers.

If the commission allows Avista to defer the costs, rates would not be immediately impacted.
However, they would be included in Avista’s next general rate case filing. At that time, the
commission would review those expenses to determine if they were prudently incurred and
needed to serve customers.

To comment on either of these applications, go to the commission Web site,
www.puc.idaho.gov and click on “Case Comment or Question Form” under the “Consumers”
heading and enter the appropriate case number as cited above. Comments can also be mailed
to P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone].

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