140408_AVUlineextensions.pdf

Idaho Public Utilities Commission
Case No. AVU-E-14-02, Order No. 33003
Contact: Gene Fadness [phone], 890-2712

Avista seeks to update line extension costs, allowances

BOISE (April 10, 2014) -- The Idaho Public Utilities Commission is taking comment on an Avista
Utilities application to update the costs it charges for line extensions and the allowance allowed
developers and builders against those costs.

Avista annually updates the cost of line extensions – transformers, meters and service cable –
to new customers which are included in base rates. But it has not updated since 2001 the
allowance allowed developers and builders against those costs that are authorized for recovery
in base rates. Currently, the allowance is $1,000 for residential customers. If line extension
costs exceed that amount, the customer pays the excess as a Contribution in Aid of
Construction. Avista proposes to increase that allowance to $1,600. The amount of the
allowance varies according to customer class.

The utility claims a number of factors have increased line extension cost. The 2012 National
Electric Safety Code requires higher strength requirements for guy-supported wood poles and
guy wire insulation upgrades. The cost of transformers has also increased significantly, the
company claims.

Avista originally proposed the commission adopt the change as a tariff advice, an administrative
procedure that doesn’t require public comment. However, because of the update in the
allowance, the commission said customer comments should be taken.

Comments are accepted via e-mail through April 22, by accessing the commission’s homepage
at www.puc.idaho.gov and clicking on "Case Comment Form,” under the “Electric” heading. Fill
in the case number (AVU-E-14-02) and enter your comments. Comments can also be mailed to
P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone].

A full text of the commission’s order, along with other documents related to this case, is
available on the commission’s Web site. Click on “Open Cases” under the “Electric” heading and
scroll down to the above case number.

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