20000620modproc-app.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF
AVISTA CORPORATION FOR
AUTHORIZATION TO DEFER COSTS
ASSOCIATED WITH THE HAMILTON
STREET BRIDGE SITE.

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CASE NO. AVU-G-00-1

NOTICE OF APPLICATION

NOTICE OF MODIFIED
PROCEDURE

NOTICE OF COMMENT/
PROTEST DEADLINE

YOU ARE HEREBY NOTIFIED that on May 23, 2000, Avista Corporation dba Avista Utilities—Washington Water Power Division (Idaho) filed an Application with the Idaho Public Utilities Commission (Commission) requesting authority to defer clean-up costs associated with gas manufacturing activities conducted at its previously owned Hamilton Street Bridge site, including an allocation to Idaho of 31.574% and the accrual and deferral of related carrying charges.
The Hamilton Street Bridge Site is located in Spokane, Washington and contains properties upon which a manufactured gas plant and a coal-tar processing plant (collectively the Spokane Gas Plant) once operated. The Company reports that the Washington State Department of Transportation directed an environmental investigation of the site and documented the presence of hydrocarbon contaminated soils.
As reflected in the Company’s Application, on January 15, 1999, Avista received notice from the State of Washington Department of Ecology (WDOE) that it had been designated as a potentially liable party with respect to any hazardous substances located at the property upon which the former Spokane Gas Plant once operated. The Spokane Gas Plant operated as a coal gasification plant in the early 1900s until 1948. The Hamilton Street Bridge property was acquired by the Company through a merger in 1958, together with gas distribution facilities in Washington and Idaho. The Company no longer owns the property.
Avista reports that it submitted a draft remedial investigation study to the WDOE and is reviewing its comments. The Company has also submitted a draft feasibility study to the WDOE. The feasibility study sets forth four preliminary cleanup alternatives priced from $304,000—total capital and monitoring cost (the Company’s preference) to $33,910,670. The final cleanup action plan is to be determined by the WDOE. Through May 11, 2000, Avista reports that it has incurred approximately $889,000 in incremental costs associated with the Company’s remedial investigation and feasibility study. Avista is requesting Commission authorization to defer incremental costs associated with the remedial investigation, feasibility study, remedial measures and monitoring of the Hamilton Street Bridge Site.
Avista is proposing that incremental costs associated with the Hamilton Street Bridge Site be deferred in Account 186.2, Miscellaneous Deferred Debits. Avista is proposing that the recovery of the deferred costs, including carrying charges, be addressed in a future rate proceeding. Avista is proposing to accrue carrying charges using the interest rate authorized for customer deposits, which is currently 5.00% for the year 2000. Carrying charges would continue to accrue until the balance of the deferred costs and accrued carrying charges are determined and included in rate base and an amortization is recovered through customer rates.
The allocation to the Washington and Idaho jurisdictions proposed by the Company is the gas jurisdiction four-factor allocation percentage in the Company’s current gas general rate case, i.e., 68.426% for Washington and 31.574% for Idaho.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company’s Application. The Commission has preliminarily found that the public interest regarding deferral of clean up and related costs associated with hazardous substances located at the Company’s previously owned Hamilton Street Bridge Site may not require a hearing to consider the issues presented and that 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 Commission will not hold a hearing in this proceeding unless it receives written protests or comments 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 the deadline for filing written comments or protests with respect to the Application and the Commission’s use of Modified Procedure in Case No. AVU-G-00-1 is Friday, July 21, 2000. Persons desiring a hearing must specifically request a hearing in their written protest or comments.
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 the Application and proposed clean up alternatives with respective cost estimates have been filed with the Commission are available for public inspection during regular business hours at the Commission office and at the Idaho offices of Avista Corporation.
YOU ARE FURTHER NOTIFIED that written comments concerning this Application should be mailed to the Commission and the Company at the addresses reflected below:

COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074

Street Address for Express Mail:

472 W WASHINGTON ST
BOISE, ID 83702-5983 THOMAS DUKICH, MANAGER
RATES & TARIFF ADMINISTRATION
AVISTA CORPORATION
E. 1411 MISSION AVENUE
PO BOX 3727
SPOKANE, WA 99220

DAVID J. MEYER, SENIOR VICE PRESIDENT
AND GENERAL COUNSEL
AVISTA CORPORATION
E. 1411 MISSION AVENUE
PO BOX 3727
SPOKANE, WA 99220
All comments should contain the case caption and case number shown on the first page of this document.

DATED at Boise, Idaho this day of June 2000.

DENNIS HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

Bls/N:avug001_sw

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE 1

Office of the Secretary
Service Date
June 21, 2000