28590.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION FOR APPROVAL OF A REVISED INTEREST RATE TO BE APPLIED TO DEFERRED GAS COSTS. )
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CASE NO. AVU-G-00-04

ORDER NO. 28590

On November 29, 2000, Avista Corporation dba Avista Utilities – Washington Water Power Division – Idaho (Avista) filed an Application with the Idaho Public Utilities Commission (Commission) requesting a change in the interest rate applied to deferred gas costs, costs recorded monthly in Accounts 191.30 and 191.31. The interest rate presently applied to the balance in these accounts is the customer deposit rate, a rate that is published annually by the Commission. The current customer deposit rate is 5.0%. Avista indicates that this rate is substantially less than its short term borrowing rate. Short term borrowings, the Company states, are used to finance the balance of deferred gas costs. The Company proposes to utilize a rate that is representative of its short term borrowing costs.
The Company has requested an effective date of December 15, 2000, for the proposed change in interest rate. The Commission finds it reasonable to process the Company’s Application under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.204. To facilitate the processing of the Application under Modified Procedure and to accommodate Commission scheduling constraints, the Commission finds that it is necessary to suspend the proposed effective date from December 15, 2000 to February 1, 2001. Reference IDAPA 31.01.01.134.02.
O R D E R
In consideration of the foregoing and pending further Commission Order, IT IS HEREBY ORDERED and the Commission does hereby suspend the proposed effective date for the proposed change in interest rate for deferred gas costs in Case No. AVU-G-00-04 from December 15, 2000 to February 1, 2001.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of December 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:AVU-G-00-04_sw

ORDER NO. 28590 1

Office of the Secretary
Service Date
December 14, 2000