modproc.app.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

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

NOTICE OF COMMENT/ PROTEST DEADLINE

YOU ARE HEREBY NOTIFIED that 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.
As represented by the Company, its present (variable) short term borrowing cost is approximately 7.5%, excluding fixed charges and fees. Fixed charges and fees currently add about 1% to the rate. Recent increases in gas prices, the Company states, have caused the Company’s deferral balance to increase substantially. Without a compensatory rate applied to the deferred balance, the Company states that it has a financial incentive to collect a deferred balance owing the Company as quickly as possible and to refund a balance owing customers as slowly as possible.
In order to simplify the monthly calculation of the rate to be applied to deferred gas costs and to provide a reasonable audit trail, the Company proposes to use an average of the variable rate under its line of credit for the first and last day of each month. The Company receives a bank confirmation showing the effective variable interest date for each day it borrows funds under its credit line, and therefore contends that the rate applied to the gas deferral balances will be simple to calculate and supported by just two documents each month.
The Company requests that its Application be approved on or before December 15, 2000.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. AVU-G-00-04. The Commission has preliminarily determined that the public interest regarding the proposal of Avista Corporation to change the interest rate applied to deferred gas costs may not require a hearing to consider the issues presented and that the issues raised by 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 to facilitate the processing of the Company’s Application under Modified Procedure and to accommodate Commission scheduling constraints, the Commission in Order No. 28590 suspended the proposed effective date for the proposed change in interest rate for deferred gas costs from December 15, 2000 to February 1, 2001, or until such earlier time as the Commission might issue its Order approving, denying or modifying the Company’s proposal. Reference IDAPA 31.01.01.134.02.
YOU ARE FURTHER NOTIFIED that the Commission may 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 AVU-G-00-04 is Friday, January 5, 2001. Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the issue on its merits and issue 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 based on the written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. AVUG00-04 should be mailed to the Commission and he 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 D DUKICH, MANAGER
RATES & TARIFF ADMINISTRATION
AVISTA CORPORATION
1411 E MISSION AVE
PO BOX 3727
SPOKANE, WA 99220
And
DAVID MEYER, ESQ.
SR VP & GENERAL COUNSEL
AVISTA CORPORATION
1411 E MISSION AVE.
PO BOX 3727
SPOKANE, WA 99220
All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that the Application in Case No. AVU-G-00-04 can be reviewed at the Commission’s Office and at the Idaho offices of Avista Corporation during regular business hours.

DATED at Boise, Idaho this day of December 2000.

DENNIS HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

Vld/N:

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

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

Office of the Secretary
Service Date
December 14, 2000