2000122128602-mod.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF APPLICATION OF AVISTA CORPORATION DBA AVISTA UTILITIES—WASHINGTON WATER POWER DIVISION (Idaho) FOR AN ORDER APPROVING A CHANGE IN NATURAL GAS RATES AND CHARGES. )
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CASE NO. AVU-G-00-5

NOTICE OF APPLICATION

NOTICE OF PUBLIC WORKSHOPS AND HEARINGS

NOTICE OF MODIFIED PROCEDURE

NOTICE OF COMMENT DEADLINE

ORDER NO. 28602

YOU ARE HEREBY NOTIFIED that on December 8, 2000, Avista Corporation dba Avista Utilities—Washington Water Power Division—Idaho (Avista; Company) applied to the Idaho Public Utilities Commission (Commission) for authority to implement new rates and charges for natural gas service in the state of Idaho. As computed by the Company, the total requested net annual revenue increase in Idaho is $14,106,437 (29.19%). The change in rates and charges to customers will vary according to customer class and usage. The Company maintains that the public interest does not require a hearing on its Application and requests that the matter 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. The Company has requested an effective date of January 11, 2001.
Avista serves approximately 59,237 customers in Idaho. Over 58,626 of those customers are residential. The increase in price per therm to residential customers is approximately 28.20%. Residential customers using an average of 80 therms per month under the Company’s proposal can expect an increase in their average bill of $14.92. Large commercial customers served under Schedules 111 and 121 can expect to see an average increase of 32.1% and 35.9% respectively, with the higher percentage due to lower base rates. Actual customer increases will vary based on therms consumed.
The overall effect of the proposed changes, if authorized, would be to increase customer rates per therm in the following amounts:

Class Description and Schedule Dollars per therm increase
General/large general & commercial
(Schedules 101, 111, & 121)

$0.18649 Large general & commercial receiving lump sum bill credits or charges
(Schedules 112 & 122)
$0.18649 Interruptible service & interruptible service receiving lump sum bill credits or charges
(Schedules 131 & 132)
$0.18544 Transportation
(Schedule 146)
$0
SCHEDULE 155—GAS RATE ADJUSTMENT—(Idaho)
Schedule 155—Gas Rate Adjustment (Idaho) is used by the Company to pass through any under- or over-collection of gas costs since its last tracker filing. The Company in this filing proposes no adjustment or changes to its tariff Schedule 155 rates. The Commission is apprised that the Company as of November 1, 2000, is deferring approximately $9 million in Schedule 155 under-collected gas costs.
SCHEDULE 150—PURCHASE GAS COST ADJUSTMENT—(Idaho)
Schedule 150—Purchase Gas Cost Adjustment (Idaho) is used by the Company to reflect continuing changes in the cost of purchasing and transporting gas for customers. Since rates were last approved, the net change in commodity, demand and storage gas costs results in an increase of $0.18649/therm for firm gas schedules 101 through 122; an increase of $0.18544/therm for interruptible schedules 131 and 132; and no change for transportation schedule 146. As per the Company’s Application, the resultant annual net increase in annual revenue requirement (Idaho) related to Schedule 150 changes is $14,106,437. The Company calculates its current weighted average cost of gas (WACOG) to be $0.48044, an increase of $0.18544 from the previous $0.29500.
As reflected in the Company’s Application, the proposed annual revenue increase is necessary due to continued upward pressure on gas prices. Market prices for gas have more than doubled since the Company’s last PGA ($9,941,262 (29.04%) increase), effective September 1, 2000. Reference Case No. AVU-G-00-3, Order No. 28496. The Company’s forecasted WACOG based on first of the month prices for January 2001 is over $.90 per therm and the forward/future prices for all of 2001 do not drop below $.50 per therm. The Company requested WACOG for the next 12 months based on forward/future published prices is $.48044.
YOU ARE FURTHER NOTIFIED that the Company’s Application to increase its rates and charges is a proposal subject to public review and Commission approval. The Commission has determined that the public interest requires the scheduling of both public workshops and hearings.
NOTICE OF PUBLIC WORKSHOPS AND HEARINGS
YOU ARE FURTHER NOTIFIED that the Commission has scheduled three public workshops and two hearings in this matter in:
Lewiston—on Monday, January 22, 2001, at the Red Lion Hotel, 621 21st Street. The public workshop will begin at 6:30 p.m. and the public hearing will begin at 8:00 p.m.
Coeur d’Alene—on Tuesday, January 23, 2001, at the Kootenai County Courthouse, 451 Government Way. The public workshop will begin at 6:30 p.m. and the public hearing will begin at 8:00 p.m.
Sandpoint—on Wednesday, January 24, 2001, at the Edgewater Resort Motor Inn, 56 Bridge Street. The public workshop will begin at 6:30 p.m.; no public hearing is scheduled.
The workshops will provide the public an opportunity to meet with Avista and Commission Staff representatives and ask questions and receive information. Following the workshops in Lewiston and Coeur d’Alene, the Commission will hold a formal hearing to receive public testimony on the Company’s Application. Customers, local government leaders, and other interested persons are encouraged to testify.
DEADLINE FOR INTERVENTION
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case No. AVU-G-00-5 for the purpose of presenting evidence or cross-examining witnesses at hearing must file a Petition to Intervene with the Commission pursuant to Rules of Procedure 72 and 73 of the Commission’s Rules of Procedure, IDAPA 31.01.01.072 and -073. Persons intending to participate at the scheduled hearings must file a Petition to Intervene on or before Friday, January 12, 2001.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views without parties’ rights of participation and cross-examination are not required to intervene and may present their comments without prior notification or to other parties.
SUSPENSION OF PROPOSED EFFECTIVE DATE
YOU ARE FURTHER NOTIFIED that given the workshop/hearing schedule above, and to provide sufficient time for the Commission to complete its hearings and consider the public comments in this case, the Commission finds that the January 11, 2001 Company-proposed effective date for implementation of the change in its natural gas rates and charges in Case No. AVU-G-00-5 should be suspended to February 8, 2001, or until such earlier time as the Commission may issue its Order approving, rejecting or modifying the Company’s Application. Reference IDAPA 31.01.01.134.02.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has preliminarily determined that the public interest may not require a technical hearing to consider the issues presented, and that the issues raised by the Company’s filing may be processed under Modified Procedure. Reference IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Commission will not hold a technical 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 FUTHER NOTIFIED that in addition to the public workshops and hearings identified about, the Commission solicits written comments regarding the requested increase in natural gas rates and charges. The deadline for filing written comments with respect to the Application and the use of Modified Procedure in Case No. AVU-G-00-5 is Friday, January 26, 2001. The Commission has extended the comment period beyond the standard 21 days to give the public additional time to provide written comment regarding the Company’s Application and the proposed increase. IDAPA 31.01.01.202.02.
YOU ARE FURTHER NOTIFIED that if no protests or comments are received within the deadline, the Commission may consider the matter and enter its Order without a technical hearing. If protests or comments are filed within the deadline, the Commission will consider them and may set the matter for further hearing or may decide the matter and issue its Order on the basis of the record and written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning this Application must be mailed to the Idaho Public Utilities Commission and Avista Corporation dba Avista Utilities—Washington Water Power Division (Idaho) at the following addresses:
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
PO BOX 3727
SPOKANE, WA 99220

and

DAVID MEYER, ESQ.
SR VP & GENERAL COUNSEL
AVISTA CORPORATION
PO BOX 3727
SPOKANE, WA 99220-3727
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-00-5 together with the accompanying exhibits and workpapers can be reviewed at the Commission’s office in Boise and at the Idaho offices of Avista Corporation dba Avista Utilities—Washington Water Power Division (Idaho) during regular business hours.

O R D E R
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED and the Commission does hereby suspend the proposed effective date for the proposed tariff change in Case No. AVU-G-00-5 from January 11, 2001 to February 8, 2001.
IT IS FURTHER ORDERED and the Commission does hereby solicit testimony and written comment on the Company’s Application as more particularly described above, and in accordance with the foregoing schedule.
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-00-05_sw2

NOTICE OF APPLICATION
NOTICE OF PUBLIC WORKSHOPS AND HEARINGS
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINE
ORDER NO. 28602 1

Office of the Secretary
Service Date
December 21, 2000