20030815Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN HAMMOND
DATE:AUGUST 15,2003
SUBJECT:IN THE MATTER OF THE APPLICATION OF A VISTA UTILITIES FOR
AUTHORITY TO INCREASE ITS NATURAL GAS RATES FOR
SERVICE, CASE NO. AVU-03-
On August 5 , 2003, Avista Utilities, a unit of Avista Corporation, filed an
Application for authority to place into effect new rate schedules that would increase the
Company s estimated annual natural gas revenue by $1.2 million or by about 2.4%. The
Company s customer notice and press release represent that should the Commission approve this
proposed increase the average increase for all customer rates would be 2.5%. Specifically, the
Company states that residential and small business customers served under Schedule 101 using
an average of 70 therms per month can expect to see an average increase of $1.39 per month or
about 2.5%. Larger commercial customers served under Schedules 111 and 121 would expect to
see an average increase of 2.8% and 3%, respectively, with the higher increase percentages due
to the lower base rates. The Company has requested an effective date of September 15, 2003, for
its proposed rate schedules.
THE APPLICATION
A vista seeks with this Application to pass through to each of its customer classes the
change in gas related costs resulting from: (1) an increase in the Company s weighted average
cost of gas (W ACOG), and 2) the proposed recovery of the previous timing differences
accumulated in the Company s gas deferral account over a 12 month period.
DECISION MEMORANDUM
The Company also proposes that if it is agreeable to both parties that the large
transportation and interruptible customers be given an option of receiving/paying a portion of the
deferred gas costs either through a lump sum credit/charge or through an amortization rate.
A vista requests that the Commission process its Application by Modified Procedure
pursuant to Rules 201 through 204 of the Commission s Rules of Procedure. The Company also
states that it stands ready for immediate consideration of this matter.
STAFF RECOMMENDATION
After reviewing the Company s filing the Commission Staff recommends that the
Commission suspend Avista s Application until October 1 , 2003 , in order to accommodate for
public workshops and written comments to be filed. It is Staff s understanding that A vista does
not object to this suspension. Staff also recommends that the Commission process this case
using Modified Procedure, (i., by written submission) under the Commission s Rules of
Procedure. IDAPA 31.01.01.201-204. In processing this case by Modified Procedure Staff
recommends that the Commission schedule a public workshop(s) in the Company s service
territory where the Staff will make a presentationes) on and answer questions about the
Company s Application. Finally, Staff recommends that the Commission establish comment
deadlines for Staff, interested persons and parties and the Company, subsequent to any public
workshops.
COMMISSION DECISION
Does the Commission wish to suspend the Company s Application?
Does the Commission wish to process this case under Modified Procedure using the
recommendations made above?
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DECISION MEMORANDUM