20040817Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
For Immediate Release
Case No. A VU-03-
August 16, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Commission accepts A vista Gas plan
Boise - The Idaho Public Utilities Commission is accepting a long-range gas supply plan for
A vista Utilities, called an Integrated Resource Plan, but is asking the company to report back on
how Washington state s rejection of a gas purchase mechanism could impact Idaho ratepayers.
A vista s "benchmark mechanism" established a cost for natural gas for Washington, Oregon and
Idaho at the first of very month based on a\l assumed volume purchase from each of the three gas
supply basins serving the Northwest. A vista Energy, an affiliate of A vista Utilities, managed the
program.
In February, the Washington Utilities and Transportation Commission, in a split decision, found
that A vista s benchmark mechanism did not provide adequate safeguards for transactions
between affiliates such as A vista Utilities and A vista Energy. In response, A vista Utilities
proposes to hire additional personnel so it can return to internally purchasing natural gas for its
customers, including those in Idaho, by April 1 , 2005.
Noting that some aspects of the benchmark mechanism benefited Idaho customers, the Idaho
commission is concerned that Washington s decision may result in increased costs to Idaho. The
Idaho commission is asking A vista to supply it with copies of all benchmark mechanism
transition documents submitted in the company s other states and to address the regulatory
consequences and economic and operational impacts in Idaho that will result from terminating
the program.
Other facets of Avista s overall Integrated Resource Plan include continuing gas and electric
efficiency activities that are funded by a 0.5 percent tariff rider on customer bills. The rider
generates about $1 million per year. Some gas efficiency programs for residential customers
include funding assistance for programmable thermostats, high-efficiency gas furnaces, high-
efficiency gas water heating and weatherization. Qualified low-income customers are eligible to
receive incentives from community action agencies within Avista s service territory.
A vista Utilities, headquartered in Spokane, provides gas and electric service in eastern
Washington, northern Idaho and southern Oregon. Avista has about 60 000 natural gas customers
in northern Idaho.
Copies of the commission s order and other documents related to this case are available on the
commission s Web site at www.puc.state.id.. Click on "File Room " and then on "Gas Cases
and scroll down to the case number, A VU-03-2. Copies are also available for public
inspection at the commission s office at 472 W. Washington St. in Boise or at Avista Utilities
offices.
Persons wishing to petition for reconsideration of the commission s order must do so by no later
than Aug. 23.
END