20060428notice_of_application_order_no_30026.pdf

Office ofthe Secretary
Service Date
April 28, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION DBA A VISTA
UTILITIES FOR AN ORDER APPROVING A
CORPORATE REORGANIZATION TO
CREATE A HOLDING COMPANY, AVA
FORMATION CORP.
CASE NOS. AVU-06-
A VU-06-
NOTICE OF APPLICATION
NOTICE OF WORKSHOP
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 30026
On February 16, 2006, Avista Corporation dba Avista Utilities ("Avista" or
Company ) filed an Application with the Idaho Public Utilities Commission seeking an order
for authority to conduct a corporate reorganization and form a holding company to be known as
A V A Formation Corp. This Commission has the jurisdiction over such request pursuant to
Idaho Code ~ 61-328.
THE APPLICATION
YOU ARE HEREBY NOTIFIED that in its Application, Avista has requested an
order granting the Company authority to modify its current corporate structure through the
establishment of a holding company. The holding company, A V A Formation Corp. (the "Parent
Corporation ), would be formed as the parent company of the existing regulated company,
A vista Corporation. The Parent Corporation would also be the parent company of A vista
Capital, Inc., which would continue to hold non-regulated subsidiaries.
YOU ARE FURTHER NOTIFIED that Avista Corporation, doing business as Avista
Utilities, is currently the corporate parent. The proposed structure would make Avista Utilities a
separate company under the Parent Corporation and A vista Corporation would no longer exist as
an operating entity.
YOU ARE FURTHER NOTIFIED that Avista states that due to the recent repeal of
the Public Utilities Holding Company Act of 1935 (PUHCA), the Company considers it to be in
the best interest of customers and shareholders to change the corporate structure of A vista by
NOTICE OF APPLICATION
NOTICE OF WORKSHOP
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30026
forming a holding company structure. The Company believes that this reorganization would
provide additional protection for ratepayers by "ring fencing" or further separating utility
operations from the Company s other non-regulated businesses.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Idaho Code ~ 61-328. Section 61-328 prohibits Avista from transferring any
interest in A vista without the written authorization of this Commission. Before authorizing such
a transaction, the Commission must find that: (1) the transaction is consistent with the public
interest; (2) the cost of and rates for supplying service will not be increased by reason of such
transaction; and (3) Avista has the bona fide intent and financial ability to operate and maintain
Avista s operation in Idaho. The Commission may attach conditions to its authorization and
enter any final Order consistent with its authority under Title 61.
NOTICE OF WORKSHOP
YOU ARE FURTHER NOTIFIED that a public workshop is scheduled to
commence at 10:00 A.M. ON TUESDAY, MAY 16, 2006 IN THE COMMISSION
HEARING ROOM LOCATED AT 472 W. WASHINGTON STREET, BOISE, IDAHO
(208-334-0300). The purpose of the public workshop will be for the Commission Staff
Company and interested parties to discuss issues arising out of the Application.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and in particular
Idaho Code ~ 61-328. The Commission may enter any final Order consistent with its authority
under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has preliminarily
determined that the public interest may not require a hearing to consider the issues presented in
this case and that issues raised by the Company s filing may be processed under Modified
Procedure, i.e., by written submission rather than by hearing. IDAPA 31.01.01.201-204. In so
doing, the Commission notes that Modified Procedure and written comment have proven to be
an effective means for obtaining public input and participation.
NOTICE OF APPLICATION
NOTICE OF WORKSHOP
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30026
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. IDAP A 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no protests or written comments are
received within the deadline, the Commission will consider the matter and enter its Order
without a hearing. If protests or comments are filed within the deadline, the Commission will
consider them and may, in its discretion, set the matter for hearing or decide the matter and issue
its Order on the basis ofthe written positions before it. IDAP A 31.01.01.204.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments
or protests with respect to the Company s filings and the Commission s use of Modified
Procedure in this case is June 16, 2006. Persons desiring a hearing must specifically request a
hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that written comments concerning Case Nos.
A VU-06-l and A VU-06-l should be mailed to the Commission and to Avista at the
addresses reflected below.
Street Address For Express Mail:
Kelly O. Norwood
David J. Meyer
A vista Corporation
PO Box 3727
1411 E. Mission Avenue, MSC-
Spokane, WA 99220-3727
E-mail: kelly.norwood~avistacorp.com
da vid.meyer~avistacorp. com
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
472 W. Washington Street
Boise, ID 83702-5983
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s homepage located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to the Company at the e-mail addresses listed
above.
NOTICE OF APPLICATION
NOTICE OF WORKSHOP
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30026
ORDER
IT IS HEREBY ORDERED that a workshop shall be held on May 16 2006 in order
for Staff, the Company and interested parties to discuss issues arising out ofthis matter.
IT IS FURTHER ORDERED that this case be processed under Modified Procedure.
Persons interested in submitting written comments regarding this case or protesting the use
Modified Procedure must do so no later than June 16, 2006.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J.. 7
tt..
day of April 2006.
! .
P AUL KJELr:~ DER, PRESIDENT
d~,
ARSHA H. SMITH, COMMISSIONER
ATTEST:
, D. Jewell Co ISSlOn Secretary
O:A VU-O6-A VU-O6-
NOTICE OF APPLICATION
NOTICE OF WORKSHOP
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30026