HomeMy WebLinkAbout20060922Decision memo.pdfDECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:CECELIA A. GASSNER
DATE:SEPTEMBER 22, 2006
SUBJECT:A VISTA'S APPLICATION TO INCREASE THE COMPANY'S ENERGY
EFFICIENCY TARIFF SCHEDULE 191; CASE NO. A VU-06-
On September 14, 2006, Avista Corporation doing business as Avista Utilities filed
its Application to increase the Company s Energy Efficiency Tariff Schedule 191. Schedule 191
is designed to recover the costs incurred by the Company associated with providing natural gas
efficiency services to customers. The Company requested Modified Procedure and an effective
date of the new tariff of October 2006.
THE APPLICATION
According to A vista s Application, the proposed increase in the Schedule 191 rate is
necessary to continue to fund ongoing natural gas-efficiency programs as set forth in A vista
more recent Integrated Resource Plan for natural gas service and to amortize a deficiency
balance within the natural gas Demand Side Management (DSM) tariff rider resulting from the
Company s response to customer demand for the services that was higher than expected. The
Company asserts that the proposed increase will not result in a change in profits for the
Company.
A vista states that the existing and planned expenses for the DSM programs are far
exceeding revenues. The tariff rider for DSM programs has not changed since 2001. A vista
states that as of the close of August 2006, its natural gas DSM tariff rider balance for Idaho is
negative $1.5 million. The proposed tariff rider increase is estimated to erase this liability
balance by the end of the second quarter of2008.
DECISION MEMORANDUM
The Application states that the proposed increase is a 1.4% increase, as expressed as
a percentage of present gas revenue. The proposed rates will result in a 1.75% total charge for
DSM.
A vista states that all Schedule 191 funds will remain within the natural gas efficiency
rider programs. A vista will continually assess demand for the services and program financial
balances and propose revisions to Schedule 191 as needed. The Company states that the
programs are cost-effective and that the additional funding will expand the availability of the
programs. The Company provided a copy of its customer notice and press release announcing the
proposed tariff change.
ST AFF RECOMMENDATION
Staff recommends that this matter be processed by Modified Procedure. In a letter
accompanying the Application, the Company has requested an effective date of October 13
2006. In order to allow Staff to conduct the necessary audit and analysis of the proposed tariff
change, Staff recommends that the proposed effective date be suspended for thirty (30) days
until November 13 , 2006 , with a comment deadline of October 31 , 2006.
COMMISSION DECISION
Does the Commission preliminarily find that the public interest may not require a
hearing to consider the issues presented, and that this proceeding may be processed under
Modified Procedure?
Does the Commission wish to suspend the proposed effective date of the tariff for
thirty (30) days?
Does the Commission wish to direct Staff to conduct a public workshop, pursuant to
Rule 125, prior to Staff filing comments in this case?
Does the Commission wish to schedule a public hearing for this matter?
Does the Commission wish to set a deadline of October 31 , 2006 for submitting
comments?
cec
DECISION MEMORANDUM