20010122.min.doc

MINUTES OF DECISION MEETING
JANUARY 22, 2001 - 1:30 PM

In attendance were Commissioners Dennis Hansen, Marsha Smith, and Paul Kjellander.

Commissioner Hansen called the meeting to order. The first order of business was approval of items 1-3 on the CONSENT AGENDA. There were no questions or discussion on any of the items. Commissioner Hansen moved for approval of the Consent Agenda items with Staff's recommendations. A vote was taken and the motion carried unanimously.

The next order of business was MATTERS IN PROGRESS:

Scott Woodbury's January 19, 2001 Decision Memorandum re: Interest Rate—Deferred Gas Costs. Case No. AVU-G-00-04.

Mr. Woodbury reviewed his Decision Memorandum. Commissioner Hansen asked if the rate could change again if the feds were to lower their rates in March. He questioned if that would have the effect of bringing the rate down again. Mr. Woodbury replied that it would bring it closer.

Commissioner Smith asked if the Company responded to the Staff's memo. Mr. Woodbury said he spoke with Brian Hirschkorn last week and gave the Company the opportunity to consider if it wanted to reply. He said he spoke with Mr. Hirschkorn again this morning and he indicated they wanted to stand by their filing. He said Mr. Hirschkorn wanted him to express that if the rates aren't brought into alignment the company has less incentive to continue carrying this deferred balance.

Commissioner Smith asked about the customer deposit rate change January 1st. She wanted to know if that is the date Avista can change the interest on the deferral. Ms. Carlock replied affirmatively.

There were no further questions. Commissioner Hansen made a motion that we continue to accrue interest on the PGA balance at the customer deposit rate. He noted that if we were to make a change it could lead to additional expense and we could be changing things off and on. He stated he was comfortable with staying the way it is. There was no discussion on the motion. A vote was taken and the motion carried unanimously. The meeting was then adjourned.

Dated at Boise, Idaho this ____ day of February, 2001.

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COMMISSION SECRETARY