20071126notice_of_application_order_no_30467.pdf

Office of the Secretary
Service Date
November 26, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION DBA A VISTA
UTILITIES FOR AN ORDER
AUTHORIZING A CHANGE IN
DEPRECIATION RATES
CASE NOS. AVU-07-
AVU-07-
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 30467
On November 2007, Avista Corporation dba Avista Utilities filed an Application
requesting that the Commission approve changes to the Company s depreciation rates for electric
and natural gas property. A vista serves customers in Washington, Idaho and a small portion of
Oregon. The Company seeks an effective date for the proposed changes to its depreciation rates
of January 2008.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that A vista last changed its Idaho depreciation
rates in September 2004 in accordance with Order No. 29602. In that Order, the Commission
adopted an agreement between the Company and Staff to synchronize depreciation rates so that
Idaho rates would become effective with new depreciation rates approved by the Washington
Utilities and Transportation Commission (WUTC).
YOU ARE FURTHER NOTIFIED that in April 2007, Avista filed an application
with the WUTC to increase its rates for electric and natural gas service. Included in the
Company s Application was a proposal to change its depreciation rates based upon a new
depreciation study completed by Gannett Fleming, Inc. The depreciation study was based upon
depreciable electric, gas and common plant in-service as of December 31 , 2004. Application at
YOU ARE FURTHER NOTIFIED that in October 2007 , Avista, the WUTC staff
and other intervenors in the Washington rate case agreed to accept the depreciation rates
proposed in the depreciation study with four exceptions proposed by the WUTC staff. The
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30467
WUTC staff proposed reductions in negative net salvage values A vista uses to determine new
depreciation rates in four electric accounts - changes which result in lowered depreciation
accrual rates than were proposed in the study. The four accounts include: Account 311 -
Structures & Improvements; Account 312 - Boiler Plant Equipment; Account 356 - Overhead
Conductor and Devices; and Account 369 - Services. Id. at 3. On October 29 2007, the parties
in the Washington case settled all remaining issues in the general rate case including an
agreement for an effective date of January 2008. The Company notes that neither the
stipulated depreciation rates nor the settlement of all the remaining issues has yet been approved
by the Washington Commission.
YOU ARE FURTHER NOTIFIED that the Company Idaho depreciation
Application updates the Company s depreciation study based upon all plant in-service as of
December 31 , 2006. Commensurate with the depreciation settlement in Washington, the
Company asserts that the annual depreciating expense for electric property in Idaho should be
increased by approximately $128 000 and decreased by approximately $132 000 for its natural
gas property. Id. at 4. Approval of the new depreciation rates would be for accounting purposes
only and the Company does not seek a change in customer service rates at this time. If approved
the new depreciation rates would become effective January 1 , 2008 and the net change
depreciation rates "would be reflected in Avista s next general rate case.Id. at 4-5. Staff
anticipates that the Company s next general rate case will be filed in the spring of2008.
YOU ARE FURTHER NOTIFIED that the Company requests that the Commission
process its depreciation application under Modified Procedure. In support of its Application, the
Company has submitted prefiled testimony of David DeFelice, Senior Business Analyst, with
four exhibits.
YOU ARE FURTHER NOTIFIED that the Application, prefile testimony of Mr.
DeFelice and his exhibits are available for public inspection during regular business hours at the
Commission offices. The Application and prefile testimony and exhibits are also available on
the Commission s Website at www.puc.idaho.gov under the "File Room" icon and then "Electric
Cases" and "Gas Cases.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30467
DEADLINE FOR INTERVENTION
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
must file a Petition to Intervene with the Commission pursuant to this Commission s Rules of
Procedure 72 and 73 , IDAP A 31.01.01.072 and -073. Persons intending to participate at the
hearing must file a Petition to Intervene on or before December 5, 2007. Persons seeking
intervenor status shall also provide the Commission Secretary with their electronic mail address
to facilitate further service in this matter.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views
without parties' rights of participation and cross-examination are not required to intervene and
may present their comments without prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that once the deadline for intervention has
passed, the Commission Secretary shall issue a Notice of Parties. After the Notice of Parties is
issued, the Commission anticipates that the parties will informally convene to devise a
recommended schedule to process this case and discuss the proposed changes in depreciation
rates. In addition to the schedule, the parties may discuss discovery logistics, electronic service
and other scheduling matters.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code and specifically Idaho Code 9 61-525. 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, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this case shall file a
Petition to Intervene with the Commission no later than December 5, 2007.
IT IS FURTHER ORDERED that after the Notice of Parties is issued, the Staff shall
convene an informal prehearing conference with the parties to discuss the processing and the
issues in this case.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30467
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J.~.f4.
day of November 2007.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~~JJ
J a D. Jewel
missIOn Secretary
bls/O:A VU-07-- A VU-07-03 _
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30467