20080822Lobb Di Support Stipulation.pdf

BEFORE THE
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IDAHO PUBLIC UTILITIES COMMISSlQN,
, .
~ ~; L.. i .~ IL.... \,.
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR THE ) CASE NO. AVU-E-08-1
AUTHORITY TO INCREASE ITS RATES) AVU-G-08-1
AND CHARGES FOR ELECTRIC AND )
NATURAL GAS SERVICE TO ELECTRIC )
AND NATURAL GAS CUSTOMERS IN THE )STATE OF IDAHO )
)
)
DIRECT TESTIMONY OF RANDY LOBB
IN SUPPORT OF STIPULATION
IDAHO PUBLIC UTILITIES COMMISSION
AUGUST 22, 2008
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Q.Please state your name and business address for
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A.My name is Randy Lobb and my business address is
472 West Washington Street, Boise, Idaho.
Q.By whom are you employed?
A.I am employed by the Idaho Public Utilities
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Q.What is your educational and professional
background?
A.I received a Bachelor of Science Degree in
Agricultural Engineering from the University of Idaho in
1980 and worked for the Idaho Department of Water Resources
from June of 1980 to November of 1987. I received my Idaho
license as a registered professional Civil Engineer in 1985
and began work at the Idaho Public Utilities Commission in
December of 1987. My duties at the Commission currently
include case management and oversight of all technical
Staff assigned to Commission filings. I have conducted
analysis of utility rate applications i rate design, tariff
analysis and customer petitions. I have testified in
numerous proceedings before the Commission including cases
dealing with rate structure, cost of service, power supply,
line extensions, regulatory policy and facility
acquisitions.
Q.What is the purpose of your testimony in this
CASE NO. AVU-E-08-1/AVU-G-08-1
08/22/08
LOBB, R. (Di)
STAFF
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A.The purpose of my testimony is to describe the
principal components of the filed Stipulation (the Proposed
Settlement) and to explain the rationale for Staff's
support.
Q.Please summarize your testimony.
A.Staff believes that the comprehensive Proposed
Settlement agreed to by all parties is in the public
interest, is just and reasonable and should be approved by
the Commission.
Staff i S support is based on its review of the
Avista gas and electric rate case filing i a comprehensive
audit of Company test year results of operations and
consideration of the rate case issues it intended to
present if this case were fully litigated.
The Company originally proposed a revenue
increase of $32.33 million for electric service and $4.7
million for natural gas service for an overall base rate
increase of 16.7% and 5.8% respectively. The Company
proposed a 10.80% return on equity. The Proposed
Settlement specifies an annual revenue requirement increase
of $23.16 million on the electric side and $3.88 million on
the gas side for an overall increase of 11.98% and 4.7%,
respectively. The parties agreed to a return on equity of
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CASE NO. AVU-E- 08 - 1/AVU-G- 08 - 108/22/08 LOBB, R. (Di) 2
STAFF
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The primary focus of Staff in its review of the
Company's filing was to evaluate the 2007 historic results
of operations for gas and electric service, assess the
adjustments made by the Company to those test year costs
and develop a reasonable revenue requirement. Other areas
investigated included class cost of service, rate design,
prudency of DSM expenditures and affordability.
While Staff' s comprehensive audit and review of
the Company's filing identified a variety of adjustments to
the requested increase, the overwhelming cost drivers were
found to be critical facility investment and the rising
market price of purchased electricity and natural gas.
Staff's revenue requirement investigation
included a review of the Company's capital investment in
transmission, generation and metering i expense increases in
operation and maintenance i fuel and salaries. Staff also
evaluated test year expenditures to determine what costs
were known and measureable and used and useful in providing
service.
The cost of service study used by the Company in
this case was the same study used in the 2004 rate case.
While useful in assigning general revenue responsibility
for the customer classes, the study utilized stale load
data and was not accurate enough to make meaningful changes
in class revenue contribution or justify significant
CASE NO. AVU-E- 08 - 1/AVU-G- 08 - 108/22/08 LOBB , R . (D i )
STAFF
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changes in rate design. Based on its revenue requirement
analysis and cost of service and rate design evaluation,
Staff concluded that relatively few facts in this case were
in dispute. Staff believed that rather than face the
uncertainty of processing the case through a contested
technical hearing, customers could be best served by
bringing the parties together, candidly discussing its case
and negotiating a favorable settlement of issues.
Recognizing also the very real impact that higher
gas and electric costs will have on the low income
customers of Avista, the Proposed Settlement includes a
commitment to investigate alternatives to help mitigate
those impacts.
The Settlement
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16 Settlement?
Q.What are the key components of the Proposed
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A.The Proposed Settlement is attached as Staff
Exhibi t No. 101. The key components of the proposed
Settlement include an increase in the annual electric
revenue requirement of $23.16 million or 11.98% and an
increase in the annual natural gas revenue requirement of
$3.88 million or 4.74%. The revenue requirement was
established using a return on equity of 10.20%, a debt cost
of 6.84% and a capital structure of 48%/52% to produce an
overall return of 8.45%.
CASE NO. AVU-E-08-1/AVU-G-08-108/22/08 LOBB , R . (D i ) 4
STAFF
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The negotiated adjustments to the Company's
original request removed over $9 million from the proposed
electric increase through deferral of pending capital and
expense additions, removal of pro formed test year costs as
not known and measurable or not used and useful, and
elimination or reduction of inappropriate or unjustified
costs. Nearly all of the adjustments made in the natural
gas revenue requirement resulted from allocated adjustments
made in electric revenue requirement.
The Proposed Settlement is based upon a 2007
historic test year adj usted for known and measurable
expense changes and major capital additions through 2008.
It also specifies the use of 2009 power supply costs in the
Power Cost Adjustment (PCA) mechanism and treatment of
power supply costs associated with growing load (retail
load and revenue credit) .
Other issues addressed in the Proposed Settlement
include verification of prudent DSM expenditures, a uniform
increase in all customer class revenue except Potlatch
Schedule 25P, and an increase in the residential customer
charge for both electric and natural gas service. No other
rate design changes were included.
Finally, the parties agreed to a series of
commitments for customers including increased low income
DSM funding, educational outreach for low income customers
CASE NO. AVU-E- 08 - 1/AVU-G- 08 - 1
08/22/08
LOBB, R. (Di)
STAFF
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and the need to address energy affordability through
generic workshops.
Revenue Requirement
Q.How did Staff identify adjustments to the
Company's case and what were the primary considerations in
reaching agreement on the stipulated revenue requirement?
A.Staff identified issues in this case by reviewing
the Company's rate case filing and conducting a
comprehensive audit of Company test year results of
operations. Staff then identified adjustments to the
Company proposed revenue requirement. The procedure used
by Staff in this case was the same process it uses in
preparing for a contested proceeding.
Staff then evaluated the justification for each
of the proposed revenue requirement adj ustments to
determine at what level they could be successfully
supported at hearing. Staff established an overall revenue
requirement target that it believed could be achieved with
reasonable and reliable certainty and then negotiated
identified adjustments that had debatable and less
compelling justification to arrive at an overall revenue
requirement compromise.
Staff's ultimate goal was to balance the needs of
the Company for adequate revenue while securing the lowest
reasonable rates for customers.
CASE NO. AVU-E-08-1/AVU-G-08-1
08/22/08
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STAFF
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Q.What type of adjustments did Staff identify and
how were they evaluated for settlement?
A.The single largest adjustments identified by
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and measurable" or not "used and useful." For example,
Spokane River Relicensing costs, confidentially negotiated
agreements and expense increases/capital additions beyond
2008 were all adjustments associated with timing. Either
the proj ects were incomplete or future cost increases were
estimated or projected.
Staff believed it possible that some of the
larger timing adjustments could potentially be eliminated
or cured by the Company as proj ects and contract terms were
finalized by the time the case was processed through
hearing.
Q.Why was the Staff unable to identify more
definitive adjustments in the Company's proposed revenue
requirement?
A.The primary reason is that the Company simply
filed a relatively clean case and mitigated the effect of
many big ticket increases on which Staff has traditionally
focused its investigation. For example, the Company
proposed to include capital additions through the end of
2008 and utilize a year-end 2008 rate base rather than a
2008 average. The Company then offset most of the
CASE NO. AVU-E-08-1/AVU-G-08-1
08/22/08 LOBB, R. (Di)
STAFF
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resulting $29 million increase by subtracting from rate
base an entire year of depreciation expense and adjusting
for deferred taxes. The net effect of the proposal was an
increase in rate base of only $716,000 and a revenue
requirement increase of less than 1%.
The Company also proposed to calculate power
supply costs based on projected 2009 loads. It then
reduced the base rate revenue requirement by implementing a
Production Property Adjustment to reflect the fact that
10 2007 loads were used to recover costs. In addition, the
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Company applied a hydro mitigation adj ustment to purposely
reduce estimated power supply costs recovered through base
13 rates. Actual costs will be tracked through the PCA but
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only at 90% of what would have been collected through base
rates.
For natural gas service $3 million of the $3.8
million increase agreed to in the Proposed Settlement is
associated with acquisition of Jackson Prairie natural gas
storage and installation of Automated Meters (AMR).
Additional storage will provide benefits to gas customers
through the annual Purchase Gas Adj ustment (PGA) and AMR
provides significant savings in meter reading/customer
service expenses.
Finally, much has been made of executive
compensation. Newspaper reports cite total compensation
CASE NO. AVU-E-08-1/AVU-G-08-1
08/22/08
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STAFF
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for the top five Avista executives of approximately $3.6
million per year. The Proposed Settlement is based on
compensation of $1.45 million per year or only 40% of total
compensation. While still seemingly high, if all the
compensation included in rates for the top 12 Avista
executives were eliminated, the effect would be a rate
reduction of less than 0.5%.
Return On Equity
Q.What is the return on equity specified in the
Proposed Settlement and how was it determined?
A.The Proposed Settlement specifies a return on
equity of 10.2%. This return is certainly within the range
that Staff would have recommended had the issue gone to
hearing. A 10.2% return was approved in Avista's recent
Washington settlement and is reasonable given the improved
financial performance of the Company and improved credit
rating upgrades by S&P and Moody's. It also recognizes the
ongoing capital requirements of the Company and the need
for investment grade ratings ("BBB- "or higher by Standard &
Poor's or "Baa-" or higher by Moody's) .
Net Power Supply Cost
Q.Please explain how net power supply costs were
established at stipulated levels.
A.Staff reviewed all of the inputs and assumptions
used by the Company in the AURORA model to determine net
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STAFF
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normalized power supply costs. Because the results
obtained using AURORA are particularly sensi ti ve to
assumptions about natural gas prices, and because gas
prices have been extremely volatile since the time the
Company performed its analysis and filed its case, Staff
carefully examined the effect of different gas prices by
performing numerous simulations using gas price forecasts
from many sources and forward prices for 2009. In
addition, because pro forma power supply costs were based
on forecasted 2009 loads, Staff performed numerous
simulations to examine the effect of different load
assumptions. Staff concluded that the inputs and
assumptions used by Avista, including those related to fuel
prices and loads, were reasonable.
Q.Could gas prices and net power supply costs have
been higher than those agreed to in the Proposed Settlement
if argued at hearing?
A.Possibly. While natural gas prices have
moderated recently, they are still higher than those used
by the Company in calculating net power supply costs.
Incorporating higher gas costs in the power supply analysis
at a later date could have increased net power supply costs
recovered in base rates.
Q.Why has Staff agreed to the use of 2009 loads in
the calculation of base power supply costs?
CASE NO. AVU-E- 08 - 1/AVU-G- 08 - 108/22/08 LOBB, R. (Di) 10
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A.Staff has agreed to the use of 2009 loads in
recogni tion that normalized power supply costs included in
base rates are always based on an estimate or a forecast.
Use of 2009 forecasted load in the calculation does not
make the cost any less known and measurable.
In addition, the Company has also included in its
calculation, a hydro mitigation adjustment that reduces
base rate power supply costs and a production property
adjustment that reduces base rate revenue requirement for
generation to serve 2009 loads. The effect of these
adjustments is to shift costs from base rate recovery to
PCA recovery with reduced impact on customers due to PCA
cost sharing. The Company benefits from using 2009 loads
by reducing its exposure to the retail revenue adjustment
embedded in the PCA.
Q.Did Staff identify any adjustments to the
Company's proposed power supply costs?
A.Yes. In addition to a thorough review of the
Company i s AURORA analysis, Staff reviewed each of the
adjustments made to reflect contract changes between the
2007 test period and the 2009 pro forma period. Staff
determined that several adjustments to purchase contracts
beyond 2008 were not known and measurable. Those
adjustments were discussed during settlement negotiations,
and incorporated in an annual $735,000 reduction in the
CASE NO. AVU-E- 08 - 1/AVU-G- 08 - 108/22/08 LOBB, R. (Di) 11
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Priest Rapids contract price recoverable in rates.
Cost of Service
Q. What did Staff review with respect to cost of
service (COS) and what have the parties agreed to in the
Proposed Settlement with respect to class specific revenue
requirement?
A.Staff has reviewed both cost of service models
for electric and gas service and found that the methodology
did not change from the Company's last general rate case
filing in 2004. However, Staff noted and Avista
acknowledged that electric load data used in the COS was
generated in the 1980s and statistically updated in 1993.
Therefore, given the age of the load data, Staff believes
the cost of service results in this case should be used
only as a general guideline for assigning revenue
responsibility.
While the Company has agreed to engage in new
load studies, the information necessary to update the cost
of service analysis will not be available until 2009.
Consequently, the parties agreed to use the current results
to move all classes halfway to cost of service as specified
by the study.
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24 classes?
Q.Will the increase be uniformly spread among all
A.Yes, with one exception each customer class will
CASE NO. AVU-E- 08 - 1/AVU-G- 08 - 108/22/08 LOBB, R. (Di) 12
STAFF
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receive a uniform increase of 12.33%. Schedule 25P,
service to Potlatch's Lewiston plant, will receive an
3 increase of 10.36%. The 10.36% increase moves Potlatch
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approximately halfway to cost of service similarly to other
classes yet maintains an energy rate that is lower than the
rate charged to Schedule 25 customers. The parties agreed
to the revenue spread in recognition that Potlatch is much
larger than customers served under industrial Schedule 25,
it has a higher load factor and should pay a lower overall
energy rate.
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Q.What revenue spread is proposed for natural gas
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A.The parties propose to increase all gas rate
schedules based on the natural gas cost of service study as
originally proposed by the Company. The resulting revenue
increase was reduced proportionally to reflect the overall
4.74% increase specified in the Proposed Settlement.
Rate Design
Q.How did the Staff evaluate electric and natural
gas rate design and how is rate design addressed in the
Proposed Settlement?
A.Staff evaluated existing electric and natural gas
rate design by reviewing the cost of service study and
comparing current rate components to those of other
utilities. Neither Avista nor Staff believed major changes
CASE NO. AVU-E-08-1/AVU-G-08-1
08/22/08
LOBB, R. (Di) 13
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in rate design were warranted given the imprecise and
inaccurate nature of the Company's COS study. In addition,
Avista remains the only electric utility under Commission
jurisdiction with true residential tiered rates, with a
differential of 13% for usage over 600 kWh/month.
The parties agreed to an increase in the monthly
customer charge from $4.00 to $4. 60/month for electric
customers and from $3.28 to $4.00/ month for gas customers.
All other rate components were increased uniformly to
generate the required revenue. This rate design represents
the original Company proposal and recognizes the increasing
monthly costs of metering and billing.
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Q.Are there any plans to address rate design in the
A.Yes. Staff and Avista have discussed adjusting
16 block size and rate differentials in the future once
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Avista will also investigate whether there are economies of
scale (bundling of electric/gas service) that could allow
reduced monthly customer charges when a customer takes both
gas and electric service. At the very least, a similar
customer charge for gas and electric service will be
considered.
Q.What is the effect on an average monthly customer
bill as a result of the Proposed Settlement?
CASE NO. AVU-E-08-1/AVU-G-08-108/22/08
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A.If the Commission were to adopt the Proposed
Settlement, the monthly bill of a residential customer
using 977 kilowatt-hours per month (the average for Avista
customers) would increase by $7.89. An average gas
customer who uses 65 therms per month would see an increase
of about $4.03 per month. Proposed increases by customer
class and a comparison of present and proposed rate
components are attached in Exhibit 101 as Appendix 2 to the
Stipulation.
Energy Affordaility
Q.What does the Proposed Settlement provide with
respect to low income issues?
A.In recognition that the proposed increase in both
electric and natural gas rates will unduly impact the
lowest income Avista customers, the parties have agreed to
two specific low income provisions. The first is an
increase in the annual low income weatherization funding
from $350,000 to $465,000. The second provision calls for
funding of $25,000 for state Community Action agencies to
provide educational assistance on energy issues in
conjunction with its other low income programs. The
increased funding required for these programs will come
from the existing DSM tariff rider and will not require a
rate increase.
Q.Are there any other low income provisions
CASE NO. AVU-E- 08 - 1/AVU-G- 08 - 108/22/08 LOBB, R. (Di) 15
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included in the Proposed Settlement?
A.Yes. Under the Stipulated Settlement, Avista has
agreed to support and actively participate in any
Commission-established workshops for the purpose of
examining issues surrounding energy affordability and
customers' ability to pay energy bills. Staff supports the
idea of workshops involving all energy utili ties serving
Idaho and is prepared to immediately proceed upon
Commission approval.
All parties to the Proposed Settlement recognize
that electric and gas rates will increase as a result of
this case, with the prospect of additional rate increases
on the horizon due to the Company's PCA and PGA cases.
Staff foresees an unrelenting and significant upward
pressure on rates, which unfortunately is occurring during
an economic downturn in the state as a whole and northern
Idaho in particular. The decline of the mining and timber
industries continues to have a negative impact on small
communi ties that have limited employment opportunities
beyond mines, mills, and logging operations.
Energy affordability has become a central issue
for many Idaho households, and utili ties are facing the
prospect of more customers being unable to pay their energy
bills in full and/or on time. Through workshops, the
Commission can help identify issues and explore possible
CASE NO. AVU-E- 08 - 1/AVU-G- 08 - 1
08/22/08 LOBB, R. (Di) 16
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solutions to anticipated problems. Staff supports this
undertaking and suggests that universal service, Low Income
Rate Assistance Plans (LIRAP) and alternative rate designs
all be included as discussion topics in the workshops.
Q.Does this conclude your testimony in this
proceeding?
A.Yes, it does.
CASE NO. AVU-E- 08 - 1/AVU-G- 08 - 1
08/22/08
LOBB, R. (Di) 17
STAFF
David 1. Meyer, Esq.
Vice President and Chief Counsel of
Regulatory and Governental Affairs
A vista Corporation
1411 E. Mission Avenue
P. O. Box 3727
Spokane, Washington 99220
Phone: [phone], Fax: [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMSSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION FOR THE
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR ELECTRIC AND
NATURA GAS SERVICE TO ELECTRIC
AND NATURA GAS CUSTOMERS IN THE
STATE OF IDAHO
)
) CASE NOS. AVU-E-08-01
) A VU-G-08-0 1
)
) STIPULATION
)
)
Ths Stipulation is entered into by and among A vista Corporation, doing
business as Avista Utilities ("Avista" or "Company"), the Sta of the Idaho Public
Utilities Commission ("Staff'), Potlatch Corporation ("Potlatch"), and the Communty
Action Parership Association of Idaho ("CAPAI"). These entities are collectively
referred to as the "Paries," and represent all paries in the above-referenced cases. The
Paries understand ths Stipulation is subject to approval by the Idaho Public Utilities
Commission ("IPUC" or the "Commssion").
I. INTRODUCTION
1. The terms and conditions of ths Stipulation are set fort herein. The Pares
agree that this Stipulation represents a fair, just and reasonable compromise of the issues - - ("I I N00 00 e.
raised in the proceeding and that ths Stipulation and its acceptance by the Commission ~ 6 ~.. i I (1o~~~ OJ
represent a reasonable resolution of multiple issues identified in this matter. The Paries, ~ ~ ~ i5 p:Z å ~ 00.t: Z :8 s:=9(1 ON.. rr ¡. ~~8 ~~Stipulation Page 1 of 12
therefore, recommend that the Commission, in accordance with RP 274, approve the
Stipulation and all of its terms and conditions without matenal change or condition.
II. BACKGROUND
2. OnApnl 3, 2008, Avista filed an Application with the Commission for
authonty to increase revenue from electnc and natual gas service in Idaho by 16.7% and
5.8%, respectively. If approved, the Company's revenues for electnc base retail rates
would have increased by $32.3 millon anually; Company revenues for natual gas
service would have increased by $4.7 millon anually. The Company requested an
effective date of May 5, 2008 for its proposed electnc/gas rate increase. By Order No.
30528~ dated April 16, 2008, the Commission suspended the proposed schedules of rates
and charges for electncand natual gas service for a penod of thirt (30) days plus five
(5) months, from May 5, 2008, or until such time as the Commission entered an Order
accepting, rejecting or modifying the Application in ths matter.
/
3. Petitions to intervene in ths proceeding were fied by Potlatch and
CAP AI. By various orders, the Commssion granted these interventions. See, IPUC
Order Nos. 30550 and 30551.
4. Public workshops for Avista customers were held on July 23,2008 in
Moscow, Idaho, and on July 24, 2008 in Coeur d Alene, Idaho, for the purose of
explaining the Company's Application, and in order to provide an opportity for
customers to ask questions of Staf.
5. On July 28, 2008, Commission Sta filed with the Commssion a Notice - - - ("I I N00 00 e.00 0I i
of Intent to Engage in Settlement Discussions. RP 272. A settlement conference was _ ~ q ~o~~~ OJ-~..CáCáå ~ 4: if p.~ å ..~
;ZZ ..M
:E ~ ¡. ~.~ Cá . 00Stipulation Page 2 of 12 ~ u ~ 0
subsequently held in the Commission offces on July 31, 2008, and was attended by
representatives of all Paries.
6. Based upon the. settlement discussions among the Paries, as a compromise
of positions in this case, and for other consideration as set forth below, the Paries agree
to the following terms:
III. TERMS OF THE STIPULATION
7. Revenue Requirement. The Pares agree that Avista shall be allowed to
implement revised tarff schedules designed to recover $23,163,000 in additional anual
electnc revenue and $3,878,000 in additional anual natual gas revenue, which represent
an 11.98% and 4.7% increase in electnc and natual gas anual base taiff revenues,
respectively. In determining these revenue increases, the Paries have agreed to varous
adjustments to the Company's filing, which are sumarzed in the Tables below and are
reflected in Appendix I and will be fuer explained in prefied testimony to be filed by
the Paries in support of the Stipulation. In addition, certn elements of the revenue
increases are fuer discussed immediately below:
(a.) Cost of Capital. The Paries agree that Avista's cost of capital shall be
determined using a capital strctue consisting of 47.94% common stock equity, and
52.06% long-term debt. Avista's authonzed retu on equity shall be 10.20%; the cost of
debt shall be 6.84%. These components produce an authorized rate of retu of 8.45%.
(b.) Other Adjustments. . The Sumiu Table of Adjustments, as set fort
immediately below, descnbes the remaining revisions to the Company's onginally-fied
electnc and natual gas revenue requiements:
Stipulation Page 3 of12
- - ("I I N00 00 e.99 0~ d ("- I I (1o~~~ OJ-~~CáCáå~~ifp.z. ~ 00.. 0 ,. 0.- Z ,. --,. 0 N
:E ~ ¡. ~:x Cá . 00~u ~o
Revenue
Requirement Rate Base
I Amount As Filed ..'$32,328 $ 548,266
SUMMARY TABLE OF ADJUSTMENTS TO ELECTRIC REVENUE REQUIREMENT
OOOs of Dollars
AdIiustments:.
Return on Equity Adjust return on equity to 10.20%(2.485)0
Power Supply -Priest RapidslWanapum Contracts $(614)(735)
(use average of '08 & '09 figures)0
-Elimination of PPM Wind Integration costs $(109)
-Reflect Kootenai Transmission contract $( 12)
Labor-Non-Exec Remove 50% of 2009 non-executive labor expense (296)0
Labor-Executive Remove 2009 executive labor expense (39)0
Transmission Rev/Exp Remove 2009 revenues and expenses 81 0
Capital Additions 2008 Includes capital investment and depreciation
through December 2008 152 1,327
Asset Management Remove 50% of 2009 expenses (489)0
Spokane River Relicensing Remove adjustment (establish deferral)(2,831)(12,039)
Confidential Litigation *Remove adjustment (establish deferral)(1,514)(8,264)
Colstrip Mercury Emission O&M Remove adjustment (533)0
Executive Incentives Remove executives' incentives (103)0
CS2 Levelized Adjustment Remove 2009 deferred return (114)0
Carbon Financial Instruments Add net revenues from sale of CFls
(CFls)(427)0
Miscellaneous A&G Expenses Remove various A&G expenses, including dues,(502)0
sponsorships, A&G study, 50% of Directors &
Offcers' insurance, and 50% of Board of Director
expenses
Production Propert Flow through impact of Production & Transmission 320 997
adjustments
Restate Debt Interest Flow through impact of Rate Base adjustments 350 0
Total Adjustments $(9,165)$ (17,979)
I Adjusted Amounts I $ 23,163 I $ 530,287 I
* Please see Andrews' Direct unredacted testimony at Pages 32-33.
Stipulation
Exhibit No. 101
Case No. AVU-E-08-1
AVU-G-08-1
R. Lobb, Staff
08/22/08 Page 4 of 23
Page 4 of 12
SUMMARY TABLE OF ADJUSTMENTS TO NATURAL GAS REVENUE REQUIREMENT
OOOs of Dollars
Revenue
Reauirement Rate Base
I Amount As Filed $4,725 $85,690
Adiustments:
Return on Equity Adjust return on equity to 10.20%(389)0
Labor-Nan-Exec Remove 50% of 2009 non-executive
labor expense (73)0
Labor-Executive Remove 2009 executive labor
expense (9)0
Capital Additions 2008 Includes capital investment and
depreciation through December
(103)(531)2008
Incentives Remove executives' incentives (23)0
Miscellaneous A&G 'Expenses Remove various A&G expenses,(260)0
including dues, sponsorships, A&G
study, 50% of Directors & Offcers'
insurance, and 50% of Board of
Director expenses
Restate Debt Interest Flow through impact of Rate Base
adjustments 10 0
Total Adjustments $(847)$(531)
I Adjusted Amounts I $3,878 I $ 85,159 I
8. Rate Effective Date. The Pares request that the Commission issue its
order approving the retail rates contaied in ths Stipulation to become effective October
1,2008.
9. Accounting Treatment for Certain Costs.
(a.) Spokane River Relicensing - The Company included the processing costs
associated with its Spokane River relicensing efforts, which expenditues included actual
life-to-date costs from April 2001 though December 31, 2007, and 2008 pro forma
expenditures though December 31, 2008. (See Andrews' Direct Testimony at page 32)
Stipulation Page 5 of 12
__ ("I I N~~ e.I I 0~d 1.- J I (1o~~~ OJ-~~CáCáå~~û5p.Z å ~ 00.t: Z :8 s:
=9 (1 0 N.. rr ¡. N~ Cá --~u ~~
Although the Company anticipates receiving a final license from the Federal Energy
Regulatory Commission ("FERC") in the near future, that has yet to occur. The
relicensing costs will remain in CWIP (Constrction Work in Progress) and the
Company will continue to accrue AFUDC until issuance of the license, at which time the
relicensing costs wil be transferred to plant in service and depreciation will begin to be
recorded. The Parties have agreed to defer as a regulatory expense item (in Account 186
- Miscellaneous Deferred Debits) on the Company's balance sheet depreciation
associated with Idaho's share of the aforementioned relicensing costs and relatéd
protection, mitigation, or enhancement expenditues, until the earlier of twelve (12)
months from the date of the issuance of the license or the conclusion of A vista's next
general rate case ("GRC"), together with a caring charge on the deferral, as well as a
caring charge on the amount of relicensing costs not yet included in rate base. The
caring charge for deferrals and rate base not yet included in establishing rates would be
the customer deposit rate at that time (presently 5%).
(b.) Confdential Litigation - Company Witness Andrews descnbes
confdential litigation at pages 32 and 33 of her prefied direct testimony (unedacted).
Inasmuch as that matter is still pending and has yet to be finally resolved, but is expected
to reach resolution in the near futue, the Paries have agreed to defer as a regulatory
expense item (in Account 186 - Miscellaneous Deferred Debits) on the Company's
balance sheet depreciation associated with Idaho share of the aforementiòned costs with
a caring charge on the deferr as well as a carg charge on the amount of costs not
yet included in rate base for subsequent recovery in rates. The carng charge will be
the customer deposit rate (presently 5%). This deferral, together with a caring charge,
will continue until the earlier of twelve (12) nionths from the date of resolution of the
litigation or until the conclusion of Avista's next general rate cas (GRC).
Stipulation Page 6 of 12
- - ("I I N00 00 e.99 0~ d \0- I I Q)o~~~ OJ-~~CáCáå~~ifp.z. ~oo.. 0 ,. 0.- Z ,. --=9 (1 0 N.. rr ¡. N~ Cá --~u ~~
(c.) Montana Riverbed Litigation - On November 1, 2007, Avista filed
an
Application with the Commission (Case No. AVU-E-07-1O) requesting an accounting
order authorizing deferral of settlement lease payments and interest accrus relating to
the recent settlement of a lawsuit in the State of Montana over the use of the nverbed
related to the Company's ownership of the Noxon Rapids and Cabinet Gorge
hydroelectnc projects located on the Clark Fork River. The Commission, in its Order
No. 30492, authonzed the deferral of settlement lease payments and delayed adecision
on interest, until the matter was addressed in ths general rate fiing. The Paries have
agreed to the Company's requested amortization of costs, together with recovery of
accrued interest on the Idaho share of deferrals at the customer deposit rate (presently
5%).
(d.) Revenues Associated with Sale of Carbon Financial Instrents (CFIs)-
On May 22, 2008 Avista filed a request with the Commssion (Case No. A VU-E-08-2) to
defer the revenues associated with the sale of Carbon Financial Instrents (CFIs) on the
Chicago Climate Exchange. ,The Company's Application was approved on Augut 5,
2008 in Order No. 30610. Idaho's share of the revenues, net of expenses, from the CFI
sales is $850,571. These dollars will be amortzed. over a two-year penod beginning in
the calendar month of the effective date of new retail rates resulting from ths Stipulation,
with a caring charge on the unamortzed balance at the customer deposit rate. The
revenue requirement included in ths Stipulation has been reduced for the CFI revenues,
in order to flow these benefits though to customers.
10. PCA Authonzed Level of Expense. Appendix 3 sets fort the agreed-upon
level of power supply expense, 'retail load and revenue credit resulting from this
Stipulation Page 70f12
- - ("I I N00 00 e.99 0~ d r-- i I (1o~~~ OJ-~~CáCáå~~iZp.z. ~ 00.. 0 ,. 0.- Z ,. --,. 0 N:E ~ ¡. ~r~ uCá .. 00_ 1-0
Stipulation, that wil be used in the monthly Power Cost Adjustment ("PCA") mechanism
calculations.
11. Prudency of Energy Efficiency Expenditues. The Paries agree that
Avista's expenditues for electric and natual gas energy efficiency programs from
November 1, 2003 though December 31, 2007 have been prudently incured.
12. Rate Spread. Appendix 2 shows the impact on each service schedule of
the agreed-upon electnc and natual gas increases. The proposed electnc revenue
increase of$23,163,000 represents an overall increase of 1 1.98% in base rates, and with
one exception, is spread on a uniform percentage basis to all schedules. Schedule 25P
(for Potlatch's Lewiston plaIt), however, will receive an increase of
10.36%, in order to
reflect a Schedule 25P rate that is no higher than the talblock rate of Schedule 25. With
this change, the relative rate of retu for Schedule 25Pwould move approximately one-
half way toward unty, more consistent with the movement of other service schedules.
All other schedules will receive a 12.33% increase.
The spread of the increased natual gas revenue requirement of $3,878,000 is set
fort in Appendix 2, and represents an overall increase of 4.7% in base rates. It reflects a
reduction to what the Company had proposed by way of an increase for each of the gas
service schedules proportional to the reduction in the overall increase.
13. Rate Design. The Paries agree to changes in the electnc customer and
demand charges as set fort in the Company's'fiing, and sumarized in Appendix 2.
Thsinc1udes an increase in the residential monthy basic charge from $4.00 to $4.60.
The energy rates within each electric service schedule are increased by a uniform
percentage.
. Stipulation Page 8 of12
- - ("I I N00 00 e.9'? 0~ d 00- I I 11o~~~ OJ-~~CáCáå~~ifp.z. ~ 00.. 0 .D 0.- Z ,. --.D 0 N
:E ~ ¡. ~~ Cá . 00~u ~o
With respect to natural gas rate design, the Paries agree to apply the increase in
rates within each service schedule in the same maner as proposed by the Company. The
monthy basic charge for the residential schedule will increase from $3.28 to $4.00, as
proposed by the Company.
14. Customer-Related Issues.
(a.) Low-Income DSM Funding - At present, $350,000 per year is
provided to Idaho service (CAP) agencies for proposed fuding of low-income Demand-
Side Management (DSM). The Paries agree to increase the annual level of funding to
$465,000 for such programs (which includes administrative overhead). The continuation
and level of such fuding will be revisited in the Company's next general rate fiing.
(b.) Funding for Outreach for Low-Income Conservation-The Paries
agree that anual fuding in the amount of$25,000 will be provided to Idaho (CAP)
agencies for the purose of underwiting the dedication of agency personnel to assist in
low-income outreach and education concemingconservation. The dollars will be fuded
through the DSM Tariff Rider (Schedules 91 and 191), and wil be in addition to the
$465,000 of Low-Income DSM Funding. The continuation and level of such fuding wil
be revisited in the Company's next general rate filing.
Stipulation
ExhibifNo. 101
Case No. AVU-E-08-1
AVU-G-08-1
R. Lobb, Staff
08/22/08 Page 9 of 23
Page 9 of12
(c.) Establishment of Genenc Workshops - A vista agrees to support and
actively paricipate in any Commission-established workshops for the purpose of
examing issues surounding energy affordability and customers' ability to pay energy
bils with respect to all jurisdictional utilties. As par of ths process, A vista agrees to
explore the feasibility of establishing a Low-Income Rate Assistace Program (LIRAP),
or similar program, to assist low-income residential customers in Idaho.
15. The Paries agree that ths Stipulation represents a compromise 'of the
positions of the Paries in this case. As provided in RP 272, other than any testimony
filed in support of the approval of ths Stipulation, and except to the extent necessar for
a Par to explain before the Commission its own statements and positions with respect to
the Stipulation, all statements made and positions taken in negotiations relating to this
Stipulation shall be confidential and will not be admissible in evidence in this or any
other proceeding.
16. The Paries submit ths Stipulation to the Commission and recommend
approval in its entirety pursuat to RP 274. Paries shall support this Stipulation before
the Commssion, and no Par shall appeal a Commission Order approving the
Stipulation or an issue resolved by the Stipulation. If ths Stipulation is challenged by any
person not a par to the Stipulation, the Paries to ths Stipulation reserve the right to fie
testimony, cross-:examine witnesses and put on such case as they deem appropnate to
respond fully to the issues presented, including the right to raise issues that are
incorporated in the settlement terms embodied in this Stipulation. Notwithstanding this ("__ Ni I e.00 00 0
reservation of rights, the Paries to this Stipulation agree that they wil continue to support ~ 6 ;:- I I (1o~~~ OJ
the Commission's adoption of the terms of ths Stipulation. ~ ~ ~ i5 p:
Z å ~ 00.t: Z :8 s:,. 0 N:E ~ ¡. ~Stipulation Page 10 of 12 ~ 8 ~ ~
17. If the Commission rejects any par or all ofthis Stipulation or imposes any
additional material conditions on approval of ths Stipulation, each Par reserves the
nght, upon wntten notice to the Commission and the other Paries to ths proceeding,
withn 14 days of the date of such action by the Commission, to withdraw from this
Stipulation. In such case, no Par shall be bound or prejudiced by the terms of this
Stipulation, and each Par shall be entitled to seek reconsideration of the Commission's
order, fie testimony as it chòoses, cross-examine witnesses, and do all other things
necessar to put on such case as it deems appropriate. In such case, the Paries
immediately wil request the prompt reconvening of a prehearing conference for puroses
of establishing a procedural schedule for the completion of the case. The Paries agree to
cooper~te in development of a schedule that concludes the proceeding on the earliest
possible date, taking into account the needs of the Paries in paricipating in hearings and
preparng testimony and briefs.
18. The Paries agree that ths Stipulation is in the public interest and that all
of its terms and conditions are fair, just and reasonable.
19. No Par shall be bound, benefited or prejudiced by any position asserted
in the negotiation of ths Stipulation, except to the extent expressly stated herein, nor
shall ths Stipulation be constred as a waiver of the rights of any Par unless such nghts
are expressly waived herein. Execution of ths Stipulation shall not be deemed to
constitute an acknowledgment by any Par of the validity, or invalidity, of any paricular
method, theory or principle of regulation or cost recovery. No Par shall be deemed to
have agreed that any method, theory or principle of regulation or cost recovery employed
in ariving at this Stipulation is appropriate for resolving any issues in any other
Stipulation Page 110f 12
("_ _ Ni I e.00 00 000I I -~ d -- I I (1o~~~ OJ-~~CáCáå~~ifp.Z å ~ 00.t: Z :8 s:
=9 (1 j ~~ ~ . õo~u ~o
proceeding in the futue. No findings of fact or conclusions oflawother than those stated
herein shall be deemed to be implicit in ths Stipulation.
20. The obligations of the Paries under this Stipulation are subject to the
Commission's approval of ths Stipulation in accordance with its terms and conditions
and upon such approval being upheld on appeal, if any, by ~ cour of competent
jurisdiction.
21. Ths Stipulation may be executed in counterpars and each signed
counterpar shall constitute an original document.
".'1
DATED ths ? -day of August, 2008.
A vista Corpration Idao Public Utiities Commission Staff
BY~
Attorney for Avista Corporation
By
Scott Woodbur
Attorney for IPUC Staf
Potlatch Co~oration Community Action Parership Association
By åAQ By
Brad M. Purdy
ExhibH No. iOr
Case No. AVU-E-08-1
AVU-G-08-1
R. Lobb, Staff
08/22/08 Page 12 of 23
Stipulation Page 12 of 12
08/07/2008 15: 45 208--335-2537 FEDEX KINKO' 5 5122 PAGE 02
are expressly waived herein. Execution of this Stipulation shall not be deemed to
constitute an acknowledgment by any Party of the validity or invalidity of any particular
method, theory or principle of regulation or cost recovery. No Party shall be deemed to
have agreed that any method, theory or prnciple of regulation or cost recovery employed
in arrving at tbis Stipulation is appropriate for resolving any issues in any other
proceeding in the fumre. No findigs of fact or conclusions of law other than those stated
h.ere.in shall bedeeroed to be implicit in this Stipulation.
20. The obligations of the Paries under this Stipulation are subject to the
Commssion's approval of this Stipulation in accordance with its term and conditions
and upon such approval being upheld on appeal, .if any, by a court of competent
jurisdiction.
21. This Stipulation, may be executed in counterpars and each signed
counterpar shall constitute au original document.
DATED tls 7t+ day of August, 2008.
A vista Corpration Idaho Public Utilities Commission Staff
By By
David J. 'Meyer
Attorney for Avista Corporation
("__ Ni I e.00 00 000I I ("~d -- I I (1o~~~ OJ-~~CáCáå~~èÏp.
Community Action Partnership Association Z å ,.~ 00.t: Z ,. s:=9 Q) 0 N
BY/~£);; ~~
Scott Woodbur
Attorney for IPUC Sta
Potlatch Corporation
By
Stipulation Page 11 of 12
08/071?008 THII 14'!'? rTlUR:i Nn 544Ri ld 002
APPENDIX 1
ExhbiINo.101..
Case No. A VU-E-08-1
AVU-G-08-1
R. Lobb, Staff
08/22/08 Page 14 of 23
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APPENDIX 2
Exhibit No. 10f
Case No. AVU-E-08-1
AVU-G-08-1
R. Lobb, Staff
08/22/08 Page 17 of 23
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AVISTA UTILITES
IDAHO ELECT-RIC
PRESENT AND PROPOSED RATE COMPONENTS BYSCHEOULE
Preserit
Base Tarif ERM&Present
Sch. Rate other AdjJ11 BilJngRate
(b) (c) . (tt)(a)
Residential Serice - Schedule 1
Basic Charge
Energ Charge:
Firs 600 kWhs
All over 600 kWhs
$4.00 $4.00
$0.05842 ($0.00206) $0.05636
$0.Q6612 ($0.00206) $0.06406
General Service - Schedule 11
Basic Ch¡¡rge
Energy Charge:
First 3,650 kWhs
All over 3;6$0 kWhs
DémandCh¡¡rge:
20kWoriess
Over20kW
$õ,OO
$0.07295
$O,Ô6223
not;hârgë'
$3.50IkW
Lar9!GeneraIS-eioe-Seheule 21
Enêrgy Chare:
First 250,OOOkWhs
AU over 250,000 kWhs
Deand Chame:
50 kW or less
Ovr5ô r.'J
Primary Voltagef)l$unt
$0;04$00
$0.04097
$250.00
$3.00lkW
$O~20IkW
Exta Large Gênelál Servicê-Sêhêdl.le 25Ener9Y Cha~e; ... ...
First '500.000 kWhs $0,03942
All ()ver 5QO,OOkWh$ $(1.3339
Demand Charge:
3.00.Kvaor le$S
Qver3;OQO kva
Primary \;çlt. Discount
Annual' Minîmurn'
$S.OOO
$2.75Jkva
$0.;10/kWPrßst
Potlatch - Schedu1é25P
Energy Charge:
all kWhs
DemaridChI;rge:
. 3.000 kva orless
Over 3,pO kva
Primciry Vplt. Discont
Annual Minimum
SQ.ò34Ö4
~,QOO
Si.7Š/kva
$ô201kW
Present:
PumpingServiee ~SCheduIe.31
B:àsicCh9rge
Energy Charge:
Fitst165kW/kWh
AlIadditÎOna. kWhs
$6,PO
$0.06555
SO.Ö.55Sè
$().00362
$0;003$2
$6.60
$0;076$1
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nochargê
$3~50IKW
$0:0034 ,$O.Ö$140
$Ö,00ä4Ö$O:Ò4.431
$25(100
$3.00/kW
$0.2QIkW
$Q~QQ319
'SäQ0319
$51'1.410
~0'04261
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$2.7$fka
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$t.15ika
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$482,44
$().OO343
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$o.ö5932
General
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$25.00
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$0.0634
$0.07210
$6.50
$0;08570
$o.o13è3
$4JJOIkW
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.$O.()934
$275.00
$3;50IkW
$O¡201kW
$0.047-30
$0.04055
$1i),OO
$ß.25/kv:i.
.$Q~~9JkW
$S71;4~
Proposed
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Rate
(g)
$4.60
$0.06552
$0.07416
$6.50
$0.08208
$0;07001
nóClarg~
$4.00IkW
$0.05384
$0,04594
$275.00
$3.50IkW
$O;20/kW
$0.04411
$0.03736
$10.000
$3.25lkva
$Q.20IkW
$O.oø31S'$â.040~$O.(l3722
$1tOOO $1 (),OOO $10,()OO
$O~5Ölkva $3.25Ikva $325/kva
$0201kW $O.20/kW
$529.420
$0.50 $6;50 $6.SÔ
$0,00815 $0.07713 $0.07370
$O.O06~5 $0.06621 $0.06284
(1 ) Include$all prerateadjuStiens: Setetule:Q6Temp.oratY. PCAAdJ", S~\.Î$91,..EttE:ff~ø.ey RiØe A'Øl.,
andSchedule 59~Réidettiat& FàtrErlêr9¥ Räíe Adì;(~øh~ 1 ~.
("__ Ni I e.00 00 09 Cr 0\~d -- I I (1o~~~ OJ-~~CáCáå~~ifp.Z å ~ 00.t: Z :8 s:
=9 (1 0 N.. rr ¡. N~ Cá . Õõ¡iu ~o
Appefl(iix 2
Case No. AVU-Ëil8.(1 &AVlJG-oa-01Page 2 of4
AVlSTAUTlLlTlES
IDAHO GAS
PROPOSED iNCREASE BY SERVICE scHEDULE
12lVONTHSENDÊPIJI;CEIVBER 31, 2001
(Ooos of DollClrs)
Line
No;
Type of
Sèrvlce
(a)
Base Tariff
Revenue
Schedule Under Present
Number Rates(H
(b) (e)
Proposed
General
Increasa
(d)
Base Tariff
Revenue
Under Proposed
Rates
(e)
Bae
Tari
Percent
Increase
(f)
1 General SerVeë.101 $63,207 $3,375 $66,582 5.30/0
2 Large General 'Service 111 $1'l.869 $4àé.$18,355 2.1%
3 Interruptible serR?131 Sa67 $15 $~82 4.1)%
4 Traortlon'ServìCe 146 $417 $3 $42Ø (M~%
5 Special Contrct 148 $211 ~.$211 0;0%
6 Total $82,071 $3.878 $85,950 4.7%
(t). incIUdesPurt;~se AØlu$nientSChedule 1SfJI E~cludes other rate
adjustments.
Exhibit No.-101
Case No. AVU-E-08-1
AVU-G-08-1
R. Lobb, Staff
08/22/08 Page 20 of 23
Appehdix2
Ca~ No. .ÄVIE-Qs;.1 &.AVtJ-'..&.1. . Page30f 4
Av/SrAutIUTES
..' .' ..tI:AIiOG~
PREsENTANDPROPOsED RATE COMPONENTS BY SCHEDULE
General Proposed Proposed
Base Present Present Rate 5ch.191 Biling Base
Rale(1 )Rate Adj.2)BillngRate Ihcreas Change Rae(2)Rate(1)
(a)(b)(e)(d)(el (f)(9)(h)
Genera SerVice - Schedule 1 01
Basic Charge $328 $3.28 $0.12 $4~00 $4.00 22.0%
Usage Charge:
Allthers $1.10888 (SO.00328)$1.10560 $0.5087 $1.15647 $1.15915 4:6%
Large GenerálServce . Schedule 111
Usage Charge:
First200 th$ms
200 - 1.000 th~ms
1 ~OOO. 10;000 thems
Allovet10,'t)QO:th$rms
Minimum Chrge:
per month
pertherm
$1.09137
$1.07319
$0.97077
'$Q.97077
($0;0564)$t;~573 $0-545 ($Ò.OO010)$1.14008 ,$1.14582 5.0%
!$O.Op5ô4)$1.675 $0.01087 ($0.00010)$1.07832 $1.08406 1;0%
($0.00564)$0,9613 $0.4023 ($0,00010)$1.0026 $1.01100 4.1%
($..0056)'$Q~9.t3 $0.00023 ($.00010)'$0.96526 $0.97100 0.0%'
$1$6.Ç)$10~89 '$1f)7.SZ;$11)7:52 7.0%
($O.Q~4)$0.302$&l$O;OO01())'$(t~~4å $0.30822 0.0%
...$1$.6$
$Q.30822
. High Annual LoàdFåclorlagè GenètaSèìic-Sèhedule 121..MOE TOSCH 11.
Usage Charge:
First 200the:rms
200 - 500 therms
500 -1.000therms
1.00 -10;OOOthems
An ove 10;000 thars
Minimum Charge:
permontl
pèrther
S3SS.13 $386.1;3
$0:30822 ($0.0652) $0,30170
($218.1)
SMOOra $1.14008 $1.14582 6.0%
$o.ol17$$M783~$1.084 0.3%
$1:i()0'i8 $1.0782 $1.0846 1.0%
$0.00078 $1.00526 $1.110.0 4.1%
$0~OOO18 $0.96526 $0.91100 2;0%
$1.67.5~$167.52 -56.6%
$lM0078 $0.$0248 $t.30822 0.0%
, . $Q.9.169 $0.90637
$20;0 $20.00
$0.11062 $0.11062
$1.0:8048$1.080
$1,07319
$0;970'7
$0;95199
($0.0065~)
($(.0065Z)
($0;00652)
($(.OQp2)
($0:00652)
$1.073$6
St07396
$1.0667
$G;9Ç2S$0;947
,$0.06534
$0.00308
$0,01067
$0.0423
$Ó.01901
InterruptIble Service. Séhedule 131
Usage'Charge:
All Tberms SO.S7157 ($O.OO8ô&) $0,86139 $0.034
TransportatiónSérièe .'SèhèduJe146 Basic Charge $iOMo
Usage 'Crnrge:
Air Therms $(.1íJ6
~Q(.OO
$0.097$
SO.OO
$0,0008
(1) IncludeSCñedOlè1SC' Pur$ed Gas ÇaMj.
(2) Include $l;edle 1$ - GàSRåte AQj.. Sl;èduié 191 ~ ErigyEffcinYRider Ad.
ExhibitNo.lU1
Case No. AVU..E-08-1
AVU-G-08-1
R. Lobb, Staff
08122/08 Page 21 of 23
Àppendlx2
cae No. AVl.E-oS-i & AVl-G.Os.01
.Page4af4
APPENTDTX 3
Exhibit No. rOl
Case No. AVU-E-08-1
AVU-G-08-1
R. Lobb, Staff
08/22/08 Page 22 of 23
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1
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 22ND DAY OF AUGUST 2008,
SERVED THE FOREGOING DIRECT TESTIMONY OF RADY LOBB IN
SUPPORT OF STIPULATION, IN CASE NOS. AVU-E-08-01 & AVU-G-08-01, BY
MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
DAVID 1. MEYER
VICE PRESIDENT AND CHIEF COUNSEL
AVISTA CORPORATION
PO BOX 3727
SPOKANE WA 99220
E-MAIL: david.meyer~avistacorp.com
CONLEY E WARD
GIVENS PURSLEY LLP
601 W BANNOCK ST (83702)
PO BOX 2720
BOISE ID 83701-2720
E-MAIL: cew~givenspursley.com
BRAD M. PURDY
ATTORNEY AT LAW
2019N 17TH STREET
BOISE,ID 83702
E-MAIL: bmpurdy~hotmail.com
SCOTT ATKISON
CHIEF OPERATING OFFICER
BENNETT FOREST INDUSTRIES INC.
171 HIGHWAY95N.
GRANGEVILLE, IDAHO 83530
E-MAIL: scotta~bennettforest.com
KELLY NORWOOD
VICE PRESIDENT - STATE & FED. REG.
A VISTA UTILITIES
PO BOX 3727
SPOKANE WA 99220
E-MAIL: kelly.norwood~avistacorp.com
DENNIS E. PESEAU PhD
UTILITY RESOURCES INC
1500 LIBERTY STREET SE
SUITE 250
SALEM OR 97302
E-MAIL: dpeseau~excite.com
DEAN J. MILLER
McDEVITT & MILLER LLP
PO BOX 2564-83701
BOISE, IDAHO 83702
E-MAL: joe(fmcdevitt-miler.com
~SECRETA '
CERTIFICATE OF SERVICE