20080702notice_of_application_order_no_30587.pdf

Office ofthe Secretary
Service Date
July 2, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION DBA A VISTA
UTILITIES FOR AN ACCOUNTING ORDER
AUTHORIZING ACCOUNTING ENTRIES
RELATED TO THE TERMINATION OF THE
STORAGE AGREEMENT BETWEEN
A VISTA UTILITIES AND TERAS EN GAS, INC.
CASE NO. A VU-08-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30587
On June 13 , 2008, Avista Corporation dba Avista Utilities filed an Application
requesting an accounting order related to the termination of a Gas Storage Agreement between
the Company and Terasen Gas, Inc. The Company requests that its Application for an
accounting order be processed via Modified Procedure, IDAPA 31.01.01.201.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that in 1982, Avista and Terasen (formerly known
as BC Gas) entered into an agreement for the storage and subsequent release of natural gas at
Avista s Jackson Prairie underground storage facility. Under the Agreement, Terasen paid
Avista $191 121 per month for the storage and eventual delivery of gas to Terasen. The Idaho
jurisdictional revenue from Terasen, $54 388 per month, is embedded in the current rates paid by
Idaho customers.
YOU ARE FURTHER NOTIFIED that the Agreement with Terasen was terminated
May 1 , 2008. On May 1 , A vista began using the Terasen storage capacity to serve its own
customers. "The benefits associated with this recalled storage capacity are directly passed on to
customers through the Company s annual PGA filing." Application at
YOU ARE FURTHER NOTIFIED that the termination of the Terasen Agreement is
incorporated in the Company s current general rate case (A VU-08-01). However, until the
general rates become effective, Idaho customers are currently receiving a credit of $54 388 each
month although the revenue is no longer being received. Consequently, the Company requests
that the Commission approve an accounting order for the Company to record the additional
deferred gas costs to Account 191 in the amount of$54 388 each month beginning May 1 2008
and ending on the date in which its new gas rates become effective. The deferred costs
NOTICE OF APPLICATON
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30587
associated with a partial month "would be prorated accordingly.Id. at 3. This deferred amount
would be included with all other deferred gas costs and be recovered through the rates as part of
the Company s annual PGA filing.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices. The Application is also available on the Commission s Website at
www.puc.idaho.gov under "File Room" and then "Gas Cases.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure IDAPA 31.01.01.201 through .204.The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-one (21) days from the service date of this Notice. The comment must contain a
statement of reasons supporting the comment. Persons desiring a hearing must specifically
request a hearing in their written comments. Written comments concerning this Application
shall be mailed to the Commission and A vista at the addresses reflected below:
Street Address for Express Mail:
Kelly O. Norwood
Vice President - State & Federal Regulation
A vista Corporation
PO Box 3727
1411 East Mission Avenue
Spokane, W A 99220-3727
E- Mail: kell y .norwood~avistacorp.com
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
472 W. Washington Street
Boise, ID 83702-5918 David 1. Meyer, Vice President
Chief Counsel, Reg. & Gov t Affairs
A vista Corporation
PO Box 3727
1411 East Mission Avenue
Spokane, WA 99220-3727
Mail: david.meyer~avistacorp.com
NOTICE OF APPLICATON
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30587
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 home page 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 A vista at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter under Title 61 of the Idaho Code and specifically Idaho Code ~ 61-524 and IDAP A
31.12.01 (Uniform System of Accounts). 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 interested in submitting written comments
in this matter do so within 21 days ofthe service date ofthis Order.
NOTICE OF APPLICATON
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30587
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;1..
,J.
day of July 2008.
ATTEST:
~tJ.Je D. Jewell
mISSIOn Secretary
bls/O:A VU-08-02 dh
NOTICE OF APPLICATON
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30587
"" .
MACK~FORD, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
~ ,,~~
. KEMPT , CO MISSIONER