20080917notice_of_revised_application.pdf

Office of the Secretary
Service Date
September 17 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA UTILITIES FOR AUTHORITY
TO CHANGE ITS NATURAL GAS RATES
AND CHARGES (2008 PURCHASED GAS
COST ADJUSTMENT)
NOTICE OF
REVISED APPLICATION
CASE NO. A VU-08-
On August 18, 2008, Avista Corporation dba Avista Utilities (Avista; Company) filed
its annual Purchased Gas Cost Adjustment (PGA) Application with the Commission requesting
authority to place new rate schedules in effect as of October 2008 that would increase its
annual natural gas revenues by approximately $11.6 million or about 14.2%. On September 15
2008, Avista filed a Revised Application reducing its proposed PGA increase to $3.3 million or
about 4.0%. The PGA mechanism is used to adjust rates for the purchase of gas from wholesale
suppliers including transportation, storage, and other related costs of acquiring natural gas.
A vista s earnings will not be increased as a result of the proposed changes in prices and
revenues. A vista serves approximately 72 000 natural gas customers in Idaho.
Initial Notices of Application and Modified Procedure in this case were issued
August 28, 2008. The deadline for filing written comments is September 23 , 2008. The
Commission has reviewed the Revised Application and finds no need to change the comment
deadline.
NOTICE OF REVISED APPLICATION
YOU ARE HEREBY NOTIFIED that Avista states that if the proposed changes in its
revised PGA are approved its annual revenue will increase by approximately $3.3 million or
about 4.0%. The average residential or small commercial customer using 65 therms per month
will see an estimated increase of $2.96 per month, or approximately 3.9%. The present bill for
65 therms is $75.14, while the proposed bill is $78.10. The actual increase will vary based on
customer usage. The proposed effective date of October 1 , 2008 for the PGA rates is
simultaneous with the proposed effective date of the rates contained in the Settlement Stipulation
filed with the Commission on August 7 2008 in Avista Case Nos. A VU-E/G-08-01.
Since the Company s original filing, A vista states that wholesale prices for natural
gas have continued to fall. During this time, the Company has purchased additional natural gas
NOTICE OF REVISED APPLICATION
for the coming year, both for injection into underground storage and at (hedged) forward prices
for delivery throughout the year. This revised filing reflects a lower commodity cost for these
additional purchaseslhedges, as well as lower projected prices for (spot) gas that will be
purchased during the forthcoming year. As a result, the proposed weighted average cost of gas
(WACOG) reflects an increase 3.102~ per therm over the WACOG in present rates as compared
to an increase of 14.623~ per therm reflected in the Company s original filing.
The other rate components (demand and deferral amortization) reflected in the
proposed tariff sheets are the same as those reflected in the Company s original filing - only the
W ACOG has been revised in the Company s revised filing. Below is a table summarizing the
proposed changes reflected in the Company s revised filing.
Commodity Demand Total Sch. 155 Total Rate
Schedule Change Change Sch. 150 Amort.Change Percent
Service No.per therm per therm Change per therm per therm Change
General 101 $0.03102 $0.00777 $0.03879 $0.00664 $0.04543
Lg. General 111 $0.03102 $0.00777 $0.03879 $0.00664 $0.04543 4.4%
Interruptible 131 $0.03102 $0.03102 $0.00664 $0.03766
Transport 146 $0.00000
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter and Avista Utilities, a public utility, pursuant to the authority and power granted under
Title 61 of the Idaho Code and the Commission s Rules of Procedure, IDAP A 31.01.01.000
seq.
YOU ARE FURTHER NOTIFIED that the original and revised Applications and
supporting workpapers and exhibits have been filed with the Commission and are available for
public inspection during regular business hours at the Commission offices and at the Idaho
offices of A vista Utilities. The original and revised Applications together with prior Notices
issued in this case are available on the Commission s website at www.puc.idaho.gov under "File
Room" and then "Gas Cases.
NOTICE OF REVISED APPLICATION
DATED at Boise, Idaho this /71"/1 day of September 2008.
PRE
MARSHA H. SMITH, COMMISSIONER
ATTEST:
D. Jewell
mission Secretary
bls/N:A VU-08-03 sw2
NOTICE OF REVISED APPLICATION