20090123Application.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170 REeE
J.~~'

'STJI.
Corp.
20ng JAN 23 PM 12: 21
Januar 22,2009
Jean D. Jewell
Commission Secretar
Idaho Public Utilities Commission
472 W. Washington Street
Boise, il 83702
TariffI.P.U.C. No. 28 (Electrc) and TarfflPUC No. 27 (Natual Gas)
Docket Nos. A VU-E-09-01 and A VU-G-09-01
Enclosed for filing with the Commission is an original and nine copies of an Application by Avista
Corporation dba Avista Utilities (Avista) dated Januar 22, 2009 for approval of revised electrc
and natural gas rates. This filing reflects a general rate increase for both electrc and natural gas
service in the State ofldaho, to be effective Februar 23,2009.
A vista has also included for fiing nine copies of its prepared direct testimony, and exhibits in
support of its revised rates, as well as eight copies of workpapers showing how test year data were
adjusted. Please note that the workpapers of Clint G. Kalich are being provided in electronic
format only due to the electronic and voluminous natue of these files. Computer readable copies
of the testimony, exhibits, and workpapers, required under Rule 231.05, are included on the
attached compact disc.
Attached to the Application is the form of Customer Notice and form of Press Release to be issued
by the Company. Additionally, Avista has included a signed copy of the Protective Agreement
between A vista and the Commission Staff, and the Attorney's Certificate and Claim of
Confidentiality Relating to Portions of A vista's Workpapers.
Sincerely,
?' ~#'..
Kelly o. Norwood
Vice President
Enclosures
°Et',r~~\': \:¡ t:
ion, JAN 23 PH 12: 21
Í
UTILI
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this 22nd day of January, 2009, served the
foregoing application, and Avista's Direct Testimony and Exhibits in Docket No.
AVU-E-09-01 and AVU-G-09-01 upon the following parties, by mailng a copy
thereof, property addressed with postage prepaid to:
Jean 0 Jewell, Secretary
Idaho Public Utilities Commission
Statehouse
Boise, 1083720-5983
Brad M. Purdy
Attorney at Law
2019 N 1 ih Street
Boise, 10 83720
Scott Woodbury
Deputy Attorney
Idaho Public Utilties Commission
472 W. Washington
Boise, 10 83702-0659
Conley E. Ward
Givens Pursley LLP
602 W. Bannock Street
Boise, 10 83702-2720
Howard Ray
Potlatch Corporation
803 Mill Road
P.O. Box 1126
Lewiston, 10 83501-1126
Dean J. Miller
McDevitt & Miller, LLP
420 W. Bannock St.
Boise, 10 83701-2564
Scott Atkison
Bennett Forest Industries, Inc.
171 Highway 95 N.
Grangeville, 10 83530
(2~~
Patty Olsness
Rates Coordinator
RECE En
DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL OF 20U9 JMl 23 PM \2= 28
REGULATORY & GOVERNENTAL AFFAIRS
AVISTA CORPORATION
P.O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: [phone]
FACSIMILE: [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR THE )
AUTHORITY TO INCREASE ITS RATES )
AND CHARGES FOR ELECTRIC AND )
NATURAL GAS SERVICE TO ELECTRIC AND)
NATURAL GAS CUSTOMERS IN THE STATE )OF IDAHO )
)
CASE NO. AVU-E-09-01
CASE NO. AVU~G-09-01
APPLICATION OF AVISTA CORPORATION
(ELECTRIC AND NATURAL GAS)
1 Application is hereby made to the Idaho Public Utili ties
2 Commission for an Order granting Avista Corporation
3 ("Applicant," "Company," or "Avista") the authority to
4 increase its rates and charges for electric and natural gas
5 service to electric and natural gas customers in the State of
6 Idaho to be effective on and after February 23, 2009.
7 In this filing Avista is proposing a net increase in
8 electric retail rates of 7.8%. The proposal consists of an
9 increase in electric base retail rates of $31.2 million or
10 12.8%, and a reduction in the current Power Cost Adjustment
11 (PCA) surcharge of 5.0%. We are proposing that the reduction
in the PCA surcharge become effective coincident with the12
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effective date of new retail rates from this general rate case
filing. The following illustrates how the estimated electric
net increase was derived.
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$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
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Bil Impact to Customers
12.8%*
$-
01-23-2009 07-01-2009
* The proposed increase is 12.8% as a percentage of present billed rates and14.2% as a percentage
of base tariff rates.
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 1
1 The proposed natural gas increase in the filing is $ 2. 74
2 million, or 3.0%.
3 In support of this Application, Applicant states as
4 follows:5 I.
6 The name of the Applicant is Avista Corporation, dba
7 Avista Utilities, a Washington corporation whose principal
8 business office is 1411 East Mission Avenue, Spokane,
9 washington, and is qualified to do business in the State of
10 Idaho. Avista maintains district offices in Moscow, Lewiston,
11 Sandpoint and Coeur d' Alene, Idaho.Communications in
12 reference to this Application should be addressed to the
13 following:
14 David J. Meyer, Esq.15 vice President and Chief Counsel of
16 Regulatory & Governmental Affairs17 Avista Corporation18 P . o. Box 3727
19 1411 E. Mission Ave
20 Spokane, WA 99220-3727
21 Phone: [phone]
22 Fax: [phone]
23
24 Kelly Norwood25 Vice President - State and Federal Regulation26 Avista Utilities
27 P.o. Box 3727
28 1411 E. Mission Ave
29 Spokane, WA 99220-372730 Phone: ( 509 ) 495 - 4 267
31 Fax: [phone]
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 2
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II.
Avista is a public utility primarily engaged in the
4 generation, transmission and distribution of electric power
5 and the distribution of natural gas in certain portions of
6 eastern and central Washington, northern Idaho, as well as
7 distribution of natural gas in northeast and southwest Oregon.
8 The Company is subject to the jurisdiction of this Commission,
9 the Washington Utilities and Transportation Commission, the
10 Oregon Public Utility Commission, the Montana Public Service
11 Commission and the Federal Energy Regulatory Commission.12 III.
13 Applicant's existing base rates and charges for electric
14 service were approved as a resul t of the Commission's Order No.
15 30647 dated September 30, 2008, in Case No. AVU-E-08-01. The
16 existing rates and charges for electric service on file with
17 the Commission (designated as Applicant's Tariff No. 28) are
18 incorporated herein as though fully attached hereto.19 iv.
20 Applicant's existing base rates and charges for natural
21 gas service were approved as a result of the Commission's Order
22 No. 30647 dated September 30, 2008, in Case No. AVU-G-08-01.
23 The existing rates and charges for natural gas service on file
24 with the Commission (designated as Applicant's Tariff No. 27)
25 are incorporated herein as though fully attached hereto.
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 3
1 V.
2 The electric and natural gas rates and charges which
3 Applicant desires to have the Commission approve are filed
4 herewith as Exhibit A. Also included in Exhibit A are copies
5 of the tariff schedules showing the proposed changes by
6 striking over the existing rates and underlining the proposed
7 rates. Company witness Mr. Hirschkorn fully describes in his
8 testimony and exhibits the proposed changes herein.9 VI.
10 The circumstances and conditions relied upon and
11 justification for approval of the proposed increase in rates
12 for electric and natural gas service are as follows:
13 Applicant's present electric and natural gas rates will
14 not produce sufficient revenue to provide operating income
15 required to allow the Applicant the opportuni ty to earn the 8.8%
16 rate of return being requested and supported in this
17 Application.
18 The Applicant's last electric and natural gas general rate
19 case (Case Nos. AVU-E-08-01 and AVU-G-08-01) in Idaho was
20 effective in October 2008. The proposed revenue increases are
21 dri ven primarily by increased power supply costs, capital
22 investments in upgrading aging infrastructure to increase
23 capaci ty and reliabili ty, litigation and relicensing costs for
24 Avista's Spokane River hydropower projects and Lake Coeur
25 d' Alene, and changes in other various costs of providing
26 electric and natural gas services to our customers.
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
page 4
1 unless the increased rates as requested in this filing are
2 approved, Applicant's rates will not be fair, just and
3 reasonable and it will not have the opportunity to realize a
4 fair rate of return on its investment.
5 Applicant's evidence in support of its need for increased
6 electric and natural gas rates is based on a 12-month ended
7 September 30, 2008 test year. Applicant's rate base evidence
8 is presented on an average basis. Documentation showing how
9 the test year data was adjusted is provided in the testimony
10 and exhibits of Company witness Andrews.
11 Applicant provides utility service in states other than
12 Idaho.A jurisdictional separation of all investments,
13 revenues and expenses allocated or assigned in whole or in part
14 to the Idaho utility business regulated by this Commission is
15 described in the testimony and exhibits of Company witness
16 Andrews.17 VII.
18 Applicant's evidence will show that an overall rate of
19 return of 8.80% is fair, just and reasonable. The Company's
20 exhibits and testimony support an increase in retail electric
21 and natural gas revenue of $31.2 million and $3 million,
22 respectively.Simul taneous with the filing of this
23 Application, Applicant has filed its prepared direct
24 testimony, and exhibits in support of its revised rates, as well
25 as workpapers showing how test year data were adjusted.
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 5
1 VIII.
2 A complete justification of the proposed increases in
3 electric and natural gas rates is provided in the testimony and
4 exhibi ts of Company witnesses. These witnesses and a brief
5 summary of their testimony are as follows.
6
7 Mr. Scott L. Morris, Chairman, President, and Chief
8 Executive Officer of Avista Utilities, presents the Company's
9 policy testimony and provides an overview of Avista Corporation
10 and Avista Utilities. He summarizes the Company's rate requests
11 in this filing, and the primary factors driving the Company's
12 need for general rate relief. He provides an overview of some
13 of the initiatives that the Company has undertaken in recent
14 years to achieve operating efficiencies in an effort to mitigate
15 a portion of the increase in costs that Avista, as well as other
16 utilities in the industry are experiencing. He also briefly
17 explains the Company's cus tomer support programs that are in
18 place to assist our customers. Finally, he introduces each of
19 the other witnesses providing testimony on the Company's behalf.
20 Company witness Morris explains that this case is about
21 more than just year-over-year changes in utility operating
22 costs, such as power costs, fuel, materials and supplies, and
23 labor. It is also investing large amounts of capi tal to preserve
24 and upgrade our existing utility infrastructure to meet growing
25 customer demand. It is also continuing to experience major cost
26 impacts related to meeting new reliability standards,
27 environmental compliance, and litigation related to the
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09~01
Page 6
1 preservation of what have historically been its low-cost
2 resources it has used for decades to serve its customers.
3 Several examples of significant cost increases are as
4 follows:
5 . ComDensation to the Coeur d' Alene Tribe (Tribe):
6 The recently announced Settlement Agreement among the
7 Tribe, Avista, and the U. S. Department of Interior,
8 provides compensation to the Tribe related to their
9 ownership of the Southern one-third of Lake Coeur d' Alene10 (CDA). Although these costs were reviewed in the prior11 general rate case, they were deferred for future recovery12 in a subsequent rate case and are included in the current13 filing.
14
15 . Spokane River Relicensing: The resolution of issues with16 the CDA Tribe helps clear the way for the Federal Energy
17 Regulatory Commission (FERC) to issue a new license for18 the Post Falls Hydroelectric Proj ect in the State of19 Idaho. There is, however, one remaining issue for the20 Proj ects in the State of Washington related to water
21 quality. The Company expects this issue to be resolved22 in the first half of 2009 and a new license to be issued.23 The majority of the relicensing costs were reviewed in the24 prior general rate case filing, but were deferred for25 later recovery in this filing.
26
27 . Mitigation of Mercury and Thermal O&M Cost Increases:28 During 2009, the Colstrip owners, including Avista, will29 begin to incur significant costs to comply with new30 Mercury emissions laws in the State of Montana. Avista31 is also experiencing a significant increase in O&M at its32 thermal plants, due in part to the rapid increase in the33 cost of materials and the age of the plants.
34
35 . Increase in Power SUDDlY Costs: In our last rate case the36 Company included a "rate mitigation adjustment" such that37 the full increase in power supply costs was not included38 in retail rates resulting from that case. This case39 reflects the total power supply costs to serve customers'
40 loads. The increase in costs is also driven by, among41 other things, the expiration of low-cost Mid-Columbia42 contracts, and an increase in retail loads.
43
44 . Investment in Facilities to Serve Customers: As other45 witnesses will explain in more detail, the Company is46 continuing to invest significant dollars in utility47 infrastructure. The investment is necessary to serve new48 customers, upgrade aging facilities - some of which are
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 7
1 over 70 years old - and meet recently-enacted reliability
2 requirements for our energy delivery facilities.
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4
5 Mr. Morris explains a number of cost-cutting and efficiency
6 measures that have been undertaken recently in an effort to
7 mitigate the overall cost impacts to its customers. He describes
8 how the Company continues to aggressively manage costs to
9 achieve the appropriate balance in providing safe and reliable
10 service at cost-effective rates, and realize a high level of
11 customer satisfaction, while preserving the financial health of
12 the utility.
13 In addition to working diligently to gain efficiencies and
14 control the cost of providing energy service, Avista continues
15 to provide a number of energy assistance programs to aid
16 customers who are most affected by rising energy costs. These
17 efforts, among others, include Proj ect Share, CARES, Senior
18 Energy Outreach and energy efficiency workshops.
19 Finally, Avista' s energy efficiency programs offer a
20 portfolio of programs covering all customer classes. Total
21 savings of over 62.1 million annual kWhs and 1. 7 million therms
22 were achieved during January 1, 2008 through November 30, 2008.
23
24 Mr. Mark Thies, Senior Vice President and Chief Financial
25 Officer, will describe, among other things, the overall
26 financial condition of the Company, its current credit ratings,
27 the Company's plan for improving its financial health, its
28 ongoing capital requirements, the proposed capital structure,
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 8
1 and the overall rate of return proposed by the Company. Mr. Thies
2 explains that:
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. Avista's plans call for significant capital
expendi ture requirements for the utili ty over
the next two years to assure reliability in
serving growth in the number of customers andcustomer demand. Capital expenditures of
approximately $420 million are planned for
2009-2010 for customer growth, investment ingeneration, transmission and distribution
facili ties for the electric utili ty business as
well as necessary maintenance and replacements
of our natural gas utility systems. Avistaneeds adequate cash flow from operations to
fund these requirements, together with access
to capital from external sources underreasonable terms.
. Avista' s corporate rating from Standard &Poor's is currently BBB-. Avista Utilities
needs to operate at a level that will support
a strong investment grade corporate credit
rating, meaning "BBB" or "BBB+" , in order to
access debt capi tal markets at reasonable
rates, which will decrease long-term costs tocustomers. Maintaining solid credit metrics
and credit ratings will also help support a
stock price necessary to issue equity to fundcapi tal requirements.
. The Company has proposed an overall rate of
return of 8.80%, including a 50.00% equity
ratio and an 11.0% return on equi ty. We believe
the 11.0% provides a reasonable balance of the
competing objectives of continuing to improve
our financial health, and the impacts that
increased rates have on our customers.
40 Dr. William E. Avera, as President of Financial Concepts
41 and Applications (FINCAP), Inc., has been retained to present
42 testimony with respect to the Company's cost of common equity.
43 He concludes that:
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 9
1 . Application of quantitative methods to alternative
2 groups of proxy companies imply a cost of equity range
3 of 11.3 percent to 13.3 percent.
4 . Because Avista' s requested ROE of 11.0% percent falls
5 below the lower end of the recommended range, it
6 represents a conservative estimate of investors'7 required rate of return.
8 . Considering investors' expectations for capital
9 markets and the need to support financial integrity10 and fund crucial capital investment even under11 adverse circumstances, 11.0% percent is a reasonable,12 albeit conservative, ROE for Avista.
13 . Because of Avista' s reliance on hydroelectric14 generation, the Company is exposed to relatively15 greater risks of power cost volatility.
16 . Investors view the Power Cost Adjustment ("PCA") as17 supportive of the Company's financial integrity, but18 they understand that the PCA does not insulate Avista19 from the need to finance accrued power production and20 supply costs or shield the Company from potential21 regulatory disallowances.
22 . Avista' s requested capi talization is consistent wi th23 the Company's need to strengthen its credit standing24 and financial flexibility as it seeks to raise25 additional capital to fund significant system26 investments and meet the requirements of its service27 terri tory.
28 . The reasonableness of a minimum 11.0% percent ROE for29 Avista is also supported by the greater risks30 associated with the Company's relatively small size31 and the need to consider flotation costs.
3233 Mr. Richard Storro, Vice President of Energy Resources,
34 will provide an overview of Avista' s resource planning and power
35 operations. He will discuss the Company's resources, its current
36 and future load and resource position, and future resource
37 plans.He will also discuss the Company's hydroelectric
38 upgrades, current hydro relicensing issues, and mercury
39 abatement at Colstrip. Mr. Storro explains:
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. Avista' s electric generation portfolio, includingpower supply operations;
. The Company is in an annual balanced-to-surplus
energy position through 2017 with the addition of the
Lancaster Power Purchase Agreement (PPA);
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 10
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. The Company's involvement with the Chicago Climate
Exchange ¡and
. Avista' s risk management policy for energy resources,
including the electric hedging plan.
6 Mr. Clint Kalich, Manager of Resource Planning & Power
7 Supply Analyses, will describe the Company' s AURO~p model
8 (Dispatch Model) inputs, assumptions, and resul ts related to the
9 economic dispatch of Avista' s resources to serve load
10 requirements, and market forecast of electricity prices. He
11 explains:
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. The key assumptions driving the Dispatch Model's
market forecast of electricity prices. This
discussion includes the variables of natural gas,
Western Interconnect loads and resources, and
hydroelectric conditions.
. The model dispatches Avista' s resources and contracts
in a manner that maximizes benefits to customers.
. The use of quantitative rate-period loads for July
2009 through June 2010, for modeling pro forma netpower supply expenses.
. The output results from the model, including thermal
generation and short-term wholesale sales and
purchases, were provided to Mr. Johnson to
incorporate into the power supply pro formaadjustments.
28 Mr. William Johnson, Wholesale Marketing Manager, will
29 identify and explain the proposed normalizing and pro forma
30 adjustments to the test period power supply revenues and
31 expenses. He will also explain the new base level of power supply
32 costs for Power Cost Adjustment (PCA) calculation purposes using
33 the pro forma costs proposed by the Company in this filing. Mr.
34 Johnson describes:
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. The adjustment of revenues and expenses based on
normal streamflow and weather conditions, and
expected wholesale market power prices.
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 11
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. Adjustments made to reflect known and measurable
changes in power contracts, thermal generation fuel
expense, and transmission expense, between the test
period, and the pro forma period.
. The net effect of the adjustments to the test period
power supply expense is an increase of $27,645,000 on
a system basis, $9,789,095 which is allocated toIdaho.
. This increase in pro forma power supply expense over
the expense currently in base rates is based on
numerous factors, primarily reduced hydro generation
due to the elimination of the rate mitigation
adjustment included in last year's general rate case
and higher retail loads.
. Certain proposed revisions to the PCA, including a
95%/5% sharing mechanism.
18 Mr. Don Kopczynski, Vice President of Transmission and
19 Distribution Operations, will describe Avista' s electric and
20 natural gas energy delivery facilities and operations, and
21 recent efforts to increase efficiency and improve customer
22 service. Mr. Kopczynski describes:
23 . Avista' s customer service programs such as energy24 efficiency, Project Share, CARES program, Senior
25 Outreach Program, and payment plans. Some of these26 programs will serve to mitigate the impact on27 customers of the proposed rate increase.
28 . The Company's multi-faceted effort to increase29 customer service automation, including replacement
30 and upgrade of the new Interactive Voice Response
31 (IVR) system, Mobile Dispatch, Outage Management32 System, transmission and distribution system33 efficiencies, and Web Redesign.
34 . The decision by the Company to outsource our bill35 printing and mailing services. This decision was36 based on Company needs for disaster recovery37 compliance, added scalability and flexibility, and38 cost savings.
39
40 Mr. Scott Kinney, Director, Transmission Operations, will
41 discuss the electric transmission and distribution investments
42 included in this case, and presents the Company's pro forma
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 12
1 period transmission revenues and expenses.In addition,. he
2 describes the Company's Asset Management Program. Mr. Kinney
3 explains:
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. Avista is expecting to invest over $15.1 million
(system) in electric transmission projects with
completion dates in 2009.
. Several revisions have been made to transmission
expenses for the 2009/2010 pro forma period.
. Changes in replacement and maintenance costs
associated with the Company's asset management.
12 Mr. Dave DeFelice, Senior Business Analyst, will describe
13 the pro forma adjustment for non-revenue capital expenditures.
14 Mr. DeFelice explains:
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. The rising cost of essential materials specific to the
utility industry is causing significant increases in
capital project funding requirements.
. These costs must be pro formed into historical
test-year computations in order to allow necessary
recovery of our costs to serve customers.
23 Ms. Elizabeth Andrews, Manager of Revenue Requirements,
24 will discuss the Company's overall revenue requirement
25 proposals.In addition, her testimony generally provides
26 accounting and financial data in support of the Company's need
27 for the proposed increase in rates. She sponsors:
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. Electric and natural gas revenue requirementcalculations.
. Electric and natural gas results of operations.
. Pro forma operating results including expense and
rate base adjustments.
. System and jurisdictional allocations.
35 Ms. Tara Knox, Senior Regulatory Analyst, sponsors the cost
36 of service studies for electric and natural gas service, the
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 13
1 revenue normalization adjustments to results of operations, and
2 the proposed retail revenue credit rate for the PCA. Ms. Knox
3 studies indicate:
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. Electric residential service, extra large general
service and street and area lighting service
schedules are earning less than the overall rate of
return under present rates, while general service,
large general service and pumping service schedules
are earning more than the overall rate of return
under present rates. However, all customer groups
are currently providing a rate of return lower than
the rate of return requested in this case.
. Natural Gas small firm service is earning less than
the overall rate of return at present rates, while
residential, interruptible and transportation
service schedules are earning more than the overall
rate of return to varying degrees. All of the
schedules are relatively close to the overall return
indicating the current rate spread is fair.
. In the absence of new load study information, she
performed a "sensitivity" analysis under a variety
of assumptions, and demonstrated that the
cost-of-service results will not change
significantly with respect to each schedule'sreturns relative to "unity".
27 Mr. Brian Hirschkorn, Manager of Pricing, discusses the
28 spread of the proposed annual revenue changes among the
29 Company's general service schedules. He explains, among other
30 things, that:
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. The proposed net increase in electric retail rates is
7.8%, which consists of an increase in electric base
retail rates of $31.2 million or 12.8%, and a
reduction in the current PCA Surcharge.
. The monthly bill for a residential customer using an
average of 982 kWhs per month would increase from
$78.47 to $85.18 per month, an increase of $6.71 or8.6%. This includes the proposed increase in the
monthly basic or customer charge from $4.60 to $5.00.
. To achieve this, the Company is requesting that the
reduction in the PCA Surcharge become effective
coincident with the effective date of new retailrates.
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 14
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. The proposed natural gas annual revenue increase is
$2.7 million, or 3.0%.
. The monthly bill for a residential customer using 66
therms per month would increase from $79.38 to $81.94per month, an increase of $2.56 or 3.2%. This includes
the proposed increase in the monthly basic or customer
charge from $4.00 to $4.25.
10 Mr. Bruce Folsom, Senior Manager of Demand Side Management,
11 provides an overview of the Company's DSM programs and documents
12 Avista' s expenditures for electric and natural gas energy
13 efficiency programs. Mr. Folsom explains that:
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. The Company exceeded its 2008 electric efficiency
targets by approximately 40% and 2008 natural gas
efficiency target by approximately 34%.
. Avista's expenditures for electric and natural gas
energy efficiency programs from January 1, 2008through November 30, 2008 have been prudentlyincurred.
ix.
23 Avista has provided under separate cover an Attorney's
24 Certificate And Claim Of Confidentiality Relating To Portions
25 Of Avista' s Workpapers pursuant to Idaho Code Section 9-340D
26 and IDAPA 31. 01 . 01 . 067 and 31. 01 . 01 . 233 .27 x.
28 Notice to the public of the proposed rates and charges,
29 pursuant to IDAPA 31.21.02.102, will be given simultaneously
30 with the filing of the Application by posting a notice at each
31 of the Company's district offices in Idaho, and by a news
32 release, both of which are attached as Exhibit B. Notice of
33 proposed rates will also be given to all Idaho customers by
34 individual bill insert as required by rule.
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 15
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XI.
Portions of the Company's Application and accompanying
4 testimony and exhibits are based on computer models.
5 Documentation and explanation on some of the models have
6 already been provided to Commission Staff.Additional
7 documentation and explanation are provided with testimony,
8 exhibits and work papers in this filing. Further information
9 can be provided upon request.
1011 XII.
12 The Applicant stands ready for immediate consideration of
13 this Application.
14
15
16 WHEREFORE Applicant requests the commission issue its
17 Order finding the proposed rates and charges attached as part
18 of witness Mr. Hirschkorn' s testimony to be fair, just,
19 reasonable and nondiscriminatory, and effective for electric
20 and natural gas service rendered on and after February 23, 2009.
21
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 16
1 DATED at Spokane, Washington, this 22nd day of January,
2 2009
3
4 AVISTA CORPORATION
5
6
7 By rr/7
David J. Meyer
Vice President and Chief Counsel of
Regulatory & Governmental Affairs
Avista Corporation
8
9
10
11
12
Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 17
1 STATE OF WASHINGTON2 ss
3 County of Spokane
4
5 David J. Meyer, being duly sworn, on oath deposes and
6 says:
7 That he is the Vice President and Chief Counsel of Regulatory
8 and Governmental Affairs of Avista Corporation;
9 That he has read the foregoing Application, knows the contents
10 thereof, and believes the same to be true.
11
12
13
14
15
16
17
P//-i
.. David J. Meyer
18 Subscribed and sworn to before me this 22nd day of January, 2009.
19
20
21
22
23
24
Qøt¿f~
Notary Public in and for the
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Application of Avista Corporation
Case Nos. AVU-E-09-01 & AVU-G-09-01
Page 2