20090211notice_of_application.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
February 11 , 2009
IN THE MATTER OF THE APPLICATION
OF A VISTA 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 NOS. A VU-O9-
A VU-O9-
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
YOU ARE HEREBY NOTIFIED that on January 23 2009, Avista Corporation dba
Avista Utilities (Avista; Company) filed an Application with the Idaho Public Utilities
Commission (Commission) for authority to increase the Company s general rates for electric and
natural gas service in Idaho by averages of 12.8% and 3., respectively. As part of the filing,
the Company also proposes to decrease the current tariff Schedule 66 Power Cost Adjustment
(PCA)! surcharge by $12.3 million, or 5%, for an overall net electric rate increase of 7.8%. If
approved, the Company revenues for electric base retail rates would increase by $31.2 million
annually; Company revenues for natural gas service would increase by $2.7 million annually.
The Company requests an effective date of February 23 , 2009 for its proposed electric/gas rate
Increase.
Electricity
Avista serves 121 000 electric customers in Idaho. Under the Company s net rate
proposal (rate case and PCA adjustment), an average residential electric customer (Schedule 1)
using 982 kilowatt hours of electricity per month would see a $6.71 per month increase or 8.
for a revised monthly bill of $85.18. This includes a Company-proposed increase in the basic
monthly customer service charge from $4.60 to $5.00. Other electric customers would see an
increase between 5.67% and 8.85%.
The proposed revenue increase for electric servIce requested in this case, the
Company states, is driven primarily by increased power supply costs, capital investments in
1 The Company s PCA mechanism is used to track changes in revenues and costs associated with variations in
hydroelectric generation, secondary prices, thermal fuel costs, and changes in power contract revenues and
expenses.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
upgrading aging infrastructure to increase capacity and reliability, and litigation and relicensing
costs for Avista s Spokane River Hydropower Projects and Lake Coeur d' Alene.
Since inception of the PCA, annual deviations in normalized power supply costs have
been shared 90%/1 0% by customers and Company shareholders. As part of the filing, the
Company proposes to revise the PCA methodology sharing mechanism from 90%/1 0%
95%/5%.
Natural Gas
Avista serves 93 000 natural gas customers in Idaho. Under the Company s rate
proposal, an average residential natural gas customer (Schedule 101) who uses 66 therms per
month would see a $2.56 increase or 3., for a revised monthly bill of $81.94. This includes a
proposed increase in the monthly basic customer service charge from $4.00 to $4.25. Larger
commercial natural gas customers would see increases ranging from 1.7% for interruptible
service Schedules 131 and 132 to 2.5% for firm large general service Schedules III and 112.
Transportation service for customer-owned gas under Schedule 146 (excluding gas cost) will
increase under the Company s proposal by 10.9%.
The proposed rate change for natural gas customers, the Company states, does not
reflect changes in the cost of natural gas purchased by A vista to serve customers. Changes in the
cost of natural gas are reflected in annual Purchased Gas Cost Adjustments (PGA).
Driving the natural gas rate request in this case are increased operating costs and
increased capital investment necessary to provide natural gas service to customers.
Evidence in support of the Company s need for a rate increase for electric and natural
gas is based on a 12-month ended September 30, 2008 test year. The Company proposes an
average rate of return on rate base of 8.80%, with a 50.00% common equity ratio and a 11.
return on equity. A vista alleges that unless it is authorized to increase rates as requested, the
Company s rates will not be fair, just and reasonable and it will not have the opportunity to
realize a fair return on its investment.
The Company s base rates and charges for electric and natural gas service were last
adjusted in 2008 (Case Nos. A VU-08-01lA VU-08-, Order No. 30647). The Company
electric PCA was last adjusted in 2008 (Case No. A VU-08-, Order No. 30645). The
Company s gas PGA was last adjusted in 2008 (Case No. A VU-08-, Order No. 30646).
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that the Commission in Order No. 30728 has
suspended the Company-proposed February 23 , 2009 effective date for a period of thirty (30)
days plus five (5) months from February 23 , 2009, or until such time as the Commission may
issue an Order accepting, rejecting or modifying the Application in this matter.
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case Nos.
A VU-09-01 and/or A VU-09-01 for the purpose of becoming a party, i., to present
evidence, to acquire rights of cross-examination, to participate in settlement or negotiation
conferences, and to make and argue motions must file a Petition to Intervene with the
Commission pursuant to Rules 72 and 73 of the Commission s Rules of Procedure, IDAPA
31.01.01.072 and .073. Persons desiring to acquire intervenor rights of participation must file a
Petition to Intervene on or before Wednesday, February 25, 2009. Persons seeking intervenor
status shall also provide the Commission Secretary with their electronic mail address to facilitate
future communications in this matter.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views
without parties' rights of participation and cross-examination are not required to intervene and
may present their comments without prior notification to the Commission or to other parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed. The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that discovery is available in Case Nos. A VU-
09-01 and A VU-09-01 pursuant to the Commission s Rules of Procedure, IDAPA
31.01.01.221-234.
YOU ARE FURTHER NOTIFIED that the Company s Application and supporting
testimony, exhibits and workpapers in Case Nos. A VU-09-01 and A VU-09-01 can be
reviewed at the Commission s office in Boise, Idaho and at the Idaho offices of Avista Utilities
during regular business hours. The Application is also available for public inspection on the
Commission s website at www.puc.idaho.gov under "File Room" and then "Electric Cases
and/or "Gas Cases.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Avista s representatives in this matter:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
DAVID J. MEYER
VICE PRESIDENT, CHIEF COUNSEL, REG. & GOV'T AFFAIRS
A VISTA CORPORATION
PO BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WA 99220-3727
E-mail: david.meyer~avistacorp.com
KELL Y NORWOOD
VICE PRESIDENT - STATE & FEDERAL REGULATION
A VISTA UTILITIES
PO BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WA 99220-3727
E-mail: keny.norwood~avistacorp.com
YOU ARE FURTHER NOTIFIED that Avista s intrastate revenue requirement, and
every component of it, both rate base and expense, are at issue. The Commission may grant
deny, or modify the revenue requirement requested and may find a revenue requirement different
from that proposed by any party is just, fair and reasonable. IDAP A 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Avista retail
customers, both recurring and non-recurring, including those of special contract customers, are at
issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, reject or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just, fair and reasonable.
IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings and may approve, reject or modify existing or
proposed relationships among and between customer classes or rate groupings.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges, abolish, create or reduce components of
rates and charges, abolish, reduce or create customer classes or rate groupings, and abolish
reduce or create absolute or relative differences among and between existing classes or rate
groupings of customers. IDAPA 31.01.01.124.02.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations
service, instrumentalities, equipment, facilities, classifications, and customer relations of the
utility are at issue, and the Commission may address any of them in its order. IDAP A
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and that 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 according to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA). Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-mail: secretary~puc.idaho.gov
DATED at Boise, Idaho this It-!'day of February 2009.
Commission Secretary
bls/N:A VU-09-01 A VU-09-01 sw
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE