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HomeMy WebLinkAbout20090529Sterling Direct.pdfBEFORE THE REGEl ~ì 2009 HAY 29 M111: IDAHO PUBLIC UTILITIES COMMISSION IN THE MA ITER OF THE APPLICATION ) OF AVISTA CORPORATION FOR THE ) CASE NO. AVU.E-09-1/ AUTHORITY TO INCREASE ITS RATES) AVU-G-09-1 AND CHARGES FOR ELECT~C AND ) NATURAL GAS SERVICE TO ELECTRIC ) AND NATURAL GAS CUSTOMERS IN THE )STATE OF IDAHO. ) ) ) DIRECT TESTIMONY OF RICK STERLING IDAHO PUBLIC UTILITIES COMMISSION MAY 29,2009 1 Q.Please state your name and business address for 2 the record. 3 A.My name is Rick Sterling. My business address 4 is 472 West Washington Street, Boise, Idaho. 5 Q.By whom are you employed and in what capacity? 6 A.I am employed by the Idaho Public Utilities 7 Commission as a Staff engineer. 8 Q.What is your educational and professional 9 background? 10 A.I received a Bachelor of Science degree in Civil 11 Engineering from the University of Idaho in 1981 and a 12 Master of Science degree in Civil Engineering from the 13 University of Idaho in 1983. I worked for the Idaho 14 Department of Water Resources Energy Division from 1983 to 15 1994. In 1988, I became licensed in Idaho as a registered 16 professional Civil Engineer. I began working at the Idaho 17 Public Utilities Commission in 1994. My duties at the 18 Commission include analysis of a wide variety of electric 19 and large water utility applications. 20 Q.What is the purpose of your testimony in this 21 proceeding? 22 A.The purpose of my testimony is to review the 23 power supply modeling computations of Avista witness 24 Kalich and the power supply pro forma adjustment 25 calculations of Company witness Johnson. I propose CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) 1 STAFF 1 changes to the gas price assumptions used for power supply 2 modeling, and I propose removing all term (less than 18 3 months) gas and electric transactions from the analysis 4 used to compute power supply costs for inclusion in base 5 rates. 6 Q.What model did the Company use to dispatch its 7 portfolio of resources and obligations? 8 A.Avista uses the AURORA model for determining 9 power supply costs. Staff has a license to use the AURORA 10 model (courtesy of Avista) i and possesses the ability to 11 run the model and interpret its results. The model 12 optimizes dispatch of Company-owned resources and 13 contracts in each hour of the pro forma year. The pro 14 forma period is July 1, 2009 through June 30, 2010. The 15 model simulates true system operations by evaluating 16 future resource decisions on an hourly basis. Company 17 wi tness Kalich provides detailed testimony on the AURORA 18 model used by the Company to develop short-term power 19 purchase expense, fuel expense and short-term power sales 20 revenue. His testimony includes a good description of the 21 calculations performed by AURORA. 22 Q.Did Staff use the same AURORA version and 23 database as Avista for reviewing the Company i s proposed 24 power supply costs and for determining Staff i s proposed 25 adjustments? CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) 2 STAFF 1 A.Yes, Staff used exactly the same version of 2 AURORA (version 9.3.1001), including the same database 3 used by the Company (North_American_DB_200S-03).1 4 Q.What modifications did Avista make to the 5 database for this case? 6 A.Avista modified its portfolio of resources to 7 reflect actual operating characteristics, modified natural S gas prices to match proj ected forward prices over the pro 9 forma period, modified regional resource characteristics 10 where better information is known, and replaced Northwest 11 hydro data with Northwest Power Pool data. 12 Q.Do you accept the modifications made by Avista 13 for this case? 14 A.I accept the Company's modifications to its own 15 and to other regional resources to better reflect actual 16 operating characteristics. I also accept replacement of 17 Northwest hydro data with Northwest Power Pool data. 1S However, I do not accept the natural gas prices used by 19 Avista for the pro forma period. 20 Q.What natural gas prices did Avista use for the 21 pro forma period for its AURORA analysis? 22 A.The natural gas prices used by the Company for 23 this filing are based on a three-month average from 24 25 lIn the testimony of Avista witness Kalich, he erroneously stated that Avista used AURORA version 9.1.1003. The Company actually used version 9.3.1001. CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) 3 STAFF 1 September 1, 2008 to November 30, 2008, of monthly forward 2 prices for the pro forma period. 3 Q.What gas prices did you use for your analysis? 4 A.I used a one-month average from March 27, 2009 5 to April 27, 2009, of monthly natural gas forward prices 6 for the pro forma period. In other words, I averaged 30 7 forward prices (one each day) for each month for a 12- 8 month period. I chose to use a one-month average of 9 prices because they were the most recent available at the 10 time I performed the AURORA analysis. 11 Q.Why do you believe that the natural gas prices 12 you used are better than those used by Avista? 13 A.The prices used by Avista were reasonable at the 14 time the Company conducted its analysis and prepared its 15 case. However, forward gas prices have dropped 16 dramatically since that time. Exhibit No. 101 shows a 17 history of natural gas forward prices since January 2007. 18 Each separate line in the chart represents one month of 19 the pro forma period. In addition to gas forwards, I have 20 also shown forecasted prices from the U. S. Department of 21 Energy i s Energy Information Administration (EIA), prepared 22 since January 2008 in its monthly Short Term Energy 23 Outlook reports. Note that EIA i S forecasted prices 24 closely track gas forward prices. As indicated by the 25 chart, prices peaked last summer, but have dropped CASE NOS. AVU-E-09-1/AVU-G-09-1OS/29/09 STERLING, R. (Di) 4 STAFF 1 steadily since then. In preparing its case, Avista used 2 an average of prices bounded by the wide pair of bold 3 vertical lines (Sept os - Nov OS) shown on the graph in 4 Exhibit No. 101. I used an average of prices bounded by 5 the narrow pair of vertical lines on the right side of the 6 graph. A numerical comparison between Avista' s prices and 7 those that I used is shown in Exhibit No . 102 for various S trading hubs included in the AURORA modeling. Exhibit 9 No. 103 shows a comparison of monthly prices for the pro 10 forma period for specific gas-fired plants owned by 11 Avista. 12 I believe the prices I used for my analysis are 13 a much better indication of natural gas prices likely to 14 occur during the pro forma period. The pro forma period 15 begins in July 2009, just two months from the time this 16 testimony is being prepared. Prices obtained two months 17 before the start of the pro forma period are much more 1S likely to be representative than prices obtained 7-10 19 months before the pro forma period, especially if the 20 change in prices has been continuous and steady over the 21 past 10 months as shown in Exhibit No. 101. 22 Q.Please explain what a forward price is. 23 A.A forward price is a price quote to deliver gas 24 at some future date at a price agreed upon today. They 25 are not a forecast of what prices are expected to be at CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) 5 STAFF 1 some future time, instead, they are the actual prices at 2 which gas can be purchased now for delivery in the future. 3 Q.Current natural gas prices are extremely low 4 compared to prices seen over the past several years. Why 5 are you proposing to use lower prices for computing 6 Avista i s power supply costs rather than the higher prices 7 of the past? 8 A.For most ratemaking purposes, adjustments are 9 made to a specific test period to normalize power supply 10 expenses for normal weather and hydroelectric generation 11 and to reflect known and measurable changes for the pro 12 forma period that rates will be in effect. Adjustments 13 are also made to reflect contract changes from the test 14 period to the pro forma period. In the case of natural 15 gas fuel, however, historic averages or test period actual 16 costs are not necessarily a good approximation of costs 17 that will likely be incurred in the future pro forma 18 period. Consequently, natural gas fuel costs are now 19 usually based on forecasts of what those costs are 20 expected to be during the time when new rates will be in 21 effect. They are not historic, nor are they known and 22 measurable in the traditional sense. The gas prices I 23 have used for my AURORA analysis are the prices I expect 24 to occur during the period in which the rates set in this 25 case will be in effect. CASE NOS. AVU-E-09-1/AVU-G-U9-1 OS/29/09 STERLING, R. (Di) 6 STAFF 1 While it is true that natural gas prices are 2 currently at six-year lows, it is also true that the 3 prices I used in my analysis are the actual prices at 4 which gas can be purchased now for delivery in the pro 5 forma period. Obviously, Avista will not purchase now all 6 of the gas it expects to need during the pro forma period, 7 but I believe forward prices over the course of the past S month are the best information currently available to 9 predict prices that Avista will pay for gas to be used 10 during the pro forma period. 11 Q.Besides natural gas prices, have you made any 12 additional changes to the AURORA input data used by 13 Avista? 14 A.Yes, I have. Since its last general rate case 15 in 200S, Avista has included the actual term power and 16 natural gas transactions already entered into for delivery 17 in the pro forma period. Term transactions are monthly 1S and quarterly transactions made less than 1S months prior 19 to delivery. Avista contends that term transactions 20 should be included to more accurately reflect the actual 21 power supply expense the Company will incur during the pro 22 forma period. As of November 30, 200S, Avista had entered 23 into 33 forward electric contracts and forward natural gas 24 contracts for delivery in the pro forma period. The 25 electric contracts include 15 physical purchases and 4 CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) 7 STAFF 1 physical sales and 14 financial (fixed-for-floating swaps) 2 purchases. The natural gas transactions include 4 3 purchases and 4 sales. As Mr. Johnson explained in his 4 testimony, Avista added the physical electric transactions 5 as resources and obligations in the AURORA model and 6 included a mark-to-model adjustment in the pro forma for 7 the financial electric and natural gas transactions. If S the actual transactions lower power supply expense (lower 9 purchase costs or higher sales revenue) as compared to the 10 cost produced by the AURORA model, then the lower cost is 11 included in the pro forma expense. If the actual 12 transactions increase power supply expense (higher 13 purchase costs or lower sales revenue) as compared to the 14 cost produced by the AURORA model, then the higher cost is 15 included in the pro forma expense. 16 Q.What was the effect of Avista including term 17 transactions in calculating its pro forma power supply 1S expense? 19 A.Because many of the actual transactions included 20 by Avista as pro forma expenses were entered into during 21 the period of high forward prices during the middle of 22 200S, and because prices have declined substantially since 23 July 2008, the overall impact of the actual transactions 24 is an increase in the pro forma expense. Overall, the 25 actual transactions increase pro forma expense by CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) S STAFF 1 $4,314,400 on a system basis, ($1,527,729 Idaho 2 allocation) compared to what expenses would be based 3 solely on the AURORA model output. 4 Q.Why did you exclude term transactions from your 5 analysis? 6 A.I excluded all term transactions because I do 7 not believe that they represent normal conditions upon 8 which rates should be based. They are generally made to 9 balance loads and resources in the short-term, usually in 10 response to expectations about short-term conditions like 11 water and weather conditions. Term transactions can be 12 ei ther purchases or sales, and either physical or 13 financial trades. They are the primary element of the 14 utility's hedging strategy. Term transactions made during 15 one certain time period are highly unlikely to be repeated 16 again exactly, both in terms of price, quantity, and 17 proportion of purchases versus sales. In my opinion they 18 in no way represent normal conditions and are not 19 appropriate to include as a basis for setting base rates 20 in a general rate case. 21 Q.If you remove all term transaction from the 22 power supply cost analysis in this rate case, where do you 23 propose they be considered instead? 24 A.The proper place to account for actual term 25 transaction is in the Company's Power Cost Adjustment CASE NOS. AVU-E-09-1/AVU-G-09-1OS/29/09 STERLING, R. (Di) 9 STAFF 1 (PCA) mechanism. Term transactions create real costs that 2 the Company is obligated to payor real revenues that the 3 Company is enti tIed to receive. The PCA allows them to do 4 so on an annual basis (as opposed to a long-term basis) , 5 subject to the 90/10 sharing percentage now in place.2 6 Q.Have term transactions ever been included in the 7 analysis to compute power supply costs for inclusion in 8 base rates? 9 A.No, they have not, not for Avista or for any 10 other electric utility within the Commission's 11 jurisdiction. Avista' s proposal to include them now would 12 be a significant departure from past practice. 13 Q.Please summarize the results of your AURORA 14 analysis using your adjusted natural gas prices and after 15 removing all term transactions. 16 A.The results of my AURORA analysis are shown in 17 Exhibit No. 104. This compares to the Company's AURORA 18 results as presented in Exhibit No. 5 of Mr. Kalich. My 19 results show an annual cost that is $20.6 million less 20 than the Company's result. To these results, resource and 21 contract revenues and expenses not accounted for in AURORA 22 (e. g., fixed costs) must be added to determine net power 23 supply expense. 24 25 2Avista has requested to change the PCA sharing percentage to 95/5 in this general rate case. CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) 10 STAFF 1 Q.Please explain how your AURORA results are used 2 to make a pro forma adjustment to power supply expense. 3 A.As explained by Avista witness Johnson, "The pro 4 forma adj ustment to power supply expense involves the S determination of revenues and expenses based on the 6 generation and dispatch of Company resources and expected 7 wholesale market power prices as determined by the AURORA 8 model simulation for the pro forma period under normal 9 weather and hydro generation conditions. In addition, 10 adjustments are made to reflect contract changes between 11 the test period and the pro forma period." My Exhibit No. 12 ios shows total net power supply expense during the test 13 period and the pro forma period under both Avista' sand 14 Staff's proposals. For information purposes only, the is power supply expense currently in rates, which is based on 16 a 2009 calendar year pro forma period, is also shown. 17 As shown on Exhibit No. ios, current rates are 18 based on a system power supply cost of $174,849,000. 19 Avista' s test year power supply expenses were 20 $180, 39S, 000. Avista proposes to adjust test year power 21 supply expenses upward by $27, 64S, 000 to arrive at a pro 22 forma period power supply expense of $208,040,000 on a 23 system basis ($180,39S,OOO + $27,64S,OOO = $208,040,000). 24 This represents an increase of $33,191,000 on a system 2S basis over the amount currently built into rates. CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) 11 STAFF 1 Staff, on the other hand, proposes to decrease 2 test year power supply expenses by $13,000,000 to arrive 3 at a pro forma period power supply expense of $167,395,000 4 on a system basis ($180,395,000 - $13,000,000 = 5 $167,395,000). This represents a decrease of $7,454,000 6 on a system basis from the amount currently built into 7 rates. 8 The Idaho allocation of Avista i s proposed 9 adj ustment to test period expenses is an increase of 10 $9,789,095. Under Staff's proposal, the Idaho allocation 11 of its proposed adjustment to test period expenses is a 12 decrease of $4,603,300. The overall difference between 13 the Company i s proposed power supply cost and Staff's is 14 $40,645,000 on a total system basis. 15 Q.Is it unusual in a rate case to have a 16 difference of over $40 million between the utility's and 17 Staff's recommended power supply costs? 18 A.Yes, it is an unusually large difference. 19 However, as I explained previously, the change in natural 20 gas price that occurred between when the Company prepared 21 its case and when Staff prepared its case is highly 22 unusual. In addition, Avista included term transactions 23 in its case, which neither Avista nor any other Idaho 24 utility has ever done before. These two differences 25 between Avista i s and Staff's case account for the entire CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) 12 STAFF 1 $40 million difference in recommended power supply costs. 2 Q.Please summarize your recommended changes in 3 power supply cost. 4 A.My recommended changes to power supply costs are 5 shown in Exhibit No. 106. I have compared my recommended 6 costs with those recommended by Avista witness Johnson. I 7 have highlighted those cost items in which my 8 recommendation differs from the Company's. with only 9 three exceptions, all of my proposed adjustments are based 10 directly on AURORA results. The three exceptions are for 11 the Priest River Proj ect, the Black Creek Index purchase, 12 and the Nichols Pumping sale. Each of these three 13 contracts has a pricing structure that is tied to electric 14 market prices. Because electric market prices are 15 projected in AURORA, I have adjusted these contract costs 16 and revenues to be consistent with prices in AURORA. 17 Exhibi t No. 107 shows the computations of these 1S adjustments using my AURORA results along with the 19 adjusted workpapers of Avista witness Johnson. 20 Q.With the exception of the changes you previously 21 discussed related to gas prices and the removal of all 22 term transactions, do you accept all of the other 23 normalizing and pro forma adjustments to the October 2007 24 through September 200S test period power supply revenues 25 and expenses proposed by Avista in this case? CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) 13 STAFF 1 A.Yes, I do. All of the other adjustments 2 proposed by Avista are reasonable and in accordance with 3 adjustments accepted by this Commission in the Company's 4 prior general rate case. 5 Q.Does this conclude your direct testimony in this 6 proceeding? 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A.Yes, it does. CASE NOS. AVU-E-09-1/AVU-G-09-1 OS/29/09 STERLING, R. (Di) 14 STAFF $14 $13 $12 $11 $10 $9-:i..co $8~~..'V $7- Q,u.¡: $6D. IIfa(, $5 $4 $3 $2 $1 Henry Hub Gas Forwards for Pro Forma Months of July 2009 - June 2010 $0 """"""00 00 00 00 00 00 C"C"C"0 0 0 0 0 0 0 0 0 0 0 0 0 0 0IIIIIIIIIIIIIIICi.~C.;:C i.~C.;:C i.~ ro ro ro ::Q)0 ro ro ro ::Q)0 ro ro ro......~~I V1 Z ..~~I V1 Z ..~~I o:I I ('I I('I I ('i N i I N i ~I I0o:o:0 0 ('0 ('('0 0 N 0 ('('0 0 0 0 0 0 0 0 Settlement Date -Ju109 -Aug 09 -Sep09 -Oct 09 -Nov09 -Dec09 -Jan 10 -Feb 10 -MarlO -Apr 10 -May 10 -Jun 10 - EIA Jul 09 --EIAAug09 EIA Sep 09 EIA Oct 09 - EIA Nov 09 -EIADec09 -EIAJan 10 -EIAFeb10 -EIAMar10 -EIAApr10 -EIAMay10 -EIAJun 10 Exhibit No. 101 Case No. A VU-E-9-09-l/ AVU-G-09-1 R. Sterling, Staff OS/29/09 Pro Forma Natural Gas Prices ($/MMBtu) AECO Malin Spokane Rockies Stanfield Sumas Henry Hub Topock 7.31 7.75 8.03 5.59 7.67 7.83 8.08 7.49 4.27 4.60 4.75 3.81 4.52 4.60 5.05 4.46 Avista's prices are based on an average of forward prices for the period 8/1/08-11/30/08. Staff's prices are based on an average of forward prices for the period 3/27/09-4/27/09. Exhibit No. 102 Case No. A VU-E-9-09-l/ AVU-G-09-1 R. Sterling, Staff OS/29/09 Dispatch Model Prices Summary Gas Price Period CSII& Rathdrum Rathdrum Gas Gas Mid-C Gas Gas Mid-C Month ($/dth)($/dth)($/MWh)($/dth)($/dth)($/MWh) Jul-09 7.18 7.51 57.01 3.36 3.54 31.44 Aug-09 7.29 7.63 63.09 3.48 3.67 36.05 Sep-09 7.29 7.64 60.64 3.55 3.74 33.56 Oct-09 7.34 7.68 55.47 3.70 3.90 33.13 Nov-09 7.75 8.11 59.58 4.36 4.58 37.45 Dec-09 8.13 8.50 71.66 4.98 5.23 48.21 Jan-10 8.38 8.76 67.51 5.21 5.47 44.84 Feb-10 8.36 8.74 62.47 5.24 5.50 41.42 Mar-10 8.12 8.50 57.69 5.15 5.40 38.17 Apr-10 7.41 7.76 49.74 5.01 5.26 37.45 May-10 7.36 7.70 39.36 5.06 5.31 30.97 Jun-10 7.44 7.79 34.74 5.17 5.43 27.61 Average 7.67 8.03 56.58 4.52 4.75 36.69 CSII Coyote Springs II NE Northeast BP Boulder Park KFCT Kettle Falls Combustion Turbine Exhibit No. 103 Case No. A VU-E-9-09-l/ AVU-G-09-1 R. Sterling, Staff OS/29/09 Dispatch Model Pro Forma Costs ($000) Staff Adjusted 1 Ann Jan Feb Mar 81 .M Jun .!8!§I Oct Nov Dec 2 Hydro Projects 3 Clark Fork 0 0 0 0 0 0 0 0 0 0 0 0 0 4 Cabinet Gorge 0 0 0 0 0 0 0 0 0 0 0 0 0 5 Noxon Rapids 0 0 0 0 0 0 0 0 0 0 0 0 0 6 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 7 8 Spokane River 0 0 0 0 0 0 0 0 0 0 0 0 0 9 Litte Falls 0 0 0 0 0 0 0 0 0 0 0 0 0 10 Long Lake 0 0 0 0 0 0 0 0 0 0 0 0 0 11 Monroe Street 0 0 0 0 0 0 0 0 0 0 0 0 0 12 Nine Mile 0 0 0 0 0 0 0 0 0 0 0 0 0 13 Post Falls 0 0 0 0 0 0 0 0 0 0 0 0 0 14 Upper Falls 0 0 0 0 0 0 0 0 0 0 0 0 0 15 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 16 17 Mid-Columbia- Contracts 18 Priest RapidS 0 0 0 0 0 0 0 0 0 0 0 0 0 19 Rocky Reach 0 0 0 0 0 0 0 0 0 0 0 0 0 20 Wanapum 0 0 0 0 0 0 0 0 0 0 0 0 0 21 Wells 0 0 0 0 0 0 0 0 0 0 0 0 0 22 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 23 24 Thermals 25 Boulder Park 36 0 2 0 1 9 0 12 11 0 0 0 0 26 Colstrp 18,030 1.717 1,573 1.727 1,552 1,007 1,038 1,558 1,598 1,548 1,587 1,549 1.575 27 Coyote Springs 2 46,030 5,050 4,868 5,179 3,543 1,864 2,498 3,154 3,533 3,382 3,660 4,249 5,049 28 Kettle Falls 10,907 1,232 1,173 1,295 305 0 0 1,127 1,170 1,127 1,169 1,135 1,173 29 Kettle Falls CT 78 6 9 2 9 16 5 14 13 0 0 2 1 30 Lancaster 0 0 0 0 0 0 0 0 0 0 0 0 0 31 Northeast 43 0 0 0 0 0 0 20 23 0 0 0 0 32 Rathdrum 281 0 6 0 1 50 2 121 100 0 0 1 0 33 TOTAL 75,405 8,006 7,632 8,204 5,409 2,946 3,543 6,007 6,448 6,058 6,417 6,937 7,799 34 351 RESOURCE TOTAL 75,405 8,006 7,632 8,204 5,409 2,946 3,543 6,007 6,448 6,058 6,417 6,937 7,799 36 37 Contracts 38 Black Creek 89 0 0 0 0 0 0 0 0 0 89 0 0 39 DOPD 783 45 41 62 82 119 126 92 66 37 44 34 35 40 Market Contrct 1 7,556 642 580 642 621 642 621 642 642 621 642 621 642 41 Can Ent Return 0 0 0 0 0 0 0 0 0 0 0 0 0 42 Grant County 0 0 0 0 0 0 0 0 0 0 0 0 0 43 Clark Fork LLC 101 8 8 8 13 16 15 11 6 3 3 5 7 44 Market Contrct 2 20,192 1,715 1,549 1,715 1,660 1.715 1,660 1,715 1,715 1,660 1,715 1,660 1.715 45 Grant Displacement 5,449 397 385 384 504 522 431 516 438 434 454 473 510 46 Stimson Lumber 2,084 191 182 161 148 144 139 181 198 187 178 193 182 47 Jim Ford Creek 228 39 49 38 33 19 9 0 0 0 1 11 30 48 John Day Creek 81 4 2 2 3 11 14 12 8 6 5 8 6 49 Meyers Falls 409 36 41 50 49 51 46 24 12 14 23 30 32 50 Nichols Pumping (2.169)(225)(188)(192)(182)(156)(134)(158)(181)(163)(166)(182)(242) 51 Colstrip Start Energy 0 0 0 0 0 0 0 0 0 0 0 0 0 52 PGE CapExch 0 0 0 0 0 0 0 0 0 0 0 0 0 53 Phillps Ranch 1 0 0 0 0 0 0 0 0 0 0 0 0 54 Potlatch 0 0 0 0 0 0 0 0 0 0 0 0 0 55 Wind Contrct 2,933 258 201 302 265 256 304 245 246 206 229 236 185 56 Load Following Contrct 0 0 0 0 0 0 0 0 0 0 0 0 0 57 Sheep Creek 317 22 24 34 41 38 34 29 18 16 17 21 23 58 Upriver 2,090 271 266 265 255 250 191 66 (40)28 105 169 263 59 WNp.3 14,347 2.963 2,676 1.463 1,415 0 0 0 0 0 0 2,867 2,963 60 ST Purchases 0 0 0 0 0 0 0 0 0 0 0 0 0 61 ST Saies 0 0 0 0 0 0 0 0 0 0 0 0 0 62 SMUD (5,264)(145)(120)(152)(162)(457)(599)(682)(631)(597)(590)(564)(567) 63 Thompson River Co-Gen 0 0 0 0 0 0 0 0 0 0 0 0 0 64 TOTAL 49,225 6,220 5,696 4,781 4,746 3,170 2,856 2,693 2,497 2,452 2,749 5,583 5,781 65 66 Market Transactions 67 Market PurchaSes 35.598 5.371 3,348 2,518 1,676 471 323 1,228 4,582 3,206 4,117 3,895 4,862 68 Market Sales (34.537)(1,631)(1,751)(3,244)(4,587)(5,251)(6,494)(4,492)(776)(1,055)(1,091)(2,062)(2,103) 69 TOTAL 1,060 3,741 1,597 (726)(2,910)(4,780)(6,171)(3,265)3,806 2,151 3,026 1,833 2,760 70 711 Fuel and Market Only 76,465 11,747 9,228 7,478 2,499 (1,834)(2,628)2,743 10,254 8,209 9,443 8,770 10,558 I 72 73 Adjustments 74 Coyote Springs 2 Start Fuel 45 1 0 0 1 10 29 4 0 0 0 0 0 75 Rathdrum Start Fuel 21 0 1 0 0 3 0 9 7 0 0 0 0 76 Lancaster Start Fuel 0 0 0 0 0 0 0 0 0 0 0 0 0 77 Northeast Lost Margin 10 0 3 0 1 3 0 (0)1 0 0 1 0 78 Coyote Springs 2 Fuel Cost (1,529)(95)(91)(82)(125)(65)(84)(177)(202)(156)(105)(187)(161) 79 Lancaster Fuel Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 80 Total Adjustments (1,453)(94)(86)(82)(123)(48)(55)(164)(195)(156)(105)(186)(161) 81 821_I!Qìliijei!&¡MärllIÎ~i -'"m"'"""',,;;.~;,~,,;nW!l5lmlii QHìI!lill ..!iWI\l'!li4imiiB1mn$6fi1IlmJill 'lKifìlml6 tì,møm::lt ¡¡JIB Ilmliiilllii&"lBlmBJiifaB&z:.ì_'%W.,,:lH:;Y'~';;: Exhibit No. 104 Case No. A VU-E-9-09-l/ AVU-G-09-1 R. Sterling, Staff 05!il)09 Page 1 00 Dispatch Model Pro Forma Generation (aMW) Staff Adjusted 1 Ann Jan Feb Mar ßi !i Jun Jul A!§!Oct Nov Dec 2 Hydro Projects 3 Clark Fork 325.9 246.0 284.9 236.2 367.2 648.5 681.2 450.7 244.4 166.9 140.8 166.3 275.8 4 Cabinet Gorge 125.3 100.4 118.0 98.2 148.7 226.3 228.3 178.1 99.9 67.9 58.0 68.2 111.3 5 Noxon Rapids 200.6 145.6 167.0 137.9 218.5 422.2 452.9 272.7 144.4 99.0 82.8 98.1 164.6 6 TOTAL (aMW)325.9 246.0 284.9 236.2 367.2 648.5 681.2 450.7 244.4 166.9 140.8 166.3 275.8 7 8 Spokane River 125.6 138.4 143.5 158.7 169.1 167.9 155.6 98.8 55.0 773 95.9 119.0 130.4 9 Little Falls 23.5 27.4 27.9 30.6 32.4 32.2 29.6 17.5 9.7 13.0 16.3 21.5 24.0 10 Long Lake 58.7 66.5 67.1 75.4 82.7 83.3 74.7 43.9 25.4 33.2 40.9 52.8 59.5 11 Monroe Street 11.7 11.9 12.6 13.4 13.6 13.6 13.2 10.6 5.9 9.4 11.2 12.2 12.6 12 Nine Mile 13.3 13.7 15.4 16.7 17.7 16.6 16.2 11.2 5.8 8.3 10.9 13.2 14.5 13 Post Falls 9.8 10.3 11.5 13.4 13.7 13.5 12.9 7.1 2.8 5.3 7.3 9.9 10.4 14 Upper Falls 8.6 8.7 9.0 9.2 8.9 8.7 9.0 8.5 5.4 8.2 9.2 9.3 9.4 15 TOTAL (aMW)125.6 138.4 143.5 158.7 169.1 167.9 155.6 98.8 55.0 77.3 95.9 119.0 130.4 16 17 Mid-Columbia- Contracts 101.7 126.1 102.3 81.5 96.5 104.0 119.3 128.2 99.8 77.4 87.5 91.7 105.6 18 Priest Rapids 19.2 30.6 25.3 19.1 17.5 12.7 18.5 14.4 13.9 12.4 13.9 24.5 28.4 19 Rocky Reach 20.3 25.8 19.7 16.1 21.8 22.4 26.5 25.1 21.5 14.0 15.7 16.6 18.8 20 Wanapum 27.5 27.4 23.3 18.8 22.9 26.7 29.9 46.8 27.7 27.1 31.0 22.2 26.1 21 Wells 34.6 42.3 33.9 27.4 34.2 42.1 44.5 41.9 36.7 23.9 26.9 28.4 32.3 22 TOTAL (aMW)101.7 126.1 102.3 81.5 96.5 104.0 119.3 128.2 99.8 77.4 87.5 91.7 105.6 23 24 TOTAL 553.2 510.5 530.7 476.3 632.8 920.4 956.1 677.8 399.1 321.6 324.2 377.0 511. 25 26 Thermals 27 Boulder Park 0.1 0.0 0.1 0.0 0.0 0.2 0.0 0.5 0.4 0.0 0.0 0.0 0.0 28 Colstrip 189.7 203.4 206.3 204.6 189.9 119.3 127.1 200.8 205.9 206.2 204.4 206.2 202.9 29 Coyote Springs 2 169.3 185.0 197.6 194.1 140.7 71.0 96.0 180.5 195.6 190.2 193.8 194.1 194.1 30 Kettle Falls 34.4 40.8 43.1 43.0 10.5 0.0 0.0 44.4 46.2 45.9 46.1 46.3 46.3 31 Kettle Falls CT 0.2 0.2 0.3 0.1 0.3 0.5 0.1 0.6 0.5 0.0 0.0 0.1 0.0 32 Lancaster 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 33 Northeast 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.6 0.0 0.0 0.0 0.0 34 Rathdrum 0.8 0.0 0.2 0.0 0.0 1.2 0.0 4.3 3.3 0.0 0.0 0.0 0.0 35 TOTAL 394.6 429.4 447.5 441.8 341.4 192.1 223.3 431.7 452.6 442.3 444.3 446.7 443.4 36 37 I RESOURCE TOTAL 947.8 939.9 978.2 918.2 974.1 1,112.6 1,179.4 1,109.5 851.7 763.8 768.5 823.6 955.2 38 39 Contracts 40 Black Creek 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.4 0.0 0.0 41 DOPD 3.7 2.4 2.4 3.3 4.8 6.7 7.3 5.3 3.8 2.0 2.4 2.0 1.8 42 Market Contract 1 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 43 Can Ent Return (3.9)(3.5)(3.6)(3.7)(3.6)(3.5)(3.6)(4.2)(4.0)(4.1)(4.2)(4.0)(4.2) 44 Grant County 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 45 Clark Fork LLC 0.1 0.1 0.1 0.1 0.2 0.3 0.3 0.2 0.1 0.1 0.0 0.1 0.1 46 Market Contract 2 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 47 Grant Displacement 22.2 17.4 17.6 17.7 26.2 31.8 31.6 27.6 19.7 19.0 18.7 19.3 19.2 48 Stimson Lumber 4.2 4.2 4.4 4.5 4.3 4.0 4.0 4.0 4.4 4.3 4.0 4.5 4.0 49 Jim Ford Creek 0.4 0.6 0.8 1.2 1.0 0.6 0.3 0.0 0.0 0.0 0.0 0.2 0.4 50 John Day Creek 0.2 0.1 0.0 0.1 0.1 0.4 0.6 0.4 0.3 0.2 0.2 0.1 0.1 51 Meyers Falls 1.0 1.0 1.2 1.4 1.4 1.4 1.3 0.7 0.3 0.4 0.6 0.9 0.9 52 Nichols Pumping (7.8)(7.8)(7.8)(7.8)(7.8)(7.8)(7.8)(7.8)(7.8)(7.8)(7.8)(7.8)(7.8) 53 Colstrip Start Energy 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 54 PGE CapExch 0.1 2.4 0.0 (2.8)(0.4)1.2 0.0 (0.8)0.8 (0.4)0.4 1.7 (0.8) 55 Philips Ranch 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 56 Potlatch 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 57 Wind Contract 8.4 8.6 7.4 10.0 9.1 8.5 10.4 8.3 8.3 7.2 7.8 8.3 6.3 58 Load Following Contracts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 59 Sheep Creek 0.8 0.4 0.6 1.1 1.5 1.6 1.6 1.0 0.3 0.2 0.3 0.5 0.4 60 Upriver 6.1 8.3 9.0 10.4 10.3 9.8 7.8 2.0 (1.2)0.9 3.2 5.4 8.0 61 WNP-3 43.8 106.6 106.6 52.6 52.6 0.0 0.0 0.0 0.0 0.0 0.0 106.6 106.6 62 ST Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 63 ST Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 64 SMUD 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 65 Thompson River Co-Gen 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 66 TOTAL 179.8 240.8 238.9 188.1 199.8 155.2 153.7 136.8 125.1 122.0 130.1 237.6 235.3 67 68 Market Transactions 69 Market Purchases 92.0 142.5 105.9 77.9 50.3 13.0 11.9 39.3 138.6 116.5 154.6 129.8 123.1 70 Market Sales (135.7)(55.5)(70.3)(126.2)(191.6)(287.3)(378.4)(227.3)(35.6)(53.8)(48.6)(86.7)(66.3) 71 TOTAL (43.7)87.0 35.6 (48.3)(141.2)(274.3)(366.5)(188.0)103.0 62.6 106.1 43.1 56.8 72 73 System Load 1,083.9 1,267.7 1,252.7 1,057.9 1,032.7 993.4 966.6 1,058.3 1,079.8 948.4 1,004.7 1,104.4 1,247.3 Exhibit NO.1 04 Case No. A VU-E-9-09-l/ AVU-G-09-1 R. Sterling, Staff OS/29/09 Page 2 of3 Dispatch Model Generation (GWh) Staff Adjusted 1 Ann Jan Feb Mar &r ~Jun Jul ß!§i Oct Nov DèC 2 Hydro Projects 3 Clark Fork 2,854.5 183.0 191.5 175.7 264.4 482.5 490.5 335.4 181.8 120.1 104.8 119.7 205.2 4 Cabinet Gorge 1,097.6 74.7 79.3 73.1 107.1 168.4 164.4 132.5 74.4 48.9 43.2 49.1 82.8 5 Noxon Rapids 1,756.9 108.3 112.2 102.6 157.3 314.1 326.1 202.9 107.4 71.2 61.6 70.6 122.4 6 TOTAL 2,854.5 183.0 191.5 175.7 264.4 482.5 490.5 335.4 181.8 120.1 104.8 119.7 205.2 7 8 Spokane River 1,100.3 103.0 96.4 118.1 121.7 125.0 112.0 73.5 40.9 55.7 71.3 85.7 97.0 9 Litte Falls 205.4 20.4 18.7 22.7 23.3 24.0 21.3 13.0 7.2 9.3 12.1 15.4 17.9 10 Long Lake 514.2 49.4 45.1 56.1 59.6 62.0 53.8 32.7 18.9 23.9 30.4 38.0 44,3 11 Monroe Street 102.3 8.8 8.5 10.0 9.8 10.1 9.5 7.9 4.4 6.7 8.3 8.8 9.4 12 Nine Mile 116.8 10.2 10.4 12.4 12.8 12.4 11.7 8.3 4.3 6.0 8,1 9.5 10.8 13 Post Falls 86.0 7.7 7.7 10.0 9.9 10.0 9.3 5.3 2.0 3.8 5.4 7,2 7.7 14 Upper Falls 75,5 6.5 6.1 6.9 6.4 6.5 6.5 6.3 4.0 5.9 6.9 6.7 7.0 15 TOTAL 1,100.3 103.0 96.4 118.1 121.7 125.0 112.0 73.5 40.9 55.7 71.3 85.7 97.0 16 17 Mid-Columbia- Contracts 890.9 93.8 68.7 60.6 69.5 77.4 85.9 95.4 74.3 55.7 65.1 66.0 78.5 18 Priest Rapids 168.6 22.7 17.0 14.2 12.6 9.5 13.3 10.7 10.4 8.9 10.3 17.7 21.1 19 Rocky Reach 178.1 19.2 13.3 12.0 15.7 16.7 19.1 18.7 16.0 10.1 11.6 11.9 14.0 20 Wanapum 241.3 20.4 15.7 14.0 16.5 19.9 21.5 34.8 20.6 19.5 23.1 16.0 19.4 21 Wells 303.0 31.5 22.8 20.4 24.6 31.3 32.0 31.2 27.3 17.2 20.0 20.5 24.0 22 TOTAL 890.9 93.8 68.7 60.6 69.5 77.4 85.9 95.4 74.3 55.7 65.1 66.0 78.5 23 24 TOTAL 4,845.8 379.8 356.6 354.4 455.6 684.8 688.4 504.3 297.0 231.5 241.2 271.4 380.8 25 26 Thermals 27 Boulder Park 1.0 0.0 0.0 0.0 0.0 0.2 0.0 0.4 0.3 0.0 0.0 0.0 0.0 28 Colstrip 1,661.8 151.4 138.6 152.2 136.8 88.7 91.5 149.4 153.2 148.4 152.1 148.5 151.0 29 Coyote Springs 2 1,483.2 137,6 132.8 144.4 101.3 52.8 69.1 134.3 145.5 136.9 144.2 139.8 144.4 30 Kettle Falls 301.3 30.3 29.0 32.0 7.5 0.0 0.0 33.0 34.3 33.1 34.3 33.3 34.4 31 Kettle Falls CT 1.9 0.1 0.2 0.1 0.2 0.4 0.1 0.4 0.4 0.0 0.0 0.1 0.0 32 Lancaster 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 33 Northeast 0.9 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.5 0.0 0.0 0.0 0.0 34 Rathdrum 6.7 0.0 0.1 0.0 0.0 0.9 0.0 3.2 2.5 0.0 0.0 0.0 0.0 35 TOTAL 3,456.8 319.5 300.7 328.7 245.8 142.9 160.8 321.2 336.7 318.4 330.6 321.6 329.9 36 371 RESOURCE TOTAL 8,302.6 699.3 657.4 683.1 701.4 827.7 849.2 825.5 633.7 549.9 571.8 593.0 710.6 I 38 39 Contracts 40 Black Creek 3.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.3 0.0 0.0 41 DOPD 32.3 1.8 1.6 2.4 3.5 5.0 5.3 3.9 2.8 1.5 1.8 1.4 1.4 42 Market Contract 1 219.0 18.6 16.8 18.6 18.0 18.6 18.0 18.6 18.6 18.0 18.6 18.0 18.6 43 Can Ent Return (33.8)(2.6)(2.4)(2.7)(2.6)(2.6)(2.6)(3.1)(3.0)(3.0)(3.1)(2.9)(3.1) 44 Grant County 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 45 Clark Fork LLC 1.2 0.1 0.1 0.1 0.2 0.2 0.2 0.1 0.1 0.0 0.0 0.0 0.1 46 Market Contract 2 657.0 55.8 50.4 55.8 54.0 55.8 54.0 55.8 55.8 54.0 55.8 54.0 55.8 47 Grant Displacement 194.2 13.0 11.8 13.1 18.8 23.7 22.8 20.5 14.6 13.7 13.9 13.9 14.3 48 Stimson Lumber 37.0 3.1 2.9 3.4 3.1 3.0 2.9 3.0 3.3 3.1 3.0 32 3.0 49 Jim Ford Creek 3.7 0.4 0.5 0.9 0.8 0.4 0.2 0.0 0.0 0.0 0.0 0.1 0.3 50 John Day Creek 1.9 0.1 0.0 0.1 0.1 0.3 0.4 0.3 0.2 0.1 0.1 0.1 0.1 51 Meyers Falls 8.4 0.7 0.8 1.0 1.0 1.0 0.9 0.5 0.2 0.3 0.5 0.6 0.7 52 Nichols Pumping (67.9)(5.8)(5.2)(5.8)(5.6)(5.8)(5.6)(5.8)(5.8)(5.6)(5.8)(5.6)(5.8) 53 Colstrip Start Energy 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 54 PGE CapExch 0.9 1.8 0.0 (2.1)(0.3)0.9 0.0 (0.6)0.6 (0.3)0.3 1.2 (0.6) 55 Phillips Ranch 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 56 Potlatch 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 57 Wind Contract 73.2 6.4 5.0 7.5 6.6 6.3 7.5 6.2 6.2 5.2 5.8 6.0 4.7 58 Load Following Contracts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 59 Sheep Creek 6.9 0.3 0.4 0.8 1.1 1.2 1.1 0.7 0.2 0.2 0.2 0.3 0.3 60 Upriver 53.8 6.2 6.1 7.8 7.4 7.3 5.6 1.5 (0.9)0.6 2.4 3.9 6.0 61 WNP-3 384.0 79.3 71.6 39.1 37.9 0.0 0.0 0.0 0.0 0.0 0.0 76.7 79.3 62 ST Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 63 ST Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 64 SMUD 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 65 Thompson River Co-Gen 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 66 TOTAL 1,575.1 179.1 160.5 139.9 143.9 115.4 110.7 101.8 93.0 87.8 96.8 171.1 175.0 67 68 Market Transactions 69 Market Purchases 806.0 106.0 71.2 58.0 36.2 9.7 8.6 29.2 103.1 83.9 115.0 93.5 91.6 70 Market Sales (1.188.8)(41.3)(47.3)(93.9)(137.9)(213.8)(272.5)(169.1)(26.5)(38.8)(36.1)(62.4)(49.3) 71 TOTAL (382.8)64.7 23.9 (36.0)(101.7)(204.1)(263.9)(139.9)76.6 45.1 78.9 31.1 42.3 72 73 SYSTEM LOAD 9,494.9 943.1 841.8 787.1 743.5 739.1 696.0 787.4 803.4 682.9 747.5 795.1 928.0 Exhibit No. 104 Case No. A VU-E-9-09-1/ AVU-G-09-1 R. Sterling, Staff OS/29/09 Page 3 of 3 0: ; ( ì t r VI . i - x ÑC I v i : : \0 f " ( ' ~ . 23 a z g : \0 S ' ~ Z qc ~ ~ ~ CI ~ - c - S' e o :: i t n V I Cì I I \ 0 01 \0 0 i \ 0 - i --- Po w e r S u p p l y E x p e n s e (N o t I n c l u d i n g D i r e c t l y A s s i g n e d P o t l a t c h P u r c h a s e ) Id a h o Id a h o Sy s t e m Al l o c a t i o n Sy s t e m Al l o c a t i o n Po w e r S u p p l y E x p e n s e i n C u r r e n t B a s e R a t e s ( C a l e n d a r 2 0 0 9 p r o f o r m a ) $1 7 4 , 8 4 9 , 0 0 0 Ac t u a l O c t 0 7 - S e p t 0 8 P o w e r S u p p l y E x p e n s e s $1 8 0 , 3 9 5 , 0 0 0 Ad j u s t m e n t t o T e s t P e r i o d $2 7 , 6 4 5 , 0 0 0 $9 , 7 8 9 , 0 9 5 -$ 1 3 , 0 0 0 , 0 0 0 -$ 4 , 6 0 3 , 3 0 0 Ju l y 2 0 0 9 - J u n e 2 0 1 0 P r o F o r m a P o w e r S u p p l y E x p e n s e $2 0 8 , 0 4 0 , 0 0 0 $1 6 7 , 3 9 5 , 0 0 0 In c r e a s e / D e c r e a s e f r o m E x p e n s e i n C u r r e n t R a t e s $3 3 , 1 9 1 , 0 0 0 $1 1 , 7 5 2 , 9 3 3 -$ 7 , 4 5 4 , 0 0 0 -$ 2 , 6 3 9 , 4 6 1 Avista Corp. Staff Adjusted Power Supply Pro forma. Idaho Jurisdiction System Numbers. Oct 2007 . Sep 2008 Actual and Jul 09 . Jun 10 Pro forma No Short.Term Transactions & 3/27/09.4/27/09 Gas Prices Line No. 1 2 3 4 5 6 7 8 9 Douglas Settlement 497 122 619 122 619 10 WNP-3 12.553 2.248 14,801 2,248 14,801 11 Deer Lake-IP&L 7 0 7 0 7 12 Small Power 1,125 29 1,154 29 1,154 13 Stimson 1,964 138 2,102 138 2,102 14 Spokane-Upriver 1,790 300 2,090 300 2,090 15 Douglas Exchange Capacity 1,648 .1,648 0 -1,648 0 16 1,699 17 114 18 .242 19 Contract A 6,808 -19 6,789 -19 6,789 20 Contract B 6,764 -19 6,745 -19 6.745 21 Contract C 6,675 -17 6,658 -17 6,658 22 Contract D 7,576 .20 7,556 .20 7,556 23 CS2 Exchange 387 -387 0 -387 0 24 Northwestern Deviation Energy 1,867 -1,867 0 -1,867 0 25 BPA NT Deviation Energy 3,236 -3,236 0 -3,236 0 26 Potlatch co-Gen Purchase 18,439 -18,439 0 -18,439 0 27 Spinning Reserve Purchase 1,500 0 1,500 0 1,00 28 Ancillary Services 670 -670 0 .670 0 29 Slateline Wind Purchase .159 -159 30 '¡IL, 557 OTHER EXPENSES 31 Broker Commission Fees 104 0 104 0 104 32 REC Purchases 364 -14 350 -14 350 33 Bad Debt Reserve 2,728 -2,728 0 -2,728 0 34 Natural Gas Fuel Purchases 39,075 -39.075 0 -39,075 0 35 T olal Account 557 42.271 -41,817 454 -41.817 454 36 37 38 39 40 ~""-'iiiiiiiiliiili1;r;x;vNn'.II_nli w;n 41 42 43 44 45 46 47 48 T olal Account 547 108,398 -31,316 77,082 -55,058 53,340 565 TRANSMISSION OF ELECTRICITY BY OTHERS 49 WNP-3 789 0 789 0 789 50 Sand Dunes-Warden 20 0 20 0 20 51 Black Creek Wheeling 18 2 20 2 20 52 Wheeling for System Sales & Purchases 845 0 845 0 845 53 PTP for Colstrip & Coyote 8,427 3 8,430 3 8,430 54 BPA Townsend-Garrison Wheeling 1.173 0 1,173 0 1,173 55 Avisla on BPA. Borderline 1,483 -5 1,478 .5 1,478 56 Kootenai for Worley 39 6 45 6 45 57 Sagle-Northern Lights 136 -2 134 -2 134 58 Garrison-Burke 592 0 592 0 592 Exhibit No. 106 Case No. A VU-E-9-09-l/ AVU-G-09-1 R. Sterling, Staff OS/29/09 Page 1 of 2 Avista Corp. Staff Adjusted Power Supply Pro forma. Idaho Jurisdiction System Numbers. Oct 2007 . Sep 2008 Actual and Jul 09. Jun 10 Pro forma No Short-Term Transactions & 3/27/09 . 4127109 Gas Prices Line Oct 07 - Sep 08 No.Actuals 59 PGE Firm Wheelin 643 60 T olal Account 565 14.165 536 WATER FOR POWER 61 Headwater Benefits Payments 654 655 655 549 MISC OTHER GENERATION EXPENSE 62 Rathdrum Municipal Payment 175 -15 160 -15 160 63 64 65 66 67 68 69 Pend DES & Spinning 70 Northwestern Load Following 71 SMUDSale 72 Ancilary Services 73 Spokane Energy Service Fee - Peaker Sale 74 BPA NT Deviation Ener 75 456 OTHER ELECTRIC REVENUE 76 Renewable Energy Credit Sales 13 -13 0 -13 0 77 Gas Not Consumed Sales Revenue 41,799 -41,799 0 -41,799 0 78 Tolal Account 456 41,812 -41,812 0 -41,812 0 453 SALES OF WATER AND WATER POWER 79 Upstream Storage Revenue 303 -1 302 -1 302 454 MISC RENTS 80 Colstrip Rents 57 -33 24 -33 24 81 82 83 Potlatch Purchase Assigned to Idaho 18,439 18,439 84 Exhibit No. 106 Case No. A VU-E-9-09-l/ AVU-G-09-1 R. Sterling, Staff OS/29/09 Page 2 of 2 ~ r : '-N r / '0 ( t 0. . 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M W h Pr i e s t R a p i d s T o t a l C o s t 87 6 0 To t a l $3 6 . 6 9 67 . 8 9 0 'æ . l ~ ~ . r 16 8 , 5 9 9 14 3 , 2 8 1 22 0 , 6 9 4 $1 0 , 7 5 8 , 2 4 3 $9 . 0 7 7 , 2 9 1 67 , 5 8 7 23 , 6 2 0 4.1 4 9 , 7 3 9 $8 2 , 3 6 4 , 5 0 0 $1 9 . 8 5 3, 8 5 2 . 6 8 8 $6 7 , 0 7 4 , 5 0 0 5, 7 6 6 $2 5 8 , 5 2 3 Ja n - 1 0 5,2 0 8 $2 1 5 , 7 2 7 Fe b - 1 0 5, 7 6 6 $2 2 0 , 0 7 3 Ma r - 1 0 5, 5 8 0 $2 0 8 , 9 6 1 Ap r - 1 0 5, 7 6 6 $1 7 8 , 5 5 3 Ma y - 1 0 5,5 8 0 $1 5 4 , 0 7 9 Ju n - 1 0 5, 7 6 6 $1 8 1 , 2 9 2 Ju l - 0 9 22 . 7 3 8 20 , 3 8 2 3. 3 0 % 0. 9 9 % 0. 3 6 % 4. 6 5 % 10 %30 . 6 0 1 $1 . 3 7 2 , 0 4 0 17 , 0 1 9 15 , 6 5 3 3. 3 0 % 0. 9 9 % 0. 3 6 % 4. 6 5 % 10 %23 , 1 8 7 $9 6 0 , 4 4 6 14 , 2 4 0 13 , 9 7 0 3. 3 0 % 0. 9 9 % 0. 3 6 % 4. 6 5 % 10 %20 , 0 2 0 $7 6 4 . 0 9 2 12 , 6 2 8 16 , 5 1 0 3. 3 0 % 0. 9 9 % 0. 3 6 % 4. 6 5 % 10 %20 , 6 7 9 $7 7 4 . 3 7 1 9, 4 8 1 19 . 8 9 3 3. 3 0 % 0. 9 9 % 0. 3 6 % 4. 6 5 % 10 % $5 7 1 , 4 5 8 $ 4 3 2 , 9 9 3 $ 3 7 3 , 8 4 9 $ 3 8 6 , 1 5 5 $ 3 8 9 , 2 8 2 20 , 8 4 6 $6 4 5 . 5 2 7 $7 0 8 , 6 6 2 $2 3 . 1 6 $1 , 2 3 4 , 8 3 6 $ 8 6 4 , 4 0 1 $5 2 9 , 0 3 8 $2 2 . 8 2 9, 1 8 0 $1 8 . 6 7 $1 7 1 , 4 3 7 3, 3 3 8 $1 8 . 6 7 $6 2 , 3 4 1 $9 4 2 , 4 4 0 6,9 5 8 $1 8 . 6 7 $1 2 9 , 8 9 8 2,5 2 9 $1 8 . 6 7 $4 7 . 2 3 6 $7 0 6 . 1 7 2 $4 5 0 , 2 5 9 $2 2 . 4 9 $6 6 7 , 6 8 3 $ 6 9 6 , 9 3 4 $ 5 8 0 , 9 7 5 $4 5 3 . 8 3 4 $2 1 . 7 7 6, 0 0 6 $1 8 . 6 7 $1 1 2 . 1 5 5 2, 1 8 4 $1 8 . 6 7 $4 0 , 7 8 4 $6 0 3 , 1 9 7 $4 6 3 , 5 9 2 $2 2 . 4 2 6, 2 0 4 $1 8 . 6 7 $1 1 5 . 8 4 6 2, 2 5 8 $1 8 . 6 7 $4 2 , 1 2 6 $6 2 1 . 5 8 4 6, 2 5 4 $1 8 . 6 7 $1 1 6 , 7 8 4 2,2 7 4 $1 8 . 6 7 $4 2 , 4 6 7 $6 1 3 , 0 8 6 13 , 3 4 9 21 , 5 0 6 3.3 0 % 0.9 9 % 0.3 6 % 4.6 5 % 10 %24 , 7 3 6 2. 8 7 % 0. 0 0 % 0. 4 1 % 3. 2 8 % 5,7 6 6 $2 0 7 , 8 8 9 5, 5 8 0 $1 8 7 , 2 5 6 74 4 Oc t - 0 9 72 1 No v - 0 9 74 4 De c - 0 9 5,7 6 6 $1 9 1 , 0 1 1 3,2 7 4 $8 2 , 2 6 6 Oc t - 0 9 8. 9 1 9 o 2. 8 7 % 0.0 0 % 0. 4 1 % 3.2 8 % 5,5 8 0 $2 0 8 , 9 8 0 No v - 0 9 Au g - D 9 Se p - 0 9 10 , 3 4 4 o 17 , 6 6 3 15 , 9 6 2 3. 3 0 % 1. 8 6 % 0. 2 4 % 5. 4 0 % 5, 7 6 6 $2 7 7 , 9 5 1 De c - 0 9 21 , 1 3 7 19 , 4 0 5 3. 3 0 % 1. 8 6 % 0. 2 4 % 5. 4 0 % 10 , 7 2 6 o 10 . 3 5 7 o 2.8 7 % 0.0 0 % 0. 4 1 % 3. 2 8 % 2. 8 7 % 0. 0 0 % 0. 4 1 % 3. 2 8 % $5 3 0 , 2 1 8 $2 1 . 4 4 $3 8 0 , 3 7 6 7,4 2 1 $1 8 . 6 7 $1 3 8 , 5 7 5 $7 1 9 , 1 8 3 2, 6 9 8 $1 8 . 6 7 $5 0 , 3 9 1 $3 6 6 , 2 6 4 $3 6 6 , 2 6 4 $3 6 6 . 2 6 4 $3 6 6 , 2 6 4 o $3 8 0 , 3 7 6 o 11 , 5 8 2 13 , 9 6 5 $0 $0 $ 0 1, 2 9 5 1 , 1 1 5 1 . 2 9 3 1 , 4 9 4 1 . 8 0 2 $3 8 8 . 0 0 9 58 2 4 9 1 4 2 1 4 9 1 5 7 8 6 3 7 5 6 0 43 2 7 9 0 3 3 0 2 6 3 3 1 2 6 0 4 3 5 3 8 5 4 4 3 0 0 6 8 4 5 8 3 4 1 4 1 6 4 5 9 $7 , 5 1 7 , 4 1 7 $ 7 . 5 1 7 , 4 1 7 $ 7 . 5 1 7 , 4 1 7 $ 7 , 5 1 7 , 4 1 7 $ 7 , 5 1 7 , 4 1 7 $ 7 . 5 1 7 , 4 1 7 $ 6 , 2 1 0 , 0 0 0 64 5 5 3 6 4 2 7 3 7 6 2 7 6 3 9 1 4 3 0 48 0 2 1 8 3 6 0 4 3 6 3 1 7 4 6 4 2 7 0 5 4 5 2 0 5 1 6 4 2 8 1 4 5 5 3 2 0 1 4 5 $5 . 9 2 5 , 5 8 3 $ 5 , 9 2 5 , 5 8 3 $ 5 , 9 2 5 , 5 8 3 $ 5 . 9 2 5 , 5 8 3 $ 5 , 9 2 5 . 5 8 3 $ 5 , 9 2 5 , 5 8 3 $ 5 , 2 5 3 . 5 0 0 o o 1, 3 4 1 $3 8 8 , 0 0 9 $ 3 8 8 , 0 0 9 $ 3 8 8 , 0 0 9 $ 6 2 1 , 6 8 1 $ 6 2 1 , 6 8 1 33 2 3 2 4 3 7 3 4 1 3 4 8 3 24 6 7 9 0 2 3 3 5 6 1 2 7 7 6 3 9 2 9 8 0 7 2 3 5 9 2 9 8 $6 , 2 1 0 , 0 0 0 $ 6 , 2 1 0 , 0 0 0 $ 6 , 2 1 0 , 0 0 0 $ 6 . 2 1 0 , 0 0 0 $ 6 , 2 1 0 , 0 0 0 41 8 3 7 3 4 2 1 4 6 1 5 2 7 31 1 1 2 7 2 6 8 3 6 4 3 1 3 3 8 2 3 3 2 0 9 7 3 9 2 2 9 1 $5 . 2 5 3 . 5 0 0 $ 5 , 2 5 3 . 5 0 0 $ 5 , 2 5 3 . 5 0 0 $ 5 , 2 5 3 , 5 0 0 $ 5 , 2 5 3 , 5 0 0 Av i s t a C o r p . 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'0 S ' "" q c ~ r . tI S " N: : o-.N (ì t I ei Š - tI õ ' Z. . . o . . . Z ? ~~~~ õ I I . . a~ i ' 0 01 '0 0 i ' 0 .. , ..-- CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 29TH DAY OF MAY 2009, SERVED THE FOREGOING DIRECT TESTIMONY OF RICK STERLING, IN CASE NOS. AVU-E-09-1 & AVU-G-09-1, BY ELECTRONIC MAIL TO THE FOLLOWING: DAVID J. MEYER VICE PRESIDENT AND CHIEF COUNSEL AVISTA CORPORATION PO BOX 3727 SPOKANE WA 99220 E-MAIL: david.meyer(iavistacorp.com DEAN J MILLER McDEVITT & MILLER LLP PO BOX 2564 BOISE ID 83701 E-MAIL: joe(imcdevitt-miler.com CONLEY E WARD MICHAEL C; CREAMER GIVENS PURSLEY LLP PO BOX 2720 BOISE ID 83701-2720 E-MAIL: cew(igivenspursley.com mcc(igivenspursley.com BETSY BRIDGE ID CONSERVATION LEAGUE 710 N SIXTH STREET POBOX 844 BOISE ID 83701 E-MAIL: bbridge(iwildidaho.org CARRE TRACY 1265 S MAIN ST, #305 SEATTLE WA 98144 E-MAIL: carrie(inwfco.org KELL Y NORWOOD VICE PRESIDENT - STATE & FED. REG. A VISTA UTILITIES PO BOX 3727 SPOKANE WA 99220 E-MAIL: kelly.norwood(iavistacorp.com SCOTT ATKINSON PRESIDENT IDAHO FOREST GROUP LLC 171 HIGHWAY 95 N GRANGEVILLE ID 83530 E-MAIL: scotta(iidahoforestgroup.com DENNIS E PESEAU, Ph.D. UTILITY RESOURCES INC SUITE 250 1500 LIBERTY STREET SE SALEM OR 97302 E-MAIL: dpeseau(iexcite.com ROWENA PINEDA ID COMMUNITY ACTION NETWORK 3450 HILL RD BOISE ID 83702-4715 E-MAIL: Rowena(iidahocan.org BRAD MPURDY ATTORNEY AT LAW 2019 N 17TH ST BOISE ID 83702 E-MAIL: bmpurdy(ihotmail.com Jdw.~SEOOTARY CERTIFICATE OF SERVICE