20090519Application.pdf

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Corp.
Utilities Commission Avu-o -o9-è)3
I.P.V.C. No. 27 - Natural Gas Service
Enclosed for filing with the Commission is the following revised tarff sheet:
Tenth Revision Sheet 155 canceling Ninth Revision Sheet 155
This filing proposes to decrease rates for the Company's Idaho natural gas customers by
8.1 cents per therm, or about 6.7% for residential and small commercial (Schedule 101)
customers. Larger-use customers served under Schedule 111 would see an average
decrease of7.8%. The Company requests that the proposed tarff change be made
effective on June 1, 2009, under modified procedure with less than statutory notice.
Over the course ofthis past winter and early spring, wholesale natual gas prices
continued to falL. In addition, the weather in the company's servce area was colder than
normal during this time, resulting in customer usage that was higher than projected.
These two factors have resulted in a large deferred gas cost refund balance due
customers. In January 2009, the company reduced natural gas rates 4.7% for most
customers, to amortize approximately 72% of the deferral balance at the end of
November 2009. Ths filing proposes to adjust the amortization rate(s) to refud
additional deferred amounts accumulated since November 2008 (December-April) to
customers over a twelve-month period. These additional deferred amounts result in an
incremental balance of approximately $6.4 milion accumulated since November. The
Company is not proposing to change the WACOG approved in the September 2008 PGA
filing.
The company has received considerable feedback from customers regarding lower
wholesale natual gas prices. Given this feedback, higher winter heating bils, and the
on-going recession, the Company believes that it is appropriate to again reduce natural
gas rates.
The proposed rate decrease and Schedule 155 amortization rate for both Schedule 101
and 111 is as follows:
Present
Amort. Rate
($0.07711)
Decrease
pertherm
($0.08094)
Proposed
Amort. Rate
($0.15805)
The proposed decrease would result in a monthly bil reduction of$5.26 for a residential
customer using an average of 65 therms per month, from a present bil of $78.23 to
$72.97 per month. The Company wil issue a media release coincident with this filing,
which is enclosed herewith.
The company wil also file its anual PGA in the fall. Given the level of the proposed
amortization rate reflected in this filing, there may be an increase (a smaller refund rate)
to reflect the deferral balance at that time. However, the company has purchased over a
third of its projected gas requirements for the 2009-10 PGA year at prices substantially
below the present weighted cost of gas in rates. As long as wholesale prices do not
escalate considerably prior to the PGA filing, the company expects that it wil be able to
decrease natural gas rates again this fall.
Also enclosed is a copy of the workpapers supporting the proposed decrease, and a copy
of the bil insert that wil accompany customers' June bil.
If you have any questions regarding this fiing, please contact Brian Hirschkom at (509)
495-4723 of Craig Bertholf at [phone].
Sincerely,~ ~,. i.
Kelly Norwood
Vice President, State and Federal Regulation
Enc.
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CERTIFICATE OF SERVIllMAY 19 M1 9: 34
I HEREBY CERTIFY that I have served Avista Corporation dba Avista Utilities' filing with Tariff
IPUC No. 27 Natural Gas Service via electronic mail where available or by mailng a copy
thereof, postage prepaid to the following:
Jean 0 Jewell, Secretary
Idaho Public Utilities Conimission
472 W. Washington Street
Boise, 1083720-5983
Paula Pyrón
Northwest Industrial Gas Users
4113 Wolfberry Court
Lake Oswego, OR 97035-1827
Chad Stokes
Cable Huston Benedict Haagensen & Lloyd, LLP
1001 SW 5th, Suite 2000
Portland, OR 97204-1136
Curt Hibbard
St. Joseph Regional Medical Center
P.O. Box 816
Lewiston, 10 83501
~~18th day of May 2009.
Executive Assistant