20090529notice_of_application_order_no_30826.pdf

Office of the Secretary
Service Date
May 29, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION DBA A VISTA
UTILITIES FOR AUTHORITY TO
DECREASE ITS NATURAL GAS RATES
CASE NO. A VU-09-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF
COMMENT /PROTEST DEADLINE
INTERLOCUTORY
ORDER NO. 30826
YOU ARE HEREBY NOTIFIED that on May 19, 2009, Avista Corporation dba
Avista Utilities (A vista; Company) filed an Application with the Idaho Public Utilities
Commission (Commission) requesting authority to adjust its natural gas tariff Schedule 155
amortization rates to refund additional deferred amounts in its Purchased Gas Cost Adjustment
(PGA) balancing account.
More specifically, the Company seeks to increase its monthly Schedule 155
amortization rate by 8.1~ per therm from 7.711~ to 15.805~ for Schedules 101 (General Service)
and 111 (Large General Service) customers. Schedule 101 residential and small commercial
customers using an average of 65 therms per month will see a monthly bill reduction of $5.26 (or
7%), from a present bill of $78.23 to a bill of $72.97 per month. Large interruptible customers
(Schedule 131) will see a decrease in gas rates as their Schedule 155 amortization rate increases
from 6.574~ to 12.033~ per thermo The Company requests that the proposed tariff changes be
made effective on June 1 , 2009.
The Commission in this Interlocutory Order approves the Company s Application for
a natural gas rate reduction effective June 1 , 2009, and establishes a schedule for Modified
Procedure (IDAPA 31.01.01.201-204) and written comment.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDERNO. 30826
BACKGROUND
On September 30, 2008, the Commission in Avista s annual Purchased Gas Cost
Adjustment (PGA) filing authorized the use of a $0.78646 per therm weighted average cost of
gas (WACOG) for the Company s Schedule 150 tariff and approved an amortization rate of
1. 727 ~/therm for the Schedule 155 tariff used to refund the credit amount in the deferred gas cost
balancing account to customers. Case No. A VU-08-, Order No. 30646.
Since September 30, 2008, wholesale natural gas prices have fallen below the
projected prices used to calculate the approved W ACOG. As a result of lower gas cost
purchases, deferred gas costs (i., the refund balance) due customers have grown significantly.
On January 6, 2009, the Commission approved the Company s request to increase
the Schedule 155 amortization rate from 1.727~ per therm to 7.711~ per therm to refund an
increase in the credit balance for customers of approximately $4 million through October 31
2008. Case No. A VU-09-, Order No. 30714.
A vista states that it has received considerable feedback from customers regarding
lower wholesale natural gas prices. Given this feedback, higher winter heating bills, and the
ongoing recession, the Company believes that it is appropriate to again reduce natural gas rates.
In this filing, the Company proposes to adjust the amortization rate to refund additional deferred
amounts accumulated since November 2008 (December-April) to customers over a 12-month
period. These additional deferred amounts result in an incremental balance of approximately
$6.4 million accumulated since November. The Company is not proposing to change the
W ACOG approved in 2008.
COMMISSION FINDINGS
The Commission has reviewed the filings of record in Case No. A VU-09-03. We
find the June 1 , 2009, effective date requested by the Company for a decrease in its natural gas
rates does not allow sufficient time for notice, investigation and comment. It is fair, just and
reasonable, however, to approve the Company s request for an increase in its Schedule 155
amortization rate and related reduction in natural gas rates by Interlocutory Order for the
proposed effective date. We establish the schedule below for Modified Procedure and written
comments and will take up and consider the Company Application and continued
reasonableness of our Interlocutory Order again following the written comment deadline.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30826
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. A VU-09-03. The Commission has preliminarily determined that the
public interest regarding the Company s Application may not require a hearing to consider the
issues presented and that issues raised by the Application may be processed under Modified
Procedure , by written submission rather than by hearing. Reference Commission Rules of
Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
Procedure and stating why Modified Procedure should not be used.
31.01.01.203.
Reference IDAP A
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the Application and the Commission s use of Modified Procedure in
Case No. A VU-09-03 is Friday, June 19, 2009. Persons desiring a hearing must specifically
request a hearing in their written protest or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and enter its
Order without a formal hearing. If comments or protests are filed within the deadline, the
Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it. Reference IDAP
31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case
No. A VU-09-03 should be mailed to the Commission and the Company at the addresses
reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
Brian Hirschkorn
Craig Bertholf
A vista Utilities
1411 E. Mission
PO Box 3727
Spokane, W A 99220-3727
E-mail: brian.hirschkorn~avistacorp.com
craig. bertholf~avistacorp.com472 W. Washington Street
Boise, ID 83702-5918
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30826
All comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to A vista at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Application in Case No. A VU-09-
may be viewed at www.puc.idaho.gov by clicking on "File Room" and "Electric Cases " or can
be viewed during regular business hours at the Idaho Public Utilities Commission, 472 W.
Washington Street, Boise, Idaho and at the Idaho offices of Avista Utilities.
ORDER
In consideration of the foregoing and as more particularly described above, the
Commission by this Interlocutory Order approves A vista s Application and revised amortization
rates for Schedule 155 for an effective date of June 1 , 2009. The Company is directed to file
conforming tariffs.
IT IS FURTHER ORDERED and the Commission approves the foregoing schedule
for Modified Procedure and deadline for written comments.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30826
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ,;29""
day of May 2009.
JI EMPTON, P SIDENT
l~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~Ew
Commission Secretary
bls/O:A VU-09-03 _
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30826