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HomeMy WebLinkAbout20100323Application.pdfAvista Corp. 1411 East Mission P.O. Box 3727 Spokane. Washington 99220-0500 Telephone 509-489-0500 Toll Free 800-727-9170 ncr:,-i ., l~'" ". ~~'V'STJI. Corp. 2010 MAR 23 At11O: S1 March 22, 2010 Jean D. Jewell Commission Secretary Idaho Public Utilties Commission 472 W. Washington St. Boise, il 83702 RE: Tariff I.P.D.C. No. 28 (Electrc) and TarffI.P.U.C. No. 27 (Natual Gas) Docket Nos. AVU-E-10-01 and A VU-G-10-01 Enclosed for filing with the Commission are an original and nine copies of an Application by Avista Corporation, dba Avista Utilities (Avista), dated March 22,2010 for approval of revised electrc and natural gas rates. This fiing reflects a general rate increase for both electrc and natural gas service in the State ofIdaho, to be effective April 23, 2010. A vista has also included for filing nine copies of its prepared direct testimony, and exhibits in support of its revised rates, as well as three copies of workpapers showing how test 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 nature of these fies. 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 the Attorney's Certificate and Claim of Confidentiality Relating to Portions of Avista's Exhibits and Workpapers. Sincerely, ~ ¿,.Kelly O. Norwood Vice President Enclosures F(E:CE Ull û Mß.R 23 Aii 10: S1 r-" '~,.i ;,' i__ :-~",' c: ()-~VJ i-¡ff f ,S ~~~ 1 () ¡:,~ I HEREBY CERTIFY that I have this 22rd day of March, 2010, served the foregoing application, and Avista's Direct Testimony and Exhibits in Docket No. AVU-E-10-01 and AVU-G-10-01 upon the following parties, by mailng a copy thereof, property addressed with postage prepaid to: CERTIFICATE OF SERVICE 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 Utiities Commission 472 W. Washington Boise, 10 83702-0659 Peter J. Richardson Richardson & O'Leary PLLC 515 N. 2ih Street Boise, 10 83702 Howard Ray Clearwater Paper 803 Mil Road P.O. Box 1126 Lewiston, 10 83501-1126 Dean J. Miler McDevitt & Miler, LLP 420 W. Bannock St. Boise, 10 83701-2564 Scott Atkison Idaho Forest Products 171 Highway 95 N. Grangevile, 10 83530 Larry Crowley Energy Strategies Institute 5549 South Cliffs Edge Avenue Boise, 1083716 Patrick Ehrbar Manager, Rates & Tariffs ("'.t.::t', ,. ;... ~:_l" DAVID J. MEYER VICE PRESIDENT AN CHIEF COUNSEL FOR lûW rfM? 23 . REGULATORY & GOVERNENTAL AFFAIRS lu: 58 AVISTA CORPORATION P.O. BOX 3727 1411 EAST MISSION AVENUE SPOKAE, WASHINGTON 99220-3727 TELEPHONE: (509) 495-4316 FACSIMILE: (509) 495-8851 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-10-01 CASE NO. AVU-G-10-01 APPLICATION OF AVISTA CORPORATION (ELECTRIC AND NATURAL GAS) 1 Application is hereby made to the Idaho Public Utilities 2 Corrission for an Order granting Avista Corporation 3 (Applicant, Company, or Avista) the authority to increase its 4 rates and charges for electric and natural gas service to 5 electric and natural gas customers in the State of Idaho, to 6 be effective on and after April 23, 2010. 7 In this filing Avista is proposing an increase in 8 electric base rates of $32.1 million or 14.0%. With regard to 9 natural gas, the Company is requesting an increase in base rates 10 of $2.6 million or 3.6%. 11 In support of this Application, Applicant states as 12 follows:13 I. 14 The name of the Applicant is Avista Corporation, dba 15 Avista Utili ties, a Washington corporation whose principal 16 business office is 1411 East Mission Avenue, Spokane, 17 Washington, which is qualified to do business in the State of 18 Idaho. Avista maintains district offices in Moscow, Lewiston, 19 Sandpoint and Coeur d' Alene, Idaho.Corrunications in 20 reference to this Application should be addressed to the 21 following: 22 David J. Meyer, Esq.23 vice President and Chief Counsel for 24 Regulatory & Governmental Affairs25 Avista Corporation 26 P . O. Box 3727 27 1411 E. Mission Ave 28 Spokane, WA 99220-372729 Phone: ( 509 ) 495 - 4 316 30 Fax: (509) 495-8058 31 Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 1 1 Kelly Norwood 2 vice President - State and Federal Regulation3 Avista Utilities 4 P . O. Box 3727 5 1411 E. Mission Ave 6 Spokane, WA 99220-37277 Phone: ( 509) 495 - 4 2678 Fax: ( 509 ) 49 5 - 2 581 910 Ii. 11 Avista is a public utility primarily engaged in the 12 generation, transmission and distribution of electric power 13 and the distribution of natural gas in certain portions of 14 eastern and central Washington, northern Idaho, as well as 15 distribution of natural gas in northeast and southwest Oregon. 16 The Company is subj ect to the jurisdiction of this Corrission, 17 the washington Utili ties and Transportation Corrission, the 18 Oregon Public Utility commission, the Montana Public Service 19 Corrission and the Federal Energy Regulatory Corrission.20 III. 21 Applicant's existing base rates and charges for electric 22 service were approved as a resul t of the Corrission' s Order No. 23 30856, dated July 17, 2009, in Case No. AVU-E-09-01. The 24 existing rates and charges for electric service on file with 25 the Corrission (designated as Applicant's Tariff No. 28) are 26 incorporated herein as though fully attached hereto.27 iv. 28 Applicant's existing base rates and charges for natural 29 gas service were approved as a result of the Corrission' s Order 30 No. 30856, dated July 17, 2009, in Case No. AVU-G-09-01. The 31 existing rates and charges for natural gas service on file with Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 2 1 the Corrission (designated as Applicant's Tariff No. 27) are 2 incorporated herein as though fully attached hereto.3 v. 4 The electric and natural gas rates and charges which 5 Applicant desires to have the Corrission approve are filed 6 herewith as Exhibit A. Also included in Exhibit A are copies 7 of the tariff schedules showing the proposed changes by 8 striking over the existing rates and underlining the proposed 9 rates.Company witness Mr. Ehrbar fully describes in his 10 testimony and exhibits the proposed changes.11 VI. 12 The circumstances and conditions relied upon, and 13 justification for, the approval of the proposed increase in 14 rates for electric and natural gas service are as follows: 15 Applicant's present electric and natural gas rates will 16 not produce sufficient revenue to provide operating income 17 required to allow the Applicant the opportunity to earn the 18 8.55% rate of return being requested and supported in this 19 Application. 20 The Applicant's last electric and natural gas general rate 21 case change (Case Nos. AVU-E-09-01 and AVU-G-09-01) in Idaho 22 was effective in August 2009. The proposed revenue increases 23 are driven primarily by increased power supply costs, increased 24 costs to meet additional compliance requirements, the need to 25 replace aging infrastructure, and changes in other various 26 costs of providing electric and natural gas services to our 27 cus tomers . Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 3 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 December 31, 2009 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 Corrission 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 8.55% is fair, just and reasonable. The Company's 20 exhibi ts and testimony support an increase in retail electric 21 and natural gas revenue of $32.1 million and $2.6 million, 22 respectively.Simultaneous 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 tes t year data were adj us ted.26 VIII. Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 4 1 A complete justification of the proposed increases in 2 electric and natural gas rates is provided in the testimony and 3 exhibi ts of Company witnesses. These witnesses and a brief 4 surrary of their testimony are as follows. 5 6 Mr. Scott L. Morris, Chairman, President, and Chief 7 Executive Officer of Avista, presents the Company's policy 8 testimony and provides an overview of Avista Corporation. He 9 also surrarizes the Company's rate requests in this filing, the 10 primary factors driving the Company's need for rate relief, and 11 provides some background on why utility costs are continuing 12 to increase. In addition to maj or increases in power supply 13 costs, the Company continues to experience increasing costs 14 from additional compliance requirements, and the need to 15 replace aging infrastructure. He explains that it is simply 16 not possible to cut other costs enough to offset these cost 17 increases. 18 In his testimony, however, Mr. Morris does provide an 19 overview of some of the measures the Company has taken to cut 20 costs, as well as initiatives to increase operating 21 efficiencies in an effort to mitigate a portion of the cost 22 increases. He explains the Company's customer support programs 23 in place to assist our customers, as well as our corrunications 24 initiatives to help customers better understand the changes in 25 costs that are causing our rates to go up. 26 Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 5 1 Mr. Mark Thies, Senior Vice President and Chief Financial 2 Officer describes, among other things, the overall financial 3 condition of the Company, its current credit ratings, the 4 Company's plan for improving its financial health, its near term 5 capital requirements, the proposed capital structure, and the 6 overall rate of return proposed by the Company.Mr. Thies 7 explains that: 8 . Avista' s plans call for significant capital 9 expendi ture requirements for the utility over the10 next two years to assure reliability in serving our 11 customers and meeting customer growth. Capital12 expenditures of approximately $420 million13 (excluding Stimulus Proj ects) are planned for14 2010-2011 for customer growth, investment in15 generation upgrades, transmission and distribution16 facilities for the electric utility business as well 17 as necessary maintenance and replacements of our18 natural gas utility systems. Capital expenditures19 of approximately $1.2 billion are planned for the 20 five year period ending December 31, 2014. Avista21 needs adequate cash flow from operations to fund22 these requirements, together wi th access to capital23 from external sources under reasonable terms. 24 25 . Avista's corporate credit rating from Standard & 26 Poor's (S&P) is currently BBB- and Baa3 from Moody's27 Investors Service (Moody's). Avista Utilities must28 operate at a level that will support a strong29 investment grade corporate credit rating, meaning30 "BBB" or "BBB+", in order to access capital markets31 at reasonable rates, which will decrease long-term32 borrowing costs to customers. Avista has been placed33 on "positive" outlook by both S&P and Moody's, which34 may result in an upgrade as early as August 2010. The35 regulatory environment will be taken into36 consideration by the rating agencies when reviewing37 Avista for a possible upgrade. Maintaining solid38 credit metrics and credit ratings will also help39 support a stock price necessary to issue equity to40 fund capital requirements. 41 42 . The Company has proposed an overall rate of return43 of 8.55%, including a 50% equity ratio and a 10.9%44 return on equity. Our cost of debt is 6.2%. We 45 believe the 10.9% proposed ROE provides a reasonable Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 6 8 He conc 1 udes that: 9 10 11 12 13 14 15 16 . In order to reflect the risks and prospects associated with Avista's jurisdictional utility operations, his analyses focused on a proxy group of seventeen other utilities with comparable investment risks. Consistent with the fact that utilities must compete for capital with firms outside their own industry, he also references a proxy group of comparable risk companies in the non-utility sector of the economy; 17 . Based on his evaluation of the strength of the various18 methods, Dr. Avera concluded that the cost of equity19 for the proxy groups of utilities and non-utility20 companies is in the 10.9 percent to 12.5 percent range,21 or 11.1 percent to 12.7 percent after incorporating an22 adjustment to account for the impact of corron equity23 flotation costs; 24 . Because Avista' s requested ROE of 10.9 percent falls at25 the very bottom of his "bare bones" cost of equity range, 26 it represents a conservative estimate of investors'27 required rate of return. 2829 Mr. Richard Storro, Vice President of Energy Resources, 30 provides an overview of Avista' s resource planning and power 31 supply operations. This includes surraries of the Company's 32 generation resources, the current and future load and resource 33 position, future resource plans, and an update on the Company's 34 plans regarding the acquisi tion of new renewable resources. He 35 also addresses hydroelectric and thermal proj ect upgrades, and 36 an update on recent developments regarding hydro licensing. Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 7 1 Mr. Clint Kalich, Manager of Resource Planning & Power 2 Supply Analyses, describes the Company' s AURO~p model 3 (Dispatch Model) inputs, assumptions, and resul ts related to the 4 economic dispatch of Avista' s resources to serve load 5 requirements, and market forecast of electricity prices. He 6 explains: 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 . 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. . How the Model dispatches Avista' s resources and contracts in a manner that maximizes benefits tocustomers. . 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. Mr. William Johnson,Wholesale Marketing Manager, 22 identifies and explains the proposed normalizing and pro forma 23 adjustments to the test period power supply revenues and 24 expenses. He also explains the new base level of power supply 25 costs for Power Cost Adjustment (PCA) calculation purposes, 26 using the pro forma costs proposed by the Company in this filing. 27 Mr. Johnson describes: 28 . The proposed normalizing and pro forma adjustments to 29 the January 2009 through December 2009 test period 30 power supply revenues and expenses. 31 . The proposed level of authorized expense and retail 32 revenue credit for the Power Cost Adjustment (PCA)33 calculation purposes, using the pro forma costs34 proposed by the Company in this filing. 35 36 Mr. Don Kopczynski, Vice President of Transmission and 37 Distribution Operations, describes Avista' s electric and Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 8 1 natural gas energy delivery facilities and operations, and 2 recent efforts to increase efficiency and improve customer 3 service. Mr. Kopczynski describes: 4 . Avista' s customer service programs such as the energy 5 efficiency, Proj ect Share, CARES program, Senior 6 Outreach Program, and payment plans. Some of these7 programs will serve to mitigate the impact on 8 customers of the proposed rate increase. 9 . The Company's multifaceted effort to increase10 customer service automation, including replacement11 and upgrade of the new Enterprise Voice Portal (EVP)12 system. 1314 Mr. Scott Kinney, Director, Transmission Operations, 15 discusses the electric transmission and distribution capital 16 investments included in this case, and presents the Company's 17 pro forma period transmission revenues and expenses. 18 Mr. Dave DeFelice, Senior Business Analyst, describes the 19 Company's proposed pro forma adjustments for capital 20 investments in utility plant for the 2009 test period. Mr. 21 DeFelice explains: 22 . The rising cost of essential materials specific to the23 utility industry is causing significant increases in24 capi tal proj ect funding requirements. 25 . These costs must be pro formed into the test-year in26 order to allow necessary recovery of our costs to27 serve customers. 2829 Mr. Jim Kensok, Vice-President, Chief Information Officer, 30 describes Avista' s information technology cost recovery needs 31 and incremental costs. These incremental costs include 32 increases in expenses for supporting applications utilized by 33 the Company, additional required security and compliance 34 requirements, and additional dollars required for hosting fees, 35 application fees, software maintenance and license fees. Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 9 1 Mr. Kevin Christie, Director of Gas Supply, describes the 2 additional Jackson Prairie (JP) natural gas storage that the 3 utili ty will receive to serve customers beginning May 1, 2011. 4 He also describes the allocation of this additional storage and 5 the associated costs to the three jurisdictions that the Company 6 serves. 7 Ms. Elizabeth Andrews, Manager of Revenue Requirements, 8 discusses the Company's overall revenue requirement proposals. 9 In addition, her testimony provides accounting and financial 10 data in support of the Company's need for the proposed increase 11 in rates. She sponsors: 12 . Electric and natural gas revenue requirement13 calculations. 14 . Electric and natural gas results of operations. 15 . Pro forma operating results, including expense and16 rate base adjustments. 17 . System and jurisdictional allocations. 18 19 Ms. Tara Knox, Senior Regulatory Analyst, sponsors the 20 cost-of-service studies for electric and natural gas service, 21 the revenue normalization adj ustments to resul ts of operations, 22 the results from the Company's demand study, and the proposed 23 retail revenue credit rate. Ms. Knox's studies demonstrate: 24 25 26 27 28 29 30 31 32 33 34 . Electric residential service, extra large general service, and pumping service schedules are earning less than the overall rate of return under present rates, while general service, large general service and the street and area lighting service schedules are earning more than the overall rate of returnunder present rates. . Natural Gas residential service schedule is earning less than the overall rate of return at present rates, and all other service schedules are earning more than the overall rate of return. Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 10 1 2 Mr. Patrick Ehrbar, Manager of Rates and Tariffs, discusses 3 the spread of the proposed annual revenue changes among the 4 Company's general service schedules. He explains, among other 5 things, that: 6 . The proposed increase in electric base rates is 14.0%, 7 which consists of an increase in electric base retail8 rates of $32.1 million. 9 . The monthly bill for a residential customer using an 10 average of 964 kWhs per month would increase from11 $77.95 to $89.35 per month, an increase of12 $11.40 or 14.6%. This includes the proposed increase13 in the monthly basic or customer charge from $4.00 to14 $6.75. 15 . The proposed natural gas annual revenue increase in16 base rates is $2.6 million, or 3.6%. 17 . The monthly bill for a residential customer using 6318 therms per month would increase froit $56.03 to $58.8019 per month, an increase of $2.77 or 4.9%. This includes20 the proposed increase in the monthly basic or customer21 charge from $4.00 to $6.75. 22 23 Mr. Bruce Folsom, Senior Manager of Demand Side Management, 24 provides an overview of the Company's DSM programs and documents 25 Avista' s expenditures for electric and natural gas energy 26 efficiency programs. Mr. Folsom explains that: 27 28 29 30 31 32 33 34 35 36 . The Company continues to exceed the targets established as part of the IRP process. Electric efficiency savings for 2009 were 141% of the annual target and natural gas therms saved for 2009 were 128% of the annual target. . Avista' s expenditures for electric and natural gas energy efficiency programs from January 1, 2008through December 31, 2009 have been pruden t lyincurred.37 ix. 38 Avista has provided under separate cover an Attorney's 39 Certificate And Claim Of Confidentiality Relating To Portions Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 11 1 Of Avista' s Exhibits and Workpapers pursuant to Idaho Code 2 Section 9-340D and IDAPA 31.01.01.067 and 31.01.01.233.3 X. 4 Notice to the public of the proposed rates and charges, 5 pursuant to IDAPA 31.21.02.102, will be given simultaneously 6 with the filing of the Application by distributing a customer 7 notice, as a bill stuffer, to each customer over a billing 8 cycle, and by a news release, both of which are attached as 9 Exhibit B. Notice of proposed rates will also be given to all 10 Idaho customers by individual bill insert as required by rule.11 XI. 12 Portions of the Company's Application and accompanying 13 testimony and exhibits are based on computer models. 14 Documentation and explanation on some of the models have 15 already been provided to Commission Staff.Additional 16 documentation and explanation are provided with testimony, 17 exhibi ts and workpapers in this filing. Further information 18 can be provided upon request.19 XII. 20 The Applicant stands ready for irrediate consideration of 21 this Application. 22 WHEREFORE Applicant requests the Commission issue its 23 Order finding the proposed rates and charges to be fair, just, 24 reasonable and nondiscriminatory, and effective for electric 25 and natural gas service rendered on and after April 23, 2010. 26 Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 12 4 5 6 7 8 9 10 11 12 1 2 DATED at Spokane, Washington, this 22nd day of March, 2010 3 AVISTA CORPORATION By OIL ~vid J.' Meyer Vice President and Chief Counsel for Regulatory & Governmental Affairs Avista Corporation Application of Avista Corporation Case Nos. AVU-E-10-01 & AVU-G-10-01 Page 13 1 STATE OF WASHINGTON2 ss 4 3 County of Spokane 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 18 19 20 21 22 23 24 _Çft David J. Meyer Subscribed and sworn to before me this 22nd day of March, 2010. \"""',,,''1~\' \.. OiS~'II"S'~~re'...."~~.,~S'''~. (p~::~/lr :- a : i NO'TAR'l =~¿.. /7 :: llUBUC J ~~~~g-C ~~ ....,,~ Notary Public in and for the Sta~~~ÒF~t~",,,..,,,,, washington, residing in Spokane Application of Avista Corporation Case Nos. AVU-E-10-01 & AVUG-10-01 Page 2 DAVID J. MEYER VICE PRESIDENT AND CHIEF COUNSEL FOR REGULATORY & GOVERNENTAL AFFAIRS AVISTA CORPORATION P . O. BOX 3727 1411 EAST MISSION AVENUE SPOKANE, WASHINGTON 99220-3727TELEPHONE: (509) 495-4316FACSIMILE: (509) 495-8851 2alO rMR 23 tii11: 0' 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 AN ) NATURAL GAS SERVICE TO ELECTRIC ) AND NATURAL GAS CUSTOMERS IN )OF IDAHO ) ) ) ) CASE NO. AVU-E-10-01 CASE NO. AVU-G-10-01 ATTORNEY'S CERTIFICATE CLAIM OF CONFIDENTIALITY RELATING TO PORTIONS OF AVISTA' S WORKPAPERS FOR AVISTA CORPORATION 1 I, David J. Meyer, represent Avista Corporation. I am 2 vice President and Chief Counsel for Regulatory and 3 Governmental Affairs for Avista Corporation (Avista or 4 Company) and I am appearing on its behalf in this proceeding. 5 I make this certification and claim of confidentiality 6 pursuant to IDAPA 31.01.01 because Avista, through its 7 supporting workpapers, is disclosing certain information 8 that is CONFIDENTIAL and constitutes TRADE SECRETS as defined 9 by Idaho Code Section 9-340 and 48-801 and protected under 10 IDAPA 31. 01 . 01 . 067 and 31. 01 . 01 . 233 . 11 The printed information Avista provides will, as 12 required under IDAPA Rule 67, be marked as CONFIDENTIAL, will 13 be reproduced on any colored paper other than white, and will 14 be provided under separate cover. The electronic information 15 Avista provides will be reproduced separately on a compact 16 disk (CD) and will also be marked as CONFIDENTIAL. 17 The confidential information that Avista is disclosing 18 can be classified into two basic categories: 1) information 19 pertaining to contract prices, terms and conditions, 2) 20 certain results providing detailed information on the 21 Company's load and resource positions by month, and 3) Risk 22 Management Policies which contain general policies, 23 guidelines, and position limits. ATTORNEY'S CERTIFICATE - 2 1 Avista herein asserts that the aforementioned 2 information is confidential in that: 1) the contract 3 information is prohibi ted, by the contract terms, from public 4 disclosure, and 2) making the load and resource information 5 public will give entities access to competitive information 6 on future operating plans and market purchase requirements 7 and Avista believes the information could be used to 8 disadvantage its customers, and 3) the Risk Management 9 Policies, if shared with competitors, could also be used to 10 disadvantage Avista' s customers. 11 I am of the opinion that this information is 12 CONFIDENTIAL, as defined by Idaho Code Sections 9-340D and 13 48-801, should therefore be protected from public inspection, 14 examination and copying, and should be utilized only in 15 accordance wi th the terms of the PROTECTIVE AGREEMENT BETWEEN 16 AVISTA CORPORATION AND IDAHO PUBLIC UTILITIES COMMISSION 17 STAFF. 18 RESPECTFULLY SUBMITTED this 22nd day of March, 2010 19 20 21 22 23 24 25 oerl Vice President and Chief Counsel for Regulatory & Governmental Affairs Avista Corporation ATTORNEY'S CERTIFICATE - 2