20100915Application.pdf

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A vista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Ton Free 800-727-9170
i018 SEPt 5 AM 9: 29
September 14, 20 i 0
State of Idaho
Idaho Public Utilties Commission
Statehouse
Boise, Idaho 83720
Case No. AVU-G-I0-03
Attention: Ms. Jea D. Jewell
I.P.U.C. No. 27 - Natual Gas Servee
Enclosed for filing with the Commission are the followig revised taff sheets:
Twelfh Revision Sheet 15S caceling Eleventh Revision Sheet iss
Original Sheet 156
The Company requests that the proposed tarff shee be made effective November 1, 2010.
These tarff sheets reflect the Company's anual Puchased Gas Adjustment (pGA). If these
tariff.sheets are approved as filed, the.. Company's anual revenue wil increase by approximately
$3.1 milion or about 4.3%. The proposed changes have no effect on the Company's net inc()me.
The proposed increase results is caused by the elimination of a present refud to pass thorugh gas
cost savigs from prior year. Furher information is included in the attached Application and
suppong workpaper. If approved, the averge residential or small commercial customer using
63 thers per month wil see an increae of $2.75 per month, or approximately 4.90Æi. The
present bil for 63 thers is $56.03 while the proposed bil is $58.78.
If you have any quetions regarding this filng, please contact Patrck Ehbar at (509).495-8620
or Craig Berolf at [phone].
Sincerely,
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KelÍyNJoo
Vice President, State and Federal Regulation
Enclosures
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have served Avista Corporation dba Avista Utilties' filing with
Tariff IPUC No. 27 Natural Gas Service by mailng a copy thereof, postage prepaid to the
following:
Chad Stokes
Cable Huston Benedict Haagensen &
Lloyd, LLP
1001 SW 5th, Suite 2000
Portland, OR 97204-1136
Paula Pyron
Northwest Industrial Gas Users
4113 Wolfberry Court
Lake Oswego, OR 97035-1827
Curt Hibbard
st. Joseph Regional Medical Center
PO Box 816
Lewiston, 10 83501
Jean 0 Jewell, Secretary
Idaho Public Utiities Commission
472 W. Washington Street
Boise, 1083720-5983
Patrick Ehrbar
State & Federal Regulation
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lOIOSEP is
BEFORE THE IDAHO PUBLIC UTILITIES COMMIS~aLOWif;L".. Aft 9: 30
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IN THE MATTER OF THE APPLICATION OF )
A VISTA UTILITIES FOR AN ORDER APPROVIG ) CASE: A VU-G-l 0-03
A CHANGE IN NATURAL GAS RATES AND CHARGES )
Application is hereby made to the Idaho Public Utilties Commission for an Order approving a
revised schedule of rates and charges for natural gas service in the state of Idaho. The Applicant
requests that the proposed rates included in this Purchased Gas Adjustment (PGA) fiing be made
effective on November 1.2010. If approved as fied, the Company's annual revenue wil increase by
approximately $3.1 milion or about 4.3%. In support of this Application. Applicant states as follows:
i.
The name of the Applicant is A VISTA UTILITIES, a unit of A VISTA CORPORATION, a
Washington corporation, whose principal business offce is 1411 East Mission Avenue, Spokane,
Washington, and is qualified to do business in the state ofIdaho. Applicant maintains district offices in
Moscow, Lewiston, Coeur d'Alene, and Kellogg, Idaho. Communications in reference to this
Application should be addressed to:
Kelly O. Norwood
Vice President - State & Federal Regulation
Avista Utilities
P.O. Box 3727
Spokane, WA 99220-3727
II.
Attorney for the Applicant and his address is as follows:
David J. Meyer
Vice President and Chief Counsel for Regulatory &
Governental Affairs
A vista Utilties
P.O. Box 3727
Spokane, W A 99220-3727
III.
The Applicant is a public utility engaged in the distribution of natual gas in certain portions of
Eastern and Central Washington, Northern Idaho and Southwestern and Northeastern Oregon, and
fuher engaged in the generation, transmission, and distribution of electricity in Eastern Washington
and Northern Idaho.
Page 1 of 5
IV.
Original Sheet l56. which Applicant requests the Commission approve, is fied herewith as
Exhibit "A". Additionally. Twelfth Revision Sheet 155. which Applicant requests the Commission
approve, is also fied herewith as Exhibit "A". Also included in Exhibit "A" is a copy of Twelfth
Revision Tariff Sheet 155 with the changes underlined and a copy of Eleventh Revision Tariff Sheet
155 with the proposed changes shown by lining over the curent language or amounts.
V.
The existing rates and charges for natural gas service on fie with the Commission and
designated as Applicant's TariffIPUC No. 27. which wil be superseded by the rates and charges filed
herewith. are incorporated herein as though fully attched hereto.
VI.
Notice to the Public of Applicant's proposed tariffs is to be given simultaneously with the filing
ofthis Application by posting. at each of the Company's district offces in Idaho, a Notice in the form
attached hereto as Exhibit "B" and by means of a press release distributed to various informational
agencies, a copy attached hereto as Exhibit "E". In addition, a notice wil be sent to customers as a bil
insert prior to November 1,2010.
VIII.
The circumstances and conditions relied on for approval of Applicant's revised rates are as
follows: Applicant purchases natual gas for customer usage and transports it over Wiliams Pipeline
West (d.b.a. Northwest Pipeline Corporation), Gas Transmission Northwest (GTN). TransCanada
(Alberta). TransCanada (BC) and Westcoast Pipeline systems and defers the effect of timing
differences due to implementation of rate changes and differences between Applicant's actual weighted
average cost of gas (W ACOG) purchased and the W ACOG embedded in rates. Applicant also defers
various pipeline refunds or charges and miscellaneous revenue received from gas related transactions
including pipeline capacity releases.
IX.
This filing reflects the Company's proposed annual Purchased Gas Cost Adjustment (PGA) to:
1) pass through changes in the estimated cost of natual gas for the forthcoming year (Schedule 156),
and 2) revise the amortization rate(s) to refund or collect the balance of deferred gas costs (Schedule
155). Below is a table summarizing the proposed changes reflected in this filing.
Commodity Demand Total Sch.155 Total Rate Overall
Sch.Change Change Sch.156 Amort.Change Percent
Service No.pertherm perthm Change pertherm perther Change
General 101 ($0.02992)$0.01150 ($0.01842)$0.06215 $0.04373 4.9%
Lg. General 111 ($0.02992)$0.01150 ($0.01842)$0.06215 $0.04373 6.1%
Interrptible 131 ($0.02992)$0.00000 ($0.02992)$0.03509 $0.00517 0.9%
Page 2 of 5
X.
Commodity Costs
As shown in the table above, the estimated commodity cost (W ACOG) change is a decrease of 2.992
cents per thermo The proposed W ACOG is 46.1 cents per therm compared to the present W ACOG of
49.1 cents per therm included in rates. Daì1y wholesale natual gas prices have been higher this year
than last year. For example, in 2009. daì1y cash prices at AECO averaged $2.82 per dekatherm. In
2010 thus far, the average price increased to $3.74 per dekatherm. approximately a 33 percent increase.
This impacted the cost of purchased natural gas for storage pricìng. However, prices in the forward
markets have been lower this year than what is curently embedded in rates. This decrease more than
offset the increase in storage prices. leading to the drop in the proposed WACOG.
A vista has been hedging gas on both a periodic and discretionar basis throughout 2010 for the
fortcoming PGA year. Approximately 70% of estimated anual load requirements for the PGA year
(November 2010 through October 2011) wil be hedged at a fixed price, comprised of: 1) 41 % of
volumes hedged for a term of one year or less, 2) 19% of volumes from prior multi-year hedges, and 3)
10% of volumes from underground storage. Through August, the planned hedge volumes for the PGA
year have been executed at a weighted average price of $5.42 per dekatherm ($0.542 per therm).
The Company used a 30-day historical average of forward prices (ending September 8) by supply basin
to develop an estimated cost associated with index/spot purchases. The estimated monthly volumes to
be purchased by basin are multiplied by the (30-day) average price for the corresponding month and
basin. These index/spot volumes represent approximately 30% of estimated annual load requirements
for the coming year and the annual weighted average price for these volumes is $3.99 per dekatherm.
Avaì1able underground storage capacity at Jackson Prairie represents approximately 10% of annual load
requirements (20% of load requirements during the December to March withdrawal period). The
estimated weighted average cost for all storage volumes is $3.63 per dekatherm. The Company also
utilzes (optimizes) its underground storage capacìty to provide additional benefits to customers beyond
the winter/summer price differential and supply reliabilty.
The Company's natual gas procurement plan uses a diversified approach to procure gas for the coming
year. Whì1e the plan generally incorporates a strctued approach for the hedging portion of the
portfolio, the Company exercìses flexibilty and discretion in all areas of the plan based on changes in
the wholesale market. The Company tyically meets with the Commission Staff quarerly to discuss
the state of the wholesale market and the status of the Company's procurement plan. In addition, the
Company communicates with Staff when it believes it makes sense to deviate from its procurement
plan and/or opportities arise in the market.
Xl.
Demand Costs
The Demand Costs shown in the table above primarì1y represents the cost of pipeline transportation to
the Company's system. As shown in the table above, there is a slight increase which is due to a change
in tariffs on the TransCanada (Alberta) and TransCanada (BC) pipelines.
Page 30f5
XII.
Schedule 155 1 Amortization Rate Change
As shown in the table above, the proposed change in the amortization rates are an increase between 3.5
and 6.2 cents per thermo This increase is a result of the large one-year refund amortization rate from the
2009 PGA being replaced by a smaller one-year amortization rate. Included in the proposed refud rate
is a substatial deferral balance that the Company was recovering over the past year through Schedule
155 that was not fully refuded to customers as natural gas loads for the winter 2009/2010 were softer
than projected. As such, the proposed amortization rate stil has some level of previous deferrals, with
the indirect benefit of keeping the proposed rate change lower for customers.
XIII.
The average residential or small commercial customer using 63 therms per month wil see an increase
of $2.75 per month, or approximately 4.9%. The present bil for 63 therms is $56.03 while the
proposed bil is $58.78.
XIV.
Exhibit "C" attached hereto contains support for the rates proposed by Applicant contained in
Exhibit "A".
XV.
Applicant is requesting that Applicant's rates be approved to become effective on November 1,
2010. Applicant requests that. if appropriate, the Commission adopt the procedures prescribed by Rule
201-210. Modified Procedure. Applicant stands ready for immediate consideration on its Application.
XVI.
WHEREFORE, Applicant requests the Commission issue its Order finding Applicant's
proposed rates to be just. reasonable, and nondiscriminatory and to become effective for all natual gas
service on and after November 1,2010.
Dated at Spokane, Washington, this 14th day of September 2010.
A VISTA UTILITIES
BY
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Kelly O. Norwood
Vice President, State and Federal Regulation
Page 4 of5
STATE OF WASHINGTON )
) ss.County of Spokane )
Patrck Ehrbar, being first duly sworn, on oath deposes and says: that he is the Manager of
Rates and Tariffs for Avista Utilities; that he has read the above and foregoing Application, knows
the contents thereof, and believes the same to be true.
SUBSCRffED and sworn to before me this 14th day of September 2010.
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Notar Public in and for the
State of Washington, residing in
Spokane.
A VISTA UTILITIES
Case No. A VU-G-10-03
EXHIBIT "A"
Proposed Tariff Sheets
September 14, 2010
I.P.U.C. No.27
Twelfh Revision Shee 155
Canceling
Eleventh Revision Sheet 155
AVISTA CORPORATION
dlbla Avista Utilities
155
SCHEDULE 155
GAS RATE ADJUSTMENT - IDAHO
AVAILABLE:
To Customers in the State of Idaho where Company has natural gas servCê
available.
PURPOSE:
To adjust gas rates for amounts generated by the sources listed below.
MONTHLY RATE:
(a) The rates offifIgas Schedules 101 and 111 are to be
decreased by 7.582~ per therm in all blocs of thøse rateschødules..
(b) The rate of intemiptîbiegas Schedule 131 is to be decreased by
8.091~ per therm.
SOURCES OF MONTHLY RATE:
Changes in the monthly rates above result from amounts which have ben
accumulated in the Purchase Gas Adjustment (PGA) Balancing Accunt as
described in Schedule 150 - Purchase Gas Cost Adjustment and Schedule 156 -
Purchase Gas Cost Adjustment.
SPECIAL TERMS AND CONDITIONS:
The above Monthly Rate is subject to the provisions of Tax Adjustment.Schedule
158.
Issue September 14, 2010 Effectie November 1. 2010
Issued by
By
Avistå Utiltties
~ ;:i:' Vic Presde"t. State & Rl Re¡
I.P.U.C. NO.2?
Twelfth Revision Sheet 155
Canceling
Eleventh Revision Sheet 155
AVISTA CORPORATION
d/b/a Avista Utilities
155
SCHEDULE 155
GAS RATE ADJUSTMENT -IDAHO
AVAILABLE:
To Customers in the State of Idaho where Company has natural gas service
available.
PURPOSE:
To adjust gas rates for amounts generated by the sources listed below.
MONTHLY RATE:
(a) The rates of firm gas Schedules 101 and 111 are to be
decreased by 7.582Ø per therm in all blocks of these rate schedules.
(b) The rate of interruptible gas Schedule 131 is to be decreased by
8.091 ø per thermo
SOURCES OF MONTHLY RATE:
Changes in the monthly rates above result from amounts which have been
accumulated in the Purchase Gas Adjustment (PGA) Balancing Account as
described in Schedule 150 - Purchase Gas Cost Adjustment and Schedule 156 -
Purchase Gas Cost Adjustment.
SPECIAL TERMS AND CONDITIONS:
The above Monthly Rate is subject to the provisions of Tax Adjustment Schedule
158.
Issued September 14, 2010 Effective November 1, 2010
Issued by Avista Utilities
By Kelly Norwood, Vice President, State & Federal Regulation
LP.U.C. No.27
Eleventh Revision Shee 155
Canceling
Tenth Revision She 155
AVISTA CORPORATION
d/b/a Avista UtHites
155
SCHEDULE 155
GAS RATE ADJUSTMENT - IDAHO
AVAILABLE:
To Customers in the State of Idaho where Company has natural gas servce
available.
PURPOSE:
To adjust gas rates for amounts generated by the sourcs listed below.
MONTHLY RATE:
(a) The rates of firm gas SCedules 101 and 111 are to be
decreased by ~a.1&r;;, pertherm ¡n.all bloosofthese rate scdules.
(b) The rate of interrptible gas Schedule 131 Is to be decrase by
11.699, per thermo
SOURCES OF MONTHLY RATE:
Changes in the monthlY rates above resultfror amounts which have ben
accumulated in the Purchase Gas Adjustment (PGA) Balancing Accunt as
describe in Schedule 150 - Purchase Gas Cost Adjustment.
SPEClAL TERMS AND CONDITIONS:
The above Monthly Rate is subjct to the proviions of Tax AdjustmentSchedule
158.
Issued Octo 29, 2009 Effective November 1. 2009
Issued by Avista UtHitiesBy Kelly Nor. Vice Presiden. Stae & Federl Reulatin
I.P.U.C. NO.27 Original Sheet 156 156
AVISTA CORPORATION
d/b/a Avista Utilties
SCHEDULE 156
PURCHASE GAS COST ADJUSTMENT - IDAHQ
APPLICABLE:
To Customers in the State of Idaho where Company has natural gas servce
available.
PURPOSE:
To pass through changes in costs resulting from rate adjustments imposed by the
Company's suppliers, to become effecive as noted below.
RATE:
(a) The rates of firm gas Schedule 101.. 111 and 112 are to be decreased by
1.556t pertherm in all blocks of these ratesctdules.
(b) The rates of interrptible Schedules 131 and 132 are to be decreased by
2.706t per thermo
(c) The rate for transporttion under Schedule 146 is to be decrease by
00. OOOt per thermo
WEIGHTED AVERAGE GAS COST:
The above rate changes.are based on the following weighted average cost orgas
per therm as of the effective date shown below and supercede the rates shown on
Schedule 150:
Schedüles 101
Schedules 111 and 112
Schedules 131 and 132
Demand
10.421t
10,421t
O.OOOt
Commodity
45.817t
45.817t
45.817t
Total
56.238t
56.238t
45.817t
The above amounts do not include revenue sensitive items.
BALANCING ACCOUNT:
The Company will maintain a purchase Gas Adjustment (PGA) Balancig
Accunt whereby monthly entres into this Balancing Account wil be made to refect
differences between the actual purchased gas costs collected from customers and the
actual purchased gas costs incurred by the Company. Thos diference are thn
collected from or refunded to customers under Schedule 155 - Gas Rate Adjustment.
Additional debits or creits for Pipeline refunds or charges, Pipelinecapac:ty
release revenues and miscellaneous revenues or expenses directly related to the
Company's cost of purchasing gas to meet customer requirements will be recordedi in the
Balancing Accunt.
Issued Sepembe 14, 2010 Effective November 1, 2010
Issued by Avista Utilities
By Kelly O. Noroo - Vice-President. State & Federal Regulation
~ ~~-.
LP.U.C. NO.27 Oriinal Shee 156A 156
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 156 - Continued
Defered gas costs will be determined for individual customers served under
Schedules 112, 132 and 146, as well as for customers that switch to or fro any of thes
servce schedules to another schedule. The deferred gas cost balance for thes
customers will be based on monthly entries in the Balancing Account as described
above. The deferred gas cost balance for each customer will be eliminated by either, 1)
a lump-sum refund or surcharge, as applicable, or 2) an amortzation rate per therm to
reduce the balance prospectively.
SPECIAL TERMS AND CONDITIONS:
The rates named herein are subject to increases as set forh ¡nSchedule 158,
Issued September 14, 2010 Effecive November 1, 2010
Issued by
By
Av.ista Utihties
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AVISTA UTILITIES
Case No. A VU-G-10-03
EXHIBIT "B"
Notice of Public Applicant's Proposed Tariffs
September 14,2010
zotO SEP 15 AM 9: 30
A VISTA UTILITES
NOTICE OF IDAHO TARIFF CHANGE
(Natural Gas Service Only)
Notice is hereby given that the "Sheets" listed below ofTariffIPUC No. 27, covering
natural gas service applicable to Idaho customers of A vista Utilties have been filed with
the Idaho Public Utiities Commission (IPUC) in Boise, Idaho.
Twelfth Revision Sheet 155 canceling Eleventh Revision Sheet 155 and,
Original Sheet 156
Twelfth Revision Sheet 155 updates the amortization rate used to refud or recover
previous gas cost differences and Original Sheet 156 updates the forward-looking cost of
natural gas purchased for customer usage.
These tariffs request an annual revenue increase of approximately $3.1 milion. or about 4.3%.
This request is a Purchased Gas Cost Adjustment (PGA) that is filed annually to reflect
changes in the cost of gas purchased to serve customers. Any increases or decreases resulting
from these PGA fiings directly result from the cost of gas purchased in the marketplace;
A vista makes no additional profits from these rate changes.
If approved as fied a residential or small business customer served under Schedule 101
using an average of 63 therms per month can expect to see an average increase of
approximately $2.75 per month, or about 4.9%. Larger commercial customers served
under Schedules 111 can expect to see an average increase of about 6.1 %, with the
higher percentages due to lower base rates. However, actual customer increases wil vary
based.on therms consumed.
This filing requests an effective date of November 1.2010.
Copies of the proposed tariff changes are available for inspection in the Company's
offices or can be obtained by callng [phone] or writing:
A vista Utilties
Attention: Ms. Patt Olsness
P.O. Box 3727
Spokane, W A. 99220-3727
September 14,2010