20101029Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
CO MMISSI 0 NER RED FORD
COMMISSION SECRETARY
LEG AL
WORKING FILE
FROM:DOUG COX, P.
DATE:OCTOBER 28, 2010
RE:AVISTA UTILITIES 2010 PURCHASED GAS ADJUSTMENT (PGA),
REVISED TARIFF FILING - CASE NO. AVU-I0-03.
On October 27, 2010, the Commission issued Order No. 32102 authorizing A vista to
increase its annualized revenues by $2.9 million and establish a weighted average cost of gas of
$0.45817 per thermo The Commission ordered the Company to file conforming tariffs to be
effective November 1 , 2010. On October 28, 2010 , A vista submitted its revised tariffs.
STAFF RECOMMENDATION
Staff has reviewed Avista s October 28 filing and finds that the tariffs comport with the
requirements of Order No. 32102. Therefore, Staff recommends that the Commission approve
the revised tariffs.
COMMISSION DECISION
Does the Commission wish to approve the Company s revised tariffs to be effective
November 1 , 2010?
(;o;x:
Doug Cox, P. .
i:udmemos/avugIOO3 DougsMemo.doc
DECISION MEMORANDUM - 1 -OCTOBER 28 2010
AvistaCorp.
1411 EastMission POI\())(3727
Spokane, Washington. 9922!J..3727
Telephone .
ToY Free 800-72HI170
IST4'
Corp.
October 28, 2010
State ofldaho
Idaho Public Utilities Commission
Statehouse
Boise, Idaho 83720
Attention: Ms. Jean D. Jewell
C. No. 27 - Natural Gas Service
In accordance with Order Number 32102, dated October 27, 2010, enclosed for filing
with the Commission is Original Sheet 156. This tariff establishes a weighted average
cost of gas of$O.45817 per thenn to be effective November 1 2010.
If you have any questions regarding this filing, please contact Craig Bertholf at (509)
495-4124.
Sincerely,
?ar
Kelly Norwood
Vice President, State and Federal Regulation
Ene.
LP .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 582i per therm in all blocks of these rate schedules.
The rate of interruptible gas Schedule 131 is to be decreased by
091 rt per thermo
(b)
SOURCES OF MONTHL Y 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 Util1ties
;J;. ":.:::J'
Vice P,-..iden~ Sta'" & Federal Regulation
LP.C. No.Original Sheet 156 156
A VISTA CORPORATION
d/b/a Avista Utililies
SCHEDULE 156
PURCHASE GAS COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of Idaho where Company has natural gas service
available.
PURPOSE:
To pass through changes in costs resulting from rate adjustments imposed by the
Company's suppliers, to become effective as noted below.
RATE:
(a)The rates of firm gas Schedules 101 , 111 and 112 are to be decreased by
2.2D4!t per therm in all blocks of these rate schedules.
The rates of interruptible Schedules 131 and 132 are to be decreased by
296!t per thermo
(b)
The rate for transportation under Schedule 146 is to be decreased by
OO.OOD!t per thermo
WEIGHTED AVERAGE GAS COST:
The above rate changes are based on the following weighted average cost of gas
per therm as of the effective date shown below and supersede the rates shown on
Schedule 150:
(c)
Schedules 101
Schedules 111 and 112
Schedules 131 and 132
Demand
10A21~
10A211,t
ODDtt
Commodity
45.817tt
45.817~
45.817if,
Total
56.238~
56.238tt
45.817!t
The above amounts do not include revenue sensitive items.
BALANCING ACCOUNT:
The Company will maintain a Purchase Gas Adjustment (PGA) Balancing
Account whereby monthly entries into this Balancing Account will be made to reflect
differences between the actual purchased gas costs collected from customers and the
actual purchased gas costs incurred by the Company. Those differences are then
collected from or refunded to customers under Schedule 155 - Gas Rate Adjustment.
Additional debits or credits for Pipeline refunds or charges, Pipeline capacity
release revenues and miscellaneous revenues or expenses directly related to the
Company s cost of purchasing gas to meet customer requirements will be recorded in the
Balancing Account.
Issued October 28, 2010 Effective November 1 2010
!ssued by Avista UjiJities
Al4""O.
~y
O. Norwood - Vice-President, State & Federal Regulation
I.P.C. No.2?Original Sheet 156A 156
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 156 - Continued
Deferred gas costs will be determined for individual customers served under
Schedules 112, 132 and 146, as well as for customers that switch to or from any of these
service schedules to another schedule. The deferred gas cost balance for these
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 amortization rate per therm to
reduce the balance prospectively.
SPECIAL TERMS AND CONDITIONS:
The rates named herein are subject to increases as set forth in Schedule 158.
Issued October 28, 2010 Effective November 1,2010
Issued ~~~ista Utilijtes
~. -
AI",......w.
Norwood- Vice-President State & Federal Regulation