20110909Lobb Support of Stipulation.pdf

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
AVISTA CORPORATION DBA AVISTA )
UTILITIES FOR AUTHORITY TO INCÆASE )
ITS RATES AND CHARGES FOR )
ELECTRIC AND NATURAL GAS SERVICE )IN IDAHO. )
)
)
)
CASE NO. AVU-E-11-1/
AVU-G-11-1
DIRECT TESTIMONY OF RANDY LOBB
IN SUPPORT OF THE STIPULATION
AND SETTLEMENT
IDAHO PUBLIC UTILITIES COMMISSION
SEPTEMBER 9, 2011
~-..en ::~ m
i ("\. rn
~ m
c.?\..-
enco
1 Q.Please state your name and business address for
2 the record.
3 A.My name is Randy Lobb and my business address is
4 472 West Washington Street, Boise, Idaho.
5 Q.By whom are you employed?
6 A.I am employed by the Idaho Public Utilities
7 Commission as Utilities Division Administrator.
8 Q.What is your educational and professional
9 background?
10 A.I received a Bachelor of Science Degree in
11 Agricultural Engineering from the University of Idaho in
12 1980 and worked for the Idaho Department of Water Resources
13 from June of 1980 to November of 1987. I received my Idaho
14 license as a registered professional Civil Engineer in 1985
15 and began work at the Idaho Public Utilities Commission in
16 December of 1987. My duties at the Commission currently
17 include case management and oversight of all technical
18 Staff assigned to Commission filings. I have conducted
19 analysis of utility rate applications, rate design,
20 proposed tariffs and customer petitions. I have testified
21 in numerous proceedings before the Commission including
22 cases dealing with rate structure, cost of service, power
23 supply, line extensions, regulatory policy and facility
24 acquisitions.
25
CASE NOS. AVU-E-11-1/AVU-G-11-109/09/11 LOBB, R. (Stip) 1
STAFF
1 Q.What is the purpose of your testimony in this
2 case?
A.The purpose of my testimony is to describe the3
4 Stipulation (the Proposed Settlement) filed in this case
5 and to explain the rationale for Staff's support.
6
7
Q.Please summarize your testimony.
A.Staff believes that the comprehensive Proposed
8 Settlement resolving all issues in the general rate case
9 and agreed to by all parties to the case is in the public
10 interest, is just and reasonable /and should be approved by
11 the Commission.
12
13
Q.How is your testimony organized?
A.My testimony is subdivided under the following
14 headings:
15
16
17
18
19
20
21
22
Stipulation Overview Page 2
The Settlement Process Page 4
Revenue Adjustments Page 6
Cost of Service Page 9
Bill Impact Page 10
Other Issues Page 11
Stipulation Overview
Q.Please provide an overview of the Stipulation and
23 Settlement.
24 A.The Stipulation filed with the Commission
25 provides for an annual overall increase in electric base
CASE NOS. AVU-E-11-1/AVU-G-11-109/09/11 LOBB, R. (Stip) 2
STAFF
1 revenue of $2.8 million or 1.14 % and an overall increase in
2 natural gas revenue of $1.1 million or 1.6%. The revenue
3 increase would be uniformly spread among the customer
4 classes and be effective on October 1, 2011. The
5 Stipulation also provides for a stay-out provision that
6 prohibi ts any new electric or natural gas base rate
7 increases prior to April 1, 2013.
8 The Stipulation and Settlement specifically
9 identifies annual power supply cost levels for the Power
10 Cost Adjustment (PCA) mechanism, future treatment of costs
11 related to the Palouse Wind Power Purchase agreement and
12 deferred accounting treatment for variable non fuel
13 Operation and Maintenance (O&M) costs associated with the
14 Company's thermal generating plants.
15 The Stipulation also provides for a public
16 workshop to discuss cost of service and rate design issues.
17 Additionally, the Stipulation specifies a $10,000 annual
18 increase in low income education funding and an Avista
19 sponsored workshop to discuss the future of low income
20 programs.
21 Finally, the Stipulation describes the overall
22 impact of the base rate increases when combined with other
23 electric and natural gas rate adjustments either pending
24 before the Commission or proposed for filing. The net
25 effect is a 2.4% decrease in billed electric rates and a
CASE NOS. AVU-E-11-1/AVU-G-11-109/09/11 LOBB, R. (Stip) 3
STAFF
1 0.8% decrease in billed natural gas rates.
2 Although the Stipulation represents a
3 comprehensive settlement of all revenue requirement issues
4 in the case, it does not specifically identify revenue
5 adjustments to the Company's case or specify an authorized
6 return on equity (ROE).
7 Q.How does the annual base revenue requirement
8 increase for electric and natural gas service proposed in
9 the Stipulation compare to the increase originally proposed
10 by Avista?
11 A.Avista originally proposed to increase annual
12 base electric revenue by $9 million or 3.7% and increase
13 annual base natural gas revenue by $1.9 million or 2.7%.
14 The Stipulated Settlement provides for an increase in
15 annual base electric revenue of $2.8 million or
16 approximately 31% of the original request. The Stipulated
17 Settlement provides for an increase in annual natural gas
18 revenue of $1.1 million or 58% of the Company's original
19 request. These modest increases come with an agreement
20 that there can be no new base rate increases prior to
21 April 1, 2013. The Stipulation and Settlement is attached
22 as Staff Exhibit No. 101.
23 The Settlement Process
24 Q.Would you please describe the process leading to
25 the Stipulated Settlement?
CASE NOS. AVU-E-11-1/AVU-G-11-109/09/11 LOBB, R. (Stip) 4
STAFF
1 A.Yes. The Company filed its rate application with
2 the Commission on July 5, 2011 and Staff immediately began
3 its review. Based on the relatively modest revenue
4 increase requested, the relatively high requested return on
5 equity (ROE) of 10.9% and potential adjustments in other
6 cost categories, Staff believed reasonable settlement of
7 the case was possible.
8 A settlement workshop was then scheduled for
9 August 17, 2011 in the Commission hearing room with all
10 parties of record in the case invited to participate.
11 Workshop participants included Commission Staff, Avista,
12 Clearwater Paper Company, Idaho Forest Group, the Community
13 Action Partnership of Idaho (CAPAI) and the Idaho
14 Conservation League.
15 Settlement discussions focused on revenue
16 requirement issues such as appropriate ROE, company
17 salaries, O&M costs, load adjustments and acceptable test
18 period. Other issues discussed included rate design, low
19 income weatherization funding and cost of service.
20 The parties to the case stated their positions on
21 the various revenue requirement issues and presented
22 proposals on various other topics. Negotiations on
23 individual issues and a total settlement package ensued.
24 Although settlement was not reached at the workshop,
25 negotiations continued informally through the week of
CASE NOS. AVU-E-11-1/AVU-G-11-109/09/11 LOBB, R. (Stip) 5
STAFF
1 August 22, 2011 until the Stipulated Settlement was
2 reached.
3 Q.How did Commission Staff evaluate the Stipulated
4 Settlement to determine that it was reasonable?
5 A.The standard used by Staff to evaluate the
6 Settlement in this case as in prior cases is whether the
7 result is a better outcome for customers than could
8 reasonably be anticipated through litigation. In other
9 words, Staff evaluated the merits of the Stipulated
10 Settlement by comparing it to what might be expected if the
11 case proceeded to hearing. Staff believes the base rate
12 increase and stay-out provision in addition to the other
13 settlement terms represent a reasonable resolution of this
14 case and a good deal for customers.
15 Of course the Commissioners make the final
16 decision on Company revenue requirement based on the record
17 at hearing. The parties to the case make revenue
18 requirement adjustment recommendations on the record for
19 the Commission to consider. The outcome at hearing in
20 terms of revenue requirement must therefore be evaluated
21 based on both the adjustments to the Company's revenue
22 request that are presented on the record and how the
23 Commission might decide each adjustment.
24 Revenue Adjustments
25 Q.What type of adjustments to the Company's
CASE NOS. AVU-E-11-1/AVU-G-11-1
09/09/11 LOBB, R. (Stip) 6
STAFF
1 proposed revenue requirement had Staff identified and what
2 was the dollar value of those adjustments?
3 A.The two largest adjustments identified by Staff
4 affecting both electric and natural gas revenue requirement
5 were ROE and salaries. Staff maintained that an ROE lower
6 than the ROE of 10.9% as proposed by the Company was
7 appropriate. A lower ROE could lower the Company's revenue
8 requirement request by as much as $5 million and $825
9 thousand for electric and natural gas service,
10 respectively. Salary adjustments identified by Staff
11 included elimination of all salary increases back to year
12 end 2010 ($1 million electric, $265 thousand natural gas) .
13 Other possible adjustments identified by Staff included
14 elimination of 2012 capital additions and transmission
15 revenue/ expenses, elimination of proposed increases in
16 vegetative management expenses and removal of the Company's
17 proposed Energy Efficiency Load Adjustment.
18 Q.How confident was Staff that its adjustments
19 could be justified on the record and accepted by the
20 Commission upon hearing?
21 A.Staff took a very aggressive approach to
22 developing its revenue requirement adjustments in
23 preparation for settlement negotiations, but was reasonably
24 confident that at least some of the proposed adjustments
25 would be accepted by the Commission at hearing. Similar
CASE NOS. AVU-E-11-1/AVU-G-11-1
09/09/11 LOBB, R. (Stip) 7
STAFF
1 ROE and employee salary adj ustments were favorably
2 addressed by the Commission in the recent PacifiCorp
3 general rate case (PAC-E-10-7). However, other proposed
4 adjustments in vegetative management, transmission
5 revenue/expenses and the effects of energy efficiency on
6 load have not been addressed at hearing and were less
7 certain to be accepted by the Commission.
8 Q.Why are a new return on equity and other specific
9 revenue requirement adjustments not specified in the
10 Stipulation?
11 A.Specific adjustments and ROE were not specified
12 in the Stipulation to facilitate agreement on the overall
13 revenue requirement. While the Settlement parties
14 generally agreed on a reasonable level of revenue, there
15 was considerable disagreement on the individual adjustments
16 proposed to reach that revenue level. This was
17 particularly true with respect to ROE. Rather than specify
18 an ROE that all parties could not support, the Stipulation
19 simply specified an overall revenue requirement that could
20 be fully supported.
21 Q.How do customers benefit from the stay-out
22 provision?
23 A.The stay-out provision provides benefit to
24 customers by prohibiting any new electric or natural gas
25 base rate increase prior to April 1, 2013. This provision
CASE NOS. AVU-E-11-1/AVU-G-11-109/09/11 LOBB, R. (Stip) 8
STAFF
1 provides an extended period of base rate stability that
2 Staff believes would otherwise not occur.
3 Cost of Service
4 Q.Please describe the Stipulated Settlement with
5 respect to electric customer class cost of service, revenue
6 spread among classes and rate design.
7 A.While not accepting any specific class cost of
8 service allocation, the Stipulation specifies that Avista
9 will hold cost of service workshops for interested parties
10 prior to the next general rate case. Staff agrees that the
11 workshops, designed to address production and transmission
12 cost allocation methodologies, will help improve the
13 general cost of service understating of all participants.
14 The Stipulation specifies that the Company
15 sponsored workshop will also address non residential energy
16 block rate design. Given the workshop proposal and the
17 modest base rate increase proposed for both electric and
18 natural gas service, Staff believes uniform revenue spread
19 among the customer classes and continued application of the
20 existing rate structure is reasonable.
21 Rate Impact
22 Q.The Stipulation provides for an increase in the
23 monthly residential customer charge. Why does Staff
24 support the increase?
25 A.Staff supported the limited customer charge
CASE NOS. AVU-E-11-1/AVU-G-11-109/09/11 LOBB, R. (Stip) 9
STAFF
1 increase as part of a negotiated settlement and to
2 recognize the increased investment made by the Company to
3 install more sophisticated automated meters. The monthly
4 increase proposed is 25 cents per month for both electric
5 and natural gas.
6 Q.What is the impact on residential customer bills
7 of the proposed base rate Settlement and how will customers
8 bills change overall with the other proposed rate changes
9 effective on October 1, 2011?
10 A.A residential customer using 1000 kWh per month
11 will see a monthly base rate bill increase of 73 cents. A
12 natural gas customer using 75 therms per month will see a
13 monthly base rate bill increase of $1.12. When the other
14 scheduled rate changes including Schedule 59, the
15 residential and farm energy rate adjustment, Schedule 66,
16 the temporary power cost adjustment and Schedule 99, the
17 deferred state income tax adjustment are applied, the
18 overall bill of a residential electric customer using 1000
19 kWh will decrease by $1.89.
20 When scheduled rate changes in other natural gas
21 costs including Schedule 150 and 155 PGA rates, Schedule
22 191, the Energy Efficiency Rider Adjustment and Schedule
23 199, the deferred state income tax adjustment are applied,
24 the monthly overall bill of a residential natural gas
25 customer decreases by 38 cents. Overall rate changes for
CASE NOS. AVU-E-11-1/AVU-G-11-109/09/11 LOBB, R. (Stip) 10
STAFF
1 each customer class on a percentage basis are shown on
2 page 7 of the Stipulation.
3 Q.Doesn't the Commission have to individually
4 approve the rate changes described in the other schedules?
5 A.Yes. While the Stipulation describes how
6 electric and natural gas rates could change overall with
7 changes in other rate schedules, Commission approval of the
8 Stipulation will only approve changes to base rates. Rate
9 changes due to the PCA, PGA, DSM tariff riders and the
10 residential and farm energy rate adjustment must be
11 specifically approved by the Commission in those cases.
12 The deferred state income tax adjustment for gas and
13 electric service was previously approved by Commission
14 Order No. 32070 in Case No. AVU-E-10-1 and AVU-G-10-1.
15 Other Issues
16 Q.Would you please explain Staff's support for the
17 Settlement terms dealing with the Palouse Wind power
18 purchase agreement and the deferred accounting treatment
19 for nonfuel variable costs associated with the Company's
20 thermal plants?
21 A.Yes. Staff believes it is reasonable for the
22 Company to track the costs of the Palouse wind power
23 purchase agreement through the PCA once the project comes
24 on line. This treatment is consistent with that of other
25 power purchase agreements that occur in between rate cases.
CASE NOS. AVU-E-11-1/AVU-G-11-109/09/11 LOBB, R. (Stip) 11
STAFF
1 The length of the stay-out in conjunction with the project
2 online date will still allow the Commission to evaluate the
3 prudency of the agreement before any associated costs are
4 placed in customer rates.
5 Staff also believes it is reasonable to track and
6 defer for three-year amortization, the non fuel O&M cost
7 associated with the Company's thermal plants. The Company
8 maintains that it incurs significant overhaul costs for one
9 of three thermal plants, Coyote Springs II, Colstrip 3 and
10 Colstrip 4, each year over a three-year period. Deferral
11 of these costs with a three-year amortization will level
12 out the annual O&M costs in customer rates and allow
13 reasonable cost recovery. The Commission will still have
14 the opportunity to review the prudency of these costs in
15 the Company's next general rate case.
16 Q.Would you please explain Staff's support for a
17 Company-sponsored low income weatherization workshop and
18 additional funding for low income DSM education?
19 A.Yes. Staff believes it is time to discuss all
20 issues associated the Company's low income weatherization
21 program to assure the program is cost effective, that it
22 remains cost effective and that sufficient funds based on
23 need are made available. Consequently, Staff supports and
24 will participate in the low income weatherization workshop.
25 Staff further agrees to an increase of $10,000 per year in
CASE NOS. AVU-E-11-1/AVU-G-11-1
09/09/11 LOBB, R. (Stip) 12
STAFF
1 addi tional funding for low income education programs in an
2 effort to improve energy affordability. The increase in
3 low income education funding helps fill a growing need for
4 information to assist customers in reducing their monthly
5 bills.
6 Q.Does this conclude your testimony in this
7 proceeding?
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
A.Yes, it does.
CASE NOS. AVU-E-11-1/AVU-G-11-109/09/11 LOBB, R. (Stip) 13
STAFF
A IT ACHMNT 1
David J. Meyer, Esq.
Vice President and Chief CounSéI of
Reglatory and Governenta Affairs
A vist Corpration
141 i E. Mission Avenue
P.O. Box 3727
Spokane, VV~~on 99220
Phone: [phone] i 6, Fax: [phone]
Donald L. Howell, II
Krstne Sasser
Deput Attorneys Gener
Idaho Public Utiities Commission Sta
P.O. Box 83720
Boise,ID 83720-0074
Phone: [phone], Fax: [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MA ITER OF THE APPLICATION )
OF AVISTA CORPRATION DBA ) CASE NOS. AVU-E.II-01
A VISTA UTILITIES FOR AUTHORITY TO ) A VU-G-l1-0 1
INCREASE ITS RATES AND CHARGES )
FOR ELECTRIC AND NATURA GAS )
SERVICE IN IDAHO ) STIPULATION AND SETTLEMENT
This Stipulation is entered into by and among A vista Corporation, doing business as
Avista Utilities ("Avista" or "Company"), the Staff of the ldaoPubJic Utilties Commission
("Sta), Cleater Paper Corpration ("Cleaater"), Idaho Forest Grup, LLC("ldah
Forest"), th Community Action Parerhip Assciation of Idaho ("CAP AI"), and the Idao
Consrvation Leage ("Conservtion League"). These entities ar collectively referred to as the
"Paries," and reresent all paies in the above-referenced cases that paricipate in seement
discussions. The Pares understand this Stipulation is subjec to approval by the Idaho Public
Utilties Commssion ("IPUC" or the "Commssion").
STIPULATION AND SETTLEMENT - AVU-ElG- i 1-01 Exhibit No. 101
Case No. A VU-E-l1-0l/A VU-G-II-Ol
R. Lobb, Staff
9/09/11 Page 1 of 26
I. INTRODUCTION
1. The term and conditions of this Stipulation ar se forth heren. The Paries agree
th this Stipulation represets a fair, jus and reasonable compromise of all th issues rase in
the proceedng and that this Stipulaton and its aceptce by the Commission represnt a
reasonale resolution of the multiple issues identified in. this Stipulation. The Panes, thfore,
recommend that the Commission, in acordance with RP 274, approve the Stipulation anòall of
its terms an conditions withut marial chage or condition.
II. BACKGROUND
2. On July 5,201 I, Avista fied an Application with the Commission for authority to
increase revenue from elecc and natura gas serce in Idah by 3.7% and 2.70~. respively.
If approved, the Company's revenues for electc base retail rates would have incre by $9.0
milion annualy; Compay revenues for natul gas serice would have increas by $1.9
milion anualy. The Company reueste an effective dae of Augut 5, 2011 for its prposed
electrc and natu gas rate increass. By Order No. 32292, dated July 14.2011, the Commission
sunded the propose schedules of raes and chares for electrc and natl ga seice for a
period of thrt (30) days plus five (5) months, from Aug 5. 20 i i, until such time as the
Commission enters an Order accepting, rejecting or modifyin the Applicationin this matt.
3. Petitions to intervene in ths prong were fied by Cleater, Idaho Forest,
CAP Al and the Idao Conservation Leage. By various order, the Commission grnted thes
interventions. ~èe, IPUC Order Nos. 32296 and 32317.
4. A seement conferce wa noticed and held in the Commission offces on
August 11,2011. and was attended by signtories to ths Stipulation; furer discusions ensed.
STIPULATION AND SEITLEMENT -AVU-E/G-l J-01 Exhibit No. 101
Case No. AVU-E-II-0l/A VU-G-ll-Ol
R. Lobb, Staff
9/09/11 Page 2 of 26
Based upn the seement discssions among the Pares, as a compromise of positions in this
ca, and for other considertion as set fort below, the Pares agee to the following term:
III. TERMS OF TH STIPULATION AND SETTEMENT
5. Overew of Settement an Revenu Reyiement. Th Pares agr tht A vist
should be allowed to implement rese taff schedules designed to recover $2.8 milion in
adtionaIanua electnc revenue. an Sl.1 milion in additionl anua natul gas revenue,
whch represet a 1. i % and i .6% increase in electc and natu gas anua bas taff revenues,
respevely. New electrc an natul gas ras would beome efièctive Octo 1. 201 i.
The Pares agre that this Settlement is not contingent upon any specific methodology
for individual components of the revenue reuirement deterination, but all Paries support the
overal increas to the Company's revenue reuirement, and ag that the overal incrase
resents a fai, jus and reble compmise of the issues in this proceeding and tht ths
Stipulation is in the public intert.
6. Net Impa of All Propo Revenue AqiYSents on Octobe 1, 2011. By meas
of seare fiings, several othr rate adjusents ar proposed to also take effect on Octobe 1,
2011. VVith respect to electric se£t, these propose adjustments include the followingl: a
dereas of $2.2 milion in Schedule S9 for Residential Exchage benefits for residential and
sml far cusomers; a decreas of $15.5 milion in Schedule 66 Power Cost Adjusent (PCA)
rates. In addition, an incree of $8.7 milion for the previously-approved adjustment tor
Deferr State Income taxes (DSin in Schedule 99, as par of the Settlement approved in Cas
No.(s) AVU-E-IO-Ol and A VU-G-l 0-0 1 will tae effect on Octobe 1,201 l. After taing into
accout the agreed-upon increa of $2.8 milion in elecc geera ra incre revenues, the
net overl reguction resulting from all of th prposed aforementioned adjustments. if apprved
i Thes prpos rae changes ar included for ilustive purpse and ar not pa artbis Stipulaion.
STIULATION AND SETTLEMENT -AVU-E/G-Il-OI
Exhibit No. 101
Case No. A VU-E-ll-Ol/A VU-G-II-0l
R. Lobb, Staff
9/09111 Page 3 of 26
as filed would totl approximately $6.2 milJon.2 Anahment A sets fort these propod
Ocobe. i adjustments in more detal. and by serce schedule. The following table summarzes
these proposed revenue adjusterts:
Eletr - Oeber 1, 2011 Revenu Chse
Scheul 99 . l)sIT I~reas
Scheul 59 - Residen Exlw
Schedul 66 - peA De
ORC Rate Inre
Total Revenue Ch
$ 8,698,844
$ (2,207,088)
$ (15,517.483)
$ 2,800,000
$ (6,225,727)
With respet to natu gas seiç. the following rate adjusents. by meas of sepaate
filings. ar proposed to tae effec on October 1,20113: an increase ofSO.8 milion in Schedules
1501155 for Purchased Gas Costs (PGAt; a decreas of $2.9 milion in DemanSide
Magement (DSM) taff rider Scheule i 91. In addition. an incre of SO.5 millon for the
prviousiy~approved adjustent for Deferr State Income Taxes (OSIT) in Schedule 199, as
pa of the Setlement apprved in Case No.(s) A VU-E-1 0-01 and A VU-G-l 0-0 1 wil tae effec
on Octobe 1, 2011. Aftr taking into account the agee-upn inceae of $ 1.1 milion in
naur gas general rate revenues, th net overall decr resultig trmall of the proposed
aforentioned adjusents, if apoved as filed would be $0.525 milion. Attchment A se
forth these proposed Octobe 1, 2011 adjustents in more deail, and by seice schedule. The
folloWÎngtable sumarze thes propose revenue adjustments:
i As pa of this Setlement. Avita ba also ag to withw its fied-for decease of $0.74 milion in electrc
Demand~Side Management (OSM) Tariff Scheule 91, and will do so by means ofase fiing.3 Thes proposed rae chages aririluded for ilustrive purpse and ar not pa of this Stipulaion.
4 On Augu 26,201 1, Avista will up its peing PGA (Cas No. A VU-G.I 1 -o4)io reflect a decline in forard
natu ga prces sine the Augst 15, 201 i POA filing which, if approve by the Commission. would result in a0.98% overl incr verus the prviouy-file 1.53% increasi Th revised propose raes have ben
incorra into the net propsed Ocbe 1,201 i Revenue Chage and Attahmnts A andC to this Stipulaon.
STIPULATION AND SETTLEM&l\T - AVU-E/G-l 1-01 Exhibit No. 101
Case No. A VU-E-II-OllA VU-G-Il-Ol
R. Lobb, Staff
9/09111 Page 4 of 26
Natu Gas . Oelober 1,2011 Revenu Cb
Scheul i 99 - DSIT Incre $
Scheul 150/155 .PGA Incre $Schedul i 9 I - DSM 1)7eas $ORC Ra Iæ $Tota Revenu Cba. $
Efecve Date for New Rats In Ths Proceedin.
470,423
776.190
(2,871,236)
1,100.000
(524,623)
7.The Paries agr, as an
integral pa of the Setement, that the effective date for new elecc and natual gas rates should
be October 1, 20 I 1.
8. Limitaon on Effective Dat of Any New Ras Eslish. By Subseuet
General Ra filing. The Compay agres that it will not seek to make effective a change in
bas electric or natural gas rates pror to April 1, 2013, by mean of a geer rate fiing. (Any
filing of a genera rate cas. however, may be mad pror to Aprl 1, 2013, but shal not reue
-.
aneífective dae prior to April I, 2013.) This wil not prvent the Company, however, fr
otherwse seeking to implement other rate changes affecng the rates biled to custmer,
including, but not limited to, adjustments under the power cost adjustent (PC A) mechais,
purha gas cost adjustments (PGA); DSM taff rider adjustments; etc.
9. PCA Authrized Level of Expens. The new level of power supply expese, retil
load an Clearater Pape generaton, and Load Change Adjustment Rate reulting frm the
settlement revenue requireent for purse of the monty peA mehaism caculaons, ar
detaled in Attachmt B.
10. Cost of Service. As par of this rate ca, the Company preard an analysis of
using a pe credit method of clasifying producton costs, allocating 100% of transmission costs
to demad, and allocating trsmission costs to reflect any peak and off-peak seasona cost
differes on a weighted twelve month bais. The Paries have. agd to exchge informaton
and convene a public workshop. prior to th Compay's next genera rate cas, with respect to
STIPULATION AND SETrLEMENT - AVU-E/G-II-Ol Exhibit No. 101
Case No. A VU-E-11-0l/A VU-G-11-01
R. Lobb, Staff
9/09/11 Page 5 of 26
the metod of allocon of demad and energy among the cusomer classes suh as the possible
us ofa rese pe credit meth for clasifyng prouction costs, as well as considertion of
the us of a i 2 Coincident Pea (CP) (wher "weighted" or not) verus a 7 CP or other method
for alloctin trission costs. This workshop win also address the ments of in~liíng 'or
delin block rates tbr servce schedules i i, 2 i, 25 and 31. The Pares agr, however, to
spre th electc rate increas on a unifonn petage basis for purses of ths Setlement.
As for natul gas, the Company prepared a cost of servce study and proposed th aU
rate sehedulesbe moved to UIty.For seement purse, th Pares agr to sprea th
natu gas rae incre on a uniform pecentage bais.
i 1. Rate SprRae Design.
(a) As indicated above, the Pares agee that the increa in base revenue would
be spred to all electrc and natul gas rate schedules on a unifonn peentage basis.
(b) The Paries ag that ther will be an increas in the baic charges. monthly
minimum chages, and demand charges in Schedules i i, 21, 25 and 146, as shown in
Attacent C.
(c) A unifonn percentage incrase will be applied to each energ rate within each
electrc serice schedule excluding Schedule 1, reidential service, where the block
differtial remns constt. In addition. th send block in Schedule i 1 will be
reducd by $0.00773 as contemplated in the Compay's origi filingS, and the
remaning revenue requiremen. after accounting for the changes in the basc chage an
demand chage, wil be aplied to the first energy block.
5 SeeOii Testimony of Pack El.Page 15.
STIULATION AN SEITLEMEN.. A VU-E/G-II-01 Exhibit No. 101
Case No. A VU-E-11-0 11 A VU-G-11-0 1
R. Lobb, Staff
9/09/11 Page 6 of26
(d) The Pares agree that the curnt residential electc ba'iic charge of $5,00 per
month wil be incre to $5.25, and the reidential natural ga baic charge of $4.00 per
month will be incras to $4.25.
(e) Attchment C prvides a summar of the curt and revise ra~s and
chages (as per the Setlement) for electric and naturl gas service;
12. Resulting PerenWW Inreas by Schedule. The following tables reflect the
agree-upon pecentage incre by scheule for elecc and natual ga servce:
FJeetr lnrease Pen:l1e b. Sebedu
Iirease in Base Net lirease in
Rate. Sehedul Rates Bil Rates.
Reskient Scædul i 1.%-2.1%
0e Sere Scheul 11/12 1.%-1.%
I. GeOO Ser Scædul 21/22 1.%-1.4%
Extra Large Gel Ser Schedul 25 1.%-3.9%
C~arPapr Scoodul 25P 1.%-5.2%
Purin S~e ScOOul 31/32 I.%0.0%
Str &. Area Lig Scheduls 1.%2.7%
OveraD t.t%-2.4%
· Net Iæreas inlles th eflet of th propose cli in Scdul S9 (Residnt
Exha), Sche 66 (powe Cost Adjusnt), Scheul 99 (DrerrSta Incoiæ
Tax) ai th General Ra Iæreas, al eflcti on Octobe i. 20 1 1 if aproved.
Natu Gas Increase Pen:eDtue bYSehedu
wrease iDBase Net Iørease iD
Rate Schdu Rates BiJ Rates"
Gera Ser Scheul 101 1,6%-0.5%
l.Oene Sere Scheul i 1 1/112 1.6%.1.8%
Inttble Sale Serv Sche1. 131/132 1.6%-10.6%
Traporttin Seme Scheul 146 1.6%3.0%
OveraD 1.6%-0.8%
.. Net Incas inh.s the1icts ofth proposed chas in ScoodtO 150/155
(POA), Scheul 191 (Enrg Efieæy Rier), Schedul 199(Dtred State læoiæ
Tax) ai th Genera Rate I~rease. aD efictiv on October 1, 2011 if approve.
STIPULATION AND SETTMET - AVU-E/Q-l 1-01
Exhibit No. 101
Case No. AVU-E-II-01lA VU-G-II-0l
R. Lobb, Staff
9/09111 Page 7 of 26
13. Custamer ServiceRelated Issues.
(a) Funng for Out£lch for Low-Income Conservation. The Pares agree to
anua fuding of $50,000 to CAP AI for purpses of providing low-income outrach an
education concerng conservation (representing an incre of $10,000 from previou.c;
fuding levels). This amount win be funded thugh the Energy Effciency Tariff Rider
(Schedules 91 and 191), an will be in addition to the $700,000 of Low-Incoe
Weathution fudin curtly in place.
(b) Collaboration on Low-Income Weaerzaon. The Compay and interest
paies will meet and confer prior to the Compay's next general rate filing in order to
asess the Low Income VVeatheriution and Low Income Energy Conservation Educaton
Programs and discuss appropriate levels of low-income weatheri7.ation fuding in the
future.
14. Oter ACcoung Matteferrs. The Pares agee to the followig
aCcoWlting treaunent for the followig ites:
(a) Costs ASSiated With Aç9uisition Fr. Palouse VVind LLC. The Compay
has signed a 30-year power purhas ageement with Palous VVind, LLC, to acuire all
of th power prod\æed by a wi prject that is expeted to prouce approximately 40
aMW. Deliveres ar expeted to begin in the second half of 2012. The annual cost of
the Idao shar of the purhas power under the contrct is expeçed to be
approximately $6.5 milion. Under ter of this Settlement, the Compay shl include
10010 of the cost associated with power puhases from the wind project though the
Power Cost Adjustent (PCA) until such costs, subject to pmdence review, are reflected
in gener rates..
STIPULATION AND SETTLEMENT - AVU-FJG-l 1-01 Exhibit No. 101
Case No. AVU-E-11-0l/A VU-G-I1-01
R. Lobb, Staff
9/09/11 Page 8 of 26
(b) Deferrd Accoting Treatent For The Varabilty In Cert Generng
Plant Option and Maintna (O&Ml Cost. In order to address the large varabilty
in year-to-year O&M cost. begining in 2011 the Company will be allowed to defer
changes in O&M cost relate to its Coyote Springs 2 (CS2) natura gasfire generang
plant located near Boardm, Oregon, an its fiftee (15) perct ownership shar of the
Colsp 3 & 4 coal-fired generting plants located in southeasern Monta.
The Compay wil compae act. non-fuel, O&M expese for th Coyote
Sprs 2 and Colstrip 3 & 4 plants with the amount of expense auorize for recovery
in ba rates in the applicale defer yea, and defer the differce from th curntly
authorized. The deferr will ocur anualy, with no carng chage, with detèrr cost
being amorze over a thee-yea peod, beinnng in Janua of th yea followi the
period costs are deferd. The amount of expe to.be include for revery in futue
genera. rate caes would be the actual.O&M expense reorded in the test period, less any
amount detèrrd durng the test peod plus th amort7..tion of preously deferd costs.
The Company would defer the opeations an maintnance expenses referenced
above in Account i 82.3 - Other Reguatory Assets. The defers would be allocate to
the Idao and VVashington jurisdictons bad on the Production I Tranission allocaon
percntages in place at the time th deferrs are mae, an placed in separte Idao an
Washingon sub-acunts. Account i 82.3 - Oter Regulatory AsstS would be debite.
an Account 407.4 - Reguatory Credts wil be credited as th deferrs are recorded.
Amonition will be recrded by debiting Account 407.3 - Regulatory Debits, an
credting Account 182.3 - Oter Reguatory Assets.
STIPUlATION AND SETTEMENT - AVU-E/G-ll-OI Exhibit No. 101
Case No. A VU-E-II-0l/A VU-G-I1-01
R. Lobb, Staff
9/09/11 Page 9 of 26
iv. OTR GENERA PROVISIONS
15. The Pares agre tht this Stipulation :rprents a compromise of th positions of
the Pares in this ca. As prvided in RP 272, other th any testmony filed in supprt oftbe
approval of ths Stipulation, and except to the extent necessary for a Pary to explain before the
Commisson its 0\\11 statements and positions with respe to the Stipulation. all stements made
and positions taen in negotiations relating to this Stipulation shall be confidential an will not
be adssible in evidence in ths or any other prceeding.
i 6. The Pares submit this Stipulation to the Commssion an recommend approva
in its entirety puruant to RP 274. Pares shall support tms Stipulation before the Commission,
and no Pary shal appe a Commsion Order approving the Stipulaton or an issue resolved by
the Stipulion. If ths Stipulation is chllenged by any pers not a pa to the Stipulation. the
Pares to th Stipulation reserve the right to file testimony, cross-eamne witnesses and put on
suh ca as they dem apprriate to repond fuly to the issue presnte. inluding the right to
rais issues that are incorpraed in the seement terms emboed in this Stipulation.
Notvithstading ths reservation of rights, the Paries to this Stipulation ag that they wil
continue to support the Commission's adoption of the ter of ths Stipulation.
17. If the Commission rejects any par or all of this Stipulation or impse any
additiona matrial conditions on aproval of this Stipulation, each Pary resees the righ. upon
wrtt notice to the Commsion and the othr Pares to this proing, withn i 4 days of the
date of such action by the Commission, to withdrw from ths Stipuation. In suh case, no Par .
shal be bound or prejudiced by the ter of this Stipulation, and eah Par shall be entitled to
sek rensideration or'the Commis:)10n's order, file testimony as it chooses, cross-examine
witness, and do all other things nessa to put on such cas as it dems apprprate. In such
STIULATION AN SETTLEMENT -. AVU-E/O-ll..1
Exhibit No. 10 1
Case No. A VU-E-I1-01lAVU-G-I1-01
R. Lobb, Staff
9/09/11 Page 10 of26
ca. the Pares immediately wil reues the prompt reconvenig of aprheag conferce for
purses of estalishing a proceurl schedule for the completion of the ca. The Pares agree
to cooperate in development of a schedule tha concludes the prceeing on the ealiest possible
date, tang into acunt th nee of the Pares in paicipatig in hearngs and prng
teimony and briefs.
18. The Paries agr that this Stipulation is in the public intest and that all of its
tenn an conditions ar fair, jus and reasnable.
19. No Par shal be bound, beefited or prejudiced by any position asseed in th
negotiation of this Stipulation, except to the extent expressly state herin, nor shal ths
Stipulation be consed as a waiver of the rights of any Pary uness such rights ar expressly
waved herein. Execution of this Stipulation shal not be deeed to contu an
acknowledgment by any Par of the validity or invalidity of any parcular method. thry or
principle of regulation or cost revery. No Par shall be deemed to have ageed tht any
meth theory orprnciple of regulaton or cost recovery employed in arving at this Stipulation
is appoprate for reolving any issues in any oter proceding in the futur. No findings of fact
or conclusions of law other th those stated heein shal be deeed to be implicit in this
Stipultion.
20. The obligations of the Paries under this Stipulation are subject to the
Commission's approval of ths Stipulation in accordance with its terms and conditions and upon
such approval being upheld on appeal. if any, by a cour of competent jursdiction. .
21. This Stipulation may be. executed in countear an eah signed counterpar
shall constute an original document.
STIPULATION AND SEITLEMENT - A VU-E/Q- 11-01 Exhibit No. 101
Case No. AVU-E-II-OllA VU-G-11-01
R. Lobb, Staff
9/09/11 Page 11 of26
08/26/2011 aa: 83 2083344045
~.DATED ths :i a;y of Augu 20 t 1.
Avist Corpation
By:-!i.t .
Attor fo Avi CorraOD
Clea Pap Corpraon
By:Pe Rich
Atty for Cleaer Paper
Comunty Action Parrsp Ascition
By:
Bra M. Purd
Attorey forCAPAI
IPLC PAG 01/82
Idah ~u. com.-_
By: .- C
Dod L. RowJl, n
Weldon Stutn
Depu Att Geer
Ida For Orup
By:
DeJ. Miller
Att for Id FOfst Group LLC
Ida Conation Lee
By:
STIPULA nON AND SETTEM - A VU-BiO-l1.0I
Beam 1. Ot
AUOmey for TeL
Exhibit No. 101
Case No. A VU-E-11-01lAVU-G-11-01
R. Lobb, Staff
9/09/11 Page 12 of26
~
DATED ths ).7 day of Aug 201 1.
AVi Corpra
By:
David J. Meyer
Att for A vi Coraon
C~~~qnBY:~. ~Pet RichnAttrn ror Clea Pap
Communty Acton Pahi Ason
By:
. Br M. Puy
Attor for CAP AI
Ida Pulic Utilities Comion Sta
By:
Donad L. Howell, n
Kr A. Sa
Dety Attys Geer
Idao ForeOr
By:
De J. Miller
Att for Ida Fore Gr LLC
Ida Conson Le
By:
Bejamin J. Oto
Att fòr TCL
STIPULTION AN .SETEMET - A VU-ElG-ll-01
Exhibit No. 101
Case No. A VU-E-II-0l/A VU-G-I1-01
R. Lobb, Staff
9/09/11 Page 13 of 26
DATED this _ day of Augu 2011.
A vista Cor
By:
David 1. Meyer
Attey for Avi Corpraon
Cleaer Pap Corn
By:
Pet Ricbson
Attrney for Qeaat Pap
Communty Acton Parer Assation
By:
Bra M Puy
Attorny for CAP AI
Idaho Public Utilities Coss Sta
By:
Doald L. Howell. II
Krst A. Saser
Deut Attorn .GeeraJ
J. Miller
Attrney for Ida Fort Grp LLC
Idaho Coaton League
By:
Benjamin 1. Ot
STIPULATION AN SETEMNT - A VU-FJG.Il...o
Exhibit No. 101
Case No. A VU-E-I1-0l/A VU-G-II-0l
R. Lobb, Staff
9/09/11 Page 14 of26
DATED th _ da of Aug 2011.
A vi Coon
By:
Davi J. MeyerAtt for A vi Cor
Cle Pap Coran
By:Pet RihanAty fo Clea Pap
;:~~/J' Br M. Puy
(j" ~ Ati for CAP AI
Ida Public Utilities Commion Sta
By:_
Do L. HoweJl, II
Weldo StuDe Att Ge
By:
Ida For Grup
De J. Mile
Attrn for Ida Fort Gr LLC
Ida Con Le
By:
Bejamin J. Ot
Attrn for ICL
STIULA nON AND SElEMENT - AVU-ElG- i i..i
Exhibit No. 101
Case No. AVU-E-II-0l/A VU-G-11-01
R. Lobb, Staff
9/09/11 Page 15 of26
DATED thS~ day of Augut, 2011.
A vi Corporaon
By:
David J.. Meyer
Attey for A vist Corpration
Cleaater Paper Corporation
By:
Peter Richarn
Attey for Cleaate Påp
Communty Acton Parrship Association
By:
Bra M. Purdy
Attorey for CAP AI
Idaho Public Utilites Commisson Sta
By:
Donald L. HowelL, II
Weldon Stutzan
Deputy Attrneys Generl
Idao Fore Grup
By:
De J. Miller
Attor forldao Fore GroupLLC
Ida ~.ti LeBy:. .~
Benjamin J. Oto
Attrney for ICL
STIULTION AN SB'EME - A VU-ElO-l 1-01
Exhibit No. 101
Case No. A VU-E-11-0 11 A VU-G-11-0 1
R. Lobb, Staff
9/09/11 Page 16 of26
STIPULATION AND SETTLEMENT
Case Nos. AVU-E-ll-Ol & AVU-G-ll-01
ATTACHMENT A
Summary of Proposed Net Rate Changes
Electric and Natural Gas
Exhibit No. 101
Case No. AVU-E-1 1-01/AVU-G-1 1-01
R. Lobb, Staff
9/09/11 Page 17 of 26
'0

:
:

n

t
r
-.
.

I
I

X
~r
r
¿

e
:
-.

0

0
-
-o
-
z
~
:
-~
o
-
?

Z
""

C
I
:
;

0
J¿
S
"
.
.
:
.
(1

:
:
e
o
-
,
-
00

t
r
o
~
'"

_
N
i
0\

0
-~6i--Io-
Av
I

u
t
l
i
t
i
e
Id
a
h
o

R
a
t
e

A
d
j
u
m
e

-

E
l
e
r
i
RE
S
I
D
E
N
A
l
GE
N
E
R
A
l

S
V
C
.
LG
.

G
E
N
.

S
V
C
.
EX
L
G
G
E
N
S
V
C
CL
W
A
T
E
R
PU
M
P
I
N
G
ST
&

AR
E
A

LT
G

TQ
A
l
SC
H
E
D
U
L
E

1
SC
H
.
1
1
,
1
2
SC
H
.
2
1
.
2
2
SC
H
E
D
U
L
E

25

SC
H
E
D
U
L
E

2
5
P
SC
H
.
3
1
,
3
2
SC
H
.
4
1
-
4
9
$
25
8
,
6
7
9
,
2
9
5

$
10
2
,
2
8
,
7
1
1

$
31
.
6
4
3
,
4
6

$
54
.
9
0
7
,
1
6
6

$

1
5
,
3
1
7
,
3
5
8

$
46
,
4
4
1
.
4
7
8

$
4,
7
1
3
,
2
2
2

$
3,
3
7
1
,
8
$
8.
6
9
8
,
8
4

$
4,
1
3
1
,
4
1
7

$
78
2
,
6
2
7

$
1,
7
9
,
9
5
8

$
47
3
,
8
2
3

$
1.
1
9
1
,
8
5
9

$
20
8
,
1
9
2

$
11
5
,
9
6
7
$
(2
,
2
0
7
,
0
8
8
)

$
(2
,
1
3
4
,
9
5
)

$
(3
7
,
5
7
8

$
(2
3
,
8
7
6
)

$
$
-
$
(1
0
,
6
8
)

$
$
(1
5
,
5
1
7
.
4
8
3
)

$
(5
,
3
0
,
5
2
5
)

$
(1
.
4
2
2
,
9
5
8

$
(3
,
1
5
1
,
5
3
)

$
(1
,
2
1
,
4
0
5
)

$
(4
,
Q
1
,
4
5
6
)

$
(2
4
8
,
1
0
5
)

$
(6
3
.
5
8
2
)
$
2,
8
0
,
0
0

$
1,
1
4
3
,
3
0
0

$
34
1
,
2
0
0

$
58
8
,
6
0
.

$
15
9
.
8
0

$
4n
.
7
o
o

$
51
,
4
0

$
38
,
0
0
$
(6
.
2
,
n
n

$
(2
.
1
6
8
,
7
5
8
)

$
(3
3
,
7
1
0
)

$
(7
9
l
.
7
0
)

$
(5
9
7
,
7
8
)

$
(2
,
7
J

$
80

$
90
,
3
3.
4
%
4.
0
%
2.5
%
3.
%
3.1
%
2.6
%
4.4
%
3.
4
%
-0
.
9
%
-2
.
1
%
-0
.
1
%
0.
0
%
0.
0
%
0.
0
-0
.
2
%
0.
0
%
-6
.
0
%
-5
.
2
%
-4
.
5
%
-5
.
7
%
-8
.
0
%
-8
.
8
%
-5
.
3
"
-1
.
9
%
1.
1
%
1.
%
1.
%
1.
%
1.
1
"
1.
"
1.
1
"
1.
1
%
-2
.
4
%
-2
.
1
"
-L
1
"
-1
.
4
"
-3
.
9
%
-5
.
2
'
0.
0
%
2.7
%
1
T
o
t
a
l

P
r
e
s
e
n
t

B
i
l
e
d

R
e
v
n
u
e
2 3
R
e
v
e
n
u
e

C
h
a
n
g
e
4
S
c
h
e
d
u
l
e

9
9

-

O
S
I
T

I
n
c
r
e
a
s
e

·
5
S
c
h
u
l
e

5
9

-

R
e
s
i
d
e
n
t
i
a
l

E
x
c
h
a
n
g
e
6
S
c
e
d
u
l
e

6
6

-

P
C

D
e
a
s
e
8
G
R
C

R
a
t
e

I
n
c
r
e
s
e

.
.
9
T
o
t
l

R
e
v
e
n
u
e
C
h
a
n
p
10 11

P
e
r
c
n
t
a
g
e

C
h
a
n
g
e
12

S
c
d
u
l
e

9
9
-

D
S
I
T

A
d
j
u
s
t
e
n
t
13

S
c
h
e
d
u
l
e

5
9

-

R
e
s
l
d
n
t
l

E
x
c
h
a
n
g
e
14

S
c
h
e
d
u
l
e

6
6

-

P
C

A
d
j
u
s
t
e
n
t
16

G
R
C

R
a
t
e

A
d
j
u
s
t
m
e
n
t
17

T
o
t
l

P
e
r

C
h
n
p
18 19 20

ê
s
m
a
o
n
s
21

S
c
e
d
u
l
e

9
9

D
S
l
T

P
e
r

A
V
l
E
.
1
O
-
1
22

R
e
s
i
d
e
n
t
i
a
l

E
x
c
h
n
g
e

a
s

F
i
l
e
d

A
u
u
s
t

2
0
1
1
23

P
C
A

D
e
a
s
e

a
s

F
l
i
e
d

J
u
l
y

2
0
1
1
24 25 26

·

A
s

n
o
t
e
d

I
n

t
h
e

S
C
h
e
d
u
l
e

9
9

t
a
r
i
,

a
n
y

r
e
s
i
d
u
a
l

b
a
l
a
n
æ

w
i
l
l

b
e

t
r
u

u
p

i
n

a

f
u
r
e

P
C

f
i
l
e

b
y

t
h

C
o
m
p
a
n
y
27

.
.

G
R
C

R
a
t
e

S
p
r
e
d

i
s

a

u
n
i
f
o
r
m

p
e
r
æ
n
t
a
g
e

I
n
c
e
a
s
e
At
c
h
m
e
n
t

A
St
i
p
u
l
a
o
n

a
n
d

S
e
t
m
e
n
t
ca
s
e

N
o
.

A
V
U
~
-
l
1
-
o

a
n
d

A
V
U
-
G
-
1
1
-
o
1
Av
l
Pa
g
e
l
o
f
2
\O
:
:
n
t
I
-.
.

~

~
0.
.
0
0

:
i
\0

l

t
l

&
:
~
g
.

Z
:
:
'
-9
"
~

Z
'"

v
.

"
'

0
~
s
-

.
.

.
~
~
2
õ
-
1
-
\0

t
I
o
~
"'

_
IV

i
0'

0
~6i--Io-
Av
i

U
t
i
l
i
e
s
Id
a
h
o

R
a

A
d
j
u
s
n
t
.

N
a
t
u
r
a
l

G
a
GE
N
S
E
R
LR
G
G
E
N
S
V
C
IN
U
P
1
B
L
E
TR
S
P
O
R
T
TO
A
l
SC
H
E
D
U
L
E

1
0
1
SC
H
.
1
1
1
&
1
1
2
SC
.
1
3
1
&
1
3
2
SC
H
E
D
U
L
E

1
4
6
$
68
,
5
5
0
,
3
6
3
$5
3
,
1
1
2
.
4
3
0
$1
4
,
8
5
5
,
1
3
0
$2
5
5
,
5
3
5
$3
2
7
,
2
6
8
$
47
0
.
4
2
3

$
39
4
,
9
6
6

$
69
,
4
2
2

$
1,
2
5
2

$
4,
7
8
3
$
77
6
,
1
9
0

$
58
6
,
7
6
1

$
20
8
,
2
6
5

$
(1
8
,
8
3
6
)

$
$
(2
,
8
7
1
,
2
3
6
)

$
(2
,
0
7
1
,
2
7
1
1

$
(7
8
6
,
1
3
6
)

$
(1
3
,
8
2
9
1

$
$
1,
1
0
0
,
0
0

$
85
0
,
0
0

$
24
0
,
5
0
0

$
4,
3
0
0

$
5,
2
0
0
$
(5
2
4
,
6
)

$
(2
3
9
,
5
4
4
)

$
(2
6
7
,
9
5
0
)

$
(2
7
,
1
1
3
)

$
9,
9
8
3
0.
7
%
0.
7
%
0.
5
%
0.
5
%
1.
5
%
1.
%
1.1
%
1.
4
%
-7
.
4
%
0.
0
%
-4
.
2
%
-3
.
9
%
-5
.
3
%
-5
.
4
%
0.
0
%
1.
6
%
1.6
%
1.
6
%
1.
6
%
1.
6
%
-0
1
"
-0
.
5
"
-1
.
8
%
-1
0
.
&
%
3.
"
1
T
o
t
l

B
i
l
l
e

R
e
n
u
e
23
R
e
n
u
e

C
h
n
g
4
S
c
d
u
l
e

1
9
9

.

D
S
I

I
n
c
r
a
s
e

·
5
S
C
e
d
u
l
e

1
5
0
/
1
5
5

-

P
G
A

I
n
c
r
e
a
s
e
6
S
C
e
d
u
l
e

1
9
1
.

D
S
M

D
e
s
e
7
G
R
C

R
a
t
e

I
n
c
e
a
s
e

.
.
8
T
o
t
l

R
e
v
e
n
u
e

C
h
n
p
910

P
e
r
c
n
t
a

C
h
a
n
g
e
11

S
c
h
e
d
l
e

1
9
9

-

O
5
I
T

I
n
e
r
s
e
12

S
c
u
l
e

1
5
0
/
1
5
5

-

P
G
A

I
n
c
r
e
a
s
e
13

S
C
e
d
u
l
e

1
9
1
.

O
5
M

D
e
a
e
s
e
14

G
R
C

R
a
t

I
n
c
r
e
a
s
e
15

T
o
t
l

P
e
r
c
n
t
a
s
e

C
h
a
.
16 17 18

A
s
s
u
m
D
t
o
n
19

S
c
h
e
d
u
l
e

1
9
9

D
S
I
T

P
e
r

A
V
U
-
G
-
1
O
1
20

P
G
A

I
n
c
r
e
a
s
e

a
s

A
l
e
d

A
u
u
s
t

2
0
1
1
21

D
S
M

D
e
c
e
a
s
e

a
s

A
1
e
d

J
u
n
e

2
0
1
1
22 23

·

A
s

n
o
t
e
d

i
n

t
h
e

S
c
h
d
u
l
e

1
9
9

t
a
r
i
,

a
n
y

r
e
s
i
u
a
l

b
a
l
a
n
c
e

w
i
l
l

b
e

t
r
u
d

u
p

i
n

a

f
u
t
u
r
e

P
G
A
.
f
i
l
e
d

b
v
t
h
e

C
o
m
p
a
n
y
24

.
.

G
R
C

R
a
t
e

S
p
r
e
d

i
s

a

u
n
i
f
o
r
m

p
e
r
c
e
n
t
a
g

i
n
c
r
e
a
s
e
St
i
p
u
l
a
t
i
o
n

a
n
d

S
e
l
e
m
è
n
t
Ca

N
o
.

A
V
U
-
E
-
1
1
"
(
l

a
n
d

A
V
U
-
G
.
1
1
.
.
l
Av
i
Pa
s
e
2
o
f
2
At
c
h
m
e
n
t

A
STIPULATION AND SETTLEMENT
Case Nos. AVU-E-ll-Ol & AVU-G-ll-Ol
ATIACHMENTB
Electric PCA Authorized Expense and
Retail Sales
Exhibit No. 101
Case No. AVU-E-ll-OllA VU-G-11-01
R. Lobb, Staff
9/09/11 Page 20 of 26
'0

~

n

t
T
--
.

I
I

X
0.
.
'
"

:
:
'0

l

t
J

&
:
;:

g
.

Z

:
:
:
;
:
..

y
O
'

~

Z
;c

~

~

~
(J

e
t

~

.
.
tJ

'
"
C
O
tv

i
"
"
..

t
T
i....Io..~6i....b..
o..tv0"
Av
l
C
o
r
p
Pr
o

t
o
n
n
a

J
a
n
u
a
i
y

.

D
e
m
b
r
Pe
A

A
u
t
h
r
i
D
d

E
x

.
a
n
d

R
e
i
l

s
a
l
e
PC

A
u
o
r

P
o

S
u
p
p
l

E
l
!
n
.
.

-

S
y

N
u
m
b
!

1
1
1
J2
.l
fI
!o
&d
!m
oI
.i
&i
~
Qs
~
~
Ai

5
5

-

P
u
n

P
o
w
$9
,
3
.
5

$
1
0
.
1
2
2
.
5
0
$9
,
5
7
7
.
6
6
$9
,
0
1
9
.
0
8
$7
,
5
.
8
$5
,
2
8
.
9
4
$5
.
4
8
.
1
6
9
$8
,
1
.
9
7
1
$8
.
3
5
.
4
6
3
$5
,
5
1
.
7
3
1
$5
.
4
4
7
,
4
1
0
$8
.
5
1
,
5
$9
.
5
.
2
Ai

5
0
1

-

T
h

F
u
e
$3
.
0
4
.
4
5
53
.
0
7
2
,
8
$2
.
7
8
,
3
$2
,
9
7
4
.
6
4
$2
.
2
.
1
0
6
$1
,
5
9
1
.
0
0
7
$1
.
1
9
6
.
_
$2
,
8
1
0
.
0
0
53
.
0
9
.
1
9
2
53
.
0
2
0
.
5
1
7
53
.
1
2
1
.
~
53
.
0
3
2
,
5
53
.
0
4
.
0
7
3
Ac
n
t

5
4
7

-

N
a

G
a

F
u
e
$9
2
.
2
8
,
6
5
$9
,
9
.
0
1
0
$8
.
8
.
3
7
5
$5
,
6
,
8
9
$2
.
5
5
2
.
0
6
7
$1
.
5
2
1
.
5
0
$1
,
8
2
,
8
8
1
$7
,
l
,
8

$
1
0
.
0
1
6
,
4
8
6
$9
,
9
8
8
,
8
7
9

$
1
1
,
6
4
,
5
9

$
1
1
,
6
1
0
,
9
7
4

$
1
1
.
6
5
.
0
2
3
Ai

4
4
7

-

$
a

f
o

R
e
$4
,
3
1
.
7
1
3
53
,
5
5
5
.
9
5
53
,
4
2
8
,
2
$2
.
3
4
8
.
0
6
$2
.
9
2
1
,
4
4
1
53
.
5
7
0
,
2
1
3
$2
,
5
3
,
8
$4
,
4
4
9
.
0
1
5
$1
,
3
,
8
53
.
5
,
2
9
53
,
9
5
,
3
7
6
$4
,
9
9
,
7
8
2
53
,
7
2
.
8
2
Po
w
r

s
u
p
p
l

E
x
l
l
$1
7
4
,
3
4
.
9
5

$
1
9
,
6
1
6
.
4
2

$
1
7
,
7
4
1
.
1
4
3

$
1
5
.
3
.
7
6
2
$9
.
4
7
7
.
5
4
54
,
7
7
1
.
0
9
$5
.
9
7
,
8

$
1
1
.
4
5
.
9
0

S
2
.
D
.
2
7

$
1
4
.
9
7
1
,
8
3

$
1
6
,
2
5
.
0
9

$
1
8
,
1
8
5
,
2

$
2
0
,
4
8
1
,
5
0
Ti
a
l
n
i
o

E
x
n
.
.
$1
7
.
6
4
1
,
1
7
6
$1
.
5
.
6
3
$1
,
4
7
4
.
9
5
11
.
5
,
7
1
7
51
,
4
2
5
.
D
$1
.
4
3
.
4
6
0
51
,
4
3
.
7
6
51
.
4
7
7
,
8
2
4
$1
.
4
4
1
.
4
0
51
.
4
5
.
i
$1
.
4
3
,
3
51
.
4
7
3
.
0
5
$1
.
5
3
.
9
2
8
Tn
i
m
l
n
i
o

R
e
v
e
n
u
e
$1
1
,
5
2
4
.
7
3
2
$1
.
ø
7
,
2
3
$7
8
7
,
2
1
3
$8
.
5
9
$7
5
1
.
8
$9
.
7
6
0
$1
,
1
5
2
.
6
3
9
$1
,
1
1
6
,
2
7
$1
.
0
2
.
5
9
$1
.
0
1
4
,
5
$1
,
(
,
(
$9
1
.
6
3
5
$8
,
3
5
1
PC

A
u
!

!
c

R
!
U

s
"
I2
.l
fi
Mm
&i
MI
il
iI
&u

~

~

r
s

I
2
Re
I
l

S
.
.

(
w
l

e
i
a
_
i
i

M
W
CI
H
r
w
1
8

P
a

Ga
n
I
o
a
d
Lo

C
h
w
i
i
.

A
d
j
n
l

R
a
2,
9
3
7
,
2
1
3
29
1
.
5
3
22
,
0
1
6
21
8
,
5
38
,
5
2æ
,
7
5
4
36
.
5
7
22
.
5
4
1
22
.
1
5
7
23
9
.
3
7
2
26
,
5
30
.
7
9
9
28
1
,
0
34
.
9
8
24
0
,
0
4
1
28
.
0
7
1
23
,
9
1
7
43
,
1
5
3
37
.
4
5
37
.
6
0
7
35
.
0
9
38
,
7
4
36
.
0
8
37
.
6
3
36
.
1
2
9
39
.
6
5
0
$2
7
J
l
5

I
M
(1
)

M
t

a
y

n
u

b
y

3
4
.
8
%

1
0

d
8
l

I
d
a
h

l
I
l
l
.
AI
m
e

B
St
t
i

a
n

S
e
Ca
N
o
.

AW
-
l
1
.
(
1

a
n
d
A
V
U
l
l
.
(
l
AI
I
Pa
g

1

o
f
1
\
STIPULATION AND SETTLEMENT
Case Nos. AVU-E-ll-Ol & AVU-G-ll-01
ATIACHMENTC
Electric and Natural Gas Rate Design
Exhibit No. 101
Case No. A VU-E-11-0l/A VU-G-11-01
R. Lobb, Staff
9/09/11 Page 22 of 26
\0

~

n

t
r
--
.

$
:
;
X
~
t
"

~

e
:
--

0

0
"
-
0
"

Z

:
:
-~
O
"
?

Z
;;

~

~
?
(J

$
:
"
:
_
tD

:
:

C
o
tv

,
-
w
t
r
o
i
0-

:
:
tv

i
0\

0
-~6i--Io-
AV
I
T
A

I
J
IO
E
L
E
C
T
R
,

C
A
E

N
O
.

A
W
-
E
-
1
1
~
1
PR
O
E
D

I
N
C
R
E
E

B
Y

SE
E

S
C
H
E
U
L
12

M
O
N
T
H

E
N
E
D

D
E
C
E
M
E
R

3
1
.

2
0
lO
G

o
f

D
o
n
i
)
un No
.
Ty
p
o
t
Se
n
(ë
Ba

T
a
r

B
a

T
a
r

B
u

T
o
t
B
l
l
e
d

G
e
.

!
n
.

T
o
I
l
B
1
1
l
R-

P
r
o
p
o

R
e

T
a
r
i

R
e

a
s

a

%

T
o
t
a
l

R
e
Sc
h
i
.
e

U
n

P
n
i

G
e

U
n

P
r
o

P
a
t

a
t

P
n
i

o
f

S
l
i

G
e

S
c
:
.

9
9

S
c
.

5
9
E
x

S
c

8
8

a
t

P
r
p
ø
Nu

R
a
1
)

I
n
c
s
e

R
a

(
1

I
n
c
,
.
.

R
a
l
!
2
!

R
e
_

I
n
c
s
e

I
n
c

O
e

O
e
e

R
a
(b
)

(
e
)

I
d
)

(
e
)

I
f
)

(
g
)

(
h
)

(
i
)

I
I

(
k
)

(
I

(
m
)
1
Re
s
a
l
1
51
0
0
,
8
0
8
$1
.
1
4
3
$1
0
1
,
9
1.
1
%
$1
0
2
,
2
1.
%
51
,
1
4
3
$4
,
1
3
1
($
2
.
1
3
6
)
($
,
3
$1
0
0
.
1
1
4
2
Ge
.
.
S
8
N
11
.
1
2
$3
2
0
1
13
1
$3
.
5
4
2
1.
1
%
$3
1
,
6
1.
1
%
13
1
$7
8
3
($
($
1
,
4
2
3
)
$3
1
.
3
0
3
ur
g

G
e
.
.

S
e
21
,
2
$5
,
2
$5
$5
,
8
2
3
1.
%
$5
.
9
0
7
1.
1
%
$5
51
.
9
5
($
4
)
1$
3
,
1
5
1
)
$5
.
1
1
6
4
Ex

L
a

G
e
.
.

S
8
n
25
$1
4
,
1
2
1
$1
6
0
$1
4
2
8
1
1.
1
%
$1
5
,
3
1
7
1.
0
%
$1
6
0
$4
7
4
SO
($
1
,
2
3
1
)
$1
4
,
7
2
5
ei
25
$4
2
.
1
2
7
$4
8
$4
2
,
6
1.
%
$4
,
4
4
1
1.
O
$4
7
8
51
.
1
9
2
SO
1$
4
,
l
1
)
$4
.
0
0
6
p.
.
.
.

S
e
r
31
.
3
2
$4
,
_
$5
2
14
,
6
1
1.
%
$4
.
7
1
3
1.
%
$5
$2
($
1
1
)
($
2
4
8
$4
,
7
1
4
7
St
n

&

A
i

U
g
h
1
41
-
4
~
m
~
1.
1
%
Qm
1.
1
%
$3
$1
1
6
l!
~
Ð.
8
To
t
$2
4
7
.
4
3
$2
.
8
$2
0
2
3
1.
1
%
$2
.
6
7
8
1.
1
%
$2
.
8
S8
.
6
9
($
,
2
8
)
($
1
5
,
5
1
7
)
$2
.
4
5
1
(1
)

l
i

A
I

p
æ

r
a

a
d

(
s
e

b
e
o
w
.
(2
)

l
ì

I
I

p
n

n
i

e
d
u
ø
:

S
c

5
9

-

R
8
l

&

l
'
a
m

E
n
e

R
i

A
i

S
c
I

6
6

-

T
8
f

P
_

C
o
A4

S
c
e

9
1
-

E
n

E
f

R
I

A
d
u
s

a
n

S
c

9
9

-

O
e

S
t

I
n
c

T
a
x

A
d
u
s
Pe
n
:
n
t
Pa
GR

I
n
C
A
l
_

T
o
t

C
h
a
n
g
on

B
i
l
l
on

B
l
Ra
n
.
.
Ra
_
In
)
(0
)
1.
%
(2
.
%
)
1.
1
%
(1
.
1
%
)
1.1
%
lt
A
%
)
1.
O
13
.
%
)
1.
O
11
1
%
)
1.
1
%
0.
0
1.
1
%
2.7
%
1.
1
%
12
.
%
)
A1

C
St
o
n

e
n

S
e
i
Ca
N
o
.
A
v
u
1
1
~
1
l
1
A
~
1
1
~
Av
i
s
I
Pa
g

1

o
t
4
~
~

(
1

m
o'

~

~
\0

t
"
'
'
'
'

:
i
;:

0

t
D

&
:
_
c
r

Z

_
.
~c
r

0

.
.
~
r
n

~

~
(J
S
-
~
'
tD
:
:

-
N
0
Vl

1
-
o
~
..

-
N
-
0\

i
o ~i9--Io-
AV
I
A

U
T
I
E
S
ID
H
O

G
A

C
A
S
E

N
O
.

A
V
U
-
G
-
1
1
.
o
1
PR
O
P
O
S
E
D

I
N

B
Y

S
E
R
E

S
C
E
D
U
U
12

M
O
N
T

E
N
D
E
D

D
E
E
M
E
R

3
1
.

Z
0
1
0
(O

o
f

Do
.
.
)
Ba

T
8
n

B
a

T
_

_

T
o
t

B
i
l
l

T
o
l

B
i
l
l

"
-

.
.
Re
w
n

P
r

P
r
i

R
-
-

T
l
I

R
-
.

T
o
l
a

T
o
t

T
o
t

T
o
l

R
-
-

G
A
e
I
_
.
.

T
o
t
l
n
.
.
Li

T
y
p
c
i

S
c

U
n
d
P
r

G
e

P
G
G
a
s
C
o

U
n
d
P
r
s
e

p
e
n

B
l
P
_

G
e

S
c
1
9
9
-
O
S
I
T

S
c
t
1
9
1
-
O
S
M

S
c
l
5
5
-
A
m

B
l
P
n

o
n
B
l
l
l

o
n
B
l
&
S
I

l
Y

B
i

I
i

I
.

B
I

I
I

B
I

J
i

J
i

I
2

J
i

B
I

R
m
l
!

(
2
)

B
e
(a
)

(
b
)

(
e
)

(
d
)

(
e
)

(
f

(
g
)

(
h
)

(
I
)

l
i
)

(
k

(
I

(
m
)

e
n
)

1
0
)
1
G
e
S
e

1
0
1

$
5
4
,
4
9

$
8
5

(
$
1
.
9
5

5
5
,
3
8

1
.
%

$
5
3
,
1
1
2

$
8

$
3

(
$
2
0
7
1
)

5
2
.
5
4

$
5
,
8
7
3

1
.
1

(
0
.
%
1
2
L
8
G
e
S
e

1
1
1

$
1
5
,
4
1
4

5
2
4
0

(
$
6

$
1
4
.
9
6

1
.
1

5
1
4
,
8
5

$
2
4

$
6

(
S
7
1

S
9

$
1
4
,
5
7

1
.
1

(
1
.
1
)
3
I
n
l
b
l

S
e
r

1
3
1

5
2
5

$
4

(
$
1
9
)

$
2
6

1
.
1

$
2
5
6

$
4

$
1

(
$
1
4
)

$
0

S
2

1
.
7
'

(
1
'
'
'
'
'
1
4
T
r
a
S
e

1
~

S
3

$
5

S
O

5
3
7

1
.
%

$
3

$
5

$
5

S
O

$
0

5
3
7

1
.
%

:
i
5
S
p
e

C
o

1
~

æ

J
!

J
!

æ

O
.
l

æ

J
!

J
!

m

m

æ

l
I

O
.
l
6
T
c
i

$
7
0
,
6
0

$
1
.
0
0

(
$
2
.
6
1
)

$
6
.
0
3

1
.
%

$
f
6
4

5
1
.
1
0
0

5
4
7
0

(
$
2
8
7
1
)

5
3
.
4
4

5
6
,
1
1
9

1
.
%

(
0
"
1
(1
)

~

S
c

1
5
0

.

P
i

G
a

C
o

A
d
(2

i
n
c

S
C
e

1
5
5

.

G
a

R
e

A
d

S
c
h

1
9
1

.

E
n
e

E
l

R
l
d

A
d

a
n

S
c

1
9
9
-

e
-

S
_
i
n

T
_

A
d
At

C
Sl

a
n

S
e
Ca

N
o
.

A
V
l
.
l
1
.
.

a
n
A
~
1
1
.
(
1
Av
i
Pa
g

3
ci
4
AVISTA UTILITES
IDAHO GAS, CASE NO. AVU-G.11-Ð1
PRESENT AND PROPOSED RATE COMPNeNTS BY SCHEDULE
General Propoe Oter Propoe Propo
Baae Prese Prent Rae PGA-G..C~t Ret BIllng B..B!Rat AdU2) BHUng_!!ß!Chinge (2)B!BI
(a)(b)(c)' (d)(e)(f)(g)(h)(I)
G.nera Servic' Scheule 101
Bale Charg $4.00 $4.00 $0.25 $4.25 $425
Uaa Chae:Aßthas $0.94102 (10.2549)10.91553 $0.006 ($0.03106)$0.01803 $0.9006 $0."652
Large Generl Servic - Schedule 111
Uaag. Charge:
Firat 200 thenna $0.96103 ($0.0295)$0.93198 $0.00272 ($0.03106)$0.0070 $0.81334 $Q.3268
20. 1.000 lhes 10.82865 (10.02905)10.790 $0.00689 ($0.03106)$0.000 $0.78713 $G.06
1.00 .10.000 thea $0.75404 (10.02905)$0.72499 $0.00783 ($0.03106)$0.00870 $0.71125 $0.7301
Allov 10.000 tha 50.70488 (10.02905)50.67583 $0.00 ($0.03106)$0.00870 $0.86127 $0.68062
Minimum Chage:
pe mo $79.03 $79.03 $1.8 $80.59 $80.9
petham $0.56587 ($0.02905)10.5362 ($0.00)($0.03108)$0.008 $0.51038 $0.52973
Interruptble Service. Scheule 131
Uaage Charg:
All Therma 50.62748 ($0.04357)10.58391 $0.0071 ($0.0379)$0.01903 $0.6H8 $0.59423
Tnin'aorttlon Service' ScheslY. '46
Baale Charge 1200.00 $200.00 $25.00 $225.00 $22$.0
Usae Charg:
All Thams 10.10559 ($0.00159)10.104 $0.00112 $0.00159 $0.10671 SO.10671
(1) Include Sclule 150 - Purcas ed Gaa Coat Adjustmet
(2) Includ Sclule 155 - Gaa Rate Adjustment, Schedule 191 . Eney Effciency Rider Adjtment and Scheule 199 - Deerre State Incoe
Tax Adjustme
Attchmet C
Stipula and S ett
Can No. AW.E.11. 01 and AVU-G.11..1
Avist
Pag 4 of4
Exhibit No. 101
Case No. AVU-E-11-01/A VU-G-11-01
R. Lobb, Staff
9/09/11 Page 26 of 26
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 9TH DAY OF SEPTEMBER 2011,
SERVED THE FOREGOING DIRECT TESTIMONY OF RANDY LOBB IN SUPPORT
OF THE STIPULATION AND SETTLEMENT, IN CASE NOS. AVU-E-II-01_AVU-G-
11-01, BY E-MAILING AND MAILING A COpy THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
DAVID J MEYER
VP & CHIEF COUNSEL
AVISTA CORPORATION
PO BOX 3727
SPOKANE WA 99220-3727
E-MAIL: david.meyer(favistaeorp.eom
BRAD M PURDY
ATTORNEY AT LAW
2019N 17TH STREET
BOISE ID 83702
E-MAIL: bmpurdy(fhotmaiL.eom
DR DON READING
6070 HILL ROAD
BOISE ID 83703
E-MAIL: dreading(fmindspring.eom
BENJAMIN J OTTO
IDAHO CONSERVATION LEAGUE
710 N 6TH ST
BOISE ID 83702
E-MAIL: botto(fidahoeonservation.org
LARRY CROWLEY
ENERGY STRATEGIES INSTITUTE INC
5549 S CLIFFSEDGE AVE
BOISE ID 83716
E-MAIL: erowleyla(ßaoL.eom
KELL YO NORWOOD
VP STATE & FED REG
AVISTA CORPORATION
PO BOX 3727
SPOKANE WA 99220-3727
E-MAIL: kelly.norwood(ßavistaeorp.eom
PETER J RICHARDSON
GREGORY MADAMS
RICHARDSON & O'LEARY
PO BOX 7218
BOISE ID 83702
E-MAIL: peter(ßriehardsonandoleary.eom
greg(friehardsonandoleary.eom
E-MAIL ONLY:
MARV LEWALLEN
CLEARWATER PAPER CORP
E-MAIL:
marv.lewallenßYclearwaterpapercorp.com
DEAN J MILLER
McDEVITT & MILLER LLP
420 W BANNOCK ST
PO BOX 2564 (83701)
BOISE ID 83702
E-MAIL: joe(ßmedevitt-miler.eom
.~
CERTIFICATE OF SERVICE