20120727Decision Memo.pdf

DECISION MEMORANDUM- 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: JULY 27, 2012

SUBJECT: AVISTA’S APPLICATIONS TO ELIMINATE THE ANNUAL
COMPLIANCE FILING REQUIREMENT FOR ASSET RETIREMENT
OBLIGATION (ARO) ESTABLISHED IN ORDER NO. 29962, CASE
NOS. AVU-E-12-05 AND AVU-G-12-04

On June 29, 2012, Avista Corporation (hereinafter “Avista” or “Company”)
submitted dual Applications seeking a Commission Order authorizing the Company to
discontinue its annual compliance filing requirement established in Order No. 29962 to submit
“all journal entries made under the requirements of [Statement of Financial Accounting
Standards] SFAS 143.” Application at 1.
APPLICATIONS
Avista states that “in Order No. 29962, the Commission directed the Company to
record regulatory assets or liabilities associated with the implementation of . . . SFAS 143.” Id.
Attached to its Application, Avista included three copies of its 2011 SFAS 143 annual
compliance filing. Id.
The Company stated that it removed the Asset Retirement Obligation (ARO)
transactions from the monthly Results of Operations. Id. These transactions are “not included in
the Company’s earnings or in any rate request in the Company’s general rates cases.” Id. Avista
notes that the journal entries are “routine in nature” and that the Company has made the
“compliance filings for the past five years.” Id.
DECISION MEMORANDUM- 2
Finally, Avista remarked that it will continue to “maintain the same records regarding
the ARO transactions and would have them available to Staff and any other party upon request.”
Id.
COMMISSION DECISION
Does the Commission wish to process Avista’s Applications through Modified
Procedure with a corresponding 21-day comment period?

M:AVU-E-12-05_AVU-G-12-04_np