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HomeMy WebLinkAbout20140715Joint Motion.pdfDavid J. Meyer, Esq. Vice President and Chief Counsel of Regulatory and Governmental Affairs Avista Corporation l4l I E. Mission Avenue P.O.Box3727 Spokane, Washington 99220 Phone: (509) 495-4316, Fax: (509) 495-8851 IN THE MATTER OF THE APPLTCATION OF AVISTA CORPORATION TO INITIATE DISCUSSIONS WITH INTERESTED PARTIES ON AN EXTENSION OF THE EXISTING RATE PLAN. R=i I i\': i] 20lh JUL l5 Al{ lCI: 09 It;A::'.i i .'i'".' '' t,rl I LlTi E.j j ilt,,,;l ri J i L' i'' ) ) ) ) ) CASENo. AVU-E-14-05 CASE No. AVU-G-14-01 JOINT MOTION FOR APPROVAL OF STIPULATION AI\D SETTLEMENT COMES NOW, Avista Corporation ('oAvista" or "Company") on behalf of the undersigned Parties, and hereby moves the Commission for an Order accepting the Settlement Stipulation filed herewith. RP 56;272;274. This Motion is based on the following: l. On March 24, 2014, in compliance with the minimum sixty-day notice requirement of Rule 122 of the IPUC Rules of Procedure "Notice of Intent to File a General Rate Case," Avista notified the Idaho Public Utilities Commission that the Company intended to file a combined electric and natural gas general rate case on or after June 2, 2014. 2. In Case Nos. AVU-E-12-08 and AW-G-12-07, the Commission previously approved a settlement that provided for a rate plan that set base rates for a period extending through January 1,2015. 3. Between May 22, 2014 and May 27, 2014, Avista had informal discussions, individually, with Commission Staff, Clearwater Paper Corporation, Idaho Forest Group, Community Action Partnership Association of Idaho (CAPAI), Idaho Conservation League, and the Snake River Alliance, representing all intervenors and interested parties in the Company's last general rate case (Case Nos. AVU-E-12-08 and AW-G-12-07). Joint Motion for Approval of Stipulation - AVU-E-I4-05 & AVU-G-14-01 Page I 4. As a part of those informal discussions, Avista explained a proposal to extend the existing rate plan approved by the Commission in the Company's last general rate case, and avoid the need for Avista to immediately file a general rate case that would otherwise take effect on or after the expiration of the existing rate plan on January 1,2015. All of the Parties expressed a willingness to engage in settlement discussions for the purpose of exploring an extension of the existing rate plan. 5. On May 30,2014, Avista filed a request with the Commission for approval to initiate settlement discussions with the Parties. On June ll, 2014, the Commission issued Order No. 33051 and formally notified the public and interested Parties of Avista's intent to engage in settlement discussions, pursuant to Rule 273. The Order set a settlement conference for June 25, 2014, so the Parties could discuss the Company's desire to avoid filing a general rate case in2014, and extend the existing rate plan for an additional period of time. 6. On June 25,2014, the Parties (signatories to the attached Stipulation) met for the purpose of exploring a settlement that would extend the existing base rates for an additional year. The Parties were able to reach agreement among themselves on the terms and conditions set forth in Attachment l. Under the terms of the Stipulation, Avista would not seek to implement a change in base rates prior to January 1,2016. In addition, under the Stipulation, the increases in rates that would otherwise occur on January l, 2015, resulting from the expiration of the BPA Credit (13%), and the PGA Deferral Credit (1.7o ), will not occur, but will be replaced with other credits or rebates to customers. 7. The Parties recommend that the Commission approve the Stipulation in its entirety, without material change or condition, pursuant to Rule 274. Joint Motion for Approval of Stipulation - AVU-E- 1 4-05 & AVU-G- I 4-0 I Page2 8. The Parties respectfully request that the Commission consider the Motion, the Stipulation, and the written comments filed in support of the Stipulation. Written comments in support of the Stipulation will be filed by the Parties on or before August 15, 2014, and the Parties request that this Motion and Stipulation be addressed by Modified Procedure under Rule 201, et seq. 9. As noted in the Stipulation, the Parties agree that the Stipulation is in the public interest and that all of its terms and conditions are fair, just and reasonable. NOW, THEREFORE, the Parties respectfully request that the Commission issue orders in Case Nos. AVU-E-14-05 and AVU-G-14-01: l. Directing that written comments in support or opposition to the proposed Stipulation and Settlement be filed on or before August 15,2014; 2. After reviewing the written comments, grant this Joint Motion and accept the Stipulation (Attachment l), in its entirety, without material change or condition; and 3. Authorize the Company to implement such revised tariff schedules as atre necessary to effectuate the terms of the Stipulation. *4 Respectfully submitted this ll' {ayof July 2014. Avista Corporation Yy, t- --rr / -favid J.'Meyer Attorney for Avista Corporation Idaho Public Utilities Commission Staff By: Donald L. Howell,II Deputy Attorney General Joint Motion for Approval of Stipulation - AW-E- I 4-05 & AVU-G- l 4-0 I Page 3 t. Tho Pardcs reryeclffrlly rtqtrcS tht tho Commission cmsidcr thc Motion, the Stipulatlon, and thc mith oonmcntr fild h $Dport of the Stipnlcio. Xrrittcn cotruncNils in snpport of thc Stiprldion will bc fild by thc Pardcs on m bdorr August 15, 2014, and ttc Pamies rcquost &at thb Motion ud Stiprlation bc ad&csscd by Modificd Proocdre undcr Rule 20I, gl-gef. 9. As notod in thc Stipuhtion, thc Partics agrcc that&c Stipulcim is in thc public intcrcst and thc dl of ig tcrms and condltims arc frir,Just md reasonablc. NOW, II{EREFOR$ thc Panics rcspcctfully rcquost that thc Commission issuc ordem in Case Nos. AW-EI4-05 md AW-G-ltH)l : l. Dlrccting that wriucn commmts in support or opposition to the proposcd Stipulation urd Scttlcrncot bc filed on or bcforc Augrrst 15,2014; 2. Aftcr rwiewing thc writtcn commants, grant this Joint Motion and acccpt thc Stipulation (Attaohmcnt l), in its artircty, without masial changc or cordition; and 3. Autborize tb Compmy to implcmart such rwiscd tsriff schedules as art nocessary to cfrostustc the tcrms of the Stipulation. Rcspectfirlly submittcd this _ day of July 2014. Avigta Corporetion Bvi David J. Mcycr Attorncy fm Avista Corpormion Dcputy Attornoy Gcncral Joint Motion forApproval of Stipulation-AVLJ-BI4-O5 & AVI.J€-14-01 Page 3 Clearwater Paper By: Idaho Attomey for Clcarwatcr Paper'TuJto- 26('/ Conservation kague Idaho Forcst Group By: Dean J. Millsr Attomey forldoho Forest Crroup LLC Snake River Alliance By: Ken Miller Clean Energy Program Director By: Bcnjamin J. Otto Attorney for ICL Community Action Partrrership Association Of Idaho (CAPAD By: Brad Purdy Attomey for CAPAI Joint Motion for Approval of Stipulation - AW-E-14-05 & AVU-G-14-01 Page 4 By: Clearurater Paper Corporation Idaho Peter Richardson Attorney for Clearwater Paper Consorvation lrague By: BeqiaminJ. Otoo Attorney forICL Attorney for Idaho Forest Crroup LLC RiverAlliance KenMiller Clean Energy Progrm Director Snake By: Community Action Partn€rship Assooiation Ofldaho (CAPAD By: BradPudy Attorney for CAPAI Joint Motion forApproval of Stipulation-AW-E-14-05 & AVU-G-14-01 Page 4 By: Clearwater Paper Corporation Peter Richardson Attorney for Clearwater Paper ldaho Forcst Choup By Dcan J. Miller Attorney for Idaho ForestGroup LLIC Snake RiverAlliance By: KenMiller Clean Energy Prograur Director Idaho Consepption League,r, b"rK BenjaminJ. Otto Attorncy for ICL Community Action Parhership Association Of Idaho(CAPAD By: Brad Purdy Attomey for CAPAI JointMotion forApproval of Stipulation -AW-E:14-05 & AVU-G-I+01 Page4 Btr Clearwator Papcr Corporation Idaho Pster Richardson Attorney for Clearwater Paper Consorvation Irague Benjamin J. Otto Attorney for ICL Idaho Forest Group By: Dean J. Miller Attomey for ldatro Forest Group LI,C Snake River Alliance /'Byz &+c^-hZ4-<Z* Ken Miller Clean Energy Program Director By Community Action Partnership Association (of Idatp (CAPAI) By: Brad Purdy Attomey foTCAPAI Joint Motion for Approvel of Stipulation - AW-E-14-05 & AW-G-14-01 Page 4 Clearuater Paper Corporation By: PstcrRichardson Attorney for Cleanvarcr Pryer Idaho Conserrrdion t^eague By: Beirjamin J. Otto Attorney fonICL Commrmity Action Partnership Association Of Idaho (CAPA[) Idaho Forest Group D@nJ.lvfiller Attorney for Idaho For6t Cronp LLC Snake RiverAlliance Byt Ken Miller Clean Enerry Progrur Direc{or By: Brad Pmdy Attomey for CAPAI Joim Motion for Approval of Stipuldion - AW-E-14-05 & AW-G-14-01 AVU-E-14-05 & AVU-G-14-01 Joint Motion for Approval of Stipulation Attachment I David J. Meyer, Esq. Vice President and Chief Counsel for Regulatory and Governmental Affairs Avista Corporation l4l I E. Mission Avenue P.O.Box3727 Spokane, Washington 99220 Phone: (509) 495-4316, Fax: (509) 495-8851 Donald L. Howell,II Deputy Attorney General Idaho Public Utilities Commission Staff P.O. Box 83720 Boise, ID 83720-0074 Phone: (208) 334-0312,Fax: (208) 334-3762 Bar No. 3366 IN THE MATTER OF THE APPLICATTON ) OF AVISTA CORPORATION TO INITIATE ) DISCUSSIONS WITH INTERESTED ) PARTIES ON AN EXTENSION OF THE ) EXISTING RATE PLAN. ) BEFORE THE IDAHO PUBLIC UTILITIES COMIVtrSSION CASENo. AVU-E-14-05 CASE No. AVU-G-14-01 STIPULATION ANI) SETTLEMENT This Stipulation is entered into by and among Avista Corporation, doing business as Avista Utilities ("Avista" or "Company"), the Staff of the Idaho Public Utilities Commission ("Staff'), Clearwater Paper Corporation ("Clearwater"), the Idaho Forest Group, LLC ("Idaho Forest"), the Idaho Conservation League ("[CL"), the Community Action Partnership Association of Idaho ("CAPAI"), md the Snake River Alliance. These entities are collectively referred to as the "Parties", and represent all parties in the above-referenced cases that participated in settlement discussions. The Parties understand this Stipulation is subject to approval by the Idaho Public Utilities Commission ("[PUC" or the "Commission"). Stipulation and Settlement - AVU-E-14-05 & AVU-G-14-01 Page I TNTRODUCTION A. The terms and conditions of this Stipulation are set forth herein. The Parties agree that this Stipulation represents a fair, just and reasonable compromise of all the issues raised in the proceeding and that this Stipulation and its acceptance by the Commission represents a reasonable resolution of the issues. The Parties, therefore, recommend that the Commission, in accordance with R':tlJe 274, approve the Stipulation and all of its terms and conditions without material change or condition. B. On March 24, 2014, in compliance with the minimum sixty-day notice requirement of Rule 122 of the IPUC Rules of Procedure "Notice of Intent to File a General Rate Case," Avista Corporation provided notice to the Idaho Public Utilities Commission that the Company intended to file a combined electric and natural gas general rate case on or after June 2,2014. C. In Case Nos. AVU-E-I2-08 and AVU-G-12-07, the Commission previously approved a settlement that provided for a rate plan that set base rates for a period extending through January 1,2015. D. Between May 22 and May 27, 2014, Avista had informal discussions, individually, with Commission Stafl Clearwater, Idaho Forest Group, CAPAI, ICL, and the Snake River Alliance, representing all intervenors and interested parties in the Company's last general rate case (Case Nos. AVU-E-12-08 and AVU-G-12-07). E. As a part of those informal discussions, Avista explained a proposal to extend the existing rate plan approved by the Commission in the Company's last general rate case, and avoid the need for Avista to immediately file a general rate case that would otherwise take effect on or after the expiration of the existing rate plan on January l, 2015. All of the Stipulation and Settlement - AVU-E-14-05 & AVU-G-14-01 Page2 parties expressed a willingness to engage in sefflement discussions for the purpose of exploring an extension of the existing rate plan. F. On May 30,2014, Avista filed a request with the Commission for approval to initiate settlement discussions with the Parties. On June 11,2014, the Commission issued Order No. 33051 and formally notified the public and interested parties of Avista's intent to engage in settlement discussions, pursuant to Rule 273. The Order set a settlement conference for June 25, 2014, so the Parties could discuss the Company's desire to avoid filing a general rate case l-rl.2014, and extend the existing rate plan for an additional period of time. G. On June 25, 2014, the Parties (signatories to this Stipulation) met for the purpose of exploring a settlement that would extend the existing base rates for an additional year. The Parties were able to reach agreement among themselves on terms and conditions such that Avista would not seek to implement a change in base rates prior to 2016. In addition, under the Stipulation, the increases in rates that would otherwise occur on January 1,2015, resulting from the expiration of the BPA Credit (1.3%), and the PGA Deferral Credit (1.7oh), will not occur, but will be replaced with other credits or rebates to customers. II. BACKGROUNI) The current and existine Idaho Rate Plan from Case Nos. AY[J-E-12-08 and AVII-G-12-07 contains the followins elements: Rate Freeze - The current Avista Rate Plan in Idaho provides for no new electric or natural gas general rate increases to become effective prior to January I . 201 5. BPA Credit - Avista's electric customers are currently receiving a rebate of $3.865 million (1.3% on Schedule 97), related to the prior settlement with the Bonneville Power Administration ("BPA"), for the 15-month period October 1,2013 through A. B. Stipulation and Settlement -AVU-E-14-05 & AVU-G-14-01 Page 3 December 31,2014. Retail electric rates would increase l.3o/o effective January l, 2015 with the expiration of this rebate. C. PGA Deferral Credit - Avista's natural gas customers are currently receiving a rebate of $1.55 million (1.7% on Schedule 197), related to a Purchased Gas Cost Adjustment ("PGA") deferral credit balance, for the l5-month period October 1, 2013 through December 31,2014. Retail natural gas rates would increase l.7Yo effective January I , 2015 with the expiration of this rebate. D. 2013 Earnings Test - In the Company's last general rate case, the Company agreed to an after-the-fact earnings test, where it would refund to customers one-half of any earnings in excess of the 9.8% return on equity ("ROE"), on a consolidated basis for electric and natural gas, for each of the years 2013 and2014. For the 2013 earnings test, Avista deferred a benefit of $3.914 million for electric customers, and $444,000 for natural gas customers. E. Natural Gas Energy Efficiency Funding Balance - Avista currently has a Schedule l9l Natural Gas Energy Efficiency funding balance due customers of $653,000 (the current Schedule 191 tariff rate is zerc and no energy efficiency projects are ongoing). III. TERMS OF THE STIPULATION AND SETTLEMENT A. Avista would not file an electric or natural gas general rate case in20l4, and would not file for new electric or natural gas base rates to be effective prior to January l, 20rc.1 B. The BPA Credit and the PGA Deferral Credit would be replaced using other deferral balances such that customers would not experience rate increases effective January 1,2015. l. The $653,000 Schedule l9l Natural Gas Energy Efficiency funding balance and the $444,000 2013 natural gas earnings test deferral would be used to replace the l.7Yo PGA Deferral Credit ($1,179,000) on natural gas Schedule 197 from January I , 2015 to December 3l , 2015, which would result in no rate increase for customers January l, 2015. The language on Schedule 197 would be revised to describe the new rebate. 2. $3.201 million of the $3.914 million 2013 electric earnings test deferral would be used to replace the l.3o/o BPA credit on electric Schedule 97 from January 1,2015 to December 31, 2015, which would result in no rate increase for I Accordingly, the Parties agree that Avista will not file another electric or natural gas general rate case before May 31, 2015, and while it may request an effective date earlier than January 1,2016, final approved new rates will not go into effect prior to January l, 2016. This does not apply to tariff filings authorized by or contemplated by the terms of the Power Cost Adjustment (PCA), or the Purchased Gas Cost Adjustment tariff (PGA), or other miscellaneous filings. Stipulation and Settlement - AVU-E-14-05 & AVU-G-14-01 Page 4 C. customers January 1,2015. The language on Schedule 97 would be revised to describe the new rebate.3. The remaining $713,000 of the 2013 earnings test deferral would be credited to customers through the Power Cost Adjustment ("PCA") over a one-year period beginning October l, 2014. 4. Any differences between the estimated 2015 electric and natural gas credits, and the actual amounts rebated to customers through December 31,2015 on Schedules 97 and 197, would be added to, or subtracted from, the PCA and PGA deferral balances, respectively. Project Compass2 - Eighty-percent (80%) of the revenue requirement associated with Project Compass during 2015, beginning the month the Project goes into service, would be deferred for recovery in a future proceeding. The 80o/o figure was arrived at through negotiation for calendar year 2015 only, and is unrelated to any assessment or determination of the prudence of the Project. The deferral is due, in part, to the uncertainty of the timing of the in-service date for the project. In its next general rate case, Avista will address the prudence of Project Compass, and request full recovery of the cost of the project on a going-forward basis.' CS2/Colstrip O&M Amortization - The three-year amortization of the 2013 Coyote Springs 2/Colstrip O&M defenal balance of $1.253 million ($418,000 per year) would begin January l,2016, instead of January l,2O$.4 2 Project Compass involves the replacement of Avista's legacy Customer Information System, which is composed of three highly-connected applications, which include:o Customer Service Svstem - this application supports the traditional utility business functions of meter reading, customer billing, payment processing, credit, collections, field requests and customer service orders;o Work Management Svstem - this application is used to create orders for service and emergency calls and for construction jobs for customers and Company operations; ando Electric & Gas Meter Application - this application hosts the data for the Company's in-service electric and gas meters. Together, these three applications have been connected over time with many other applications and systems required to conduct all aspects ofAvista's customer service, and natural gas and electric business operations. ' Eighty-percent of the estimated 2015 electric revenue requirement is $2.663 million (Idaho share), plus $0.637 million for natural gas (Idaho share), for an estimated total of $3.3 million. There would be no carrying charge on the deferral. a Per Order No. 32371 (Case No. AVU-E-I1-01), the Company was allowed to defer changes in O&M costs related to its Coyote Springs 2 (CS2) natural gas-fired generating plant located near Boardman, Oregon, and its fifteen (15) percent ownership share ofthe Colstrip 3 & 4 coal-fired generating plants located in southeastern Montana in order to address the large variability in year-to-year O&M costs, beginning in 201l. The Company compares actual, non-fuel, O&M expenses for the Coyote Springs 2 and Colstrip 3 & 4 plants with the amount ofexpenses authorized for recovery in base rates in the applicable deferral year, and defers the difference from that currently authorized. The deferral occurs annually, with no carrying charge, with deferred costs being amortized over a three-year period, beginning in January of the year following the period costs are deferred. In Case No. AVU-E-12-08, the beginning of the amortization of the 2013 defenal was delayed from 2014 to 2015. This Stipulation delays the beginning of the amortization of the 2013 deferral for one year from 2015 to 2016, consistent with the one-year extension of the rate plan. The amortization of any deferral from 2014 will begin in 2015. D. Stipulation and Settlement - AVU-E-14-05 & AW-G-14-01 Page 5 E. Earnings Test - Any earnings test deferral for 2014 would be set aside to support the one-year extension of the Rate Plan as explained below: l. An ROE deadband would be established for 2015 between the authorized ROE of 9.8Yo and,9.5%o. 2. During the calendar year 2015, if Avista eams less than a 9.5% ROE, on an actual consolidated basis for electric and natural gas, any earnings test deferral balance from 2014 would be used to move Avista's earnings up to, or up toward, the 9.5o/o ROE on an actual consolidated basis.3. Any 2014 earnings test deferral balance that is not needed to achieve a 9.5Yo ROE for 2015, e.g., Avista earns more than 9.5o/o ROE during 2015, would continue to be held as a deferral for future credit to customers.4. During the 2015 calendar year, if Avista earns more than a 9.8% ROE, on an actual consolidated basis for electric and natural gas, Avista would defer, for future rebate to customers, 50oZ of any earnings above the 9.8%o. Included as Attachment A to this Stipulation is a schematic of the components of the Rate Extension Plan. F. Meet and Confer Regarding Low-Income Issues: On or before October l, 2014, Avista will meet with Commission Staff and other interested Parties to this case to review the following issues: 1. Cost-effectiveness and appropriate funding of natural gas and electric demand- side management ("DSM") programs for low-income customers: Prior to the meeting, Avista will provide the Parties with the 2013 DSM Impact Evaluation prepared by its consultant, Cadmus, as well as current information pertaining to the cost-effectiveness of its low-income programs in Idaho. ln addition, Avista will provide its analysis of when and under what conditions natural gas DSM programs will become cost-effective and program funding resumes.2. Electric and natural gas usage by low-income customers in Avista's Idaho service territory and potential rate-design implications for such customers: Prior to the meeting, Avista will provide usage data for its ldaho residential customers for 20ll-2013. Avista will consult with the Parties to identify their specific data requirements. 3. No later than December l, 2014,the Parties will determine if a formal filing with the Commission is warranted based upon review of low-income DSM program cost-effectiveness and low-income usage. Stipulation and Settlement -AVU-E-14-05 & AVU-G-14-01 Page 6 IV. OTHER GENERAL PROYISIONS A. The Parties agree that this Stipulation represents a compromise of the positions of the Parties in this case. As provided in Rule 272, other than any comments filed in support of the approval of this Stipulation, and except to the extent necessary for a Party to explain before the Commission its own statements and positions with respect to the Stipulation, all statements made and positions taken in negotiations relating to this Stipulation shall be confidential and will not be admissible in evidence in this or any other proceeding. B. The Parties submit this Stipulation to the Commission and recommend approval in its entirety pursuant to Rule 274. Paties shall support this Stipulation before the Commission, and no Party shall appeal a Commission Order approving the Stipulation or an issue resolved by the Stipulation. If this Stipulation is challenged by any person not a party to the Stipulation, the Parties to this Stipulation reserve the right to file testimony, cross- examine witnesses and put on such case as they deem appropriate to respond fully to the issues presented, including the right to raise issues that are incorporated in the settlement terms embodied in this Stipulation. Notwithstanding this reservation of rights, the Parties to this Stipulation agree that they will continue to support the Commission's adoption of the terms of this Stipulation. C. If the Commission rejects any part or all of this Stipulation or imposes any additional material conditions on approval of this Stipulation, each Party reserves the right, upon written notice to the Commission and the other Parties to this proceeding, within 14 days of the date of such action by the Commission, to withdraw from this Stipulation. In such case, no Party shall be bound or prejudiced by the terms of this Stipulation, and each Stipulation and Settlement - AVU-E-14-05 & AVU-G-14-01 PageT Party shall be entitled to seek reconsideration of the Commission's order, file testimony as it chooses, cross-examine witnesses, and do all other things necessary to put on such case as it deems appropriate. D. The Parties agree that this Stipulation is in the public interest and that all of its terms and conditions are fair, just and reasonable. E. No Party shall be bound, benefited or prejudiced by any position asserted in the negotiation of this Stipulation, except to the extent expressly stated herein, nor shall this Stipulation be construed as a waiver of the rights of any Party unless such rights are expressly waived herein. Execution of this Stipulation shall not be deemed to constitute an acknowledgment by any Party of the validity or invalidity of any particular method, theory or principle of regulation or cost recovery. No Party shall be deemed to have agreed that any method, theory or principle of regulation or cost recovery employed in arriving at this Stipulation is appropriate for resolving any issues in any other proceeding in the future. No findings of fact or conclusions of law other than those stated herein shall be deemed to be implicit in this Stipulation. F. The obligations of the Parties under this Stipulation are subject to the Commission's approval of this Stipulation in accordance with its terms and conditions and upon such approval being upheld on appeal, if any, by a court of competent jurisdiction. G. This Stipulation may be executed in counterparts and each signed counterpart shall constitute an original document. Stipulation and Settlement - AVU-E-14-05 & AVU-G-14-01 Page 8 iq DATED this lllday of July 2014. ,r, e //- By: nafid J. Meyer Avista Corporation Idatro Public Utilities Commission Staff Donald L. Howell, II Attorney for Avisa Corporation Deputy Attorney General Clearwater Paper Corporation Idaho Forest Group By: Peter Richardson Dean J. Miller Attorney for Clearwater Paper Attorney for ldaho Forest Group LLC Idaho Conservation lrague Snake River Alliance By: By:By: Community Action Partnership Association Of ldaho (CAPAI) By: Brad Purdy Attomey foTCAPAI Ken Miller Clean Energy Program Director Benjamin J. Otto Attorney for ICL Stipulation and Settlement -AW-E-14-05 & AW-G-14-01 Page 9 DATtsDthb_day of July 2014. Avista Corpordon By:-- Amrncy for Aviaa Coreordon Clcarrvatcr Papo Corporation By: Petcrruenedsqr Atbrncy for Clcarumcr Papo Idrho Coscrvdiqr l^caguc By: Bcnjmin J. Otto Attorncy for ICL Idaho Forcst Gtonp Dcan J. Millcr Attomcy for Iddro Forcgt &oup LI,C Snalrc RivcrAlliancc By: KcnMillcr Clcan Encrry Prcgram Dircctor BYI Community Ac{ion Partncmhip Associatiqr Of ldaho (CAPAD By: Brad Purdy Attorncy foTCAPAI Dcprrty Attorncy Gcncral Stipulation and Satlcmcnt -AVI.J-EI +05 &,AW-G-14-01 Page 9 w DATEDthis P dayofJuly2014. Avista Corporation By: David J. Meyer Attomey for Avista Corporation Attorney for Clearwater Paper Conservation [rague Bei{amin J. Otto Attorney for ICL Idatro Publio Utilitics Commission Staff By: Donald L. Howell, il Deputy Attorney General Idatro Forost Crroup By: Idaho Community Action Parhership Association Of Idatro (CAPAI) By: Brad Purdy Attomey for CAPAI Dean J. Miller Atiorney for Idaho Forest Group LLC Snake River Alliance By: Ken Miller Clean Encrgy Progxam Dircctor By: Stipulation and Settlem€nt -AVU-E14-05 & AWC-I4{I Page 9 Idaho DATED this _ day of July 2014. Avista Corporation By: DavidJ. Meyer Attomey for Avista Corporation Clearwater Paper Corporation By: Peter Richardson Attorney for Clearwater Paper Conservation League Idaho Public Utilities Commission Staff By: Donald L. Howell, tr Deputy Attorney General Snake River Alliance Ken Miller Clean Energy Program Director By:By: Benjamin J. Otto Attomey forICL Community Action Parhership Association Ofldaho (CAPAI) By Brad Purdy Attomey forCAPAI Attorney forldaho ForestGmup LLC Stipulation and Settlement - AVU-E-14-05 & AW-G-14-0.1 Page 9 DArED *, U(^rof Juty 2014. Avista Corporation By DavidJ. Meyer Attomey for Avista Corporation Clearwater Paper Corporation By Peter Richardson Attorney for Clearwater Paper Idaho Public Utilities Commission Staff By: Donald L. Howell, II Deputy Attorney General Idaho Forest Group By: ldaho Conserrration League Snake RivcrAlliance By: Benjamin J. Otto Attorney for tCL Community Action Partnership Association Ofldaho (CAPAI) By Brad Purdy AttomeyforCAPAI Dean J. Miller Attorney forldaho Forcst Group LLC KenMiller Clean Energy Frogram Director Stipulation and Settlement - AVU-E-t+os & AW-G-14-01 Page 9 . By:- I Oavid J. Meycr By: Donqls!_tHowell.ll Attomey for Avista Corporation Depuf Afiomcy General Clearwater Paper Corporation Idaho Forest Group By:By: DATED this - day of July 2014. Avista Corporation Idaho Public Utilitics Cornmission Staff Dcan J. Mllcr Attorwy for ldsho Forcst0roup LLC -.., . i, Snalre River Alliance .. '. . ' ev, &-^3a.2-d.1) Clean Energy Proddm Direc.tor Page9 Petcr Ridrardson Attorncy for Clcantttcr Paper Idaho Consenration Leaguc Bvi Benjamin J, Otto Attorney for ICL Commuaity Action Partucrship Association Of ldaho (CAPAI) By; Brad Purdy Attomey foTCAPAI Sdputatlon md Setlement - AVU-E-I+05 & AVLr-G-l4{l DATED this day of July 2014. AYista Corporation By: David J. Meyer Attorney for Avista Corporation C learwater Paper Corporation By: Peter Richardson Attorney for Clearwater Paper Idaho Public Utilities Commission Staff By: Donald L. Howell, il Deputy Attomey General Idaho Forest Group By: Idaho Conservation League Snake River Alliance By:By: Benjamin J. Otto Attorney for ICL Community Action Partnership Association Of Idaho (CAPAI) Dean J. Miller Attorney for Idatro Forest Group LLC Ken Miller Clean Energy Program Director Stipulation and Settlement - AVU-E-I+05 & AVU-G-14-01 Page 9 Case Nos. AW-E-1+05 and AYU-G-14-01 Schematic of Rate Plan Extension Components Natural Gas DSM Balance s0.653M Replace PGA Deferral Credit $ I .l 79M (l .7o/o) 2013 Gas Eamings Test Deferral Balance $0.444M Replace BPA Credit $3.201M (1.3%\ 2013 Electric Eamings Test Deferral Balance $3.914M Credit to Customers Through PCA Beginning l0 I | /2014 Proiect Compass Defer for Later Recovery 80% of Actu al 20 I 5 Revenue Requirement (Est. $3.3M) 2015 Rate Plan Extension (Eamings Test) CS2/Colstrip O&M Begin $0.418M Annual Amort. l/l/2016 instead of l/l/2015 Use 2014 Eamings Test Deferral Balance to Support Attachment A Page I of 1