20151231Reply to Petition for Reconsideration.pdf

Avista Gorp.
141{ East Mission P.O. Box3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
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FILED ELECTRONICALLY AND VIA
December 30, 2015
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OVERNIGHT MAIL
Jean D. Jewell
Commission Secretary
Idaho Public Utilities Commission
472 W . Washington Street
Boise,lD 83702
Re: Case Nos. AVI]-E-15-05 and AW-G-15-01
Answer of Avista Corporation to Petition for Reconsideration
Enclosed for filing with the Commission in the above-referenced docket are the original and
seven copies of Avista Corporation's Answer to Mr. Craig Kerwin's Petition for Reconsideration
which was filed on December 28,2015.
Please direct any questions related to this filing to Patrick Ehrbar ar 509.495.8620 or Liz
Andrews at 509.495.860 1.
Sincerely,
/-
Vice President, Chief Counsel for Regulatory
& Governmental Affairs
Enclosures
c: Service List
DavidJ. Meyer
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this 30s day of December, 2015, served the Answer of Avista
Corporation To Petition For Reconsideration, upon the following parties, by mailing a copy
thereof, properly addressed with postage prepaid to:
Jean D Jewell, Secretary
Idaho Public Utilities Commission
Statehouse
Boise, D 83720-5983
Jean [e-mail]. gov
Karl Klein
Brandon Karpen
Deputy Attorneys General
Idaho Public Utilities Commission
472W. Washington
Boise, D 83702-0659
karl.klein@puc. idaho. gov
Brandon.karpen@puc. idaho. gov
Kelsey Nunez
Snake River Alliance
223 N 6th Street, Suite 317
Boise, D 83702
kmiller@snakeriveralliance. org
knunez@snakeriveral liace.org
Larry A. Crowley
The Energy Strategies lnstitute, lnc.
5549 S. Cliffsedge Ave
Boise,ID 83716
[e-mail]
Ken Miller
Clean Energy Program Director
Snake River Alliance
223 N 6th Street, Suite 317
Boise, D 83702
kim [e-mail]
Brad M. Purdy
Attorney at Law
2019 N 17ft Street
Boise,ID 83720
[e-mail]
Peter J. Richardson
Greg M. Adams
Richardson & O'Leary PLLC
515 N.27ft Street
PO Box 7218
Boise, ID 83702
[e-mail]
[e-mail]
Dean J. Miller
McDevitt & Miller, LLP
420W. Bannock St.
PO Box 2564-83701
Boise,lD 83701-2564
j [e-mail]
Benjamin J. Otto
Idaho Conservation League
710 N. 6th St.
Boise, D 83702
[e-mail]
Dr. Don Reading
6070 Hill Road
Boise,ID 83703
dreadin [e-mail]
Mr. Craig E. Kerwin
1720 E. Pebblestone Ct.
Hayden,ID 83835-8145
Patrick Ehrbar
Manager, Rates & Tariffs
DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY & GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
P.O.BOX3727
14I1 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: (s09) 495-4316
FACSIMILE: (509) 49s-88s I
DAVID.MEYER@AVISTACORP. COM
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION DBA AVISTA
UTILITIES FOR AUTHORITY TO INCREASE
ITS RATES AND CHARGES FOR ELECTRIC
AND NATURAL GAS SERVICE IN IDAHO
CASE NOS. AVU.E-I5-05
AVU-G-15-01
ANSWER OF AVISTA
CORPORATION TO PETITION FOR
RECONSIDERATION
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Comes Now, Avista Corporation, by and through its undersigned attorney, and pursuant to
IDAPA 31.01.01 (Rule 331), answers the Petition for Reconsideration of Order No. 33437
filed by Mr. Craig Kerwin on December 28,2015.
At the outset, Avista wishes to thank Mr. Kerwin for the interest expressed in the outcome
of these dockets and is sorry for any inconvenience experienced by Mr. Kerwin and other
customers during the recent wind and snow storms. Avista wishes to assure Mr. Kerwin and
other customers that the Company made substantial efforts to restore power as quickly as
reasonably possible.
More particularly addressing Mr. Kerwin's concerns over executive compensation, Avista
notes that this matter was specifically addressed by the parties in reaching the Settlement that
ANSWER OF AVISTA CORPORATION TO PETITION
FOR RECONSIDERATION PAGE I
was approved by the Commission in its Order No. 33437, on December 18, 2015. That Order
approved a Settlement that, by its express terms, removed all officer incentive pay from the
approved rates. (See, Stipulation and Settlement, dated October 15,2015, at Sections 7(h) and
9(h). What remained was officer compensation based on existing salary levels as of March of
2015, with no increase for 2016. Existing rates had previously reflected officer salary levels
as of20l 1.
In conclusion, offrcer compensation was just one of many issues addressed in the
Settlement. As noted by the Commission in its Order No. 33437, at p. 10, "[t]he settlement
represents a reasonable compromise of the positions held by the parties and reflects a
significant reduction in the requested revenue increase."
Avista appreciates the opportunity to hear from its customers, but believes that these
concerns have been addressed in the approved Settlement.
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Respectfully submiued thts 70 aay of December,2015
ANSWER OF AVISTA CORPORATION TO PETITION
FOR RECONSIDERATION
Vice President and Chief Counsel for Regulatory
and Governmental Affairs
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