19991004modproc.app.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION DBA AVISTA UTILITIES — WASHINGTON WATER POWER DIVISION FOR AN ORDER APPROVING A CHANGE IN NATURAL GAS RATES AND CHARGES.
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) CASE NO. AVU-G-99-2

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

NOTICE OF COMMENT/ PROTEST DEADLINE
On September 15, 1999, Avista Corporation dba Avista Utilities — Washington Water Power Division (Avista; Company) applied to the Idaho Public Utilities Commission (Commission) for authority to implement new rates and charges for natural gas service in the state of Idaho. Avista serves approximately 48,600 customers in Idaho. Over 48,000 of those customers are residential. As computed by the company, the total requested net annual revenue increase in Idaho is $2,708,000 (8.58%), which includes separate billing adjustments for contract customers as detailed below. The increase in price per therm to residential customers is approximately 8.41%. Residential customers using an average of 80 therms per month under the Company’s proposal can expect an increase in their average monthly bill of $3.21. The change in rates and charges to other customers will vary according to customer class and usage. The Company has requested an effective date of November 1, 1999. The Company maintains that the public interest does not require a hearing on its Application and requests that the matter be processed under the Commission’s Rules of Modified Procedure, i.e., by written submission rather than by hearing, IDAPA 31.01.01.201-204.
As part of this Purchase Gas Adjustment (PGA) filing, the Company is also requesting to collect $.0004 per therm from sales customers for remittance to the Gas Research Institute (GRI) for research and development (R&D) projects. GRI is requesting that local distribution companies (LDCs) contribute, on a voluntary basis, an annual amount equal to lost pipeline funding. The proposed customer charge of $.0004 per therm is estimated to provide approximately $31,000 on an annual basis.
The overall effect of the proposed changes, if authorized, would be to increase customer rates per therm in the follow amounts:

Class Description
& Schedule

$ Per Therm
General/Large General & Commercial
(Schedules 101,111 &121)

Large General & Commercial Receiving Lump Sum Bill
Credits or Charges
(Schedules 112 & 122)

Interruptible Service & Interruptible Service Receiving Lump Sum Bill Credits or Charges
(Schedules 131 & 132)

Transportation
(Schedule 146)

$0.04012

$0.02185

$0.01784

$Ø
Schedule 155Gas Rate Adjustment
Schedule 155Gas Rate Adjustment (Idaho) is used by the Company to pass through any under- or over-collection of gas costs since its last tracker filing. The company estimates a net deferral amount of $1,245,411 owing from its customers as of June 30, 1999. The result is an increase in the Tariff Schedule 155 rates for Schedules 101, 111 and 121 customers of $0.01827/therm.
As per the Company’s Application and to clear out residual balances in customer accounts the following large transportation and interruptible customers will receive individual billing charges and/or credits/refunds that include interest that has accumulated from the end of the test period to the date of Commission approval. Balances at the end of the test period were:

Kootenai Medical Center
Idaho Asphalt
Imsamet
Hughes Greenhouse
Lignetics
Louisiana Pacific (Sandpoint)
Louisiana Pacific (Chilco)
Interstate Asphalt
University of Idaho
St. Joseph Hospital
Coeur dAlene Asphalt
Crown Pacific
($224)
($189)
$ 0
($ 33)
$ 182
$ 2,345
($ 32)
$ 8,508
$10,561
$11,766
($1,088)
$12,658
Potlatch will receive an individual (Sch 155) refund/credit of $3,462.

Schedule 150Permanent Gas Cost Changes
Schedule 150Permanent Gas Cost Changes (Idaho) is used by the Company to reflect continuing changes in the cost of purchasing and transporting gas for customers. Since rates were last approved, the net change in commodity, demand and storage gas costs results in an increase of $0.02185/therm for firm gas Schedules 101 through 122; an increase of $0.01784/therm for interruptible Schedules 131 and 132; and no change for transportation Schedule 146. As per the Company’s Application, the resultant annual net increase in annual revenue requirement (Idaho) related to Schedule 150 changes is $1,462,698. The Company calculates its current weighted average cost of gas (WACOG) to be $0.19308, an increase of $0.2567 from the previous $0.16741.

YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company’s Application, proposed tariffs, and supporting workpapers. The Commission has preliminarily found that the public interest regarding implementation of the proposed changes to rates and charges may not require a hearing to consider the issues presented and that the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Commission will not hold a hearing in this proceeding unless it receives written protests or comments opposing the use of Modified Procedure and stating why Modified Procedure should not be used. Reference IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application and the Commission’s use of Modified Procedure in Case No. AVU-G-99-2 is Friday, October 22, 1999. Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the matter on its merits and enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order on the basis of the written positions before it. Reference IDAPA 31.01.01.204.

YOU ARE FURTHER NOTIFIED that the Application and proposed revisions to Schedules 150 and 155, together with the Company’s supporting workpapers, have been filed with the Commission and are available for public inspection during regular business hours at the Commission office and at the Idaho offices of Avista Utilities. Written comments concerning this Application shall be mailed to the Commission and the Company at the addresses reflected below:

COMMISSION SECRETARY THOMAS D. DUKICH, MANAGER
IDAHO PUBLIC UTILITIES COMMISSION RATES AND TARIFF ADMINISTRATION
PO BOX 83720 AVISTA UTILITIES
BOISE, IDAHO 83720-0074 PO BOX 3727
SPOKANE, WA 99220-3727
Street Address for Express Mail:
DAVID J. MEYER
472 W WASHINGTON ST SENIOR VICE PRESIDENT
BOISE, IDAHO 83702-5983 AVISTA UTILITIES
1200 WASHINGTON TRUST BANK BLDG
SPOKANE, WA 99204

All comments should contain the case caption and case number shown on the first page of this document.
DATED at Boise, Idaho this day of October 1999.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

bls/O:avug992_sw

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE -1-

Office of the Secretary
Service Date
October 4, 1999