20240322Avista to Staff PR 1 Supplemental.pdf

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AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 03/21/2024
CASE NO: AVU-E-24-03 WITNESS: Scott Kinney
REQUESTER: Staff RESPONDER: Ryan Finesilver
TYPE: Production Request DEPARTMENT: Power Supply
REQUEST NO.: Staff-001- SUPPLEMENTAL TELEPHONE: [phone]
REQUEST:
Please explain the purpose of the "use-of-facilities charge." Also, please explain the impact on
ratepayers. Please include in your response (but not limited to) how only paying the charge when
the project operates will ensure the Company recovers the cost associated with the charge without
shifting the cost to ratepayers.
RESPONSE:
Avista’s dedicated feeder position in the Plummer Substation is for the sole use and purpose of
integrating the Stimson Lumber generation project. Costs include components for distribution
asset investment recovery, general & intangible plant, common plant, O&M and depreciation
expense, and taxes. Since Stimson is the sole user of the 13.8 kV facilities a Use of Facilities
(UOF) charge is assessed.
This charge was developed based on the following formula but has later been modified as the
Annual Cost Ratio has been updated.
Sole Use Investment: $60,991
Annual Cost Ratio: 15.54% 1
Annual Sole Use Charge: $60,991X 0.1554 = $9,480/year
Monthly Sole Use Charge: $790/month
The UOF charge included in the PPA recovers the initial investment as well as any ongoing O&M
costs. The charge is also intended to plan for the future should that equipment need to be replaced
or maintained.
Regarding the impact on ratepayers, the use of facilities charge is recorded in FERC account 456 –
Transmission Revenue, which is an account included in the Company’s annual PCA. The impact
of the charge is approximately $8,448 on an annual, system basis. After allocating between WA
and ID, and then applying the PCA cost sharing, the estimated annual impact is $2,620.06.2 Note
that the entirety of the initial Sole Use Investment has been recovered through the monthly
charges.
1 Based on 2010 Distribution Annual Cost Ratio. Later this value was updated to 13.86% which resulted in a monthly
charge of $704 as shown in the Company’s response to Staff-PR-004.
2 Calculated as ($8,448*.3446 (the P/T Ratio portion for Idaho) *0.90 (Customer share under the PCA))
RECEIVED
Friday, March 22, 2024 11:25:35 AM
IDAHO PUBLIC
UTILITIES COMMISSION
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SUPPLEMENTAL RESPONSE: (3-21-2024)

Please see Staff_PR_001 – Supplemental Attachment A for a copy of the 2010 Distribution
Annual Cost Ratio Calculation.
RECEIVED
Friday, March 22, 2024 11:25:35 AM
IDAHO PUBLIC
UTILITIES COMMISSION