20240620Final_Order_No_36236.pdf

Office of the Secretary
Service Date
June 20,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-24-04
CORPORATION'S APPLICATION FOR AN )
ACCOUNTING ORDER FOR APPROVAL ) ORDER NO. 36236
OF DEPRECIATION AND AMORTIZATION )
RATES FOR OUTAGE MANAGEMENT )
SYSTEM & ADVANCED DISTRIBUTION )
MANAGEMENT SYSTEM SOFTWARE )
INVESTMENT )
On March 5, 2024, Avista Corporation dba Avista Utilities ("Company"), filed an
application ("Application") with the Idaho Public Utilities Commission ("Commission")
requesting an accounting order authorizing the Company to use a 15-year depreciable life for
certain software investments relating to the Company's Outage Management System("OMS")and
Advanced Distribution Management System ("ADMS"), to be transferred to plant in 2025.
The Company represented that it foresees a digital future that bridges the Customer, the
Grid, Utility Operations, Utility Enterprise domains, and that requires a technology platform that
enables the integration of these domains. Application at 2. The Company represented that it plans
to replace its Outage Management Tracker ("OMT") and Distribution Management System
("DMS"),which is an in-house customer tool,with a single ADMS.Id. at 2-3. The Company stated
that it anticipated using ADMS for approximately 15 years as the Company previously used its
OMT for nearly 20 years.Id. at 3.
The Company represented that it was authorized by the Commission to amortize software
costs over 5 years;however, certain software assets transferring to plant in 2025 and 2028 relating
to the OMS and ADMS were expected to have a longer useful life. Id. at 5-6. The Company
requested that the Commission authorize a 15-year life for the software assets transferring in 2025,
and a 12-year remaining life of the overall project, for the software assets transferring in 2028.Id.
at 6.
STAFF COMMENTS
Based on its review of the Application, Staff believed that matching the depreciation life
of OMS &ADMS software projects with the useful life of the assets provided the proper matching
ORDER NO. 36236 1

of revenues with the benefits received from the assets and would not require the Company to
maintain multiple depreciation accounts for each regulated jurisdiction. Staff Comments at 2.
Staff recommended that the Commission approve the Company's Application allowing the
Company to use a 15-year depreciable life for OMS & ADMS software transferring to plant in
2025, and 12-years for software transferring in 2028.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Application and the issues in this
case under Title 61 of the Idaho Code including Idaho Code §§ 61-301 through 303. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code
§§ 61-501 through 503.
The Commission has reviewed the Application, all submitted materials, and all submitted
comments. Based on its review of the record, the Commission finds it fair,just, and reasonable to
approve the Application.
ORDER
IT IS HEREBY ORDERED that the Company's Application is approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626
and 62-619.
N
ORDER NO. 36236 2

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 20t'day of
June 2024.
6—:-a,
ERIC ANDERSON, PRESIDENT
tRHAMMOND JR. COMMISSIONER
EDWARD LODGE, C r MISSIONER
ATTEST:
I jj—)� —
AM a arri ch
Commission Secretary
I:\Legal\E LECTRIC\A V U-E-24-04_software\orders\A V UE2404_FO_cb.docx
ORDER NO. 36236 3