20240731Application_Exhibit A.pdf

11
RECEIVED
Avista Corp. 2024 July 31 AM 11:10
1411 East Mission P.O. Box 3727 IDAHO PUBLIC
Spokane, Washington 99220-0500 UTILITIES COMMISSION
Telephone [phone]
Toll Free 800-727-9170
July 31, 2024
Commission Secretary
State of Idaho
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Building 8, Suite 201-A
Boise, Idaho 83702-5983
RE: Case No.AVU-E-24-07
Power Cost Adjustment (PCA)Annual Rate Adjustment Filing of Avista Corporation
Dear Commission Secretary:
Attached for electronic filing with the Commission is the annual Power Cost Adjustment Rate
Filing.' The Company is requesting that the Commission issue an order approving recovery of
power costs deferred for the period July 1, 2023 through June 30, 2024, and approving a PCA
rebate of 0.2050 per kilowatt-hour to be effective October 1, 2024.
Under the Company's proposal, the PCA rebate rate for all customers, including residential
customers, would decrease from an existing surcharge rate of 0.499¢ per kilowatt-hour to a
proposed rebate rate of 0.2050 per kilowatt-hour, or a decrease in the rate of 0.7040 per kilowatt-
hour. Since PCA rate adjustments are spread on a uniform cents per kilowatt-hour basis, the
resulting percentage change varies by rate schedule. The overall decrease is approximately $22.8
million or 7.4%. Residential customers using an average of 927 kilowatt-hours per month would
see their monthly bills decrease from $104.18 to $97.66, a decrease of$6.52 per month, or 6.3%.
Certain supporting documents are CONFIDENTIAL, rendering these documents exempt from
public inspection, examination and copying pursuant to Sections 74-101 through 74-126 of the
Idaho Code. Avista believes that the identified CONFIDENTIAL supporting documents contain
valuable commercial information.
As such, Avista is submitting a separate electronic filing containing the electronic form of the
CONFIDENTIAL supporting documents, in compliance with Rule 067.02.b.
1 Case No. GNR-U-20-01,Order No.35375

Please direct any questions regarding this filing to Ryan Finesilver at
Eyan.finesilver(&avistacorp.com and (509) 495-4873 or Kaylene Schultz at
kaylene.schultzgavistacorp.com or(509) 495-2482.
Sincerely,
/s/ Patrick EArbar
Patrick D. Ehrbar
Director of Regulatory Affairs
Enclosures

I DAVID J MEYER
2 VICE PRESIDENT AND CHIEF COUNSEL FOR
3 REGULATORY & GOVERNMENTAL AFFAIRS
4 AVISTA CORPORATION
5 1411 E. MISSION AVENUE
6 P. O. BOX 3727
7 SPOKANE, WASHINGTON 99220
8 PHONE: [phone]
9
10
11 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
12
13 IN THE MATTER OF THE POWER COST )
14 ADJUSTMENT (PCA) ANNUAL RATE ) CASE NO. AVU-E-24-07
15 ADJUSTMENT FILING OF AVISTA ) APPLICATION OF AVISTA
16 CORPORATION ) CORPORATION
17
18
19 I. INTRODUCTION
20 In accordance with Idaho Code §61-502 and RP 052, Avista Corporation, doing
21 business as Avista Utilities (hereinafter "Avista" or "Company"), at 1411 East Mission
22 Avenue, Spokane,Washington,respectfully files its Power Cost Adjustment(PCA) annual
23 rate adjustment filing in the above referenced case. The Company requests the Commission
24 issue an order approving the level of power costs deferred in the rebate direction for the
25 period July 1, 2023 through June 30, 2024, and approving a PCA rebate rate of 0.2050 per
26 kilowatt-hour to be effective October 1, 2024. The Company requests that this filing be
27 processed under the Commission's Modified Procedure Rules through the use of written
28 comments.
29 Communications in reference to this Application should be addressed to:
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 1

I David J. Meyer, Esq.
2 Vice President and Chief Counsel for
3 Regulatory & Governmental Affairs
4 Avista Corporation
5 P.O. Box 3727
6 MSC-10
7 1411 E. Mission Ave
8 Spokane, WA 99220-3727
9 Phone: [phone]
10 [e-mail]
11
12 Patrick D. Ehrbar
13 Director of Regulatory Affairs
14 Avista Utilities
15 P.O. Box 3727
16 MSC-27
17 1411 E. Mission Ave
18 Spokane, WA 99220-3727
19 Phone: [phone]
20 [e-mail]
21
22 Electronically
23 [e-mail]
24
25 II. BACKGROUND
26 Avista's PCA is used to track changes in revenues and costs associated with
27 variations in hydroelectric generation, secondary prices, thermal fuel costs, and changes in
28 power contract revenues and expenses. Avista's existing PCA methodology and method
29 of recovery were approved in Case No. AVU-E-07-01 by Order No. 30361 dated June 29,
30 2007. In that case, the Commission approved a change in the PCA methodology from a
31 trigger and cap mechanism to a single annual PCA rate adjustment filing requirement.
32 The Commission also approved a change in the method of the PCA deferral rate
33 adjustment from a uniform percentage basis, to a uniform cents per kilowatt-hour basis
34 effective with the October 1, 2007 PCA rate change. By Order No. 32206 in Case No.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 2

I GNR-E-10-03 dated March 15, 2011, the Commission modified the retail revenue credit
2 methodology and approved a Load Change Adjustment Rate based on the energy classified
3 portion of embedded production revenue requirement effective April 1, 2011.
4 The Commission approved the following procedural schedule for administering the
5 annual PCA filings:
6 August 1 Company filing for prior July—June deferral period
7 September 1 Review and comments by Staff and other interested parties
8 October 1 Commission Order/effective date of PCA rate adjustment
9
10 The present PCA surcharge was made effective on October 1, 2023. On July 31,
11 2023, in Case No. AVU-E-23-08, Avista filed its annual PCA rate adjustment for the
12 deferral period July 1, 2022 through June 30, 2023 and requested a PCA surcharge rate of
13 0.4990 per kilowatt-hour, based on an overall surcharge of approximately $15.7 million,
14 effective October 1, 2023. That surcharge will end on September 30, 2024. The
15 Commission approved that application in Order No. 35937, dated September 28, 2023.
16 The proposed PCA rate adjustment of 0.2050 per kilowatt-hour would rebate to
17 customers approximately $6.6 million effective October 1, 2024. The rebate is primarily
18 associated with power supply costs that were lower than those included in retail rates, due
19 to lower wholesale electric and natural gas prices. The net effect of the expiring surcharge,
20 and the proposed rebate, is an overall decrease in revenue of approximately 7.4 percent, or
21 $22.8 million.
22
23 III.DEFERRALS—JULY 1, 2023 THROUGH JUNE 30, 2024
24 The amount of power cost deferrals for the period July 1, 2023, through June 30,
25 2024, is shown below, as well as interest for the same period. Company witness Mr.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 3

I Holland's testimony provides an explanation of the factors causing the deferral entries for
2 the period. Company witness Ms. Schultz's testimony addresses the deferral, Renewable
3 Energy Credit Benefit, and interest amount.
4 Deferrals (July 2023 - June 2024) $ (6,250,049)
Renewable Energy Credit Retirement Benefit $ (1,058,163)
5 Interest $ (81,720)
6 Total Deferral Balance $ 7 389 932
7 Quarterly reports have been filed with the Commission regarding actual PCA
8 deferral entries to date.' An additional copy of those reports for the quarters of Q3 2023,
9 Q4 2023, Q1 2024 and Q2 2024 been included with this filing and has also been provided
10 to Clearwater Paper Corporation and Idaho Forest Group.
11
12 IV. PROPOSED RATE TO BE EFFECTIVE OCTOBER 1, 2024
13 The Company is proposing a uniform cents per kilowatt-hour PCA rebate rate of
14 0.2050 to be effective October 1, 2024 (from the present surcharge rate of 0.4990 per
15 kilowatt-hour). See page 1 of Ms. Schultz's Exhibit No. KJS-1 for the calculation of the
16 proposed rate. Attached to this Application as Exhibit "A"is a copy of the proposed tariff,
17 Schedule 66,which contains the proposed PCA rate.Exhibit"A"also includes the proposed
18 changes to Schedule 66 in strike out/underline format. The proposed rate is designed to
19 rebate the following:
1 In Case No. AVU-E-23-08, Order No. 35937, the Company was directed to submit PCA reports, which
must include the Power Transaction Register(PTR)and Gas Accounting Data Download(GADD)in Staff s
recommended file formats, to the Commission on a quarterly basis. The Company filed its first quarterly
report on October 13,2023,beginning with Q3 2023,which included the confidential PTR and GADD reports
for that quarter. Subsequent quarterly filings of the alike have been made to date.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4

1 Deferrals(July 2023-June 2024) $ (6,250,049)
Renewable Energy Credit Retirement Benefit $ (1,058,163)
2 Interest $ (81,720)
Total Deferral Balance $ (7,389,932)
3
Unamortized Balance from Previous Deferrals(prior to July 1,2023) $ 16,653,537
4 Amortization July 2023-June 2024 $ (12,354,708)
Interest $ 378,217
5 Total Remaining Amortization Balance $ 4,677,046
6 Projected Amortization and Total Interest(July 2024-September
2024) $ (3,891,184)
7 TOTAL BALANCE FOR AMORTIZATION $ (6,604,070)
8 After applying the conversion factor related to commission fees and uncollectible
9 customer accounts to the "Total Balance for Amortization" shown above, the resulting
10 credit balance of$6,629,108 is divided by forecasted kilowatt-hours to derive the proposed
11 rebate rate of 0.2050 per kilowatt-hour.2
12 Since PCA rate changes are spread on a uniform cents per kilowatt-hour basis, the
13 resulting percentage decreases vary by rate schedule. Page 1 of Ms. Schultz's Exhibit No.
14 KJS-1 shows the effect of the proposed PCA rebate by rate schedule. The overall decrease
15 in revenue,after accounting for the expiration of the existing surcharge, and the new rebate,
16 is approximately$22.8 million or 7.4%. The revenue impact by rate schedule is as follows:
17 Schedule Percent change
Type of Service Number on Billed Revenue
18 Residential 1 -6.5%
General Service 11,12 -7.8%
19 Large General Service 21,22 -6.8%
Extra Large General Service 25 -10.7%
20 Clearwater 25P -11.7%
21 Pumping Service 31,32 -6.0%
Street&Area Lights 41-49 -1.8%
22 Total -7.4%
2 Total Balance for Amortization($6,604,070)divided by conversion factor 0.996223=($6,629,108).
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 5

I Residential customers using an average of 927 kilowatt-hours per month would see their
2 monthly bills decrease from $104.18 to $97.66, a decrease of$6.52 per month, or 6.3%.
3
4 V. REQUEST FOR RELIEF
5 The Company requests that the Commission issue an order approving power costs
6 deferred for the period July 1, 2023 through June 30, 2024, and approving a PCA rebate
7 rate of 0.2050 per kilowatt-hour to be effective October 1, 2024. Under the Company's
8 proposal, the PCA rate for all customers, including residential customers, would decrease
9 from a surcharge rate of 0.4990 per kilowatt-hour to a rebate rate of 0.2050 per kilowatt-
10 hour. Since PCA rate adjustments are spread on a uniform cents per kilowatt-hour basis,
11 the resulting percentage decrease varies by rate schedule. The overall decrease in revenue
12 is approximately $22.8 million or 7.4%. The Company requests that the matter be
13 processed under the Commission's Modified Procedure rules through the use of written
14 comments.
15 Dated at Spokane, Washington this 31St day of July 2024.
16 AVISTA CORPORATION
17
18 By: /s/David J. Meyer
19 David J. Meyer
20 Vice President and Chief Counsel for
21 Regulatory & Governmental Affairs
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 6

Case No. AVU-E-24-07
2024 Idaho PCA Filing
Exhibit "A"

Twenty-Sixth Revision Sheet 66
Canceling
I.P.U.C. No.28 Twenty-Fifth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21, 22, 25, 25P, 31, 32, and
41-49 are to be decreased by 0.2050 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
Issued July 31, 2024 Effective October 1, 2024
Issued by Avista Utilities
B(y� Patrick Ehrbar— Director of Regulatory Affairs

Twenty-Fifth Revision Sheet 66
Canceling
I.P.U.C. No.28 Twenty-Fourth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21, 22, 25, 25P, 31, 32, and
41-49 are to be it Teed by 0.4990 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
Issued July 31, 2023 Effective October 1, 2023
Issued by Avista Utilities
B(y� Patrick Ehrbar— Director of Regulatory Affairs

Twenty-Sixth Revision Sheet 66
Canceling
I.P.U.C. No.28 Twenty-Fifth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21, 22, 25, 25P, 31, 32, and
41-49 are to be decreased by 0.2050 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
Issued July 31, 2024 Effective October 1, 2024
Issued by Avista Utilities
B(y� Patrick Ehrbar— Director of Regulatory Affairs

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have served Avista Corporation's annual Power Cost
Adjustment (PCA) Annual Rate Adjustment Filing by electronic mail a copy thereof to
the following:
Commission Secretary Peter J. Richardson
Idaho Public Utilities Commission Richardson Adams PLLC
11331 W. Chinden Blvd. 515 N. 27t" Street
Building 8, Suite 201-A Boise, ID 83702
Boise, ID 83714 Peter(crOchardsonadams.com
Marie Callaway Kellner/Brad Heusinkveld
Idaho Conservation League
710 N. 6t" Street
Boise, ID 83702
mkellner(a).idahoconservation.org
bheusinkveld(o)_idahoconservation.org
Carol Haugen Dr. Don Reading
Clearwater Paper 280 S. Silverwood Way
601 W. Riverside Ave. Suite 1100 Eagle, Idaho 83616
Spokane, WA 99201 dread ing(o-)_mindspring.com
carol.haugen clearwaterpaper.com
Larry Crowley
The Energy Strategies Institute, Inc.
3738 S. Harris Ranch Ave.
Boise, ID 83716
Email: crowlyla _aol.com
(Excluding Confidential Information)
Dated at Spokane, Washington this 31t" day of July 2024.
/s/ Paul Kimball
Paul Kimball
Manager Regulatory Compliance & Discovery