20240827Notice_of_Application_Order_No_36301.pdf

Office of the Secretary
Service Date
August 27,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-G-24-01
CORPORATION'S ANNUAL FIXED COST )
ADJUSTMENT MECHANISM (FCA) RATE ) NOTICE OF APPLICATION
ADJUSTMENT )
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 36301
On July 31, 2024, Avista Corporation ("Company") applied for authorization to adjust the
Fixed Cost Adjustment ("FCA") rates for natural gas service from November 1, 2024, through
October 31, 2025. The Company stated the current FCA rates as well as the proposed changes as
illustrated below:
Current Rate Proposed Rate Proposed Rate Change
Per Therm Per Therm
Residential Group
Schedule 101 Rebate of 1.219¢ Surcharge of 1.506¢ 2.3% increase
Non-Residential Group
Schedules I I I and 112 Rebate of 0.632¢ 1 Surcharge of 1.006 ¢ 1.7% increase
The Company requested a November 1, 2024, effective date and that the Idaho Public Utilities
Commission("Commission") process the request under Modified Procedure.
With this Order, the Commission issues a Notice of Application and Notice of Modified
Procedure establishing a public comment period and Company reply deadline.
BACKGROUND
The FCA is a rate adjustment mechanism designed to break the link between the energy a
utility sells and the revenue it collects to recover fixed costs 1 of providing service,thus decoupling
the utility's revenues from its customers' energy usage. This decoupling removes a utility's
incentive to increase sales to increase revenue and profits and encourages energy conservation.
The Commission originally approved a three-year pilot program of the Company's FCA as part of
the approved settlement of the Company's 2015 rate case. Order No. 33437 at 10. The parties to
1 "Fixed costs"are a utility's costs to provide service,such as infrastructure and customer service,which do not vary
with energy use,output,or production,and remain relatively stable between rate cases.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36301 1

the Company's rate case agreed to review the program's effectiveness at the end of its second full
year, to ensure the program was functioning as intended. On June 15, 2018, the Commission
approved an addendum to the settlement that extended the term of the Company's FCA pilot for
an additional year. Order No. 34085. On December 13, 2019, the Commission authorized the
Company to extend its FCA mechanism for both gas and electric customers through March 31,
2025. Order No. 34502.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company's proposed rate adjustment for its
Residential and Non-Residential natural gas customer groups is based on"the difference between
actual FCA-related revenue received from customers through volumetric rates, and the FCA-
related revenue approved for recovery in the Company's last general rate case on a per customer
basis [and] file a tariff to surcharge or rebate, by rate group, the total deferred
amount accumulated in the deferred revenue account" for the 12 months ending June 30, 2024.
Application at 3. The Company mostly attributes the proposed changes to the fact that "Idaho
customers have achieved energy efficiency savings from participation in the Company's Demand
Side Management programs."Id. at 6.
YOU ARE FURTHER NOTIFIED that the Company recorded $1,085,515 of deferred
revenue in the surcharge direction for its Residential natural gas customers for the 12-month period
ending on June 30,2024. The Company stated that the proposed surcharge rate of 1.5060 per therm
is designed to recover $1,112,815 from the Company's Schedule 101 customers. The Company
represented that the deferral balance for the 12 months ending June 30,2024,plus interest through
October 31, 2025, plus the prior year's FCA residual balance, plus a revenue related expense
adjustment would be transferred into a regulatory liability balancing account, and the balance of
that account would be reduced monthly by the revenue collected under Schedule 101 customers
under the tariff.
YOU ARE FURTHER NOTIFIED that the Company recorded $299,626 of deferred
revenue in the surcharge direction for its Non-Residential natural gas customers for the 12-month
period ending on June 30, 2024. The Company stated that the proposed rate of 1.0060 per therm
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36301 2

will result in the Company recovering $277,7952 under Schedules 111 and 112 commercial and
industrial customers. Like the Residential customers, the Company represented that the deferral
balance for the 12 months ending June 30, 2024, plus interest through October 31, 2025, plus the
prior year's FCA residual balance,plus a revenue related expense adjustment,would be transferred
into a regulatory liability balancing account, and the balance of that account would be reduced
monthly by the revenue collected under Schedule 111 and 112 customers under the tariff.
YOU ARE FURTHER NOTIFIED that the Company submitted its Residential and Non-
Residential rate calculations, support for its deferrals, and its proposed FCA tariff Schedule 175
with its Application and supplemental materials.
YOU ARE FURTHER NOTIFIED that the Company's Application and all submitted
documentation is available for public inspection during regular business hours at the
Commission's office. The Application and all submitted documentation is also available on the
Commission's website at www.puc.idaho.gov. Click on the "Natural Gas" tab in the left-hand
column of the home page, then select"Open Cases" and then locate and click on the case number
as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant
to the Commission's jurisdiction under Title 61 of the Idaho Code.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
under the Commission's Rules of Procedure, IDAPA 31.01.01.000, et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to the Commission's Rules of Procedure 201-204, IDAPA 31.01.01.201-.204.
The Commission notes that Modified Procedure and written comments have proven to be an
effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
z The Company's underlying method for calculating this number can be seen in a summary table on page seven of the
Company's Application.
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ORDER NO. 36301 3

comments and explain why written comments alone are insufficient. Persons interested in filing
written comments must do so by October 10, 2024. Comments must be filed through the
Commission's website or by e-mail unless computer access is unavailable. To comment
electronically, please access the Commission's website at http://www.puc.idaho.gov/. Click the
"Case Comment Form" and complete the form using the case number as it appears on the front of
this document.
To file by e-mail, persons must e-mail the comments to the Commission Secretary and all
parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide
their name, address, and the Case Number under which they are commenting. Persons submitting
a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a
public record under Idaho Code § 74-101(13), and all information provided by such person is
available for public and media inspection.
If computer access is unavailable, then comments may be mailed to the Commission and
the Parties at the addresses below.Persons submitting a comment by mail must provide their name,
address, and the Case Number under which they are commenting. Persons submitting a comment
by mail also acknowledge that submitting a comment in an open case constitutes a public record
under Idaho Code§74-101(13),and all information provided by such person is available for public
and media inspection.
For the Idaho Public Utilities For Avista Corporation:
Commission:
Commission Secretary David J. Meyer(MSC-10)
Idaho Public Utilities Commission Patrick Ehrbar (MSC-27)
P.O. Box 83720 P.O. Box 3727
Boise, ID 83720-0074 1411 E. Mission Ave.
secretgUkpuc.idaho.gov Spokane, WA 99220-3727
david.me erAavistacorp.corn
Street Address for Express Mail: patrick.ehrbargavistacorp.com
dockets(d),avistacorp.com
11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
October 17, 2024.
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NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36301 4

YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that this case be processed by Modified Procedure,Rule 201-
204. Persons shall have until October 10, 2024, to file written comments, and the Company shall
have until October 17, 2024, to file a reply.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 27th day of
August 2024.
ERIC ANDERSON, PRESIDENT
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J R. HAMMOND JR., COMMISSIONER
G
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