20240920Application.pdf

I ,1
Avista Corp. RECEIVED
1411 East Mission P.O. Box 3727 Friday, September 20, 2024
IDAHO PUBLIC
Spokane, Washington 99220-0500 UTILITIES COMMISSION
Telephone [phone]
Toll Free 800-727-9170
September 20, 2024
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714
RE: CASE NOS.AVU-E-24-11_AND AVU-G-24-04_
IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION FOR THE
EXTENSION OF AVISTA'S ELECTRIC AND NATURAL GAS FIXED COST
ADJUSTMENT MECHANISMS IN THE STATE OF IDAHO
Dear Commission Secretary:
Enclosed for filing with the Commission is Avista's Application for the Extension of its
Electric and Natural Gas Fixed Cost Adjustment Mechanisms. The filing consists of Avista's
Application,Anderson Testimony in support of the application, Exhibit No. 1(Avista Decoupling
Evaluation—Final Report), and Exhibit No. 2. (2024 Idaho FCA Review).
Electronic versions of the Company's filing were emailed to the Commission,and the Service List,
on September 20, 2024.
Please direct any questions regarding this filing to Joel Anderson at [phone] email:
joel.anderson(d,avistacorp.com or me at(509)495-8620 email: pat.ehrbar(a,avistacorp.com.
Sincerely,
ls/ Pat Ehrbar
Patrick D. Ehrbar
Director of Regulatory Affairs
Enclosures

RECEIVED
Friday, September 20, 2024
IDAHO PUBLIC
UTILITIES COMMISSION
1 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 EMAIL: [e-mail]
10
11 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
12 IN THE MATTER OF THE APPLICATION ) CASE NO. AVU-E-24-11
13 OF AVISTA CORPORATION FOR THE ) CASE NO. AVU-G-24-04
14 EXTENSION OF AVISTA'S ELECTRIC )
15 AND NATURAL GAS FIXED COST ) APPLICATION OF AVISTA
16 ADJUSTMENT MECHANISMS IN THE ) CORPORATION FOR AN
17 STATE OF IDAHO ) EXTENSION OF FCA
18 ) MECHANISMS
19
20
21 I. INTRODUCTION
22 In accordance with Idaho Code§61-502 and RP 052,Avista Corporation,doing
23 business as Avista Utilities (hereinafter"Avista" or"Company"), at 1411 East Mission
24 Avenue, Spokane,Washington,respectfully requests approval of its proposed extension
25 of its electric and natural gas Fixed Cost Adjustment Mechanisms ("FCA" or "FCA
26 Mechanisms"). The FCA Mechanisms were made effective on January 1, 2016, and
27 later extended on December 13, 2019, and will expire on March 31, 2025, absent a
28 request to extend the life of the mechanisms in this proceeding.' The Company requests
29 that the Commission authorize the approval of an extension to the Company's electric
1 In Order 34085 in Case Nos.AVU-E-15-05 and AVU-G-15-01,the Commission approved an all-party
settlement stipulation which extended the life of the FCA Mechanisms until the end of 2019. Then, in
Order 34502 in Case Nos.AVU-E-19-06 and AVU-G-19-03,the Commission approved the extension of
the FCA Mechanisms until March 31,2025.
AVISTA'S FCA EXTENSION APPLICATION PAGE 1

I and natural gas FCA Mechanism Tariff Schedule's 75 and 175, effective April 1, 2025
2 and expiring on August 31, 2029.
3 Avista has provided testimony, sponsored by Company witness Mr. Anderson,
4 regarding the FCA Mechanisms' history, performance, and proposed extension. He
5 sponsors two exhibits: Exhibit No. 1 is the "Avista Decoupling Evaluation Final
6 Report" prepared by H. Gil Peach & Associates LLC. Exhibit No. 2 is a copy of the
7 PowerPoint presentation from the FCA Workshop held with the Idaho Public Utilities
8 Commission on April 10, 2024.
9 The Company requests that this filing be processed under the Commission's
10 Modified Procedure Rules, through the use of written comments. Communications in
11 reference to this Application should be addressed to:
12 David J. Meyer, Esq. Patrick D. Ehrbar
13 Vice President Director of Regulatory Affairs
14 Avista Corporation Avista Corporation
15 P.O. Box 3727 P.O. Box 3727
16 MSC-27 MSC-27
17 1411 E. Mission Ave 1411 E. Mission Ave
18 Spokane, WA 99220-3727 Spokane, WA 99220-3727
19 Phone: [phone] Phone: [phone]
20 David.Me (&,avistacorp.com Patrick.Ehrbar(c-r�avistacorp.com
21
22 Electronically
23 DocketskAvistacorp.com
24
25
26 II. BACKGROUND
27 On December 18,2015,the Commission issued Order 33437 in Case Nos.AVU-
28 E-15-05 and AVU-G-15-01, approving a Settlement Stipulation ("Stipulation").
29 Included in the approved Stipulation were electric and natural gas FCA Mechanisms,
30 which went into effect on January 1, 2016, for a three year term through December 31,
AVISTA'S FCA EXTENSION APPLICATION PAGE 2

1 2018. Later, in Order 34085, the Commission extended the mechanisms through
2 December 31, 2019, so as to allow "Staff and interested parties additional information
3 and recommendations from the third-parry evaluation of Avista's FCA mechanism in
4 Washington along with an additional year of data".Z Then in Order 34502 in Case Nos.
5 AVU-E-19-06 and AVU-G-19-03,the Commission approved the extension of the FCA
6 Mechanisms until March 31, 2025.
7 The purpose of the FCA Mechanisms is to decouple the Company's
8 Commission-authorized revenues from energy sales, such that the Company's revenues
9 will be recognized based on the number of customers served under the applicable
10 service schedules. The FCA Mechanisms allow the Company to: 1)defer the difference
11 between actual FCA-related revenue approved for recovery in the Company's last
12 general rate case; and 2) file a tariff to surcharge or rebate, by rate group, the total
13 deferred amount accumulated in the deferred revenue accounts for the prior January
14 through December time period.
15
16 III. TESTIMONY IN SUPPORT OF REQUESTED MODIFICATIONS
17 As stated earlier, Mr. Anderson provides testimony and exhibits in support of
18 the Company's request. In his testimony, Mr. Anderson discusses the purpose and
19 benefits to both customers and the Company related to the FCA Mechanisms. He
20 provides an overview of the performance of the mechanisms as well as a summary of
21 the independent, third-party analysis conducted by H. Gil Peach and Associates.
2 Order 34085,p. 1.
AVISTA'S FCA EXTENSION APPLICATION PAGE 3

1
2 IV. TARIFF MODIFICATIONS
3 Assuming approval of the Company's request in this matter, the Company
4 would make a Compliance filing providing the revised tariff sheets 75 and 175 showing
5 the new expiration date.3
6
7 VI. REQUEST FOR RELIEF
8 The Company requests that the Commission issue an order approving the
9 extension of the Company's electric and natural gas Fixed Cost Adjustment
10 Mechanisms, effective April 1, 2025. The Company respectfully requests that this Case
11 be processed under the Commission's Modified Procedure rules through the use of
12 written comments.
13 DATED at Spokane, Washington, this 20th day of September 2024.
14
15 AVISTA CORPORATION
16
17
18
19 Is/David J. Meyer
20
21 David J. Meyer
22 Vice President and Chief Counsel for
23 Regulatory & Governmental Affairs
24 Avista Corporation
3 At the time of this filing,tariff sheets 75 and 175 were filed with the Commission as part of our annual
decoupling rate adjustment filings and therefore could not also be filed with this Application.
AVISTA'S FCA EXTENSION APPLICATION PAGE 4