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HomeMy WebLinkAbout20250228AVU to Staff 5 Attachment A - 2024 WA 2nd Qtr - Combined.pdf Service Date: May 23,2024 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Petition of DOCKET UE-240077 AVISTA CORPORTATION, d/b/a ORDER 01 AVISTA UTILITIES Petitioner, GRANTING EXEMPTION FROM RULE Seeking Exemption from the Provisions of WAC 480-109-210(2)(a)(i)(B) and(E) Relating to Renewable Portfolio Standard Reporting Requirement use of the Utility's Most Recent Integrated Resource Plan Acknowledged by the Commission. BACKGROUND 1 On February 6, 2024, Avista Corporation d/b/a Avista Utilities (Avista or Company) filed with the Washington Utilities and Transportation Commission (Commission) a petition requesting a five-year exemption from WAC 480-109-210(2)(a)(i)(B) and(E) (Petition). 2 WAC 480-109-210(2)(a)(i)(B) and(E) requires electric companies to utilize the most recent electric integrated resource plan(IRP) acknowledged by the Commission to identify the eligible resource capacity value and noneligible levelized capacity costs in renewable portfolio standard(RPS) reporting. 3 On July 25, 2023, in Dockets UE-200301, UE-200304, and UE-200420 the Commission issued a Notice of Change to Electric Integrated Resource Plan Process stating that the Commission would no longer be acknowledging electric IRPs. 4 In the Petition, Avista stated that because the Commission no longer regularly acknowledges electric IRPs, following the requirements of WAC 480-109- 210(2)(a)(i)(B) and(E)will limit Avista's ability to provide the most up-to-date information in the annual RPS report. 5 Commission staff(Staff)reviewed the request and recommended granting Avista's Petition and the Company's request for exemption, with the understanding that it is in the DOCKET UE-240077 PAGE 2 ORDER 01 public interest to ensure that the Company is providing the most up-to-date information in their annual RPS report by calculating the eligible resource capacity value and noneligible levelized capacity cost based on the most recently filed electric IRP or the most recent IRP Progress Report. DISCUSSION 6 We grant Avista's request for an exemption from WAC 480-109-210(2)(a)(i)(B) and(E). Pursuant to WAC 480-07-110, the Commission may, in response to a request or on its own motion, grant an exemption from its own rules when"consistent with the public interest, the purposes underlying regulation, and applicable statutes."' We agree with Staff that Avista's request is reasonable to ensure that the Company is providing the most up-to-date information in their annual RPS report by calculating the eligible resource capacity value and noneligible levelized capacity cost based on the most recently filed electric IRP or the most recent IRP Progress Report. Accordingly, we find that granting the Company's request for an exemption is in the public interest and consistent with both the purposes underlying the rule and applicable statutes. FINDINGS AND CONCLUSIONS 7 (1) The Commission is an agency of the State of Washington vested by statute with the authority to regulate the rates, rules, regulations,practices, accounts, securities, transfers of property and affiliated interests of public service companies, including electric companies. 8 (2) Avista is engaged in the business of providing electric services within the state of Washington and is a public service company subject to Commission jurisdiction. 9 (3) Avista is subject to WAC 480-109-210(2)(a)(i)(B) and(E), which requires electric companies to utilize the most recent electric IRP acknowledged by the Commission to identify the eligible resource capacity value and noneligible levelized capacity costs in RPS reporting. 10 (4) Under WAC 480-109-030, the Commission may grant an exemption from the provisions of any rule in WAC 480-109, if consistent with the public interest, the purposes underlying regulation and applicable statutes. See also WAC 480-07-110. 'Accord WAC 480-109-030. DOCKET UE-240077 PAGE 3 ORDER 01 11 (5) This matter came before the Commission at its regularly scheduled meeting on May 23, 2024. 12 (6) After review of the Petition filed in Docket UE-240077 by Avista on February 6, 2024, and giving due consideration, the Commission finds that the exemption is in the public interest and is consistent with the purposes underlying the regulation and applicable statutes and should be granted. ORDER THE COMMISSION ORDERS: 13 (1) After the effective date of this Order, Avista Corporation d/b/a Avista Utilities is granted a five-year exemption from WAC 480-109-210(2)(a)(i)(B) and(E), in order to use the most recently filed electric Integrated Resource Plan or the most recent Integrated Resource Plan Progress Report for the basis of determining eligible and ineligible leveled capacity costs. 14 (2) The Commission retains jurisdiction over the subject matter and Avista Corporation d/b/a Avista Utilities to effectuate the provisions of this Order. The Commissioners, having determined this Order to be consistent with the public interest, directed the Secretary to enter this Order. DATED at Lacey, Washington, and effective May 23, 2024. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION JEFF KILLIP Executive Director and Secretary Service Date: May 9,2024 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Petition of the DOCKET UE-220350 AVISTA CORPORATION d/b/a AVISTA ORDER 02 UTILITIES, Petitioner, GRANTING PETITION TO DEFER COSTS ASSOCIATED WITH THE For an Order Approving Deferral of Costs CLEAN ENERGY Associated with the Clean Energy IMPLEMENTATION PLAN AND Implementation Plan and Named NAMED COMMUNITIES Communities Investment INVESTMENT FUND BACKGROUND 1 On May 19, 2022,Avista Corporation d/b/a Avista Utilities (Avista or Company) filed with the Washington Utilities and Transportation Commission(Commission) a petition seeking an Accounting Order under WAC 480-07- 370(3). The Company requests the Commission's approval to defer costs associated with the implementation of its 2021 Clean Energy Implementation Plan(CEIP) as required by the Clean Energy Transformation Act (CETA)pursuant to RCW 19.405.060 and per WAC 480-100-640. 2 On June 23, 2022, the Commission issued Order 01 in Docket UE-210628, granting approval ofAvista's CEIP, subject to 38 conditions. Condition 37 indicates the Company "will file a separate accounting petition to address deferred accounting for costs associated with the 2021 CEIP until they are reviewed and deemed prudent for recovery or not by the Commission."1 3 On July 8, 2022, after conferring with Commission Staff(Staff),Avista filed with the Commission an amended petition updating the interest rate from the Company's authorized rate of return to the then-published Federal Energy Regulatory Commission (FERC) interest rate and changing from FERC Account 182.3, Other Regulatory Assets, to FERC Account 186, Miscellaneous Deferred Debits. ' See UE-210628,Order 01,Appendix A,p. 7 137. DOCKET UE-220350 PAGE 2 ORDER 02 4 On July 28, 2022, the Commission issued Order 01 in Docket UE-220350 (Order 01), granting approval to Avista's amended petition. 5 In Avista's approved, amended petition, the Company proposed to file annual tariff revisions to recover the deferred costs associated with the Named Communities Investment Fund(NCIF). These revisions will be adjusted annually on August 1, aligning with several other existing rate filings by the Company. Regarding other new costs associated with implementing the CEIP, the Company is permitted to defer them until such time that it can propose their recovery in base rates during its next general rate case, along with the recovery of the deferred costs. 6 On March 25, 2024,Avista filed with the Commission a Petition for an Amended Order for Continued Deferred Accounting (Petition). This is the Petition at issue in this Order. The Company proposes amending Order 01 to permit Avista to (1) defer costs associated with implementation of its 2021 CEIP beyond December 21, 2024, (2) defer costs associated with implementation of future CEIPs, and(3)treat the approved deferral as a balancing account when the Company seeks to recover the deferral. 7 Due to deferred NCIF costs being minimal through mid-2023, the Company did not propose to begin amortization of deferred costs on August 1, 2023. Moreover, considering the relatively minimal and uncertain nature of the other new costs associated with implementing the 2021 CEIP, the Company did not include them in its pending general rate case (Dockets UE-240006 and UG-240007). 8 Staff reviewed the Company's Petition and recognized that circumstances are uncertain and beyond the Company's control. Staff recommends that the Commission grant the Petition because Avista has demonstrated extraordinary circumstances and future uncertainty, which is the Commission's standard for authorizing deferred accounting. DISCUSSION 9 In Docket UE-220350, Order 01, only the deferral of costs unrelated to the NCIF incremental CEIP implementation costs were approved through December 21, 2024. Given the relatively insignificant amount of these costs at the time Avista prepared the current general rate case, the Company did not include these CEIP implementation costs in the case.As a result, after December 21, 2024,Avista has no approved accounting treatment for 2021 CEIP implementation cost and no ability to recover future implementation costs beyond December 21, 2024. DOCKET UE-220350 PAGE 3 ORDER 02 10 In addition to deferring costs associated with implementing the 2021 CEIP,Avista also requests to utilize the approved deferral for future CEIP implementation costs beyond 2025. The Company requests to extend this deferral process into the future, whereby all incremental CEIP costs, including those related to the NCIF, will be deferred, and recovered through a single accompanying tariff rider. 11 Staff believes that the implementation costs of the CEIP have resulted in extraordinary circumstances that justify granting the Petition. We agree.As Staff observes, however, it is noted that the Commission has not made a determination regarding prudency at this juncture. The Commission will evaluate whether Avista prudently incurred these costs as part of its CEIP implementation within the context of the Company's next general rate case. 12 Accordingly,Avista's Petition for Deferred Accounting for costs the Company attributes to implementing its CEIP, associated CEIP conditions, and Named Communities Investment Fund in Docket UE-220350 is granted effective from the date ofAvista's CEIP approval, June 16, 2022. FINDINGS AND CONCLUSIONS 13 (1) The Commission is an agency of the State of Washington vested by statute with the authority to regulate the rates, rules, regulations,practices, accounts, securities, transfers of property and affiliated interests of public service companies, including electric companies. 14 (2) Avista is an electric company and a public service company subject to Commission jurisdiction. RCW 80.04.010. 15 (3) WAC 480-07-370(3) allows companies to file petitions including that for which Avista seeks approval. 16 (4) Staff has reviewed the Petition in Docket UE-220350 filed on March 25, 2024. 17 (5) Staff believes the proposed accounting order Avista requests is reasonable and should be granted. The request allows Avista to accurately track costs incurred to implement the Company's approved CEIP, particularly regarding the DOCKET UE-220350 PAGE 4 ORDER 02 establishment of the Named Communities Investment Fund, and associated CEIP conditions. 18 (6) This matter came before the Commission at its regularly scheduled meeting on May 9, 2024. 19 (7) After reviewing Avista's Petition filed in Docket UE-220350 on March 25, 2024, and giving due consideration to all relevant matters and for good cause shown, the Commission finds that the Petition should be granted. 20 (8) Paragraph 10 of Order 01 in this docket should accordingly be amended to add the following language: "Avista is permitted to (1) defer costs associated with implementation of its 2021 CEIP beyond December 21, 2024, (2) defer costs associated with implementation of future CEIPs, and(3)treat the approved deferral as a balancing account when the Company seeks to recover the deferral." ORDER THE COMMISSION ORDERS: 21 (1) Avista Corporation d/b/a Avista Utilities'request to defer non-capital costs incurred while implementing its approved CEIP and associated CEIP conditions, as reflected in its Petition is granted. 22 (2) Paragraph 10 of Order 01 in this docket is amended as set forth in paragraph 20 of this Order. 23 (3) This Order shall not affect the Commission's authority over rates, services, accounts,valuations, estimates, or determination of costs, on any matters that may come before it. Nor shall this Order granting Petition be construed as an agreement to any estimate or determination of costs, or any valuation of property claimed or asserted. 24 (4) The Commission retains jurisdiction over the subject matter and Avista Corporation d/b/a Avista Utilities to effectuate the provisions of this Order. DOCKET UE-220350 PAGE 5 ORDER 02 The Commissioners, having determined this Order to be consistent with the public interest, directed the Secretary to enter this Order. DATED at Lacey, Washington, and effective May 9, 2024. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION Jeff Killip Executive Director and Secretary Service Date: April 22,2024 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of DOCKET UE-230405 AVISTA CORPORATION d/b/a ORDER 01 AVISTA UTILITIES, Renewable Energy Target Progress APPROVING COMPLIANCE WITH Report under RCW 19.285.070 and WAC ELIGIBLE RENEWABLE ENERGY 480-109-210 TARGET REPORTING REQUIREMENTS FOR 2023 BACKGROUND 1 The Energy Independence Act(EIA or Act)' requires qualifying electric utilities to obtain certain percentages of their electricity from eligible renewable resources. The Washington Utilities and Transportation Commission(Commission) enforces compliance with the EIA by investor-owned utilities.2 Ultimately, the Commission must determine "whether the utility has generated, acquired or arranged to acquire enough renewable energy credits or qualifying generation to comply with its renewable resource target."' 2 The Commission has implemented these requirements by establishing a two-step compliance process.4 Because a utility may comply with its renewable portfolio standards (RPS) obligation by using renewable energy credits (RECs) acquired in the year after the target year,ultimate compliance for 2023, for example, may be demonstrated as late as June 1, 2025. Accordingly, there will be two Commission decisions for each year's compliance: (1) a determination that the Company has enough resources to meet the 15 percent target; and(2) the retrospective compliance decision. 3 The filing before the Commission in this Docket is the initial resource-adequacy filing made by Avista Corporation d/b/a Avista Utilities (Avista or Company) for its 2023, ' Chapter 19.285 RCW. 2 RCW 19.285.060(6). 3 WAC 480-109-210(3)(b). 4 WAC 480-109-210(1)and(6). DOCKET UE-230405 PAGE 2 ORDER 01 obligation. The Commission will consider Avista's compliance with its 2023 target when Avista requests such a finding. Consistent with the requirements of WAC 480-109- 210(6), the Company must make this request through a filing in this Docket no later than June 1, 2025. 4 On May 31, 2023, Avista filed with the Commission its 2023 Annual Renewable Portfolio Standard Report(RPS Report),which identified a 2023 target of 871,917 megawatt-hours (MWh). Table 1,below, summarizes Avista's 2023 target and the total amount of resources that the Company had acquired by January 1, 2023: Table 1: Avista's 2023 Renewable Resource Target and Compliance Plan 2023 2023 Eligible Increment Wind Biomass Target Solar Renewable al Hydro (MWh) (MWh) (MWh) (MWh) (MWh) Resources (MWh) 871,917 171,164 899,475 297,570 1,090 1,369,299 5 Avista seeks an order from the Commission confirming that the Company has complied with the Commission's EIA reporting requirements, accepting the Company's calculations and eligibility of the renewable resources identified in the RPS Report for 2023. 6 On June 12, 2023, the Commission issued a Notice inviting interested persons to file written comments on Avista's RPS Report. During the comment period, no comments were received. 7 Based on the information that the Company provided in its RPS Report and supplemental filing, Staff believes that Avista correctly calculated its 2023 RPS target, and that it has acquired sufficient resources to exceed that target. 5 WAC 480-109-200(7)(a)requires authorization from the Commission for a utility to switch hydro calculation methods. DOCKET UE-230405 PAGE 3 ORDER 01 8 Staff recommends that the Commission issue an order in this Docket determining that: (1) Avista's 2023 renewable energy target is 871,917 MWh. (2) Avista has demonstrated that,by January 1, 2023, it acquired 1,369,299 MWh of eligible renewable resources sufficient to supply 15 percent of its load for 2023. (3) Avista has complied with the June 1, 2023, reporting requirements pursuant to WAC 480-109-210. DISCUSSION 9 The Commission accepts Avista's calculation of 871,917 MWh as the Company's renewable energy target for 2023 and determines that Avista has identified sufficient resources to be able to meet that target. The Commission will make its final determination about whether Avista has met its 2023 target when the Company requests such a finding, no later than June 1, 2025. To assist Staff with determining whether Avista's resources meet EIA eligibility requirements, Avista must provide details about which certificates were used for its various renewable energy programs, as required by WAC 480-109-210(2)(d)(i), in its final compliance report for 2023. FINDINGS AND CONCLUSIONS 10 (1) The Commission is an agency of the State of Washington vested by statute with the authority to regulate the rates, rules, regulations,practices, accounts, securities, transfers of property and affiliated interests of public service companies, including electric companies. 11 (2) Avista is a natural gas company and a public service company subject to Commission jurisdiction. 12 (3) Avista serves more than 25,000 customers within the State of Washington and is a "qualifying utility"within the meaning of RCW 19.285.030(19). DOCKET UE-230405 PAGE 4 ORDER 01 13 (4) Avista has properly calculated its renewable energy target for 2023 to be 871,917 MWh. 14 (5) By January 1, 2023,Avista had acquired sufficient eligible renewable resources to supply at least 15 percent of its load for the remainder of 2023. 15 (6) Avista has met the reporting requirements of RCW 19.285.070 and WAC 480- 109-210. These reporting requirements include Avista's plan for meeting its RPS obligation for the remainder of 2023. 16 (7) Pursuant to WAC 480-109-210(4), Avista must post and maintain all RPS Reports on its website, and provide a report to any person on request, within 30 days of the date of this Order. 17 (8) Pursuant to WAC 480-109-210(5), Avista must provide a summary of its RPS Report to its customers,by bill insert or other suitable method,within 90 days of the date of this Order. 18 (9) Pursuant to WAC 480-109-210(6), Avista must file a report no later than June 1, 2025,that the lists certificate numbers in Western Renewable Energy Generation Information System for every megawatt-hour and renewable energy credit that Avista retired to meet the January 1, 2023, target. 19 (10) This matter came before the Commission at its regularly scheduled meeting on August 24, 2023. 20 (11) After reviewing Avista's Petition and RPS Report and giving due consideration to all relevant matters and for good cause shown, the Commission accepts Avista's calculation of 871,917 MWh as the Company's renewable energy target for 2023 and adopts Staff s recommendations as set forth in paragraph 9 of this Order. ORDER THE COMMISSION ORDERS: 21 (1) The Commission accepts the calculation of 871,917 MWh as the 2023 renewable energy target for Avista Corporation d/b/a Avista Utilities. 22 (2) Avista Corporation d/b/a Avista Utilities has identified eligible renewable resources sufficient to supply at least 15 percent of its load for 2023. DOCKET UE-230405 PAGE 5 ORDER 01 23 (3) Avista Corporation d/b/a Avista Utilities has complied with the June 1, 2023, reporting requirements pursuant to WAC 480-109-210. 24 (4) Avista Corporation d/b/a Avista Utilities' final compliance report must list certificate numbers for every renewable energy credit that Avista Corporation d/b/a Avista Utilities retired in the Western Renewable Energy Generation Information System and details about which certificates were used for its voluntary renewable energy programs in 2023. 25 (5) The Commission Secretary is authorized to accept or approve a filing that complies with the requirements of this Order. DATED at Lacey, Washington, and effective April 22, 2024. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION DAVE W. DANNER, Chair ANN E. RENDAHL, Commissioner MILTON H. DOUMIT, Commissioner Service Date: April 22, 2024 ROE STAT,s o� 0 4' a _ x s Q$ 3 sky 1889 STATE OF WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION 621 Woodland Square Loop S.E. • Lacey, Washington 98503 P.O. Box 47250• Olympia, Washington 98504-7250 (360)664-1160 •TTY 1-800-833-6384 or 711 April 22, 2024 NOTICE CORRECTING ORDER 01 Re:In the Matter of Avista Corporation d/b/a Avista Utilities, Renewable Energy Target Process Report Under RCW 19.285.070 and WAC 480-109-210, Docket UE-230405 TO ALL PARTIES: On August 24, 2023, the Washington Utilities and Transportation Commission(Commission) issued Order 01 Approving Renewable Energy Target Reporting Requirement for 2023 (Order 01). It has come to the Commission's attention that Order 01 incorrectly stated the date for filing a report listing certificate numbers in Western Renewable Energy Generation Information System for every megawatt-hour and renewable energy credit that Avista retired to meet the January 1, 2023, target and requesting a determination of compliance with its 2023 renewable energy target as June 1, 2024. The correct date is June 1, 2025. A corrected order 01 is attached. Additionally, Findings and Conclusions 7 and 8 have been updated and expanded to align with the language in WAC 480-109-210(4) and WAC 480-109-210(5). Those paragraphs are hereby corrected as follows: 16 (7) Pursuant to WAC 480-109-210(4), Avista must post and maintain all RPS Reports on its website, and provide a report to any person on request, within 30 days of the date of this Order. 17 (8) Pursuant to WAC 480-109-210(5), Avista must provide a summary of its RPS Report to its customers,by bill insert or other suitable method, within 90 days of the date of this Order. lsl Michael Howard MICHAEL HOWARD Director, Administrative Law Division DOCKETS UE-230405 PAGE 2 ATTACHMENT A Service Date: April 12, 2024 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of DOCKETS UE-240006 and UG-240007 (Consolidated) AVISTA CORPORATION, d/b/a AVISTA UTILITIES ORDER 05 Consolidated Electric and Natural Gas GRANTING REQUESTS FOR CASE General Rate Case Certification CERTIFICATION BACKGROUND 1 On January 18, 2024, Avista Corporation d/b/a Avista Utilities (Avista or Company) filed with the Washington Utilities and Transportation Commission (Commission) revisions to its electric service tariff, Tariff WN U-28, and its natural gas service tariff, Tariff WN U- 29, in Dockets UE-240006 and UG-240007,respectively. The purpose of these filings is to increase rates and charges for the electric and natural gas services provided to customers in the state of Washington. 2 Avista's filing proposed rate increases to its electric and natural gas rates based on a proposed rate of return of 7.61 percent (with 48.5 percent equity and 10.40 percent return on equity). The Company also proposes a Two-Year Rate Plan, which would begin with new base rates effective in December 2024 (Rate Year 1) and December 2025 (Rate Year 2). 3 For Rate Year 1, Avista proposes an overall increase to its electric base revenue to $77.1 million (13.0 percent) and to its natural gas base revenue to $17.3 million (13.6 percent). For Rate Year 2, the Company proposes overall increases to its electric base revenue to $53.7 million (11.7 percent) and to its natural base revenue to $4.6 million (3.2 percent). 4 On January 19, 2024, Avista filed a Motion for Partial Waiver of WAC-07-510, which requires the filing of paper copies within one business day of the electronic filing made by a party in a proceeding. The Commission granted Avista's Motion for Partial Waiver of WAC-7-510. DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 2 ORDER 05 5 On January 31, 2024, the Commission entered Order 01 consolidating dockets UE-240006 and UG-240007, suspending the tariffs, and setting the matters for adjudication. 6 On February 20, 2024, the Commission convened a virtual prehearing conference before Administrative Law Judges James E. Brown II and Paige Doyle. 7 On February 27, 2024, the Commission entered Order 02, Prehearing Conference Order and Notice of Hearing. The Commission granted petitions to intervene from the Alliance of Western Energy Consumer(AWEC), Walmart, Inc. (Walmart), Seirra Club,NW Energy Coalition, and The Energy Project(TEP) and noticed an evidentiary hearing for September 30, 2024, at 9:00 a.m., continuing if needed to October 1, 2024. 8 Pursuant to Washington Administrative Code (WAC)480-07-370(3), Order 02 issued by the Commission in Docket No. U-210595, and Articles 5.2.1 and 6.2 of the Washington Extended Interim Participatory Funding Agreement(Extended Interim Agreement), AWEC and NWEC filed a Petition for Case Certification (Petition), and along with TEP, also filed a Notice of Intent to Request Fund Grant (Notice). 9 On February 14, 2024, AWEC filed a Petition for Case Certification and Notice of Intent to Request a Fund Grant. AWEC provided that its request for fund grant be collected from Avista's Customer Representation Sub-fund. AWEC submits that this proceeding, Avista's 2024 General Rate Case, is an"eligible proceeding"under the Extended Interim Agreement. 10 Citing Sections 5.2.1 and 6.2 of the Extended Interim Agreement, AWEC requests case- certification. AWEC submits that it is a non-profit organization; that it represents "broad customer interests," specifically the class of industrial customers that obtain electric and gas service from Avista;1 and that AWEC has a history of effective representation in regulatory proceedings over the past two decades. AWEC submits that it is the only party that can sufficiently represent the interests of industrial customers. Lastly, AWEC submits that its participation will benefit the public interest and will not unduly delay the proceeding. 11 On February 15, 2024,NWEC filed a Request for Case Certification and Notice of Intent to Request Funding Grant. NWEC intends to request a fund grant from Avista's Customer Representation Sub-Fund. NWEC submits that it is a non-profit organization and that it is an alliance of more than 100 organizations, including more than 40 organizations in 1 The Extended Interim Agreement is authorized by RCW 80-28-430(1)which provides that "broad customer interests"also includes industrial customers. DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 3 ORDER 05 Washington state, and individual members. NWEC focuses on energy efficiency, renewable energy, low-income and consumer protections, and informed public involvement in renewable energy. NWEC also focuses on issues that have a material impact on vulnerable populations and highly impacted communities. NWEC routinely participates in Commission proceedings involving Avista,participating in advisory groups, submitting informal input and formal comments on Avista's various programs, and intervening in previous Avista general rate case proceedings. 12 On February 16, 2024, TEP also filed a Request for Case Certification and Notice of Intent to Request a Fund Grant. TEP intends to request a fund grant from Avista's Customer Representation Sub-Fund. TEP submits that it meets the criteria for case certification. TEP submits that it is a non-profit organization; that it represents "broad customer interests," including thousands of low-income customers in Washington, and that TEP has a history of effective representation in regulatory proceedings over the last two decades. TEP provides that it is the only party focusing solely on the interests of low- income customers and that its participation will not unduly delay the proceeding. DISCUSSION 13 Pursuant to Revised Code of Washington (RCW) 80.28.430,utilities must enter into funding agreements with organizations that represent broad customer interests. The Commission is directed to determine the amount of financial assistance, if any, that may be provided to any organization; the way the financial assistance is distributed; the way the financial assistance is recovered in a utility's rates; and other matters necessary to administer the agreement.2 14 On November 19, 2021, the Commission issued a Policy Statement on Participatory Funding for Regulatory Proceedings (Policy Statement).3 The Commission provided "high-level guidance regarding the amount of financial assistance that may be provided to organizations, the manner in which it is distributed to participants and recovered in the rates of gas or electrical companies, and other matters necessary to administer agreements."4 2 RCW 80.28.430(2). 3 In the Matter of the Commission's Examination of Participatory Funding Provisions for Regulatory Proceedings, Docket U-210595 (November 19, 2021). 4 Id. 13. DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 4 ORDER 05 15 On February 24, 2022, the Commission issued Order 01, Approving Agreement with Modifications (Order 01).5 The Commission approved the Extended Interim Agreement filed by the parties on February 23, 2022, subject to certain modifications, and adopted the Interim Agreement as Appendix A to the Order. Among other points, the Commission clarified that it is not bound by the timeframes set forth in the Extended Interim Agreement.6 16 In relevant part, Section 5.2 of the Extended Interim Agreement provides that the Commission will case-certify an organization that is not a for-profit or governmental entity; represents "broad customer interests;" demonstrates it is able to "effectively represent the particular customers it seeks to represent;" demonstrates that no other case- certified stakeholder adequately represents these interests or that the proceeding will benefit from the organization's participation; and establishes that it will not unduly delay the proceeding.7 17 In this proceeding, the Commission is reviewing Avista's 2024 General Rate Case for its electric and natural gas services. The Commission determines that Avista's 2024 General Rate Case is considered an"eligible proceeding"within the meaning of the Extended Interim Agreement,because Avista is a Participating Public Utility under the Extended Interim Agreement,' thus appropriate for participatory funding.9 We continue on to address each Request for Case Certification and Notice of Intent to Seek Funding. 18 AWEC. AWEC is a non-profit organization that represents broad customer interests. RCW 80-28-430(l)provides that"broad customer interests" also includes industrial customers. The Commission also acknowledges that in other Avista proceedings, AWEC was found to represent broad industrial customers. We therefore find that AWEC represents broad customer interests. 19 AWEC demonstrates that it can effectively represent Avista's industrial customers. This is evidenced through AWEC's granted intervention and full participation in all of Avista's prior general rate cases over the past two decades. AWEC has also successfully advocated to lower energy costs for Avista's customers, including industrial consumers. 5 In the Matter of the Petition of Puget Sound Energy, et al.,Docket U-210595 Order 01 (February 24,2022). 6 E.g.,Id. Extended Interim Agreement § 5.2. a Extended Interim Agreement,Article 1(g). 9 See Extended Interim Agreement § 1(c) (defining"Eligible Proceeding"). DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 5 ORDER 05 20 The Commission agrees that the public interest is served by AWEC's participation and that no other party can adequately represent the interests of industrial customers. We therefore grant AWEC's Request for Case Certification. 21 NWEC.NWEC is also a non-profit organization that represents broad customer interests. In its Policy Statement, the Commission found that the term"broad customer interests" should not be limited to organizations representing larger groups of customers.'0 The Commission specifically agreed with NWEC's comments that an organization representing specific customers may implicate broader public interests." We find that NWEC meets this standard. NWEC has appeared before the Commission on numerous occasions.12 22 NWEC demonstrates that it can effectively represent the particular customers it seeks to represent. NWEC routinely appears before the Commission without causing undue delays.13 We agree that the public interest is served by NWEC's participation. We therefore grant NWEC's Request for Case Certification. 23 TEP. TEP is a non-profit organization that represents broad customer interests. RCW 80.28.430(1)provides that organizations representing "broad customer interests" includes organizations representing"low-income" customers. TEP also demonstrates that it can effectively represent the particular customers it seeks to represent,which are low-income customers and vulnerable populations. TEP provides that it is the only party focusing solely on the interests of low-income customers. TEP routinely appears before the Commission and participates in Commission rate proceedings and rulemakings over the past two decades.14 We agree that the public interest is served by TEP's participation and that TEP establishes it will not unduly delay the proceeding. We therefore grant TEP's Request for Case Certification. 10 Policy Statement¶28. 11 Id. 12 NWEC's Request for Certification at 2. 13 See NWEC's Request for Case Certification at 3. 14 TEP's Request for Case Certification¶4(c). DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 6 ORDER 05 ORDER THE COMMISSION ORDERS: 24 (1) The Alliance of Western Energy Consumers' Request for Case Certification is GRANTED. 25 (2) The NW Energy Coalition's Request for Case Certification is GRANTED. 26 (3) The Energy Project's Request for Case Certification is GRANTED. Dated at Lacey, Washington, and effective April 12, 2024. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION lsl James E. Brown II JAMES E. BROWN II Administrative Law Judge NOTICE TO PARTIES: This is an Interlocutory Order of the Commission. Administrative review may be available through a petition for review, filed within 10 days of the service of this Order pursuant to WAC 480-07-810. Service Date: April 12, 2024 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of DOCKETS UE-240006 and UG- 240007 (Consolidated) AVISTA CORPORATION, d/b/a AVISTA UTILITIES ORDER 06 Consolidated Proposed Budgets and Fund Grants APPROVING PROPOSED BUDGETS AND FUND GRANTS BACKGROUND I On January 18, 2024, Avista Corporation d/b/a Avista Utilities (Avista or Company) filed with the Washington Utilities and Transportation Commission(Commission)revisions to its electric service tariff, Tariff WN U-28, and its natural gas service tariff, Tariff WN U- 29, in Dockets UE-240006 and UG-240007,respectively. The purpose of these filings is to increase rates and charges for the electric and natural gas services provided to customers in the state of Washington. 2 On February 20, 2024, the Commission convened a virtual prehearing conference before Administrative Law Judges James E. Brown II and Paige Doyle. 3 On February 27, 2024, the Commission entered Order 02, Prehearing Conference Order and Notice of Hearing. The Commission granted petitions to intervene from the Alliance of Western Energy Consumers (AWEC), Seirra Club,NW Energy Coalition (NWEC), and The Energy Project(TEP) and noticed an evidentiary hearing for September 30, 2024, at 9:00 a.m., continuing if needed to October 1, 2024. 4 On April 12, 2024, the Commission entered Order 05, Granting Requests for Case Certification(Order 05). The Commission granted case-certified status to AWEC, NWEC, and TEP. The Commission also found that each of these organizations properly filed a notice of intent to seek funding. s By March 21, 2024, each of the three case-certified parties filed Proposed Budgets and Requests for Fund Grants. The details of the parties' requests are discussed in detail below. DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 2 ORDER 06 DISCUSSION 6 Pursuant to RCW 80.28.430, utilities must enter into funding agreements with organizations that represent broad customer interests. The Commission is directed to determine the amount of financial assistance, if any, that may be provided to any organization; the way the financial assistance is distributed; the way the financial assistance is recovered in a utility's rates; and other matters necessary to administer the agreement.1 7 On November 19, 2021,the Commission issued a Policy Statement on Participatory Funding for Regulatory Proceedings (Policy Statement).2 The Commission provided "high-level guidance regarding the amount of financial assistance that may be provided to organizations, the manner in which it is distributed to participants and recovered in the rates of gas or electrical companies, and other matters necessary to administer agreements."3 The Commission indicated that the Policy Statement was an evolving document, saying "as we implement the first round of funding arrangements,we look forward to what we expect will be many lessons learned. These lessons will inform future iterations of Washington's participatory funding program, including the possibility of a rulemaking to codify best practices into Commission rules."4 8 On February 24, 2022, the Commission issued Order 01, Approving Agreement with Modifications (Order 01).5 The Commission approved the Interim Agreement filed by the parties on February 14, 2022, subject to certain modifications, and adopted the Interim Agreement as Appendix A to the Order. Among other points, the Commission clarified that it is not bound by the timeframes set forth in the Interim Agreement.6 9 In relevant part, the Interim Agreement requires that Proposed Budgets include a statement of the work to be performed, a description of the general areas to be investigated, an identification of the specific sub-fund at issue, and a budget showing any 1 RCW 80.28.430(2). 2 In the Matter of the Commission's Examination of Participatory Funding Provisions for Regulatory Proceedings, Docket U-210595 (November 19,2021). 3 Id. ¶3. 4 Id. ¶ 17. 5 In the Matter of the Petition of Puget Sound Energy, et al.,Docket U-210595 Order 01 (February 24,2022). 6 Id. DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 3 ORDER 06 estimated attorney fees or consultant fees.' If the Commission receives one or more Proposed Budgets, it will"determine the amount, if any, of Fund Grants that will be made available . . ."8 The Commission may make this determination based on the following factors: (a)the breadth and complexity of the issues; (b)the significance of any policy issues; (c)the procedural schedule; (d)the dollar magnitude of the issues at stake; (e)the participation of other parties that adequately represent the interests of customers; (f)the amount of funds being provided by the applicant intervenor, if any; (g)the qualifications of the party and experience before the Commission; (h)the level of available funds in the Fund account or accounts involved; (i) other Eligible Proceedings for Funds in which stakeholders may seek additional Fund Grants from the same Sub-Fund; or (j) any other factors the Commission deems relevant."9 10 The Commission may reject, in whole or in part, a request for Fund Grant based on these factors.10 The Commission may place reasonable conditions on Fund Grants, and it may amend Fund Grants on a prospective basis.I I 11 In this case, each of the three case-certified parties filed Proposed Budgets. According to the Section 4.2 of the Interim Agreement provides that Avista has a Customer Representation Sub-Fund of$200,000. TEP and AWEC have each requested $85,000 and NWEC has requested $30,000 of Fund Grants under the Customer Representation Sub- Fund. The total requested funding from the three case-certified parties amounts to $200,000, which matches exactly with the funding available in Avista's Customer Representation Sub-Fund. We address each Proposed Budget in turn, considering them in Interim Agreement § 6.5. 8 Id. 9 Id. 10 Id. 11 Id. DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 4 ORDER 06 light of the content requirements set forth in Section 6.3 and the various factors set forth in Section 6.5 of the Interim Agreement. 12 TEP. On March 21, 2024, TEP filed a Proposed Budget. TEP requested a Fund Grant pursuant to the Interim Agreement to partially offset the costs of its participation. TEP noted that it may investigate all matters that have an impact on low-income customers. Matters of interest to TEP include multiyear rate plan, low-income assistance program funding and design, low-income weatherization, billing, credit and collection issues, arrearage management, performance-based regulations and performance measures, cost of service, rate spread, rate design, decoupling, renewables, electric vehicles, distributed generation, and power costs. TEP requests a total award of$85,000 from Avista's Customer Representation Sub-Fund. This was based on estimated consultant/expert witness fees of$20,000 and attorney fees of$65,000. 13 After considering the various factors set forth in Section 6.5 of the Interim Agreement, we approve TEP's Proposed Budget of$85,000. 14 Several Section 6.5 factors weigh in favor of TEP's request. We observe that TEP is contributing from its own funds to participate, and TEP's Fund Grant only seeks to partially offset these costs. TEP is an"incumbent" organization with a history of appearing before the Commission,12 and it seeks to investigate several issues in this proceeding. 15 The Commission observes that the total request presented in this proceeding would not exceed the remaining funds available in Avista's Customer Representation Sub-Fund. 16 The Commission therefore approves a total Fund Grant of$85,000 for TEP in this proceeding. 17 NWEC. On March 21, 2024,NWEC filed a Proposed Budget. NWEC requested a Fund Grant of$30,000 from the Customer Representation Sub-Fund to partially offset the costs of NWEC staff's participation and postage fees in this proceeding.NWEC does not request reimbursement for expert witnesses or attorney fees. NWEC plans to investigate Avista's compliance with Washington's clean energy and equity laws and policies, and issues related to Avista's clean energy targets and associated analysis, customer-side resources, distribution system investment, energy efficiency assistance, and issues surrounding the equitable distribution of benefits. 12 Policy Statement¶ 18. DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 5 ORDER 06 18 We approve NWEC's Proposed Budget. Much like TEP, several factors weigh in favor of the reasonableness of NWEC's Proposed Budget. NWEC only requests a portion of its costs for participating in this proceeding and foresees that it will not require a Fund Grant for all other Avista Proceedings in 2024. NWEC has a history of appearing before the Commission, and it intends to investigate several complex issues in this proceeding, such as Avista's performance in relation to Washington's climate and clean energy policies as well as SB 5295. We also observe that NWEC proposes a conservative hourly rate for its staff time, with each of the proposed hourly rates for its staff falling under $66 an hour. 19 The Commission observes that the total request presented in this proceeding would not exceed the remaining funds available in Avista's Customer Representation Sub-Fund. The Commission therefore approves a Fund Grant for NWEC in the amount of$30,000 for this proceeding. 20 AWEC. On March 21, 2024, AWEC filed a Proposed Budget, requesting a Fund Grant of$85,000 from the Avista's Customer Representation Sub-Fund to partially offset the costs of its participation. AWEC provides that the $85,000 will be used towards attorney fees, help with preparing material for discovery in this proceeding, submit expert witness testimony and briefs, and attend all workshops, settlement conferences,public meetings, oral presentations, and hearings. AWEC intends to investigate various issues in this proceeding, including each economic and policy aspect of Avista's rate case filing, and general issues such as performance-based ratemaking, revenue requirement, and Avista's request for approval for its 2-Year Rate Plan Proposal. 21 We approve AWEC's Proposed Budget. The various factors set forth in Section 6.5 of the Interim Agreement generally weigh in favor of the organization's request. First,we observe that much like TEP and NWEC, AWEC only requests a portion of its costs. AWEC indicates that the organization plans to contribute its own funds towards participating, which according to AWEC's proposed budget is expected to contribute approximately $165,000 of its own funds, and also expects this budget will exceed significantly.13 22 The Commission therefore finds it appropriate to award AWEC a Fund Grant in the amount of$85,000. 23 Parties and stakeholders should be aware that, because of this Order, the total $200,000 provided in Avista's Customer Representation Sub-Fund has been fully allocated. 13 See Interim Agreement § 6.5(f) ("the amount of funds being provided by the applicant intervenor,if any"). DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 6 ORDER 06 However, the Commission observes that $100,000 remains in Avista's Prioritized Organizations Sub-Fund. 24 Finally, we remind all parties that neither case-certification nor approval of a Proposed Budget for a Fund Grant is a guarantee of reimbursement. We may determine that a party's request for reimbursement should be denied in part or in whole. The amount of funding in each Consumer Access Fund is limited, and it may be required for more than one Eligible Proceeding. These funds are also sourced from ratepayers, many of whom are faced with their own economic challenges. Thus, we expect all requests for reimbursement to contain great detail, including receipts, invoices, and any other documentation of costs for which recovery is requested. All requests must also include references to eligibility for expenses and any relevant portions of the Interim Agreement. To incentivize appropriate use and equitable distribution of Fund Grants, we will also carefully evaluate how recovered costs should be allocated to customers. For example, we will consider whether each case-certified parry's recovered costs should be allocated towards a specific customer class, a select group of classes, or across the entirety of customers. ORDER THE COMMISSION ORDERS: 25 (1) The Energy Project's Proposed Budget and Fund Grant is APPROVED, in the amount of$85,000. 26 (2) The NW Energy Coalition's Proposed Budget and Fund Grant is APPROVED, in the amount of$30,000. 27 (3) The Alliance of Western Energy Consumers' Proposed Budget and Fund Grant is APPROVED, in the amount of$85,000. Dated at Lacey, Washington, and effective April 12, 2024. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION /s/James E. Brown II JAMES E. BROWN II Administrative Law Judge DOCKETS UE-240006 and UG-240007(Consolidated) PAGE 7 ORDER 06 NOTICE TO PARTIES: This is an Interlocutory Order of the Commission. Administrative review may be available through a petition for review, filed within 10 days of the service of this Order pursuant to WAC 480-07-810.