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
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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.