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HomeMy WebLinkAbout20250228AVU to Staff 5 Attachment A - 2024 Q4 Rate Order Summary.pdf Summary of Rate Orders Avista Corporation Q4 2024 Purpose: This report summarizes the findings and rulings of the various state Utility Commissions as they apply to Avista Corporation. These rate orders are available from the different state Utility Commission websites that Avista provides service, including: • Idaho—www.puc.idaho.gov • Oregon—www.oregon.gov/puc • Washington—www.utc.wa.gov • Alaska—www.rca.alaska.gov • Montana—www.psc.mt.gov IDAHO Case No. AVU-E-24-08 Order No. 36335 (9/27/2024) On July 31, 2024, Avista Corporation ("Company") applied for(1) approval of Fixed Cost Adjustment ("FCA") deferrals for July 1, 2023, through June 30, 2024; (2) authorization to adjust its FCA rates for electric service from October 1, 2024, through September 30, 2025; and (3) approval of its proposed corresponding modifications to Tariff Schedule 75. The Company requested that the proposed FCA rates have an October 1, 2024, effective date and that the Commission process the request via Modified Procedure. On August 21, 2024, the Commission issued a Notice of Application and Notice of Modified Procedure, setting public comment and Company reply deadlines. Order No. 36299. Staff filed the only comments. Having reviewed the record, the Commission now issues this Order approving the Company's Application. Case Details - IPUC Case No. AVU-E-24-07 Order No. 36339 (10/1/2024) On July 31, 2024, Avista Corporation, doing business as Avista Utilities ("Company"), filed its annual Power Cost Adjustment("PCA") application ("Application"). The PCA is a mechanism used to track changes in revenues and costs associated with variations in hydroelectric generation, secondary prices, thermal fuel costs, and changes in power contract revenues and expenses. The present PCA surcharge is a rate of 0.4990 per kilowatt-hour,based on an overall surcharge of approximately $15.7 million, which was approved by the Commission in Order No. 35937, dated September 28, 2023, and is effective October 1, 2023, through September 30, 2024. 1 The Company requested that the Commission issue an order approving the level of power costs deferred in the rebate direction for the period of July 1, 2023, through June 30, 2024, and approving a PCA rebate rate of 0.205¢ per kilowatt-hour to be effective October 1, 2024. Application at 1. The Company represented that the proposed PCA rate adjustment of 0.205¢ per kilowatt- hour would rebate approximately $6.6 million to customers effective October 1, 2024. Id. at 3. The Company stated that the rebate is primarily associated with power supply costs that were lower than those included in retail rates, due to lower wholesale electric and natural gas prices, and that the net effect of the expiring surcharge, and the proposed rebate, is an overall decrease in revenue of approximately 7.4 percent, or $22.8 million. Id. Case Details - IPUC Case No. AVU-E-24-07 Order No. 36376 (10/30/2024) On July 31, 2024, Avista Corporation, doing business as Avista Utilities ("Company"), filed its annual Power Cost Adjustment("PCA") application ("Application"). The Company requested that the Commission issue an order approving the level of power costs deferred in the rebate direction for the period of July 1, 2023, through June 30, 2024, and approving a PCA rebate rate of 0.205¢ per kilowatt-hour to be effective October 1, 2024. Application at 1. On October 1, 2024, the Commission issued Order No. 36339 approving the Application, with modifications, and ordering the Company to submit a compliance filing with tariffs conforming with the order. Order No. 36339 at 5. On that same day, the Company submitted a compliance filing with updated tariffs. Case Details - IPUC Case No. AVU-E-24-01 Order No. 36378 (10/30/2024) On July 31, 2024, Avista Corporation ("Company") applied for authorization to adjust the Fixed Cost Adjustment ("FCA") rates for natural gas service from November 1, 2024, through October 31, 2025, ("Application"). The Company stated the current FCA rates as well as the proposed changes as illustrated below: Current Rate (Per Proposed Rate Proposed Rate Therm) (Per Therm) Change Residential Group Rebate of 1.219¢ Surcharge of 1.506¢ 2.3% increase (Schedule 101) Non-Residential Rebate of 0.632¢ Surcharge of 1.006 ¢ 1.7% increase Group (Schedules I I I and 112) 2 The Company requested a November 1, 2024, effective date and that the Idaho Public Utilities Commission ("Commission")process the request under Modified Procedure. The Commission issued a Notice of Application and set comment deadlines for public comments and the Company's reply. Order No. 36301. Staff filed the only comments. Having reviewed the record in this case the Commission issues this Order authorizing FCA rates included in the Company's Application. Case Details - IPUC Case No. AVU-E-24-02 Order No. 36379 (10/31/2024) On July 31, 2024, Avista Corporation d/b/a/Avista Utilities ("Company") applied for authority to change its rates for purchased gas costs and amortize its gas-related deferral balances. The Company requested processing of this matter via Modified Procedure with a November 1, 2024, effective date. On August 21, 2024, the Commission issued a Notice of Application and Notice of Modified Procedure setting a comment deadline for interested persons and a reply comment deadline for the Company. See Order No. 36298. The Commission Staff ("Staff') filed the only comments. We now issue this Order approving the Company's Application and corresponding proposed tariffs, as filed. Case Details - IPUC Case No. AVU-E-24-01 Order No. 36416 (12/9/2024) On August 16, 2024, Staff of the Idaho Public Utilities Commission("Staff') applied for an order(1)updating Surrogate Avoided Resource Model ("SAR Model") inputs; (2) making administrative changes to the SAR Model; and(3) approving SAR-based avoided cost rates included with the Application. Staff requested this matter be processed via Modified Procedure. On September 6, 2024, the Commission issued a Notice of Application,Notice of Intervention Deadline, and Notice of Modified Procedure—establishing a deadline for interested parties to intervene and setting deadlines for interested persons to comment and Staff to reply. Order No. 36314. No parties petitioned to intervene. Avista Corporation dba Avista Utilities, PacifiCorp dba Rocky Mountain Power, and Idaho Power Company (collectively the "Companies") all indicated they agreed with Staff s proposals. Staff did not reply. Having reviewed the record, the Commission now issues this Order approving the Staffs Application. Case Details - IPUC Case No. AVU-E-24-10 Order No. 36347 (10/10/2024) 3 On September 13, 2024, Avista Corporation("Company") filed a compliance filing ("Filing") requesting that the Idaho Public Utilities Commission("Commission") issue an order accepting its updated load forecast, natural gas price forecast, and contract information components used as inputs to calculate its incremental cost Integrated Resource Plan("IRP") avoided cost rates with an effective date of January 1, 2025. The Company requests processing of this matter via Modified Procedure. With this Order the Commission issues notice of the Company's Filing and establishes public comment and Company reply deadlines. Case Details - IPUC Case No. AVU-E-24-10 Order No. 36433 (12/27/2024) On September 13, 2024, Avista Corporation("Company") filed a compliance filing ("Filing") requesting that the Idaho Public Utilities Commission("Commission") issue an order accepting its updated load forecast, natural gas price forecast, and contract information components used as inputs to calculate its incremental cost Integrated Resource Plan ("IRP") avoided cost rates with an effective date of January 1, 2025. The Company requested processing of this matter via Modified Procedure. On October 10, 2024, the Commission issued a Notice of Filing and Notice of Modified Procedure, setting public comment and Company reply deadlines. Order No. 36347. Commission Staff("Staff') filed comments to which the Company replied with a short statement expressing support for Staff s recommendations. Having reviewed the record in this case, the Commission approves the Company's annual update. Case Details - IPUC Case No. AVU-E-24-11/G-24-04 Order No. 36403 (11/25/2024) On September 20, 2024, Avista Corporation("Company") applied to extend its electric and natural gas Fixed Cost Adjustment Mechanisms ("FCA Mechanisms") through August 31, 2029. According to the Application, the FCA Mechanisms are set to expire on March 31, 2025. Consequently, the Company seeks an extension to the Company's electric and natural gas FCA Mechanism Tariff Schedules 75 and 175, effective April 1, 2025. On October 10, 2024, the Commission issued a Notice of Application and Notice of Intervention Deadline, setting a deadline for interested persons to intervene. Order No. 36351. No parties intervened. At the Commission's November 19, 2024, Decision Meeting, Staff presented a Decision Memorandum recommending the Commission issue a Notice of Modified Procedure, setting a December 17, 2024, public comment deadline and a Company reply deadline of January 7, 2025. The Commission now issues this Notice of Modified Procedure establishing deadlines for interested parties to comment on the Application and for the Company to reply. 4 Case Details - IPUC OREGON Case No. UM 2318 Order No. 24-352 (10/16/2024) Staff recommends the Commission approve Avista Utilities' (Avista, AVA, or Company) request for the authorization of deferred accounting for costs associated with Energy Efficiency Services for Natural Gas Transport Customers, for the 12-month period beginning on March 11, 2024. State of Oregon: Public Utility Commission of Oregon Case No. UG 496 Order No. 24-367 (10/31/2024) Staff recommends approval of Avista Utilities (Avista, AVA, or Company)proposed Schedule 475 tariff, as described in the filing of Advice No. 24-03-G, effective for service rendered on and after November 1, 2024. State of Oregon: Public Utility Commission of Oregon Case No. UG 497 Order No. 24-368 (10/31/2024) Staff recommends the Commission approve Avista Corporation's, dba Avista Utilities (Avista, AVA, or Company), Advice No. 24-04-G, requesting amortization of Intervenor Funding for inclusion in rates for service rendered on and after November 1, 2024. State of Oregon: Public Utility Commission of Oregon Case No. UG 498 Order No. 24-369 (10/31/2024) Staff recommends the Public Utility Commission of Oregon (Commission) approve Avista Corporation's, dba Avista Utilities (Avista, AVA or Company), Advice No. 24-05-G, requesting amortization of the Commission Regulatory Fee for inclusion in rates for service rendered on and after November 1, 2024. State of Oregon: Public Utility Commission of Oregon Case No. UG 499 Order No. 24-370 (10/31/2024) Staff recommends that the Oregon Public Utility Commission(the Commission) approve Avista Corporation dba Avista Utilities' (Avista or the Company)request to modify Schedule 493, Residential Low-Income Rate Assistance Program(LIRAP)- Oregon, with rates effective for service on or after November 1, 2024. State of Oregon: Public Utility Commission of Oregon 5 Case No. UG 500 Order No. 24-371 (10/31/2024) Approve Avista Corporation dba Avista Utilities (Avista, AVA, or Company)request to revise its Schedule 467 tariff sheet, with rates effective for service rendered on or after November 1, 2024. State of Oregon: Public Utility Commission of Oregon Case No. UM 1356(17) Order No. 24-372 (10/31/2024) Staff recommends that the Commission approve Avista Corporation's, dba Avista Utilities (Avista, AVA, or Company) application for reauthorization to defer costs associated with intervenor funding grants for the 12-month period beginning November 1, 2024. State of Oregon: Public Utility Commission of Oregon Case No. UM 1497(14) Order No. 24-373 (10/31/2024) Staff recommends the Public Utility Commission of Oregon (Commission) approve Avista Corporation dba Avista Utilities' (Avista, AVA, or Company) application for reauthorization to defer purchased gas cost differences associated with the PGA mechanism for the 12-month period beginning November 1, 2024. State of Oregon: Public Utility Commission of Oregon Case No. UG 495 Order No. 24-395 (10/31/2024) Staff recommends approval of Avista Corporation dba Avista Utilities' (Avista, AVA, or Company)Advice No. 24-02-G, which updates the Company's 2024 annual Purchase Gas Adjustment(PGA)tariff sheets, for service rendered on and after November 1, 2024. State of Oregon: Public Utility Commission of Oregon Case No. UG 519 Order No. 24-403 (11/1/2024) IT IS ORDERED that Advice No. 24-09-G filed by Avista Corporation, dba Avista Utilities, is suspended for a period of time of up to nine months from December 1, 2024, the effective date of the tariff sheets. State of Oregon: Public Utility Commission of Oregon Case No. UM 2211 Order No. 24-426 (11/27/2024) Approve Oregon Public Utility Commission(OPUC or Commission) Staff s recommendations regarding: • Interim customer protections against the risks of arrearages and disconnection as outlined in Attachment 1, and 6 • Utility data sharing requirements by directing Portland General Electric, Northwest Natural Gas Company, Pacific Power, Avista Utilities, and Cascade Natural Gas to include respective bill discount program schedule identifiers with Energy Trust of Oregon beginning no later than January 2025. State of Oregon: Public Utility Commission of Oregon Case No. UM 779 Order No. 24-429 (11/27/2024) Staff makes the following recommendations: 1. Approve a late payment rate of 2.4 percent monthly on overdue customer accounts. 2. Approve an annual interest rate of 4.5 percent on customer deposits for calendar year 2025. 3. Direct the affected utilities to refile their respective tariffs to reflect the new rates. State of Oregon: Public Utility Commission of Oregon Case No. UM 1753(9) Order No. 24-435 (12/10/2024) Staff recommends the Public Utility Commission of Oregon (Commission) approve Avista Corporation dba Avista Utilities' (Avista or Company) application for reauthorization to defer revenue differences associated with the decoupling mechanism for the 12-month period beginning January 1, 2025. State of Oregon: Public Utility Commission of Oregon Case No. UM 2211 Order No. 24-444 (12/10/2024) Staff recommends that the Oregon Public Utility Commission(Commission) approve Staff s request to open a formal rulemaking on energy burden metric reporting and issue a notice of proposed rulemaking to adopt permanent rules. State of Oregon: Public Utility Commission of Oregon Case No. AR 667 Order No. 24-446 (12/19/2024) We adopt Staff s recommendation to direct the utilities to provide a report reflecting the impacts of these temporary customer protections, which may include the data specified in the Staff Report. Our intent in modifying Staff s recommendation is to provide Staff with space to work with the utilities on adjustments to the data needed and available to evaluate the cost impact of these temporary rules. We do not adopt the recommendation set forth in the fourth paragraph of Staffs proposed motions but emphasize that we recognize the value of closing data gaps between expiration 7 of COVID reporting and initiation of energy burden metrics reporting. Our intention is for docket AR 668 to address these backward-looking data requirements. State of Oregon: Public Utility Commission of Oregon Case No. LC 81 Order No. 24-459 (12/27/2024) 1. The Oregon Citizens' Utility Board's request meets the requirements of the Fifth Amended and Restated Intervenor Funding Agreement, and its request is approved. 2. Avista Corporation dba Avista Utilities pay $29,000 from the Avista Utilities Issue Fund to the Oregon Citizens' Utility Board within 30 days after receipt of this order, and the grant be assessed to Avista Corporation dba Avista Utilities' residential customers. State of Oregon: Public Utility Commission of Oregon Case No. UM 2318 Order No. 24-352 (10/16/2024) Staff recommends the Commission approve Avista Utilities' (Avista, AVA, or Company) request for the authorization of deferred accounting for costs associated with Energy Efficiency Services for Natural Gas Transport Customers, for the 12-month period beginning on March 11, 2024. State of Oregon: Public Utility Commission of Oregon WASHINGTON Docket No. D-240736 Order No. 01 (10/29/2024) On September 25, 2024, the Safety Committee heard case 24-077 filed by M&L Construction Inc. (M&L or Complainant) against Avista Corporation (Avista) and determined Avista violated RCW 19.122.030(3)(a) by failing to provide the excavator with reasonably accurate information by marking the location of its facilities. The Safety Committee recommended that the Commission impose a$5,000 penalty. UTC Case Docket Detail Page I UTC Docket No. D-240006/07 Order No. 08 (12/23/2024) Synopsis: The Commission rejects the tariff sheets filed by Avista Corporation, d/b/a Avista Utilities (Avista or the Company) on January 18, 2024, including the Company's proposed multi-year rate plan. The Commission, considering the full record, authorizes and requires Avista to file tariff sheets reflecting a two-year multi-year rate plan that will result in an increase in revenue of$11.882 million, or 2.01 percent in rate year I and 8 approximately $44.4 million, or 7.51 percent in rate year 2 after adjusting for offsetting factors related to Colstrip, for its electric operations and an increase in revenue of approximately $14.2 million, or 11.15 percent in rate year 1 and approximately$4.0 million, or 2.81 percent in rate year 2, for its natural gas operations, in accordance with the decisions below The Commission adjusts the Company's return on equity to 9.80 percent and does not authorize a flotation cost adjustment. The Commission accepts Avista's cost of debt of 4.99 percent. The Commission accepts the Company's proposed capital structure and authorizes and sets rates with a capital structure of 48.5 percent equity, 51.5 percent debt. This results in a rate of return for Avista of 7.32 percent. UTC Case Docket Detail Page I UTC Docket No. D-240891 Order No. 01 (12/20/2024) On October 31, 2024, Avista Corporation d/b/a Avista Utilities (Avista or Company) filed with the Washington Utilities and Transportation Commission(Commission) proposed revisions to its rates under electric Tariff WN U-28, Schedule 99—Colstrip Tracker. The revised tariff sheets bear an effective date of January 1, 2025. In its filing, Avista seeks to revise Schedule 99 rates to reflect forecasted costs for Colstrip Units 3 and 4 for calendar year 2025. Notably, Avista's proposed rates reflect full recovery (over one year) of all plant investments expected to be placed in service in calendar years 2024 and 2025. The revisions to Schedule 99 rates would increase Avista's annual revenues by$18 million, or 2.7 percent. A typical residential customer using 945 kWhs per month would see an increase of$4.47 per month, or 4.1 percent. UTC Case Docket Detail Page I UTC Docket Nos. UE-240006 & UE-240007 Order No. 08 (12/20/2024) Synopsis: The Commission rejects the tariff sheets filed by Avista Corporation, d/b/a Avista Utilities (Avista or the Company) on January 18, 2024, including the Company's proposed multi-year rate plan. The Commission, considering the full record, authorizes and requires Avista to file tariff sheets reflecting a two-year multi-year rate plan that will result in an increase in revenue of approximately $783,000, or 0.13 percent in rate year 1 and approximately$44.4 million, or 7.51 percent in rate year 2 after adjusting for offsetting factors related to Colstrip, for its electric operations and an increase in revenue of approximately$14.2 million, or 11.15 percent in rate year 1 and approximately$4.0 million, or 2.81 percent in rate year 2, for its natural gas operations, in accordance with the decisions below. The Commission adjusts the Company's return on equity to 9.80 percent and does not authorize a flotation cost adjustment. The Commission accepts Avista's cost of debt of 4.99 9 percent. The Commission accepts the Company's proposed capital structure and authorizes and sets rates with a capital structure of 48.5 percent equity, 51.5 percent debt. This results in a rate of return for Avista of 7.32 percent. The Commission authorizes an increase or adjustment to the energy recovery mechanism baseline consistent with this Order to account for the increases in Washington's allocated share of power costs and transmission costs. While the Commission allows the power cost baseline to be reset in this proceeding,the Commission will continue to consider carefully any future adjustments to the baseline and will change it only under extraordinary circumstances. UTC Case Docket Detail Page I UTC ALASKA No Orders to report. MONTANA No Orders to report. 10