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HomeMy WebLinkAbout20250422Notice_of_Application_Order_No_36566.pdf Office of the Secretary Service Date April 22,2025 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE ELECTRIC ) CASE NO. AVU-E-25-04 LINE EXTENSION SCHEDULE 51 ) ANNUAL RATE ADJUSTMENT FILING ) NOTICE OF APPLICATION OF AVISTA CORPORATION ) NOTICE OF MODIFIED PROCEDURE NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE ORDER NO. 36566 On March 31, 2025, Avista Corporation, doing business as Avista Utilities ("Company") filed an application ("Application") with the Idaho Public Utilities Commission ("Commission") for an order approving the update in costs and administrative changes to the Company's Electric Line Extension Schedule 51. The Company requested a May 15, 2025, effective date, and that its filing be processed by Modified Procedure. The Commission now issues this Notice of Application, Notice of Modified Procedure, Notice of Suspension of Proposed Effective Date, and sets dates for public comments and the Company's reply. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that Schedule 51 incorporates average costing for electrical facilities commonly used to extend service. Schedule 51 sets forth "Basic and Exceptional Costs" that have a fixed and variable component, with the variable component stated on a cost-per-foot basis. These Basic and Exceptional Costs apply to facilities like transformers and conduit and are based on recent average costs. The Company represents that average costing works well and the Company does not propose changing the conceptual structure of the tariff. YOU ARE FURTHER NOTIFIED that in compliance with Order No. 35757 the Company included workpapers detailing the"hours,materials,and vehicle support for each j ob."Application at 2. Actual work order estimates were also included for each job type. Id. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE ORDER NO. 36566 1 YOU ARE FURTHER NOTIFIED that the Company updated the allowances for new residential, industrial, and commercial customers' services. Id. at 3. The Company based the updated allowances on an embedded cost method that seeks to ensure investments in facilities for new customers track embedded costs included in base rates.Id. The Company proposes that costs that exceed the allowance will be paid by the customer and will be booked as a contribution in aid of construction.Id. The Company based the embedded costs on the cost-of-service study used for the Settlement approved in Case No. AUV-E-23-01. Id. The Company proposes the following allowance changes on Page 3 of the Application: Service Schedule Existin Proposed Schedule 1 Individual Customer per $ 2,475 $ 2,545 unit Schedule 1 Duplex per unit $ 1,980 $ 2.035 Schedule 1 Multiplex per unit $ 1,490 $ 1,530 Schedule 11/12 per kWh $ 0.19321 $ 0.19912 Schedule 21/21 per kWh $ 0.17749 $ 0.18388 Schedule 31/32 per kWh $ 0.31838 $ 0.32929 YOU ARE FURTHER NOTIFIED that the Company is not proposing to update the Construction and Material Standards because the Company believes that the current standards comply with and reflect the most recent National Electric Safety Code.Id. at 4. The Company does propose, on Page 4 of the Application, to update the primary, secondary, service, and transformer average cost as follows: Present' Proposed Overhead Primary Circuit Fixed Cost $ 5,379 $ 5,536 Variable Cost $ 10.69 $ 11.20 Underground Primary Circuit Fixed Costs $ 2,516 $ 2,583 Variable Costs $ 13.48 $ 13.55 Underground Secondary Circuit Fixed Costs $ 666 $ 647 Variable Costs $ 14.17 $ 12.75 ' The Company's Application mistakenly included the term"Proposed"in this column. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE ORDER NO. 36566 2 Overhead Secondary Circuit Fixed Costs $ 2,212 $ 2,279 Overhead Service Circuit $ 5.02 $ 5.06 Underground Service Circuit $ 10.46 $ 10.29 Overhead Transformer $ 5,025 $ 5,308 Padmount Transformer $ 8,413 $ 10,003 YOU ARE FURTHER NOTIFIED that the Company indicates the primary drivers of higher costs are increased labor and transformer cost,and that the driver of reduced costs for some underground work stems from a reduction in the cost of conduit and resin products.Id. at 4-5. The Company states that the high demand for transformers across the nation and low availability in the utility sector, continues to drive prices upward, as seen in years past.Id. at 5. YOU ARE FURTHER NOTIFIED that the Company proposes, on Page 6 of the Application, to update its residential development costs to reflect the most current Construction and Material Standards and average 2024 construction costs as follows: Residential Develo ments Present Proposed Total Cost per Lot $ 3,358 $ 3,849 Less: Service Cost $ 525 $ 516 Developer Responsibility $ 2,833 $ 3,333 Developer Refundable Payment $ 2,475 $ 2,545 Builder Non-Refundable Payment $ 883 $ 1,304 Allowance $ 2,475 $ 2,545 YOU ARE FURTHER NOTIFIED that the Company proposes to add an Application Fee of $1,000 for load requests of 3,000 kVA (3 MVA) or greater, in an effort to reflect the considerable amount of time, effort, and complexity to evaluate large load requests. Id. at 6. The Company also adds language to clarify that any additional capacity impact studies beyond standard design will be paid in full by the customer requesting service. Id. The Company states that both changes align with industry practices among other utilities and ensure that only qualified new customers move through the interconnection process.Id. at 7. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE ORDER NO. 36566 3 YOU ARE FURTHER NOTIFIED that the Company noted it will send notices to potentially affected developers and builders the week of April 7, 2025.Id. at 7. YOU ARE FURTHER NOTIFIED that the Application and all submitted documents are available for public inspection during regular business hours at the Commission's office. The Application is also available on the Commission's website at www.puc.idaho.gov. Click on the "ELECTRIC" icon, select "Open Cases," and click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq. NOTICE OF MODIFIED PROCEDURE YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure,IDAPA 31.01.01.201 through .204. The Commission notes that Modified Procedure and written comments have proven to be an effective means for obtaining public input and participation. YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this Application may file a written comment explaining why the person supports or opposes the Application. Persons who would like a hearing must specifically request a hearing in their written comments and explain why written comments alone are insufficient. Persons interested in filing written comments must do so by May 5, 2025. Comments must be filed through the Commission's website or by e-mail unless computer access is unavailable. To comment electronically, please access the Commission's website at http://www.puc.idaho.gov/. Click the "Case Comment Form" and complete the form using the case number as it appears on the front of this document. To file by e-mail, persons must e-mail the comments to the Commission Secretary and all parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE ORDER NO. 36566 4 public record under Idaho Code § 74-101(13), and all information provided by such person is available for public and media inspection. If computer access is unavailable, then comments may be mailed to the Commission and the Parties at the addresses below.Persons submitting a comment by mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code§74-101(13),and all information provided by such person is available for public and media inspection. For the Idaho Public Utilities For Avista Corporation Commission: Commission Secretary David J. Meyer, Esq. Idaho Public Utilities Commission Vice President and Chief Counsel for P.O. Box 83720 Regulatory & Governmental Affairs Boise, ID 83720-0074 P.O. Box 3727 secretgakpuc.idaho.gov 1411 E. Mission Ave., MSC 13 Spokane, WA 99220 Street Address for Express Mail: David.me erkavistacorp.com 11331 W. Chinden Blvd. Patrick Ehrbar Building 8, Suite 201-A Director of Regulatory Affairs Boise, ID 83714 Avista Corporation P.O. Box 3727 1411 E. Mission Ave., MSC 27 Spokane, WA 99220 Patrick.ehrbarkavistacorp.com YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by May 12, 2025. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set,the Commission will consider this matter on its merits and enter its order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE YOU ARE FURTHER NOTIFIED that the Company's Application proposes that the tariff sheets be made effective May 15, 2025. The Commission finds it appropriate to suspend the NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE ORDER NO. 36566 5 Company's proposed effective date for 30 days plus 5 months, unless the Commission issues an earlier order accepting,rejecting, or modifying the Company's Application. See Idaho Code § 61- 622(4). ORDER IT IS HEREBY ORDERED that this Application be processed under Modified Procedure. Persons interested in submitting written comments must do so by May 5, 2025. The Company must file any reply comments by May 12, 2025. IT IS FURTHER ORDERED that the Company's proposed effective date of May 15,2025, is suspended for 30 days plus 5 months pursuant to Idaho Code § 61-622(4), unless the Commission issues an earlier order accepting, rejecting, or modifying the Application. IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 22"d day of April 2025. EDWARD LODGE, PRE T ENT 6�OHN R. HAMMOND JR., COMMISSIONER DAYN H DIE, COMMISSIONER ATTEST: �.. Ba os- a Commission ecret t;�y IALega1\ELECTRIC\AVU-E-25-04_Sch 51\orders\AWE2504_Ntc_App_Mod_Susp_em.docx NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE ORDER NO. 36566 6