Loading...
HomeMy WebLinkAbout20250731APPLICATION.pdf RECEIVED Avista Corp. I AHO PUBLIC 1411 East Mission P.O. Box 3727 UTILITIES COMMISSION Spokane, Washington 99220-0500 Telephone 509-489-0500 Toll Free 800-727-9170 July 31, 2025 State of Idaho Idaho Public Utilities Commission 11331 W. Chinden Blvd Bldg 8 Suite 201-A Boise, ID 83714 RE: Case No. AVU-E-25-09 - Residential Exchange Annual Rate Adjustment Filing of Avista Corporation Dear Commission Secretary: Enclosed for filing with the Commission is Avista Corporation's dba Avista Utilities ("Avista or the Company") Application requesting approval of changes to the Company's Residential and Small Farm Tariff Schedule 59. The following tariff sheets are proposed for revision: Twenty Fourth Revision Sheet 59 canceling Twenty Third Revision Sheet 59 Please direct any questions regarding this filing to Athena Allen at(509) 495-8325. Sincerely, Director of Regulatory Affairs Pat.Ehrbar(d),avistacorp.corn I DAVID J. MEYER 2 VICE PRESIDENT AND CHIEF COUNSEL FOR 3 REGULATORY AND GOVERNMENTAL AFFAIRS 4 AVISTA CORPORATION 5 1411 E. MISSION AVENUE 6 P. O. BOX 3727 7 SPOKANE, WASHINGTON 99220 8 PHONE: (509)495-4316, FAX: (509)495-8851 9 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 10 11 IN THE MATTER OF THE RESIDENTIAL ) 12 AND SMALL FARM ANNUAL RATE ) CASE NO. AVU-E-25-09 13 ADJUSTMENT FILING OF ) APPLICATION OF AVISTA 14 AVISTA CORPORATION ) CORPORATION 15 16 17 18 I. INTRODUCTION 19 In accordance with Idaho Code §61-502 and Idaho Public Utilities Commission 20 Modified Procedure Rule (RP) 052,Avista Corporation, doing business as Avista Utilities 21 (hereinafter "Avista" or "Company"), at 1411 East Mission Avenue, Spokane, 22 Washington, respectfully makes application to the Idaho Public Utilities Commission 23 ("Commission")for an order authorizing Avista to implement Residential and Small Farm 24 Energy rates for electric service from October 1, 2025 through September 30, 2026. The 25 proposed Residential and Small Farm Energy Rate Adjustment credit rate for rate 26 schedules 1, 12, 22, 32, and 48 is 0.2330 per kilowatt-hour. The credit rate represents a 27 $1.9 million increase to qualifying customers. The Company has requested an October 1, 28 2025 effective date. 29 The Company requests that this filing be processed under the Commission's 30 Modified Procedure Rules(RP 201-204). Communications in reference to this Application AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE ADJUSTMENT FILING PAGE 1 I should be addressed to: 2 David J. Meyer, Esq. 3 Vice President and Chief Counsel for 4 Regulatory & Governmental Affairs 5 Avista Corporation 6 P.O. Box 3727 7 MSC-10 8 1411 E. Mission Ave 9 Spokane, WA 99220-3727 10 Phone: (509) 495-4316 11 David.Meyer@avistacorp.com 12 13 Patrick Ehrbar 14 Director of Regulatory Affairs 15 Avista Utilities 16 P.O. Box 3727 17 MSC-27 18 1411 E. Mission Ave 19 Spokane, WA 99220-3727 20 Phone: (509) 495-8620 21 Patrick.Ehrbar@avistacorp.com 22 23 II. BACKGROUND 24 The electric Residential and Farm Energy Rate Adjustment results from an 25 Agreement between the Company and Bonneville Power Administration (`BPA"). The 26 Residential Exchange Program ("Residential Exchange" or"ResEx") provides a share of 27 the benefits of the federal Columbia River power system to the residential and small-farm 28 customers of the six(6)investor-owned utilities of the Pacific Northwest,including Avista. 29 30 III. DRIVERS OF THE RESIDENTIAL AND SMALL FARM ENERGY RATE 31 ADJUSTMENT CREDIT 32 33 Under the current Residential Exchange rate adjustment, approximately $5.1 34 million annually is being passed through to applicable Idaho customers through a uniform AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE ADJUSTMENT FILING PAGE 2 1 0.366¢ per kilowatt-hour rate credit. This rate was approved by the Idaho Public Utilities 2 Commission effective October 1, 2023 in Order No. 35932. 3 The proposed rate credit of 0.2330 per kilowatt-hour is designed to pass through 4 approximately $3.3 million which represents the Idaho portion of the annual level of BPA 5 benefits, offset by the balance remaining from the prior year. The level of BPA benefits is 6 approximately $1.9 million less than what is currently being passed back to customers in 7 rates today. That amount, however, is offset by an under-refunded balance from the prior 8 year of approximately $0.01 million, which is due to actual usage being higher than what 9 was projected in the Company's 2023 filing. The table below details the benefit included 10 in current rates and the proposed benefit included in this filing. 11 Change in Benefit Proposed Present Idaho portion of benefit amount $ (3,258,527) $ (5,118,545) $ 1,860,018 12 13 The Company is therefore proposing an overall increase of$1.9 million or 0.6% 14 for qualifying customers. The change in rate credit has no effect on Avista's net income. 15 16 IV. PROPOSED RATES TO BE EFFECTIVE OCTOBER 1, 2025 17 The Company is proposing a per kilowatt-hour Residential and Small Farm Energy 18 Rate Adjustment credit rate of 0.2330 for rate schedules 1, 12, 22, 32, and 48 to become 19 effective October 1, 2025. Attachment A to this Application provides the Residential and 20 Small Farm Energy Rate Calculation. Attached as Exhibit "A" is a copy of the proposed 21 tariff, Schedule 59,which contains the proposed Residential and Small Farm Energy rates 22 discussed earlier in this Application. Exhibit "A" also includes the proposed changes to AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE ADJUSTMENT FILING PAGE 3 I Schedule 59 in strike-out/underline format. Residential customers using an average of 939 2 kilowatt-hours per month would see their monthly bills increase from $104.30 to $105.55, 3 a increase of$1.25 per month, or 1.2%. 4 5 V. COMMUNICATIONS AND SERVICE OF APPLICATION 6 In conformance with RP 125, this Application will be brought to the attention of 7 the Company's customers. Included in this filing is the form of Press Release which will 8 be issued on July 31, 2025, as well as the form of Customer Notice which will be included 9 in customer bills beginning in early August 2025 and run for a full billing cycle. 10 11 VI. REQUEST FOR RELIEF 12 The Company requests that the Commission issue an order approving a per 13 kilowatt-hour Residential and Small Farm Energy credit rate of 0.2330 for rate schedules 14 1, 12,22, 32, and 48 to become effective October 1,2025. The Residential and Small Farm 15 Energy credit represents a $1.9 million, or 0.6%, increase to qualifying customers. The 16 Company requests that the matter be processed under the Commission's Modified 17 Procedure rules through the use of written comments. 18 Dated at Spokane, Washington this 3 1"day of July 2025. 19 AVISTA CORPORATION 20 BY /s/ David J. Meyer 21 David J. Meyer 22 Vice President and Chief Counsel for 23 Regulatory and Governmental Affairs 24 Avista Corporation AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE ADJUSTMENT FILING PAGE 4