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HomeMy WebLinkAbout20260820Notice_of_Application_Order_No_37144.pdf Office of the Secretary Service Date August 20,2026 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA ) CASE NO. AVU-G-26-03 CORPORATION'S APPLICATION FOR AN ) ORDER APPROVING A CHANGE IN RATES ) NOTICE OF APPLICATION FOR PURCHASED GAS COSTS AND ) AMORTIZATION OF GAS-RELATED ) NOTICE OF MODIFIED DEFERRAL BALANCES ) PROCEDURE ORDER NO. 37144 On July 31, 2026, Avista Corporation, doing business as Avista Utilities ("Company"), applied to the Idaho Public Utilities Commission("Commission")requesting approval of proposed rates in its Purchased Gas Adjustment ("PGA") filing for natural gas service in Idaho ("Application"), effective November 1, 2026. Application at 1. If the Application is approved, an Idaho residential customer' that uses approximately 66 therms per month would see a $1.60 decrease in their monthly bill (i.e., decrease from $58.562 to $56.96).Id. at 4. The Commission now issues this Notice of Application and Notice of Modified Procedure establishing written comment deadlines. BACKGROUND The Company's rates include a base-rate component and a gas-related cost (PGA) component. The base-rate component is intended to cover the Company's fixed costs to serve its customers.For example,the Company's costs for equipment and facilities to provide service rarely change. The Company's PGA is a Commission-approved mechanism that adjusts rates up or down to reflect actual changes in the Company's costs to buy natural gas from suppliers (compared to the same cost assumptions embedded in rates), including changes in transportation, storage, and other related costs. 1 The Company referred to the monthly bill for Idaho residential and small commercial customers using 66 therms per month.Application at 4.However,after reviewing the Application,the Commission believes the Company meant to only describe the monthly bill for Idaho residential customers using 66 therms per month. z The Commission believes that this monthly bill amount does not include the State of Idaho Usage Tax from the Company's Schedule 157 and thus may not accurately reflect an Idaho residential customer's monthly bill. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 37144 1 The PGA consists of two tariffs schedules—Schedule 150 and Schedule 155. Schedule 150 is forward looking and estimates the Company's weighted Average Cost of Gas ("WACOG") for the upcoming PGA deferral period. Schedule 155 amortizes the prior year's deferral of actual gas costs compared to the amount collected through rates and collects or returns the difference as a rebate or surcharge. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company represented that if the Application is approved as filed,the annual revenue of the Company will decrease by about$2.5 million or 3.0%. Id. at 1. YOU ARE FURTHER NOTIFIED that the Company represented that the annual PGA would: (1) pass through the changes in the estimated cost to purchase natural gas for November 2026 through October 2027; and (2) adjust the amortization rate(s) used to return or collect the deferred natural gas costs balance. Id. at 2-3. YOU ARE FURTHER NOTIFIED that the Company represented that the proposed WACOG rate (Schedule 150) would be a decrease of $0.04529 per therm from the present WACOG of$0.21148 per therm.Id. at 3. The proposed WACOG is $0.16619 per therm. Id. YOU ARE FURTHER NOTIFIED that the Company stated it expects demand costs for residential customers to increase by approximately $0.00995.Id. at 4. YOU ARE FURTHER NOTIFIED that the Company stated the proposed amortization rate (Schedule 155)change for Schedule 101 and Schedule 111 customers would increase by$0.01113 per therm. Id. The Company also represented that the proposed Schedule 155 rate would be $0.05165 per therm. Id. YOU ARE FURTHER NOTIFIED that the Application, proposed tariff rates, and supporting workpapers are available for public inspection during regular business hours at the Commission's office. The Application, proposed tariff rates, and supporting workpapers are also available on the Commission's website at www.puc.idaho.gov. Click on the "GAS" 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 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 37144 2 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 that it will proceed under Modified Procedure pursuant to the Commission's Rules of Procedure 201-204, IDAPA 31.01.01.201-.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 October 14, 2026. 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 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 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. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 37144 3 For the Idaho Public Utilities For the Company: Commission: Commission Secretary Patrick D. Ehrbar Idaho Public Utilities Commission Anni Glogovac P.O. Box 83720 Avista Corporation Boise, ID 83702-0074 P.O. Box 3727 secretga&puc.idaho.gov 1411 E. Mission Avenue, MSC 27 Spokane, WA 99220-3727 patrick.ehrbar(a),avi stacorp.com anni._lg_o_ov�ac&avistacorp.com docketsggavistacop2.com YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by October 21, 2026. 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 final 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. ORDER IT IS HEREBY ORDERED that this Application be processed under Modified Procedure. Persons interested in submitting written comments must do so by October 14,2026. The Company must file any reply comments by October 21, 2026. 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. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 37144 4 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 20ffi day of August 2026. G EDWARD LODGE, PFWSIDENT J R. HAMMOND JR., COMMISSIONER DAMN HA DIE, COMMISSIONER ATTEST: on'Q a anchez Commission Secretary NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 37144 5