20180126Avista to Staff_DR_011.docx

AVISTA CORP.
RESPONSE TO REQUEST FOR INFORMATIONJURISDICTION:WASHINGTONDATE PREPARED:11/20/2017CASE NO.:U-170970WITNESS:Patrick D. EhrbarREQUESTER:UTC StaffRESPONDER:Jennifer S. SmithTYPE:Data RequestDEPT:State & Federal RegulationREQUEST NO.:Staff – 011(AVA)TELEPHONE:[phone]EMAIL: [e-mail]:
Why did Avista choose to structure the Rate Credit proposal in the “offsettable” manner that it did, rather than as a simpler dollar amount without offsets?RESPONSE:Hydro One and Avista believe that this was the preferable method for the proposed Rate Credit. The majority of the Rate Credit was derived based on cost savings that will accrue to Avista if the merger transaction is approved. Those savings (benefits) will accrue to customers either through the proposed Rate Credit, or through lower base rates once those cost savings have been incorporated into base rates in a future general rate case.