20210527Avista to Clearwater 4-7.pdf

JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO RBQ[TEST FOR INFORMATION
IDAHO DATE PREPARED: 0512412021
AVU-E-21-01 / AVU-G-21-01 WITNESS: Joseph Miller
Clearwater Paper RESPONDER: Joe Miller
Production Request DEPARTMENT: Regulatory
cP-004 TELEPHONE: (509)
REQUEST:
Company witness Miller in his Direct Testimony was asked if the Commission were
revenue requirement lower than the Company's request how would they propose to
revenue request. He answered on page 8 of his direct testimony:
If the Commission were to order a lowerrevenue requirement, the Company
proposes to allocate the same increase as the Company's initial filing to
Schedule l. The Company also proposes that Large General Service Schedules
Large General Service Schedule 25, Pumping Service Schedules 31132 and Sheet
Lights Schedules continue to receive an equal percentage of revenue
rernaining revenue should then be applied equally to Schedules 1ll12 and
those schedules are providing significantly more than their relative cost of
discussed by Ms. Knox.
During Rate Year I (RY 1 ) the reve,nue requirement was set to be offset with the tax
If the revenue requirement is less than proposed by Avista how will the tax credi
ratepayers be spread for the benefit of Avista's ratepayers?
RESPONSE:
As described in testimony, the objective for rate spread was to offset the rate impact
general rate increase with the Tax Customer Credit so that all customers will not
billed rate increase n202l.r To the extent the Commission orders a lower revenue
the Company supports lowering the Ta>r Customer Credit offset so that all customer not
a billing rate increase in 2021. Lowering the amount of the tax credit offset would
credit to stay in effect for a longer period of time from what the Company proposed in
fi1ing.
I Miller, Di, p. 7,11. 6-8.
RECEIVED
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ruRISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
A\ISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATTON
IDAHO DATE PREPARED: 0512412021
AW.E.2I-01 / AW.G-2I-01 WITNESS:
Clearwater Paper RESPONDER:
Production Request DEPARTMENT:CP-OO5 TELEPHONE:
Joseph
(s0e)
REQUEST:
If the Commission were to order a two-year revenue requirement that is less than the tax
how does the Company propose the tax credit would be retumed to rate payers in Rate
(RY2)?
RESPONSET
The Company is proposing that the Tax Customer Credit be used to offset the Rate Year I
increase only and stay in effect until the full amount of the balances available is
customers. The Company is not proposing any of the Tax Customer Credit be used to
the base rate increase for Rate Year 2.
Joe Miller
Regulatory
2
to
rate
any of
JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATION
IDAHO DATE PREPARED: 0512412021
AVU.E.2I-OI / AW.G.2I.Ol WITNESS:
Clearwater Paper RESPONDER:
Production Request DEPARTMENT:CP.OO6 TELEPHONE:
Joseph
Joe Miller
Regulatory
(50e)
REQUEST:
During Rate Year I (RYl) for Clearwater (Schedule 25P) the Company is proposing to
any of the demand charges but "The revenue increase for the schedule is proposed to be
through an increase of 0.520 cents per kWh to the energy charge." [Direct Testimony J
Miller, p. 16.] Please explain in detail the rational of fixing Clearwater's demand
current rates and applying the increased revenue requirement all on energy charges.
RESPONSE:
The Tax Customer Credit is proposed to be returned on a per kWh basis. In order to
customers experience no bill change resulting from the general rate case in Rate Year l,
Company proposed to adjust both the general rate increase and Tax Customer Credit on
and offsetting energy only basis for all rate schedules.
change
that all
at
equal
JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATTON
IDAHO DATE PREPARED: 0512412021
AVU-E-2I-OI / AVU-G-2I-OI WITNESS:
Clearwater Paper RESPONDER:
Production Request DEPARTMENTCP-OO7 TELEPHONE:
Joseph
REQUEST:
During Rate Year 2 (RY2) for Clearwater (Schedule 25P) the Company is proposing
minimum demand charge of $14,000 be increased by $2,500, to $16,500 per month.
Company is proposing to increase the volumetric demand charge for the 3,000 - 55,000 k
from $5.00/kVA to $5.50/kVA. The remaining revenue change for the schedule is
recovered through apercentage decrease of approximately 0.4%o applied to the single
rate, a decrease of 0.017 cents per kwh." [Direct Testimony, Joseph Miller, pg. 16, I
explain in detail the rational of increasing Clearwater's demand charges and reducing the
energy charge for RY2.
RESPONSE:
The Company intended to propose an increase to the applicable basic charges and
for all rate schedules in Year I of the rate plan but did not do so in order to keep the
increase and the Tax Customer Credit rate design perfectly aligned so that no customers
rate change in202l. The Company intended to propose basic charge and demand charge
to the applicable rate schedules in each year under the rate plan, but because no
proposed in Year 1, the Company proposed larger increases in Year 2.
Specific to the insreases in dernand charges, the Company's transmission and
is constructed to meet the collective peak demand of its customers. The Company
adequate resources available to meet peak demand. If customers reduce their peak
reduce the need for additional investment in these facilities and resources.
receive the proper price signal to encourage a reduction in their peak demand, i.e.,
charges. The system allocated dernand cost from the cost of service study is $l 1.69
ftW) month.r The Company's present monthly demand charges range from $5
$6.001kW, well below the system allocated demand cost. While the exact level of costs
as demand-related can be debated, clearly the levels of demand charges proposed will
be well below demand-related costs as supported by the Company's cost of service
proceeding.
I Exhibit No. 16, Sch 3, p. 3, ln 28.
Joe Miller
Regulatory
(s0e) 4e5
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