20210831Avista to Staff Supplemental 4.pdf

AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-2l-10
IPUC
Production Request
Stafl004S
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DATE PREPARED: 0813112021WITNESS: N/A
RESPONDER: Tia Benjamin
DEPARTMENT: Regulatory Affairs
TELEPHONE: (s09) 495-2225
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REQUEST:
Please provide an explanation, with supporting documentation, on how the work paper entitled
'BPA Residential Exchange Load Calculation" was created.
SUPPLEMENTAL RESPONSE :
Avista was notified by the Bonneville Power Administration (BPA) on August 26,2021 of an
updated PF Exchangerate due to an eror in the exchange loads used to implement the Residential
Exchange Program (REP). On August 12,2021, a participating utility informed BPA that the
exchange load reported to BPA for calendar year 2020 was incorrect. That utility had found an
error which resulted in double counting of the Company's residential exchange load. The error
has since been corrected. BPA used the erroneous exchange load to set the BP-22 Priority Firm
Exchange (PFx) rates to allocate REP benefits for the BP-22 rate period which were used in
Avista's initial filing. BPA has since filed and corrected the erroneous exchange load and revised
the PFx rates BPA uses to allocate REP payments among REP participants. For investor-owned
utility REP participants, the revisions reallocated the total amount of REP benefits among the
IOUs. This reallocation has increased the REP benefits from what was initially assigned to Avista
by approximately $0.65 million.
Attached are revised workpapers (Staf{_AR_004S Supplemental Attachment A) and Tariff
(StaflAR_O04S Supplonental Attachment B) using the updated PFx rate provided by BPA
You will find in the revised workpapers, Staff_AR_O04S Supplemental Attachment A, the
proposed rate credit of 0.3701, per kilowatt-hour, designed to pass through approximately $4.7
million which represents the Idaho portion of the annual level of BPA benefits and the
over-refunded balance from the prior year, starting in October 2021. The level of BPA benefits
and the over-refunded balance from the prior year is approximately $0.5 million more than what is
currently being passed back to customers in rates today. An average residential customer using
892 kWh's per month would see their present monthly bill of $85.63 decrease by $0.30, or 0.4Yo.
ORIGINAL RESPONSE:
Avista submits monthly actual residential and small farm load (residential load) in kWh's via
BPA's secure online portal. BPA completes their own verification process of the residential load
submitted to ensure the amount of power purchased and sold equals the qualiffing residential load
as submitted by the Company. This qualiffing residential load is then multiplied by the difference
between BPA's PF Exchange rate and Avista's average system cost (ASC) to derive the
Company's Residential Exchange Progam (REP) benefits. These benetrts are passed on to
Avista's residential and farm customers.
Please refer to the BPA websito for more detailed explanation of the residential exchange procoss
and calculatiorul at
htEs://www.bpa.eor/Finance/ResidentialExchaneeProgram/Paees/default.aspx