20150911AVU to Staff 125.doc

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 09/10/2015
CASE NO.: AVU-E-15-05/AVU-G-15-01 WITNESS: Patrick Ehrbar
REQUESTER: IPUC RESPONDER: Tara Knox
TYPE: Production Request DEPARTMENT: State & Federal Regulation
REQUEST NO.: Staff - 125 TELEPHONE: [phone]

REQUEST:

Page 4 of Exhibit 15, Schedule 7, provides the inputs and calculations to determine the Company’s Fixed Cost Adjustment Revenue per-Customer, please provide the Fixed Cost Adjustment Revenue per-Customer if production and transmission were excluded from the calculation.

RESPONSE:

As discussed in the Company’s response to Staff_PR_114, the Company has requested approval of an electric and natural gas Fixed Cost Adjustment mechanism in an effort to recover the fixed costs of providing service to customers. Customer usage is impacted not only by the effects of programmatic DSM and non-programmatic DSM (i.e., behavioral savings, changes to codes and standards, etc.), but also by the effects of weather, distributed generation and other factors. These fixed costs included fixed production and transmission costs, and we believe that those costs should be included in the FCA.

Excluding both variable and fixed production and transmission costs from the Fixed Cost Adjustment (FCA) Revenue at proposed rates would result in Residential FCA Revenue per Customer of $430.02 versus $719.17 as proposed, and Non-Residential FCA Revenue per Customer of $1,469.98 versus $2,792.26 as proposed.

Please see Staff_PR_125_Attachment A which is a replication of Exhibit 15, Schedule 7 with additional calculations to exclude Fixed Production and Transmission Revenue as well as Variable Power Supply Revenue and Fixed Charge Revenue to determine the Fixed Cost Adjustment Revenue. The Fixed Production and Transmission Rate per kWh values on line 6A were determined by deducting the load change adjustment rate on line 5 from the sum of total production and transmission cost per kWh embedded in proposed rates as provided in the Company’s filed cost of service study Exhibit No. 13, Schedule 3 page 2 lines 27 and 28.

See also the Company’s response to Staff_PR_120.

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