20210419Avista to Staff 59-Revised.pdf

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AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 04/19/2021
CASE NO.: AVU-E-21-01/AVU-G-21-01 WITNESS: Clint Kalich
REQUESTER: IPUC RESPONDER: L. Hermanson/L. Andrews
TYPE: Production Request DEPARTMENT: Power Supply
REQUEST NO.: Staff – 059 Revised 2 TELEPHONE: [phone]

REQUEST:

Please provide the pro forma net power cost adjustment and corresponding revenue requirement
reduction or increase with updates to confidential and non-confidential schedules contained in Mr.
Kalich’s Exhibit No. 9 workpapers, for the following scenarios using the natural gas forward
prices and the electricity forward prices for September 1, 2021, through August 31, 2022, based on
the most recent one-month settlement period.

a. Include both Palouse Wind and Rattlesnake Flat in base rates.
b. Exclude Palouse Wind from the base rates.
c. Exclude Rattlesnake Flat from the base rates.
d. Exclude both Rattlesnake Flat and Palouse Wind from the base rates.

RESPONSE:

See Staff_PR_059 Attachment A - Comparative Summary of Wind Cases (PR59).xlsx for the
results of the 4 scenarios above with the as filed forwards and the updated forwards for the period
of 1/28/21-2/26/21.

(Revised response: Please note the Company’s original response provided the updated electric and
natural gas forwards for the period of 1/28/21-2/26/21. The label on Staff_PR_059 incorrectly
stated “Variance Gas Prices” in error. The labeling has been corrected in Staff_PR_059 Revised
Attachment A.)

Revised – 04/19/2021
Please see attachment Staff_PR_059 Attachment A - Revised 2, reflecting the impact on the
Company’s revenue requirement of updating gas prices in March, the scenarios of removing
Palouse Wind and/or Rattlesnake Wind, as requested in Staff-PR-059; and the removal of 50 MW
BPA contract as provided in Staff-PR-117. A summary table of these changes is provided below:

Updated Gas prices March 2021 1,878$ update PR 059
Remove Palouse (3,717)$ scenario PR 059
Remove Rattlesnake (232)$ scenario PR 059
Remove 50 MW BPA contract (383)$ Correction PR 117
Total net change in PS - Scenario (2,454)$
Revenue
Requirement
Impact Summary
RECEIVED
2021April 19, PM 3:44
IDAHO PUBLIC
UTILITIES COMMISSION
2019 Actuals w Wind wo Palouse wo Rattlesnake
wo
Palouse/Rattlesna wo wo Palouse/Rattles
Total Account 555 135,497 106,845 86,976 93,514 73,793 108,128 88,504 95,005 75,558
Total Account 557 49,723 632 632 632 632 632 632 632 632
Total Account 501 28,881 32,056 32,056 32,056 32,056 31,584 31,584 31,584 31,584
Total Account 547 71,501 86,109 86,109 86,109 86,109 81,531 81,531 81,531 81,531
Total Account 565 (1)17,253 17,279 17,279 17,279 17,279 17,279 17,279 17,279 17,279
547 MT Invasive Species
Total Montana Invasive Species 1,582 1,610 1,610 1,610 1,610 1,610 1,610 1,610 1,610
TOTAL EXPENSE 304,437 244,530 224,661 231,199 211,478 240,763 221,139 227,640 208,193
Total Account 447 81,398 83,815 74,279 70,665 61,277 73,759 64,896 61,309 52,623
Total Account 456 55,607 5,440 5,440 5,440 5,440 6,291 6,291 6,291 6,291
TOTAL REVENUE 137,005 89,255 79,719 76,105 66,717 80,050 71,187 67,600 58,914
TOTAL NET EXPENSE 167,432 155,275 144,942 155,094 144,761 160,713 149,952 160,040 149,279
AS FILED 11,047
Adjustment from 2019 UPDATED 12,157 22,490 12,338 22,671 6,719 17,480 7,392 18,153
Difference from Base (10,333) (181) (10,514) (10,761) (673) (11,434)
Impact of removing 50 MW BPA contract (1)(1,110)
Variance Electric and Natural Gas Prices 5,438 ID Share @ 34.36%(381) ID Share @ 34.36%1,868 `
Revenue Requirement Impact (383) Revenue Requirement Impact 1,878 (Electric and Natural Gas price update only)
Variance No Palouse Only (10,761) ID Share @ 34.36%(3,697)
Revenue Requirement Impact (3,717) *Remove Palouse only
Variance No Rattlesnake Only (673)
ID Share @ 34.36%(231)
Revenue Requirement Impact (232) *Remove Rattlesnake only
Variance No Palouse/Rattlesnake (11,434)
ID Share @ 34.36%(3,929)
Revenue Requirement Impact (3,949) *Remove Both P/RS
P/T Ratio ID Share 34.36%Values in filed case:
ID SIT 0.045994 (3,551) (62) (3,613)
After Tax (1-.21)0.79 (3,569) (63) (3,632)
Conversion Factor 0.749719
Updated Gas prices March 2021 1,878$ update PR 059
Remove Palouse (3,717)$ scenario PR 059Remove Rattlesnake (232)$ scenario PR 059
Remove 50 MW BPA contract (383)$ Correction PR 117Total net change in PS - Scenario (2,454)$
Revenue
Requirement
As filed using October 2020 forwards Using 1/28/21-2/26/21 forwards
Excludes
Palouse
Excludes
Rattlesnake
Excludes
Both
*Removal of Palouse, Rattlesnake, or
both, would reduce the Company's proposed revenue requirement
incremental to the amount shown as a reduction for the change (reduction) in
electric and natural gas prices.
Staff_PR_059 Revised 2.xlsx 1 of 1