20150824_4749.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER RAPER
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: BRANDON KARPEN
DEPUTY ATTORNEY GENERAL

DATE: AUGUST 18, 2015

SUBJECT: AVISTA CORPORATION’S ANNUAL POWER COST ADJUSTMENT
(PCA) APPLICATION, CASE NO. AVU-E-15-07

On July 31, 2015, Avista Corporation filed its annual Power Cost Adjustment
(“PCA”) Application. The PCA is an annual adjustment mechanism that tracks changes in the
Company’s hydro generation, thermal fuel costs, secondary prices, and changes in power
contract revenue and expenses.
This year, Avista asks the Commission to approve a PCA rebate of 0.032¢ per
kilowatt-hour (kWh) to be effective October 1, 2015. Under Avista’s proposal, the PCA rate for
all customers, including residential customers, would decrease from a surcharge rate of 0.252¢
per kWh to a rebate rate of 0.032¢ per kWh (a decrease of 0.284¢ per kWh).
Avista relates that, because the PCA rate adjustments are spread on a uniform cents
per kWh basis, the resulting percentage decreases vary by rate schedule, with an overall decrease
of 3.5%. Avista states that if the Commission approves the Application, the average residential
customer using 929 kWh per month will see a $2.64 per month decrease, from $85.24 to $82.60
(or 3.1%). The Company requests that its Application be processed under Modified Procedure
and that the Commission issue an Order approving the PCA Application effective on October 1,
2015.
STAFF RECOMMENDATION
Staff recommends that the case be processed by Modified Procedure, with comments
due by September 15, 2015. Avista concurs in this approach.

DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to process this case by Modified Procedure with a
comment deadline of September 15, 2015?

Brandon Karpen
Brandon Karpen
Deputy Attorney General

M:AVU-E-15-07_bk