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HomeMy WebLinkAbout20170814_Camille2.pdfDECISION MEMORANDUM 1 DECISION MEMORANDUM TO: COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: CAMILLE CHRISTEN DEPUTY ATTORNEY GENERAL DATE: AUGUST 10, 2017 SUBJECT: THE RESIDENTIAL AND SMALL FARM ANNUAL RATE FILING OF AVISTA CORPORATION, CASE NO. AVU-E-17-05 On August 1, 2017, Avista Corporation dba Avista Utilities applied to the Commission for authorization to implement a Residential and Small Farm Energy credit rate, for rate schedules 1, 12, 22, 32, and 48, of 0.078 cents per kilowatt-hour. Application at 1. The Company indicates that this rate represents a decrease of $0.2 million to qualifying customers and requests an effective date of October 1, 2017. Id. at 1-2. The Company requests that the Application be processed under Modified Procedure. Id. at 2. The Company explains that the Residential and Small Farm Energy credit rate results from an agreement between the Company and the Bonneville Power Administration (BPA) regarding the Residential Exchange Program. Id. The Residential Exchange Program provides a share of the benefits of the federal Columbia River power system to the residential and small farm customers of the six investor-owned utilities of the Pacific Northwest, including Avista. Id. at 2-3. The current Residential and Small Farm credit rate is 0.060 cents per kilowatt-hour. Id. at 3. The proposed credit rate of 0.078 cents per kilowatt-hour represents an increase of about $0.5 million in BPA benefits passed through to Avista’s Idaho customers, to approximately $0.94 million in BPA benefits. Id. (The current credit rate includes both the current BPA benefit of about $0.4 million and an additional credit adjustment of about $0.3 million to return to customers an under-refunded balance. Id. at 3-4 and n.1.) Thus, the overall decrease to DECISION MEMORANDUM 2 qualifying customers under the proposed credit rate is $0.2 million, or 0.2%. Id. at 4. Avista indicates that the change in credit rate has no effect on its net income. Id. STAFF RECOMMENDATION Staff recommends that the Commission issue a Notice of Application and Notice of Modified Procedure, with comments due September 20, 2017. Avista has relayed to Staff that a reply deadline is unnecessary COMMISSION DECISION Does the Commission wish to issue a Notice of Application and a Notice of Modified Procedure, with comments due September 20, 2017? M:AVU-E-17-05_cc