20170814_Camille3.pdf

DECISION 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 POWER COST ADJUSTMENT (PCA) ANNUAL RATE
ADJUSTMENT FILING OF AVISTA CORPORATION, CASE NO. AVU-
E-17-07

On August 1, 2017, Avista Corporation dba Avista Utilities filed its Power Cost
Adjustment (PCA) annual rate adjustment. The Company requests that the Commission issue an
Order approving the level of power costs deferred for the period July 1, 2016 through June 30,
2017, and approve a PCA rebate rate of 0.240 cents per kilowatt-hour to be effective October 1,
2017. Application at 1. The Company requests that the Application be processed under
Modified Procedure. Id. at 2.
The Company indicates that its power cost deferrals for the period July 2016 – June
2017, including renewable energy credit retirement benefits and interest, total ($7,233,993). Id.
at 4. The Company’s witnesses provide detail on the power cost deferrals. Id. When this
amount is included in the Company’s PCA calculations, the result is a uniform per kilowatt-hour
rebate rate of 0.240 cents. Id. at 5. The Company explains that because the PCA changes are
spread on a uniform cents per kilowatt-hour basis, the resulting percentage reductions vary by
rate schedule. Id. at 6. The overall decrease is 2.7%. Id. Residential customers using an
average of 910 kilowatt-hours per month would see a decrease of $2.03, or 2.4%. Id.
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due September 15, 2017, and reply comments, if any, due
September 20, 2017.
DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with comments due September 15, 2017, and reply comments, if any, due September
20, 2017?

M:AVU-E-17-07_cc