20191015_mikem_rq1.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:MICHAEL W.MORRISON
DATE:OCTOBER 10,2019
SUBJECT:AVISTA UTILITIES PROPOSED TARIFF REVISION SCHEDULE 63-
NET METERING OPTION SCHEDULE.
THE APPLICATION
On September 13,2019,Avista Utilities ("Company")filed a tariff advice with the
Commission proposing an update to the Net Metering Option (Schedule 63)that would change the
annual expiration date for unused kilowatt-hour (kWh)credits.
Currently,Schedule 63 customers receive a credit for excess kWh that they generate during
each billing cycle.These credits may accumulate until the December 31 expiration date,when
any remaining unused kWh credit is granted to the Company without any compensation to the
customer.The Company's proposal would move the expiration date from December 31 to
March 31 of the followingyear.According to the Company,moving to the new expiration date
would benefit net metering customers.The March 31 expiration date is also consistent with the
Company's current practice in Washington.
STAFF'S ANALYSIS
Staff notes that net metering customers typically accumulate kWh credits during the
months of September and October,and that they begin drawing from their bank of accumulated
credits in November or December.It is unlikely that all customers will have depleted their
accumulated credits by the December 31 expiration date.According to the Company,Net
Metering customers typically do not start becoming net energy exporters until April.Staff
DECISION MEMORANDUM l OCTOBER 10,2019
believes that the proposed March 31 expiration date would be better aligned with the way that net
metering customers consume and export energy.
Staff notes that the number of customers impacted (78)and the number of kWh credits
(14,745)at issue are extremely small:At the Company's highest residential rate tier ($0.10179
per kWh),the value of 14,745 kWh is about $1,500.
STAFF RECOMMENDATION
Staff does not believe that any existing Schedule 63 customers would be adversely
impacted by the Company's proposed change.Staff recommends that the Commission approve
the Company's proposed revision to Schedule 63,updating the expiration date for unused kWh
credits from December 31 to March 31 of the followingyear.
COMMISSION DECISION
Does the Commission wish to approve the Company's proposed revision to Schedule 63,
updating the expiration date for unused kWh credits from December 31 to March 31 of the
followingyear?
Udmemos/Avista Tariff Revision Schedule 63
DECISION MEMORANDUM 2 OCTOBER 10,2019