20200128_jh2.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R.HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE:JANUARY 17,2020
SUBJECT:THE APPLICATION OF AVISTA FOR AN ACCOUNTING ORDER
AUTHORIZlNG ACCOUNTING TREATMENT OF COSTS RELATED
TO AFUDC (ALLOWANCE FOR FUNDS USED DURING
CONSTRUCTION);CASE NOS.AVU-E-19-15,AVU-G-19-09.
On December 31,2019,Avista Corporation dba Avista Utilities ("Avista"or
"Company")filed on Application for an Accounting Order Authorizing Accounting Treatment of
Costs related to AFUDC (Allowance for Funds Used During Construction).
BACKGROUND
On May 2,2019,the Commission approved Avista's request to defer costs related to
AFUDC from 2018 and going forward,for both the difference calculated between using the State
AFUDC rate and the FERC AFUDC rate as a regulatory asset (i.e.FERC Account No.182.3)
and for federal income taxes associated with AFUDC.See Order No.34326.In this Application
the Company seeks approval to reclassify a portion of AFUDC calculated in 2010 and through
2017,based on recommendations of FERC.
The Company requests that its Application be processed under the Commission's
rules for Modified Procedure.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a twenty-one day comment period and a seven day reply period.
DECISION MEMORANDUM I
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a twenty-one day comment period and a seven day reply period?
Jo n .Hammond Jr.
ep Attorney General
I Legal ELECTIUC\AVU E-19-15 AVU-G-1949 Incmos AVUEI915 AVUG1909_jrhdoe
DECISION MEMORANDUM 2