20200818_dh3.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF

FROM: DAYN HARDIE
DEPUTY ATTORNEY GENERAL

DATE: AUGUST 12, 2020

SUBJECT: AVISTA CORPORATION’S ANNUAL POWER COST ADJUSTMENT
(PCA) APPLICATION; CASE NO. AVU-E-20-07

On July 31, 2020, Avista Corporation (“Company”) filed its annual Power Cost
Adjustment (“PCA”) Application. The PCA is an annual adjustment mechanism that tracks
changes in the Company’s hydroelectric generation, secondary prices, thermal fuel costs, and
changes in power contract revenue and expenses.
This year, the Company asks the Commission to approve a PCA surcharge rate of
0.015¢ per kilowatt-hour (“kWh”) with an effective date October 1, 2020. Under the Company’s
proposal, the PCA surcharge rate for all customers, including residential customers, would increase
rates from the current rebate of 0.058¢ per kWh to a proposed surcharge of 0.015¢ (a 0.073¢ per
kWh increase in the customer rate). Since PCA rate adjustments are spread on a uniform cents per
kilowatt-hour basis, the resulting percentage increase would vary by schedule. The overall increase
is 0.9%. Residential customers using an average of 898 kWh per month would see their monthly
bills increase from $86.27 to $86.93. The Company requests its Application be processed under
Modified Procedure.
STAFF RECOMMENDATION
Staff has reviewed the Application and recommends the Application be processed
under Modified Procedure, with comments due by September 15, 2020 and the Company’s reply
due by September 22, 2020.

DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with a comment deadline of September 15, 2020 and a Company reply deadline of
September 22, 2020?

Dayn Hardie
Deputy Attorney General

I:\Legal\ELECTRIC\AVU-E-20-07\memos\AVUE2007_dec_dh.docx