20210817_jh1.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

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

FROM: JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL

DATE: AUGUST 11, 2021

SUBJECT: AVISTA CORPORATION’S ANNUAL POWER COST ADJUSTMENT
(PCA) APPLICATION; CASE NO. AVU-E-21-09.

On July 30, 2021, 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 recovery of power costs
deferred for the period of July 1, 2020, through June 30, 2021, and approving a PCA surcharge
rate of 0.251¢ per kilowatt-hour (“kWh”) with an effective date of October 1, 2021. Under the
Company’s proposal, the PCA surcharge rate for all customers, including residential customers,
would increase rates from the current surcharge rate of 0.015¢ per kWh to a proposed surcharge
of 0.251¢, an increase in the rate of 0.236¢ per kWh. The Company represents that since PCA rate
adjustments are spread on a uniform cents per kilowatt-hour basis, the resulting percentage
increase would vary by schedule. The Company represents that the overall increase, if approved
by the Commission would be approximately $7.2 million or 2.8%. The Company represents if its
Application is approved residential customers using an average of 892 kWh per month would see
their monthly bills increase from $85.63 to $87.74. The Company requests that its Application be
processed under Modified Procedure.

DECISION MEMORANDUM 2

STAFF RECOMMENDATION
Staff has reviewed the Application and recommends the Application be processed
under Modified Procedure, with comments due by September 9, 2021 and the Company’s reply
due by September 16, 2021.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with a comment deadline of September 9, 2021 and a Company reply deadline of
September 16, 2021?

John R. Hammond Jr.
Deputy Attorney General

I:\Legal\ELECTRIC\AVU-E-21-09 PCA\AVUE2109_dec_jh.docx