20220920_AVUG2206_md.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: MICHAEL DUVAL
DEPUTY ATTORNEY GENERAL

DATE: SEPTEMBER 20, 2022

SUBJECT: IN THE MATTER OF AVISTA UTILITIE’S APPLICATION FOR AN
ORDER APPROVING A CHANGE IN RATES FOR PURCHASED GAS
COSTS AND AMORTIZATION OF GAS-RELATED DEFERRAL
BALANCES; CASE NO. AVU-G-22-06.

On September 2, 2022, Avista Corporation dba Avista Utilities (“Company”) filed its
annual Purchased Gas Cost Adjustment (“PGA”) Application asking to increase its annualized
revenues by about $11.2 million or approximately 12.7%. Application at 1.1 The Company states
that the PGA Application is filed concurrently with the Company’s natural gas energy efficiency
filing where the Company is asking to increase natural gas revenues to reduce the underfunded
tariff rider balance. See Case No. AVU-G-22-07. The Company indicates its proposal will not
affect its earnings. See Cover Letter to the Application. The Company represents that if the PGA
and natural gas energy efficiency tariff adjustment are approved by the Commission, residential
natural gas customers in Idaho using an average of 63 therms per month would see their monthly
bills increase from $61.30. to $70.52, an increase of $9.22 per month, or approximately 15%. The
Company asks that its PGA Application be processed by Modified Procedure, and that the new
rates take effect on November 1, 2022.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure establishing an October 6, 2022, public comment deadline and an October 13,
2022, Company reply deadline.

1 The PGA mechanism is used to adjust rates to reflect annual changes in the Company’s costs for the purchase of
natural gas from suppliers — including transportation, storage, and other related costs.
DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure establishing an October 6, 2022, public comment deadline and an October 13, 2022,
Company reply deadline?

_____________________________
Michael Duval
Deputy Attorney General

I:\Legal\GAS\AVU-G-22-06 PGA\memos\AVUG2206_dec_md.docx