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Home My WebLink About20230503Avista Workshop.pdfWorkshop Participation Online: To open chat in WebEx, please select the icon. Type questions and comments in the chat box; Please use the “all panelists” option when using chat to ensure your message will be seen. To speak, click on the hand in the lower right corner. On the phone: *3 is the command to raise and lower your hand; When your line has been un-muted, you will hear an announcement indicating that. This PowerPoint is available on the commission’s homepage at puc.idaho.gov. 1 2 3 Introduction Purpose of Public Workshop Informational session to learn about the case •Present Avista Utilities Company’s application •Explain IPUC Staff’s role in the case •Provide customers an opportunity to meet IPUC Staff members •Ask questions and learn how to submit written public comments This Public Workshop is not part of the official case record. 4 •Established in 1913. Idaho Code Sections 61, 62, and 63 •The Commission regulates Idaho’s investor-owned utilities, ensuring adequate service and reasonable rates •The Commission is made up of three commissioners appointed by the Governor and confirmed by the Senate. The Commissioners make the decisions in each case. •Commission Staff is made up of Auditors, Consumer Compliance Investigators, Engineers, Technical Analysts, and Admin •Commission Staff is conducting this workshop, is one of the Parties in the rate case, and will provide testimony to the Commissioners *All Commission decisions must withstand Idaho Supreme Court appeals from either utility or customer groups. What is the Idaho Public Utilities Commission? 5 State law requires that the Commission Consider the evidence that is on the record •Avista Utilities Company’s Application •Testimony from Commission Staff & Other Parties to the case •Customers’ written comments or oral testimony at public customer hearings Allow Utilities Companies to: •Recover prudently incurred expenses necessary to provide service to customers •Earn a reasonable rate of return on investments the Company makes in order to provide service to customers 6 State law requires that Utility Companies 7 Serve every customer in their assigned territory •Customers do not have a choice of a different utility company. For this reason, customers cannot be unjustly denied service by utility companies Meet the statutory public interest standard, ensuring customers have: •Adequate, safe, and reliable service •Fair and reasonable rates 8 9 Event Date Location Case Filed February 1, 2023 Public Workshop Today (May 3, 2023)Virtual Public Comments Today thru June 14, 2023 Staff Testimony June 14, 2023 Company Rebuttal Testimony July 12, 2023 Public Customer Hearing TBA TBA Technical Hearing Start on August 1, 2023 Boise ID Close of Case Final Order Proposed Effective Date Final Order Application General Rate Case Proposed Two-Year Rate Plan: •Start Year 1 -September 1, 2023 •Start Year 2 -September 1, 2024 *Same for Both Natural Gas and Electric Utility Customers 10 Application Proposed Electric: •Year 1-Increase of $37.5 Million (+14.7%) •Year 2-Increase of $13.2 Million (+4.5%) 11 Application Proposed Natural Gas: •Year 1 –Increase of $2.8 Million (+2.7%) •Year 2 –Increase of $0.1 Million (+0.01%) 12 Factors Contributing to the Increase: Plant Capital Investment (Up Through Rate Year 1): •Electric: +$240.6 Million •Natural Gas: +$45.6 Million Plant Capital Investment (Rate Year 1 to Rate Year 2): •Electric: +$83.5 Million •Natural Gas: +$11.9 Million 13 Application Company increase needed to: Respond to customer requests for new service or service enhancements Meet regulatory and other mandatory obligations Replace equipment that is damaged or fails, and support field operations Replace infrastructure at the end of its useful life based on asset condition Meet customers expectations for quality and reliability of service Address system performance and capacity issues 14 Application Other Factors Contributing to the Increase: Higher Net Power Supply Expense (Electric Only) Higher Distribution Expense Higher Operations and Maintenance Expense Higher Administrative and General Expense 15 Application 16 What is Revenue Requirement? The amount of revenue that a Utility Company needs each year to: •Recover prudently incurred expenses •Earn a return on its capital investments 17 Revenue Requirement Components Defined Operating Expenses •Wages, office supplies, rent, etc. which contribute to providing service to customers Taxes •State and Federal taxes related to providing service to customers Rate of Return •The average cost of debt (interest) and authorized return on equity (investors) Plant •Infrastructure investments used to provide service to customers Depreciation •Recovery of plant used to provide service to customers 18 Ultimately Avista needs to be able to Recover its prudently incurred expenditures Operating Expenses Depreciation Taxes Plant additions Offer a sufficient rate of return to attract investors Investors on the stock market supply necessary funds to Avista which are used to provide utility service Most investors will only invest in a Company if they expect a reasonable return on their investment 19 Application, IPUC Staff Role, and Final Order Avista filed an application to the PUC with information regarding the revenue requirement components: •Staff analyzes this information to determine accuracy and prudency of expenditures •Staff then proposes opinions on adjustments to these amounts •Ultimately, the Commissioners review all evidence and have authority to issue a final order 20 21 Rate Structure Overview 22 Company’s Revenue Requirement is recovered through two types of charges: Customer Charge Fixed amount on each monthly bill ($/month) Charge is before using any electricity Usage Charge Amount based on amount of consumption ($/kWh*) *This measurement is tracked by a meter to determine amount of electricity used by individual customers. Proposed Total Bill Impact: Based on Usage of 927 kWh/ Month: Current Thru Year 2 23 Rate Class Current Charge Proposed Charge Year 1 Proposed Charge Year 2 Residential Sch. 1-Total Monthly Bill *$85.40 $98.58 $103.24 * Total charges are dependent on actual kWh used and may be higher or lower than indicated on this chart Proposed Customer Electric Charges: Year 1 * 24 Rate Class Current Charge Proposed Charge Year 1 Percent Change Residential Sch. 1-Customer Charge $7.00 $15.00 114.29% Residential Sch. 1-Usage: First 600 kWh (Per/kWh) 9.234 ¢9.77 ¢5.8% Residential Sch. 1-Usage: Over 600 kWh (Per/kWh) 10.378 ¢10.979 ¢5.8% * Year 1 rates would begin on September 1, 2023 Proposed Total Bill Impact: Based on Usage of 927 kWh/ Month: Year 1 25 Rate Class Current Charge Proposed Charge Year 1 Increase Residential Schedule 1 $85.40 $98.58 $13.18 * Total charges are dependent on actual kWh used and may be higher or lower than indicated on this chart Proposed Customer Electric Charges: Year 2 * 26 Rate Class Proposed Charge Year 1 Proposed Charge Year 2 Percent Change Residential Sch. 1-Customer Charge $15.00 $20.00 33.33% Residential Sch. 1-Usage: First 600 kWh (Per/kWh) 9.77 ¢9.34 ¢-0.36% Residential Sch. 1-Usage Over 600 kWh (Per/kWh) 10.979 ¢10.939 ¢-0.36% * Year 2 rates would begin on September 1, 2024 Proposed Total Bill Impact: Based on Usage of 927 kWh/ Month: Year 2 27 Rate Class Proposed Charge Year 1 Proposed Charge Year 2 Increase Residential Schedule 1 $98.58 $103.24 $4.66 * Total charges are dependent on actual kWh used and may be higher or lower than indicated on this chart 28 Rate Structure Overview 29 Company’s Revenue Requirement is recovered through two types of charges: Customer Charge Fixed amount on each monthly bill ($/month) Charge is before using any gas Usage Charge Rate based on amount of consumption ($/Therm*) * This measurement is tracked by a meter to determine amount of gas used by individual customers. Proposed Total Bill Impact: Based on Usage of 64 Therms/ Month: Current Thru Year 2 30 Rate Class Current Charge Proposed Charge Year 1 Proposed Charge Year 2 General Service Schedule 101-Total Monthly Bill * $73.42 $76.02 $76.16 * Total charges are dependent on actual Therms used and may be higher or lower than indicated on this chart Proposed Customer Gas Charges: Year 1 * 31 Rate Class Current Charge Proposed Charge Year 1 Percent Change General Service Schedule 101-Customer Charge $7.00 $15.00 114.29% General Service Schedule 101-Usage ($/ Therm) 44.001 ¢35.557 ¢-19.19% * Year 1 rates would begin on September 1, 2023 Proposed Total Bill Impact: Based on Usage of 64 Therms/ Month: Year 1 32 Rate Class Current Charge Proposed Charge Year 1 Increase General Service Schedule 101-Total Monthly Bill * $73.42 $76.02 $2.60 * Total charges are dependent on actual Therms used and may be higher or lower than indicated on this chart Proposed Customer Gas Charges: Year 2 * 33 Rate Class Proposed Charge Year 1 Proposed Charge Year 2 Percent Change General Service Schedule 101-Customer Charge $15.00 $20.00 33.33% General Service Schedule 101-Usage ($/ Therm) 35.557 ¢27.959 ¢-21.37% * Year 2 rates would begin on September 1, 2024 Proposed Total Bill Impact: Based on Usage of 64 Therms/ Month: Year 2 34 Rate Class Proposed Charge Year 1 Proposed Charge Year 2 Increase General Service Schedule 101-Total Monthly Bill * $76.02 $76.16 $0.14 * Total charges are dependent on actual Therms used and may be higher or lower than indicated on this chart 35 Consumer Assistance •Utility Compliance Investigators assist customers with their inquires and help to resolve issues and/or disputes with Utilities. •Investigators monitor compliance with laws, commission rules, and the Company’s tariff. •Investigators review issues from similar previous cases, review previous complaints, review submitted comments from customers. 36 Customer Comments Customer written comments are due by June 14, 2023 (Reference Case Numbers AVU-E-23-01 or AVU-G-23-01) •Online -Internet Website Address –puc.idaho.gov •Select -Case Comment Form •Email –Address: secretary@puc.idaho.gov •Mail –IPUC, PO Box 83720, Boise, ID 83720-0074 •Fax –Letters or Comment sheets to the Commission at 208-334-3762 •Once Comments are submitted, they become part of the public record and are available on the PUC Public Website. •Public Customer Hearing –TBD •Only comments will be heard, no questions will be addressed. 37 Idaho Public Utilities Homepage 38 Presentation slides are located in this section. Functions of the Commission video. Comments Form Page 39 PUC Home Page 40 Electric Page 41 Open Electric Cases Page 42 Case Summary Page 43 44 Event Date Location Case Filed February 1, 2023 Public Workshop Today (May 3, 2023)Virtual Public Comments Today through June 14, 2023 Staff Testimony June 14, 2023 Company Rebuttal Testimony July 12, 2023 Public Customer Hearing TBA TBA Technical Hearing Start on August 1, 2023 Boise ID Close of Case Final Order Proposed Effective Date Final Order •Customers can subscribe to the Commission’s RSS feed to receive updates about all cases via email. •Continue submitting your comments. •Customer Public Hearing date is TBD. •The Commission will issue a Final Order. Where do we go from here? 45 46 Workshop Participation Online: To open chat in WebEx, please select the icon. Type questions and comments in the chat box; Please use the “all panelists” option when using chat to ensure your message will be seen. To speak, click on the hand in the lower right corner. On the phone: *3 is the command to raise and lower your hand; When your line has been un-muted, you will hear an announcement indicating that. This PowerPoint is available on the commission’s homepage at puc.idaho.gov. 47 48