20130731Application.pdf

Avista Gorp.
14'tl East Mission P.O. Box3727
Spokane. washington 99220-0500
Telephone [phone]
Toll Free 800-727-9'170
FILED VIA OVERNIGHT MATL
July 30,2013
State of Idaho
Idaho Public Utilities Commission
472W. Washington St.
Boise,ID 83702-5983
Attention: Ms. Jean Jewell, Secretary
Case No. AVU-E-I^!'-UI
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Corp.
Power Cost Adjustment (PCA) Annual Filing of Avista Corporation
Enclosed for filing with the Commission is Avista's Power Cost Adjustment (PCA) annual
filing. The filing consists of an original and seven copies of Avista's Application and nine
copies of prefiled testimony and exhibits. Also enclosed are three copies of supporting
workpapers and documentation. A certificate of service, three copies of a customer notice, and
three copies of a press release are also enclosed. A computer readable copy of the testimonies,
exhibits, and workpapers, required under Rule 231.05, are included on an enclosed compact disk.
The Company is requesting that the Commission issue an order approving recovery of power
costs deferred for the period July I , 20 I 2 through June 30, 2013 , and approving a PCA rebate of
0.1521, per kilowatt-hour to be effective October 1,2013. Under the Company's proposal, the
PCA rate for all customers, including residential customers, would increase from a rebate of
0.090P per kilowatt-hour to a rebate of 0.152(, per kilowatt-hour, or an increase in the rebate rate
of 0.0621, per kilowatt-hour. Since PCA rate adjustments are spread on a uniform cents per
kilowatt-hour basis, the resulting percentage decreases vary by rate schedule. The overall
decrease is 0.83%.
For an average residential customer using 930 kilowatt-hours per month, the monthly decrease
will be $0.58. Under present rates, a residential bill for 930 kilowatt-hours amounts to $78.69.
With the proposed rebate in place the monthly bill would be $78.1l, or 0.74Yo lower than the bill
under present ratesr.
Please note that Avista has deemed certain supporting documents to be classified as
CONFIDENTIAL, rendering these documents exempt from public inspection, examination and
copying pursuant to Sections 9-340A through 9-340F of the Idaho Code. Avista believes that the
identified CONFIDENTIAL supporting documents contain valuable commercial information.
' On July 30, 2013, Avista filed with the Commission changes to its Demand Side Management Tariff Rider
(Schedule 9l) and Residential Exchange Program (Schedule 59). The requested effective date for these filings is
October l, the same requested effective date in this PCA filing. October 1,2013 is also the effective date for the
rate changes approved in the Company's last general rate case (AVU-E-12-08/AVU-G-12-07).
As such, Avista is submitting a separate electronic CD containing the electronic form of the
CONFIDENTIAL supporting docunrents, in compliance with Rule 067.02.b.
Please direct any questions regarding this filing to Patrick Ehrbff at [phone].
Sincerely,ru J^,^*,J
KellyNorwood
Vice Presideng State and Federal Regulation
Enclosures
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have served Avista Corporation's Power Cost Adjustment
(PCA) Annual Rate Adjustment Filing by mailing a copy thereof, postage prepaid, to
the fo!lowing:
Ms Jean D Jewell, Secretary
ldaho Public Utilities Commission
472W. Washington St.
Boise, lD 83702-5983
Marv Lewallen
Clearwater Paper
601 W. Riverside Avenue
Suite 1 100
Spokane, WA 99201
marv. lewa I len @clearwaterpaper. com
(Excluding Confidential lnformation)
Dean J. Miller
McDevitt & Miller LLP
P.O.Box 2564
Boise, lD 83701
Email: [e-mail]
(Excluding Confidential lnformation)
Larry A Crowley
The Energy Strategies lnstitute lnc
5549 S. Cliffsedge Ave
Boise, lD 83716
Email: [e-mail]
(Excluding Confidential lnformation)
Patrick Ehrbar
Manager, Rates & Tariffs
at Spokane, Washington this 30th day of July 2013.
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DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY AND GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
I4I1 E. MISSION AVENUE
P. O.BOX3727
SPOKANE, WASHINGTON 99220
PHONE: [phone], FAX: [phone]
IN THE MATTER OF THE POWER COST )
ADJUSTMENT (PCA) ANNUAL RATE )
BEFORE THE TDAHO PUBLIC UTILITIES COMMISSTON
CASE No. AW-E-:.:.-o+
ADJUSTMENT FILING OF AVISTA ) APPLICATION OF AVISTA
CORPORATTON ) CORPORATION
I. INTRODUCTION
Avista Corporation, doing business as Avista Utilities (hereinafter Avista or Company),
at l4l I East Mission Avenue, Spokane, Washington, respectfully files its Power Cost
Adjustment (PCA) annual rate adjustment filing in the above referenced case. The Company
requests the Commission issue an order approving the level of power costs deferred in the rebate
direction for the period July l, 2012 through June 30,2013, and approving a PCA rebate of
0.1521, per kilowaff-hour to be effective October 1,2013. The Company requests that this filing
be processed under the Commission's Modified Procedure Rules.
Communications in reference to this Application should be addressed to:
Kelly O. Norwood David J. Meyer
Vice President Vice President and Chief Counsel for
State and Federal Regulation Regulatory and Governmental Affairs
Avista Corporation Avista Corporation
141I E. Mission Avenue l4l I E. Mission Avenue
Spokane, Washington 99220 Spokane, Washington 99220
Phone: [phone] Phone: [phone]
Fax: [phone] Fax: [phone]
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE I
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II. BACKGROUND
Avista's PCA is used to track changes in revenues and costs associated with variations in
hydroelectric generation, secondary prices, thermal fuel costs, and changes in power contract
revenues and expenses. Avista's existing PCA methodology and method of recovery were
approved in Case No. AW-E-07-01 by Order No. 30361 dated June 29,2007. In that case the
Commission approved a change in the PCA methodology from a trigger and cap mechanism to a
single annual PCA rate adjustment filing requirement. The Commission approved the following
procedural schedule for administering the annual PCA filings:
August I Company filing for prior July - June deferral period
September I Review and comments by Staff and other interested parties
October I Commission Order and effective date of PCA rate adjustment
The Commission also approved a change in the method of PCA deferral recovery from a
uniform percentage basis to a uniform cents per kilowatt-hour basis effective with the October l,
2007 PCA rate change. By Order No. 32206 in Case No. GNR-E-I0-03 dated March 15, 201l,
the Commission modified the retail revenue credit methodology and approved a Load Change
Adjustment Rate based on the energy classified portion of embedded production revenue
requirement effective April 1, 201l.
The existing PCA rebate was made effective on October 1,2012. On July 30,2012,
Avista filed its annual PCA report for the period July l, 20ll through June 30,2012 and
requested a PCA rebate of 0.0901 per kilowatt-hour effective October l, 2012. The Commission
approved that proposal in Case No. AVU-E-12-06, by Order No. 32654, dated September 28,
2012.
AVISTA'S PCA ANNUAL RATEADJUSTMENT FILING PAGE 2
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III. DEFERRALS -JULY 1,2012 THROUGH JUNE 30,2013
The amount of power cost deferrals for the period July l, 2012 through June 30, 2013 is
shown below, as well as interest for the same period. Company witness Mr. Johnson's testimony
provides an explanation of the factors causing the deferral entries for the period. Company
witness Mr. Ehrbar's testimony addresses the interest amount.
Deferrals (July 2012 - June 2013) $(3,875,180)Interest Q2.309\
Rebate Balance at June 30,2013 $(3.897J189)
Monthly reports have been filed with the Commission regarding actual PCA deferral
entries to date. An additional copy of those reports for the months of July 2012 through June
2013 have been included with this filing and have also been provided to Clearwater Paper
Corporation.
IV. PROPOSED REBATE TO BE EFFECTM OCTOBER 1,2013
The Company is proposing a uniform cents per kilowatt-hour PCA rebate of 0.1521 to be
effective October 1,2013. Attached as Exhibit'A" is a copy of the proposed tariff, Schedule 66
(Fifteenth Revision), which contains the proposed PCA rebate rate. Also included in Exhibit
"A" is a tariff sheet that shows the proposed changes to Schedule 66 (Fourteenth Revision) by
the use of strikeouts and underlining. Page 1 of Mr. Ehrbar's Exhibit No. _ (PDE-I) shows
the calculation of the proposed rebate. The proposed rebate is designed to pass through the
deferrals forthe period July 1,2012 through June 30,2013, as well as the unrecovered balance
related to the July l, 201 I through June 30, 2012 deferral period, the remaining balance related
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 3
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to the Deferred State Income Tax (DSIT) credits as of September 30, 20121, and interest during
the recovery period of October 1,2013 through September 30,2014.
Since PCA rate changes are spread on a uniform cents per kilowatt-hour basis, the
resulting percentage decreases vary by rate schedule. Page I of Mr. Ehrbar's Exhibit No. PDE-I
shows the effect of the proposed PCA rebate by rate schedule. The proposed rebate is 0.1521 per
kilowatt-hour, which is 0.062f per kilowatt-hour greater than the existing rebate of 0.090p per
kilowatt-hour. Column (f) on page 1 of Exhibit No. PDE-I shows the percentage decreases by
rate schedule. The overall decrease is 0.83%.
Residential customers using an average of 930 kilowatt-hours per month would see their
monthly bills decrease from $78.69 to $78.1l, a decrease of $0.58 per month, or 0.74%o. These
impacts do not include other proposed rate changes to become effective on October 1,2013.2
v. REQUEST FOR RELTEF
The Company requests the Commission issue an order approving the level of power costs
deferred in the rebate direction for the period July l, 2012 through June 30, 2013, and approving
a PCA rebate of 0.152$ per kilowatt-hour to be effective October l, 2013. The Company
requests that the matter be processed under the Commission's Modified Procedure rules through
the use of written comments.
' In Case No. AVU-E-10-01, the Company agreed to credit to electric customers $17.0 million of accumulated
deferred state income tax over a two-year period, beginning October l, 2010. The remaining balance not credited to
customers through TariffSchedule99 at the end of the two-year period (ending September 30,2012) was to be
transferred to the PCA deferral account. The Company transferred $484,663 in November 2012.
' On July 30, 2013, Avista filed with the Commission changes to its Demand Side Management Tariff Rider
(Schedule 9l) and Residential Exchange Program (Schedule 59). The requested effective date for these filings is
October I, the same requested effective date in this PCA filing. October l, 2013 is also the effective date for the
rate changes approved in the Company's last general rate case (AVU-E-12-08/AW-G-12-07).
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4
Dated at Spokane, Washington this 30m day of July 2013.
AVISTA CORPORATION
Vice President, State & Federal Regulation
Kelly Nor*ood
AVISTA'S PCA ANNUAL RATE ADruSTMENT FILING PAGE 5
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VERIFICATION
STATE OF WASHINGTON
County of Spokane
Kelly Norwood, being first duly sworn on oath, deposes and says: That he is the
Vice President of State and Federal Regulation of Avista Utilities and makes this verification for
and on behalf of Avista Corporation, being thereto duly authorized;
That he has read the foregoing filing, knows the contents thereof and believes the same
to be true.
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SIGNED AND SWORN to before me this ,*
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of July z}l3,by Kelty Norwood.
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washineto[ residing at Spokane'
?,ffi.,*Nrs commissionExpires: l,,r,v€rnb rf 3,
AVISTA'S PCA ANNUAL RATE ADruSTMENT FILING PAGE 6
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Case No. AVU-E-I3-g{
Exhibit ((A))
l.P.U.C. No.28
Fifteenth Revision Sheet 66
Canceling
Fourteenth Revision Sheet 66 bb
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT. IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold and to the flat rate charges for Company-owned or
Customer-owned Street Lighting and Area Lighting Service. This Rate Adjustment is
designed to recover or rebate a portion of the difference between actual and allowed
net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1 , 11, 12, 21, 22, 25, 25P, 31, and 32
are to be decreased by 0.1520 per kilowatt-hour in all blocks of these rate schedules.
Flat rate charges for Company-owned or Customer-owned Street Lighting and
Area Lighting Service, Schedules 41-49, are to be decreased by 0.1520, per kilowatt-
hour times the monthly usages of the various light sizes and types on these schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 30,2013 Effective October1,2013
lssued by Avista UtilitiesBy , Kelly O. Norwood - Vice President, State & Federal Regulationru J^,^,@J
l.P.U.C. No.28
Fifteenth p6sfr€€nth Revision Sheet 66
Canceling
ourteenth Thirteenth Revision Sheet 66 oo
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold and to the flat rate charges for Company-owned or
Customer-owned Street Lighting and Area Lighting Service. This Rate Adjustment is
designed to recover or rebate a portion of the difference between actual and allowed
net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1,11,12,21,22,25,25P,31, and 32
are to be decreased by 0.152 0.0990 per kilowatt-hour in all blocks of these rate
schedules.
Flat rate charges for Company-owned or Customer-owned Street Lighting and
Area Lighting Service, Schedules 41-49, are to be decreased by 0.152 0€9el per
kilowatt-hour times the monthly usages of the various light sizes and types on these
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 30, 2013?€/P Effective October 1,20'139e12
lssued by Avista Utilities
By Kelly O. Nonrood - Vice President, State & Federal Regulation