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Home My WebLink About20140401notice_of_application_order_no_33003.pdfOffice of the Secretary Service Date April 1,2014 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA )CASE NO.AVU-E-14-02 CORPORATION’S APPLICATION TO ) UPDATE ELECTRIC LINE EXTENSION )NOTICE OF APPLICATION SCHEDULE 51 AND ALLOWANCES.) )NOTICE OF )MODIFIED PROCEDURE ) ______________________________ )ORDER NO.33003 On March 14,2014,Avista Corporation filed a tariff advice that sought to revise the Company’s Electric Line Extension Schedule 51 and line extension allowances applicable to new residential,commercial,and industrial customers’services.The proposed changes are to take effect on May 1,2014. Although the Company initially submitted its filing as a tariff advice,the Company and Commission Staff later agreed that the filing—which proposes to update Electric Line Extension allowances that were last set in 2001—should be processed as an application to afford interested persons an opportunity to file written comments under the Commission’s rules of Modified Procedure.The filing was assigned Case No.AVU-E-14-02. With this Order,we provide notice of the Application and set a 21-day period for interested persons to submit written comments. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that with this Application,the Company proposes to revise Electric Line Extension Schedule 51,effective May 1,2014.The Company says it has revised line extension costs based on updates to the Company’s Construction &Material Standards as well as an updated actual average costs of all material and labor used in line extensions during 2013. YOU ARE FURTHER NOTIFIED that the Company says its Distribution Engineering Department has updated the Company’s Construction &Material Standards to comply with the 2012 National Electric Safety Code.Significant changes include higher strength requirements for guy supported wood poles,and guy wire insulation upgrades to prevent transmission of voltage from the utility supply space to the communication worker space. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.33003 1 Further,the Code changes required the Company to review its standard designs and adapt them as necessary.The Company says the resulting design changes fairly and accurately represent the Company’s distribution facilities and are thus reflected in the proposed Schedule 51 costs. YOU ARE FURTHER NOTIFIED that the Company says a significant cost increase is related to the cost of distribution transformers.There are two main reasons for this increase. First,the cost of the transformer itself has increased.Second,the Company’s new Construction &Material Standards shift the costs of certain transformer installation materials from primary and service costs to transformer costs.The Company says the shift results in increased transformer costs that offset the reduction in primary and service costs. YOU ARE FURTHER NOTIFIED that the Company also proposes to update the electric line extension allowances that apply to new residential,commercial and industrial customer’s services,The current allowances were set in 2001.See Order No.28562 (Case No.AVU-E-00-01).For purposes of calculating the revised allowances,the Company says it used an embedded-cost methodology to ensure that investment in distributionlterminal facilities for each new customer will equal the embedded costs of the same facilities used to calculate base rates.The Company says the new customer would pay any costs above the allowance as a contribution in aid of construction.The Company says it calculated the embedded costs by using the cost-of-service study from its most recent general rate case (AVU-E-12-0l)as updated to reflect the approved settlement agreement in that case.The changes to the proposed allowances are,in summary: Current Proposed Service Schedule Allowance Allowance Schedule 1 Individual Customer (per unit)$1,000 $1,600 Schedule 1 Duplex (per unit)$800 $1,275 Schedule 1 Multiplex (per unit)$600 $975 Schedule 11/12 (perkWh)$0.10703 $013766 Schedule 21/Il (perkWh)$0.06000 $0.11657 Schedule 3 1/32 (perkWh)$0.6000 $0.19689 YOU ARE FURTHER NOTIFIED that the Company says that for residential developments,the proposed changes to Construction &Material Standards,construction costs NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.33003 based on 201 3 average costs,and increased allowance per residential unit results in a lower developer and builder required payment.In summary: Residential Developments Filing —Development Summary 2013 2014 Total Cost per Lot $1,716 $1,598 Less:Service Cost 469 485 Developer Responsibility $1,247 $1,113 Developer Non-refundable Payment $247 - Developer Refundable Payment $1,000 $1,113 Builder Payment $469 0 YOU ARE FURTHER NOTIFIED that the Company says that the week of March 17,2014,it will send a letter to the developers and builders that may be affected by the proposed changes. YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers have been filed with the Commission and are available for public inspection during regular business hours at the Commission offices.The Application is also available on the Commission’s web site at www.puc.idaho.goY.Click on the “File Room”tab at the top of the page,scroll down to “Electric Cases,”and then click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code.The Commission may enter any final order consistent with its authority under Title 61. YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 ei seq. NOTICE OF MODIFIED PROCEDURE YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commissions Rules of Procedure,IDAPA 31.01.01.201 through .204.The Commission notes that Modified NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.33003 Procedure and written comments have proven to be an effective means for obtaining public input and participation. YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this Application must file a written comment in support or opposition with the Commission within 21 days of the service date of this Order.The comment must contain a statement of reasons supporting the comment. YOU ARE FURTHER NOTIFIED that persons desiring a hearing must specifically request a hearing in their written comments.Written comments concerning this Application shall be mailed to the Commission and the Applicant at the addresses reflected below: Commission Secretary David Meyer Idaho Public Utilities Commission Avista Corporation P0 Box 83720 1411 East Mission Boise,ID 83 720-0074 P0 Box 3727 Spokane,WA 99220-0500StreetAddressforExpressMail:E-mail:david.meyer(avistacorp.com 472 W.Washington Street Patrick EhrbarBoise,ID 83702-5918 Joe Miller Avista Corporation 1411 East Mission P0 Box 3727 Spokane,WA 99220-0500 E-mail:patrick.ehrbar(ci;avistacorp.com joe.miller@avistacorp.com These comments should contain the case caption and case number shown on the first page of this document.Persons desiring to submit comments via e-mail may do so by accessing the Commission’s home page located at www.puc.idaho.gov.Click the “Case Comment or Question Form”under the “Consumers”tab,and complete the form using the case number as it appears on the front of this document.These comments must also be sent to the Company at the e-mail addresses listed above. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set,the Commission will consider this matter on its merits and enter its Order without a fonnal hearing.If written comments are received within the time limit NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.33003 4 set,the Commission will consider them and,in its discretion,may set the same for formal hearing. ORDER IT IS HEREBY ORDERED that this case be processed under Modified Procedure. Persons wishing to file written comments must do so within 21 days from the service date of this Order. DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this / day of April 2014. k /1 PAUL MACK A.REDF RD,COMMISSIONER I /—Th (C)ii 0 MARSHA H.SMITH,COMMISSIONER ATTEST: 1 Jean D.Jewell! Commission Secretary bis/O:AVU-E-I 4-O2kk NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.33003 5