20140815notice_of_application_order_no_33095.pdf

Office of the Secretar
Service Date
August 15,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA )
CORPORATION’S APPLICATION TO )CASE NO.AVU-E-14-06
AI)JUST ITS ANNUAL POWER COST )
ADJUSTMENT (PCA)RATES )NOTICE OF APPLICATION
)
)NOTICE OF
)MODIFIED PROCEDURE
)
_______________________________
)ORDER NO.33095
On July 30,2014,Avista Corporation dha Avista Utilities (the Company)filed its
annual Power Cost Adjustment (PCA)Application.The Company asks the Commission to
approve a PCA surcharge of 0.252 per kilowatt-hour (kWh)that would enable the Company to
recover the power costs that it deferred from July 1,2013 through June 30,2014.The Company
asks that its Application be processed by Modified Procedure,and that the new PCA rates take
effect October 1,2014.
With this Order,the Commission notifies interested persons about the Application
and invites them to comment on it until September 15,2014.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTTFIED that the PCA mechanism allows the Company to
increase or decrease its PCA rates to reflect changes in the Company’s annual power supply
costs.”Because the Company relies on hydroelectric and natural gas-fired generation,its annual
cost to provide customers with electricity (its power supply costs)varies from year-to-year
depending on changes in streamfiows,thermal fuel costs,the market price of power,and power
contract revenue and expenses.The Company’s annual PCA rate combines with the Companys
base rates”to produce a customer’s overall energy rate.The Commission approved the existing
PCA methodology in Order No.30361 issued in June 2007.In that Order,the Commission
approved the concept of a single PCA rate adjustment.The Commission also approved the PCA
deferral recovery on a uniform cents per kilowatt-hour basis.Last year,the Company’s PCA
application resulted in a rebate to customers of 0.1 52 per kWh.See Order No.32892,Case No.
AVU-E-13-04.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33095 1
YOU ARE FURTHER NOTIFIED that in this year’s PCA Application,the Company
seeks to recover its deferred power costs from July 1,2013 through June 30,2014,through a
PCA surcharge of 0.2520 per kilowatt-hour (kWh).Application at 1.The Company explains the
PCA rate for all customers,including residential customers,would increase from the existing,
0.1520 per kWh rebate set in the last PCA case to a 0.2520 per kWh surcharge,for a 0.4040 per
kWh increase.Id.at 3-4,The Company attributes 38%of the proposed PCA rate adjustment to
the expiring customer rebate.It attributes the remaining 62%of the proposed PCA rate
adjustment to increased power supply costs over the last 12 months.Id.at 4.The Company says
its increased power supply costs primarily arose from:(1)a forced outage at Coistrip Unit 4 that
required the Company to buy replacement power at a higher wholesale price;(2)90%of the net
expense of Palouse Wind flowing through the PCA as a surcharge deferral instead of being
included in base rates;and (3)a change in the Company’s contract with Clearwater Paper that
enables Clearwater to generate into its own load instead of selling its generation to the Company.
See Johnson Direct at 3-5.
YOU ARE FURTHER NOTIFIED that the Company says its proposal would vary by
rate schedule because PCA rate adjustments are spread on a uniform cents per kWh basis.The
Company says the overall increase would be 4.99%.The average residential customer using 930
kWh per month would see a 4.59%increase that would increase their monthly bills by
$3.76/month,from $81.88 to $85.64)Application at 4.
YOU ARE FURTHER NOTIFIED that the Company asks that its Application be
processed under Modified Procedure and that the Commission issue its Order approving the new
PCA rates effective October 1,2014.
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 puc.idaho.gov.Click on the “File Room”tab at the top of the
On July 30,2014,the Company filed Advice No.14-04-E and proposed changes to the Residential Exchange
Program (Schedule 59)that would decrease the average residential customer’s monthly bill by $0.31 or 0.4%.In
that tariff advice,the Company proposes an October 1,2014 effective date,which is the same effective date
proposed in this PCA filing.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33095 2
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 31.01.01.000 et seq.,
including the Modified Procedure rules referenced below.
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 (that is,persons will present their views through written comments)pursuant to Rules
201 through 204 of the Idaho Public Utilities Commission’s Rules of Procedure,IDAPA
31.01.01.201 through .204.The Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission has not scheduled public
informational workshops in this matter.However,if customers request that Staff conduct a
workshop,or if numerous public comments are received,one or more workshops may be
scheduled.Members of the public will be notified if any workshops are to occur.
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 by
September 15,2014.The comment must contain a statement of reasons supporting the
comment.In addition,persons desiring a hearing must specifically request a hearing in their
written comments and explain why they believe that Modified Procedure should not be used to
process this case.Written comments concerning this Application shall be mailed to the
Commission and the Applicant at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33095 3
Commission Secretary
Idaho Public Utilities Commission
P0 Box 83720
Boise,ID 83720-0074
Street Address for Express Mail:
Kelly 0.Norwood
Vice President of State &Federal Regulation
Avista Corporation
1411 E.Mission Avenue
Spokane,WA 99220-3727
E-mail:kellv.norwood(avistacorp.com
472 W.Washington Street
Boise,ID 83702-59 18
David J.Meyer
Vice President and Chief Counsel of
Regulatory and Government Affairs
Avista Corporation
1411 E.Mission Avenue
Spokane,WA 99220-3 727
E-mail:.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 .ugidaiho.gov.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
appears on the front of this document.These comments must also be sent to Avista 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 formal hearing.If written comments are received within the time limit
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.
Interested persons wishing to file comments or protests in this matter must do so by September
15,2014.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33095 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /5
day of August 2014.
PAUL KJEL A R,PRESIDENT
MACK A.REDFO ,COMMISSIONER
SL i8
MARSHA H.SMITH,COMMISSIONER
ATTEST:
‘1
/
Jean D.Jewell
Cmmission Secretary
o AVU-E-14-O6kk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33095 5