20151020notice_of_proposed_settlement_order_no_33400.pdf

Office of the Secretary
Service Date
October20,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NOS.AVU-E-15-05
OF AVISTA CORPORATION DBA AVISTA )AVU-G-15-O1
UTILITIES FOR AUTHORITY TO )
INCREASE ITS RATES AND CHARGES FOR )NOTICE OF
ELECTRIC AND NATURAL GAS SERVICE )PROPOSED SETTLEMENT
IN IDAHO )
)NOTICE OF
)AMENDED SCHEDULE
)
)NOTICE OF PUBLIC AND
)TECHNICAL HEARINGS
)
______________________________
)ORDER NO.33400
On June 1,2015,Avista Corporation dba Avista Utilities applied to increase its
general rates for electric and natural gas service.The Company proposed a two-phase rate plan
that would increase electric billed revenues by $13.2 million (5.2%)on January 1,2016,and by
$13.7 million (5.1%)on January 1,2017.In addition,the Company’s plan would increase
annual natural gas billed revenues by $3.2 million (4.5%)on January 1,2016,and by $1.7
million (2.2%)on January 1,2017.The Company also proposed to implement an electric and
natural gas fixed-cost adjustment (FCA)that would sever the link between Avista’s revenues and
its customers’energy use.
The Commission subsequently suspended the proposed effective date,and allowed
the following parties to intervene in the case:Clearwater Paper Corporation;Idaho Forest Group,
LLC;Community Action Partnership Association of Idaho (CAPAI);Idaho Conservation
League (ICL);and Snake River Alliance (SRA).The Commission also set deadlines for the
parties to file testimony and exhibits,and scheduled public workshops and a technical hearing.
See Order Nos.33324,33331,33338,and 33353.
On October 19,2015,the Company and Commission Staff moved the Commission to
amend the case schedule and approve a Stipulation and Settlement that has been entered into by
all parties.See Motion for Approval of Stipulation and Settlement.
With this Order,we provide notice of the settlement,amend the case schedule,and
set technical and public hearings.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO.33400 1
NOTICE OF PROPOSED SETTLEMENT
YOU ARE HEREBY NOTIFIED that,in summary.the Stipulation and Settlement
proposes to fully resolve the case as follows:’
1.Overview ofSettlement and Revenue Requirement
Avista would revise its tariff schedules to recover $1 .7 million in additional annual
electric revenue (about 0.7%),and $2.5 million in additional annual natural gas revenue (about
3.5%).The new electric and natural gas rates would become effective January 1,2016.
2.Capital Structure and Cost of Capital
Avista’s capital structure and weighted-average cost of capital (rate of return)would
be:
Weighted
Capital Average Cost
Component Structure Cost of Capital
Debt 50%5.34%2.67%
Common Equity 50%9.50%4.75%
Total 100%7.42%
3.Percentage Increase by Service Schedule
Avistas base rates and billing rates would increase overall by 0.7%by schedule,as
reflected below:
Resulting Percentage Increase by Electric Service Schedule
Increase in Base Increase in
Rate Schedule Rates Billing Rates
Residential Schedule 1 0.9%0.9%
General Service Schedules 11/12 0.5%0.5%
Large General Service Schedules 21/22 0.6%0.6%
Extra Large General Service Schedule 25 0.6%0.6%
Clearwater Paper Schedule 25P 0.4%0.4%
Pumping Service Schedules 3 1/32 0.7%0.7%
Street &Area Lights Schedules 4 1-48 0.8°/s 0.8%
Overall LZ
The actual Stipulation and Settlement,including its attachments,is about 28 pages long and much more detailed
than this summary.Interested persons may view the actual Stipulation and Settlement at the Commission’s offices
or on the Commission’s web site.
NOTICE OF PROPOSEI)SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO.33400 2
Avista’s natural gas base rates would increase overall by 6.9%,and its natural gas
billing rates would increase overall by 3.5%.However,because a $1.2 million rebate that
customers currently receive is expiring,and will be replaced with a lesser,$0.2 million rebate
related to Avista’s 2014 natural gas earnings sharing,the actual overall billing increase for
natural gas service,by schedule,is 4.8%as reflected below:
Resulting Percentage Increase by Natural Gas Service Schedule
Billing Increase
Increase in Base Increase in Billing Net of New &
Rate Schedule Rates Rates Expiring Rebate
General Service Schedule 101 7.7%4.1%5.3%
Large General Service Schedules 111/112 3.7%1.5%3.1%
Interrupt.Sales Service Schedules 13 1/132 7.5%2.7%4.8%
Transportation Service Schedule 146*52%3.1%
Overall
*excludes commodity and interstate pipeline transportation costs
4.Fixed Cost Adjustment Mechanism
Avista would implement an electric and natural gas FCA that severs the link between
Avista’s revenues and its customers’energy use.There will be two rate groups established for
the electric FCA and the natural gas FCA:residential and commercial.Avista would provide
quarterly and annual reports detailing FCA activities,and any other reasonably requested
information upon demand.The FCA would have an initial term of three years,and its efficacy
would be reviewed after the second full year.
YOU ARE FURTHER NOTIFIED that all parties,including Commission Staff,
CAPAI,SRA,ICL,Idaho Forest Group,and Clearwater Paper,represent that the Stipulation and
Settlement is in the public interest and is fair,just and reasonable.The Commission is not,
however,bound by these representations;the Commission will independently review the
proposed settlement to decide whether to approve it,reject it,or state conditions under which to
accept it.The proposed settlement’s proponents ultimately must prove that it is just,fair and
reasonable,in the public interest,or otherwise in accordance with law or regulatory policy.
YOU ARE FURTHER NOTIFIED that the Stipulation and Settlement,Application,
and supporting workpapers,testimony,and exhibits are available for public inspection during
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO.33400 3
regular business hours at the Commission offices.They also may be viewed on the
Commission’s web site at www.puc.idaho.gov by clicking on “File Room”and then “Electric
Cases”and/or “Natural Gas Cases”and then going to the case numbers referenced in the above
caption.
NOTICE OF AMENDED SCHEDULE
YOU ARE FURTHER NOTIFIED that the Commission vacates the existing case
schedule,and replaces it with the following amended schedule:
DATE ACTIVITY
November 13,2015 Deadline for all parties to file prefiled testimony
November 23,2015 Customer and technical hearings
The parties’prefiled testimony and exhibits must conform to the requirements of
Rules 231,266 and 267 of the Commission’s Rules of Procedure.Reference IDAPA
31.01.01.231 and .266-.267.The above deadlines are for testimony and exhibit filing with the
Commission.E-copy service on parties of record should be made on the same date to the extent
practicable with full service of testimony and exhibits provided to parties of record no later than
the following business day.
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
YOU ARE FURTHER NOTIFIED that the Commission will convene a technical
hearing in this matter.The purpose of the technical hearing is to take testimony from the parties
(the Company,Staff,and the intervenors).The technical hearing will convene on MONDAY,
NOVEMBER 23,2015,AT 9:30 A.M.IN THE COMMISSION’S HEARING ROOM AT
472 WEST WASHINGTON STREET,BOISE,IDAHO.
YOU ARE FURTHER NOTIFIED that the Commission also will convene a
telephonic public hearing in this matter to take testimony from Avista’s customers and other
interested members of the public.The telephonic public hearing will convene on MONDAY,
NOVEMBER 23,2015,AT 7:00 P.M.Persons wishing to testify or listen to the proceedings
should call into the hearing,toll-free:[phone];Participant Code 4435939.The telephonic
hearing will be conducted as follows:
.Those wishing to testify should call the number beginning at 6:45 p.m.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO.33400 4
•Names will be taken of those wanting to testify as they call in.
•When it is your turn to testify,one of the commissioners will call out your
name.You will then be asked to state your name and address and be
sworn in.
•When you testify we ask that you eliminate any background noise,such as
the TV,radio,etc.,in order for us to clearly hear and record your
testimony.At the conclusion of your testimony,you may be asked
questions.
•While people are welcome to listen to the entire hearing,they can speak
only when they testify.
As the Commission is holding a telephonic public hearing,it does not intend to hold an in-person
public hearing unless it receives written comments from customers or other interested persons
specifically asking the Commission to schedule an in-person public hearing.Persons desiring
the Commission to consider setting an in-person hearing must specifically request such a hearing
in their written comments,and explain why a telephonic public hearing is inappropriate or
insufficient in this case.
If you are unable to participate in the public hearing but would nevertheless like to
provide input into the case,you may file written comments with the Commission about the case
through the date of the customer hearing set above.The comments may be mailed to the
Commission at the address referenced in the following paragraph,or they may be c-mailed by
accessing the Commission’s home page located at pcjçtqgpy.Scroll to the
“Consumers”tab,click the “Utility Case Comment or Question Form,”and complete the form
using the case number as it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that all hearings in this case will be held in
facilities meeting the accessibility requirements of the Americans with Disabilities Act (ADA).
Persons needing the help of a sign language interpreter or other assistance in order to participate
in or to understand testimony and argument at a public hearing may ask the Commission to
provide a sign language interpreter or other assistance at the hearing.The request for assistance
must be received at least five (5)working days before the hearing by contacting the Commission
Secretary at:
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO.33400 5
IDAHO PUBLIC UTILITIES COMISSION
P0 BOX 83720
BOISE,IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-Mail:secretarvpuc.idaho.gov
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 and that 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 etseq.
ORDER
IT IS HEREBY ORDERED that an amended schedule,as set forth above,is adopted.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of October 201 5.
PAU KJELLAND ,RESIDENT
zj1
MARSHA H.SMITH,COMMISSIONER
i
KRI TNE RAPER,COMMISSIONER
ATTEST:
ommission Secretary
O:AVU-E-1 5-O5AVU-G-5-Olkk2
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUI3LIC AND TECHNICAL HEARINGS
ORDER NO.33400 6