20150731Application.pdf

Avista Corp.
1411 East Mission P.O.Box3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 800-727-9170
VIA OVERNTGHT MAIL
July 30, 2015
{,rulSTfr
Corp.
Ms. Jean D. Jewell, Commission Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise, ID 83702-5983
RE: Case No. AVU-E-15-j7
Power Cost Adjustment (PCA) Annual Filing of Avista Corporation
Dear Ms. Jewell:
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 disc.
The Company is requesting that the Commission issue an order approving recovery of power
costs deferred for the period July 1,2014 through June 30,2015, and approving a PCA rebate of
0.032(, per kilowatt-hour to be effective October 1,2015. Under the Company's proposal, the
PCA rate for all customers, including residential customers, would decrease from a surcharge
rate of 0.252(, per kilowatt-hour to a rebate rate of 0.032i, per kilowatt-hour, or a decrease of
0.284(, 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 3.5oh.
For an average residential customer using 929 kilowatt-hours per month, the monthly decrease
will be $2.64. Under present rates, a residential bill for 929 kilowatt-hours amounts to $85.24.
With the proposed rebate in place the monthly bill would be $82.60, or 3.lo/o less than the bill
under present rates.
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.
Page I of2
As such, Avista is submiuing a separate electronic CD containing the electronic form of the
CONFIDENTIAL supporting documents, in compliance with Rule 067.02.b.
Please direct any questions regarding this filing to Annette Brandon at [phone] or Patrick
Ehrbar at [phone].
Sincerely,[2 1z
David J. Meyer
Vice President and Chief Counsel for Regulatory and Governmental Affairs
Enclosures
Page2 of2
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 following:
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 1100
Spokane, WA 99201
marv. lewa I Ien @clearwaterpaper. com
(Excluding Confidentia! Information)
Dean J. Miller
McDevitt & Miller LLP
P.O.Box 2564
Boise, lD 83701
Email: [e-mail]
(Excluding Confidential lnformation)
Larry A Growley
The Energy Strategies lnstitute lnc
5549 S. Cliffsedge Ave
Boise, ID 83716
Email: [e-mail]
(Excluding Confidential Information)
Patrick Ehrbar
Manager, Rates & Tariffs
Spokane, Washington this 30th day of July 2015.
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DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY AND GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
1-4]-]- E. MISSION AVENUE
P. O. BOX 3727
SPOI(ANE, WASHINGTON 99220
PHONE: [phone]]-6, FAX: [phone]
;" :'' (Q, j ' . .J
cAsE NO. AVU-E-]-s-fl
APPLICATION OF AVISTA
CORPORATION
BEFORE
IN THE MATTER OF
AD,JUSTMENT (PCA)
AD.]USTMENT FILING
CORPORATION
ANNUAL RATE
OF AVISTA
THE IDAHO PUBLIC UTILTTTES COMMISSTON
THE POWER COST )
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I. IMTRODUCTION
Avista Corporation, doing business as Avista Utilities
(hereinafter Avista or Company), dt L41l- East Mission
Avenue, Spokane, Washington, respectfully files its Power
Cost Adjustment (PCA) annuaf rate adjustment filing in the
above referenced case. The Company requests the Commission
issue an order approving the Ieve1 of power costs deferred
in the rebate direction f or the period .fu1y L, 201-4 through
,June 30, 201-5, and approving a PCA rebate rate of 0.032Q per
kilowatt-hour to be effective October 1-, 201-5. The Company
requests that this filing be processed under the
Commission' s Modified Procedure Ru1es.
AVISTA'S PCA ANNUAL RATE AD.JUSTMENT FILING PAGE 1
I Communications in reference to this Application should
2 be addressed to:
3 Oavid J. Meyer, Esq.
4 Vice President and Chief Counsel for
5 Regulatory & Governmental Affairs6 avista Corporation
7 P.O. Box 3727
8 rarr E. Missi-on Ave
9 Spokane, WA 99220-3727
l0 Phone: [phone]-G11 Fax: [phone]
12 [e-mail]
13
14 Ke11y Norwood
15 Vice President - State and Federal Regulation
16 Avista Utilities17 P.o. Box 3727
18 t4:-1- E. Mission Ave
19 Spokane, WA 99220-372720 Phone: [phone]
2l Fax: [phone] [e-mail]
23
24 Electronically25 [e-mail]
26
27
28 Avista's PCA is used to track changes in revenues and
29 costs associated with variations in hydroelectrj-c
30 generation, secondary prices, thermal fuel costs, and
31 changes in power contract revenues and expenses. Avista,s
32 existi-ng PCA methodology and method of recovery were
33 approved in Case No. AW-E-07-01 by Order No. 30361 dated
34 ,June 29 , 2007. In that case the Commission approved a
35 change in the PCA methodology from a trigger and cap
II. BACKGROUND
AVISTA'S PCA ANNUAL RATE AD,JUSTMENT FILING PAGE 2
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mechanism to a single annual PCA rate adjustment filing
requirement.
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-10-03 dated March 15, 20LL, the Commj-ssion
modified the retail revenue credit methodology and approved
a Load Change Adjustment Rate based on the energy classified
portion of embedded production revenue requirement effectj-ve
April t, 20LL.
The Commission approved the following procedural
schedule for administering the annual PCA filings:
August 1
September 1
October 1
Company f iling f or prj-or July .June
deferral period
Review and comments by St.aff and other
interested parties
Commission Order and effective date of
PCA rate adjustment
The present PCA rebate was made effective on October 1,
2014. On July 31, 20L4, in Case No. AW-E-1,4-06, Avista
f iled its annual PCA report f or the period .fu1y 1-, 201-3
through June 30, 2OL4 and requested a PCA surcharge rate of
AVISTA'S PCA ANNUAL RATE AD.JUSTMENT FILING PAGE 3
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O .252+ per kilowatt-hour ef f ecti-ve October 1-, 20L4. The
Commission approved that proposal by Order No. 33140, dated
September 30 , 201-4.
III. DEFERRAI,S - iTULY 1, 2014 THROUGH iN'NE 30, 2015
The amount of power cost deferrals for the period .fuIy
l, 20L4 through June 30, 201,5 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 BPA Settlement transfer and
interest amount.
Deferrals (,JuIy 201,4 - June 201,5)
Transfer BPA Settlement
Interestl
Rebate Balance at ,Iune 30, 2015
($821,579)
(382,725)
1, 700
(#1,202 ,604)
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 .fu1y 20:..4 through
June 2Ol5 has been included with this filing and has also
been provided to Clearwater Paper Corporation and Idaho
Forest Group.
t The PCA bal-ance for the majority of the ,Iuly 2014 through June 2OL5
time period was in the surcharge position. As such, interest was
accrued in the surcharge direction, and was only partially offset, by the
monthly PCA rebate entries for March through ,fune 201-5. Therefore, netinterest for the year was a surcharge even with an overall rebate
balance.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4
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IV. PROPOSED REBATE TO BE EFFECTIVE OCTOBER 1, 2015
The Company is proposing a uniform cents per kilowatt-
hour PCA rebate rate of 0.032+ to be effective October 7-,
201-5. Attached as Exhibit \rA" is a copy of the proposed
tariff, Schedule 66 (Seventeenth Revision), which contains
the proposed PCA rebate rate. Also included in Exhibit \1A"
is a tariff sheet that shows the proposed changes to
Schedule 55 (Seventeenth Revj-sion) by the use of strikeouts
and underlining. Page 1 of Mr. Ehrbar's Exhibit No. PDE-1
shows the calculation of the proposed rebate. The proposed
rebate is designed to collect a) the deferrals for the
period ,Ju1y 1-, 20L4 through June 30, 2015, b) recovery of
the unamortized surcharge balance for the October 7, 201,4 to
September 30, 2015 rate period, and c) estimated interest to
be recorded durj-ng the twelve months the rebate will be in
effect (October 1, 2OL5 through September 30, 20]-6) ,
Since PCA rate changes are spread on a uniform cents
per kilowatt-hour basis, the resulting percentage decreases
vary by rate schedule. Page l- of Mr. Ehrbar's Exhibit No.
PDE-I- shows the effect of the proposed PCA rebate by rate
schedule. The proposed rebate is 0.032+ per kilowatt-hour,
which is 0.0284+ per kilowatt-hour less than the existing
surcharge of 0.252+ per kilowat.t-hour. Column (f ) on page 1
AVISTA, S PCA ANNUAL RATE AD.fUSTMENT FILING PAGE 5
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of Exhibit No. PDE-1 shows the percentage decrease by rate
schedule. The overall decrease is 3.5?.
Residential customers using an average of 92g kilowatt-
hours per month would see their monthly bills decrease from
$85.24 to i82.50, a decrease of $2.64 per month, or 3.1?.
v. REQUEST FOR RELTEF
The Company reguests the Commission issue an order
approving the Ieve1 of power costs deferred in the rebate
direction for the period ,Ju1y 1, 201-4 through June 30, 20L5,
and approving a PCA rebate of 0.032+ per kilowatt-hour to be
effective October L, 20L5. The Company requests that the
matter be processed under the Commission's Modified
Procedure rules through the use of written comments.
Dated at Spokane, Washington this 3Oth day of July
20L5.
AVISTA CORPORATION
Vice President
Regulatory and
and Chief Counsel for
Governmental Affairs
AVISTA'S PCA AI{NUAL RATE AD.]USTMENT FILING PAGE 5
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VERIFICATION
STATE OF WASHINGTON
County of Spokane
David J. Meyer, being first duly sworn on oath, deposes
and says: That he is the Vice President and Chief Counsel
for Regulatory and Governmental Affairs for Avista
Corporation and makes this veriflcation for and on behalf of
said corporation, being t,hereto duly authorized;
That he has read the foregoing filing, knows the
contents thereof, and believes the same t,o be true.
SIGNED AIID SWORN to before me this 30th day of July
2OL5, by David J. Meyer.
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AVISTA'S PCA AI{NUAL RATE ADiTUSTMENT FILING PAGE 7
Case No. AVU-E-I5-
Exhibit ..A)'
!.P.U.C. No.28
Seventeenth Revision Sheet 66
Canceling
Sixteenth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric servioe
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actualand allowed net power supply costs.
MONTHLY MTE:
The energy charges of electric Schedules 1, 11, 12,21,22, 25, 25P,31, 32, and
4149 are to be decreased by 0.032$ per kilowatt-hour in all blocks of these rate
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 31,2015 Effective October1,2015
lssued Avista
Kelly O. Norwood - Vice President, State & Federal Regulation
l.P.U.C. No.28
Seventheenth S$Ceenth Revision Sheet 66
Canceling
Sixteenth Fifteenth Revision Sheet 66 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold and t+the flat rate eharges fer Cempany ewned er
iee. This Rate Adjustment is
designed to recover or rebate a portion of the difference between actual and allowed
net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12,21, 22,25, 25P,31, anC 32.
and 41-49 are to be decreased inereased by 0.032d W$, per kilowatt-hour in all
blocks of these rate schedules.
Flat rate eharges fer Cempany ewned er Custemer ewned Street tighting and
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 31 n,2015?s14 Effective October 1,2015?o44
lssued by
By
Avista Utilities
Kelly O. Norwood - Vice President, State & Federal Regulation