20150826notice_of_application_order_no_33368.pdf

Office of the Secretary
Service Date
August 26.2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR )CASE NO.AVU-E-15-07
AUTHORITY TO AMEND ITS ANNUAL )
POWER COST ADJUSTMENT (PCA)RATES )NOTICE OF APPLICATION
)
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33368
On July 31,2015,Avista Corporation dba Avista Utilities filed its annual Power Cost
Adjustment (PCA)Application.The PCA mechanism permits Avista to adjust its PCA rates
upward or downward to reflect changes in the Company’s annual “power supply costs.”
Because of its reliance on hydroelectric and natural gas-fired generation,Avista’s annual cost of
providing electricity (i.e.,its power supply costs)vary from year-to-year depending on changes
in streamfiow,thermal fuel costs,the market price of power,and changes in power contract
revenue and expenses.Application at 2.The annual PCA rate is combined with the Company’s
“base rates”to produce a customer’s overall energy rate.
In this PCA Application,Avista calculates that its annual power costs for the period
July 1,2014 through June 30,2015,have decreased by approximately $1.203 million.
Consequently,the Company is requesting that the Commission approve a rebate or credit to
customers of 0.032 per kilowatt-hour (kWh)to be effective October 1,2015.Because PCA rate
adjustments are spread on a uniform cents-per-kWh basis,Avista calculates that the PCA credit
results in an overall PCA rate decrease of 35%I
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company’s power supply expenses were
lower than expected and will result in a credit for Idaho customers.The Company reports that
the net difference between its actual power supply costs and the payments owed to Clearwater
Paper for supplying power provided a net credit to customers of S82 I ,579.Johnson Direct at 3.
On June 1,2015.Avista also filed an application seeking an increase in its base rates effective January 1.2016.
See consolidated Case Nos.AVU-E-15-05 and AVU-G-15-01.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33368 1
In addition,the Company reported a credit in the amount of $382,725 from the settlement of
BPA’s Residential Exchange Program.Application at 4.Partly otTsetting these lower costs were
interest payments of $1,700.Id.at n.1.
YOU ARE FURTHER NOTIFIED that last year Avista’s PCA application resulted in
a surcharge to customers of 0.2520 per kWh.In this Application,the Company proposes that the
PCA credit or rebate for all customers in tariff Schedule 66 move from a surcharge of 0.252 per
kWh to a credit of 0.0320 per kWh.Because the PCA rate adjustments are spread on a uniform
cents-per-kilowatt-hour basis the resulting percentage decrease in billed revenues varies by
customer groups.The overall decrease in the PCA rate is 3.5%.Application at 6.
YOU ARE FURTHER NOTIFIED that the Company calculates that the average
residential customer using 929 kWh of electricity per month will see a monthly decrease caused
by the PCA rebate/credit of $2.64,or a decrease of 3.1%.Small business customers taking
service under tariff Schedule 11 and 12 will see a decrease in their PCA rates of 2.73%.Exh.
PDE-l.
YOU ARE FURTHER NOTIFIED that the Company proposed that its Application be
processed under Modified Procedure to become effective on October 1,2015.
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 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 any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission no later
than September 15,2015.The comment must contain a statement of reasons supporting the
comment.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 Avista at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33368
Commission Secretary Kelly 0.Norwood
Idaho Public Utilities Commission Vice President,State and Federal Regulations
P0 Box 83720 Avista Utilities
Boise,ID 83720-0074 1411 E.Mission Avenue
Spokane,WA 99220-3727
Street Address for Express Mail E-Mail L 4
472 W.Washington Street David J.Meyer,Esq.
Boise,ID 83702-5918 Vice President and Chief Counsel
Regulatory and Governmental Affairs
Avista Corporation
1411 E.Mission Avenue
Spokane,WA 99220-3727
E—mail:
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 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 the Company may file reply comments,if
necessary,no later than September 18,2015.
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.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission’s web site at wvuidahocv.Click on the
“File Room”tab at the top of the page,scroll down to the type of “Open 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 Commissions jurisdiction under Title 61 of the Idaho Code and specifically
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33368 3
Idaho Code §61-307,61-503,and 61-622.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.
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 no later than
September 15,2015.
IT IS FURTHER ORDERED that the Company may file reply comments,if
necessary,no later than September 18,2015.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2015.
ATTEST:
Jtn D.Jewel
émmission Secretary
bls/O:AVU-E-1 5-07db
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33368
MARSHA H.SMITH,COMMISSIONER
P
PER,COM S SlONER
PAUL PRESIDENT
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