20161110notice_of_proposed_settlement_order_no_33641.pdf

Office of the Secretary
Service Date
November 10, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF A VISTA CORPORATION DBA AVISTA )
UTILITIES FOR AUTHORITY TO )
INCREASE ITS RATES AND CHARGES FOR )
ELECTRIC SERVICE IN IDAHO )
)
)
)
)
)
) __________________ )
CASE NO. A VU-E-16-03
NOTICE OF
PROPOSED SETTLEMENT
NOTICE OF
AMENDED SCHEDULE
NOTICE OF PUBLIC AND
TECHNICAL HEARINGS
ORDER NO. 33641
On June 1, 2016, Avista Corporation dba Avista Utilities filed an Application seeking
authority to increase its electric base rates by $15.4 million (6.3%) in Idaho. On June 7, 2016,
the Commission issued a Notice of Application and Notice of Intervention Deadline. Clearwater
Paper Corporation, Idaho Forest Group, Snake River Alliance, and Community Action
Partnership Association of Idaho petitioned for and were granted intervention. The Commission
also set deadlines for the parties to file testimony and exhibits, scheduled public workshops and a
technical hearing.
On October 14, 2016, Staff filed a Motion notifying the Commission that the parties
had reached a settlement and requesting an amendment to the procedural schedule. On October
24, 2016, the Company and Staff jointly moved the Commission to further amend the case
schedule and approve a Stipulation and Settlement that has been entered into by all parties.
With this Order, we provide notice of the settlement, amend the case schedule, and
set technical and public hearings.
NOTICE OF PROPOSED SETTLEMENT
YOU ARE HEREBY NOTIFIED that, in summary, the Stipulation and Settlement
proposes to fully resolve the case as follows: 1
1 The actual Stipulation and Settlement is available for viewing at the Commission's offices or on the Commission's
web site.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO. 33641 I
1. Overview of Settlement and Revenue Requirement
A vista would revise its tariff schedules to recover $6.25 million in additional annual
revenue, or about a 2.6% increase, effective January 1, 2017.
2. Capital Structure and Cost of Capital
A vista'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% 5.67% 2.83%
Common Equity 50% 9.50% 4.75%
Total 100% 7.58%
3. Percentage Increase by Service Schedule
Avista's base rates and billing rates would increase overall by about 2.5% by
schedule, as reflected below:
Resulting Percentage Increase by Electric Service Schedule
Increase in Increase in
Rate Schedule Base Rates Billi~ Rates
Residential Schedule 1 3.2% 3.1%
General Service Schedules 11/J 2 1.9% 1.8%
Large General Service Schedules 21 /22 2.3% 2.3%
Extra Large General Service Schedule 25 1.9% 1.9%
Clemwater Paper Schedule 25P 1.8% 1.8%
Pumping Ser\'i:e Schedules 31 /32 3.1% 3.0%
Street & Area Lights Scheduk:s 41-48 3.4% 3.3%
Overall ~ ~
4. Collaboration on Low Income Issues
The Company and interested parties will meet and confer prior to the Company's next
general rate case to assess the Company's low-income programs and explore different options to
improve those programs.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO. 33641 2
YOU ARE FURTHER NOTIFIED that all parties, including Commission Staff,
Clearwater Paper, Idaho Forest Group, Snake River Alliance, and CAPAI 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
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 then click on the case number 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
November 22, 2016
November 29, 2016
December 2, 2016
ACTIVITY
Deadline to file prefiled testimony relating to the
proposed settlement
Telephonic customer hearing
Technical hearing
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
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO. 33641 3
(the Company, Staff, and the intervenors). The technical hearing will convene on FRIDAY,
DECEMBER 2, 2016, AT 9:30 A.M. (MST) 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 TUESDAY,
NOVEMBER 29, 2016, AT 7:00 P.M. (PST). 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 call the number beginning at 6:45 p.m. (PST).
• 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.
In September 2016, Commission Staff conducted two public workshops-one in
Moscow, and another in Coeur d'Alene. Staff advertised the workshops, but turnout and
participation was slight with only three people attending in Coeur d'Alene, and a single person
attending the Moscow presentation. Further, only 14 public comments have been filed in this
matter, compared to 59 public comments at the same point in Avista's last rate case in 2015.
Likewise, the Commission has determined it prudent to convene a telephonic public hearing in
an effort to facilitate a more convenient and inclusive public participation process for customers
spanning from Lewiston to Sandpoint. Further, the Commission 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
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO. 33641 4
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 e-mailed by
accessing the Commission's home page located at www.puc.idaho.gov. 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:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-Mail: [e-mail]
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 et seq.
ORDER
IT IS HEREBY ORDERED that the amended schedule, as set forth above, is adopted.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO. 33641 5
lo# DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of November 2016.
ATTEST:
O:AVU-E-16-03_bk4
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
ERIC ANDERSON, COMMISSIONER
NOTICE OF PUBLIC AND TECHNICAL HEARINGS
ORDER NO. 33641 6