20160801Application.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
VIA OVERNIGHT MAIL
July 29, 2016
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702-5983
RE: Case No. AVU-E-16-~
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Power Cost Adjustment (PCA) Annual Rate Adjustment Filing of Avista Corporation
Dear Commission Secretary:
Enclosed for filing with the Commission is Avista's Power Cost Adjustment (PCA) annual rate
adjustment 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, 2015 through June 30, 2016, and approving a PCA rebate of
0.017¢ per kilowatt-hour to be effective October 1, 2016. Under the Company's proposal, the
PCA rate for all customers, including residential customers, would decrease from a rebate rate of
0.032¢ per kilowatt-hour to a rebate rate of 0.017¢ per kilowatt-hour, or an increase in the billing
rate of 0.015¢ per kilowatt-hour. Since PCA rate adjustments are spread on a uniform cents per
kilowatt-hour basis, the resulting percentage increase varies by rate schedule. The overall
increase is 0.2%.
For an average residential customer using 918 kilowatt-hours per month, the monthly increase
will be $0.14: Under present rates, a residential bill for 918 kilowatt-hours amounts to $84.72.
With the proposed rebate in place the monthly bill would be $84.86, or 0.2% more than the bill
under present rates.
Certain supporting documents are CONFIDENTIAL, rendering these documents exempt from
public inspection, examination and copying pursuant to Sections 74-101 through 7 4-126 of the
Idaho Code. A vista believes that the identified CONFIDENTIAL supporting documents contain
valuable commercial information.
Page 1 of 2
As such, A vista is submitting 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,
David J. Meyer
Vice President and Chief Counsel for Regulatory and Governmental Affairs
Enclosures
Page 2 of2
CERTIFICATE OF SERVICE
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 :
Commission Secretary
Idaho Public Utilities Commission
4 72 W. Washington St.
Boise, ID 83702-5983
Marv Lewallen
Clearwater Paper
28530 SW Canyon Creek Rd. -South
Wilsonville, OR 97007
[e-mail]
(Excluding Confidential Information)
Dean J. Miller
McDevitt & Miller LLP
3620 E. Warm Springs
Boise, ID 83716
Email: [e-mail]
(Excluding Confidential Information)
Larry A Crowley
The Energy Strategies Institute Inc
5549 S. Cliffsedge Ave
Boise, ID 83716
Email: [e-mail]
(Excluding Confidential Information)
Patrick Ehrbar
Senior Manager, Rates & Tariffs
DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY AND GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
1411 E. MISSION AVENUE
P. 0. BOX 3727
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SPOKANE, WASHINGTON 99220
PHONE: ( 509) 4 95-4316, FAX: [phone]
9
10 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
11 IN THE MATTER OF THE POWER COST
12 ADJUSTMENT (PCA) ANNUAL RATE
13 ADJUSTMENT FILING OF AVISTA
14 CORPORATION
15
16
CASE NO. AVU-E-16-D~
APPLICATION OF AVISTA
CORPORATION
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I. INTRODUCTION
Avista Corporation, doing business as Avista Utilities
19 (hereinafter "Avista" or "Company") , at 1411 East Mission
20 Avenue, Spokane, Washington, respectfully files its Power
21 Cost Adjustment (PCA) annual rate adjustment filing in the
22 above referenced case. The Company requests the Commission
23 issue an order approving the level of power costs deferred in
24 the rebate direction for the period July 1, 2015 through June
25 30, 2016, and approving a PCA rebate rate of 0.017¢ per
26 kilowatt-hour to be effective October 1, 2016. The Company
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 1
1 requests that this filing be processed under the Commission's
2 Modified Procedure Rules.
3 Communications in reference to this Application should
4 be addressed to:
5 David J. Meyer, Esq.
6 Vice President and Chief Counsel for
7 Regulatory & Governmental Affairs
8 Avista Corporation
9 P.O. Box 3727
10 MSC-27
11 1411 E. Mission Ave
12 Spokane, WA 99220-3727
13 Phone: [phone]
14 Fax: [phone]
15 [e-mail]
16
17 Kelly Norwood
18 Vice President -State and Federal Regulation
19 Avista Utilities
20 P.O. Box 3727
21 MSC-27
22 1411 E. Mission Ave
23 Spokane, WA 99220-3727
24 Phone: [phone]
25 Fax: [phone]
26 [e-mail]
27
28 Electronically
29 [e-mail]
30
II. BACKGROUND 31
32 Avista's PCA is used to track changes in revenues and
33 costs associated with variations in hydroelectric generation,
34 secondary prices, thermal fuel costs, and changes in power
35 contract revenues and expenses. Avista's existing PCA
36 methodology and method of recovery were approved in Case No.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 2
1 AVU-E-07-01 by Order No. 30361 dated June 29, 2007. In that
2 case the Commission approved a change in the PCA methodology
3 from a trigger and cap mechanism to a single annual PCA rate
4 adjustment filing requirement.
5 The Commission also approved a change in the method of
6 the PCA deferral rate adjustment from a uniform percentage
7 basis, to a uniform cents per kilowatt-hour basis effective
8 with the October 1, 2007 PCA rate change. By Order No. 32206
9 in Case No . GNR-E-10-03 dated March 15, 2011, the Commission
10 modified the retail revenue credit methodology and approved
11 a Load Change Adjustment Rate based on the energy classified
12 portion of embedded production revenue requirement effective
13 April 1, 2 011.
14 The Commission approved the following procedural
15 schedule for administering the annual PCA filings:
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August 1
September 1
October 1
Company filing for prior July
deferral period
June
Review and comments by Staff and other
interested parties
Commission Order and effective date of
PCA rate adjustment
The present PCA rebate was made effective on October 1,
23 2015. On July 31, 2015, in Case No. AVU-E-15-07, Avista filed
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 3
1 its annual PCA rate adjustment for the period July 1, 2014
2 through June 30, 2015 and requested a PCA rebate rate of
3 0.032¢ per kilowatt-hour effective October 1, 2015. The
4 Commission approved that application in Order No. 33389, dated
5 September 30, 2015.
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7
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III. DEFERRALS -JULY 1, 2015 THROUGH JUNE 30, 2016
The amount of power cost deferrals for the period July
9 1, 2015 through June 30, 2016 is shown below, as well as
10 interest for the same period. Company witness Mr. Johnson's
11 testimony provides an explanation of the factors causing the
12 deferral entries for the period. Company witness Mr. Ehrbar's
13 testimony addresses the deferral and interest amount.
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Deferrals {July 2015 -June 2016)
Interest1
Rebate Balance at June 30, 2016
($483,157)
5,054
($478,103)
Monthly reports have been filed with the Commission
18 regarding actual PCA deferral entries to date. An additional
19 copy of those reports for the months of July 2015 through
20 June 2016 has been included with this filing and has also
1 The PCA balance for the majority of the July 2015 through June 2016 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 February through June 2016. Therefore, net interest
for the year was a surcharge e ven with an ov erall rebate balance.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4
1 been provided to Clearwater Paper Corporation and Idaho Forest
2 Group.
3
4 IV. PROPOSED REBATE TO BE EFFECTIVE OCTOBER 1, 2016
5 The Company is proposing a uniform cents per kilowatt-
6 hour PCA rebate rate of O. 01 7¢ to be effective October 1,
7
8
2016. Page 1 of Exhibit No. PDE-1 shows the calculation of
the proposed rebate. Attached as Exhibit "A" is a copy of
9 the proposed tariff, Schedule 66, which contains the proposed
10
11
PCA rebate rate. Exhibit "A" also includes the proposed
changes to Schedule 66 in strike/underline format. The
12 proposed rebate is designed to rebate the following:
Deferrals and interest for the July 1, 2015
through June 30, 2016 period
Projected Interest on Deferral July 1, 2016
through September 30, 2016
Unamortized Rebate and Interest from October 1,
2015 through September 30, 3016 PCA
Estimate of interest for October 1, 2015 through
September 30, 2016
Total
$ (478,103)
$ (1,209)
$ (34,159)
$ (2,561)
$ (516,032)
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20 After applying the conversion factor related to
21 commission fees and uncollectible customer accounts, the
22 resulting rebate of $519,032 is divided by forecasted
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 5
1 kilowatt-hours to derive the proposed rebate rate of 0.017¢
2 per kilowatt-hour.
3 Since PCA rate changes are spread on a uniform cents per
4 kilowatt-hour basis, the resulting percentage increases vary
5 by rate schedule. Page 1 of Mr. Ehrbar's Exhibit No. PDE-1
6 shows the effect of the proposed PCA rebate by rate schedule.
7 Column (f) on page 1 of Exhibit No. PDE-1 shows the percentage
8 increase by rate schedule. The overall increase, after
9 accounting for the expiration of the existing rebate, and the
10 new rebate, is $457,000, or O. 2%.
11 Residential customers using an average of 918 kilowatt-
12 hours per month would see their monthly bills increase from
13 $84.72 to $84.86, an increase of $0.14 per month, or 0.2%.
14
15 V. REQUEST FOR RELIEF
16 The Company requests that the Commission issue an order
17 approving recovery of power costs deferred for the period
18 July 1, 2015 through June 30, 2016, and approving a PCA rebate
19 of 0.017¢ per kilowatt-hour to be effective October 1, 2016.
20 Under the Company's proposal, the PCA rate for all customers,
21 including residential customers, would decrease from a rebate
22 rate of 0.032¢ per kilowatt-hour to a rebate rate of 0.017¢
23 per kilowatt-hour, or an increase in the billing rate of
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 6
O. 015¢ per kilowatt-hour. Since PCA rate adjustments are
2 spread on a uniform cents per kilowatt-hour basis, the
resulting percentage increase varies by rate schedule. The 3
4 overall increase is O. 2%. The Company requests that the
5 matter be processed under the Commission's Modified Procedure
6 rules through the use of written comments.
7 Dated at Spokane, Washington this 29th day of July 2016 .
8 AVISTA CORPORATION
:~ ~!viaer2r -
12 Vice President and Chief Counsel for
13 Regulatory and Governmental Affairs
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 7
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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 verification for and on behalf of
said corporation, being thereto duly authorized;
That he has read the foregoing filing, knows the contents
thereof, and believes the same to be true.
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SIGNED AND SWORN to before me this 29th day of July 2016,
by David J. Meyer.
in and for the State
of Washington, residing at Spokane.
Commission Expires: {[-23-Jot7
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 8
Case No. AVU-E-16-DS-
Exhibit "A"
I.P.U.C. No.28
Eighteenth SeveRteeRth Revision Sheet 66
Canceling
Seventeenth Si>EteeRth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT -IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
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 actual and allowed net power supply costs.
MONTHLY RA TE:
The energy charges of electric Schedules 1, 11, 12, 21, 22, 25, 25P, 31, 32, and
41-49 are to be decreased by 0.017 ~¢ 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.
Issued July 29 ~. 201e§. Effective October 1, 2018§
Issued by Avista Utilities
By Kelly 0. Norwood -Vice President, State & Federal Regulation
I.P.U.C. No.28
Eighteenth Revision Sheet 66
Canceling
Seventeenth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT -IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
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 actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21, 22, 25, 25P, 31, 32, and
41-49 are to be decreased by 0.017¢ 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.
Issued July 29, 2016 Effective October 1, 2016
Avista Utilities Issued by
By ~ ;i/_ ::::.;· Norwood -Vice President, State & Federal Regulation