20160817notice_of_application_order_no_33571.pdf

Office of the Secretary
Service Date
August 17, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR )
AUTHORITY TO AMEND ITS ANNUAL )
POWER COST ADJUSTMENT (PCA) RATES )
)
)
)
)
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CASE NO. AVU-E-16-05
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 33571
On August 1, 2016, A vista Corporation filed its annual Power Cost Adjustment
(PCA) Application. The PCA is an annual adjustment mechanism that tracks changes in the
Company's hydroelectric generation, secondary prices, thermal fuel costs, and changes in power
contract revenue and expenses. A vista's annual cost of providing electricity (i.e., its power
supply costs) vary from year-to-year depending on changes in streamflow, thermal fuel costs, the
market price of power, and changes in power contract revenue and expenses. The annual PCA
rate is combined with the Company's "base rates" to produce a customer's overall energy rate.
This year, the Company asks the Commission to approve a PCA rebate of 0.017¢ per
kWh to be effective October 1, 2016, in place of the .032¢ per kWh approved by Order No.
33389. Under the Company's proposal, the PCA rate for all customers, including residential
customers, would increase by 0.015¢ per kWh, or a 0.2%. Residential customers using an
average of 918 kWh per month would see their monthly bills increase from $84.72 to $84.86.1
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company reports lower power supply
expenses than expected, and a credit due to Idaho customers for the sale of renewable energy
credits (REC) used to meet Washington's Renewable Energy Portfolio Standards. The lower
power supply costs and REC credit is offset by a power purchase agreement the Company has
with Clearwater Paper. The net impact of these three items is a net deferral of $478,103,
including interest, for the period of July 2015 through June 2016. Johnson Direct at 2-3.
1 On May 26, 2016, A vista filed an application seeking an increase in its base rates effective January 1, 2017. See
Case No. AVU-E-16-03.
NOTICE OF APP LI CA TJON
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33571
YOU ARE FURTHER NOTIFIED that last year Avista's PCA application resulted in
a rebate to customers of 0.032¢ per kWh. In this Application, the Company proposes that the
PCA credit or rebate for all customers in tariff Schedule 66 move to a credit of 0.017 ¢ per kWh.
Because the PCA rate adjustments are spread on a uniform cents-per-kilowatt-hour basis the
resulting percentage increase in billed revenues varies by customer groups. The overall increase
in the PCA rate is 0.2%. Application at 6.
YOU ARE FURTHER NOTIFIED that the Company calculates that the average
residential customer using 918 kWh of electricity per month will see a monthly bill increase of
14¢ per month. Small business customers taking service under tariff Schedule 11 and 12 will see
an increase in their PCA rates of 0.15%. Exh. PDE-1.
YOU ARE FURTHER NOTIFIED that the Company proposed that its Application be
processed under Modified Procedure to become effective on October 1, 2016.
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, 2016. 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 A vista at the addresses reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
Kelly 0. Norwood
Vice President, State and Federal Regulations
A vista Utilities
1411 E. Mission A venue
Spokane, WA 99220-3727
E-Mail:
ORDER NO. 33571 2
David J. Meyer, Esq.
Vice President and Chief Counsel
Regulatory and Governmental Affairs
A vista Corporation
1411 E. Mission A venue
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
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 A vista at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments, if
necessary, no later than September 20, 2016.
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 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 Commission's jurisdiction under Title 61 of the Idaho Code and specifically
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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33571 3
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, 2016.
IT IS FURTHER ORDERED that the Company may file reply comments, if
necessary, no later than September 20, 2016.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this / Tri.
day of August 2016.
ATTEST:
n D. Jewel
=sion Secretary
O:AVU-E-16-06_bk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
, PRESIDENT
ERIC ANDERSON, COMMISSIONER
ORDER NO. 33571 4