20170726notice_of_application_order_no_33820.pdf

Office of the Secretary
Service Date
July 26,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION DBA AVISTA )CASE NOS.AVU-E-17-03
UTILITIES FOR AN ORDER )AVU-G-17-02
AUTHORIZING A CHANGE IN ELECTRIC )
AND NATURAL GAS DEPRECIATION )NOTICE OF APPLICATION
RATES )
)NOTICE OF
)MODIFIED PROCEDURE
)
_______________________________
)ORDER NO.33820
On June 19,2017,Avista Corporation dba Avista Utilities filed an Application
requesting that the Commission approve changes to the Company’s depreciation rates for electric
and natural gas property (software).Avista serves customers in Washington,Idaho and a small
portion of Oregon.While the Company does not seek a specific effective date for the proposed
changes,it has requested that the Commission make a determination on the matter before the end
of August.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Avista implemented its current customer
software information system in February 2015 for both electric and natural gas service.The
system supports several functions including billing,payment processing,collections,and
customer service orders.The Company plans to implement a Meter Data Management (MDM)
system in the second half of 2017.The Company proposes to depreciate the software investment
associated with the MDM system over a 12.5 year time frame to align with the remaining useful
life of its current customer software information system.See Order No.33130.For the MDM
implementation,current estimates indicate that the Idaho share of the MDM system represents
approximately $1.5 million of hardware and approximately $5.9 million of software.
YOU ARE FURTHER NOTIFIED that in this case,the Company estimates that the
remaining useful life of its customer information system is approximately 12.5 years.See Order
No.33130.Because the customer information system and the MDM system are inter-related,the
Company has proposed an 8%depreciation rate’for the MDM system that will correspond to
8%is a rate of 12.5 years.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33820 1
that of the customer information system’s depreciation rate,rather than the standard five years
for both software and hardware.
YOU ARE FURTHER NOTIFIED that the Company requests that the Commission
process its depreciation application under Modified Procedure.
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 August 18,2017.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:
Commission Secretary Kelly 0.Norwood
Idaho Public Utilities Commission Vice President,State and Federal Regulations
P0 Box 83720 Avista Utilities
Boise,ID 83 720-0074 1411 E.Mission Avenue
Spokane,WA 99220-3 727
Street Address for Express Mail:E-Mail:[e-mail]
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 99220-3 727
E-mail:[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 www.puc.idaho.gov.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33820 2
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 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 www.puc.idaho.gov.Click on the
“File Room”tab at the top of the page,scroll down to “Open Electric Cases”or “Open Gas
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 §S 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
August 18,2017.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33820 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July 2017.
PAUL KJEIIANDER,PRESIDENT
444A)Rj1A.
KRtSTINE RAPER,CC5MMISSTONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Ilanian
Commission Secretary
O:AVU-E-17-03 AVU-G-17-02 bk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33820 4