20170811Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:CAMILLE CHRISTEN
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 10,2017
SUBJECT:THE RESIDENTIAL AND SMALL FARM ANNUAL RATE FILING OF
AVISTA CORPORATION, CASE NO. AVU.E.17-05
On August I, 2017 , Avista Corporation dba Avista Utilities applied to the
Commission for authorization to implement a Residential and Small Farm Energy credit rate, for
rate schedules l, 12, 22,32, and 48, of 0.078 cents per kilowatt-hour. Application at 1. The
Company indicates that this rate represents a decrease of $0.2 million to qualifying customers
and requests an effective date of October 1,2017. Id. at l-2. The Company requests that the
Application be processed under Modified Procedure. Id. at2.
The Company explains that the Residential and Small Farm Energy credit rate results
from an agreement between the Company and the Bonneville Power Administration (BPA)
regarding the Residential Exchange Program. Id. The Residential Exchange Program provides a
share of the benefits of the federal Columbia River power system to the residential and small
farm customers of the six investor-owned utilities of the Pacific Northwest, including Avista. Id.
at2-3.
The current Residential and Small Farm credit rate is 0.060 cents per kilowatt-hour.
Id. at 3. The proposed credit rate of 0.078 cents per kilowatt-hour represents an increase of about
$0.5 million in BPA benefits passed through to Avista's Idaho customers, to approximately
$0.94 million in BPA benefits. Id. (The current credit rate includes both the current BPA benefit
of about $0.4 million and an additional credit adjustment of about $0.3 million to return to
customers an under-refunded balance. Id. at 3-4 and n.l.) Thus, the overall decrease to
1DECISION MEMORANDUM
qualifying customers under the proposed credit rate is $0.2 million, or 0.2%o. Id. at 4. Avista
indicates that the change in credit rate has no effect on its net income. Id.
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due September 20,2017 . Avista has relayed to Staff that a
reply deadline is unnecessary
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with comments due September 20,2017?
Camille Christen
Deputy Afiorney General
M:AVU-E-17-05 cc
2DECISION MEMORANDUM
ln^^iln h,u*.rn-