20170801Application.pdf

Avista Corp.
141 1 East Mission P.O. Box3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 800-727-9170
AWnsrfr
Corp.
VIA OVERNIGHT MAIL
July 31,2017
Diane Hanian, Commission Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise, ID 83702-5983
RE: Case No. AVU-E-l7-$-I
Power Cost Adjustment (PCA) Annual Rate Adjustment Filing of Avista Corporation
Dear Commission Secretary:
Enclosed for filing with the Commission is Avista's2017 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 l, 2016 through June 30, 2017 , and approving a PCA rebate of
0.240(, per kilowatt-hour to be effective October 1,2017. Under the Company's proposal, the
PCA rebate rate for all customers, including residential customers, would increase from a rate of
0.0171, per kilowatt-hour to a rate of 0.240(, per kilowatt-hour, or an increase in the rebate rate of
0.2nA per kilowatt-hour. Since PCA rate adjustments are spread on a uniform cents per
kilowatt-hour basis, the resulting percentage decrease varies by rate schedule. The overall
decrease is 2.7o/o.
For an average residential customer using 910 kilowatt-hours per month, the monthly decrease
will be $2.03. Under present rates, a residential bill for 910 kilowatt-hours amounts to $86.39.
With the proposed rebate in place the monthly bill would be $84.36, or 2.4o/o less 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 74-126 of the
Idaho Code. Avista belieles that the identified CONFIDENTIAL supporting documents contain
valuable commercial information.
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As such, Avista 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,
r7,r '-
oavfd J. Meyer
Vice President and Chief Counsel for Regulatory and Governmental Affairs
Enclosures
Page2 of2
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
ldaho Public Utilities Commission
472W. Washington St.
Boise, lD 83702-5983
Marv Lewallen
Clearwater Paper
28530 W Canyon Creek Rd. - South
Wilsonville, OR 97007
Email: marv@marv. lewallen.com
(Exclud ing Confidentia! I nformation)
Dean J. Miller, Lawyer
3620 E. Wam Springs
Boise, lD 83701
Emai!: deanmiller@cableone. net
(Excluding Confidential lnformation)
Larry A Crowley
The Energy Strategies Institute lnc
5549 S. Cliffsedge Ave
Boise, lD 83716
Email : crowlvla@aol. com
(Excluding Confidential lnformation)
Spokane, Washington this 31st day of July 2017
Patrick Ehrbar
Senior Manager, Rates & Tariffs
CERTIFICATE OF SERVICE
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DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY AND GOVERNMENTAL AFFA]RS
AVISTA CORPORATION
1411 E. MfSSION AVENUE
P. O. BOX 3727
SPOKANE, WASHINGTON 99220
PHONE: [phone]L6, FAX: [phone]
BEFORE THE IDAHO PUBLIC UTIL]TIES COMMISSION
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IN THE MATTER OF THE POWER COST
AD,JUSTMENT (PCA) ANNUAL RATE
AD.JUSTMENT FILING OF AVISTA
CORPORATION
CASE NO. AVU-E- t7 -u
APPLICATION OF AVISTA
CORPORATION
t7 I. INTRODUCTION
l8 In accordance with Idaho Code 551-502 and RP 052, Avista
19 Corporation, doing business as Avista Utilities (hereinafter
20 "Avista" or "Company") , at l-41I East Mission Avenue, Spokane,
2l Washington, respectfully files its Power Cost Adjustment
22 (pCA) annual rate adjustment filing in the above referenced
23 case. The Company reguests the Commission issue an order
24 approving the level- of power costs deferred in t.he rebate
25 direction for the period JuIy 1, 20L5 through ,fune 30, 20L7,
26 and approving a PCA rebate raLe of 0.240C per kilowatt-hour
27 to be effective October L, 20L7. The Company requests that
AVISTA'S PCA ANNUAL RATE AD.fUSTMENT FILING PAGE 1
\i':.,1:.1.rJliiilt
I this filing be processed under the Commission's Modified
2 Procedure Rules.
3 Communications in reference to this Application shoul-d
4 be addressed to:
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David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
Avista CorporatJ-on
P.O. Box 3727
MSC-27
l-411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]L5
Fax: [phone]-
David. Meyer@avistacorp . com
Patrick Ehrbar
Senior Manager - State and Federal Regulat.ion
Avista Utilities
P.O. Box 3727
MSC-27
141"1" E. Missi-on Ave
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]-
Pat . Ehrbar@avistacorp . com
Electronically
Docket s@Avi stacorp . com
3l II. BACKGROUND
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 methodol-ogy and method of recovery were approved in Case No.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 2
I AW-E-07-01 by Order No. 30351 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 fhe Commission also approved a change in the method of
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the PCA deferral rate adjustment from a uniform percentage
effectivebasis, to a uniform cents per kilowatt-hour basis
with the October 1, 2007 PCA rate change. By Order No. 32206
in Case No. GNR-E-10-03 dated March 1-5, 2011,, the Commission
l0 modified t.he retail revenue credit methodology and approved
ll a Load Change Adjustment Rate based on the energy classified
12 portion of embedded production revenue requirement effective
13 April L, 20LL.
14 The Commission approved the following procedural
l5 schedule for administering the annual- PCA filings:
16 August 1 Company filing for prior JuIy ,fune
17 deferral period
18 September 1 Review and comments by Staff and other
19 interested parties
20 October I Commission Order and effective date of
2l PCA rate adjustment
22 The present PCA rebate was made effective on October 1,
23 201,6. On July 29, 20L6, in Case No. AVU-E-16-05, Avista filed
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 3
I its annual PCA rate adjustment for the deferral period JuIy
2 t, 2OL5 through 'June 30, 20L5 and requested a PCA rebate raLe
3 of 0.017+ per kilowatt-hour effective October L, 20L6. The
4 Commission approved that application in Order No. 33605, dated
5 September 28, 201,6.
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III. DEFERRAIJS - 'JULY 1 2OL6 THROUGH iTUNE 30, 2OL77
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The amount of power cost deferrals for the period ,fuly
1-, 20L6 through .fune 30, 20L7 is shown be1ow, as well as
interest for the same period. Company witness Mr. Johnson's
testimony provides an explanation of the factors causing the
deferral entries for the period. Company witness Mr. Ehrbar's
testimony addresses the deferral and int.erest amount. r
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t4 Def errals (.ruty 201-6 - June 2017 )
Renewabfe Energy Credit Retirement Benef
(7,780,332)
3 6 ,4L4)
l5 Interest L7 241
Deferral Bafance at June 30, 2077 $7,233,993)
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17 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 JuIy 2OL6 through
20 ,June 20L7 has been included with this filing and has also
1 The Renewabl-e Energy Credit Retirement Benefits for RECS used t.o
meet Washington RPS are tracked 1002 in the PCA, per prior CommissionOrders. This credit is based on the Idaho allocation of RECs that wereretired to meet Washington RPS (WA I-93?) t.hat would have ot.herwise beensoId. The credit to Idaho customers related to retired RECS was $36,414.
AVISTA'S PCA ANNUAL RATE AD.fUSTMENT FILING PAGE 4
$'ir $
I been provided to Clearwater Paper Corporation and Idaho Forest
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Group
IV. PROPOSED REBATE TO BE EFFECTIVE OCTOBER ]., 2OL7
The Company is proposing a uniform cents per kilowatt-
hour PCA rebate rate of 0.240Q to be effective October L,
20L7. Page 1
the proposed
of Exhibit No. PDE-I shows the calculation of
rebate. Attached as Exhibit r\A"is a copy of
the proposed
the proposed
format. The
9 the proposed tariff, Schedule 66, which contains
l0 PCA rebate rate. Exhibit r\A" also incl-udes
11 changes to Schedule 56 in strike out/underline
12 proposed rebate is designed to rebate the following:
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After applying
commission fees and
result.ing rebate of
the conversion factor related to
uncollectible customer accounts, Lhe
i7,324,L33 is divided by forecasted
Deferrals (,Ju1y 20L6 -
Renewable Energy Credit
Interest
Deferral
June 2017)
Retirement Benefit
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(7 ,]-80,332)
(36 ,4L4)
(77,247)
Balance at ,June 30, 20L7 $(7,233,993)
Unamortized Balance from Previous
(prior to .Tu1y 1, 20]-6)
AmortizationJuly 201,6- June 2017
Interest
Deferral s
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$
(77 0 ,347 )
527 ,818
(4 ,413)
Remaining Amort.ization Ba1ance at June 30, 20L7 $(].46 ,942)
Amortization and Interest ,Ju1y 1 , 20L7
September 30, 2o17 $406 ,049
Rebate Balance as of September 30, 20L7 $(7,274,e86)
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 5
I kilowatt-hours to derive t.he proposed rebate rate of 0.240Q
2 per kilowatt-hour.
3 Since PCA rate changes are spread on a uniform cents per
4 kilowatt-hour basis, the resulting percentage decreases vary
5 by rate schedule. Page I of Mr. Ehrbar's Exhibit No. PDE-1
6 shows the effect of the proposed PCA rebate by rate schedule.
7 fhe overal-I decrease, after accounting for the expiration of
8 the existing rebate, and the new rebate, is $6,801,000, or
9 2.7e..
l0 Resident.ial customers using an average of 910 kilowatt-
ll hours per month would see their monthly bi11s decrease from
12 $85.39 to $84.35, a decrease of $2.03 per month, or 2.42.
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14 V. REQUEST FoR RELIEF
15 The Company requests that the Commission issue an order
16 approving power costs def erred f or t.he period July 1-, 2Ot6
17 through ,.fune 30, 20T7, and approving a PCA rebate of 0.240+
l8 per kilowatt-hour to be effective October 1, 20L7. Under the
19 Company's proposal, the PCA rebate for all customers,
20 including residential customers, would increase from a rebate
2l rate of 0. 0l-7+ per kilowatt-hour to a rebate rate of O .240q.
22 per kilowatt-hour. Since PCA rate adjustments are spread on
23 a uniform cents per kilowatt-hour basis, the result.ing
AVISTA'S PCA ANNUAL RATE ADJUSTMENT F]LING PAGE 6
1 percentage decrease varies by rate schedule. The overall
2 decrease is 2.72. The Company requests that the matter be
3 processed under the Commission's Modified Procedure rules
4 through the use of written comments.
5 Oated at Spokane, Washington thj-s 31st day of July 20L7.
6 AVISTA CORPORATION
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BY
Dav Meyer
Vice President and Chief Counsel for
Regulatory and Governmental Affairs
AVISTA'S PCA ANNUAL RATE AD'JUSTMENT 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
Corporatj-on and makes this veriflcation for and on behalf ofsaid corporation, being thereto duly authorized;
That he has read the foregoing filing, knows the contentsthereof, and believes the same to be true.
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SIGNED AND SWORN to before me this 3l-st day of ,Ju1y 2017 ,by David ,J. Meyer.
AR C in and for the State
of Wa , residing at Spokane.
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32 Commission Expires 7o177
AVISTA'S PCA AI{NUAL RATE AD,JUSTMENT FILING PAGE 8
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Case No. AVU-E-I7-o't
Exhibit c(A))
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retai! 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
4149 are to be decreased by O.2a0$ 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 defened power costs.
SeMce under this schedule is subject to the Rules and Regulations contained
in this taffi.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 31,2017 Efiective Oc'tober 1,2017
l.P.U.C. No.28
Nineteenth Revision Sheet 66
Canceling
Revision Sheet 66
Kelly O. Norwood - Mce President, State & Federal RegulationryJ^,*,J
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho 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 9,0170, 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.
lssued July 29, 2016 Effective October1,2016
l.P.U.C. No.28
Eighteenth Revision Sheet 66
Canceling
Seventeenth Revision Sheet 66
by
By
Avista Utilities
Kelly O. Norwood - Vice President, State & Federal Regulation
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho 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 I , 11 , 12, 21, 22, 25, 25P, 31 , 32, and
41-49 are to be decreased by 0.2400 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.
lssued July 31 ,2017 Effective October1,2017
l.P.U.C. No.28
Nineteenth Revision Sheet 66
Canceling
Eighteenth Revision Sheet 66
by
By
Avista Utilities
Kelly O. Norwood -Vice President, State & Federal Regulation