20170816notice_of_application_order_no_33841.pdf

Office of the Secretary
Service Date
August 16,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN TIlE MATTER OF THE POWER COST )CASE NO.AVU-E-17-07
ADJUSTMENT (PCA)ANNUAL RATE )
ADJUSTMENT FILING OF AVISTA )NOTICE OF APPLICATION
CORPORATION )
)NOTICE OF
)MODIFIED PROCEDURE
)
)ORDER NO.33841
__________________________________________________________________________________
)
On August 1,2017.Avista Corporation dba Avista Utilities filed its Power Cost
Adjustment (PCA)annual rate adjustment.The Company requests that the Commission issue an
Order approving the level of power costs deferred for the period July 1,2016 through June 30,
2017.and approve a PCA rebate rate of 0.240 cents per kilowatt-hour to be effective October 1,
201 7.Application at 1.The Commission now issues this Notice of Application and Notice of
Modified Procedure setting comment and reply deadlines.
BACKGROUND
The Company’s PCA is used to track changes in revenue and costs associated with
variations in hydroelectric generation,secondary prices,thermal fuel costs,and changes in power
contract revenues md expenses.The Company’s existing PCA methodology and method of
recovery were approved in Order No.30361 (Case No.AVU-E-07-01).The present PCA
became effective on October 1,2016.See Order No.33605.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company’s power cost deferrals for the
period July 2016 through June 2017,including renewable energy credit retirement benefits and
interest,total ($7,233,993).Application at 4.The deferral amount includes:(1)the amount by
which Idaho’s share of power supply expenses was lower than the authorized level;(2)the credit
to Idaho customers for Renewable Energy Credits (RECs)retired to meet the Washington
Renewable Portfolio Standard that would otherwise have been sold (referred to as renewable
energy credit retirement benefits);and (3)interest.Johnson Direct at 2.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33841
YOU ARE FURTHER NOTIFIED that the factors leading to the lower-than-
authorized power supply costs were better than normal hydro generation,lower wholesale power
prices and other contract changes,lower net transmission expense due to higher than anticipated
third-party transmission revenue,and higher than expected REC sales revenue.Id.at 3.The
lower net expense was partially offset by increased expense from Palouse Wind.Id.Each item
is further described and quantified in the testimony of Company witness William Johnson.See
id.at3-5.
YOU ARE FURTHER NOTIFIED that the Company also describes four long-term
power purchase contracts it entered into between July 2016 and June 2017.Id.at 5-6.Two
contracts are with Mid-Columbia hydro plant owners and two are with qualifying facilities under
the Public Utility Regulatory Policies Act (PURPA).Id.The Company had existing contracts
with each of the four plants.Id.
YOU ARE FURTHER NOTIFIED that the Company also explains the history of the
PCA,the calculation of the proposed rebate rate of .0240 cents per kilowatt-hour,and the
percentage decrease by rate schedule.See Ehrbar Direct and Exhibit PDE-1.The Company
requests an effective date of October 1,2017.Application at 1.
YOU ARE FURTHER NOTIFIED that the Company explains that the current PCA
rebate for all customers is 0.017 cents per kilowatt-hour.Ehrbar Direct at 6.With the increase
in the rebate to 0.240 cents per kilowatt-hour,residential customers using an average of 910
kilowatt hours per month “would see their monthly bills decrease from $86.39 to $84.36,a
decrease of $2.03 per month,or 2.4%.”Id.
YOU ARE FURTHER NOTIFIED that the Company also describes that its bill
paying assistance programs continue to be available to customers.Id.at 7-8.
YOU ARE FURTHER NOTIFIED that the Company’s Application includes an
exhibit,Exhibit A,showing the updated rate schedule for the PCA,Schedule 66,with the
proposed change to the PCA.The Application also includes a draft news release that would
provide customers with details on the PCA filing and other filings.
YOU ARE FURTHER NOTIFIED that the Application and supporting
documentation have been filed with the Commission and are available for public inspection
during regular business hours at the Commission offices.These documents are also available on
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33841 2
the Commission’s web site at vv’puc dah)go.Click on the File Room”tab at the top of
the page,then select ‘Electric Cases”and 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 §61-502 and 61-503.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 3 1.01.01.000 etseq.
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 that it will proceed under
Modified Procedure pursuant to Rules 201 through 204 of the 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 FURTIIER 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 15,2017.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 the Company at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33841 3
Commission Secretary David J.Meyer,Vice President and Chief
Idaho Public Utilities Commission Counsel for Regulatory and Government
P0 Box 83720 Affairs
Boise,ID 83720-0074 Avista Corporation
P.O.Box 3727
Street Address for Express Mail:MSC-27
141 1 E.Mission Ave.
472 W.Washington Street Spokane,WA 99220-3727
Boise,ID 83702-5918 E-mail:
Patrick Ehrbar,Senior Manager —State and
Federal Regulation
Avista Utilities
P.O.Box 3727
MSC-27
1411 E.Mission Ave.
Spokane,WA 99220-3 727
E-mail:
Electronically filed documents:
E-mail:Dotsi)avitcpr,c
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 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 Avista at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,no later than September 20,2017.
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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33841 4
ORDER
IT IS HEREBY ORDERED that the Application of Avista Utilities be processed by
Modified Procedure,Rule 201-204 (IDAPA 31.01.O1.201-.204).Persons interested in
submitting written comments must do so no later September 15,2017.The Company may file a
reply no later than September 20,2017.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this lé
day of August 2017.
ATTEST:
Diane M.Hanian
Commission Secretary
ER’S SlONER
O:AVUE I 7-07cc
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33841
ER,PRESIDENT
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