20180823Motion to Revise Schedule.pdf

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David J. Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
Avista Corporation
1411 E. Mission Avenue
P. O.Box3727
Spokane, Washington 99220
Phone: [phone], Fax: [phone]
Idaho State Bar Number: 8317
IN THE MATTER OF THE APPLICATION OF
AVISTA CORPORATION, dba AVISTA
UTILITIES, REQUESTING AUTHORITY
TO REVISE ITS ELECTRIC AND NATURAL
GAS BOOK DEPRECIATION RATES
R[CEIVED
ffi.J;;liG 23 AH g:35
CASE NO. AVU-E-18-03
CASE NO. AVU-G-18-02
AGREED-UPON MOTION
TO REVISE SCHEDULE
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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On February 23,2018, Avista Corporation (herein after "Avista" or the "Company")
filed an Application requesting that the Commission approve changes to the Company's
depreciation rates for electric and natural gas property. The Company included a request for an
effective date of January l, 2019. The Commission subsequently issued a Notice of Application
and set an intervention deadline of April 23, 2018. Order No. 34014. Clearwater Paper, Idaho
Conservation League (ICL), Idaho Forest Group, and the Sierra Club intervened as parties. Order
Nos. 34016,34049.
At the direction of the Commission, the parties conferred, and Staff recommended a
procedural schedule to the Commission. By Order No. 34116, the Commission approved the use
of modified procedure, and adopted a proposed schedule.
By this Motion, Avista is notifying the Commission that it is revising the proposed
effective date for new depreciation rates from January 1,2019 to April 1,2019, and with the
consent of all parties, is proposing to revise the procedural dates previously set forth in Order No.
AGREED UPON MOTION TO REVISE SCHEDULE PAGE I
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341t6.
Given recent developments in the Province of Ontario concerning management at
Hydro One, various Commissions have scheduled further proceedings in the Avista/Hydro One
merger dockets to address the developments: The Washington Utilities and Transportation
Commission (WUTC) has called for additional testimony, culminating in an evidentiary hearing
on October 23,2018, to allow for a decision by December 14,2018 (its statutory deadline); The
Oregon Public Utilities Commission (OPUC) has scheduled similar proceedings, with a target date
for decision of December 14,2018, as well; and in this jurisdiction, the Commission postponed a
previously scheduled July 23,2018, technical hearing and requested a status update on
management changes at Hydro One, which was provided on August 15,2018, along with a motion
for a scheduling conference.
Accordingly, Avista is modifying its request in Washington, Idaho and Oregon (as to
common plant) to revise the proposed date for changes in depreciation rates from January 1,2019
to April 1,2019, and in so doing, synchronizing the effective date for depreciation purposes in all
jurisdictions.
In the State of Washington, for example, an all-party settlement has been reached in
the Avista/Hydro One merger case (Docket No. U-170970) and is still pending before the
Commission, with an Order on or before December 14, 2018. An integral condition of that
settlement calls for accelerated depreciation of Avista's investment in Colstrip Units 3&4 to 2027 ,
from 203 4 and 203 6, respectively.
Because the revised depreciation rates in the Washington depreciation docket will
depend, in part, on the final disposition of the merger settlement, which itself addresses Colstrip
depreciation rates, additional time is needed beyond December 31,2018 for synchronizing the
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AGREED UPON MOTION TO REVISE SCHEDULE PAGE 2
1 effective date for changes in the Company's overall depreciation rates across all jurisdictions -
hence, the Company has revised the proposed effective date of new depreciation rates to April 1,
2019, in all jurisdictions. I
Avista has contacted all parties in this case, and no party objects to the following
changes in the dates set forth in Order No. 34116:
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Original Revised
Settlement Conferences August 29,2018 November 27,2018
September 25,2018 (if necessary)December 11, 2018
October 16,2018 (if necessary)January 22,2019
Comment Deadline November 15,2018 February 15,2019
Reply Deadline November 29,2018 February 28,2019
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l4 WHEREFORE, Avista respectfully requests an Order acknowledging the revision in the
15 proposed effective date for changes in Idaho depreciation rates from January 1,2019 to April 1,
t6 2019, and adopting the proposed changes to the procedural schedule.
t It is critical that the Company maintain uniform utility accounts and depreciation rates for common plant that are
consistent among the Company's regulatory jurisdictions. In the event different depreciation rates or methods were to
be ordered for allocated plant (a category which is primarily composed of production, transmission, intangible, and
general plant assets serving multiple jurisdictions), the result would require multiple sets of depreciation accounts and
records that would need to be adjusted annually for changes in allocation factors, which would impose a costly
administrative burden on the Company and unnecessary expense for the Company's ratepayers, as well as possible
unrecovered or stranded costs.
AGREED UPON MOTION TO REVISE SCHEDULE PAGE 3
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Respectfully submitted this22"d day of August 2018.
AVISTA CORPORATION
Davicl (l',tey",
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
AGREED UPON MOTION TO REVISE SCHEDULE PAGE 4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this 22nd day of August, 2018, served the foregoing
motion to revise schedule in Docket No. AVU-E-18-03 and AVU-G-18-02, upon the
following parties, by mailing a copy thereof, properly addressed with postage prepaid
to:
Diane Hanian, Secretary
ldaho Public Utilities Commission
Statehouse
Boise, lD 83720-5983
diane. hanian@puc. idaho.oov
Brandon Karpen
Deputy Attorneys General
ldaho Public Utilities Commission
472W. Washington
Boise, lD 83702-0659
brandon. karpen@puc. idaho.qov
SIERRA CLUB:
Travis Ritchie
Sierra Club
2101 Webster Street, Suite 1300
Oakland, CA94612
415-977-5727
Travis. ritchie@sierraclu b. oro
Ana. bovd@sierraclub. orq
n via Overnightr via E-Mail
IDAHO CONSERVATION LEAGUE:
Benjamin J. Otto
ldaho Conservation League
710 N.6th St.
Boise, lD 83702
208-345-9633 x 12
botto@idahoconservation or^q
r via Overnightr via E-Mail
CLEARWATER PAPER CORP.:
Peter Richardson
Richardson Adams, PLLC
515 N. 27th St
Boise, lD 83702
208-938-7901
peter@richardsonadams. com
r via OvernightI via E-Mail
CLEARWATER PAPER CORP. :
Dr. Don Reading
6070 Hill Road
Boise, lD 83703
208-342-1700
[e-mail]
r via Overnightr via E-Mail
CLEARWATER PAPER CORP.:
marv. lewa I len@cleanryaterpaper. com
carol. hauqen@clearwaterpaper. com
tr via Overnightr via E-Mail
IDAHO FOREST GROUP:
687 Canfield Ave. Suite 100
Coeur D'Alene, lD 83815
D via OvernightD via E-Mail
IDAHO FOREST GROUP:
Ronald Williams
Williams Bradbury, P.C.
PO Box 388
Boise, lD 83701
208-344-6633
ron@wi I liamsbradburv. com
r via Overniqht
IDAHO FOREST GROUP:
Dean Miller
3620 E Warm Springs Ave
Boise, lD 83716
deanmiller@cableone. net
r via Overnightr via E-Mail
r via E-Mail
IDAHO FOREST GROUP:
Larry Crowley, Director
The Energy Strategies lnstitute, lnc.
5549 S. Cliffsedge Ave.
Boise, lD 83716
[e-mail]
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via
Overnight
E-Mail
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Paul Kimball
Sr. Regulatory Analyst