20180328notice_of_application_order_no_34014.pdf

Office of the Secretary
Service Date
March 28,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA )CASE NOS.AVU-E-18-03
CORPORATION'S APPLICATION TO )AVU-G-18-02
CHANGE ITS ELECTRIC AND NATURAL )
GAS DEPRECIATION RATES )NOTICE OF APPLICATION
)NOTICE OF INTERVENTION
)DEADLINE
)ORDER NO.34014
On February 23,2018,Avista Corporation dba Avista Utilities filed an Application
requestingthat the Commission approve changes to the Company's depreciation rates for electric
and natural gas property.Avista serves customers in Washington,Idaho,and Oregon.The
Company seeks an effective date for the proposed changes to its depreciation rates of January 1,
2019.Avista last changed its Idaho book depreciation rates in January and April 2013.Order No.
32769.
BACKGROUND
The Company hired a contractor,Gannett Fleming,to undertake a depreciation study
of its depreciable electric,gas,and common plant as of December 2016.The objective of this
study was to attain depreciation rates to be utilized by Avista going forward.As a result of this
study,the Company filed this above-captioned matter.According to the Company,the annual
accrual rates proposed in this filing were calculated using "straight-linemethod of depreciation,
using the average service life procedures and the remaining life basis,based on estimates which
reflect considerations of historical evidence and expected future conditions."Application at 3.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Avista is a public utility engaged in the
production,transmission,and distribution of electric power and natural gas to customers in
eastern Washington,northern Idaho,and parts of southern and eastern Oregon.
YOU ARE FURTHER NOTIFIED that Company's Application proposes to increase
the depreciation rate for electric service by approximately $1 million.Id.
YOU ARE FURTHER NOTIFIED that the Company's Application proposes to
decrease the depreciation rate for natural gas by approximately $500,000.Id.at 5.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34014 l
YOU ARE FURTHER NOTIFIED that the Company claims the changes are
necessary to update asset lives and existing depreciation accrual rates from the 2012 levels.Id.
YOU ARE FURTHER NOTIFIED that in addition to electric and natural gas
depreciation rates,the Company provided an updated estimate for the remaining useful life of
Colstrip Units 3 and 4,of which Avista is a 15 percent owner.Id.at 7-8.In sum,the Company
proposes no change to its previous useful life estimates,and proposes to continue to operate the
coal facilities under a 2034,and 2036 end-of-life estimate.Id.
YOU ARE FURTHER NOTIFIED that the Company proposes an additional
component in its Colstrip depreciation:asset retirement obligations,an expense relating to coal
waste.Id.
YOU ARE FURTHER NOTIFIED that approval of the new depreciation rates would
be for accounting purposes only and the Company does not seek a change in customer service
rates at this time.If approved,the new depreciation rates would become effective January 1,
2019,and will be concurrentlyupdated in Washington and Oregon.
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 §§61-501,61-502,61-520,61-523,and 61-610.The Commission may enter any
final Order consistent with its authority under Title 61.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case Nos.
AVU-E-18-03 and AVU-G-18-02 for the purpose of becoming a party must file a Petition to
Intervene with the Commission pursuant to Rules 72 and 73 of the Commission's Rules of
Procedure,IDAPA 31.01.01.072 and .073.Persons desiring to acquire intervenor rights of
participation must file a Petition to Intervene by April 17,2018.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34014 2
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this case shall file a
Petition to Intervene with the Commission by April 17,2018.Once the deadline for intervention
has passed,the Commission Secretary shall prepare and issue a Notice of Parties.
IT IS FURTHER ORDERED that,after the Notice of Parties has issued,Commission
Staff shall confer with the parties regarding a procedural schedule for this matter.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of March 2018.
PkÛL kJ A DER,PRESIDENT
KRIS INE RAPER,CO MISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
I\Legal\LORDERS\AVUE1803AVUGl802 bkl_NtcAppdoc
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34014 3