20190215Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:SEAN COSTELLO
DEPUTY ATTORNEY GENERAL
DATE: FEBRUARY 14,2019
SUBJECT:PROPOSED SETTLEMENT REGARDING AVISTA UTILITIES
REQUEST TO REVISE ITS ELECTRIC AND NATURAL GAS BOOK
DEPRECIATION RATES - CASE NOS. AVU-E-18-03 AND AVU.G.I8-02.
On February 14, 2019, Avista Corporation dba Avista Utilities ("Avista" or
"Company") filed a Stipulation and Settlement ("Stipulation") and a Motion for Approval of
Stipulation and Settlement. The Stipulation is signed by the Company, Commission Staff, and
intervenors Clearwater Paper Corporation ("Clearwater"), Idaho Forest Group, LLC ("ldaho
Forest"), Sierra Club, and the Idaho Conservation League ("Conservation League"). Collectively,
the "Parties," and represent all ofthe parties in the above-referenced cases.
Inbriefsummary,ifapproved,theStipulationwouldresultinthefollowing: (1)Before
reflecting the proposed depreciation rates for the Colstrip generating plant, the change in all other
electric depreciation rate changes results in an annual reduction to electric depreciation expense of
$101,656; (2) After reflecting the revisions to Colstrip Units 3 and 4 to reflect anearher2027
depreciable date for depreciation purposes, results in an annual overall electric increase in
depreciation and amortization expense of $678,434; and (3) Reflecting the proposed depreciation
rates for natural gas operations results in an annual overall decrease in depreciation expense of
approximately $487,780.
The parties now ask the Commission to process the Stipulation by Modified Procedure
with Comments due in time for an approving order to issue by April I , 2019, as Avista is
attempting to synchronize the proposed date of changes in depreciation rates with those occurring
in Washington and Oregon. To meet this deadline, the Parties recommend the Commission set a
March 1,2019, comment deadline.
1DECISION MEMORANDUM
COMMISSION DECISION
Does the Commission wish to issue a Notice of Proposed Settlement and Notice of
Modified Procedure setting a March l, 2019, comment deadline relating to the Stipulation and
Settlement?
/
Sean Costello
Deputy Attorney General
I:V-egaI\ELECTzuC\AW-E-18-03-AVU-C-18-02\tr4emos\AVUEl80l AVUGl802 scdocx
2DECISION MEMORANDUM