20180702Application.pdf

Avista Corp.
l4l I East Mission P.O.Box 3727
Spokane, Washington 99220-37 27
Telephone [phone]
Toll Free 800-727-9170
RECEIVED
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June 29, 2018
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise, ID 83702
Re Case No. AVU-E-18-Ok
Electric Fixed Cost Adjustment Annual Rate Filing of Avista Corporation
Dear Ms. Hanian:
Enclosed for filing with the Commission is Avista's electric Fixed Cost Adjustment (FCA) annual
rate adjustment filing. This filing consists of an original and seven copies of Avista's Application,
Exhibit A (the Company's proposed tariffs), Exhibit B (rate calculations), Exhibit C (2017
defenal), and Exhibit D (customer communications) in support of the Application. A computer
readable copy of the Application, exhibits, and workpapers, required under Rule 231.05, are
included on an enclosed compact disc.
Electronic versions of the Company's filing were emailed to the Commission, and the Service List,
on June 29,2018. Those documents have also been provided on the enclosed CD.
Please direct any questions on this matter to me at [phone] or Tara Knox at (509) 495-
4325.
Patrick D. Ehrbar
Director of Regulatory Affairs
Enclosures
Page 1 of I
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this 29th day of June, 2078, served the Application of Avista
Corporation - Fixed Cost Rate Adjustment, upon the following parties, by mailing a copy
thereof, properly addressed with postage prepaid to:
Diane Hanian, Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise, ID 83702
{4p-[an i an @ p qs.idaha.cay
Karl Klein
Brandon Karpen
Deputy Attorneys General
Idaho Public Utilities Commission
472W. Washington
Boise,ID 83702-0659
karl.klein@puc. idaho. gov
Brandon.karpen@puc. idaho. gov
Marv Lewallen
28530 SW Canyon Creek Rd. - South
Wilsonville, OR 97070
[e-mail]
Larry A. Crowley
The Energy Strategies Institute, Inc.
5549 S. Cliffsedge Ave
Boise, ID 83716
crowle),[e-mail]
Wendy Wilson
Clean Energy Program Director
Snake River Alliance
223 N 6th Street, Suite 3 l7
Boise, ID 83702
[e-mail]
Brad M. Purdy
Attorney at Law
20 19 N 1 7th Street
Boise,lD 83702
[e-mail]
Peter J. Richardson
Greg M. Adams
Richardson Adams
515 N. 27th Street
PO Box 7218
Boise, lD 83702
[e-mail]
gre g@richardsonsdams. com
Dean J. Miller, Lawyer
3620 E. Warm Springs
Boise, ID 83716
deanjmi I [e-mail]
Benjamin J. Otto
Idaho Conservation League
710 N. 6th St.
Boise, ID 83702
botto@ idahoconservation. ors
Dr. Don Reading
6070 Hill Road
Boise, ID 83703
dreading@mindspring. corn
Patrick D. Ehrbar
Director of Regulatory Affairs
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DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY AND GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
1.41"1. E. MISSTON AVENUE
P. O. B.OX 3727
SPOI(ANE, WASHINGTON 99220
PHONE: [phone]L6, FAX: [phone]-
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF THE FIXED COST )
AD.JUSTMENT MECHANISM (FCA) )
ANNUAL RATE AD,JUSTMENT FILING )
OF AVISTA CORPORATION )
CASE NO. AVU-E-18-O&
APPLICATION OF AVISTA
CORPORATION
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I. TNTRODUCTTON
In accordance with Idaho Code 551-502, Commission Order
No. 33437, and RP 052, Avista Corporation, doing business as
Avista Utilities (hereinaf ter "Avista" or "Compdtr!" ) , at 141L
East Mission Avenue, Spokane, Washington, respectfully makes
application to the Idaho Public Utilities Commission
("Commission") for an order approving the 1evel of electric
Fj-xed Cost Adjustment Mechanism (FCA) revenue deferred during
calendar year 20L7 and authorj-zing FCA rates for electric
service from October L, 20L8 through September 30, 20L9, and
to approve the Company's corresponding modifj-cations to
Schedule 75, "Fixed Cost Adjustment Mechanism Electric" .
AVISTA'S ELECTRIC FCA A}INUAL RATE AD.fUSTMENT FILING PAGE 1
1 the proposed FCA rate is a rebate of -0.L76C per kilowatt-
hour for the Residential Group (Schedule 1), and a surcharge
of 0.055+ for the Non-Residential Group (Schedules AA, 72,
21, 22, 31, and 32). The Residential Group rebate represents
a $5.4 miIlion, or 4.72, decrease to Schedule 1 customers,
and the Non-Residential group surcharge represents a 52.0
miIlion, ot 2.02 decrease. The Company has requested an
October 1, 2018 effective date.
The Company requests that this filing be processed under
Patrick Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O. Box 3727
MSC-27
1-41-1 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
patrick . ehrbaroavistacorp . com
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l0 the Commission's Modified Procedure Rules (np 20]--204) .
1l Communications in reference to this Application should be
12 addressed to:
David ,f . Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
Avista Corporation
P.O. Box 3727
MSC-27
1411- E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]L6
David . Meyer@avistacorp . com
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AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 2
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II. BACKGROIIND
The purpose of the electric FCA is to adjust the
Company' s Commission-authorized revenues from kilowatt-hour
(*kwh") sa1es, such that the Company's revenues will be
recoginized based on the number of customers served under the
applicable electric service schedules. The FCA allows the
Company to: 1) defer the difference between actual FCA-
related revenue received from customers through volumetric
rates, and the FCA-related revenue approved for recovery in
the Company's last general rate case on a per-customer basis;
and 2) file a tariff to surcharge or rebate, by rate group,
the total deferred amount accumulated in the deferred revenue
accounts f or the prior .fanuary t.hrough December time period.
fn Case Nos. AVU-E-15-05 and AW-G-15-01, Lhe Commission
j-n Order No. 33437 approved for Avista a Fixed Cost Adjustment
Mechanj-sm. On page l-0 of Order No. 33437, the Commission
17 stated:
The parties have also agreed upon a three-yearI FCA pilot
for electric and natural gas operations. The FCA will
compare actual FCA revenues to allowed FCA revenues
determined on a per-customer basis. Any differences will-
be deferred for a rebate or surcharge. There are a number
of customer safeguards, including that an FCA surcharge
cannot exceed a 3% annual rate adjustment. Any
unrecovered balances will be carried forward to recover
in future years. Further, there is no limit to the Ieve1
On June L5,2018, the Idaho Public utilit.ies Commission approved an
Addendum to the Stipulation which extended the term of the pilot for
an addit.ional year by order No. 34085.
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AVTSTA'S ELECTRIC FCA ANNUAL RATE AD.]USTMENT FILING PAGE 3
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of the FCA rebate. As part of the Stipulation, Staff and
other j-nterested parties, will review the efficacy of
the FCA after its second fuII year to ensure it is
functioning as intended. Fixed cost adjustment
mechanisms are intended to encourage conservatj-on, and
aIlow customers more control over their bi11s. Further,
the proposed FCA will remove any financial disincentive
of the Company to encourage energy conservation.
10 The Section 13 of the Stipulation and Settlement, as
1l amended by Addendum to the Stipulation approved by the
12 Commiss j-on in Order No. 34085 on 'June 15, 201,8, provided
l3 further details, reproduced be1ow, regarding the mechanics of
14 the fixed cost adjustment. mechanism. The proposed Tariff
15 Sheet 75 reflects the change in the term of the mechanism
16 from three years to four in accordance with the Addendum.
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A. FCA Mechanisms Term. The Parties agree to an initial
FCA term of 4 years, with a review of how the mechanisms
have functioned conducted by Avista, Staff, and other
interested parties following t.he end of the third fu11-year. Avista may seek to extend the term of the
mechanism prior to it.s expiration.
B. Rate Groups.
established for both
FCA:
There will be two rate groups
the electric FCA and natural gas
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C. Existing Customers and New Customers. The Partj-es
have agreed that revenue related to certain ltems
discussed below would not be included in the FCA for new
customers. The result is that the Fixed Cost Adjustment
Revenue-Per-Customer for new customers will be less than
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FfLING PAGE 4
Electric Customer Rate Groups:1. Residential Schedule 1
2 . Commercial Schedul-es 11,Natural Gas Rate Groups:
1. Residential Schedule 101-
2. Commercial Schedules 111-
12, 2]-,
and 112
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the Fixed Cost Adjustment Revenue-Per-Customer for
existing customers. For new electric customers added
after the test. period, recovery of incremental revenue
related to fixed production and transmisslon costs would
be excluded from the electric FCA. For new natural gas
customers added after the test period, recovery of
incremental revenue related to fixed production and
underground storage facility costs would be excluded.
These modifications are included in Appendices B and C
to the Stipulatj-on.
D. Quarterly Reporting. Avista will file, within 45
days of the end of each guarter, a report detailing the
FCA activity by month. The reporting will also include
information related to the deferrals by rate group, what
the deferrals would have been if tracked by rate
schedule, use and revenue-per-customer for existing and
new customers, and other summary financial information.
Avista will provide such other information as may be
reasonably requested, from time to time, in the future
quarterly reports.
E. Annual Filings. On or before ,fu1y L, the Companywill file a proposed rate adjustment surcharge or rebate
based on the amount of deferred revenue recorded for the
prior .fanuary through December time period. The rate
adjustment would be calculated separately for each Rate
Group, with the applicable surcharge or rebate recovered
from each group on a uniform cents per kWh or per therm
basis. The proposed tariff (Schedule 75 for electric,
Schedule L75 for natural gas) j-ncl-uded with that filing
would include a rate adjustment that recovers/rebates
the appropriate deferred revenue amount over a twefve-
month period effective on October 1 for electric (to
match with Power Cost Adjustment and Residential
Exchange annual rate adjustments time period) and
November 1st for natural gas (to match with the annual
Purchased Gas Cost Adjustment rate adjustment tj-meperiod). The deferred revenue amount approved for
recovery or rebate would be transferred to a balancing
account and the revenue surcharged or rebated during theperiod would reduce the deferred revenue j-n thebalancing account. After determining the amount of
deferred revenue that can be recovered through a
surcharge (or refunded through a rebate) by Rate Group,
the proposed rates under Schedules 75 and 1,75 would be
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 5
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determined by dividing the deferred revenue Lo be
recovered by Rate Group by the estimated kwh sales(Electric FCA) or therm sales (Natural Gas FCA) for each
Rate Group durJ-ng the twelve-month recovery period. Any
deferred revenue remaining in the balancing account at
the end of the amortizatj-on period would be added to the
new revenue deferrals to determine the amount of the
proposed surcharge/rebate for the following year.
F. Interest. Interest will be accrued on the
unamortized balance in the FCA balancing accounts at the
Customer Deposit Rate.
G. Accounting. Avista wiIl record the deferral in
account 185 - Miscellaneous Deferred Debits. The amount
approved for recovery or rebate would then be
transferred into a Regulatory Asset or Regulatory
Liability account for amortization. On the income
statement, the Company would record both the deferred
revenue and the amortization of the deferred revenue
through Account 455 (Other Electrj-c Revenue), or Account
495 (Other Gas Revenue), in separate sub-accounts. The
Company would file quarterly reports with the Commission
showlng pertinent information regarding the status of
the current deferral. This report would j-nclude a
spreadsheet showing the monthly revenue deferral
calculatj-on for each month of the deferral period
(January - December), as well as the current and
historical monthly balance in the deferral account.
H. 3? Rate fncrease Cap. An FCA surchargie, by rate
group, cannot exceed a 3Z annual rate adjustment, and
any unrecovered balances will be carrj-ed forward to
future years for recovery. There j-s no limit to the Ieve1
of the FCA rebate.
As det.ailed above, the Commission approved the following
procedural schedule for administering the annual electrlc FCA
filings:
Jul 1 - Company filing for prior January December
deferral period
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AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 6
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October 1 - Commission Order and effective date of
electric FCA rate adjustment.
III. DRIVERS OF ELECTRIC FCA DEFERRAIJS
The FCA rebate deferrals in 201,7 were the result of
higher monthly use-per-customer than the use-per-customer
that was embedded in the 20]-5 test year (i.e., the FCA base) .
Residential average monthly use-per-customer was higher by 29
kWhs, and non-residential average monthly use-per-customer
was lower by 36 kWhs in 201,7. The Company has identlfied
several primary drivers for the change in use-per-customer.
First, weather was abnormally cold during ,January and
February, and hot during the summer of 2017, giving rise to
a weather normalization adjustment2 that required the
deductj-on of 49 million kWhs to residential usage (:A kWhs
per customer) and 1,9 million kWhs (U kWhs per customer) to
non-residential usage. The estimated FCA revenue excess
assocj-ated wlth weather was approximately $3.2 million
residential and $1.1 million non-residential.
Since the 2OL5 test year used to set 201,7 rates, Idaho
customers have achieved energy efficiency savings from
participatj-on in the Company's Demand Side Management
The 2017 weather normalization adjustment was filed in Washington for
Commission Basis reporting utilizing the same methodology as fPUC CaseNo. AVU-E-15-03 in developing the FCA base.
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FTLING PAGE 7
1 programs. Estimated cumulative savings since the test year
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(derived from the Idaho 20L5,3 20L6, and 20L7 DSM Annual
Reports) reduced residential usage in 201,7 approxlmately 28
million kWhs and non-residential usage approximately 45
million kWhs. The estimated FCA revenue shortfall associated
with energy ef f j-clency programmat j-c savings is $1.8 million
residential and $2.5 million non-residential.
The "other" drivers are rel-ated to items not easily
quantifiable, such as the effects of non-programmatJ-c energy
efficiency, changes in business cycles, etc. The following
table summarizes the impact of these drivers on the FCA
Revenues received from customers in 2017.
For the energy efficiency savings in 2015, the Company assumed that
one-hal-f of t,hose savings were ref lected j-n the test year billing
determinanEs. The reduction in usage aEtributed to energy efficiency
savings in this filing include the other hal-f of 201-5 energy efficiency
savingTs.
Use-per-
Customer Revenue
Residential
FCA
Non-Residential Group
Use-per- FCA
Customer Revenue
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Total 29
(22)
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Efficiency
Weather $3,2
($ t.s1
$1.4
$2.8
67 $l.r
( 158) ($2.s)
55 $0.8
AVISTA'S ELECTRIC FCA AIINUAL RATE AD,JUSTMENT FILING PAGE 8
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IV. RESIDENTIAI, GROUP RJA,TE DETERMINATION
The Company recorded 12,8A5,255 in the rebate direction
in deferred revenue for the electric residential customer
group in 201-7. Last year's surcharge rate was subject to the
3? surcharge limitation with an expect.ed surcharge carry over
of approximately $81-5,000. The actual carry over is expected
to be slightly less than last year's estimate. The proposed
rate of -O.l'75 cents per kWh 1s designed to rebate $2,071,515
to the Company's residential electric customers served under
rate Schedule 1. The following table summarizes the
components of the Company's request for rebate:
20L7 Deferred Revenue ( $2 , 9 L6 ,256)
Add: 20L5 Carry Over Balance $788,461
Add: fnterest through 9/30/201,9 ( $31, 328 )
Add: Revenue Related Expense Adj.($L2 ,392)
Total For Rebate ($2 ,071,,51,5)
Customer rebate ($2 ,071,, 515 )
Carryover Deferred Revenue $o
Exhibit B, page 1 shows the derj-vation of the proposed
rebate rate to refund revenue of $2,O71,515 based on projected
sales volumes for Schedul-e 1 customers during the
rebate/amortizatlon period (October 201-8 through September
2OL9) . As identified on t,ariff Sheet 75c_ under Step 7 of
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18 "Calculation of Monthly FCA Deferral", j-nterest on the
19 deferred balance accrues at the Customer Deposit Interest
AVISTA'S ELECTRIC FCA ANNUAL RATE AD.JUSTMENT FILING PAGE 9
I Rate.+ If Ehe proposed rebate is approved by the Commission,
2 the 20]-7 deferral balance, plus interest through September,
3 and the outstanding carry over balance approved for recovery
4 in the prior year FCA rate filing (Case No. AVU-E-17-04 Order
5 xo. 33999), will be transferred into a regulatory liability
6 balancing account. The balance in the liability account will
7 be reduced each month by the rebate received by customers
8 under the tariff.
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10 V. NON-RESIDEMIIAL GROUP RjLTE DETERMINATION
11 The Company recorded $61-0,929 in the surcharge direction
12 in deferred revenue for the electric Non-Residential Group in
13 20L7. The proposed surcharge rate of 0.055 cents per kWh is
14 designed to recover $503,659 from commercial and industrial
15 customers served under rate Schedules !A, 12, 21, 22, 31, and
16 32. The following table summarj-zes the components of the
17 Company's request for recovery:
20L7 Deferred Revenue $51_0 ,929
Add: 201-6 Carry Over Bal-ance ($15,748)
Add: Int.erest through 9 /30 / 20l-9 #7 ,523
Add: Revenue Related Expense Adj.$85s
Tot.a1 For Recovery $503 ,669
Customer Surcharge Revenue $503,669
Carryover Deferred Revenue $o
The Customer Deposit Interest Rate was l-.00? throughout 201,7 and
remains 1.00? for 20L8. The current raEe of 1.00? has been used going
forward as an estimate for purposes of this rat,e determination.
AVISTA'S ELECTRIC FCA ANNUAL RATE AD.fUSTMENT FILING PAGE 10
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1 Exhibit B, page 3 shows the derivation of the proposed
2 surcharge rate to recover revenue of $603,569, based on
3 projected sales volumes for Schedules 11, 12, 2A,22,31, and
4 32 during the surcharge/amortization period (OcLober 2018
5 through September 20L9). As identified on tariff Sheet 75B
6 under Step 7 of "Calculation of Monthly FCA Deferra1",
7 interest on the deferred balance accrues at the Customer
8 neposit fnterest Rate.s If the proposed surcharge is approved
9 by the Commission, the 20L7 deferral balance, plus interest
l0 through September, will be transferred into the regulatory
11 asset balancing account with any outstanding balancefrom the
12 surcharge approved for recovery in Case No. AVU-E-L7-04. The
13 balance in the account will be reduced each month by the
14 revenue collected under the tariff.
15 Support showing the mont,hly calculation of the 20L7
16 deferral balances for both the Residenti-a1 and Non-
17 Residential Groups j-s provided as Exhibit C. These
l8 calculations were also provided to the Commission in
19 guarterly reports.
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AVTSTA'S ELECTR]C FCA ANNUAL RATE ADJUSTMENT FIL]NG PAGE 11
I VI. 3T A}INUAL RATE TNCREASE TEST
2 FCA rate adjustment surcharges are subject to a 3? annual
3 rate increase limitation. There is no limit to rebate rate
4 adjustments. As described in tariff Schedule 75, the 3eo
5 annual rate increase limj-tation wil-I be determined by
6 dividing the incremental annual revenue to be collected
7 (proposed surcharg'e revenue less present surcharge revenue)
8 under this Schedule by the total "normalized" revenue for the
9 two Rate Groups for the most recent .Tanuary through December
10 time period. Normal-ized revenue j-s determined by multiplying
11 the weather-corrected usage for the period by the present
12 rates in effect. If the incremental amount of the proposed
13 surcharge exceeds 32, only a 3? incremental rate increase
14 will be proposed and any remaining deferred balance will be
15 carried over to the following year.
16 Exhibit B, page 6 shows the 3Z test for the two rate
17 groups. As the 201,7 Residential deferral is a rebate, there
18 is no limitation. The incremental change from the exj-stj-ng
19 surcharge to the proposed rebate is a reduction of $5.4
20 million or approxj-mately -4.7%. While the 20L1 Non-
2l Residential deferral is a surcharge, it is substantially
22 smaller than the existing surcharge resulting in an
23 incremental reduction of $2.0 million or approximately -2.02.
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 1,2
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1 es the Residential deferral is in the rebate direction and
2 the Non-Residential deferral is under 3Z for 2017, there is
3 no proposed carry over for either rate c1ass.
VII. EXISTING CUSTOMERS AND NEW CUSTOMERS
The Settlement StipulatJ-on approved by the Commission
requires that electric customers that have been added since
the test year are subject to a FCA Revenue-Per-Customer that
excludes incremental revenue related to fixed production and
transmission costs. Separate calculations for new versus
existing customers are clearly identified in the FCA base
that was approved in Order No. 33682 for rates effectj-ve
.Tanuary L, 2Ol7 (included in this filing as Attachment B,
pages 3 through 5).
Due to this segregation, Avista tracks the usage of new
customers since January 1-, 20L6 as compared with existing
customers.6 In general, the average usage of new customers
is lower compared to the average usage of existing customers.
Avista has found that new customer meters, orr average, have
less usage in the f irst s j-x to 1,2 months af ter meter
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"Existing customers" were part of Ehe test year used to set t,he January1, 2017 raEes (2015 calendar year) . "New customers" consist of all-
new hookups after the test year. The proposed Tariff Sheet 75 replaces
the date specific language to state "after the FCA Base test year" asthe FCA Base is updated with changes to Base rates and the associated
tesE year.
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AVISTA'S ELECTRIC FCA ANNUAL RATE AD.JUSTMENT FILING PAGE 13
j-nstallation, then generally see increases in their usage
until their usage is more in line with the average usage of
existing customers after 12 months of service. This is due,
j-n part, to the 1ag that occurs between when a meter is
installed and billing commences, and when a customer moves
into the premises. Avista will continue to track the usage
of new customers over the Fixed Cost Adjustment. term.
vrrr. pRoposED RiarEs ro BE EFFECTTVE ocToBER 1, 2018
10 The Company is proposj-ng a per kilowatt-hour FCA rebate
11 rate of -0.L76+ for the Residential Group, and a per kilowatt-
12 hour FCA surcharge rate of 0.055+ for the Non-Residential
13 Group, both to become effective October 7-, 2018. Bxhibit B
14 to this Application provides the Residential and Non-
l5 Residential Rate Calculation, and Exhibit C provides the
16 support for the deferrals for the .fanuary 7-, 20L7 through
17 December 31, 20L7 deferral period. Attached as Exhibit A is
l8 a copy of the proposed tariff, Schedule 75, which contains
19 the proposed FCA rates and tariff revisions discussed earlier
20 in this Application. Exhibit A also includes the proposed
2l changes to Schedule 75 in strike/underline format.
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AVISTA'S ELECTRTC FCA ANNUAL RATE AD.]USTMENT FILING PAGE 1,4
1 Residential customers using an average of 91-0 kilowatt-
2 hours per month would see their monthly bills decrease from
3 $88.49 to $84.33, a decrease of $4.15 per month, or 4.72.
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5 IX. COMMI'NICATIONS A}{D SERVICE OF APPIJICATION
6 In conformance with RP L25, this Application will be
7 brought to the attention of the Company's customers. First,
8 the Company has served a copy of this Applicati-on upon the
9 servj-ce l-ist in Case Nos. AVU-E-15-05 and AVU-G-15-01-, the
10 cases t.hat gave rise to the FCA mechanj-sms. Second, a copy
11 of Company's news release and customer notice J-s provided as
12 Attachment D. The news release wil-I be issued on 'Ju1y 2 ,
13 201-8, and the customer notice will be j-nserted in customer
14 biIls starting on or about July 9, 20L8, and will run for a
15 fuII billing cyc1e.
t6
17 X. REQUEST FOR REIJIEF
18 The Company requests that the Commission issue an order
19 approvj-ng FCA deferrals for the period ,fanuary 1 , 201-7 through
20 December 31, 2017, and approve a per kilowatt-hour FCA rebate
2l rate of -0.1-76Q for the Residential Group, and a per kil-owatt-
22 hour FCA surcharge rate of 0.055+ for the Non-Residential
23 Group, both to become effective October l-, 207-8. The Company
AVISTA'S ELECTRIC FCA ANNUAL RATE AD,JUSTMENT FILfNG PAGE 15
I also requests that the Commission approve the proposed tariff
2 modifications to tariff Sheet 75. The Residential Group
3 rebate represents a $5.4 million, oy 4.72, decrease to
4 Schedule 1 customers, and the Non-Residential group surcharge
5 results in a $2.0 milIion, oE 2.02, decrease. The Company
6 reguests that the matter be processed under the Commission's
7 Modified Procedure rules through the use of written comments.
8 Dated at Spokane, Washington this 29Lh day of June 20L8.
TION9
10
11
T2
l3
BY
Patrick D. Ehrbar
Director of Regulatory Affairs
AVf STA'S ELECTRIC FCA ANNUAL RATE AD.JUSTMENT FILING PAGE ].5
I
2
3
4
5
6
7
8
9
10
11
t2
13
t4
t5
t6
t7
l8
19
20
2l
22
23
24
25
26
27
28
29
30
31
32
VERIFICATION
STATE OF WASHINGTON
County of Spokane
Patrick D. Ehrbar, being first duly sworn on oath,
deposes and says: That he is the Director of Regulatory
Affairs for Avista Corporat,ion and makes this verificati-on
for and on behalf of said corporation, being thereto duly
authorized,'
That he has read the fo filing, knows the contents
thereof , and bel-1eves the
SIGNED AI\TD SWORN to before me this 29iu}: day of June 201-8,
by Patrick D. Ehrbar.
\I
NOTAR IC
ofW ton,
in and for the State
residing at Spokane.
t Commission Expi-res:Lb
I 2 3
+a<-
Pusuto
AVISTA'S ELECTRIC FCA AI{NUAL RATE ADJUSTMENT FfLING PAGE 1,7
)
)
)
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
AVISTA UTILITIES
CASE NO. AVU-E-l8.
EXHIBIT A
Tariff Sheets - Proposed, Strikethrough and Underline
Electric Service
June 29, 2018
l.P.U.C. No.28
Second Revision Sheet 75
Canceling
First Revision Sheet 75
Patrick Ehrbar, Director of Regulatory Affairs
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 75
FIXED COST ADJUSTMENT MECHANISM - ELECTRIC
PURPOSE:
This Schedule establishes balancing accounts and implements an annual Fixed
Cost Adjustment ('FCA") rate mechanism that separates the recovery of the
Company's Commission authorized revenues from kilowatt-hour sales to
customers served under the applicable electric service schedules.
TERM
The term of the FCA mechanism is four years, effective January 1,2016 through
December 31,2019.
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This schedule shall be applicable to all retail customers taking service
under Schedules 1, 11, 12,21,22, 31, and 32. This Schedule does not apply to
Extra Large General Service Schedule 25, Extra Large General Service to
Cleanruater Paper Schedule 25P, or to Street and Area Light Schedules 41 through
49.
Applicable Customers will be segregated into two (2) distinct Rate Groups:
Group 1-Schedule 1
Group 2 - Schedules 1 1, 12,21,22,31, 32
Nofe - the recovery of incremental revenue related to fixed production and
fransmission cosfs will be excluded for new naturalgas cusfomers added after the
FCA Base test year.
MONTHLY RATE:
Group 1 - ($0.00176) per kWh
Group 2 - $0.00056 per kWh
lssued June 29, 2018 Effective October 1, 2018
By
by Avista
V%*to-
l.P.U.C. No.28
First Revision Sheet 75
Canceling
inal Sheet 75
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 75
FIXED COST ADJUSTMENT MECHANISM _ ELECTRIC
PURPOSE:
This Schedule establishes balancing accounts and implements an annual Fixed
Cost Adjustment ('FCA") rate mechanism that separates the recovery of the
Company's Commission authorized revenues from kilowatt-hour sales to
customers served under the applicable electric service schedules.
TERM
The term of the FCA mechanism is three years, effective January 1, 2016 through
December 31,2018.
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This schedule shall be applicable to all retail customers taking service
under Schedules 1, 11, 12, 21, 22, 31, and 32. This Schedule does not apply to
Extra Large General Service Schedule 25, Extra Large General Service to
Clearwater Paper Schedule 25P, or to Street and Area Light Schedules 41 through
49.
Applicable Customers will be segregated into two (2) distinct Rate Groups:
Group 1-Schedule 1
Group 2 - Schedules 1 1, 12, 21,22, 31, 32
Note - the recovery of incremental revenue related to fixed production and
fransmission cosfs will be excluded for new natural gas cusfomers added after
lnnrtant I CME
MONTHLY RATE:
Group 1 - $e€O28+ per kWh
Group 2 - $gegZ++ per kWh
lssued June 30, 2017 Effective October 1, 2017
By Kelly Norutood, Vice President, State & Federal Regulation
l.P.U.C. No.28
Second Revision Sheet 75
Canceling
First Revision Sheet 75
n
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 75
FIXED COST ADJUSTMENT MECHANISM - ELECTRIC
PURPOSE:
This Schedule establishes balancing accounts and implements an annual Fixed
Cost Adjustment ("FCA") rate mechanism that separates the recovery of the
Company's Commission authorized revenues from kilowatt-hour sales to
customers served under the applicable electric service schedules.
TERM
The term of the FCA mechanism is four years, effective January 1,2016 through
December 31,2019.
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This schedule shall be applicable to all retail customers taking service
under Schedules 1 , 11, 12, 21, 22, 31, and 32. This Schedule does not apply to
Extra Large General Service Schedule 25, Extra Large General Service to
Cleanruater Paper Schedule 25P, or to Street and Area Light Schedules 41 through
49.
Applicable Customers will be segregated into two (2) distinct Rate Groups:
Group 1-Schedule 1
Group 2 - Schedules 1 1, 12,21,22, 31, 32
Nofe - the recovery of incremental revenue related to fixed production and
fransmr'ssrbn cosfs will be excluded for new naturalgas cusfomers added after the
FCA Base test year.
MONTHLY RATE:
Group 1 - ($0.00176) per kWh
Group 2 - $0.00056 per kWh
lssued June 29, 2018 Etfective October 1,2018
By Patrick Ehrbar, Director of Regulatory Affairs
BEFORE TI{E,
IDAHO PUBLIC UTILITIES COMMISSION
AVISTA UTILITIES
CASE NO. AVU-E-l8.
EXHIBIT B
FCA Rate Calculation
October 1,2018 - September 30, 2019
Electric Service
June 29,2018
Avista utilities
Calculation of Fixed Cost Adjustment (FCA) Surcharge or Rebate Amortization Rates
Effective October 1, 2018 - September 30, 2019
Line
No.
1
2
3
4
5
6
7
8
9
10
TL
L2
13
L4
15 Annual Total
16 lncremental Rate to Recover Estimated lnterest
t7 Estimated Rate to Recover Deferral Balance
18 Rate before Gross-up for Revenue-related items
19 Times: Gross-up for Revenue-related items (3)
20 Preliminary Proposed FCA Rate
2L 3% Test Rate Adjustment (4)
22 Final Proposed FCA Rate
23 Adjusted for Revenue Related Expenses
24 Estimated Carryover Balance due to 3% test (5)
Forecast Usage
85,604,642
L17,32t,987
139,876,097
13L,357,400
107,764,385
106,629,564
87,827,797
79,829,4s3
76,058,257
93,0Lt,323
84,459,363
73,256,8O7
(s9,519) 1,L76,997,075
(s0.00001)
(So.oorz+;
(So.oorzsl
L.006770
(s0.00176)
So.ooooo
(SO.OOrzel Rebate Rate
(S0.00175) Amortization Rate
so
Date
!daho Residential Electric
Unamortized
Balance (1) lnterest (2)
-0.00774 L.00%
(s2,048,988)(s1,901,607) (s1,645)($1,709,315) (s1,504)(s1,467,133) (s1,323)(s1,239,s86) (st,L27l(s1,0s2,938) (sgss)(s868,111) ($aOO1(s71s,87s) (s0OO1
$s77,44!l (ss:s1(s44s,461) (s426)(s283,84s) (sSO+1(s136,e88) (srzs1(S9,srs1 (561)
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Notes
(1) Deferral balance at the end of the month, Rate of -SO.OO174 to rebate the September 2018
balance of -52,048,988 over 12 months. See page 2 and 5 of Exhibit B for September 2018
balance calculation.
(2) lnterest computed on average balance between beginning and end of month at the present
IPUC Consumer Deposit rate. The IPUC Consumer Deposit rate is updated annually.
http://www. puc.idaho.eov/electric/33936.pdf
(3) nvU-r-r6-03 conversion factor, see page 6 of Exhibit B.
(a) See page 6 of Exhibit Bfor 3%test adjustment calculations.
(5) See page 2 of Exhibit B for estimated carryover balance calculations.
EXHIBIT B Page 1 of 8
Line
No.
1
2
3
4
5
6
7
8
9
10
L7
72
13
L4
15
16
L7
18
19
20
2L
22
23
24
Avista utilities
Calculation of Fixed Cost Adjustment (FCA) Surcharge or Rebate Amortization Rates
Effective October L,20L8 - September 30, 2019
ldaho Residential Electric
Calculate Estimated Monthly Balances through September 2018
Consumer Deposit
Ending Balance lnterest Rate Amortization
L.00%
Dec-17 (52,816,256)
Jan-18 (52,318,503) (52,3471
Feb-18 (52,820,952], (52,349)
Mar-18 (52,323,303) (52,351)
Apr-18 (52,825,655) (52,353)
May-18 (52,828,010) (52,355)
Jun-18 (52,830,367) (52,357)
Jul-18 (52,832,72s1 (S2,3s9)
Aug-18 (S2,83s,086) (52,361)
Sep-18 (52,837,4481 (52,363)
prior year carryover S 788,451
oct-18 (51,901,639) (52,302) (S149,5s1)
Nov-18 (s1,70S,s33) (s1,s04) (s194,609)
Dec-18 (s1,46s,328) lst,322l (s244,s271
Jari-19 (51,236,819) (51,125) (5229,635)
Feb-19 (s1,049,381) (sSSZl (s188,390)
Mar-19 15863,7721 (5797) (5186,406)
Apr-19 (s710,890) (s0S01 (s1s3,s38)
May-19 (Ss71,869) (Ss34) (Sr:s,sss1
Jun-19 (5439,328) (5421) (5132,952)
Jul-le 15277,0271 (Szssl (S162,s99)
Aug-le (s129,s48) (s169) (sl47,64el
Sep-19 ($1,s37) (Sss) (S128,06s)
Total (s31,328) (s2,057,586)
Summary
25 2017 Deferred Revenue
26 Add Prior Year Carryover Balance
27 Add lnterestthrough 09/30/2079
28 Add Revenue Related Expense Adj
29 Total Requested Recovery
30 Customer Rebate Revenue
31 Carryover Deferred Revenue
(s2,8t6,2561
788,467
(Sar,aza1
(s12,3e2)
(s2,071,s15)
(s2,071,515)
So
EXHIBIT B Page 2 of 8
Avista utilities
Calculation of Fixed Cost Adjustment (FCA) Surcharge or Rebate Amortization Rates
Effective October L,2018 - September 30, 2019
Line
No.
1
2
3
4
5
6
7
8
9
10
11
t2
13
L4
Date
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
16 lncremental Rate to Recover Estimated lnterest
t7 Estimated Rate to Recover Deferral Balance
18 Rate before Gross-up for Revenue-related items
19 Times: Gross-up for Revenue-related items (3)
20 Preliminary Proposed FCA Rate
2L 3% Test Rate Adjustment (4)
22 Final Proposed FCA Rate
23 Adjusted for Revenue Related Expenses
24 Estimated Carryover Balance due to 3% test (5)
Forecast Usage
85,303,906
89,0LL,644
L00,891,824
97,3L2,859
84,809,744
89,755,435
8L,743,03L
83,239,876
83,783,831
L02,394,tL4
96,049,684
83,686,214
s3,012 1,077,981,L63
s0.00000
s0.000s6
s0.000s6
L.006770
s0.000s6
So.ooooo
S0.00056 SurchargeRate
S0.00055 Amortization Rate
So
ldaho Non-Residential Electric
Unamortized
Balance (1) lnterest (2)
0.00056 1.00%
5599,779$sszJga S48os503,711 s44o5447,972 SSg0s394,t79 s3s1s347,300 sSOgs297,630 s269s252,378 s229s206,2s6 s191sL59,792 s1525102,930 Sross49,552 s64s3,012 s22
15 Annual Total
Notes
(1) Deferral balance at the end of the month, Rate of 50.00056 to recover the September 2018
balance of $599,779 over 12 months. See page 4 and 5 of Exhibit B for September 2018
balance calculation.
(2) lnterest computed on average balance between beginning and end of month at the present
IPUC Consumer Deposit rate. The IPUC Consumer Deposit rate is updated annually.
http://www.puc.idaho.qov/electric/33936. pdf
(3) AVU-E-16-03 conversion factor, see page 6 of Exhibit B.
(4) See page 5 of Exhibit B for 3%test adjustment calculations.
(5) See page 4 of Exhibit B for estimated carryover balance calculations.
EXHIBIT B Page 3 of 8
Line
No.
Avista Utilities
Calculation of Fixed Cost Adjustment (FCA) Surcharge or Rebate Amortization Rates
Effective October L, 2OLB - September 30, 2019
ldaho Non-Residential Electric
Calculate Estimated Monthly Balances through September 2018
Consumer Deposit
Ending Balance lnterest Rate Amortization
L.00%
S610,929
s611,438
S611,948
s612,4s8
S612,968
55L3,479
s613,990
s614,502
s615,014
$515,525
(L5,7481
S552,823
ss03,7s1
s448,028
s394,250
s347,385
5297,729
$252,490
s206,380
s159,929
s103,084
S49,7zt
s3,194
Total s7,623 Ss99,610
s
L
2
3
4
5
6
7
8
9
10
tt
L2
13
t4
15
16
L7
18
19
20
2t
22
23
24
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
prior year carryover
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Ssos
ss10
ss10
Ssro
ss11
$su
Ssrz
Ssrz
ss13
S+gs
S44o
Ssgo
s3s1
Ssog
Szeg
$229
s191
s1s3
s110
Soa
522
$47,449
s49,s11
s55,120
554,129
547,L74
s4s,e2s
s4s,468
s45,300
s46,503
Sso,gss
s53,426
s46,549
Summary
25 2OL7 Deferred Revenue
26 Add Prior Year Carryover Balance
27 Add lnterest through 09/30/20L9
28 Add Revenue Related Expense Adj.
29 Total Requested Recovery
30 CustomerSurcharge Revenue
31 Carryover Deferred Revenue
s510,929
lLs,748)
$7,623
Saos
s603,669
s603,669
So
EXHIBIT B Page 4 of 8
Avista Utilities
Fixed Cost Adjustment (FCA) Prior Surcharge or Rebate Amortization
Effective October 'J.,2077 - September 30, 2018
Residential Electric Surcha rge
Regulatory Asset
Date Beginning Balance
Regulatory Asset
Amortization Ending Balance
lnterest
Rate
June - Sept
Forecast
Usage
75,279,326
94,967,539
84,915,635
74,688,329
June - Sept
Forecast
Usage
Line No
Line No.
Oct-17 S
Nov-17 S
Dec-17 S
Jan-18 S
Feb-18 S
Mar-18 S
Apr-18 S
May-18 S
Jun-18 S
Jul-18 S
Aug-18 S
Sep-18 S
Oct-17 S
Nov-17 S
Dec-17 S
Jan-18 S
Feb-18 S
Mar-18 S
Apr-18 S
May-18 S
Jun-18 S
Jul-18 $
Aue-18 S
Sep-18 S
4,028,203.00
3,796,851.28
3,499,094.75
3,1.15,470.88
2,763,996.37
2,456,787.62
2,139,958.36
7,995,092.66
!,704,436.92
7,495,907.92
L,232,084.68
996,098.08
lnterest
S3,259.08
s3,038.71
$2,754.92
s2,448.76
$2,t74.42
S1,914.51
S1,680.57
St,+99.t8
51,332.92
S1,136.19
s928.02
5743.26
s (234,610.80)
5 (300,795.24)
s (386,378.79)
5 (353,923.33)
s (309,383.1_1)
5 8L8,743.77)
$ (246,s46.27)
5 $92,154.92)
s (209,861.92)
s (264,959.43)
5 Q36,914.621
s (208,380.44)
3,796,851,.28
3,499,094.75
3,L15,470.88
2,763,996.31,
2,456,787.62
2,139,959.36
L,895,092.66
L,704,436.92
1,,495,907.92
1,232,084.68
996,099.09
788,460.90
1
2
3
4
5
6
7
8
9
10
11
72
s
$
s
s
s
s
s
s
s
s
s
s
L.OOo/o
1.00%
1.00%
7.OO%
L.00%
1.00o/o
7.00%
1.00%
1,.00%
LAO%
7.00%
1.00o/o
Regulatory Asset
Date Beginning Balance
Non-Residentia! Electric Surcharge
Interest
RegulatoryAsset lnterest
Amortization Ending Balance Rate
13
74
15
16
17
18
19
20
2t
22
23
24
2,556,424.O0
2,340,572.54
2,142,092.7L
1,908,108.79
L,707,048.L5
7,476,346.13
1,269,133.88
r,074,724.39
878,773.53
674,501-.17
423,253.63
788,434.62
s2,039.57
s1,867.00
s1,685.88
S1,503.19
s1,323.36
51,,L43.47
S97s.9s
5813.37
s646.93
54s7.21
52s4.76
s71.92
(2L7,891..03)
(200,346.83)
(235,670.80)
(208,563.83)
(226,025.38)
{208,355.72)
(195,985.44)
(196,L64.23)
(204,919.35)
(257,704.691
(235,073.77)
(204,254.251
2,340,572.54
2,142,092.7L
1,908,109.79
L,707,048.15
7,476,346.!3
1,269,133.88
L,074,L24.3g
878,773.53
674,50L.1.1
423,253.63
188,434.62
(L5,747.711
s
s
S
5
s
s
s
s
5
s
5
S
s
s
5
S
s
S
S
s
s
s
s
s
1,.00%
1,.00%
1.00%
7.00%
1,.00%
1,.00%
1,.00o/o
t.oo%
1.00o/o
1,.00%
7.OO%
1,,O0%
85,383,064
704,876,956
97,947,403
85,105,937
EXHIBIT B Page 5 of 8
Line No.
Revenue From20L7 Normalized Loads and
1 Customers at Present Billing Rates (Note 1)
2 October 2018 - September 2019 Usage
3 Proposed FCA Recovery Rates
4 Present FCA Recovery Rates
5 lncremental FCA Recovery Rates
6 lncremental FCA Recovery
7 lncremental Surcharge %
8 3% Test Adjustment (Note 2)
9 3% Test Rate Adjustment
10 Adjusted Proposed FCA Recovery Rates
11 Adjusted lncremental FCA Recovery
t2 Adjusted lncremental Surcharge %
Notes
Avista Utilities
Fixed Cost Adjustment (FCA) 3% Test
2017 ldaho Electric Deferrals
Residential
5Lr3,687,907
7,L76,997,O75
-So.oorzs
So.oozsr
-So.oo+sz
(s5,378,877)
-4.73%
SO
So.ooooo
-So.oorzo
(55,378,877)
-4.73%
Non-Residential Total
S97,998,930 52LL,686,937
1,077,98t,L63
So.oooso
s0.00241
-So.oo18s
(s1,994,265) (57,373,L421
-2.O3%
SO
s0.00000
So.oooso
(s1,994,265) (s7,373,L421
-2.03%
(1) Total 2OL7 weather normalized billing determinants priced at the billing rates effective
06lo1-l2oL8.
(2) The carryover balances will differ from the 3% adjustment amounts due to the revenue related
expense gross up combined with additional interest on the outstanding balance during the
amortization period.
EXHIBIT B Page 6 of 8
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Electric System
TWELVE MONTHS ENDED DECEMBER 3l, 2015
Line
No.Description Factor
Revenues 1.000000 1.000000
2
Expense:
Uncollectibles 0.004847 0.004847
J Commission Fees 0.001877 0.001877
4 Idaho Income Tax 0.050065
5 Total Expense 0.0s6789 0.006724
6
7
Net Operating Income Before FIT 0.943211 0.9932t6
Federal Income Tax@35%0.330124
8 REVENUECONVERSIONFACTOR 0.613087 0.993276
9
AVU-E-16-03 Settlement Conversion Factor
Gross Up Factor 1.006770
EXHIBIT B Page 7 of 8
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EXHIBIT C
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Sconario: AVU-E-16-03 Settlement Case
Load Factor Peak Credit
Transmission By Demand '12 CP
(b) (c) (d)(e)(0
System
Description Total
Functional Cost Components d Cunent Retum by Schedule
Production '1 15,040,037
Transmission 25,264,199
Disribution 61,360,578
Common 41,934,186
AVISTA UTILITIES
Revenue to Cost by Functional Component Summary
For the Twelve Months Ended December 31, 2015
ldaho Jurisdiction
Electric Utility
(s)
Residential
Seryice
Sch 1
(h)
General
Service
Sch 11-12
(0
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Service
Sch2l-22
0
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Seruice
Sch 31-32
1 0/03/1 6
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Street &
Area Lights
Sch 41-49
0 (k)
Extra Large Exta Large
Gen Seruice Service CP
Sch 25 Sch 25P
1
2
3
4
5
16
17
18
19
20
21
44,320,419
9,933,659
29,280,337
14,809,845
3,684,724
10,965,292
25,422,314
5,699,676
14,030,362
12J69,224
2,409,625
2,047,999
2,392,152
15,262,249
3,092,119
383,093
2,509,538
1 117 00t
394,32s
2,205,173
914,507
427,991
50,070
2,448,321
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243,599,000 105,522,000 36,021,000 52,133,000 19,419,000 21,247,000 s,742,000 3,s15,000
6
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Total Current Rate Revenue
Expressed as $/kvvh
Production
Transmission
Distribution
Common
Total Curent l\relded Rates
Common
Total Uniform Current Cost
Expressed as $/kwh
Production
Transmission
Oistribution
Common
Total Curent Uniform Melded Rates
Revenue to Cost Ratio at Curent Rates
$0.03820
$0.00839
$0.02038
$0 01393
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$0.00869 $0.01030
$0.02561 $0.03066
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$0.03867
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$0.02134
$0.01062
$0.03552
$0 00681
$0.00579
$0.00676
$0.03638
$0 00737
$0 00091
$0.00598
$0.03409
$0.00603
$0.03374
$0.01399
$0.03016
$0.003s3
$0.1 7255
$0.04148
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11
ta
13
14
15
Functional Cost Components al Uniform Cunent Retum
Production 1 14,1 16,865
Transmission 25,076,464
Distribution 62,120,226
46,899,317
11,609,150
32,9'1 1,083
13,687,291
3,032,045
9,379,279
24,468,703
5,170,758
12,854,443
11,915,390
2,106,273
1,815,929
14,434,008
2,687J82
334,848
2,280,276
419,574
2,325,977
944,028
431,879
51,282
2,498,666
596,38642,285,445 23,644,757 s,929,464 6,620,623 2,224,127 2,326,060
243,599,000 115,064,307 32,028,080 49,114,527 18,061,720 19,782,298 5,969,855 3,578,213
$0 03790
$0.00833
$0.02063
$0.01404
s0.04102
$0.01015
$0.02879
$0.02068
$0.03827
$0.00848
$0.02622
$0 01658
$0.03722
$0.00786
$0.019s5
$0.01007
$0.03367
$0.00s95
$0.00513
$0.00628
$0.03441
$0.00641
$0.00080
$0.00s5s
$0 03489
$0.00642
$0.035s8
$0.01444
$0.03044
$0 00361
$0.17610
$0.04203
$0.08089
1.00
$0.10065
0.92
$0.08954
1.12
$0.07470
1.06
$0.09133
0.96
$0.2s218
0.98
$0.05104 $0.04716
1.08 1.07
22
23
24
25
t6
Functional Cost Components at Proposed Retum by Schedule
Production 1 1 6,951,569
Transmission 26,380,297
Disbibution 63,624,243
Common 42,892,891
45,220,072
'10,518,528
30,s47,580
22,565,8?0
14,997,271
3,793,794
11,230,294
6,666,641
25,799,984
5,909,315
14,496,417
7,123,284
12,749,325
2,493,252
2,111,971
2,438,451
15,481,021
3,199,113
395,846
2,s58,020
2,268,589
413,944
2,299,031
937,436
435,306
52,352
2,543,103
603,239
Total Proposed Rate Revenue
as $/kv\h
Distrbution
Common
Total Proposed Melded Rates
Functional Cost Components at Unitom Requested Return
249,849,000 1 08,852,000 36,688,000 53,329,000 1 9,793,000 21,634,000 5,91 9,000 3,634,000
$0.021 13 $0 02672 $0.03140 $0.17923
$0.01424 $0.01974 $0.01864 $0.01083 $0.00689 $0.00610 $0.01434 $0.04251
$0.08297 $0.09521 $0.102s7 $0.08111 $0.05593 $0.05157 $0.09055 $0.25611
30
34
1(
JD
37
JU
?o
40
41
42
43
44
Production
Transmission
0istribution
Common
Total Uniform Cost
Expressed as $ikwh
Production
Transmission
Distribution
Common
Total Unifom Melded Rates
R€venue to Cost Ralio at Proposed Rates
Curent Revenue to Proposed Cost Ratio
116,060,094
26,'198,029
64,360,317
43,230,s60
47,697,938
12,128,378
34,036,086
24,158,070
13,920,364
3,167,656
9,708,775
6,060,652
24,885,366
5,402,024
13,368,580
6,777,981
12,118,290
2,200,478
1,887,993
2,276,286
14,679,797
2,807,578
349,1 75
2,380,526
2,319,105
438,340
2,415,756
965,960
439,233
53,575
2,593,951
61'1,085
249,849,000 1 18,020,473 32,857,446 50,433,952 18,483,047 20,217,075 6,'139,162 3,697,845
$0.03854
$0.00870
$0.02137
$0.01436
$0.04172
$0.01061
$0.02977
$0.02113
$0 03892
$0 00886
$0.02714
$0.01694
$0.03785
$0.00822
$0.02033
$0.01031
$0.03424
$0.00622
$0.00534
$0.00643
$0.03s00
$0.00669
$0.00083
$0.00568
$0.03548
s0.00671
$0.03696
$0.01478
$0.03096
$0 00378
$0.1 8281
$0.04307
$0 08297
1.00
0.97
6,250,000
$0.10323
0.92
0.89
12,499,000
$0.09186
1.12
1.10
(3,164,000)
$0.07671
1.06
.t.03
(1,699,000)
$0.05223 $0.04820 $0.0s392 $0.26061
1.07 1.07 0.96 0.98
r.05 r.05 0.94 0.95
(936,000) (1,030,000) 397,000 183,000
Stipulation a nd Settlement
Case No. AVU-E-16-03
Appendix B - FCA Base, Page 4
27
28
Production
Transmission
$0.03884
$0.00876
$0.03471
i0.00633
$0.03068
$0.00369$0.00920 $0.01061
Target Revenue lncrease
EXHIBIT C Page 6 of 6