20180730Application.pdf

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Avista Corp.
141 1 East Mission P.O. Box 3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
VIA OVERNIGHT MAIL
July 27,2018
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Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise, ID 83702-5983
RE: Case No. AVU-E-l8- 0'7
Power Cost Adjustment (PCA) Annual Rate Adjustment Filing of Avista Corporation
Dear Ms. Hanian:
Enclosed for filing with the Commission is Avista's 2018 Power Cost Adjustment (PCA) annual
rate adjustment filing. The filing consists of an original and seven copies of Avista's Application
and nine copies of prefiled testimony and exhibits. Also enclosed are three copies of supporting
workpapers and documentation. A certificate of service, three copies of a customer notice, and
three copies of a press release are also enclosed. A computer readable copy of the testimonies,
exhibits, and workpapers, required under Rule 231.05, are included on an enclosed compact disc.
The Company is requesting that the Commission issue an order approving recovery of power costs
deferred for the period July l, 2017 through June 30,2018, and approving a PCA rebate of 0.326f,
per kilowatt-hour to be effective October 1,2018. Under the Company's proposal, the PCA rebate
rate for all customers, including residential customers, would increase from a rate of 0.240$, per
kilowatt-hour to a rate of 0.3301 per kilowatt-hour, or an increase in the rebate rate of 0.0861 per
kilowatt-hour. Since PCA rate adjustments are spread on a uniform cents per kilowatt-hour basis,
the resulting percentage decrease varies by rate schedule. The overall decrease is 1.0%.
lii-rtsra rir
For an average residential customer using 910 kilowatt-hours per month, the monthly decrease
will be $0.79. Under present rates, a residential bill for 910 kilowatt-hours amounts to $88.49.
With the proposed rebate in place the monthly bill would be $87.70, or 0.9%o less than the bill
under present rates.
Certain supporting documents are CONFIDENTIAL, rendering these documents exempt from
public inspection, examination and copying pursuant to Sections 74-l0l through 74-126 of the
Idaho Code. Avista believes that the identified CONFIDENTIAL supporting documents contain
valuable commercial information.
As such, Avista is submitting a separate electronic CD containing the electronic form of the
CONFIDENTIAL supporting documents, in compliance with Rule 067.02.b.
Please direct any questions regarding this filing to Annette Brandon at [phone] or myself
at (509) 49s-4620.
D.
Director of Regulatory Affairs
Enclosures
Aiiwsra
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have served Avista Corporation's Power Cost Adjustment
(PCA) Annual Rate Adjustment Filing by mailing a copy thereof, postage prepaid, to
the following:
Commission Secretary
ldaho Public Utilities Commission
472W . Washington St.
Boise, lD 83702-5983
Peter J. Richardson
Richardson Adams PLLC
515 N.27th Street
Boise, lD 83702
Peter. richardsonadams. com
Marv Lewallen
Cleanryater Paper
28530 W Canyon Creek Rd. - South
Wilsonville, OR 97007
Email: marv@marv. lewallen.com
Ronald L. Williams
Willams Bradbury, P.C.
P.O. Box 368
Boise, lD 83701
ron@williamsbradbu ry. com
(Excluding Confidential lnformation)
Dean J. Miller, Lawyer
3620 E. Wam Springs
Boise, lD 83701
Email: deanmiller@ea bleone.net
Terry Borden
Cleanruater Paper
601 W. RiversideAve. Suite 1100
Spokane, WA 99201
Terry. Borden@cleanrvater paper. com(Excluding Confidential lnformation)
Larry A Crowley
The Energy Strategies lnstitute lnc
5549 S. Cliffsedge Ave
Boise, !D 83716
Email: [e-mail]
(Excluding Confidential lnformation)
Dr. Don Reading
6070 Hill Road
Boise, ldaho 83703
d read [e-mail]
ngton this 27th day of July 2018
Patrick D. Ehrbar
Director of Regulatory Affairs
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PATRICK D. EHRBAR
DIRECTOR OF REGULATORY AFFATRS
AVISTA CORPORATION
1-4LI E. MISSION AVENUE
P. O. BOX 3727
SPOI(ANE, WASHTNGTON 99220
PHONE: (509) 495'8620, FAX:
R ECEIVED
2Bl0 JLIL 30 All 9: 30
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(so9) 49s-88s1
BEFORE THE IDAHO PUBLIC UTILITTES COMMISSION
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IN THE MATTER OF THE POWER COST )
AD.fUSTMENT (PCA) ANNUAL RATE )
ADJUSTMENT FTLING OF AVTSTA )
CoRPoRATTON )
CASE NO. AVU-E-18- ry
APPLICATION OF AVTSTA
CORPORATION
16 I INTRODUCTION
t7 fn accordance with Idaho Code 56l--502 and RP 052, Avista
18 Corporation, doing buslness as Avista Utilities (hereinafter
19 "Avj-sta" or "Company"), at 1411 East Mission Avenue, Spokane,
20 Washington, respectfully files its Power Cost Adjustment
2I (PCA) annual rate adjustment filing j-n the above referenced
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case. The Company requests the Commission issue an order
approving the level of power costs deferred in the rebate
direction for the period .fu1y 1-,201-7 through June 3 0 , 20L8 ,
and approving a PCA rebate rate of
to be effective October 7-, 2018.
0.326Q per kj-lowatt-hour
The Company requests that
AVISTA'S PCA ANNUAL RATE ADJUSTTIENT FTLING PAGE 1
I this filing be processed under the Commission's Modified
2 Procedure Rules
Communications in reference to this Applicatj-on should
be addressed to:
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David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
Avista Corporation
P.O. Box 3727
t(sc-27
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]L5
Fax: [phone]
David . Meyer@avi stacorp . com
Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O. Box 3727
MSC-27
L4lL E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]
Patrick . Ehrbar@avi stacorp . com
Electronically
Docket s@Avi stacorp . com
3l II. BACKGROT'I{D
32 Avista's PCA is used to track changes in revenues and
33 costs associated with variations in hydroelectric generation,
34 secondary prices, thermal fuel costs, and changes in power
35 contract revenues and expenses. Avista's existing PCA
36 methodology and method of recovery were approved in Case No.
AVISTA'S PCA A}INUAL RATE ADJUSTMENT FILING PAGE 2
1 AVU-E-07-01 by Order No. 30361 dated June 29, 2007. In that
2 case the Commission approved a change in the PCA methodology
3 from a trigger and cap mechanism to a single annual PCA rate
4 adjustment filing reguirement.
5 The Commissj-on also approved a change in the method of
6 the PCA deferral rate adjustment from a uniform percentage
7 basis, to a uniform cents per kilowatt-hour basis effective
8 with the October 1, 2007 PCA rate change. By Order No. 32206
9 in Case No. GNR-E-10-03 dated March 15, 201,1,, the Commission
l0 modified the retail revenue credit methodology and approved
11 a Load Change Adjustment Rate based on the energy classified
12 portion of embedded production revenue reguirement effective
13 April a, 201"L.
14 The Commission approved the following procedural
15 schedule for adminj-stering the annual PCA filings:
16 August 1 Company filing for prior July June
17 deferral period
18 September 1 Review and comments by Staff and other
19 interested parti-es
20 October 1 Commission Order and effective date of
2l PCA rate adjustment
22 The present PCA rebate was made effective on October 1,
23 20a7. On ,Ju1y 31, 201,7, in Case No. AVU-E-L7-07, Avista filed
AVf STA'S PCA AI{NUAL RATE AD.]USTMENT FILING PAGE 3
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I its annual PCA rate adjustment for the deferral period July
2 1-, 201-6 t.hrough,June 30, 201-7 and requested a PCA rebate rate
3 of 0.240+ per kilowatt-hour effecti-ve October !, 201-7. The
4 Commission approved that application in Order No. 33894, dated
5 September 29, 20L7.
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III. DEFERRJALS JULY 1 2OL7 THROUGH iIT'NE 30 20L8
The amount of power cost deferrals for the period July
be1ow, as well as9 L, 20L7 through June 30, 201,8
10 interest for the same period.Company witness Mr. Johnson's
ll testimony provides an explanatj-on of the factors causi-ng the
1,2 def erral entrj-es f or the period. Company wit,ness Ms .
l3 Brandon's testimony addresses the deferral and interest
14 amount.l
is shown
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Deferrals (July 2017 - June 2OL8t
Renewable Energy Credit Retirement Benefit
Interest
Total Deferral Balance
$ (9,293,6961
$ ( 1,706)
$ (t8,223)
18 Monthly reports have been filed with the Commission
19 regarding actual PCA deferral entries to date. An additional
20 copy of those reports for the months of ,Ju1y 20L7 through
lThe Renewable Energy Credit, Retirement Benefit,s for RECs used to meetWashington RPS are tracked 100? in the PCA, per prior Commission Orders.This credit is based on the ldaho allocat,ion of RECs that were ret,ired to
meet Washington RPS (WA f-937) t,hat would have ot,herwise been so1d. Thecredit to ldaho customers reLated to retired RECs was $1 ,705.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4
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1 ,June 201,8 has been included with this filing and has also
been provided to Clearwater Paper Corporation and Idaho Forest
Group.
IV. PROPOSED REBATE TO BE EFFECTIVE OCTOBER 1, 2018
The Company is proposing a uniform cents per kilowatt-
hour PCA rebate rate of 0.326+.to be effective October A,
2018. See Company witness Brandon, Page 1 of Exhibit No.
AI,1B-1 for the calculation of the proposed rebate. Attached
to this Application as Exhibit \rA" is a copy of the proposed
tariff , Schedule 55, which contaj-ns t.he proposed PCA rebate
rate. Exhibit \A" also includes the proposed changes to
Schedule 56 in strike out/underline format. The proposed
rebate is designed to rebate the following:
Renewable Energy Credit Retirement Benefit
Unamortized Balance from Previous Deferrals
(prior to ,ru1y 1, 2077)
Amortization ,fu1y 20]-7 - ,June 201-8
Interest
Total- Remaining Amortization Bal-ance
S (g ,zgz ,596)
fnterest
i (2,t1s,133)
(July 2018-
TOTAL BAI,ANCE FOR AMORTIZAT]ON $ (9, zg6,1-71)
.Tune 2 018 )Deferrals (,Ju1y 2017
$ ( L,706)
$ (]-8,223)
Total Deferral Balance
ected Amort and InterestProj
$ L,702,597
$ ( 9, :13 , 525)
September 2018)
$ (2, :80, 935)
$ 5,26L,699
$ (55,897)
AVTSTA'S PCA ANNUAL RATE AD'JUSTMENT FTLING PAGE 5
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Af ter applying the convers j-on factor relat.ed to
commission fees and uncollectible customer accounts, the
resulting rebate of i9,843,538 is divided by forecasted
kilowatt-hours to deri-ve the proposed rebate rate of 0.326+
per kilowatt.-hour. 2
Since PCA rate changes are spread on a uniform cents per
kilowatt-hour basis, the resulting percentage decreases vary
by rate schedule. Page 1 of Ms. Brandon's Exhibit, No. AMB-1
shows the effect of the proposed PCA rebate by rate schedule.
The overall decrease,after accounting for the expiration of
the existing rebate, and the new rebate, is $2,597,000, or
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13 Residential customers using an average of 910 kilowatt-
14 hours per month would see their monthly bi11s decrease from
15 $88.49 to $87.70, a decrease of $0.79 per month, or 0.9?.
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17 v. REQUEST FoR REIJIEF
l8 The Company requests that the Commissj-on issue an order
19 approvlng power costs deferred for the period July 1-, 201-7
20 through ,June 30, 20L8, and approvJ-ng a PCA rebate of 0.326Q
2l per kilowatt-hour to be effect.ive October 1, 2O:-B. Under the
22 Company's proposal, the PCA rebate for all customers,
2Tota1 Balance for Amortization $9,786,171 divided by conversion factor0.994162 = $9,843,638
AVTSTA'S PCA ANNUAL RATE AD,JUSTMENT FILTNG PAGE 6
I including residential customers, would increase from a rebate
2 rate of 0.240+ per kilowatt-hour to a rebate rate of 0.325+
3 per kilowatt-hour. Since PCA rat,e adjustments are spread on
4 a uniform cents per kilowatt-hour basis, the resulting
5 percentage decrease varj-es by rate schedule. The overall
6 decrease j-s 1.0?. The Company requests that the matter be
7 processed under the Commission's Modified Procedure rules
8 through the use of written comments.
9 Dated at Spokane, Washington this 27Lh day of .fu1y 201-8.
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BY
Patri-ck D. EhrbarDirector of Regulat.ory Affairs
AVTSTA'S PCA ANNUAL RATE ADJUSTMENT FfLING PAGE 7
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VERIFICATION
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 Corporation and makes this verification
for and on behalf of said corporation, being thereto duly
authori-zed;
That he has read the fo iIing, knows the contents
thereof, and believes the
SIGNED AND SWORN to before me this 27th day of ,Ju1y 20L8,by Patrick D. Ehrbar.
I v
NOT PUBLIC in and for the Stateof Was ngton, residing at Spokane.
Commiss j-on Expires:.7?LJ
I 2 3
ffiffi
AVISTA'S PCA ANNUAL RATE AD.JUSTMENT FILING PAGE 8
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STATE OF WASHINGTON )
Case No. AVU-E-I8-q
Exhibit ccl^))
l.P.U.C. No.28
Twentieth Revision Sheet 66
Canceling
Nineteenth Revision Sheet 66
Patrick Ehrbar - Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shal! be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1 , 11, 12, 21 , 22, 25, 25P, 31 , 32, and
4149 are to be decreased by 0326A per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 27,2018 Effective October 1,201€,
Vc/*t-^-
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retai! customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1 , 11, 12, 21, 22, 25, 25P,31, 32, and
41-49 are to be decreased by W$ per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 31 ,2017 Effective October1,2017
Nineteenth Revision Sheet 66
Canceling
Revision Sheet 66El.P.U.C. No.28
By Kelly O. Norwood -Vice President, State & Federal Regulation
l.P.U.C. No.28
Twentieth Revision Sheet 66
Canceling
Nineteenth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12,21, 22, 25, 25P,31, 32, and
41-49 are to be decreased by 0.3266 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 27,2018 Effective October 1,2018
By Patrick Ehrbar - Director of Regulatory Affairs