20180815notice_of_application_order_no_34125.pdf

Office of the See i
Service Date
August 15,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE POWER COST )CASE NO.AVU-E-18-07
ADJUSTMENT (PCA)ANNUAL RATE )ADJUSTMENT FILING OF AVISTA )NOTICE OF APPLICATION
CORPORATION )
)NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34125
On July 30,2018,Avista Corporation (the "Company")filed its annual Power Cost
Adjustment (PCA)Application.The PCA is an annual adjustment mechanism that tracks changes
in the Company's hydroelectric generation,secondary prices,thermal fuel costs,and changes in
power contract revenue and expenses.
This year,the Company asks the Commission to approve a PCA rebate rate of 0.326¢per
kWh to be effective October 1,2018.Under the Company's proposal,the PCA rebate rate for all
customers,including residential customers,would increase from the current rebate of 0.240¢per
kWh (a 0.086¢per kWh increase in the customer rebate rate).Residential customers using an
average of 910 kWh per month would see their monthly bills decrease from $88.49 to $87.70,a
decrease of $0.79 per month,or 0.9%.The Company requests that its Application be processed
under Modified Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company reports lower power supply expenses
than expected,less transmission expense,less expense due to retail loads,and a credit due to Idaho
customers for the sale of renewable energy credits (REC)used to meet Washington's Renewable
Energy Portfolio Standards.The lower power supply costs,transmission expenses,retail load
expenses,and REC credit is partially offset by a power purchase agreement the Company has with
Palouse Wind.Johnson Direct at 3.The net impact of these items is a total deferral of $9,313,625,
including interest,for the period of July 2017 through June 2018.Brandon Direct at 4.
YOU ARE FURTHER NOTIFIED that last year the Company's PCA application resulted
in a rebate to customers of 0.240¢per kWh.In this Application,the Company proposes that the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34125 1
PCA credit or rebate for all customers in tariff Schedule 66 move to a credit of 0.326¢per kWh.
Because the PCA rate adjustments are spread on a uniform cents-per-kilowatt-hour basis,the
resulting percentage increase in billed revenues varies by customer groups.The overall decrease
in the PCA rate is 1.0%.Application at 7.
YOU ARE FURTHER NOTIFIED that the Company calculates that the average residential
customer using 910 kWh of electricity per month will see a monthlybill decrease of79¢per month.
Application at 6.
YOU ARE FURTHER NOTIFIED that the Company proposed that its Application be
processed under Modified Procedure to become effective on October 1,20 l 8.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter and will proceed under Modified Procedure
pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission's Rules of Procedure,
IDAPA 31.01.01.201 through .204.The Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission no later
than September 13,2018.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written
comments.Written comments concerning this Application shall be mailed to the Commission and
the Company at the addresses reflected below:
Commission Secretary David J.Meyer,Esq.
Idaho Public Utilities Commission Vice President and Chief Counsel
PO Box 83720 Regulatory and Governmental Affairs
Boise,ID 83720-0074 Avista Corporation
P.O.Box 3727
Street Address for Express Mail:MSC-27
1411 E.Mission Ave.
472 W.Washington Street Spokane,WA 99220-3727
Boise,ID 83702-5918 E-mail:[e-mail]
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34125 2
Patrick D.Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O.Box 3727
MSC-27
1411 E.Mission Ave.
Spokane,WA 99220-3727
E-mail:[e-mail]
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at I 'Click the "Case Comment or Question
Form"under the "Consumers"tab,and complete the comment form using the case number as it
appears on the front of this document.These comments must also be sent to the Company at the
e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments,if
necessary,no later than September 20,2018.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its Order
without a formal hearing.If written comments are received within the time limit set,the
Commission will consider them and,in its discretion,may set the same for formal hearing.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission's web site at ww_w.gue.jdaho.gov.Click on the
"File Room"tab at the top of the page,scroll down to "Open Electric Cases,"and then click on
the case number as shown on the front of this document.
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 §§
61-307,61-503,and 61-622.The Commission may enter any final Order consistent with its
authorityunder Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34125 3
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure (IDAPA
31.01.01.201 through .204).Interested persons wishing to file comments or protests in this matter
must do so no later than September 13,2018.
IT IS FURTHER ORDERED that the Company may file reply comments,if necessary,no
later than September 20,2018.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this Í 6
day of August 2018.
PAUL KJELLA E ,PRESIDENT
KR TINE RAPER,CO MISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
AVUE1807 ntcofapp ej
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34125 4