20180928final_order_no_34159.pdf

Office of the Secretary
Service Date
September 28,2018
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 )CORPORATION )ORDER NO.34159
On July 30,2018,Avista Corporation ("Avista"or "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.On August 15,2018,the Commission issued a
Notice of Application and Notice of Modified Procedure setting comment and reply deadlines.
Order No.34125.Commission Staff timely submitted comments,and supported the Company's
request.No other comments were received.
THE APPLICATION
Avista requests a final deferral balance for the period of July 1,2017 to June 30,2018
of ($9,313,625).Application at 4.The overall decrease in the Company's annualizednet revenues,
after accounting for the expiration of the existing rebate,is ($2,597,000).Id.at 6.The resulting
percentage decrease in the Company's annualized revenues is 1.0%.Id The Company requests to
spread the rebate evenlyacross rate schedules on a cents per kilowatt-hour ("kWh")basis.Id at 5.
Under the Company's proposal,the PCA rebate rate for all customers would increase from the
current rebate of 0.240 cents per kWh,as established in Commission Order No.33894,to 0.326
cents per kWh.Id.at 4-5.
THE COMMENTS
Staff filed the only comments in this matter,and recommended the Commission
approve the Application.In reviewing the Company's PCA Application,Staff reviewed:(1)actual
and authorized expenses included in the deferral;(2)the deferral calculation method;(3)the
prudence of actual net power costs incurred during the deferral period;(4)the calculation of
balancing accounts and interest used to determine the final PCA rate;and (5)the calculation of the
PCA rate.Staff Comments at 2.
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Staff represented that the Company's methodologies were reasonable and compliant
with Commission Orders and that the Company's calculations were accurate.Staff recommended
the Commission authorize ($9,313,625)to be refunded to ratepayers through the PCA in
accordance with the Company's Application and that the Commission approve proposed tariff
Schedule 66 as filed in Exhibit A of the Company's Application.Id Staff also recommended that
the Commission order the Company to report PCA expenses in their quarterlyreports based on a
PCA year,instead of on a calendar year,in order to more closely align with the PCA filing.Id at
3,11.
COMMISSION FINDINGS
The Commission has jurisdiction over this matter under Idaho Code §§61-502 and 61-
503.The Commission has the express statutory authority to investigate rates,charges,rules,
regulations,practices,and contracts of public utilities and to determine whether they are just,
reasonable,preferential,discriminatory,or in violation of any provision of law,and may fix the
same by order.Idaho Code §§61-502 and 61-503.
The Commission thoroughlyreviewed the Application and comments.We fmd the
Company's methodology adheres to our prior Orders regarding the PCA.Thus we accept the
deferral balance for the period of July 1,2017 to June 30,2018 of ($9,313,625).We further find
the Company's proposed rebate of 0.326 cents per kWh to be just and reasonable,and we approve
it and the proposed tariff Schedule 66,to be effective October 1,2018.We further find Staff's
recommendation to align PCA reporting with the PCA year to be reasonable.
ORDER
IT IS HEREBY ORDERED that the Company's Application regarding its annual PCA
rate adjustment is approved.The Company's deferred power costs of ($9,313,625)from July 1,
2017 to June 30,2018,are approved.The Company is authorized to implement a PCA rebate rate
of 0.326 cents per kWh and the Company's proposed Schedule 66 is approved,to be effective
October 1,2018.
IT IS FURTHER ORDERED that the Company report its PCA expenses in quarterly
reports based on the PCA year.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order with regard to any
matter decided in this Order.Within seven (7)days after any person has petitioned for
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reconsideration,any other person may cross-petition for reconsideration.See Idaho Code §61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2018.
PAUL KÈLLAN R,PRESIDENT
K .INE RAPER,COM SIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
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