20180810Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 10,2018
SUBJECT: AVISTA CORPORATION'S ANNUAL POWER COST ADJUSTMENT
(PCA) APPLICATION; CASE NO. AVU-E-18-07
On July 30,2018, Avista Corporation 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 0.3261,
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 0.0860 per kWh increase in the customer rebate rate). Since PCA rate adjustments are
spread on a uniform cents per kilowatt-hour basis, the resulting percentage decrease would vary
by schedule. The overall decrease is 1.0%. Residential customers using an average of 910 kWh
per month would see their monthly bills decrease from $88.49 to $87.70. The Company requests
that its Application be processed under Modified Procedure.
STAFF RE,COMMENDATION
Staff recommends that the case be processed by Modified Procedure, with comments
due by September 13 , 2018 and the Company's reply due by Septemb er 20,20 1 8.
COMMISSION DECISION
Does the Commission wish to process this case by Modified Procedure with a comment
deadline of September 13, 2018 and a reply deadline of September 20,2018?
J
DECISION MEMORANDUM
l:\[.egal\ELECTRIC\A\tr-E-18-07\]\,lEl\{OStAVUElS0Tdecision memo ej.docx
Deputy A
1