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HomeMy WebLinkAbout20180731Application.pdfAvista Corp. 141 1 East Mission P.O. Box 3727 Spokane. Washington 99220-37 27 Telephone 509-489-0500 Toll Free 800-727-9170 REC E IVED 20lB JUL 3 ' ll{ 9: t6 It1 4 | t.t i1' riar tAlL/l'ri'j U l"UIJL.lt 1T i l. tTl r.5 cotltu{ t$sto}lJ Atwsrt cwp. July 30, 2018 Diane Hanian Commission Secretary Idaho Public Utilities Commission 472W. Washington St. Boise, Idaho 83702-5983 RE: Advice 18-05-E/Case No. AVU-E-18-qB Residential Exchange Annual Rate Adjustment Filing of Avista Corporation Dear Commission Secretary: Enclosed for filing with the Commission is Avista Corporation's dba Avista Utilities ("Avista or the Company") Application requesting approval of changes to the Company's Residential and Small Farm Tariff Schedule 59. An original and seven (7) copies have been sent to the Commission via overnight mail. Please direct any questions regarding this filing to Joe Miller at (509) 495-4546 or me at (509) 49s-8620. Patrick Ehrbar Director of Regulatory Affairs Enclosures 1 2 J 4 5 6 7 8 9 DAVID .J. MEYER VICE PRESIDENT AND CHIEF COUNSEL FOR REGULATORY AND GOVERNMENTAL AFFA]RS AVISTA CORPORATION I4L1- E. MISSION AVENUE P. O. BOX 3727 SPOKANE, WASHINGTON 99220 PHONE: (509) 495-43L5, FAX: (509) 495-885L BEFORE THE IDAHO PUBLIC UTILITIES COMMISSfON RECEIVED ?OIB JIJL 3I AH 9: I ? Ci'lilb 10 ll t2 13 t4 15 t6 l7 IN THE MATTER OF THE RESIDENTIAL) A}TD SMALL FARM A}TNUAL RATE ) AD,]USTMENT FTL]NG OF ) AVISTA CORPORATTON ) AVU-E-18-O8 ADVICE ]-8-05-E APPLICATION OF AVTSTA CORPORATION 18 I. INTRODUCTION 19 In accordance with Idaho Code 551-502 and RP 052, Avista 20 Corporation, doing business as Avista Utilities (hereinafter 2l "Avista" or "Compafiy"), at L4lL East Mission Avenue, Spokane, 22 Washington, respectfully makes application to the Idaho 23 Pub1ic Utilities Commission ("Commission") for an order 24 authorizing Avista to implement Residential and Sma11 Farm 25 Energy raUes for electric servj-ce from October 1, 2018 through 26 September 30, 2OL9. The proposed Residential and Smal1 Farm 27 Energy Rate Adjustment credit rate for rate schedules L, a2, 28 22, 32, and 48 is 0.059C per kilowatt-hour. The credit rate AVISTA, S ELECTRIC RESIDENTIAL AND SI,IALL FARM A}INUAL RATE AD.JUSIMENT FILING PAGE ]- I represents a $0.1 million increase to qualifying customers. 2 The Company has requested an October L, 2018 effective date. 3 The Company requests that this filing be processed under 4 the Commission's Modified Procedure Rules (RP 20L-204) . 5 Communications in reference to this Application should be 6 addressed to: 7 8 9 10 11 t2 13 14 15 16 17 David J. Meyer, Esq. Vice President and Chief Counsel for Regulatory & Governmental Affairs Avista Corporation P.O. Box 3727 MSC-27 ]-4a]- E. Mission Ave Spokane, WA 99220-3727 Phone: (509) 495-4316 David. Meyer@avistacorp . com 18 t9 20 2l 22 23 24 25 26 27 28 Patri-ck Ehrbar Director of Regulatory Affairs Avista Utilities P-O. Box 3727 MSC-27 1-4]-L E. Mission Ave Spokane, WA 99220-3727 Phone: (509) 495-8520 Pat . ehrbar@avistacorp . com II. BACKGROUIID 29 The electric Residential and Farm Energy Rate Adjustment 30 results from an Agreement between the Company and Bonneville 31 Power Administration (BPA). The Residential Exchange Program 32 provides a share of the benefits of the federal Columbia River 33 power system to the residential and smalI-farm customers of AVISTA'S ELECTRIC RESIDENTIAL AI\D SMALL FARM ANNUAL RATE AD.JUSTMENT FILING PAGE 2 \ the six investor-owned utilities of the Pacific Northwest, including Avist.a ITI. DRIVERS OF THE RESIDENTIAI. AI{D SIIiA,LL FARM ENERGY RATE AD.fUSTMENT CREDIT 6 Under the current Residential Exchange rate adjustment, 7 approximately $0.94 million annually is being passed through 8 to applicable Idaho customers through a uniform 0.078Q per 9 kilowatt-hour rate credit. This rate was approved by the 10 Idaho Public Utilities Commission ef f ecti-ve October 1-, 201-7 . 1l The proposed rate credit of 0.059+ per Kilowatt-hour is 12 designed to pass through approxi-mately $0.84 million which 13 represents the Idaho portion of the annual 1eve1 of BPA 14 benefits, offset by the over-refunded balance from the prior 15 year, starting in October 2018. The 1eve1 of BPA benefits 16 are consistent with what is currently being passed back to 17 customers in rates today. That amount, however, is offset by l8 a proj ected over-refunded balance of approxj-mately $0 . f 19 miIIion, which is due to actual usage being higher than what 20 was projected in the Company's 201,7 filing. The table below 2l details the year over year differences between the benefit 22 j-ncluded in current rates and the proposed benefit included 23 in this filing. AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE AD,JUSTMENT FILING I 2 J 4 5 PAGE 3 I 201_8 Proposed $ (921,570) $ 88, s27 I (4,892) 201-7 Present $ (921, s70) S (11,24e) S (5,31s) Change $o $ 99 ,'7'7 6 $ L,423 2 J 8 9 fdaho portion of benefit amount Estimated over/ (under) refunded balance Revenue Conversion factor Revenue Requirement 4 5 6 $ (837,934) s (93e,134) $ 101,200 The Company is therefore proposj-ng an overall increase of $0.1 million or 0.1? for qualifying customers. The change in rate credit has no effect on Avista's net income. 7 IV. PROPOSED RATES TO BE EFFECTIVE OCTOBER 1-2018 The Company is proposing a per kilowatt-hour Residential 10 and Small Farm Energy Rate Adjustment credit rate of 0.069+ 11 for rate schedules 7-, A2, 22, 32, and 48 to become effective 12 October 1-, 20r-8. Attachment A to this Application provj-des 13 the Residential and Small Farm Energy Rate Calculation. 14 Attached as Exhibit \\A" is a copy of the proposed tariff , 15 Schedule 59, which contains the proposed Residential and 16 Small Farm Energy rates discussed earlier in this 17 Application. Exhibit \A" also includes the proposed changes 18 to Schedule 59 in strike-out/underline format. Residential 19 customers using an average of 9l-0 kilowatt-hours per month 20 would see their mont.hly bi11s increase from $88.49 to $88.57, 2l an increase of $0.08 per month, or 0.1-?. AVISTA, S ELECTRIC RESIDENTIAL AND SIvIALL FARM ANNUAL RATE AD.JUSTMENT FILING PAGE 4 V. COMMT'NICATIONS A}ID SERVICE OF APPI,ICATION fn conformance with RP L25, this Application will be brought to the attention of the Company's customers. fncluded j-n this filing is the form of Press Release which will be issued on .Ju1y 30, 201-8, ds well as the form of Customer Notice which will be included in customer's biI1s beginning in early August 20L8, and run for a fu1l billing cyc1e. VI. REQUEST FOR RELIEF 10 The Company requests that the Commission issue an order 1l approving a per kilowatt-hour Residential and Sma11 Farm 12 Energy credit rate of 0.059+ for rate schedules 7-, A2,22, 13 32 , and 48 to become ef f ect j-ve October !, 201-8. The 14 Residential and Sma1l Farm Energy credit represents a $0.1 15 million, or 0.1-?, increase to qualifylng customers. The 16 Company reguests that the matter be processed under the 17 Commission's Modified Procedure rules through the use of l8 written comments. Dated at Spokane, Washington this 30Eh day of July 201-8. AVI RATTON BY Patrick Ehrbar Dlrector of Regulatory Affairs AVISTA, S ELECTRIC RESIDENTIAL AND SI"IALL FARM ANNUAL RATEAD.JUSTMENT FILING I 2 J 4 5 6 7 8 9 L9 20 2t 22 23 24 PAGE 5 1 2 J 4 5 6 7 8 9 10 11 t2 13 l4 15 t6 17 18 19 20 2t 22 Z) 24 25 26 27 28 29 30 VERIFICATION STATE OF WASHINGTON ) ) County of Spokane ) Patrick D. Ehrbar, for Avista Corporation and makes this verification for and on behalf of saj-d corporation, being thereto duly authorized,' That he has read the fo thereof, and believes the s filing, knows the contents e true SIGNED AIID SWORN to before me this 30th day of ,Ju1y 201-8, by Patrick D. Ehrbar. \t l1L I NOTAR C in and for the Statezofngton, residing at Spokane. Commj-ssion Expires:U 2 2 I AV]STA'S ELECTRIC RESIDENTTAL AND SMALL FARM ANNUAL RATEAD,JUSTMENT FILING .1.23 ,Gfr PAGE 6 AVISTA CORPORATION dba Avista Utilities Effective: October 1,2018lssued: July 30, 2018 l.P.U.C. No.28 Eighteenth Revision Sheet 59 Canceling Seventeenth Revision Sheet 59 SCHEDULE 59 RESIDENTIAL AND FARM ENERGY RATE ADJUSTMENT - IDAHO APPLICABLE: To Residential Customers in the State of ldaho where Company has electric service available. This rate adjustment results from an Agreement between the Company and Bonneville Power Administration (BPA) covering Residential Exchange Program benefits, The rate adjustment in this schedule shall be applicable to customers served under Schedules 1, 12, 22, 32 and 48. MONTHLY RATE: The energy charges for all blocks of electric Schedules 1, 12,22 and 32 and the charges for area lights based on the energy usages of the lights on Schedule 48 are to be reduced by 0.069d per kWh. SPECIAL TERMS AND CONDITIONS: The rate adjustment under this schedule is subject to revision to reflect the true up from estimated to actual benefits and to reflect projected future benefits. ln the event the credits applied under this schedule exceed the benefits, the Company will adjust the rate on this schedule to recover that difference. The energy credit applied to Schedule 32 for farm irrigation and pumping load, for each billing period, shall not exceed the amount of energy determined by the following formula: 400 x A.746 x days in the billing period x24 ln no instance shall any qualifying irrigation and pumping load for any month exceed 222,000 kwh. Service under this schedule is subject to the Rules and Regulations contained in this tariff. The above rate is subject to the provisions of Tax Adjustment Schedule 58. Vgl*bL Patrick Ehrbar - Director of Regulatory Affairs LP.U.C. No.28 lssued by Avista Utilities By Seventeenth Revision Sheet 59 Canceling Sixteenth Revision Sheet 59 AVISTA CORPORATION dba Avista Utilities SCHEDULE 59 RESIDENTIAL AND FARM ENERGY RATE ADJUSTIUENT - IDAHO APPLICABLE: To Residential Customers in the State of ldaho where Company has electric service available. This rate adjustment results from an Agreement between the Company and Bonneville Power Administration (BPA) covering Residential Exchange Program benefits. The rate adjustment in this schedule shall be applicable to customers served under Schedules 1, 12,22, 32 and 48. MONTHLY RATE: The energy charges for all blocks of electric Schedules 1, 12,22 and 32 and the charges for area lights based on the energy usages of the lights on Schedule 48 are to be reduced by e07€* per kWh. SPECIAL TERMS AND CONDITIONS; The rate adjustment under this schedule is subject to revision to reflect the true up from estimated to actual benefits and to reflect projected future benefits. ln the event the credits applied under this schedule exceed the benefits, the Company will adjust the rate on this schedule to recover that difference. The energy credit applied to Schedule 32 for farm irrigation and pumping load, for each billing period, shall not exceed the amount of energy determined by the following formula: 400 x 0.746 x days in the billing period x 24 ln no instance shall any qualifying irrigation and pumping load for any month exceed 222,000 kwh. Service under this schedule is subject to the Rules and Regulations contained in this tariff. The above rate is subject to the provisions of Tax Adjustment Schedule 58. lssued: July 31,2017 Effective: October 1,2017 Kelly Norwood - Vice President, State and Federal Regulation AVISTA CORPORATION dba Avista Utilities SCHEDULE 59 RESIDENTIAL AND FARM ENERGY RATE ADJUSTMENT - IDAHO APPLICABLE: To Residential Customers in the State of ldaho where Company has electric service available. This rate adjustment results from an Agreement between the Company and Bonneville Power Administration (BPA) covering Residential Exchange Program benefits. The rate adjustment in this schedule shall be applicable to customers served under Schedules 1, 12,22,32 and 48. MONTHLY RATE: The energy charges for all blocks of electric Schedules 1, 12,22 and 32 and the charges for area lights based on the energy usages of the lights on Schedule 48 are to be reduced by 0.069d per kWh. SPECIAL TERMS AND CONDITIONS: The rate adjustment under this schedule is subject to revision to reflect the true up from estimated to actual benefits and to reflect projected future benefits. ln the event the credits applied under this schedule exceed the benefits, the Company wil! adjust the rate on this schedule to recover that ditference. The energy credit applied to Schedule 32 for farm irrigation and pumping load, for each billing period, shall not exceed the amount of energy determined by the following formula: 400 x 0.746 x days in the billing period x 24 ln no instance shall any qualifying irrigation and pumping load for any month exceed 222,000 kwh. Service under this schedule is subject to the Rules and Regulations contained in this tariff. The above rate is subject to the provisions of Tax Adjustment Schedule 58. lssued: July 30, 2018 Effective: October 1,2018 Eighteenth Revision Sheet 59 Canceling Seventeenth Revision Sheet 59LP.U.C. No.28 lssued by Avista Utilities By Patrick Ehrbar - Director of Regulatory Affairs