20180810Decision Memo.pdf

DBCISION MEMORANDUM
COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDITH PACILLO
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 2,2018
SUBJECT:THE RESIDENTIAL AND SMALL FARM ANNUAL RATE FILING OF
AVISTA CORPORATION, CASE NO. AVU.E-18.08
On July 31,2018, Avista Corporation dba Avista Utilities applied to the Commission
for authorization to implement a Residential and Small Farm Energy rate credit, for rate
schedules l, 12,22,32, and 48, of 0.069 cents per kilowatt-hour. Application at l. Avista states
that this rate represents an increase of $0.1 million to qualifying customers and requests an
effective date of October 1,2018. Id. at l-2. Avista requests that the Application be processed
under Modified Procedure. Id. atZ.
Avista explains that the Residential and Small Farm Energy credit rate results from an
agreement between the Company and the Bonneville Power Administration (BPA) regarding the
Residential Exchange Program. Id. The Residential Exchange Program provides a share of the
benefits of the federal Columbia River power system to the residential and small farm customers
of the six investor-owned utilities of the Pacific Northwest, including Avista. Id. at2-3.
The cument Residential and Small Farm credit rate is 0.078 cents per kilowatt-hour.
Id. at3. The proposed credit rate of 0.069 cents per kilowatt-hour is designed to pass through
approximately $0.84 million which is the Idaho portion of BPA benefits, offset by the over-
refunded balance from the prior year, starting in October 2018. Id. While the level of BPA
benefits is consistent with what is currently being passed back to customers today, the offset by
the over-refunded balance results in the reduced credit. Id. at 3. Thus, the overall increase to
qualifying customers under the proposed rate credit is $0.1 million, or 0.1%o. Id. at4. Avista
indicates that the change in rate credit does not affect its net income. Id.
DECISION MEMORANDUM
TO:
1
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due 2l days after the service date of the Order.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with comments due 21 days after the service date of the Order?
lr{ 4/L
6,,Edith Pacillo
Deputy Attorney General
I :\Legal\ELECTRIC\AW-E- I 8-08\memos\AVIJE I 808_ep.doc
2DECISION MEMORANDUM