20190326notice_of_application_order_no_34291.pdf

Office of the Secretary
Service Date
March 26,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE ELECTRIC LINE )CASE NO.AVU-E-19-03
EXTENSION SCHEDULE 51 RATE )ADJUSTMENT FILING OF AVISTA )NOTICE OF APPLICATION
CORPORATION )
)NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34291
On March 11,2019,Avista Corporation (the "Company")applied to the Commission
for an order allowing it to revise Electric Line Extension Schedule 51.The Company proposes to
update its costs to extend electric lines to new customers,and the allowance that customers can
apply to offset those costs.The Company also proposes administrative changes to Schedule 51.
The Company requested a May 1,2019 effective date,and that its application be processed by
Modified Procedure.
With this Order,we provide notice of the Application and set comment and reply
deadlines.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that with this Application,the Company proposes to
revise Electric Line Extension Schedule 51,effective May 1,2019.Application at 1.Specifically,
the Company seeks to update the average cost for facilities like transformers and conduit that are
used to extend electric lines.The Company proposes to use the updated costs to increase the
allowances that customers can apply against the costs to extend new residential,commercial,and
industrial service.Any costs that exceed an allowance would be paid by the customer as a
Contribution in Aid of Construction.Id.at 3-4.The Company's proposed changes to the
allowances by service schedule are,in summary:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34291 1
Present Proposed
Service Schedule Allowance Allowance
Sched.1 Individual Customer (per unit)$1,810 $1,840
Sched.1 Duplex (per unit)$1,445 $1,470
Sched.1 Multiplex(per unit)$1,085 $1,105
Sched.11/12 (per kWh)$0.14788 $0.15022
Sched.21/22 (per kWh)$0.13603 $0.13853
Sched.31/32 (per kWh)$0.24227 $0.24653
YOU ARE FURTHER NOTIFIED that the Company proposes to update its
primary,secondary,service and transformer average costs as follows:
Present Proposed
Overhead Primary Circuit
Fixed Cost $4,323 $4,253
Variable Cost $8.43 $8.38
Underground PrimaryCircuit
Fixed Costs $1,889 $1,854
Variable Costs $l 1.24 $l 1.23
UndergroundSecondary Circuit
Fixed Costs $430 $418
Variable Costs $9.93 $10.42
Overhead Secondary Circuit
Fixed Costs $1,785 $1,774
Overhead Service Cir.$3.98 $3.91
Underground Service $9.39 $9.41
Overhead Transformer $2,381 $2,310
Padmount Transformer $3,516 $3,507
Id.at 5.
YOU ARE FURTHER NOTIFIED that the Company proposes to update its
residential development costs to reflect the Company's current Construction &Material
Standards and average 2018 construction costs,as follows:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34291 2
ResidentialDevelopments
Present Proposed
Total Cost per Lot $1,867 $1,907
Less:Service Cost 471 471
Developer Responsibility $L396 $1Z6
Developer Refundable Payment $1,396 $1,436
Builder Non-Refundable Payment $57 $67
Allowance $1,810 $1,840
Id.at 5-6.
YOU ARE FURTHER NOTIFIED that,besides updating its costs and allowances,the
Company proposes administrative changes that would make Schedule 51 easier for customers
to understand.These include:(1)clarifying when a Design Fee is charged,and that the Design
Fee is not refundable;(2)combining Basic and Exceptional charges into a single charge (the
change would not impact the costs paid by the customer for line extensions);(3)redefining
"Customer-Requested Costs"to help customers apply their line extension allowance toward the
overall cost of their line extension;(4)for commercial and industrial customers,clarifyingwhen
an allowance would not be immediately provided and,in those cases,when a customer's
allowance would be refunded after service installation;and (5)for conversions and relocations,
redefining "Salvage Value"to clarify that not all removed materials would have salvage value,
and that the Company would determine Salvage Value in its discretion (the Company states this
change would not materiallyimpact customers).Id.at 6-10.
YOU ARE FURTHER NOTIFIED that the Company states that the week of April 1,
2019,it will send a letter to the developers and builders that may be affected by the proposed
changes.Id.at 11.
YOU ARE FURTHER NOTIFIED that the Application and supporting work papers,
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 www.puc.idaho.gov.Click on the
"File Room"tab at the top of the page,scroll down to "Electric Cases,"and then click on the case
number as shown on the front of this document.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34291 3
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdictionunder Title 61 of the Idaho Code.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 MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determinedthat 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 or party desiring to state a position
on this Application may file a written comment in support or opposition with the Commission no
later than April 16,2019.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearingmust specifically request a hearing in their written comments.
Written comments concerning this Application shall be mailed to the Commission and the
Applicant at the addresses reflected below:
Commission Secretary David Meyer
Idaho Public Utilities Commission Patrick Ehrbar
PO Box 83720 Avista Corporation
Boise,ID 83720-0074 PO Box 3727
MSC-27
Street Address for Express Mail:1411 E.Mission Ave
Spokane,WA 99220-3727472W.Washington Street E-ma11:daviimever avistacorp.comBoise,ID 83702-5918
Comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via email may do so by accessing the
Commission's home page located at www.puc.idaho.gov.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 Applicant.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34291 4
YOU ARE FURTHER NOTIFIED that the Company may file reply comments,if
necessary,no later than April 23,2019.
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.
ORDER
IT IS HEREBY ORDERED that this case be processed by Modified Procedure,Rule
201 -204 (IDAPA 31.01.01.201 through.204).Persons wishing to file written comments must do
so by April 16,2019.The Company must file a reply,if any,by April 23,2019.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this Zé
day of March 2019.
PAUL KJELLANDEli,RESIDENT
KR INE RAPER MMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTE T:
Diane M.Hanian
Commission Secretary
I:\f egal\ELECTRIC\AVU-E-19-03\orders\AVUEl903_nteapp mp_kk.docx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34291 5