20190701notice_of_application_order_no_34368.pdf

Office of the Secretary
Service Date
July 1,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION DBA AVISTA )CASE NOS.AVU-E-19-04
UTILITIES FOR AUTHORITY TO )
INCREASE ITS RATES AND CHARGES FOR )NOTICE OF APPLICATION
ELECTRIC SERVICE TO ELECTRIC )
CUSTOMERS IN THE STATE OF IDAHO )NOTICE OF
)INTERVENTION DEADLINE
)ORDER NO.34368
On June 10,2019,Avista Corporation dba Avista Utilities ("Avista"or the
"Company")filed an Application seeking authority to increase the Company's general rates for
electric service in Idaho by an average of 2.1%.'If approved,the Company's revenues from
electric base rates would increase by $5.3 million dollars annually.Avista requests an effective
date of January 1,2020,for its proposed electric rate increases.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED Avista is a public utility primarily engaged in the
generation,transmission and distribution of electric power and the distribution of natural gas in
portions of eastern and central Washington and northern Idaho,as well as the distribution of natural
gas in northeast and southwest Oregon.Avista's existing Idaho rates and charges for electric
service were approved by the Commission on December 28,2017,and became effective on
January 1,2018.See Order No.33953.
YOU ARE FURTHER NOTIFIED Avista's Application asserts there is a need for a
revenue increase primarily due to increases in net plant investment by the Company in excess of
what is currentlyauthorized by the Commission in Avista's current rates for electric service in
Idaho.Application at 3.The Company's Application also asserts that for 2020,there is an
offsetting decrease in power supply expenses.Id.Avista's evidence in support of its requested
rate increase is based on a 12-month test year that ended December 31,2018.Id.at 4.
I The Company's Applicationrequests an increase in rates and charges for electric service only.Previously,Avista
filed a Notice of Intent to File a Combined Electric and Natural Gas General Rate Case on March 25,2019.The
Company has since determined it is not necessary to file a general rate case for its natural gas service in Idaho.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34368 1
YOU ARE FURTHER NOTIFIED Avista claims in its Application its existing rates
are not fair,just,and reasonable,and the Company must increase them so it can have the
opportunityto earn a fair return on its investment.Id.at 3.Avista plans to notify its customers
about the proposed rate increases by distributing bill stuffers over the June 2019 billing cycle,and
through news releases.Id.at 9.
YOU ARE FURTHER NOTIFIED Avista's Application requests an overall rate of
return of 7.55%,which includes a 9.9%return on equity.Id at 5.
YOU ARE FURTHER NOTIFIED Avista's Application asserts the proposed increase
for a residential customer using an average of 898 kilowatt hours (kWh)per month is $2.89 per
month in 2019 ($82.57 to $85.46 per month),or a 3.5%increase in their monthlyelectric bill.See
Application at Exhibit B.Avista is not proposing to increase the residential basic monthlycharge,
currentlyset at $6.00 per month.Avista's proposed electric rate increase would impact customers'
electric bills by rate schedule as follows:
Proposed Electric Increase by Percentage
Proposed 2019
Rate Schedule Billing Increase
Residential Service Schedule 1 3.5%
General Service Schedules 11 &12 0.0%
Large General Service Schedules 21 &22 1.5%
Extra Large General Service Schedule 25 1.6%
Extra Large General Service Schedule 25P 1.6%
Pumping Service Schedules 31 &32 1.5%
Street &Area Lighting Schedules 41-49 0.0%
Overall Increase 2.1%
Application at Exhibit B.
YOU ARE FURTHER NOTIFIED that the Commission has designated this case as a
general rate case.As such,Avista's intrastate revenue requirement,and every component of it,
both rate base and expense,are at issue.The Commission may grant,deny,or modifythe revenue
requirement requested and may find a revenue requirement different from that proposed by any
party is just,fair and reasonable.IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Avista retail
customers,both recurring and non-recurring,includingthose of special contract customers,are at
issue,and every component of every existing and proposed rate and charge is at issue.The
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34368 2
Commission may approve,reject or modify the rates and charges proposed and may find that rates
and charges different from those proposed by any party are just,fair and reasonable.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve,reject or modify
existing or proposed relationships between and among rates and charges within,between or among
customer classes or rate groupings and may approve,reject or modify existing or proposed
relationships among and between customer classes or rate groupings.IDAPA 31.01.01.124.02.a.
YOU ARE FURTHER NOTIFIED that the Commission may abolish,reduce or create
rate blocks or categories of rates and charges,abolish,create or reduce components of rates and
charges,abolish,reduce or create customer classes or rate groupings,and abolish,reduce or create
absolute or relative differences among and between existing classes or rate groupings of customers.
IDAPA 31.01.01.124.02.b.
YOU ARE FURTHER NOTIFIED that the tariffs,practices,rules and regulations,
service,instrumentalities,equipment,facilities,classifications,and customer relations of the utility
are at issue,and the Commission may address any of them in its order.IDAPA 31.01.01.124.02.c.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission office.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 "Open Electric Cases,"and then click on
the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that the Commission has determinedthat the public
interest requires the scheduling of a public workshop or workshops in this case.The public
workshops,to be scheduled at a later date,will offer the public an opportunityto meet with the
Commission Staff,ask questions and receive information about the Company's Application.
SUSPENSION
YOU ARE FURTHER NOTIFIED that Avista's Application requests a January 1,
2020 effective date,but the proposed tariffs accompanyingthe Application specify a July 10,2019
effective date.This matter is sufficiently complex to justify allowing the Commission,parties,
and public the longer period of time in which to assess the Application.The Commission thus
finds it appropriate to suspend Avista's effective date,as proposed in its tariffs,to coincide with
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34368 3
the January 1,2020 effective date proposed in the Application,unless the Commission issues an
earlier Order accepting,rejecting,or modifying Avista's Application.2 See also Idaho Code §61-
622(4)and Order No.33953 at 2.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
Petition to Intervene with the Commission pursuant to this Commission's Rules of Procedure 72
and 73,IDAPA 31.01.01.072 and -.073.Persons intending to participate at the hearing must file
a Petition to Intervene no later than fourteen (14)days from the service date of this Order.
Persons desiring to present their views without parties'rights of participation and cross-
examination are not required to intervene and may present their comments without prior
notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice
of Parties after the deadline for intervention has passed.The Notice of Parties shall assign exhibit
numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued,the
Commission's Staff will convene an informal prehearing conference at the Commission's office
for the parties to discuss a schedule to process this case and other issues as may be raised by the
parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Avista's representatives in this matter:
David J.Meyer,Esq.
Vice President &Chief Counsel,Reg.&Gov't Affairs
Avista Corporation
PO Box 3727
1411 E.Mission Avenue
Spokane,WA 99220-3727
Phone:[phone]
Fax:[phone]
E-mail:[e-mail]
2 Consistent with Order No.33953 from the Company's last general rate case,Avista has requested any such rate
increase authorized by the Commission in this case would not go into effect until January 1,2020.See Order No.
33953 at 2.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34368 4
Patrick D.Ehrbar
Director of Regulatory Affairs
Avista Utilities
PO Box 3727
1411 East Mission Avenue
Spokane,WA 99220-3727
Phone:[phone]
Fax:[phone]
E-mail:[e-mail]
[e-mail]
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in this
matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA).Persons needingthe help of a sign language interpreter or other assistance
in order to participate in or to understand testimony and argument at a public hearing may ask the
Commission to provide a sign language interpreter or other assistance at the hearing.The request
for assistance must be received at least five (5)working days before the hearing by contacting the
Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE,IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-mail:secretary puc.idaho.gov
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically Idaho
Code §§61-501,61-502,61-507,61-520,61-523,and 61-622.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 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the proposed effective date for Avista's electric
service rate increases is suspended until January 1,2020,unless the Commission issues an earlier
Order accepting,rejecting,or modifyingthe Application.Idaho Code §61-622(4);see also Order
No.33953 at 2.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34368 5
IT IS FURTHER ORDERED that persons desiring to intervene in this matter for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
with the Commission no later than fourteen (14)days from the service date of this Order.
IT IS FURTHER ORDERED after the intervention deadline runs,Staff will convene
an informal prehearingconference at the Commission's office for the parties to discuss a schedule
to process this case and other issues as may be raised by the parties.
IT IS FURTHER ORDERED that Commission Staff shall conduct a public workshop
or workshops pursuant to Rule 127 of the Commission's Rules of Procedure,IDAPA
31.01.01.127.The number of workshops and the date and time scheduled therefore will be set
forth by subsequent Order or Notice.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this i
day of June 2019.
PAUL K LLAND ,PRESIDENT
KRI E RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
Commission Secretary
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34368 6