20190701Application.pdf

Avista Corp.
141 1 East Mission P.O.Box 3727
Spokane, Washington 99220-3727
Telephone [phone]
Toll Free 800-727-9170
REC E IVED
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June 28, 2019
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise, ID 83702
Re Case No. AVU-E-l9-E
Electric Fixed Cost Adjustment Annual Rate Filing of Avista Corporation
Dear Ms. Hanian:
Enclosed for filing with the Commission is Avista's electric Fixed Cost Adjustment (FCA) annual
rate adjustment filing. This filing consists of an original and seven copies of Avista's Application,
Exhibit A (the Company's proposed tariffs), Exhibit B (rate calculations), Exhibit C (2018
deferral), and Exhibit D (customer communications) in support of the Application. A computer
readable copy of the Application, exhibits, and workpapers, required under Rule 231.05, are
included on an enclosed USB drive.
Electronic versions of the Company's filing were emailed to the Commission, and the Service List,
on June 28,2019. Those documents have also been provided on the enclosed USB drive.
Please direct any questions on this matter to me at [phone] or Tara Knox at (509) 495-
4325.
Patrick D. Ehrbar
Director of Regulatory Affairs
Enclosures
Page 1 of 1
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this 28th day of June,2019, served the Application of Avista
Corporation - Fixed Cost Rate Adjustment, upon the following parties, by mailing a copy
thereof, properly addressed with postage prepaid to:
Diane Hanian, Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise, ID 83702
[e-mail]. gov
Karl Klein
Deputy Attorney General
Idaho Public Utilities Commission
472W. Washington
Boise,ID 83702-0659
karl.klein@puc. idaho. gov
Larry A. Crowley
The Energy Strategies Institute, Inc.
3738 S. Harris Ranch Ave.
Boise,ID 83716
[e-mail]
Ronald L. Williams
Williams Bradbury, P.C.
P. O. Box 388
802 W. Bannock, Suite LP 100
Boise, lD 83702
ron@wi lliamsbradbury. corn
Brad M. Purdy
Attorney at Law
2019 N lTth Street
Boise,lD 83702
bmp u rd)r@h otrna i I . c orn
Peter J. Richardson
Greg M. Adams
Richardson Adams
515 N. 27tr' Street
PO Box 7218
Boise, lD 83702
peter@richard sonadams. com
gre [e-mail]
Benjamin J. Otto
Idaho Conservation League
710 N. 6th St.
Boise, lD 83702
botto@idahoconservation. org
Dr. Don Reading
6070 Hill Road
Boise,ID 83703
dreadin g@mindsprin& corn
Patrick D. Ehrbar
Director of Regulatory Affairs
1 DAVID J. MEYER2 VICE PRESIDENT AND CHIEF COUNSEL FOR3 REGULATORY AND GOVERNMENTAL AFFAIRS4 AVISTA CORPORATION5 1411 E. MISSION AVENUE6 P. O. BOX 31277 SPOKANE, WASHINGTON 99220
8 PHONE: [phone], FAX: [phone]
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF THE FIXED COST )
ADJUSTMENT MECHANISM (FCA) )
ANNUAL RATE ADJUSTMENT FILING )
oF AVTSTA CORPORATION )
CASE NO. AVU-E-19-O-]
APPLICATION OF AVISTA
CORPORATION
18 I. INTRODUCTION
19 In accordance with Idaho Code $61-502, Commission Order No. 33437, and RP
20 052, Avista Corporation, doing business as Avista Utilities (hereinafter "Avista" or
2l "Company"), at 1471 East Mission Avenue, Spokane, Washington, respectfully makes
22 application to the Idaho Public Utilities Commission ("Commission") for an Order
23 approving the level of electric Fixed Cost Adjustment Mechanism (FCA) revenue deferred
24 during calendar year 2018 and authorizing FCA rates for electric service from October l,
25 2019 through September 30, 2020, and to approve the Company's corresponding
26 modifications to Schedule 75, "Fixed Cost Adjustment Mechanism - Electric". The FCA
27 rate for the Residential Group (Schedule l) is proposed to change from a present rebate
28 rate of -0. 17 6(, to a proposed surcharge rate of 0. I 5 8p per kilowatt-hour. The FCA rate for
29 the Non-Residential Group (Schedules ll,12,21,22,31 and 32) is proposed to change
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE I
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I from apresent surcharge rate of 0.056(,to aproposed surcharge rate of 0.145(,per kilowatt-
2 hour. The Residential Group rate change represents a $4.0 million, or 3.6%o, increase to
3 Schedule I customers, and the Non-Residential group rate change represents a $0.9 million,
4 or I .|oh increase. The combined effect of expiring FCA rates and the proposed 201 8 rates
5 are shown on the table below.
Expiring Present
FCA Revenue
Proposed FCA
Revenue
Proposed FCA
Increase
Residential $ (2,096,827)$ I ,882,379 $ 3,979,206
Non-Residential $593,367 $ 1,536,397 $943,030
The Company has requested an October 1,2019 effective date.
The Company requests that this filing be processed under the Commission's
Modified Procedure Rules (RP 201-204). Communications in reference to this Application
should be addressed to:
David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
Avista Corporation
P.O.Box3727
MSC-27
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
David. Meyer@avi stacorp. com
Patrick Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O.Box3127
MSC-27
l4l l E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
patrick. ehrbar@avistacorp. com
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AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 2
1 II. BACKGROUND
2 The purpose of the electric FCA is to adjust the Company's Commission-
3 authorized revenues from kilowatt-hour ("kWh") sales, such that the Company's revenues
4 will be recognized based on the number of customers served under the applicable electric
5 service schedules. The FCA allows the Company to: I ) defer the difference between actual
6 FCA-related revenue received from customers through volumetric rates, and the FCA-
7 related revenue approved for recovery in the Company's last general rate case on a per-
8 customer basis; and2) file atariff to surcharge or rebate, by rate group, the total deferred
9 amount accumulated in the deferred revenue accounts for the prior January through
l0 December time period.
11 In Case Nos. AVU-E-I5-05 and AVU-G-15-01, the Commission in Order No.
12 33437 approved for Avista a Fixed Cost Adjustment Mechanism. On page l0 of Order
l3 No. 33437, the Commission stated:
The parties have also agreed upon a three-yearl FCA pilot for electric and natural
gas operations. The FCA will compare actual FCA revenues to allowed FCA
revenues determined on a per-customer basis. Any differences will be deferred for
a rebate or surcharge. There are a number of customer safeguards, including that an
FCA surcharge cannot exceed a 3%o annual rate adjustment. Any unrecovered
balances will be carried forward to recover in future years. Further, there is no limit
to the level of the FCA rebate. As part of the Stipulation, Staff and other interested
parties, will review the effrcacy of the FCA after its second full year to ensure it is
functioning as intended. Fixed cost adjustment mechanisms are intended to
encourage conservation, and allow customers more control over their bills. Further,
the proposed FCA will remove any financial disincentive of the Company to
encourage energy conservation.
The Section 13 of the Stipulation and Settlement, as amended by Addendum to the
On June 15,2018, the Idaho Public Utilities Commission approved an Addendum to the Stipulation
which extended the term of the pilot for an additional year by Order No. 34085.
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AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 3
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I Stipulation approved by the Commission in Order No. 34085 on June 15,2018, provided
2 further details, reproduced below, regarding the mechanics of the fixed cost adjustment
3 mechanism.
A. FCA Mechanisms Term. The Parties agree to an initial FCA term of 4 years,
with a review of how the mechanisms have functioned conducted by Avista, Staff,
and other interested parties following the end of the third full-year. Avista may
seek to extend the term of the mechanism prior to its expiration. 2
B. Rate Groups. There will be two rate groups established for both the electric
FCA and natural gas FCA:
Electric Customer Rate Groups:
l. Residential - Schedule I
2. Commercial - Schedules 1 l, 12,21,22, 37,32
Natural Gas Rate Groups:
1. Residential - Schedule 101
2. Commercial - Schedules 111 and 112
C. Existing Customers and New Customers. The Parties have agreed that revenue
related to certain items discussed below would not be included in the FCA for new
customers. The result is that the Fixed Cost Adjustment Revenue-Per-Customer
for new customers will be less than the Fixed Cost Adjustment Revenue-Per-
Customer for existing customers. For new electric customers added after the test
period, recovery of incremental revenue related to fixed production and
transmission costs would be excluded from the electric FCA. For new natural gas
customers added after the test period, recovery of incremental revenue related to
fixed production and underground storage facility costs would be excluded. These
modifications are included in Appendices B and C to the Stipulation.
D. Quarterly Reporting. Avista will file, within 45 days of the end of each quarter,
a report detailing the FCA activity by month. The reporting will also include
information related to the deferrals by rate group, what the deferrals would have
been if tracked by rate schedule, use and revenue-per-customer for existing and
new customers, and other summary financial information. Avista will provide such
2 Review of the mechanisms took place at a workshop March 27 ,2019, and the Company has filed a
separate application with the Commission to extend the term of the FCA Mechanisms through March
31,2025.
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 4
other information as may be reasonably requested, from time to time, in the future
quarterly reports.
E. Annual Filings. On or before July 1, the Company will file a proposed rate
adjustment surcharge or rebate based on the amount of deferred revenue recorded
for the prior January through December time period. The rate adjustment would be
calculated separately for each Rate Group, with the applicable surcharge or rebate
recovered from each group on a uniform cents per kWh or per therm basis. The
proposed tariff (Schedule 75 for electric, Schedule 175 for natural gas) included
with that filing would include a rate adjustment that recovers/rebates the
appropriate deferred revenue amount over a twelve-month period effective on
October I for electric (to match with Power Cost Adjustment and Residential
Exchange annual rate adjustments time period) and November lst for natural gas
(to match with the annual Purchased Gas Cost Adjustment rate adjustment time
period). The deferred revenue amount approved for recovery or rebate would be
transferred to a balancing account and the revenue surcharged or rebated during the
period would reduce the deferred revenue in the balancing account. After
determining the amount of deferred revenue that can be recovered through a
surcharge (or refunded through a rebate) by Rate Group, the proposed rates under
Schedules 75 and 175 would be determined by dividing the deferred revenue to be
recovered by Rate Group by the estimated kWh sales (Electric FCA) or therm sales
Qrlatural Gas FCA) for each Rate Group during the twelve-month recovery period.
Any defened revenue remaining in the balancing account at the end of the
amortization period would be added to the new revenue deferrals to determine the
amount of the proposed surcharge/rebate for the following year.
F. Interest. Interest will be accrued on the unamortized balance in the FCA
balancing accounts at the Customer Deposit Rate.
G. Accounting. Avista will record the deferral in account 186 - Miscellaneous
Deferred Debits. The amount approved for recovery or rebate would then be
transferred into a Regulatory Asset or Regulatory Liability account for
amortization. On the income statement, the Company would record both the
deferred revenue and the amortization of the deferred revenue through Account 456
(Other Electric Revenue), or Account 495 (Other Gas Revenue), in separate sub-
accounts. The Company would file quarterly reports with the Commission showing
pertinent information regarding the status of the current deferral. This report would
include a spreadsheet showing the monthly revenue deferral calculation for each
month of the deferral period (January - December), as well as the current and
historical monthly balance in the deferral account.
H. 3% Rate Increase Cap. An FCA surcharge, by rate group, cannot exceed a 30lo
annual rate adjustment, and any unrecovered balances will be carried forward to
future years for recovery. There is no limit to the level of the FCA rebate.
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 5
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As detailed above, the Commission approved the following procedural schedule for
administering the annual electric FCA filings:
July 1 - Company filing for prior January - December deferral period
October 1 - Commission Order and effective date of electric FCA rate adjustment.
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III. DRIVERS OF ELECTRIC FCA DEFERRALS
The FCA surcharge deferrals in 2018 were the result of lower monthly use-per-
customer than the use-per-customer that was embedded in the 2016 test year (i.e., the FCA
base). Residential average monthly use-per-customer was lower by 25 kWhs, and non-
residential average monthly use-per-customer was lower by 135 kWhs in 2018. The
Company has identified several primary drivers for the change in use-per-customer.
First, weather was abnormally warrn during January and December, and fluctuated
with offsetting impacts throughout the rest of the year, giving rise to a weather
normalization adjustment3 that required the addition of 16.8 million kWhs to residential
usage (13 kWhs per customer) and 0.6 million kWhs (2 kWhs per customer) to non-
residential usage. The estimated FCA revenue shortfall associated with weather was
approximately $1.1 million residential and $0.1 million non-residential.
Since the 2016 test year used to set 2018 rates, Idaho customers have achieved
energy efficiency savings from participation in the Company's Demand Side Management
programs. Estimated cumulative savings since the test year (derived from the Idaho 2016,4
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The 2018 weather normalization adjustment was included in the Company's current general rate case
(IPUC Case No. AVU-E-19-04) utilizing the same methodology as IPUC Case No. AVU-E-I7-01 in
developing the FCA base effective during 2018.
For the energy efficiency savings in 20 16, the Company assumed that one-half of those savings were4
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 6
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I 2017 , and 201 8 DSM Annual Reports) reduced residential usage in 201 8 approximately 19
2 million kWhs and non-residential usage approximately 57 million kWhs. The estimated
3 FCA revenue shortfall associated with energy efficiency programmatic savings is $1.2
4 million residential and $3.2 million non-residential.
5 The "other" drivers are related to items not easily quantifiable, such as the effects
6 of non-programmatic energy efficiency, changes in business cycles, etc. The following
7 table summarizes the impact of these drivers on the FCA Revenues received from
8 customers in 2018.
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t4 RESIDENTIAL GROUP RATE D
15 The Company recorded $1,753,478 in the surcharge direction in defened revenue
16 for the electric residential customer group in 2018. Last year's rebate rate is expected to
17 slightly over-refund the balance resulting in a surcharge carry over of approximately
l8 $75,000. The proposed rate of 0.158 cents per kWh is designed to recover $1,882,379
19 from the Company's residential electric customers served under rate Schedule l. The
reflected in the test year billing determinants. The reduction in usage attributed to energy efficiency
savings in this filing include the other half of 20 l6 energy efficiency savings.
Residential
Use-per-
Customer
FCA
Revenue
Non-Residential Group
Use-per- FCA
Customer RevenueDriver
Weather
Irnerry Efficiency
Other
Total I
( l3)
(ls)
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($l.l)
($1.21
$0.5
(2)
(re6)
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AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 7
($0. t I
($3.2;
$1.9
2
1 following table summarizes the components of the Company's request for recovery:
2018 Deferred Revenue $1,7 53,478
Add: 2017 Car-ry Over Balance $75,245
Add: Interest through 913012020 $43,553
Add: Revenue Related Expense Adj $10,102
Total For Recovery $ 1,882,379
Customer Surcharge Revenue $ 1,882,379
Carryover Deferred Revenue $0
6 Exhibit B, page I shows the derivation of the proposed surcharge rate to recover
7 revenue of $1,882,379 based on projected sales volumes for Schedule I customers during
8 the surcharge/amortization period (October 2019 through September 2020). As identified
9 on tariff Sheet 75B under Step 7 of "Calculation of Monthly FCA Deferral", interest on the
l0 deferred balance accrues at the Customer Deposit Interest Rate.s If the proposed surcharge
11 is approved by the Commission, the 2018 deferral balance, plus interest through
12 September, and any outstanding balance approved for recovery in the prior year FCA rate
I 3 filing (Case No. AVU-E- I 8-06 Order No. 34 I 5 8), will be transferred into a regulatory asset
14 balancing account. The balance in the account will be reduced each month by the revenue
15 collected under the tariff.
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17 V. NON-RESIDENTIAL GROUP RATE DETERMINATION
1 8 The Company recorded $ I ,42 I ,402 in the surcharge direction in deferred revenue
19 for the electric Non-Residential Group in 2018. The proposed surcharge rate of 0.145 cents
20 per kWh is designed to recover $1,536,397 from commercial and industrial customers
TheCustomerDepositlnterestRatewasl.00%throughout20l8thenincreasedto2.00o/ofor20l9. The
current rate of 2.00Yo has been used going forward as an estimate for purposes of this rate determination.
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AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 8
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served under rate Schedules 11,12,21,22,31, and 32. The following table summarizes
the components of the Company's request for recovery:
2018 Deferred Revenue $1,421,402
Add: 2017 Carry Over Balance $67,892
Add: Interest through 9/3012020 $36,421
Add: Revenue Related Expense Adj.$ 10,683
Total For Recovery $1,536,397
Customer Surcharge Revenue $ 1,536,397
Carryover Deferred Revenue $0
7 Exhibit B, page 3 shows the derivation of the proposed surcharge rate to recover
8 revenue of $1,536,379, based on projected sales volumes for Schedules I I ,12,27,22,31,
9 and 32 during the surchargelamortization period (October 2019 through September 2020).
10 As identified on tariff Sheet 75B under Step 7 of "Calculation of Monthly FCA Deferral",
11 interest on the deferred balance accrues at the Customer Deposit Interest Rate.6 If the
12 proposed surcharge is approved by the Commission, the 2018 deferral balance, plus interest
13 through September, will be transferred into the regulatory asset balancing account with any
14 outstanding balance from the surcharge approved for recovery in Case No. AVU-E-I8-06.
l5 The balance in the account will be reduced each month by the revenue collected under the
16 tariff.
17 Support showing the monthly calculation of the 2018 deferral balances for both the
18 Residential and Non-Residential Groups is provided as Exhibit C. These calculations were
19 also provided to the Commission in quarterly reports.
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AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 9
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YI. 3O/" ANNUAL RATE INCREASE TEST
FCA rate adjustment surcharges are subject to a3o/o annual rate increase limitation.
There is no limit to rebate rate adjustments, therefore the reversal of any rebate rate is not
included in the incremental surcharge test. As described in tariff Schedule 75 (see First
Revision Sheet 75C),the3Yo annual rate increase limitation will be determined by dividing
the incremental annual revenue to be collected (proposed surcharge revenue less present
surcharge revenue) under this Schedule by the total "normalized" revenue for the two Rate
Groups for the most recent January through December time period. Normalized revenue
is determined by multiplying the weather-corrected usage for the period by the present rates
in effect. If the incremental amount of the proposed surcharge exceeds 3%o, only a 3Yo
incremental rate increase will be proposed and any remaining deferred balance will be
carried over to the following year.
Exhibit B, page 6 shows the 3oh test for the two rate groups. As the 2017
Residential deferral was a rebate, the existing surcharge rate is deemed to be $0.00000 for
purposes of this test. The incremental change from the existing surcharge to the proposed
surcharge is an increase of $1.9 million or approximately 1.7Yo. For the Non-Residential
group, the incremental change from the existing surcharge to the proposed surcharge is an
increase of $0.9 million or approximately L0%. As both the Residential deferral and the
Non-Residential deferral incremental surcharges are less than 3Yo for 2018, there is no
proposed carry over for either rate class.
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VII. EXISTING CUSTOMERS AND NEW CUSTOMERS
23 The Settlement Stipulation approved by the Commission requires that electric
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE I O
1 customers that have been added since the test year are subject to a FCA Revenue-Per-
2 Customer that excludes incremental revenue related to fixed production and transmission
3 costs. There is an inadvertent reference to "new natural gas customers" on Tariff Sheet 75
4 that the Company is proposing to replace with "new electric customers" in this filing.
5 Separate calculations for new versus existing customers are clearly identified in the FCA
6 base that was approved in Order No. 33953 for rates effective January 1,2078 and updated
7 for the Permanent Federal Income Tax Rate Credit settlement approved in Order No .34070
8 for rates effective June 1,2018 (included in this filing as Attachment C, pages 3 through
e 6).
10 Due to this segregation, Avista tracks the usage of new customers since January 1 ,
11 2017 as compared with existing customers.T In general, the average usage of new
12 customers is lower compared to the average usage of existing customers. Avista has found
13 that new customer meters, on average, have less usage in the hrst six to 12 months after
14 meter installation, then generally see increases in their usage until their usage is more in
15 line with the average usage of existing customers after 12 months of service. This is due,
16 in part, to the lag that occurs between when a meter is installed and billing commences,
17 and when a customer moves into the premises. Avista will continue to track the usage of
18 new customers over the Fixed Cost Adjustment term.
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AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE I1
"Existing customers" were paft of the test year used to set the January 1, 2018 rates (2016 calendar year).
"New customers" consist of all new hookups after the test year.
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2 VIII. PROPOSED RATES TO EFFECTIVE OCTOBER 1. 2019
3 The Company is proposing a per kilowatt-hour FCA surcharge rate of 0.158p for
4 the Residential Group, and a per kilowatt-hour FCA surcharge rate of 0.1450 for the Non-
5 Residential Group, both to become effective October 1,2019. Exhibit B to this Application
6 provides the Residential and Non-Residential Rate Calculation, and Exhibit C provides the
7 support for the deferrals for the January 1, 2018 through December 31, 2018 deferral
8 period. Attached as Exhibit A is a copy of the proposed tariff, Schedule 75, which contains
9 the proposed FCA rates and tariff revisions discussed earlier in this Application. Exhibit
10 A also includes the proposed changes to Schedule 75 in strike/underline format.
1l Residential customers using an average of 898 kilowatt-hours per month would see
12 their monthly bills increase from $82.57 to $85.57, an increase of $3.00 per month, or
13 3.6%.
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15 Ix. COMMUNICATIONS AND SERVICE OF APPLICATION
16 In conformance with RP 125, this Application will be brought to the attention of
17 the Company's customers. First, the Company has served a copy of this Application upon
l8 the service list in Case Nos. AVU-E-15-05 and AVU-G-15-01, the cases that gave rise to
19 the FCA mechanisms. Second, a copy of Company's news release and customer notice is
20 provided as Attachment D. The news release will be issued on July 7,2079, and the
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 12
1 customer notice will be inserted in customer bills starting on or about July 8, 2019, and
2 will run for a full billing cycle.
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4 X. REOUEST FOR RELIEF
5 The Company requests that the Commission issue an order approving FCA
6 deferrals for the period January 1,2018 through December 31,2018, and approve a per
7 kilowatt-hour FCA surcharge rate of 0.158p for the Residential Group, and a per kilowatt-
8 hour FCA surcharge rate of 0.145(, for the Non-Residential Group, both to become
9 effective October 1,2019. The Company also requests that the Commission approve the
10 proposed tariff modifications to tariff Sheet 75. The Residential Group surcharge
11 represents a $4.0 million, or 3.6Yo, increase to Schedule 1 customers, and the Non-
12 Residential group surcharge results in a $0.9 million, or 1.0%o, increase. The Company
13 requests that the matter be processed under the Commission's Modified Procedure rules
14 through the use of written comments.
15 Dated at Spokane, Washington this 28th day of June 2019.
16 AVISTA CORPORATION
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BY
Attorney for Avista Corporation
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 13
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VERIFICATION
STATE OF WASHINGTON )
)
County ofSpokane )
David J. Meyer, being first duly sworn on oath, deposes and says: That he is the
Vice President and Chief Counsel for Regulatory & Govemmental Affairs for Avista
Corporation and makes this verification for and on behalf of said corporation, being thereto
duly authorized;
That he has read the foregoing filing, knows the contents thereof, and believes the
same to be true.
-----
Meyer
SIGNED AND SWORN to before me this 28th day of June 2019, by David J.
EDE
p0TARY
NOTARY PUBLIC in and for the State of
Washington, residing at Spokane.
PUBLIC
commissionExpires: D5- 0q'J(B t
AVISTA'S ELECTRIC FCA ANNUAL RATE ADJUSTMENT FILING PAGE 14
BE,FORE TFIE
IDAHO PUBLIC UTILITIES COMMISSION
AVISTA UTILITIES
CASE NO. AVU-E-I9-ql
EXHIBIT A
Tariff Sheets - Proposed, Strikethrough and Underline
Electric Service
June 28, 2019
l.P.U.C. No.28
Third Revision Sheet 75
Canceling
Second Revision Sheet 75
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 75
FIXED COST ADJUSTMENT MECHANISM _ ELECTRIC
PURPOSE:
This Schedule establishes balancing accounts and implements an annual Fixed
Cost Adjustment ("FCA') rate mechanism that separates the recovery of the
Company's Commission authorized revenues from kilowatt-hour sales to
customers served under the applicable electric service schedules.
TERM:
The term of the FCA mechanism is four years, effective January 1,2016 through
December 31,2019.
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This schedule shall be applicable to all retail customers taking service
under Schedules 1, 11, 12, 21, 22, 31 , and 32. This Schedule does not apply to
Extra Large General Service Schedule 25, Extra Large General Service to
Cleanruater Paper Schedule 25P, or to Street and Area Light Schedules 41 through
49.
Applicable Customers will be segregated into two (2) distinct Rate Groups
Group 1-Schedule 1
Group 2 - Schedules 11, 12,21,22,31,32
Nofe - the recovery of incremental revenue related to fixed production and
fransmission cosfs will be excluded for new electric customers added afterthe FCA
Base test year.
MONTHLY RATE:
Group 1 - $0.00158 per kWh
Group 2 - $0.00145 per kWh
Effective October 1, 2019lssued June 28, 2019
ssued Avista
v Patrick Ehrbar, Director of Regulatory Affairs
l.P.U.C. No.28
lssued by Avista Corporation
By
Second Revision Sheet 75
Canceling
First Revision Sheet 75
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 75
FIXED COST ADJUSTIVIENT N/IECHANISTU _ ELECTRIC
PURPOSE:
This Schedule establishes balancing accounts and implements an annual Fixed
Cost Adjustment ("FCA") rate mechanism that separates the recovery of the
Company's Commission authorized revenues from kilowatt-hour sales to
customers served under the applicable electric service schedules.
TERM:
The term of the FCA mechanism is four years, effective January 1,2016 through
December 31,2019.
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This schedule shall be applicable to all retail customers taking service
under Schedules 1, 11, 12, 21, 22, 31, and 32. This Schedule does not apply to
Extra Large General Service Schedule 25, Extra Large General Service to
Cleanryater Paper Schedule 25P, or to Street and Area Light Schedules 41 through
49.
Applicable Customers will be segregated into two (2) distinct Rate Groups
Group 1-Schedule 1
Group 2 - Schedules 1 1, 12, 21, 22, 31, 32
Nofe - the recovery of incremental revenue related to fixed production and
fransmission cosfs will be excluded for new naturatgas customers added after the
FCA Base test year.
MONTHLY RATE:
Group 1 - ($9S0{+6) per kWh
Group 2 - $030056 per kWh
lssued June 29, 2018 Effective October 1,2018
Patrick Ehrbar, Director of Regulatory Affairs
l.P.U.C. No.28
Third Revision Sheet 75
Canceling
Second Revision Sheet 75
lssued by Avista Corporation
By
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 75
FIXED COST ADJUST]VIENT MECHANlSM _ ELECTRIC
PURPOSE:
This Schedule establishes balancing accounts and implements an annual Fixed
Cost Adjustment (.FCA") rate mechanism that separates the recovery of the
Company's Commission authorized revenues from kilowatt-hour sales to
customers served under the applicable electric service schedules.
TERM:
The term of the FCA mechanism is four years, effective January 1,2016 through
December 31,2019.
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This schedule shall be applicable to all retail customers taking service
under Schedules 1, 11, 12, 21, 22, 31 , and 32. This Schedule does not apply to
Extra Large General Service Schedule 25, Extra Large General Service to
Cleanruater Paper Schedule 25P, or to Street and Area Light Schedules 41 through
49.
Applicable Customers will be segregated into two (2) distinct Rate Groups
Group 1-Schedule 1
Group 2 - Schedules 1 1, 12, 21,22, 31, 32
Nofe - the recovery of incremental revenue related to fixed production and
fransmission cosfs will be excluded for new electric customers added afterthe FCA
Base test year.
MONTHLY RATE:
Group 1 - $0.00158 per kWh
Group 2 - $0.00145 per kWh
lssued June 28, 2019 Effective October1,2019
Patrick Ehrbar, Director of Regulatory Atfairs
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
AVISTA TJTILITIES
CASE NO. AVU-E-19-O-I
EXHIBIT B
FCA Rate Calculation
October 1,2019 - September 30, 2020
Electric Service
June 28, 2019
Avista Utilities
Calculation of Fixed Cost Adjustment (FCA) Surcharge or Rebate Amortization Rates
Effective October 1,2019 - September 30,2020
Line
No.
1
2
3
4
5
6
7
8
9
10
t7
72
13
t4
Date
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
iun-20
Jul-20
Aug-20
Sep-20
ldaho Residential Electric
Unamortized
Balance (1) lnterest (2)
0.001s6 2.00%
S1,855,202
S1,726,s0s 52,e82
s1,ss4,ss6 52,732
51,338,444 52,409
s1,131,989 s2,057
s964,268 5t,74s
s796,2s6 s1,466
s655,866 $1,209
Sszgtsq Ss87
5407,279 5780s264,009 sSSgs130,130 s:z8s17,378 s123
Forecast Usage
84,55t,640
112,177,502
140,330,082
133,902,9ss
108,828,91s
108,83s,302
90,932,765
8t,621,222
79,L52,235
92,364,338
86,185,626
72,486,454
s17,378 t,t97,379,O3615 Annual Total
lncremental Rate to Recover Estimated lnterest
Estimated Rate to Recover Deferral Balance
Rate before Gross-up for Revenue-related items
Times: Gross-up for Revenue-related items (3)
Preliminary Proposed FCA Rate
3% Test Rate Adjustment (4)
Final Proposed FCA Rate
Adjusted for Revenue Related Expenses
Estimated Carryover Balance due to 3% test (5)
16
t7
18
19
20
2L
22
23
24
s0.00001
s0.001s6
s0.001s7
L.00s872
s0.001s8
$o.ooooo
s0.001s8
s0.001s7
So
Surcharge Rate
Amortization Rate
Notes
(1) Deferral balance at the end of the month, Rate of 50.00156 to recover the September 2019
balance of S1,855,202 over 12 months. See page 2 and 5 of Exhibit B for September 2019
balance calculation.
l2l lnterest computed on average balance between beginning and end of month at the present
IPUC Consumer Deposit rate. The IPUC Consumer Deposit rate is updated annually.
http://www. puc. ida ho.eov/electric/34204. pdf
(3) avu-r-r7-01 conversion factor, see page 7 of Exhibit B.
(4) see page 6 of Exhibit B for 3% test adjustment calculations.
(5) see page 2 of Exhibit B for estimated carryover balance calculations.
EXHIBIT B Page 1 of 8
Line
No.
Avista Utilities
Calculation of Fixed Cost Adjustment (FCA) Surcharge or Rebate Amortization Rates
Effective October 7,2079 - September 30, 2020
ldaho Residential Electric
Calculate Estimated Monthly Balances through September 2020
Consumer Deposit
Ending Balance lnterest Rate Amortization
2.O0%
Dec-18 5t,753,478Jan-19 St JSA,qOt 52,922Feb-19 S1,7s9,328 52,927
Mar-19 $L,762,260 52,932
Apr-19 5L,765,!97 52,937May-19 51,768,139 52,942Jun-19 st,77t,086 52,947
Jul-19 s1,774,038 52,952
Aug-19 s1,776,995 $2,957
Sep-19 57,779,956 52,962
prior year carryover S 75,24;5
oct-19 st,72s,23} sZ,SS6 s132,827
Nov-19 s1,ss1,7s3 s2,729 sttS,ZOA
Dec-19 57,333,728 52,403 5220,427Jan-20 S!,12s,444 52,048 5270,332
Feb-20 s9s6,232 s1,733 st70,946
Mar-20 $786,727 S1,4s1 S170,9s6Apr-20 S54s,084 St,t92 S14z,szsMay-20 5577,844 SS0S 5128,209Jun-20 5394,273 5759 5124,330Jul-20 szqg,tz, ss36 s14s,084Aug-20 s114,6s1 s303 s13s,378Sep-20 5887 596 5113,850
Total S43,ss3 S1,871,390
1
2
3
4
5
6
7
8
9
10
11
12
13
74
15
t6
t7
18
19
20
2t
22
23
24
Summary
25 2018 Deferred Revenue
26 Add Prior Year Carryover Balance
27 Add lnterestthrough 09/30/2020
28 Add Revenue Related Expense Adj
29 Total Requested Recovery
30 Customer Surcharge Revenue
31 Carryover Deferred Revenue
sL,7s3,478
57s,24s
s43,ss3
S1o,1o2
s1,882,379
s1,882,379
So
EXHIBIT B Page 2 of 8
Avista Utilities
Calculation of Fixed Cost Adjustment (FCA) Surcharge or Rebate Amortization Rates
Effective October L,2019 - September 30,2020
Line
No.
1
2
3
4
5
6
7
8
9
10
11
72
13
t4
15
16
L7
18
19
20
27
22
23
24
Date
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
ldaho Non-Residential Electric
Unamortized
Balance (1) lnterest (2)
0.00143 2.00o/o
51,510,757St,zsz,tzs 52,4L857,269,236 52,2L7Sr,rzg,sos 51,997s993,7s1 sr,ZSA5877,293 S1,ss8s7s3,920 s1,3s8$640,427 sr,r6rss2s,782 sgZrs406,892 $777Szst,Pq Sssr5131,390 S:szis,zqt St2z
Forecast Usage
83,775,864
88,868,979
99,289,847
96,564,983
82,771,63L
87,481,652
80,413,727
81,087,965
83,929,200
98,42t,393
95,43L,637
87,547,534
S$,zqt 1,0s9,584,405Annual Total
lncremental Rate to Recover Estimated lnterest
Estimated Rate to Recover Deferral Balance
Rate before Gross-up for Revenue-related items
Times: Gross-up for Revenue-related items (3)
Preliminary Proposed FCA Rate
3% Test Rate Adjustment (4)
Final Proposed FCA Rate
Adjusted for Revenue Related Expenses
Estimated Carryover Balance due to 3% test (5)
So.ooool
$0.00143
s0.00144
1.005872
So.oo14s
s0.00000
So.oo14s
So.oo144
So
Surcharge Rate
Amortization Rate
Notes
(1)
(21
Deferral balance at the end of the month, Rate of 50.00143 to recover the September 2079
balance of 51,510,757 over 12 months. See page 4 and 5 of Exhibit B for September 2019
balance calculation.
lnterest computed on average balance between beginning and end of month at the present
IPUC Consumer Deposit rate. The IPUC Consumer Deposit rate is updated annually.
http://www.puc. idaho.pov/electric/34204. pdf
AVU-E-17-01 conversion factor, see pageT of Exhibit B.
See page 6 of Exhibit B for 3% test adjustment calculations.
See page 4 of Exhibit B for estimated carryover balance calculations.
(3)
(4)
(s)
EXHIBIT B Page 3 of 8
Avista Utilities
Calculation of Fixed Cost Adjustment (FCA) Surcharge or Rebate Amortization Rates
Effective October L,2019 - September 30,2020
Line
No.
ldaho Non-Residential Electric
Calculate Estimated Monthly Balances through September 2020
Consumer Deposit
Ending Balance lnterest Rate Amortization
2.00%
1
2
3
4
5
6
7
8
9
10
t1
72
13
74
15
16
t7
18
19
20
2L
22
23
24
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
prior year carryover
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
5t,42t,402
$!,423,771
st,426,144
51,428,s21
s1,430,902
s7,433,286
$t,43s,67s
S1,438,068
St,qqo,qos
5L,442,966
67,892
5L,392,296
5L,266,402
5L,12s,263
5987,82t
Sszo,oso
574s,287
s630,513
Ssr+,szs
s394,34s
s2s3,007
5715,746
($1,713)
Sz,ssg
52,373
52,377
s2,381
s2,38s
s2,38e
s2,3e3
52,3s7
s2,401
s
52,304
s2,274
s1,991
Sr,zsg
5t,sqt
s1,34s
Sr,r+o
sss3
57s7
Sssg
s3o7
Sgs
5120,766
s128,108
s143,130
5739,202
Srrs,srs
s126,108
Srrs,grg
$116,891
s120,987
s141,878
s137,s68
s117,ss4
Total $36,427 5L,527,428
Summary
25 2018 Deferred Revenue St,qZt,qOZ
26 Add Prior Year Carryover Balance 567,892
27 Add lnterest through 09130/2020 536,42L
28 Add Revenue Related Expense Adj. 510,683
29 Total Requested Recovery 51,536,397
30 Customer Surcharge Revenue Sf,SS0,gSZ
31 Carryover Deferred Revenue S0
EXHIBIT B Page 4 of 8
Avista Utilities
Fixed Cost Adjustment (FCA) Prior Surcharge or Rebate Amortization
Effective October L,2018 - September 30, 2019
Residential Electric Rebate
Line No. Date
Regulatory
Liability Beginning
Balance
Regulatory
Liability Ending
Balance
June - Sept
Forecast
Usage
June - Sept
Forecast
Usage
lnterest Amortization
I nterest
Rate
t
2
3
4
5
6
7
8
9
10
TL
L2
Oct-18 S
Nov-18 S
Dec-18 S
Jan-19 S
Feb-19 S
Mar-19 S
Apr-19 S
May-19 S
Jun-19 S
Jul-19 S
Aug-19 S
Sep-19 S
Oct-18 S
Nov-18 S
Dec-18 S
Jan-19 S
Feb-19 S
Mar-19 S
Apr-19 S
May-19 S
Jun-19 S
Jul-19 S
Aug-19 S
Sep-19 S
(1,976,331.16)
(1,850,293.16)
(1,661,450.38)
(1,430,402.17)
(1,207,788.70)
(984,263.57)
(783,775.50],
(633,132.45)
(502,955.37)
(363,511.39)
(202,442.831
(51,409.65)
669,052.79
614,088.94
564,390.68
513,687.70
462,687.50
409,588.80
363,167.09
376,!27.78
270,207.57
221,909.72
167,259.98
Lt3,407.L4
(s1,s93.76) s
(s1,462.62) s
(51,287.74) 5
(s2,196.15) s
(s1,824.69) s
(51,472.1,41 5
(s1,779.77) s
(Ss+s.ss1 5
(Szzr.+s1 5
$471.24) 5
(s211.37) s
s1e.8s s
r27,631,.76 s
190,305.40 s
232,335.95 s
225,409.63 s
224,749.82 s
201,,960.21, s
151,822.82 s
131,123.03 s
140,165.43 s
161,539.80 s
151,244.55 s
726,634.95 s
1,850,293.16)
1,661,450.38)
1,430,402.77l,
L,207,L88.70],
(984,263.57)
(783,775.501
(633,132.45)
(502,955.37)
(363,511.39)
(202,442.831
(51,409.65)
75,245,15
80,094,530
92,308,455
86,425,460
72,362,83t
1,.00%
7.00%
7.000/o
2.OO%
2.00%
2.OOo/o
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
Regulatory Asset
Date Beginning Balance
Non-Residential Electric Surcharge
I nterest
Regulatory Asset lnterest
Amortization Ending Balance RateLine No.
13
14
15
16
L7
18
19
20
2t
22
23
24
5s34.42 S
s4e0.83 s
s44e.01 s
5812.s7 S
$726.2e s
s643.43 s
ss6s.61 s
s488.21 s
s40e.76 s
5324.04 S
s233.6s s
s1so.e6 s
(55,498.27l
(50,189.09)
(51,151.99)
(51,813.17)
(53,824.99)
(47,065.741
(47,604.921
(46,408.48)
(48,707.551
(54,973.78)
(54,086.53)
(45,665.19)
614,088.94
564,390.68
5!3,687.70
462,687.50
409,588.80
363,t67.09
316,727.78
270,207.57
221,909.72
167,259.98
773,407.14
67,89t,91
t.oo%
1,.00%
7.00%
2.00%
2.00%
2.OOo/o
2.00%
2.00%
2.OO%
2.00o/o
2.00%
2.00%
s
s
s
5
s
s
s
S
s
s
s
s
EXHIBIT B
86,977,760
98,767,469
95,583,087
8t,546,773
Page 5 of 8
Line No
Revenue From 20L8 Normalized Loads and
Customers at Present Billing Rates (Note 1)
October 2019 - September 2020 Usage
Proposed FCA Recovery Rates
Present FCA Recovery Rates (Note 2)
lncremental FCA Recovery Rates
lncrementa I FCA Recovery
lncremental Surcharge %
3% Test Adjustment (Note 3)
3% Test Rate Adjustment
Adjusted Proposed FCA Recovery Rates
Adjusted lncremental FCA Recovery
Adjusted lncremental Surcharge %
Avista Utilities
Fixed Cost Adjustment (FCA) 3% Test
2018 ldaho Electric Deferrals
Residential
s108,369,000
1,191,379,036
s0.001.s8
s0.00000
s0.001s8
5L,882,379
1.74%
so
so.o00oo
s0.001s8
5r,992,379
L.74%
Non-Residential Total
s94,458,000 s202,836,000
1,059,584,405
So.oor+s
So.oooso
so.oo089
Sgq:,ogo 52,825,409
L.OO%
SO
s0.00000
s0.0014s
s943,030 52,925,409
t.oo%
1
2
3
4
5
6
7
8
9
10
1L
12
Notes
(1) Total 2018 weather normalized billing determinants priced at the billing rates effective since
041O7/20L9. Source, AVU-E-19-04 Exhibit 12, Schedule 3 Revenue at Present Billing Rates
(2) As stated on tariff Sheet 75C, the reversal of a rebate rate is not included in the 3% incremental
surcharge test. Therefore the Residential Group L rebate of -50.00176 is 50.00000 in this incremental
rate calculation.
(3) Any carryover balances will differ from the 3% adjustment amounts due to the revenue related
expense gross up combined with additional interest on the outstanding balance during the
amortization period.
EXHIBIT B Page 6 of 8
No.
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Electric System
TWELVE MONTHS ENDED DECEMBER 3I,20I6
Line
Description
Revenues
Expense:
Uncollectibles
J Commission Fees
4
5
Idaho Income Tax
Total Expense
6 Net Operating Income Before FIT
7 Federal Income Tax @2lYo
8 REVENUECONVERSIONFACTOR
AVU-E-17-01 Settlement Conversion Factor with Tax Reform
Gross Up Factor
Factor
1.000000 1.000000
0.003s63 0.003s63
0.002275 0.002275
0.047973
0.057102 0.005838
0.942898 0.994162
0. r 98009
0.612884 0.994162
1.005872
2
9
EXHIBIT B Page 7 of 8
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
AVISTA UTILITIES
CASE NO. AVU-E-19-o'-t
EXHIBIT C
FCA 2018 Deferred Revenue Calculation
Electric Service
June 28, 2019
L
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Sumcost
Scenario: AVU-E-17-01 Settlement Case
Load Factor Peak Credit
Transmission By Demand 12 CP
(b) (c) (d)(e)(0
System
Description Total
Funciional Cost Components at Current Retum by Schedule
AVISTA UTILITIES
Revenue to Cost by Funclional Component Summary
For the Twelve Monhs Ended December 3'1, 2016
ldaho Jurisdiction
Electric Utility
(i) 0 (k)
Large Gen Extra Large Extra Large
SeNice Gen Seruice Seruice CP
Sch21-22 Sch 25 Sch 25P
(s)
Residential
SeNice
Sch 1
(h)
General
SeNice
Sch 1 1-12
(D
Pumping
Seryice
Sch 31-32
09t29t11
(m)
Street &
Area Lights
Sch 4'l-49
Production
Transmission
Distibution
Common
Total Curent Rate Revenue
1 15,41 1,512
25,526,273
60,065,371
45,579,844
45,464,829
10,215328
29.117,877
24,192,966
15,343.432 25,763,208 12,799,054 13,503,398 2j23J35 414,457
3,733,760 5,829,797 2,493,976 2,816,620 385,214 51,578
11,034,603 13,010,682 1,952.773 334,898 2,048,469 2,566,070
7,200,206 7,466,312 2.100j97 2,490,084 937,183 592,895
246,583,000 108,991,000 37,312,000 s2,070,000 r9,946,000 19,145,000 5,494,000 3,62s,000
6
7
8
I
10
11
12
13
14
15
16
17
18
19
20
21
Expressed as $/kWlt
Production
Transmission
Distribution
Common
Total Curent Melded Rates
Totrl Uniform Curent Cost
Expressed as $/kv!h
Production
Transmission
Distibution
Common
Total Curent Uniform Melded Rates
REvenuE !o Cost Ratio at Curent Rates
$0.03908
$0.00864
$0.02034
$0.01543
$0.03970
$0.00892
$0.02543
$0.02113
$0.03582
$0.00698
$0.00547
$0.00756
$0.03724
$0.00777
$0.00092
$0.00687
$0.04202
$0.01023
$0.03022
$0.01972
$0.03969
$0.00898
$0.02004
$0.01 150
$0.03516
$0.00638
$0.03392
$0.01552
$0.03106
$0.00386
$0.19229
$0.04443
$0.08350 $0.09518 $0.10219 $0.08021 $0.0s583 $0.0s280 $0.09097 $0.27164
Functional Cost Components at Unitorm Cunent Retum
Production 'l'l 5,204,61 5
Transmission 25.544,027
Distribution 60,062,042
Common 45,772,316
47,371,556
11,417 ,236
31,838,659
25,455,191
13,947,215 25,073,652
2,9s9,025 5,438,615
9,054,374 12,161,159
6,393,250 7,194,497
12,919,313
2,ss6,208
2,000,226
2,734,355
13,316,328
2,716,800
322,864
2,444,313
2,163,751
405,102
2,146,369
961,409
412,799
51,042
2,538,391
589,301
246,583,000 1 16,082,641 32,353,864 49,867,923 20,210,102 18,800,305 s,676,630 3,591,534
$0.03901
$0.00865
$0.02034
$0.01550
$0.04137
$0.00997
$0.02780
$0.02223
$0.03820
$0.00810
$0.02480
$0.01751
$0.03862
$0.00838
$0.01873
$0.01 108
$0.03616
$0.00715
$0.00s60
$0.00765
$0.03673
$0.00749
$0.00089
$0.00674
$0.03s83
$0.00671
$0.03554
$0.01592
$0.03093
$0.00382
$0.19021
$0.04416
$0.08350
L00
$0.10137
0.94
$0.08861
1.15
$0.07682
1.04
!u.u5b5/
0.99
$0.05185
1.02
$0.09400
0.97
s0.26913
1.01
23
24
26
Funclional Cost Components at Proposed Retum by Schedule
Production 1 19,320,405
Transmission 27,802,692
Distribution 64,757,699
Common 47,592,204
47,123,397
I 1,260,910
31,484,748
25,290,94s
15,867,464 26,643,703
4,024,562 6329347
1 1,777,888 14,095,542
7,503,085 7,813,408
13,155,1 19
2,678,256
2,093,288
2,801,337
13,91 1,500
3,034,405
361,1 53
2,589,941
2,195,408
420,607
2,222,692
980,294
423,815
54,604
2,722,388
613,193
Totrl Proposed Rate Revenue
as $/kwt)
Disfibulion
Common
Total Proposed Melded Rates
Total Uniform Cost
Expressed as $/k\,\41
37 Production
38 Transmission
39 Disfibution
40 Common
41 Total Uniform Melded Rates
2s9,473,000 1 15,160,000 39,173,000 54,882,000 20,728,000 19,897,000 5,819,000 3,814,000
$0.01612 $0.02209 $0.02055 $0.01204 $0.00784 $0.00714 $0.01623 $0.04595
$0.08787 $0.10057 $0.10729 $0.08454 $0.05801 $0.05488 $0.0963s $0.28580
29
30
31
32
JJ
34
36
Funclional Cost Components at Unilorm Requested Return
Production 119,145,838
Transmission 27,829,800
Distribution 64,726,473
Common 47,770,888
48,992,167
12,438,891
34,151,369
26,528,044
14,424,358
3,223,810
9,731,157
6,669,029
25,931,438
5,925,282
13,218,042
7,532,641
13,361,291
2,784,947
2,174,641
2,859,896
'13,771,888
2,959,909
352,172
2,555,782
2,237,774
441,352
2,324,810
1,005,564
426,922
55,609
2,774,282
619,932
259,473,000 122,110,472 34,048,353 52,607,404 21,180,77s 19,639,751 6,009,500 3,876,745
$0.04035
$0.00942
$0.02192
$0.01618
$0.04278
$0.01086
$0.02982
$0.02317
$0.03951
$0.00883
$0.02665
$0.01827
$0.03994
$0.00913
$0.02036
$0.01 160
$0.03740
$0.00779
$0.00609
$0.00800
$0.03798
$0.00816
$0.00097
$0.00705
$0.03705
$0.00731
$0.03850
$0.01665
$0.03199
$0.00417
$0.20789
$0.04645
$0.08787
42 Revenue to Cost Ratio at Proposed Rat6s 1.00
43 Cunent Revenue to Prcposod Cost Ratio 0.95
44 Target Rovenue lncreale 12,890,000
File: AVU-E-17-01/ lDElec Setuement CoS LF PC Method/ Sumcost Exhibits
CASE NO. AVU.E.17.O1 SETTLEMENT STIPULATION APPENDIX B
$0.10663
0.94
0.89
13,120,000
$0.09325
1.15
1.10
(3,264,000)
$0.08104
1.04
0.99
537,000
$0.05928
0.98
0.94
r,235,000
$0.05417
1.01
0.97
495,000
$0.09951 $0.29050
0.97 0.98
0.91 0.91
515,000 252,000
Page 2 ol 42018 Rate Year
EXHIBIT C Page 6 of 72
Page 4 - Cost of Service
1.1.2018 Authorized FCA Base
27
28
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Transmission
s0.01316
30.0'r'r02
$0.03837
30.00837
$0.04041 $0.04fi5
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Sumcost
Scenario: AVU-E-1 7-01 Settlement Case
Load Factor Peak Credit
Transmission By Demand 12 CP
(b) (c) (d)(e)0
SYstem
Description Total
Functional Cost Components at Curent Roturn by Schedule
Production 115,411,512
Transmission 25,526,273
Distribution 60,065,371
Common 45,579,844
AVISTA UTILITIES
Revenue to Cost by Functional Component Summary
For the Twelve Months Ended December 31 , 201 6
ldaho Jurisdiction
Electric Utility
(i)OG)
Large Gen Extra Large Extra Large
Service Gen Service Service CP
Scn1-z2 Sch 25 Sch 25P
(s)
Residential
Service
Sch 'l
(h)
General
Service
Sch 11-'12
0)
Pumping
Service
Sch 31 -32
09t29117
(m)
Street &
Area Lights
Sch 4'1-49
1
2
3
4
5
45,464,829
10,215,328
29,117,877
24,1 S2,966
15,343,432
3,733,760
I 1,034,603
7,200,206
25,763,208
5,829,797
13,010,682
7,466,312
1 2,799,054
2,493,976
1,952,773
2,700,197
1 3,503,398
2,81 6,620
334,898
2,490,084
2,123,135
385,21 4
2,048,469
937,183
414,457
51,578
2,566,070
592,895
Total Cunent Rate Revenue
Expressed as $/kWh
Production
Transmission
Distribution
Common
Total Cunent Melded Rates
Total Llnifom Current Cost
Expressed as $/kwh
Production
Transmission
Distribution
Common
Total Cunent Unilorm Melded Rates
246,583,000 108,991,000 37,312,000 52,070,000 19,946,000 19,145,000 5,494,000 3,625,000
6
7
8
o
10
11
12
13
14
15
$0.03908
$0.00864
$0.02034
$0.01543
$0.03970
$0.00892
$0.02s43
$0021I3
$0 04202
$0.01023
$0.03022
$0.01972
$0.03969
$0 00898
$0.02004
$0.01 1 50
$0.03582
$0.00698
$0.00s47
$0.00756
$0.03724
$0.00777
$0.00092
$0.00687
$0.0351 6
$0 00638
$0.03392
$0.01 552
$0.03106
$0.00386
$0.1 9229
$0.04443
$0.08350 $0.09518 $0.10219 $0.08021 $0.05583 $0.05280 $0 09097 $0 27164
Functional Cost Components at Uniform Curent Retumproduction I 15,204,615
Transmission 25,544,027
Distribution 60,062,042
Common 45,772,316
47,371,556
11,417,236
31,838,659
25,455,'19'1
13,947,215 25,073,6s2
2,959,025 s,438,6'15
9,054,374 12,161,159
6,393,250 7,194.497
'12,919,313
2,556,208
2,000,226
2,734,355
'13,316,328
2,71 6,800
322,864
2,444,313
2,163,751
405,102
2,'146,369
961,409
412,799
51,042
2,538,391
589,301
246,583,000 1 1 6,082,641 32,353,864 49,867,923 20,210,102 1 8,800,305 5,676,630 3,591,534
16
17
18
19
20
$0.03901 $0.04137
$0.0086s $0.00997
$0.02034 $0.02780
$0.01550 $0.02223
$0.03820
$0.0081 0
$0.02480
$0.01 751
$0.03862
$0 00838
$0.01 873
$0.01 1 08
$0,0361 6
$0,0071 5
$0,00560
$0.00765
$0.03673
$0.00749
$0.00089
$0.00674
$0.03s83
$0.00671
$0.03554
$0.01592
$0.03093
$0.00382
$0.1 9021
$0 0441 6
21 Revenue to Cost Ratio at Curent Rates
$0.08350
1.00
$0.1 01 37
0.94
$0.0886'1
1.15
$0.07682
1.04
$0.05657
0.99
$0.05185
1.02
$0.09400
0.97
$0.26913
1.01
Functional Cost Components at Proposed Retum by Schedule
22
t3
24
)q
26
Production
Transmission
Distributton
Common
Total Proposed Rate Revenue
as $/kwh
Distribution
Common
Total Uniform Cost
Expressed as $/kwh
Production
Transmission
Distribution
Common
Total Unilorm lllelded Rates
Revenue lo Cost Ratio at Pmposed Rates
Curent Revenue to Proposed Cost Rstio
Target Revenue lncrease
'1 19,320,405 47 123397
27,802,692 11,260,910
64,757,699 31,4U,748
47,592,204 2s,290,945
15,867,464 26,643,703
4,024,562 6,329,347
11,777,888 14,095,542
7,503,085 7,813,408
1 3,1 55,1 1 9
2,678,256
2,093,288
2,801,337
1 3,91 1,500
3,034,405
361,153
2,589,941
2,195,408
420,607
2,222,692
980,294
423,815
54,604
2,722,388
613,'193
29
30
JI
32
34
35
36
37
38
?o
40
41
42
43
44
259,473,000 115,160,000 39,173,000 54,882,000 20,728,000 19,897,000 5,819,000 3,814,000
$0.01612 $0.02209 $0 0205s $0.01204 $0.00784 $0.00714 $0.01623
$0.20400
$0.04595
$0 100s7 $0.10729 $0.08454 $0.05801 $0.05488 $0.0963s $0.28580Total Proposed Melded Rates $0,08787
Functional Cost Components at Uniform Requested Retum
Production 119,145,838
Transmission 27,829,800
Distribution U,726,473
Common 47,770,888
71
48,992,167 14,424,358 25,931,438
'12,438,891 3,223,810 5,925,282
34,151,369 9,731,157 13,218,042
26,528,044 6,669,029 7,532,641
'13,361,291
2,784,947
2,174,641
2,859,896
1 3,771 ,888
2,959,909
352,172
2,555,782
2,237,774
441,352
2,324,810
1,005,564
426,922
55,609
2,774,282
61 9,932
2s9,473,000
$0.04035
$0.00942
$0.021 92
$0.01618
$0.04278
$0.01 086
$0.02982
$0.0231 7
$0.039s1
$0 00883
$0.02665
$0.01 827
$0.03994
$0.0091 3
$0,02036
$0.01 1 60
$0.03740
$0.00779
$0,00609
$0.00800
$0.03798
$0.00816
$0.00097
$0.00705
$0.0370s
$0,00731
$0.03850
$0.0166s
$0.031 99
$0.0041 7
$0.20789
$0.04645
122,110,472 34,048,353 52,607,404 21J80,715 19,639,751 6,009,500 3,876,745
$0.08787
1.00
0.9s
12,890,000
$0.1 0663
0,94
0.89
13,120,000
$0.09325 $0.08104 $0.05928
1.15 1 .04 0.98
r.'r0 0.99 0.94
(3,264,000) 537,000 r,23s,000
2018 Rate Year
$0.09951 $0.29050
0.97 0.98
0.91 0.94
515,000 252,000
Page 2 of 4
$0.05417
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0.97
495,000
File: AVU-E-17-0'1/ lDElec Settlement COS LF PC Method/ Sumcost Exhibits
CASE NO. AVU.E.I7.()1 SETTLEMENT STIPULATION APPENDIX B WITH SCHEDULE 72
EXHIBIT C Page Ll of t2
Page 4 - Cost of Service
6.1.2018 Authorized FCA Base
27
28
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Transmission
$0.03635
$0.00696
$0.03176
$0.00409102
$0.04104 $0.03682 $0.03837
$0.00941 $0.00983
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