20190730Application.pdf

Avista Corp.
141 I East Mission P.O.Box3727
Spokane. Washington 99220-37 27
Telephone [phone]
Toll Free 800-727-9170
REC E IVE D
iillg JUL 30 AH l0: 02
ii'.',i-ji: i'UELiCJIILiiiES COMMISSION
A,htnstfr
Corp.
July 29,2019
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise, Idaho 837 02-5983
RE: Case No. AVU-E-l9- 0t
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 [phone].
Sincerely,
Vgur^-
Patrick Ehrbar
Director of Regulatory Affairs
Enclosures
I DAVID J. MEYER2 VICE PRESIDENT AND CHIEF COUNSEL FOR
3 REGULATORY AND GOVERNMENTAL AFFAIRS
4 AVISTA CORPORATION5 I4I1 E. MISSION AVENUE6 P. O. BOX 31277 SPOKANE, WASHINGTON 992208 PHONE: [phone], FAX: [phone]
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF THE RESIDENTIAL )
AND SMALL FARM ANNUAL RATE )
ADJUSTMENT FILING OF )
AVTSTA CORPORATION )
I. INTRODUCTION
CASE NO. AVU-E-19-g_g
APPLICATION OF AVISTA
CORPORATION
20 In accordance with Idaho Code $61-502 and RP 052, Avista Corporation, doing
2l business as Avista Utilities (hereinafter "Avista" or "Company"), dt 1411 East Mission
22 Avenue, Spokane, Washington, respectfully makes application to the Idaho Public Utilities
23 Commission ("Commission") for an order authoizingAvista to implement Residential and
24 Small Farm Energy rates for electric service from October 7,2019 through September 30,
25 2020. The proposed Residential and Small Farm Energy Rate Adjustment credit rate for
26 rate schedules 1, 12, 22,32, and 48 is 0.3870 per kilowatt-hour. The credit rate represents
27 a $3.9 million decrease to qualifying customers. The Company has requested an October
28 1,2019 effective date.
AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE
ADJUSTMENT FILING PAGE I
1 The Company requests that this filing be processed under the Commission's
2 Modified Procedure Rules (RP 201 -204). Communications in reference to this Application
3 should be addressed to:
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David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
Avista Corporation
P.O.Box3727
MSC-27
l4l I E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
David. Meyer@avistacorp. com
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Patrick Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O.Box3727
MSC-27
l4l I E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
P at. ehrbar @avi stacorp. c om
II. BACKGROUND
26 The electric Residential and Farm Energy Rate Adjustment results from an
27 Agreement between the Company and Bonneville Power Administration (BPA). The
28 Residential Exchange Program provides a share of the benefits of the federal Columbia
29 River power system to the residential and small-farm customers of the six investor-owned
30 utilities of the Pacific Northwest, including Avista.
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AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE
ADJUSTMENT FILING PAGE 2
1 III. DRIVERS OF THE RESIDENTIAL AND SMALL FARM ENERGY RATE
2 ADJUSTMENT CREDIT
3 Under the current Residential Exchange rate adjustment, approximately $0.84
4 million annually is being passed through to applicable Idaho customers through a uniform
5 0.069(, per kilowatt-hour rate credit. This rate was approved by the Idaho Public Utilities
6 Commission effective October 1,2018 in Order No. 34155.
7 The proposed rate credit of 0.387(, per kilowatt-hour is designed to pass through
8 approximately $4.8 million which represents the Idaho portion of the annual level of BPA
9 benefits Avista will receive starting in October 2019. The level of BPA benefits is
10 approximately $3.8 million more than what is currently being passed back to customers in
11 rates today. That amount, however, is offset by an over-refunded balance from the prior
12 year of approximately $0.1 million, which is rolling off. The table below details the year
13 over year differences between the benefit included in current rates and the proposed benefit
14 included in this filing.
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t6 Idaho portion ofbenefit anrcunt
Estirnated over/(under) refunded bahnce
Revenue Conversion frctor
Revenue Requirenrent
2019
Proposed
s (4,740,287)
$ ( 1,228)
$ (27,844)
2018
Present
$ (921,570)
s 88,527
$ (4,891)
Change
$ (3,818,717)
s (89,755)
$ (22,953)
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17 s (4,769,359) S (837,934) $ (3,931,425)
l8 The Company is therefore proposing an overall decrease of $3.9 million or l.60/o
19 for qualifying customers. The change in rate credit has no effect on Avista's net income
AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATEADJUSTMENT FILING PAGE 3
I IV. PROPOSED RATES TO BE EFFECTIVE OCTOBER 1. 2OI9
2 The Company is proposing a per kilowatt-hour Residential and Small Farm Energy
3 Rate Adjustment credit rate of 0.387 (, for rate schedules l, 72, 22, 32, and 48 to become
4 effective October 1,2019. Attachment A to this Application provides the Residential and
5 Small Farm Energy Rate Calculation. Attached as Exhibit "A" is a copy of the proposed
6 tariff, Schedule 59, which contains the proposed Residential and Small Farm Energy rates
7 discussed earlier in this Application. Exhibit "A" also includes the proposed changes to
8 Schedule 59 in strike-out/underline format. Residential customers using an average of 898
9 kilowatt-hours per month would see their monthly bills decrease from $82.57 to $79.71, a
10 decrease of $2.86 per month, or 3.5oh.
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12 V. COMMUNICATIONS AND SERVICE OF APPLICATION
13 In conformance with RP 125, this Application will be brought to the attention of
14 the Company's customers. Included in this hling is the form of Press Release which will
15 be issued on July 30,2019, as well as the form of Customer Notice which will be included
16 in customer's bills beginning in early August 2019, and run for a full billing cycle.
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18 VI. REQUEST FOR RELIEF
19 The Company requests that the Commission issue an order approving a per
20 kilowatt-hour Residential and Small Farm Energy credit rate of 0.387(, for rate schedules
21 1,12,22,32, and 48 to become effective October 1,2019. The Residential and Small Farm
22 Energy credit represents a $3.9 million, or l.6oh, decrease to qualifying customers. The
AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE
ADJUSTMENT FILING PAGE 4
1 Company requests that the matter be processed under the Commission's Modified
2 Procedure rules through the use of written comments.
3 Dated at Spokane, Washington this 30th day of July 2019.
4 AVISTA CORPORATION
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BY d-2/o\yitfuil"vi, /
Vicf President and Chief Counsel for
Regulatory and Governmental Affairs
AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATEADJUSTMENT FILING PAGE 5
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VERIFICATION
srATE OF WASHINGTON )
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County ofSpokane )
David J. Meyer, 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.
SIGNED AND SWORN to before me this 30th day of July 2019, by David J.
Meyer
->a-Pugutc
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nq#
L3 ZI
N PUBLIC in and for the State of
w residing at Spokane.
Op
Commission Expires:
AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE
ADJUSTMENT FILING PAGE 6
L
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Case No. AVU-E-l9- or
Exhibit 6(A))
AVISTA CORPORATION
dba Avista Utilities
lssued: July 30, 2019 Effective: October 1,2019
l.P.U.C. No. 28
Nineteenth Revision Sheet 59
Canceling
hteenth 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 0.387d 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. !n
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 periodx24
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.
rssuedyr%?
Patrick Ehrbar - Director of Regulatory AffairsgJ*,L
AVISTA CORPORATION
dba Avista Utilities
LP.U.C. No. 28
Eighteenth Revision Sheet 59
Canceling
Seventeenth Revision Sheet 59
SCHEDULE 59
RESIDENTIAL AND FARM ENERGY RATE ADJUSTMENT - IDAHO
APPL!CABLE:
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 a!! 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 0S69# 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 x24
!n 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 by Avista Utilities
By Patrick Ehrbar - Director of Regulatory Affairs
lssued: July 30, 2018 Effective: October 1,2018
AVISTA CORPORATION
dba Avista Utilities
Nineteenth Revision Sheet 59
Canceling
l.P.U.C. No. 28 Ei hteenth Revision Sheet 59
SCHEDULE 59
RESIDENTIAL AND FARM ENERGY RATE ADJUSTTVIENT - 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.
IVIONTHLY 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 0.387d 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 by Avista Utilities
By Patrick Ehrbar - Director of Regulatory Affairs
lssued: July 30, 2019 Effective: October 1, 2019