20190730Application.pdf

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Avista Corp.
141 1 East Mission P.O.Box 3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
VIA OVERNIGHT MAIL
luly 29,2019
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise,ID 83702-5983
RE: Case No. AVU-E-lg-gil
Power Cost Adjustment (PCA) Annual Rate Adjustment Filing of Avista Corporation
Dear Ms. Hanian:
Enclosed for filing with the Commission is Avista's 2019 Power Cost Adjustment (PCA) annual
rate adjustment filing. The filing consists of an original and seven copies of Avista's Application
and nine copies of prefiled testimony and exhibits. Also enclosed are three copies of supporting
workpapers and documentation. A certificate of service, three copies of a customer notice, and
three copies of a press release are also enclosed. A computer readable copy of the testimonies,
exhibits, and workpapers, required under Rule 231.05, are included on an enclosed compact disc.
The Company is requesting that the Commission issue an order approving recovery of power costs
deferred for the period July I ,2018 through June 30, 2079, and approving a PCA rebate of 0.0580
per kilowatt-hour to be effective October 1,2019. Under the Company's proposal, the PCA rebate
rate for all customers, including residential customers, would decrease from a rate of 0.3601 per
kilowatt-hour to a rate of 0.0581 per kilowatt-hour, or a decrease in the rebate rate of 0.0268(, per
kilowatt-hour. Since PCA rate adjustments are spread on a uniform cents per kilowatt-hour basis,
the resulting percentage increase varies by rate schedule. The overall increase is approximately
$8.1 million or 3.3oh. Residential customers using an average of 898 kilowatt-hours per month would
see their monthly bills increase from $82.57 to $84.97, an increase of $2.40 per month, or 2.91o/o.
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Certain supporting documents are CONFIDENTIAL, rendering these documents exempt from
public inspection, examination and copying pursuant to Sections 74-l0l through 74-126 of the
Idaho Code. Avista believes that the identified CONFIDENTIAL supporting documents contain
valuable commercial information.
As such, Avista is submitting a separate electronic CD containing the electronic form of the
CONFIDENTIAL supporting documents, in compliance with Rule 067.02.b.
Please direct any questions regarding this filing to Annette Brandon at [phone] or myself
at [phone].
Patrick D. Ehrbar
Director of Regulatory Affairs
Enclosures
Aiiutsra
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have served Avista Corporation's Power Cost Adjustment
(PCA) Annual Rate Adjustment Filing by mailing a copy thereof, postage prepaid, to
the following:
Commission Secretary
ldaho Public Utilities Commission
472W. Washington St.
Boise, lD 83702-5983
Marv Lewallen
Cleanruater Paper
28530 W Canyon Creek Rd. - South
Wilsonville, OR 97007
Email: marv@marv. lewallen.com
(Excluding Confidential Information)
Dean J. Miller, Lawyer
3620 E. Wam Springs
Boise, lD 83701
Email: deanmiller@cableone. net
(Excluding Confidential lnformation)
Larry A Crowley
The Energy Strategies lnstitute lnc
5549 S. Cliffsedge Ave
Boise, lD 83716
Email: [e-mail]
(Excluding Confidential lnformation)
Peter J. Richardson
Richardson Adams PLLC
515 N. 27th Street
Boise, lD 83702
Peter. richardsonad ams. com
Ronald L. Williams
Willams Bradbury, P.C.
P.O. Box 368
Boise, lD 83701
ron@wi I I iamsb rad bu ry. com
Terry Borden
Cleanrvater Paper
601 W. RiversideAve. Suite 1100
Spokane, WA 99201
Terry. Borden@cleanuater paper.com
Dr. Don Reading
6070 Hill Road
Boise, ldaho 83703
dread ing@m indspring. com
Dated at Spokane, Washington this 29th day of July 2019
Z_
Paul Kimball
Manager Regulatory Compliance and Discovery
1 DAVID J MEYER2 VICE PRESIDENT AND CHIEF COUNSEL FOR3 REGULATORY & GOVERNMENTAL AFFAIRS
4 AVISTA CORPORATION5 141I E. MISSION AVENUE
6 P. O.BOX37277 SPOKANE, WASHINGTON 99220
8 PHONE: [phone], FAX: (s09) 49s-88sI
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSTON
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IN THE MATTER OF THE POWER COST )
ADJUSTMENT (PCA) ANNUAL RATE )
ADJUSTMENT FILING OF AVISTA )CoRPORATION )
CASE NO. AVU-E-I9- O?
APPLICATION OF AVISTA
CORPORATION
19 I. INTRODUCTION
20 In accordance with Idaho Code $61-502 and RP 052, Avista Corporation, doing
21 business as Avista Utilities (hereinafter "Avista" or "Company"), at 1411 East Mission
22 Avenue, Spokane, Washington, respectfully files its Power Cost Adjustment (PCA) annual
23 rate adjustment filing in the above referenced case. The Company requests the Commission
24 issue an order approving the level of power costs deferred rebate direction for thein the
25 period July 1, 2018 through June 30,2019, and approving a PCA rebate rate of 0.0581per
26 kilowatt-hour to be effective October 1,2019. The Company requests that this filing be
27 processed under the Commission's Modified Procedure Rules.
28 Communications in reference to this Application should be addressed to:
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 1
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David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
Avista Corporation
P.O.Box3727
MSC-27
l41l E. MissionAve
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]
David. Meyer@avistacorp. com
Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O.Box3727
MSC-27
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]
P atrick. Ehrb ar @av istacorp. co m
Electronically
Dockets@Avistacorp. com
II. BACKGROUND
Avista's PCA is used to track changes in revenues and costs associated with
variations in hydroelectric generation, secondary prices, thermal fuel costs, and changes in
power contract revenues and expenses. Avista's existing PCA methodology and method
of recovery were approved in Case No. AVU-E-07-01 by Order No. 30361 dated l:ur;re29,
2007. [n that case the Commission approved a change in the PCA methodology from a
trigger and cap mechanism to a single annual PCA rate adjustment filing requirement.
The Commission also approved a change in the method of the PCA deferral rate
adjustment from a uniform percentage basis, to a uniform cents per kilowatt-hour basis
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AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 2
1 effective with the October 1,2007 PCA rate change. By Order No. 32206 in Case No.
2 GNR-E-10-03 dated March 15,2011, the Commission modified the retail revenue credit
3 methodology and approved a Load Change Adjustment Rate based on the energy classified
4 portion of embedded production revenue requirement effective April l,20ll.
5 The Commission approved the following procedural schedule for administering the
6 annual PCA filings:
7 August I Company filing for prior July - June deferral period
8 September I Review and comments by Staff and other interested parties
9 October 1 Commission Order and effective date of PCA rate
l0 adjustment
l1 The present PCA rebate was made effective on October l, 2018. On July 30, 2018,
12 in Case No. AVU-E-18-07, Avista filed its annual PCA rate adjustment for the defenal
13 period July I ,2017 through June 30, 2018 and requested a PCA rebate rate of 0.326( per
14 kilowatt-hour, based on an overall rebate of approximately $9.8 million, effective October
15 1, 2018. That rebate will end on September 30,2019. The Commission approved that
16 application in Order No. 34159, dated September 28,2018.
17 The proposed PCA rate adjustment of 0.0581 per kilowatt-hour would rebate to
18 customers approximately $1.7 million effective October 1,2019. The rebate is primarily
19 associated with power supply costs that were lower than those included in retail rates, due
20 to lower wholesale electric and natural gas prices. The net effect of the expiring rebate, and
2l the proposed rebate, is an overall increase in revenue of approximately 3.3 percent, or $8.1
22 million.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 3
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1 III. DEFERRALS _ JULY 1. 2018 THROUGH JUNE 30. 2019
2 The amount of power cost deferrals for the period July 1, 2018 through June 30,
3 2019 is shown below, as well as interest for the same period. Company witness Mr.
4 Johnson's testimony provides an explanation of the factors causing the defenal entries for
5 the period. In addition, Company witness Mr. Dempsey provides some details regarding
6 outages experienced at our Coyote Springs II and Colstrip Units 3 & 4 generuting units.
7 Company witness Ms. Brandon's testimony addresses the deferral and interest amount.
Defenals (Juty 2018 - June 2019)
Interest
Total Deferral Balance
s (1,508,657)
$2 754s (l.sos.eo3)
9 Monthly reports have been filed with the Commission regarding actual PCA
l0 deferral entries to date. An additional copy of those reports for the months of July 2018
ll through June 2019 has been included with this filing and has also been provided to
12 Clearwater Paper Corporation and ldaho Forest Group.
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14 IV. PROP OCTOBER l,20l9
15 The Company is proposing a uniform cents per kilowatt-hour PCA rebate rate of
16 0.058p to be effective October 1,2019. See page I of Ms. Brandon's Exhibit No. AMB-I
17 for the calculation of the proposed rebate. Attached to this Application as Exhibit "A" is a
18 copy of the proposed tarifl Schedule 66, which contains the proposed PCA rebate rate.
19 Exhibit "A" also includes the proposed changes to Schedule 66 in strike out/underline
20 format. The proposed rebate is designed to rebate the following:
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4
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9 After applying the conversion factor related to commission fees and uncollectible
10 customer accounts, the resulting rebate of $1,746,190 is divided by forecasted kilowatt-
1 t hours to derive the proposed rebate rate of 0.05S1 per kilowatt-hour. I
12 Since PCA rate changes are spread on a uniform cents per kilowatt-hour basis, the
l3 resulting percentage increases vary by rate schedule. Page 1 of Ms. Brandon's ExhibitNo.
14 AMB-I shows the effect of the proposed PCA rebate by rate schedule. The overall
15 increase, after accounting for the expiration of the existing rebate, and the new rebate, is
16 $8.062.000. or 3.3%.
17 Residential customers using an average of 898 kilowatt-hours per month would see
l8 their monthly bills increase from $82.57 to $84.97, anincrease of $2.40 per month, or
19 2.91%.
I Total Balance for Amortization $1,735,996 divided by conversion factor 0.994162: $1,746,190
namortired Balance from Previous Deferrals (prior to July 1, 201 8)
Deferrals (July 2018 - June 2019)
Deferral Balance (1,505,903
2,320,577
TOTAL BALANCE FOR AMORTIZATION
Interest
$
s
$
Balance
$
$
$
1,735,
1 9-I20 9andInterest20September(July )
(2,550,6
2,754
(1,508,65
July 2018 - Jture 2019
$ (11,488,758)
s 9,040,814
$ (102,726)
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 5
I V. REOUEST FOR RELIEF
2 The Company requests that the Commission issue an order approving power costs
3 deferred for the period July 1, 2018 through June 30,2019, and approving a PCA rebate of
4 0.058P per kilowatt-hour to be effective October 1,2019. Under the Company's proposal,
5 the PCA rebate for all customers, including residential customers, would decrease from a
6 rebate rate of 0.326( per kilowatt-hour to a rebate rate of 0.058P per kilowatt-hour. Since
7 PCA rate adjustments are spread on a uniform cents per kilowatt-hour basis, the resulting
8 percentage increase varies by rate schedule. The overall increase is approximately $8.1
9 million or 3.3o/o. The Company requests that the matter be processed under the
10 Commission's Modified Procedure rules through the use of written comments.
11 Dated at Spokane, Washington this 29th day of July 2019.
12 AVISTA CORPORATION
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By:
David J
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 6
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VERIFICATION
STATE OF WASHINGTON )
)
County of Spokane )
David J. Meyer, being first duly sworn on oath, deposes and says: That he is the
Vice President and Chief Counsel for Regulatory & Governmental Affairs 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 29th day of July 2019, by David J
Meyer
I Xq'l"dn)I
I Commission Expires:
PUBLIC in and for the State of
residing at Spokane.
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Puguo
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 7
Case No. AVU-E-l9-
2019 Idaho PCA Filing
Exhibit cc
^')
l.P.U.C. No.28
Twenty-first Revision Sheet 66
Canceling
Twentieth Revision Sheet 66
Patrick Ehrbar - Director of Regutatory Atfairs
util
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT . IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs
MONTHLY RATE:
The energy charges of electric Schedules 1 , 11, 12, 21 , 22, 25, 25P,31 , 32, and
41-49 are to be decreased by 0.058P per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
19
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l.P.U.C. No.28
Twentieth Revision Sheet 66
Canceling
Nineteenth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TETVIPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21,22, 25, 25P,31, 32, and
41-49 are to be decreased by 93260 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 27,2018 Effective October 1,2018
By Patrick Ehrbar - Director of Regulatory Affairs
l.P.U.C. No.28
lssued by
By
Twenty-first Revision Sheet 66
Canceling
Twentieth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs
MONTHLY RATE:
The energy charges of electric Schedules 1,11,12,21,22,25,25P,31, 32, and
41-49 are to be decreased by 0.0580 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 30, 2019 Effective October 1,2019
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs