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HomeMy WebLinkAbout20190730Application.pdfAi,t-ttsta Avista Corp. 141 1 East Mission P.O.Box 3727 Spokane, Washington 99220-0500 Telephone 509-489-0500 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. . t'-s--: C.] , t..- G:-,, != 7FIn.' c.) C):i- a m;E*= na € E' u) -rL] { 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 (509) 495-4324 or myself at (509) 495-4620. 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: crowlvla@aol.com (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: (509) 495-8851, FAX: (s09) 49s-88sI 10 t1 t2 9 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSTON 13 l4 l5 16 17 18 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 I 2 J 4 5 6 7 8 9 l0 l1 t2 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: (509) 495-4316 Fax: (509) 495-8851 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: (509) 495-8620 Fax: (509) 495-8851 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 13 t4 15 t6 t7 18 l9 20 2l 22 23 24 25 26 27 28 29 30 31 32 JJ 34 35 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 8 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. 13 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 1 2 J 4 5 6 7 8 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 t3 t4 15 16 17 By: David J Vice President and Chief Counsel for Regulatory & Governmental Affairs AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 6 N L I 2 3 4 5 6 7 8 9 10 11 t2 13 t4 15 t6 t7 l8 t9 20 2t 22 23 24 25 26 27 28 29 30 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. tl zz[ zt I 2 3 r>a- 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 I Vg/*b^- 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