Loading...
HomeMy WebLinkAbout20190809Decision Memo.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY COMMISSION STAFF FROM:JOHN R. HAMMOND JR. DEPUTY ATTORNEY GENERAL DATE: AUGUST 9,2019 SUBJECT: AVISTA CORPORATION'S ANNUAL POWER COST ADJUSTMENT APPLICATION; CASE NO. AVU-E-19-09 On July 30,2019, Avista Corporation dba Avista Utilities ("Avista" or the "Company") filed its annual Power Cost Adjustment ("PCA") Application. The PCA is an annual adjustment mechanism that "tracks changes in revenues and costs associated with variations in hydroelectric generation, secondary prices, thermal fuel costs, and changes in power contract revenues and expenses" for the period of July 1,2018 through June 30, 2019. Application at 1-2. This year, the Company asks the Commission to approve a PCA rebate rate of 0.0581 per kilowatt hour ("kWh") to be effective October 1,2019. Id. at l. Under the Company's proposal, the PCA rebate rate for all customers, including residential customers, would be reduced from the current rebate rate of 0.326(, per kWh to 0.058/ per kWh or $1.7 million. Id at3. However, when the rebate is reduced it results in an overall increase in customer rates of 3.3%o. Id. Since PCA rate adjustments are spread on a uniform cents per kWh basis, the resulting percentage increase would vary by schedule. Residential customers using an average of 898 kWh per month would see their monthly bills increase from $82.57 to $84.97, an increase of $2.40 per month,or2.9l%o. Id.at5. TheCompanyrequeststhatitsApplicationbeprocessedunderModified Procedure. Id. a l. STAFF RECOMMENDATION Staff recommends that the case be processed by Modified Procedure, with comments due by September 11,2079 and the Company's reply due by September 18, 2019. DECISION MEMORANDUM I \Legal\ELECTRIC\AW-E- I 9-09\AVL'E I 909_decision memojrh docx 1 COMMISSION DECISION Does the Commission wish to process this case by Modified Procedure with a comment deadline of September 11, 2019 and a reply deadline of 18,2019? Hammond Jr., Attorney General DECISION MEMORANDUM I:\Le8al\ELECTRIC\AvIJ-E- I 9-09\AVUE I 909_decision memojrh docx 2