20190809Decision Memo.pdf

DECISION 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
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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
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