20200417Notice_of_Application_Order_No_34623.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34623 5
Office of the Secretary
Service Date
April 17, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE ELECTRIC LINE
EXTENSION SCHEDULE 51 RATE
ADJUSTMENT FILING OF AVISTA
CORPORATION
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CASE NO. AVU-E-20-02

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 34623

On March 10, 2020, Avista Corporation (the “Company”) applied for authority to
revise Electric Line Extension Schedule 51. The Company proposes to update its costs to extend
electric lines to new customers, and the allowance that customers can apply to offset those costs.
The Company also proposes administrative changes to Schedule 51. The Company has requested
a July 1, 2020, effective date, and that its Application be processed by Modified Procedure.1
With this Order, we provide notice of the Application and set comment and reply
deadlines.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that with this Application, the Company proposes to
revise Schedule 51 to update the average cost for facilities like transformers and conduit that are
used to extend electric lines. Id. The Company would use the updated costs to increase allowances
customers can apply against the costs to extend new residential, commercial, and industrial service.
Id. at 3-4. Any costs exceeding an allowance would be paid by the customer as a Contribution in
Aid of Construction. Id. The Company’s proposed changes to the allowances by service schedule
are, in summary:

1 The Company originally requested a May 1, 2020, effective date but after discussions with Staff concerning the
current workplace challenges faced by both the Company and the Commission the decision was made to amend the
requested effective date to July 1, 2020.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34623 5

Service Schedule

Present
Allowance
Proposed
Allowance
Sched. 1 Individual Customer (per unit) $1,840 $1,900
Sched. 1 Duplex (per unit) $1,470 $1,520
Sched. 1 Multiplex (per unit) $1,105 $1,140
Sched. 11/12 (per kWh) $0.15022 $0.15486
Sched. 21/22 (per kWh) $0.13853 $0.14218
Sched. 31/32 (per kWh) $0.24653 $0.24688

YOU ARE FURTHER NOTIFIED that the Company proposes to update its
primary, secondary, service and transformer average costs as follows:

Present Proposed % Change
Overhead Primary Circuit
Fixed Cost $ 4,253 $ 4,205 -1.1%
Variable Cost $ 8.38 $ 8.22 -1.9%

Underground Primary Circuit
Fixed Costs
Variable Costs

Underground Secondary Circuit
Fixed Costs
Variable Costs

Overhead Secondary Circuit
Fixed Costs

Overhead Service Cir.
Underground Service

Overhead Transformer
Padmount Transformer

$ 1,854
$ 11.23

$ 418
$10.42

$ 1,774

$ 3.91
$ 9.41

$ 2,310
$ 3,507

$ 1,934
$ 11.34

$ 428
$10.47

$ 1,732

$ 3.74
$ 9.54

$ 2,242
$ 3,546

4.3%
1.0%

2.3%
0.5%

-2.4%

-4.3%
1.4%

-2.9%
1.1%

Id. at 4.
YOU ARE FURTHER NOTIFIED that the Company proposes to update its
residential development costs to reflect the Company’s current Construction & Material
Standards and average 2019 construction costs, as follows:

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34623 5
Residential Developments
Present Proposed

Total Cost per Lot $1,907 $1,938
Less: Service Cost 471 478
Developer Responsibility $1,436 $1,460

Developer Refundable Payment $1,436 $1,460
Builder Non-Refundable Payment $ 67 $ 38

Allowance

$1,840

$1,900
Id. at 5.
YOU ARE FURTHER NOTIFIED that, besides updating its costs and allowances, the
Company proposes administrative changes that would make Schedule 51 easier for customers
to understand. These include: (1) clarifying when a Design Fee is charged, and that the Design
Fee is not refundable; (2) combining Basic and Exceptional charges into a single charge (the
change would not impact the costs paid by the customer for line extensions); (3) redefining
“Customer-Requested Costs” to help customers apply their line extension allowance toward the
overall cost of their line extension; (4) for commercial and industrial customers, clarifying when
an allowance would not be immediately provided and, in those cases, when a customer’s
allowance would be refunded after service installation; and (5) for conversions and relocations,
redefining “Salvage Value” to clarify that not all removed materials would have salvage value,
and that the Company would determine Salvage Value in its discretion (the Company states this
change would not materially impact customers). Id. at 6-10.
YOU ARE FURTHER NOTIFIED that the Company states it will send a letter
notifying developers and builders that may be affected by the proposed changes in June.
Company Letter at 1.
YOU ARE FURTHER NOTIFIED that the Application and supporting work papers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices. The Application and
testimonies are also available on the Commission’s web site at www.puc.idaho.gov. Click on
“Electric” and “Open Cases,” and then the case number as shown on the front of this document.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34623 5
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code. The Commission
may enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and will proceed under Modified Procedure
pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission's Rules of Procedure,
IDAPA 31.01.01.201 through.204. The Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person or party desiring to state a position
on this Application must file a written comment in support or opposition with the Commission by
June 3, 2020. The comment must contain a statement of reasons supporting the comment. Persons
desiring a hearing must specifically request a hearing in their written comments. Written comments
concerning this Application should be sent electronically, unless email is not available, to the
Commission and the Applicant at the email addresses reflected below:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074

Street Address for Express Mail:

11331 W. Chinden Blvd,
Bldg. 8, Suite 201-A
Boise, ID 83714
David Meyer
Patrick Ehrbar
Avista Corporation
P.O. Box 3727
MSC-27
1411 E. Mission Ave.
Spokane, WA 99220-3727
Email: [e-mail]
[e-mail]

Comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via email may do so by accessing the
Commission’s home page located at www.puc.idaho.gov. Click the “Case Comment Form” under
“Consumers,” and complete the comment form using the case number as it appears on the front of
this document. These comments must also be sent to the Applicant.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34623 5
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
June 10, 2020.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
O R D E R
IT IS HEREBY ORDERED that this case be processed by Modified Procedure, Rule
201 – 204 (IDAPA 31.01.01.201 through.204). Persons wishing to file written comments must do
so by June 3, 2020. The Company must file any reply comments by June 10, 2020.
IT IS FURTHER ORDERED that parties continue to comply with Order No. 34602,
issued March 17, 2020. All pleadings should be filed with the Commission electronically and shall
be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34623 5
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 17th
day of April 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER
ATTEST:

Diane M. Hanian
Commission Secretary

I:\Legal\ELECTRIC\AVU-E-20-02\orders\AVUE2002_ntc app mp_jh.docx