20200618Final_Order_No_34698.pdf

ORDER NO. 34698 1

Office of the Secretary
Service Date
June 18, 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

ORDER NO. 34698

On March 10, 2020, Avista Corporation (the “Company”) applied to the Commission
for an order allowing it to revise Electric Line Extension Schedule 51 (“Schedule 51”) to update
line extension costs and allowances that apply to new residential, commercial, and industrial
customers. The Company requested that the Commission process this case by modified procedure
under the Commission’s Rules of Procedure and requested a May 1, 2020, effective date for the
proposed adjustments to its Schedule 51 charges.
On April 17, 2020, the Commission issued a Notice of Application and Notice of
Modified Procedure and set a June 3, 2020, comment deadline and a June 10, 2020, reply deadline.
See Order No. 34623. The Commission Staff (“Staff”) filed the only comments and supported the
Company’s Application.
Having reviewed the record, the Commission enters this Order approving the
Company’s Application.
APPLICATION
The Company proposes to revise Schedule 51 to update the average cost for facilities
like transformers and conduit used to extend electric lines. Application at 2. The Company
proposes to use the updated costs to increase the allowances that customers can apply against the
costs to extend new residential, commercial, and industrial service. Id. at 2-3. Any costs that
exceed an allowance would be paid by the customer as a Contribution in Aid of Construction. Id.
at 3. The Company’s proposed changes to the allowances by service schedule are, in summary:

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

Id. at 3.
ORDER NO. 34698 2

The Company also proposed to update its primary, secondary, service, and
transformer average costs as follows:
Single Phase Current Proposed
Overhead Primary Circuit
Fixed Cost $ 4,253 $ 4,205
Variable Cost $ 8.38 $ 8.22
Underground Circuit
Fixed Cost $ 1,854 $ 1,934
Variable Cost $ 11.23 $ 11.34
Underground Secondary Circuit
Fixed Cost $ 418 $ 428
Variable Cost $ 10.42 $ 10.47
Overhead Secondary Circuit
Fixed Cost $ 1,774 $ 1,732
Overhead Service Circuit
Variable Cost Only $ 3.91 $ 3.74
Underground Service Circuit
Variable Cost Only $ 9.41 $ 9.54
Overhead Transformer
Fixed Cost Only $ 2,310 $ 2,242
Padmount Transformer
Fixed Cost Only $ 3,507 $ 3,546
Id. at 4.
The Company further proposed to update its residential development costs to reflect
the Company’s current Construction & Material Standards and average 2019 construction costs,
as follows:
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.
ORDER NO. 34698 3

The Company has brought the Application to the attention of the Company’s affected
customers by sending them customer notices beginning on May 15, 2020.
STAFF COMMENTS
Staff filed the only comments and recommended the Commission approve the
Application. Staff Comments at 2. Staff stated the Company appropriately calculated allowances
and average costs. Id. Staff also confirmed the Company's methodology for calculating average
costs is consistent with past Schedule 51 filings. Id. Last, Staff also agreed with the Company’s
proposed basic costs. Id.
Staff confirmed the Company determined the proposed allowances using an embedded
cost methodology that ensures the Company's investment in each new customer's distribution and
terminal facilities does not increase other customers' rates. Id. Staff confirmed the Company's
embedded cost methodology matches the methodology of past filings and are based on the cost of
service study completed in the Company's last general rate case, AVU-E-19-04, updated by
settlement base rates approved by the Commission in that case. Id.
Staff also reviewed the basic costs that are calculated using recent average, actual costs
for facilities such as transformers and conduit. Id. at 3. Staff noted that the average costs for this
year are comparable with last year’s costs. Id. Staff stated the Company has consistently used this
methodology to determine line extension tariffs, including prior versions of Schedule 51. Id. Staff
recognized the Company is also proposing to update the primary, secondary, service, and
transformer average costs. Id. Staff believed the changes are reasonable and should be approved.
Id.
Staff also reviewed the updates for basic costs for residential developments that
developers are responsible for. Id. at 4. A developer can recoup these costs as new customers
receive service within five years from the date that the extension was completed. Id. Staff noted
the Company is proposing a $38 builder non-refundable payment which decreases to $29 or 43.3%
and the overall allowance increases $60 or 3.3%. Id. Staff confirmed the Company’s methodology
for calculating this change is consistent with the methodology in Order No. 28562. Id.
Staff also reviewed the Company’s customer notice and press release and determined
they meet the requirements of Rule 125 of the Commission's Rules of Procedure. Id. at 5. The
customer notice was mailed to customers beginning on May 15, 2020. Id. Since the written
comment deadline was June 3, 2020, some customers may not have received their notices or have
not had adequate time to submit comments before the deadline. Staff asserted that customers must
ORDER NO. 34698 4

have the opportunity to file comments and have those comments considered by the Commission.
Id. Staff recommended that the Commission accept late-filed comments from customers. Id. As
of June 16, 2020, no comments had been filed in this case.
COMMISSION FINDINGS AND DECISION
The Company is an electric corporation and public utility. The Commission has
jurisdiction over the Company and the issues in this case under Title 61 of the Idaho Code. Having
reviewed the record, including the Application and Staff's comments, the Commission finds the
Company's proposed changes to Schedule 51 are fair, just, and reasonable and should be approved
as filed, effective May 1, 2020. The Commission notes the Company's updated allowances are
roughly equal to the embedded facilities cost used to calculate base rates, and this ensures new
customer-related distribution costs do not affect rates for existing customers. The Commission
finds the Company's updates are consistent with prior orders, including Order No. 28562.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application is approved. The
proposed update in costs and allowances to the Company’s Electric Line Extension Schedule 51
are approved as filed, effective, May 1, 2020.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
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ORDER NO. 34698 5

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 18th
day of June 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Diane M. Hanian
Commission Secretary

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