20200731Application.pdf

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RECEIVED
2020 July 31, PM 3:05
IDAITO PUBLIC
UTILITIES COMMTSSION
Avista Corp.
l4l I East Mission P.O. Box 3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-127-9170
July 31, 2020
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702-5983
R-E: Case No. AVU-E-20-!ll
Power Cost Adjustment (PCA) Annual Rate Adjustment Filing of Avista Corporation
Dear Commission Secrstary:
In accordance with Case No. GNR-U-20-01, Order No. 34602, which suspends the requirement to file
physical copies, the Company has attached for electronic filing with the Commission are the annual
Power Cost Adjustment Rate Fililg.
The Company is requesting that the Commission issue an order approving recovery ofpower costs
defened for the period July 1, 2019 through June 30,2020, and approving a PCA surcharge of
0.0151 per kilowatt-hour to be effective October l, 2020. Under the Company's proposal, the
PCA surcharge rate for all customers, including residential customers, would increase from a
rebate rate of 0.0581 per kilowatt-hour to a surcharge rate of 0.0151 per kilowatt-hour, or an
increase in the rate of 0.013fi per kilowatt-hour. Since PCA rate adjusfnents are spread on a
uniform cents per kilowatt-hour basis, the resulting percentage increase varies by rate schedule.
The overall increase is approximately $2.2 million or 0.9%. Residential customers using an average
of898 kilowatt-hours per month would see their monthly bills increase from $86.27 to $86,93, an increase
of$0.66 per month, or 0.87o.
Certain supporting documents are CONFIDENTIAL, rendering these documents exempt lrom
public inspection, examination and copying pusuant to Sections 74-l0l through 14-126 of the
Idaho Code. Avista believes that the identified CONFIDENTLA.L supporting documents contain
valuable commercial information.
As such, Avista is submitting a separate electronic filing containing the electronic form of the
CONFIDENTIAL supporting documents, in compliance with Rule 067.02.b.
Please direct any questions regarding this flling to Annette Brandon at (509) 4954324 or myself
at [phone].
Sincerely,
/s/ Patrick Ehrbar
Patrick D. Ehrbar
Director of Regulatory Affairs
Enclosures
-iistsra
RECEIVED
2020 July 31, PM 3:05
TDAHO PABLIC
ATILITIES COMMISSIONI
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DAVIDJ MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY & GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
14I1 E. MISSION AVENUE
P.O.BOX3727
SPOKANE, WASHINGTON 99220
PHONE: [phone]l,FAX: [phone]
IN THE MATTER OF THE POWER COST )
ADJUSTMENT(PCA)ANNUALRATE )
ADJUSTMENT FILING OF AVISTA )CORPORATION )
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. AW-E-20-Q:I
APPLICATION OF AVISTA
CORPORATION
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I. INTRODUCTION
In accordance with Idaho Code $61-502 and RP 052, Avista Corporation, doing
business as Avista Utilities (hereinafter "Avista" or "Companl'), at l41l East Mission
Avenue, Spokane, Washington, respectfully files its Power Cost Adjustment (PCA) annual
rate adjustment filing in the above referenced case. The Company requests the Commission
issue an order approving the level ofpower costs deferred in the surcharge direction for the
period July l, 2019 through June 30, 2020, and approving a PCA surcharge rate of 0.015d
per kilowatt-hour to be effective October l, 2020. The Company requests that this filing
be processed under the Commission's Modified Procedure Rules.
Communications in reference to this Application should be addressed to:
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE I
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David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Govemmental Affairs
Avista Corporation
P.O. Box 3727
MSC.27
1411 E. Mission Ave
Spokane, W A, 99220-37 27
Phone: [phone]
Fax: [phone]
[e-mail]
Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O.Box3727
MSC-27
14l I E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]
[e-mail]
Electronically
[e-mail]
II. BACKGROUI{D
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 rovenues and expenses. Avista's existing PCA methodology and method
of recovery were approved in Case No. AW-E-07-01 by Order No. 30361 dated June 29,
2007. In 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 requtement.
The Commission also approved a change in the method of the PCA deferral rate
adjusnnent from a uniform percentage basis, to a uniform cents per kilowatt-hour basis
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AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILINC PAGE 2
I effective with the October l, 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 classihed
4 portion of embedded production revenue requirement effective April I, 201 l.
5 The Commission approved the following procedural schedule for administering the
6 annual PCA filings:
7 August 1 Company frling for prior July - June deferral period
8 September 1 Review and comments by Staff and other interested parties
9 October I Commission Order and effective date of PCA rate
l0 adjustment
ll The present PCA rebate was made effective on October 1,2019. OnJuly30,2019,
12 in Case No. AVU-E-19-09, Avista filed its annual PCA rate adjustrnent ior the deferral
13 period July 1,2018 through June 30, 2019 and requested a PCA rebate rate of0.0581 per
14 kilowatt-hour, based on an overall rebate of approximately $1.745 million, effective
l5 October 1,2019. That rebate will end on September 30, 2020. The Commission approved
16 that application in Order No. 34453, dated September 30, 2019.
17 The proposed PCA rate adjustment of 0.0151 per kilowatt-hour would surcharge to
l8 customers approximately $0.5 million effective October 1, 2020. The surcharge is primarily
'19 associated with power supply costs that were higher than those included in retail rates, due
20 to higher wholesale electric and natural gas prices. The net effect of the expiring rebate,
21 and the proposed surcharge, is an overall increase in revenue ofapproximately 0.9 percent,
22 or $2.2 million.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 3
1 III. DEFERRALS - JULY 1. 2019 THROUGH JUNE 30. 2O2O
The amount of power cost deferrals for the period July l, 2019 through June 30,
2020 is shown below, as well as interest for the same period. Company witness Mr. Reid's
testimony provides an explanation of the factors causing the deferral entries for the period.
Company wimess Ms. Brandon's testimony addresses the deferral, Renewable Energy
Credit Benefit, and interest amount.
Deferrals (rulY 2019 - June 2020)
Rmervable Eaergv Credit RetirerDent Benefit
I[tere*
Total Deferral Balance
$
s
$
1,038,548
(8s7.010)
15,928
s 197 .46
Monthly reports have been Iiled with the Commission regarding actual PCA
deferral entries to date. An additional copy of those reports for the months of July 2019
through June 2020 has been included with this filing and has also been provided to
Clearwater Paper Corporation and ldaho Forest Group.
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14 rV. PROPOSED REBATE TO BE EFTECTIVE OCTOBER I.2O2O
15 The Company is proposing a uniform cents per kilowatt-hour PCA surcharse rate
16 of0.0l5p tobe effective October 1,2020. See page I ofMs. Brandon's Exhibit No. AMB-
17 I for the calculation of the proposed rate. Attached to this Application as Exhibit "A" is a
18 copy of the proposed tariff, Schedule 66, which contains the proposed PCA rate. Exhibit
l9 "A" also includes the proposed changes to Schedule 66 in strike out/underline format. The
20 proposed rate is designed to surcharge the following:
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4
I Dcfcelals (July 2019 - Junc 2020)
RPS Cor4Jiarce
RcrcrraHc Errrly Crcdit Rctirqrrt Bcrrfit
Total DeErral Balarce
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$
1.038.548
(857.010)
15.928
s 1q7.466
Unalrortized Balarce fioru Preriors Dderrals (prior to July 1.2019)
A.trodization July ?019 - Jur l0l0
Lfercs
Total Rarniuing fur:odizatiqr Balarce
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(4.057.?74)
l-q36.51-1
(30.615 )
$
$
( 1s1.386)
ProjeEtcd Arrortizdion alJ Interest (July 2020-September 202 I )413.311
TOTAI B,q,LANCE FOR AMORTIZATION s 459.391
After applying the conversion factor related to commission fees and uncollectible
customer accounts, the resulting rebate of$461,909 is divided by forecasted kilowatt-hours
to derive the proposed surcharge rate of 0.0151 per kilowatt-hour. I
Since PCA rate changes are spread on a uniform cents per kilowatt-hour basis, the
resulting percentage increases varyby rate schedule. Page I of Ms. Brandon's Exhibit No.
AMB-I shows the effect of the proposed PCA rebate by rate schedule. The overall
increase, after accounting for the expiration of the existing rebate, and the new surcharge,
is $2.2 million or 0.9%.
Residential customers using an average of898 kilowatt-hours per month would see
their monthly bills increase from $86.27 to $86.93, an increase of$0.66 per month, or 0.9%.
I Total Balance for Amortization $459,391 divided by conversion factor 0.994549 = $461,909
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AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 5
1 V, REOUESTFORRELIET
2 The Company requests that the Commission issue an order approving power costs
3 defened for the period July 1, 2019 through June 30, 2020, and approving a PCA surcharge
4 of 0.0151 per kilowatt-hour to be effective October l, 2020. Under the Company's
5 proposal, the PCA rate for all customers, including residential customers, would increase
6 from a rebate rate of 0.0580 per kilowatt-hour to a surcharge rate of 0.0151 per kilowatt-
7 hour. Since PCA rate adjustments are spread on a uniform cents per kilowatt-hour basis,
8 the resulting percentage increase varies by rate schedule. The overall increase is
9 approximately $2.2 million or 0.9%. The Company requests that the matter be processed
l0 under the Commission's Modified Procedure rules tlrough the use of written cornments.
I I Dated at Spokane, Washington this 31st day ofJuly 2020.
I2 AVISTACOR?ORATION
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By: isl David J. Mever
David J. Meyer
Vice President and ChiefCounsel for
Regulatory & Govemmental Affairs
AVISTA'S PCA ANNUAL RATE ADJT]STMENT FILING PAGE 6
Case No. AWI-E-2O-
2020Idaho PCA Filing
Exhibit "A"
l.P.l.J.C- No.28
lssued by
By
Twenty-second Revision Sheet 66
Canceling
first 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 lo be increased by 0.0150 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
Th6 rates s6t forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of defened power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increasos as set forth in Tax Adiustment
Schedule 58.
lssued July 31, 2020 Effective October 1, 2020
Avista LJtilities
Patrick Ehrbar - Director of Regulatory Affairs
l.P.U.C. No.28
lssued by
By
Twenty-first Revision Sheet 66
Canceling
Twentieth Revision Sheet 60
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 deereased by 0S581 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 defened 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 Adiustment
Schedule 58.
lssued July 30, 2019 Effective Octoberl, 2019
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs
l.P.U.C. No.28
lssued by
By
Twenty-second Revision Sheet 66
Canceling
Twenty-first Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEIVIPORARY 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 ofthe difierence 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 increased by 0.0158 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subiect to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is sublect 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 31, 2020 Effective October 1, 2020
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have served Avista Corporation's annual Power Cost
Adjustment (PCA) Annual Rate Adjustrnent Filing by mailing a copy thereof, postage
prepaid, to the following:
Commission Secretary
ldaho Public Utilities Commission
472 W. Washington St.
Boise, lD 83702-5983
Peter J. Richardson
Richardson Adams PLLC
515 N.27h Street
Boise, lD 83702
Peter.richardsonadams.com
Marv Lewallen
Clearwater Paper
28530 W Canyon Creek Rd. - South
Wilsonville, OR 97007
Email: [e-mail]
Ronald L. Williams
Willams Bradbury, P.C.
P.O. Box 368
Boise, lD 83701
[e-mail]
(Excluding Confidential lnformation)
Dean J. Miller, Lawyer
3620 E. Wam Springs
Boise, lD 83701
Email: [e-mail]
(Excluding Confidential lnformation)
Terry Borden
Clearwater Paper
601 W. Riverside Ave. Suite 1100
Spokane, WA 99201
Terry.Borden@cleaMater paper.com
Larry A Crowley
The Energy Strategies lnstitute lnc
5549 S. Cliffsedge Ave
Boise, lD 83716
Email: [e-mail]
Dr. Don Reading
6070 Hill Road
Boise, ldaho 83703
[e-mail]
(Excluding Confi dential lnformation)
Dated at Spokane, Washington this 31st day of July 2O2O.
/s/ Paul Kimball
Paul Kimball
Manager Regulatory Compliance and Discovery