20201116Notice_of_Application_Order_No_34835.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34835 1

Office of the Secretary
Service Date
November 16, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF AVISTA
CORPORATION’S APPLICATION FOR AN
ACCOUNTING ORDER FOR APPROVAL
OF DEPRECIATION AND AMORTIZATION
RATES FOR INVESTMENTS IN SOFTWARE
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CASE NOS. AVU-E-20-09
AVU-G-20-06

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 34835

On October 9, 2020, Avista Corporation dba Avista Utilities (“Company”) applied to
the Commission seeking an accounting order authorizing it to use an amortization period for its
capitalized software license costs and capitalized software implementation costs that aligns with
the life of the underlying contract for Information Technology services. Application at 1. The
Company requested its Application be processed by Modified Procedure. Id. at 9.
The Commission now issues this Notice of Application and Notice of Modified
Procedure establishing public comment and Company reply deadlines.
THE APPLICATION
YOU ARE HEREBY NOTIFIED that intangible assets, including software, are
amortized and tangible asset like plant, property, or equipment, are depreciated. Id. at 2. The
Company’s depreciation rates were updated in 2019 (see Order No. 34276) but that case did not
address the amortization period for capitalized software costs. Id.
YOU ARE FURTHER NOTIFIED that if cloud computing arrangements include a
license to internal-use software, then the software license is capitalized over a five-year period
under authorized accounting practices. Id. at 1, 4. The Company requests approval to use an
amortization period for the license to internal-use software and implementation costs of cloud
computing arrangements that reflect the actual useful life of the software arrangement. Id. at 8.
YOU ARE FURTHER NOTIFIED that the Company anticipates this would cause the
lives of its various software and other cloud computing arrangements and extensions to be
amortized over periods from two to ten years. Id.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34835 2

YOU ARE FURTHER NOTIFIED that the Company is not requesting to impact
customers’ rates at this time and will only being to utilize the new amortization period for projects
that become used and useful after obtaining Commission approval. Id. at 5. The impact on
amortization expense would be included in a future general rate case. Id.
YOU ARE FURTHER NOTIFIED that the Company’s Application and Exhibits,
including the proposed tariff sheets, are available for public inspection during regular business
hours at the Commission’s office. The Application is also available on the Commission’s web site
at www.puc.idaho.gov. Click on the “NATURAL GAS” or “ELECTRIC” tab in the left-hand
column of the home page, then select “Open Cases” and then locate and click on the case number
as shown on the front of this document.
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, and specifically Idaho
Code §§ 61-501 and 61-525. 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 under 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 it will review the case through written
submissions under the Commission’s Rules of Modified Procedure Rule 201 through 204 of the
Idaho Public Utilities Commission’s Rules of Procedure, IDAPA 31.01.01.201-204. 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 persons desiring to state a position on this
Application may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments. Persons shall have twenty-one (21) days from the service date on this Order to
file written comments. Comments must be filed by e-mail unless e-mail is unavailable. To
comment by e-mail, please access the Commission’s home page at www.puc.idaho.gov. Click the
“Case Comment Form” and complete the form using the case number as it appears on the front of
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34835 3

this document. Comments filed by e-mail must also be e-mailed to the Company at the e-mail
addresses listed below. If e-mail is unavailable, then comments may be mailed to the Commission
and Company at these addresses:
For the Idaho Public Utilities
Commission:

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

Street Address for Express Mail:

11331 W. Chinden Blvd.,
Building 8, Suite 201-A
Boise, ID 83714

E-Mail: [e-mail]

For Avista Corporation:

David J. Meyer, Esq. (MSC-13)
Patrick Ehrbar (MSC-27)
P.O. Box 3727
1411 E. Mission Ave
Spokane, WA 99220-3727
[e-mail]
[e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments
within twenty-eight (28) days from the service date on this Order.
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 - .204). Persons interested in submitting written comments must
do so within twenty-one (21) days from the service date on this Order. The Company must file any
reply comments within twenty-eight (28) days from the service date on this Order.
IT IS FURTHER ORDERED that parties continue to comply with Order No. 34781,
issued September 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.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34835 4

DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 16th
day of November 2020.

__________________________________________
PAUL KJELLANDER, PRESIDENT

__________________________________________
KRISTINE RAPER, COMMISSIONER

__________________________________________
ERIC ANDERSON, COMMISSIONER

ATTEST:

_________________________________
Jan Noriyuki
Commission Secretary

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