20210223Notice_of_Application_Order_No_34930.pdf

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 34930 1

Office of the Secretary
Service Date
February 23, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION DBA AVISTA
UTILITIES FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR
ELECTRIC SERVICE TO ELECTRIC
CUSTOMERS IN THE STATE OF IDAHO
)
)
)
)
)
)
)
)
)
)
CASE NOS. AVU-E-21-01
AVU-G-21-01

NOTICE OF APPLICATION

NOTICE OF
INTERVENTION DEADLINE

ORDER NO. 34930

On January 29, 2021, Avista Corporation dba Avista Utilities (“Avista” or the
“Company”) filed an Application seeking authority to increase the Company’s rates for electric
and natural gas service in Idaho, proposed to be effective on September 1, 2021.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED Avista is a public utility primarily engaged in the
generation, transmission and distribution of electric power and the distribution of natural gas in
portions of eastern and central Washington and northern Idaho, and the distribution of natural gas
in northeast and southwest Oregon.
YOU ARE FURTHER NOTIFIED that the Commission approved Avista’s existing
electric base rates and charges for electric service on November 29, 2019, and the Company’s
existing base rates and charges for natural gas service on December 28, 2017. See Order No.
34499, Case No. AVU-E-19-04 (electric) and Order No. 33953, Case No. AVU-G-17-01 (natural
gas). In its Application, Avista claims its existing rates are not fair, just, and reasonable, and the
Company will not have the opportunity to earn a fair rate of return on its investment. Application
at 5.
YOU ARE FURTHER NOTIFIED that in the first year of Avista’s rate proposal (“Rate
Year 1”), the Company proposes to increase its annual electric billed revenues by $24.8 million
(10.1%) and its annual natural gas billed revenues by $0.1 million (0.1%), effective September 1,
2021. Id. at 1. Avista represents these increases, if approved by the Commission, would be offset
by the Tax Customer Credit Tariff Schedules 76 (electric) and 176 (natural gas).
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 34930 2

YOU ARE FURTHER NOTIFIED that the Company’s proposed amortization of the
potential electric tax benefits of $31.3 million from Schedule 76 (electric), would begin September
1, 2021, and would entirely offset the Company’s base electric rate relief requested for Rate Year
1 ($24.8 million) until approximately November 30, 2022. Id. at 1-2. For natural gas customers,
the Company proposes to begin amortizing the natural gas tax benefits of $12.1 million from
Schedule 176 (natural gas) beginning September 1, 2021 over a 10-year period, approximately
$1.2 million annually. Id. at 2. This would offset the proposed increase in rates for natural gas
service in Rate Year 1 ($0.1 million) and result in an overall reduction for natural gas customers
of approximately 1.8% on a billed basis. Id.
YOU ARE FURTHER NOTIFIED in the second year (“Rate Year 2”) of the
Company’s proposal, Avista proposes to increase its annual electric billed revenues by $8.7
million (3.2%) and its natural gas billed revenues by $1.0 million (2.2%). Id. Avista states the
increase in natural gas billed revenues in Rate Year 2 would be offset by the Deferred Depreciation
Credit Tariff Schedule 177 (natural gas) which would be an offset of approximately $0.9 million
for one-year effective September 1, 2022 through August 31, 2023, reducing the proposed $1.0
million increase. Avista asserts that natural gas service customers would see an overall bill impact
of 0.1%, effective September 1, 2022. Id.
YOU ARE FURTHER NOTIFIED Avista’s Application asserts the need for a revenue
increase is primarily due to increases in net plant investment, electric net power supply expenses
and increases in distribution, operation and maintenance, and administrative and general expenses
for both electric and natural gas operations. Id. at 4.
YOU ARE FURTHER NOTIFIED Avista’s Application requests an overall rate of
return of 7.30%, which includes a 9.9% return on equity. Id. at 7.
YOU ARE FURTHER NOTIFIED Avista’s Application asserts that for electric service
in Rate Year 1 beginning on September 1, 2021, a residential electric customer using an average
of 892 kilowatt hours (“kWhs”) per month would see their monthly bills remain unchanged at
$85.63. See Customer Notice and Press Release attached as Exhibit B to the Application. In Rate
Year 2 beginning on September 1, 2022, residential customers using an average of 892 kWhs per
month would see their monthly bills increase from $85.63 to $89.01, an increase of $3.38 or 3.9%
per month. Id. Included in that bill change for Rate Year 2 is a proposed increase in the basic
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 34930 3

monthly charge of $2.00, to a level of $8.00 per month. Id. Avista’s proposed electric rate increase
for Rate Year 1 & 2 would impact customers’ electric bills by rate schedule as follows:
Proposed Electric Rate Changes

Rate Schedule
Proposed 2021
Billing Change
Proposed 2022
Billing Change
Residential Service Schedule 1 0.0% 3.9%
General Service Schedules 11 & 12 0.0% 3.4%
Large General Service Schedules 21 & 22 0.0% 3.4%
Extra Large General Service Schedule 25 0.0% 3.4%
Extra Large General Service Schedule 25P 0.0% 1.3%
Pumping Service Schedules 31 & 32 0.0% 3.4%
Street & Area Lighting Schedules 41-49 0.0% 3.4%
Total 0.0% 3.5%

YOU ARE FURTHER NOTIFIED that for natural gas service, in Rate Year 1
residential customers using an average of 63 therms per month would see their monthly bills
decrease by $0.95, from $49.49 to $48.54 beginning on September 1, 2021, or -1.9%. Id. In Rate
Year 2, residential customers using an average of 63 therms per month would see their monthly
bills increase from $48.54 to $48.59, an increase of $0.05 or 0.1% per month beginning on
September 1, 2022. Id. Included in that bill change for Rate Year 2 is a proposed increase in the
basic monthly charge of $2.00, to a level of $8.00 per month, offset by a decrease in the volumetric,
per therm rate. Id. The proposed change above current billing rates by service schedule is as
follows:
Proposed Natural Gas Rate Changes

Rate Schedule
Proposed 2021
Billing Change
Proposed 2022
Billing Change
General Service - Schedule 101 -1.9% 0.1%
Large General Service - Schedules 111 &
112
-1.5% 0.1%
Transportation Service – Schedule 146
(excludes commodity and interstate pipeline
transportation costs)
-2.7% 0.2%
Total -1.8% 0.1%

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 34930 4

YOU ARE FURTHER NOTIFIED that the Commission has designated this case as a
general rate case. As such, Avista’s intrastate revenue requirement, and every component of it,
both rate base and expenses, are at issue. The Commission may grant, deny, or modify the revenue
requirement requested and may find a revenue requirement different from that proposed by any
party is just, fair, and reasonable. IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Avista retail
customers, both recurring and non-recurring, including those of special contract customers, are at
issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, reject, or modify the rates and charges proposed and may find that rates
and charges different from those proposed by any party are just, fair, and reasonable. IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject, or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings and may approve, reject or modify existing or
proposed relationships among and between customer classes or rate groupings. IDAPA
31.01.01.124.02.a.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce, or create
rate blocks or categories of rates and charges, abolish, create, or reduce components of rates and
charges, abolish, reduce, or create customer classes or rate groupings, and abolish, reduce, or create
absolute or relative differences among and between existing classes or rate groupings of customers.
IDAPA 31.01.01.124.02.b.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations,
service, instrumentalities, equipment, facilities, classifications, and customer relations of the utility
are at issue, and the Commission may address any of them in its order. IDAPA 31.01.01.124.02.c.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission office. The Application and
testimonies are also available on the Commission’s website at www.puc.idaho.gov. Click on the
“ELECTRIC” icon, select “Open Cases,” and click on the case number as shown on the front of
this document.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 34930 5

YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest requires the scheduling of one or more public workshops in this case. The public
workshops, to be scheduled, will offer the public an opportunity to meet with the Commission
Staff, ask questions and receive information about the Company’s Application.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
Petition to Intervene with the Commission pursuant to this Commission’s Rules of Procedure 72
and 73, IDAPA 31.01.01.072 and -.073. Persons intending to participate at the hearing must file
a Petition to Intervene no later than twenty-one (21) days from the service date of this Order.
Persons desiring to present their views without parties’ rights of participation and cross-
examination are not required to intervene and may present their comments without prior
notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice
of Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit
numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, the
Commission Staff will informally confer with the parties to discuss a schedule to process this case
and other issues raised by the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Avista’s representatives in this matter:
David J. Meyer, Esq.
Vice President & Chief Counsel,
Reg. & Gov’t Affairs
Avista Corporation
P.O. Box 3727
1411 E. Mission Avenue
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]

Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O. Box 3727
1411 East Mission Avenue
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]

Electronically:
[e-mail]
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 34930 6

YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in this
matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA). Persons needing the help of a sign language interpreter or other assistance
in order to participate in or to understand testimony and argument at a public hearing may ask the
Commission to provide a sign language interpreter or other assistance at the hearing. The request
for assistance must be received at least five (5) working days before the hearing by contacting the
Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
P.O. BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-mail: [e-mail]

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, 61-502, 61-507, 61-520, 61-523, and 61-622. 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.
O R D E R
IT IS HEREBY ORDERED that persons desiring to intervene in this matter for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
with the Commission no later than twenty-one (21) days from the service date of this Order.
IT IS FURTHER ORDERED after the intervention deadline runs, Staff will convene
an informal prehearing conference at the Commission’s office for the parties to discuss a schedule
to process this case and other issues as may be raised by the parties.
IT IS FURTHER ORDERED that Commission Staff shall conduct one or more public
workshops pursuant to Rule 127 of the Commission’s Rules of Procedure, IDAPA 31.01.01.127.
The number, date, and time of the workshops will be set by subsequent Order or Notice.
///

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 34930 7

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 23rd day
of February 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\AVUE2101_AVUG2101\orders\AVUE2101_AVUG2101_NtcApp_Int_jrh.docx