20210630Final_Order_No_35092.pdf

ORDER NO. 35092 1

Office of the Secretary
Service Date
June 30, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On March 29, 2021, Avista Corporation dba Avista Utilities (“Company”) applied for
Commission approval to update costs and make administrative changes to the Company’s Electric
Line Extension Schedule 51 (“Schedule 51”). The Company requested a May 15, 2021, effective
date.
On April 27, 2021, the Commission issued a Notice of Application and Notice of
Modified Procedure establishing public and Company reply deadlines. Order No. 35019. Order
No. 35019 also suspended the Company’s proposed effective date until July 1, 2021. Staff filed
the only comments and supported the Company’s Application. The Company did not reply.
Having reviewed the record, the Commission enters this Order approving the
Company’s Application.
THE APPLICATION
The Company’s Schedule 51 incorporates the principle of average costing for
electrical facilities commonly used to extend service such as transformers and conduit. These
“Basic Costs” have a fixed and variable component, with the variable component stated on a cost-
per-foot basis. The Company does not propose to change the average costing principle in its
Application but proposes updates to the Basic Costs based on 2020 material and equipment costs.
The Company proposes to make the following updates:
Present Proposed % Change
Overhead Primary Circuit
Fixed Cost $4,205 $4,677 11.20%
Variable Cost $8.22 $9.17 11.60%

Underground Primary Circuit
Fixed Costs $1,934 $1,920 (0.70%)
Variable Costs $11.34 $10.01 (11.70%)
Underground Secondary Circuit
Fixed Costs $428 $394 (8.00%)
Variable Costs $10.47 $8.60 (17.90%)
IN THE MATTER AVISTA’S ANNUAL RATE
ADJUSTMENT FILING FOR ELECTRIC
LINE EXTENSION SCHEDULE 51
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CASE NO. AVU-E-21-03

ORDER NO. 35092
ORDER NO. 35092 2

Overhead Secondary Circuit
Fixed Costs $1,732 $1,936 11.70%

Overhead Service Circuit $3.74 $4.27 14.20%
Underground Service Circuit $9.54 $8.43 (11.60%)

Overhead Transformer $2,242 $2,345 4.60%
Padmount Transformer $3,546 $3,477 (1.90%)

The Company states the proposed updates reflect updated primary, secondary, service,
and transformer average costs. The Company states the proposed increases to its overhead rates
are because its fixed costs to maintain the equipment necessary to perform this work have not
changed but the equipment was used less in 2020. The Company states its proposal to decrease
the underground rates is the result of an internal process improvement that changed how costs are
assigned to a job.
The Company also proposes to update its residential development costs to reflect the
most current Construction & Material Standards and average construction costs as shown below:
Residential Developments
Present Proposed
Total Cost per Lot $1,938 $1,772
Less: Service Cost $478 $422
Developer Responsibility $1,460 $1,350

Developer Refundable Payment $1,460 $1,350
Builder Non-Refundable Payment $38 ─

Allowance $1,900 $1,900

The Company is not proposing to update the construction allowances in this case and
states it will update the construction allowances following the conclusion of its next general rate
case.
STAFF COMMENTS
Staff stated that it has reviewed the Company’s filing and agreed with the proposed
changes to basic costs and residential development costs. Staff stated basic costs are calculated
using recent average actual costs for facilities. Facilities include transformers and conduit. Staff
notes major drivers of changes in average costs were vehicle usage and a business process
ORDER NO. 35092 3

improvement that altered how vehicle rates are applied. The Company suggested the reason for
decreased vehicle usage is the cyclical nature of construction and operational changes. Vehicle
usage drove the increase in overhead costs. Decreased underground costs were driven primarily
by business process improvements that reallocated costs in the Company’s workorder system to
align it more closely with how vehicles are used in the field. Staff believed the Company’s
explanations were reasonable.
Staff also reviewed the Company’s method for calculating residential development
costs and determined the Company complied with Commission Order No. 28562.
COMMISSION DISCUSSION AND FINDINGS
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 July 1, 2021. We note 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. We find 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, allowances, and administrative changes to the Company’s Electric Line
Extension Schedule 51 are approved as filed, effective July 1, 2021.
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 with regard to 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.

ORDER NO. 35092 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 30th day
of June 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\AVU-E-21-03\orders\AVUE2103_final_dh.docx