20210722Notice_of_Application_Order_No_35113.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35113 1
Office of the Secretary
Service Date
July 22, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF AVISTA’S
APPLICATION FOR AN ACCOUNTING
ORDER AUTHORIZING ACCOUNTING
AND RATEMAKING TREATMENT OF
COSTS RELATED TO ALLOWANCE FOR
FUNDS USED DURING CONSTRUCTION
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CASE NO. AVU-E-21-06
AVU-G-21-05

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35113

On July 6, 2021, Avista Corporation dba Avista Utilities (“Company”) applied to the
Commission for authorization of accounting and ratemaking treatment related to Allowance for
Funds Used During Construction (“AFUDC”). The Company requests its Application be
processed by modified procedure.
The Commission now issues this Notice of Application and Notice of Modified
Procedure establishing dates for public comments and the Company’s reply.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that AFUDC represents the cost of the debt and the
equity funds used to finance utility plant additions during the construction period. AFUDC is
capitalized during construction as part of the cost of utility plant and the Company is authorized
to recover the capitalized AFUDC through its inclusion in rate base and the provision for
depreciation after a related utility plant is placed in service.
YOU ARE FURTHER NOTIFIED the Company seeks authority to amortize the
regulatory asset1 using the approved depreciation rate by plant Federal Energy Regulatory
Commission (“FERC”) account that has been approved by the Commission in the most recent
depreciation study and to be able to update the amortization rate with each depreciation study
going forward.

1 The Company was authorized to defer the difference calculated between the state regulatory AFUDC rate and the
FERC AFUDC rate and amortize the balance over the composite remaining life of the plant-in-service. See Order No.
34326.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35113 2
YOU ARE FURTHER NOTIFIED that for the AFUDC capitalized to plant-in-service,
the depreciation rate is determined by a depreciation study at the individual plant account level
that is performed periodically.2
YOU ARE FURTHER NOTIFIED that the Company has received approval from the
Washington Utilities and Transportation Commission and will request approval from the Public
Utility Commission of Oregon to use the same method of amortization of the deferred AFUDC
costs it seeks approval to use in Idaho.3
YOU ARE FURTHER NOTIFIED that the Company’s Application and exhibits are
available for public inspection during regular business hours at the Commission’s office. The
Application are also available on the Commission’s web site at www.puc.idaho.gov. Click on the
“ELECTRIC” or “GAS” tab, select “Open Cases” and then locate and click on the corresponding
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. 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 that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure, IDAPA
31.01.01.201 through .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 anyone desiring to state a position on the
Company’s 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 21 days from the service date of this Order to file
written comments. Comments must be filed through the Commission’s website or by e-mail

2 The Company’s last depreciation study was approved March 19, 2019, in Case Nos. AVU-E-18-03 and AVU-G-18-
02. See Order No. 34276.
3 The Company states it is critical to maintain uniform utility accounts and AFUDC methods for common plant among
the Company’s regulatory jurisdictions.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35113 3
unless computer access is unavailable. To comment electronically, 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 this document. To file by e-mail, the customer must
e-mail the comments to the e-mail addresses listed below. In addition to submitting the comments
to the Commission Secretary, the customer must also e-mail the Company at the e-mail addresses
listed below. If computer access 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
[e-mail]

Street Address for Express Mail:

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

For Avista Corporation:

David Meyer
Patrick Ehrbar
Avista Corporation
P.O. Box 3727
1411 E. Mission Avenue
Spokane, WA 99220
[e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments
within 28 days of the service date of 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 a formal hearing.
O R D E R
IT IS HEREBY ORDERED that this case be processed by Modified Procedure.
Interested persons must file written comments within 21 days of the service date of this Order. The
Company must file any reply comments within 28 days of the service date of this Order.
IT IS FURTHER ORDERED that parties continue to comply with Order No. 35058,
issued June 3, 2021. 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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35113 4
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 22nd
day of July 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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