20210730Application.pdf

.:ii.:1 ii*li- 'j* Fl4 t?: l9 ArtnsrtAvista Corp.
141 1 East Mission P.O.Box3727
Spokane. Washington 99220-37 27
Telephone [phone]
Toll Free 800-727-9170
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Re:
Jnly 30,2021
State of Idaho
Idaho Public Utilities Commission
11331 W. ChindenBlvd
Bldg 8 Suite 201-A
Boise,ID 83714
Attention: Ms. Jan Noriyuki, Secretary
Case No. AVU-E-2l-1gl
Residential Exchange Annual Rate Adjustment Filing of Avista Corporation
Dear Commission Secretary:
In accordance with Case No. GNR-U-20-01, OrderNo. 34602, which suspends the requirementto file
physical copies, the Company has attached forelectronic filing with the Commission the following
revised tariff sheet:
Twenty First Revision Sheet 59 canceling Twentieth Revision Sheet 59
Enclosed for filing with the Commission is Avista Corporation's dba Avista Utilities ("Avista or
the Company") Application requesting approval of changes to the Company's Residential and
Small Farm Tariff Schedule 59.
Electronic versions ofthe Company's filing were emailed to the Commission, and the Service List,
on July 30,2021.
Please direct any questions regarding this filing to Tia Benjamin at [phone]
Sincerely,
/s/ Patrick Ehrbar
Patrick Ehrbar
Director of Regulatory Affairs
Enclosures
1 DAVID J. MEYER2 VICE PRESIDENT AND CHIEF COUNSEL FOR3 REGULATORY AND GOVERNMENTAL AFFATRS4 AVISTA CORPORATION5 I4II E. MISSION AVENUE6 P . O. BO)( 37277 SPOKANE, WASHINGTON 99220
8 PHONE: [phone], FAX: [phone]
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF THE RESIDENTTAL )
AND SMALLFARMANNUALRATE )
ADJUSTMENT FILING OF )
AVTSTA CORPORATION )
CASE NO. AVU-E-2l-OI
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 'oCompany"), dt l4l1 East Mission
Avenue, Spokane, Washington, respectfully makes application to the Idaho Public Utilities
Commission ("Commission") for an order authoizingAvista to implement Residential and
Small Farm Energy rates for electric service from October 1,2021 through Septernber 30,
2022. The proposed Residential and Small Farm Energy Rate Adjustment credit rate for
rate schedules I , 12, 22, 32, and 48 is 0.3 1 9l per kilowatt-hour. The credit rate represents
a $0.1 million increase to qualiffing customers. The Company has requested an October
1,2021effective date.
AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE
ADJUSTMENT FTLING PAGE 1
1 The Company requests that this filing be processed under the Commission's
Modified Procedure Rules (RP 201-204) through the use of written comments.
Communications in reference to this Application should be addressed to:
David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
Avista Corporation
P.O.Box3727
MSC-IO
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
David.Meyer@avistacorp. com
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Patrick Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O.Box3727
MSC-27
l4l I E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
Pat. ehrbar@ avi stacorp. com
Electronic
Dockets@avistacorp. com
28 II. BACKGROT]ND
29 The electric Residential and Farm Energy Rate Adjustment results from an
30 Agreement between the Company and Bonneville Power Administration (BPA). The
31 Residential Exchange Program provides a share of the benefits of the federal Columbia
32 River power system to the residential and small-farm customers of the six investor-owned
33 utilities of the Pacific Northwest, including Avista.
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AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE
ADruSTMENT FILING PAGE 2
I IIL DRIVERS OF TIIE RESIDENTIAL AND SMALL FARM ENERGY RATE
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ADJUSTMENT CREDIT
Under the current Residential Exchange rate adjustment, approximately $4.2
million annually is being passed through to applicable Idaho customers through a uniform
0.336f, per kilowatt-hour rate credit. This rate was approved by the Idaho Public Utilities
Commission effective October 1,2020 in Order No. 34795.
The proposed rate credit of 0.3191 per kilowatt-hour is designed to pass through
approximately $4.1 million which represents the Idaho portion of the annual level of BPA
benefits, offset by the over-refunded balance from the prior year, starting in October 2021.
The level of BPA benefits is approximately $0.2 million less than what is currently being
passed back to customers in rates today. That amount, however, is offset by an over-
refunded balance from the prior year of approximately $0.06 million, which is due to actual
usage being higher than what was projected in the Company's 2020 filing. The table below
details the year over year differences between the benefit included in current rates and the
proposed benefit included in this filing.
Table No. 1- Level of Rate Credit
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Idaho porti@ ofbco€ft @ornt
Estimated over(rudcr) refinded balace
Raresrrc Cour,trsina factor
Ranemrc Requiremec
2021
Proposeds (4.553.350)s 513.917$ 07,665)
2020
keseot
$ (4,740,287) S
$ 574,500 S
$ (22.832) S
Chmge
186.937
(60,583)
5.167
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$ (4,057,098) S (4,188,620) S 131.522
The Company is therefore proposing an overall increase of $0.1 million or 0.1%
for qualiffing customers. The change in rate credit has no effect on Avista's net income.
AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE
ADJUSTMENT FILING PAGE 3
1 IV. PROPOSED RATES TO BE EFFECTTVE OCTOBER 1.2021
2 The Company is proposing a per kilowatt-hour Residential and Small Farm Energy
3 Rate Adjustment credit rate of 0.3191, for rate schedules l, 12,22,32, and 48 to become
4 effective October I,2021. Attachment A to this Application provides the Residential and
5 Small Farm Energy Rate Calculation. Attached as Exhibit "A" is a copy of the proposed
6 tariff, Schedule 59, which contains the proposed Residential and Small Farm Energy rates
7 discussed earlier in this Application. Exhibit "A" also includes the proposed changes to
8 Schedule 59 in strike-out/underline format. Residential customers using an average of 892
9 kilowatt-hours per month would see their monthly bills increase from $85.63 to $85.78, an
l0 increase of $0.15 per month, or 0.2Yo.
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12 V. COMMUNICATIONS AND SERVICE OF APPLICATION
13 In conformance with RP 125, this Application will be brought to the attention of
14 the Company's customers. Included in this filing is the form of Press Release which will
l5 be issued on July 30,2021, as well as the form of CustomerNotice which will be included
16 in customer's bills beginning in early August 2021 and run for a full billing cycle.
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18 VI. REOUEST FOR RELIEF
19 The Company requests that the Commission issue an order approving a per
20 kilowatt-hour Residential and Small Farm Energy credit rate of 0.319(, for rate schedules
21 1,12,22,32,and48 to become effective October 1,2021. The Residential and Small Farm
22 Energy credit represents a $0.1 million, or O.lYo, increase to qualiffing customers. The
AVISTA'S ELECTRIC RESIDENTIAL AND SMALL FARM ANNUAL RATE
ADruSTMENT FILING PAGE 4
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Company roquests that the mafier be processed under the Commission's Modified
Prccedure rules th;rough the useof written comments
Datd at Spokane, Washington this 306 day of July 2021.
AVISTA CORPORATION
BY /s/ DwidJ. Maw
DavidJ. Meyer
Vice President and Chief Counsel for
Regulatory and Governmental Affairc
Avista Corporatiou
AYISTA'S ELECTRIC RESIDENTTAL AhID SMALL FARM A}.INUAL RATE
ADruSTMENT FILING PAGE 5
lmportant Notice for ldaho Electric and Natural Gas Customers
(August 2021)
DRAFT
Avista has made annual rate adjustment filings with the ldaho Public Utilities Commission (IPUC or
Commission) that if approved, are designed to increase overall electric revenues by approximately $1.0
million or 0.4o/o effective Oct. 1, 2021 and increase overall natural gas revenue by approximately $0.3 million
or 0.4o/o effective Nov. 1, 2021. These annual filings have no impact on Avista's earnings.
Electric Adjustment Filings
Four annual electric adjustments were filed, that if approved, are designed to change overall electric
revenues effective Oct. 1, 2021 as follows:
1. Power Cost Adjustment (PCA): an increase of approximately $7.2 million or 2.8Yo2. Fixed Cost Adjustment (FCA): a decrease of approximately $0.7 million or 0.3%3. Electric Energy Efficiency: a decrease of approximately $5.6 million or 2.2o/o4. Bonneville Power Administration (BPA) Residential Exchange Program: an increase of
approximately $O.t million or 0.1o/o
When combined, the four requests are designed to increase overall electric revenue by approximately $1.0
million or 0.4% effective Oct. 1,2021.
Natural Gas Adjustment Filing
The natural gas adjustment request is the annual natural gas FCA. lf approved, Avista's request is designed
to increase overall natural gas revenues by approximately $0.3 million or 0.4o/o effective Nov. 1 ,2021.
Gustomer Bills Resulting from these Filings
lf the electric PCA, FCA, energy efficiency and BPA filings are approved, residential electric customers in
ldaho using an average of 892 kilowatt hours per month would see their monthly bills decrease from $85.63
to $84.09, a decrease of $1.54 per month, or approximately 1.8%. The proposed electric rate change would
be effective Oct. 1,2O21.
The requested electric rate change by rate schedule are as follows:
lf the natural gas FCA filing is approved, residential natural gas customers in ldaho using an average of 63
therms per month would see their monthly bills increase from $49.49 to $49.67, an increase of $0.18 per
month, or approximalely 0.4o/o. The proposed natural gas rate change would be effective Nov. 1 ,2021.
The net effect, on a revenue basis, for the requested natural gas rate change by rate schedule are:
Residential Service - Schedule 1
General Service - Schedules 11 & 12
Large General Service - Schedules 21 &22
Extra Large General Service - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 31 & 32
Street & Area Lights - Schedules 4149
Overall
General Service - Schedule 101
Large General Service - Schedules 111 & 112
lnterruptible Service - Schedules 131 & 132
Transportation Service - Schedule 146
Overall
-1.8%
1.8o/o
3.0o/o
2.3o/o
2.5o/o
2.2o/o
-1.O%
0.4oh
0.40/o
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0.0%
0.4o/o
Power Gost Adjustment (PCA)
The PCA is an annual rate adjustment made to reflect the difference between the actual cost of generating
and purchasing electric power to serve customers and the cost currently included in customer rates. Over
the last year, power supply costs have been primarily higher than those included in retail rates due to higher
wholesale electric and natural gas prices.
Fixed Cost Adjustment (FCA)
The electric and natural gas FCA is a mechanism designed to break the link between a utility's revenues
and customers' energy usage. Avista's actual revenue, based on kilowatt hour or therm sales, will vary, up
or down, from the level included in a general rate case and approved by the Commission. This could be
caused by changes in weather, energy conservation or other factors. Generally, under the FCA, Avista's
revenues are adjusted each month based on the number of customers. The annual difference between
revenues based on sales and the number of customers is surcharged or rebated to customers beginning
in the following year.
The proposed FCA rate adjustments in 2021 are primarily driven by variations in 2020 customer usage
related to weather and the COVID-19 pandemic where a higher level of residential customer usage was
partially offset by a lower level of non-residential customers usage. The FCA mechanisms do not apply to
Avista's Electric Extra Large General and Street Lighting Service Schedules, nor to its Natural Gas
lnterruptible and Transportation Service Schedules.
Energy Efficiency Adjustment
The energy efficiency adjustment is related to the funding of Avista's electric energy efficiency programs.
This annual adjustment aligns the amount that is collected in customer rates with the actual costs to run
and deliver the programs. Avista's programs are based on providing a financial incentive or rebate for cost-
effective energy efficiency measures. Over the last year, the amount collected in customer rates exceeded
the actual costs to run and deliver the programs.
Residential Exchange Adjustment
The Residential Exchange Program provides a share of the benefits of the federal Columbia River power
system to the residential and small farm customers of the investor-owned utilities in the Pacific Northwest,
including Avista. Avista applies the benefits it receives, which typically fluctuate from year to year, to
customers as a credit in their monthly electric rates. The benefit Avista will receive from BPA starting in
October 2021 will result in a slightly lower level of benefits than is currently being passed through to
qualifying customers.
Rate Application Procedure
The Company's applications are proposals, subject to public review and a Commission decision. Copies of
the applications are available for public review at the offices of both the Commission and Avista, and on the
Commission's website (www.ouc.idaho.qov). Customers may file with the Commission written comments
related to the Company's filings. Customers may also subscribe to the Commission's RSS feed
(http://www.ouc.idaho.qov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the case. Copies
of rate filings are also available on our website, www.mvavista.com/rates.
lf you would like to submit comments on the proposed rate change, you can do so by going to the
Commission website or mailing comments to:
ldaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720{,074
Avista offers a number of programs and services to help customers manage their energy use and costs.
Visit www.myavista.com for information on these programs which include Comfort Level Billing, bill payment
options, automated payment service, assistance programs, conservation tips, and energy efficiency
rebates.
AVA4SOi
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 59
RESIDENTIALAND FARM ENERGY RATE ADJUSTMENT. IDAHO
APPLICABLE:
To Residential Customerc in the State of ldaho where Company has electric
service available. This rate adjustment results from an Agreement between the
Compan y an d Bon n evi I le Power Ad mi n istration (B PA) coveri n g Residen tial
Exchange Prcgram benefits. The rate adjustment in this schedule shall be
applicableto customers served underSchedules 1,12,22,32 and 48.
MONTHLY RATE:
The energycharyes for al! blocks of electric Schedules1,12,22 and32 and
the charges for area lights based on the energy usages of the lights on Schedu !e
48 are to be reduced by 0.3190 per kwh.
SPECIAL TERMS AND CONDITIONS:
The rate adjustment underthis schedule is subjectto revision to reflect the
true up frcm estimated to actual benefits and to reflect projected future benefits. ln
the eventthe credits applied underthis schedule exceed the benefits, the
Companywill adjust the rate on this schedule to recover that difference.
The eneryycredit applied to Schedule 32 forfarm inigation and pumping
Ioad, foreach billing period, shallnotexceed the amountof energydetermined by
the following formula:
400 x 0.746 x days in the billing period x 24
ln no instance shall any qualiffing inigation and pumping load for any month
exceed 222,000 kwh.
Service underthis schedule is subjectto the Rules and Regulations
contai n ed i n th is tariff.
The above rate is subject to the provisions of Tax Adjustment Schedule 58.
lssued: July 30, 2021 Effective: October1, 2021
Twenty-First Revision Sheet 59
Canceling
Twentieth Revision Sheet 59l.P.U.C. No.28
lssued by Avista Utitities
By Patrick Ehrbar - Director of Regulatory Affairs
AVISTA CORPORATION
dbaAvista Utilities
lssued: July 31, 2020 Effective: Octoberl, 2020
LP.U.C. No.28
Twentieth Revision Sheet 59
Canceling
Nineteenth Revision Sheet 59
SCHEDULE 59
RESIDENTIALAND FARM ENERGY RATE ADJUSTMENT - IDAHO
APPLICABLE:
To Residential Customers in the State of ldahowhere Company has electric
service available. This rate adjustment results frcm an Agreement between the
Compan y an d Bon n evi I le Power Ad mi n istration (B PA) coveri n g Residential
Exchange Program benefits. The rate adjustment in this schedule shall be
applicableto customers served underSchedules 1,12,22,32 and 48.
MONTHLY RATE:
The energy charges for all blocks of electric Schedules1,12, 22 and 32 and
the charges for area lights based on the energy usages of the lights on Schedule
48 are to be reduced by 03366 per kWh.
SPECIAL TERMS AND CONDITIONS:
The rate adjustment underthis schedule is subjectto revision to reflect the
true up fnrm estimated to actual benefits and to reflect projected future benefits. ln
the eventthe credits applied underthis schedule exceed the benefits, the
Compan y wi I I adju st th e rate on th is sch edu le to recover th at d ifferen ce.
The energycredit applied to Schedule32lorlarm inigation and pumping
load, foreach billing period, shallnotexceed the amountof energydetermined by
the following formula:
400 x 0.746 x days in the billing period x 24
ln no instance shallanyqualiffing inigation and pumping load for any month
exceed 222,000 kwh.
Service underthis schedule is subjectto the Rules and Regulations
contained in th is tariff.
The above rate is subjectto the provisionsof Tax AdjustmentSchedule53
lssued by Avista Utitities
By Patrick Ehrbar - Director of Regulatory Affairs
AVISTA CORPORANON
dba Avista Utilities
Effective: Octoberl, 2021lssued: July 30, 2021
l.P.U.C. No.28
Twenty-First Revision Sheet 59
Canceling
Twentieth Revision Sheet 59
SCHEDULE 59
RESIDENTIAL AND FARM ENERGY RATE ADJUSTMENT . IDAHO
APPLICABLE:
To Residential Customers in the State of ldaho where Company has electric
service available. This rate adjustment results from an Agreement between the
Company an d Bon n evi I le Power Admi n istration (B PA) coveri n g Residential
Exchange Pnrgram benefits. The rate adjustment in this schedule shall be
applicable to customers served underSchedules 1,12,22,32 and 48.
MONTHLY RATE:
The energy charges for all blocks of electric Schedules1,12,22 and32 and
the charges for area lights based on the energy usages of the lights on Schedu le
48 are to be reduced by 0.319d per kWh.
SPECIAL TERMS AND CONDITIONS:
The rate adjustment underthis schedule is subjectto revision to reflect the
true up from estimated to actual benefits and to reflect projected future benefits. ln
the eventthe credits applied underthis schedule exceed the benefits, the
Companywill adjust the rate on this schedule to recover that difference.
The energy credit applied to Schedule 32 forfarm inigation and pumping
Ioad, for each billing period, shall notexceed the amountof energy determined by
the following formula:
400 x 0.746 x days in the billing period x 24
ln no instance shall any qualiffing inigation and pumping load for any month
exceed 222,OOO kwh.
Service underthis schedule is subjectto the Rules and Regulations
contained in this tariff.
The above rate is subject to the prcvisions of Tax Adjustment Schedule 58
lssued by Avista Utitities
By Patrick Ehrbar - Director of Regulatory Affairs