20220816Decision Memo.pdf

DECISION MEMORANDUM 1

DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: YAO YIN
RILEY NEWTON, DEPUTY ATTORNEY GENERAL

DATE: AUGUST 16, 2022

RE: IN THE MATTER OF AVISTA CORPORATION’S COMPLIANCE
FILING TO UPDATE AND ESTABLISH ITS CAPACITY DEFICIENCY
PERIOD TO BE USED FOR AVOIDED COST CALCULATIONS; CASE
NO. AVU-E-22-02.

BACKGROUND
On July 15, 2022, the Commission issued Order No. 35466, approving an updated first
capacity deficit date of December 1, 2026, for Avista Corporation dba Avista Utilities
(“Company”) for calculating the Public Utility Regulatory Policies Act of 1978 (“PURPA”)
avoided cost rates.
On August 2, 2022, Staff updated the Surrogate Avoided Resource (“SAR”) Model and
the published avoided cost rates, using the updated capacity deficit information, and sent both the
Model and the rates to the Company for verification.
On August 3, 2022, the Company filed a Letter of Agreement with the Commission,
agreeing with Staff’s calculations.
STAFF ANALYSIS
Because the updated first capacity deficit date was approved on July 15, 2022, Staff
believes it is reasonable to approve the published avoided cost rates with a retroactive effective
date of July 15, 2022.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the rates with a retroactive effective date
of July 15, 2022.
DECISION MEMORANDUM 2

COMMISSION DECISION
Does the Commission wish to approve the updated published avoided cost rates, calculated
by Staff on August 2, 2022, with a retroactive effective date of July 15, 2022?

_____________________________
Riley Newton
Deputy Attorney General

AVUE2202_memo2_rn