20220331Notice_of_Application_Order_No_35360.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION
ORDER NO. 35360 1

Office of the Secretary
Service Date
March 31, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On March 11, 2022, Avista Corporation, d/b/a Avista Utilities (“Avista” or
“Company”) applied to the Idaho Public Utilities Commission (“Commission”) for approval to
update costs and administrative changes to its Electric Line Extension Schedule 51 (“Schedule
51”). Application at 1. The Company requested its Application be processed through Modified
Procedure with an effective date of May 1, 2022. Id.
The Commission now issues this Notice of Application and Notice of Modified
Procedure setting deadlines for public comments and the Company’s reply. The Commission
further issues this Notice of Suspension, suspending the Company’s proposed effective date until
June 15, 2022, in accordance with Idaho Code § 61-622(4).
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Schedule 51 incorporates average costing for
electrical facilities commonly used to extend service. Id. at 2. The Company states that Schedule
51 sets forth “Basic and Exceptional Costs” that have a fixed and variable component, with the
variable component stated on a cost-per-foot basis and are consistently used for electric line
extensions. Id. Avista included workpapers which provide support for the Company’s proposed
changes set forth in the Application. Id.
YOU ARE FURTHER NOTIFIED that the Company updated the allowances
applicable to new residential, commercial, and industrial customer services. Id. at 3. The Company
plans to continue using an embedded cost method for calculating the revised allowances “that is
IN THE MATTER OF THE ELECTRIC LINE
EXTENSION SCHEDULE 51 ANNUAL RATE
ADJUSTMENT FILING OF AVISTA
CORPORATION
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CASE NO. AVU-E-22-05

NOTICE OF APPLICATION

NOTICE OF MODIFIED
PROCEDURE

NOTICE OF SUSPENSION

ORDER NO. 35360
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION
ORDER NO. 35360 2

designed to ensure similar investment in distribution/terminal facilities as those in current facilities
reflected in base rates.” Id. The following table summarized the proposed allowance changes:
Service Schedule Existing Proposed
Schedule 1 Individual Customer (per unit) $ 1,900 $ 2,065
Schedule 1 Duplex (per unit) $ 1,520 $ 1,650
Schedule 1 Multiplex (per unit) $ 1,140 $ 1,240
Schedule 11/12 (per kWh) $ 0.15486 $ 0.16674
Schedule 21/22 (per kWh) $ 0.14218 $ 0.15360
Schedule 31/32 (per kWh) $ 0.24688 $ 0.26623

YOU ARE FURTHER NOTIFIED that the Company proposes to update the primary,
secondary, service and transformer average costs. Id. The following table summarizes the cost
changes:
Present Proposed % Change
Overhead Primary Circuit
Fixed Cost
Variable Cost

$ 4,677
$ 9.17

$ 4,521
$ 8.75

-3.3%
-4.6%
Underground Primary Circuit
Fixed Costs
Variable Costs

$ 1,920
$ 10.01

$ 1,958
$ 11.15

2.0%
11.4%
Underground Secondary Circuit
Fixed Costs
Variable Costs

$ 394
$ 8.60

$ 392
$ 11.55

-0.3%
34.3%
Overhead Secondary Circuit
Fixed Costs

$ 1,936

$ 1,843

-4.8%
Overhead Service Circuit
Underground Service Circuit

$ 4.27
$ 8.43
$ 3.96
$ 9.14
-7.3%
8.4%
Overhead Transformer
Padmount Transformer
$ 2,345
$ 3,477
$ 2,508
$ 3,597
7.0%
3.5%

YOU ARE FURTHER NOTIFIED that Avista asserts the primary driver of the increase
in variable underground primary and secondary costs are due to an increase in two and three inch
conduit costs in 2021. Id. The Company also represents that the demand for resin, the primary
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION
ORDER NO. 35360 3

component of conduit, has been higher than manufacturers can supply. Id. The Company
represents that 75% of all resin manufacturers are in Texas and were taken offline for over a month
in 2021 due to adverse weather. Id. at 5.
YOU ARE FURTHER NOTIFIED that the Company further asserts that residential
development costs are higher as shown in the following table:
Residential Developments Present Proposed
Total Cost per Lot
Less: Service Cost
$ 1,772
$ 422
$ 2,070
$ 458
Developer Responsibility $ 1,350 $ 1,612
Developer Refundable Payment $ 1,350 $ 1,612
Builder Non-Refundable Payment $ - $ 5
Allowance $ 1,900 $ 2,065

YOU ARE FURTHER NOTIFIED that the Company proposes to update its
terminology to change the term “Basic Cost” to “Basic and Exceptional Cost.” Id. The Basic and
Exceptional Cost will continue to cover all costs necessary to construct the line extension and will
not impact the price customers pay for line extensions. Id.
YOU ARE FURTHER NOTIFIED that the Application and proposed tariff sheets are
available for public inspection during regular business hours at the Commission’s office. These
documents 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.
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.
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.
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 will proceed under Modified Procedure
pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules of Procedure,
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION
ORDER NO. 35360 4

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 persons desiring to state a position on this
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 must file written comments by May 18, 2022. Comments must be
filed through the Commission’s website or by e-mail 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 Commission
Secretary and 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 J. Meyer, Esq.
Patrick Ehrbar
P.O. Box 3727
MSC-27
1411 E. Mission Ave
Spokane, WA 99220-3727
[e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
May 25, 2022
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 formal hearing.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION
ORDER NO. 35360 5

NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
YOU ARE FURTHER NOTIFIED that the Commission finds it appropriate to suspend
the Company’s proposed effective date of May 1, 2022, until June 15, 2022, unless the
Commission issues an earlier order accepting, rejecting, or modifying the Application. See Idaho
Code § 61-622(4).
O R D E R
IT IS HEREBY ORDERED that the Company’s Application be processed by Modified
Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written
comments must do so by May 18, 2022. The Company must file any reply comments by May 25,
2022.
IT IS FURTHER ORDERED that the Company’s proposed effective date is suspended
until June 15, 2022, in accordance with Idaho Code § 61-622(4).
IT IS FURTHER ORDERED that the parties should 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 between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION
ORDER NO. 35360 6

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 31st day
of March 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND, JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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