20220615Final_Order_No_35429.pdf

ORDER NO. 35429 1

Office of the Secretary
Service Date
June 15, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

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

ORDER NO. 35429

On March 11, 2022, Avista Corporation, d/b/a Avista Utilities (“Avista” or “Company”)
applied to the Idaho Public Utilities Commission (“Commission”) for approval of its update in
costs and administrative changes to the Company’s Electric Line Extension Schedule 51
(“Schedule 51”). The Company requested an effective date of May 1, 2022.
The Company represented that the Schedule 51 incorporated average costing for electrical
facilities commonly used to extend service. The Company stated that the 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. The Company included workpapers to provide support
for the proposed changes.
The Company updated the allowances applicable to new residential, commercial, and
industrial customer services, and planned to continue using an embedded cost method for
calculating the revised allowances. The Company submitted the following table of 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

The Company also proposed to update the primary, secondary, service, and transformer
average costs. The Company submitted the following table of proposed allowance cost changes:

ORDER NO. 35429 2

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%

The Company asserted that the primary driver of the increase in variable underground
primary and secondary costs were due to an increase in two inch and three inch conduit costs in
2021. The Company also represented that the demand for resin, the primary component of conduit,
had been higher than manufacturers could supply. The Company represented that 75% of all resin
manufacturers were in Texas and were taken offline for over a month in 2021 due to adverse
weather. The Company submitted the following table to show the residential development costs:
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

As an administrative change, the Company proposed to update its terminology to change
the term “Basic Cost” to “Basic and Exceptional Cost.” The Basic and Exceptional Cost would
continue to cover all costs necessary to construct the line extension and would not impact the price
customers paid for line extensions.
ORDER NO. 35429 3

On March 31, 2022, the Commission issued a Notice of Application, Notice of Modified
Procedure, and Notice of Suspension. Order No. 35360. The Commission set a public comment
deadline of May 18, 2022, and a reply comment deadline of May 25, 2022. The Commission also
suspended the proposed effective date until June 15, 2022, unless the Commission issued an earlier
order accepting, rejecting, or modifying the Application.
COMMENTS
A. Staff Comments
Staff reviewed the Company’s Application, the workpapers provided with the Application,
meetings and correspondence with the Company, and the Company’s responses to Staff’s
production requests. Based on its review, Staff believed the Company’s method for calculating
average costs was consistent with past Schedule 51 filings, and Staff believed that the proposed
construction allowances were reasonable based on embedded line extension costs from the last
general rates case. However, Staff proposed a change to the administrative changes the Company
proposed in the Application. Staff believed that the Company’s proposed terminology change from
“Basic Cost” to “Basic and Exceptional Cost” was confusing, and Staff worked with the Company
to develop clearer definitions and explanations of “Basic Costs” and “Exceptional Costs.”
Staff believed the Company’s proposals were reasonable and conformed with Commission
Order No. 28562, and Staff recommended that the Company’s proposed costs be approved. Staff
recommended that the new definitions of “Basic Cost” and “Exceptional Cost” be included in the
Company’s new Schedule 51 Tariff as a compliance filing.
B. The Company’s Reply Comments
The Company appreciated the collaborative effort between the Company and Staff to
develop separate definitions for “Basic Cost” and “Exceptional Cost” that provided greater clarity
and would reduce confusion for customers. The Company also supported Staff’s recommendation
that the Company submit a compliance filing updating the Schedule 51 tariffs with the separate
definitions following a Commission order.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company’s Application and the issues in this
case under Title 61 of the Idaho Code including, Idaho Code §§ 61-501, -502, and -503. The
Commission is empowered to investigate rates, charges, rules, regulations, practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
ORDER NO. 35429 4

discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code
§§ 61-501, -502, and -503.
The Commission has reviewed the Company’s Application including all submitted
materials, Staff comments, and Company reply comments. Based on its review of the record, the
Commission finds it fair, just, and reasonable to approve the Company’s Application with some
modifications. Specifically, the Commission finds that the Schedule 51 should be updated to
contain the new definitions for Basic Costs and Exceptional Costs as developed by Staff and the
Company.
ORDER
IT IS HEREBY ORDERED that the Company’s Application to update costs and
administrative changes to the Company’s Electric Line Extension Schedule 51 is approved with
an effective date of June 15, 2022.
IT IS FURTHER ORDERED that the Company shall file a compliance filing with an
updated Schedule 51 that contains the new definitions for Basic Costs and Exceptional Costs as
developed by Staff and the Company.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding 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 and 62-619.

ORDER NO. 35429 5

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 15th day of
June 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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