20220729Application.pdf

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Avista Corp.
141 1 East Mission P.O. Box3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
July 29,2022
Commission Secretary
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Idaho Public Utilities Commission
11331 W. Chinden Blvd. Building 8, Suite 201-A
Boise, Idaho 83702-5983
RE: Case No. AYU-E-22-11
Power Cost Adjustment (PCA) Annual Rate Adjustment Filing of Avista Corporation
Dear Commission Secretary :
Attached for electonic filing with the Commission is the annual Power Cost Adjustuent Rate
Filing.t
The Company is requesting that the Commission issue an order approving recovery of power costs
deferred for the period July 1, 2021 through June 30, 2022, and approving a PCA surcharge of
0.1501 per kilowatt-hour to be effective October 1,2022. Under the Company's proposal, the PCA
surcharge rate for all customers, including residential customers, would decrease from an existing
surcharge rate of 0.251f, per kilowatt-hour to a proposed surcharge rate of 0.1501 per kilowatt-
hour, or a decrease in the rate of 0. I 01 f per kilowatt-hour. Since PCA rate adjustnents are spread
on a uniform cents per kilowatt-hour basis, the resulting percentage change varies by rate schedule.
The overall decrease is approximately $3.1 million or 1.2%o. Residential customers using an
average of 892 kilowatt-hours per month would see their monthly bills decrease from $86.29 to
$85.39, a decrease of $0.90 per month, or l.0o/o.
Certain supporting documents are CONFIDENTIAL, rendering these documents exempt from
public inspection, examination and copying pursuant to Sections 74-l0l through 74-126 of the
I CaseNo. GNR-U-20-01, OrderNo. 35375
Idaho Code. Avista believes that the identified CONFIDENTLAL supporting documents contain
valuable commercial information.
As such, Avista is submitting a separate electronic filing containing the electronic form of the
CONFIDENTIAL supporting documents, in compliance with Rule 067.02.b.
Please direct any questions regarding this filing to Annette Brandon at [phone] or Kaylene
Schultz at [phone].
Sincerely,
/s/ ?atrick Ehrbar
Patrick D. Ehrbar
Director of Regulatory Affairs
Enclosures
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have served Avista Corporation's annual Power Cost
Adjustment (PCA) Annual Rate Adjustment Filing by electronic mail a copy thereof to
the following:
Commission Secretiary
ldaho Public Utilities Commission
11331W. Chinden Blvd.
Building 8, Suite 201-A
Boise, lD 83714
Ronald L. Williams
Willams Bradbury, P.C.
P.O. Box 368
Boise, lD 83701
ron@wil liamsbradbu rv.com
Terry Borden
Clearwater Paper
601 W. Riverside Ave. Suite 1100
Spokane, WA 99201
Terrv. Bord en@clea rwaterpaper. com
Peter J. Richardson
Richardson Adams PLLC
515 N.27s Street
Boise, lD 83702
Peter@ richa rdsonadam s. com
Benjamin J. Otto
ldaho Conservation League
710 N. 6h Street
Boise, lD 83702
botto@ ida hoeonservation.o rq
Dr. Don Reading
6070 Hill Road
Boise, ldaho 83703
d read ino@m indsprinq.com
Larry A Crowley
The Energy Strategies lnstitute lnc
5549 S. Cliffsedge Ave
Boise, lD 83716
Email: [e-mail]
( Excluding Confi dential ! nformation )
Dated at Spokane, Washington this 29ft day of July 2022.
/s/ Paul Kimball
Paul Kimball
Manager Regulatory Compliance & Discovery
I DAVID J MEYER
2 VICE PRESIDENT AND CHIEF COUNSEL FOR3 REGULATORY & GOVERNMENTAL AFFAIRS
4 AVISTA CORPORATION
5 I4I I E. MISSION AVENUE6 P. O. BO){ 3727
7 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 POWER COST )
ADruSTMENT (PCA) ANNUAL RATE )
ADruSTMENT FILING OF AVISTA )CoRPoRATION )
CASE No. AW-E-22-11
APPLICATION OF AVISTA
CORPORATION
19 I. INTRODUCTION
zo In accordance with ro*oFuu* 052, Avista corporation, doing
2l business as Avista Utilities (hereinafter o'Avista" or o'Company"), at l4ll East Mission
22 Avenue, Spokane, Washington, respectfully files its Power Cost Adjustrnent (PCA) annual
23 rate adjustment filing in the above referenced case. The Company requests the Commission
24 issue an order approving the level of power costs deferred in the surcharee direction for the
25 period July l, 2021 through June 30, 2022, and approving a PCA surcharge rate of 0.1501
26 per kilowatt-hour to be effective October 1,2022. The Company requests that this filing
27 be processed under the Commission's Modified Procedure Rules through the use of written
28 comments.
29 Communications in reference to this Application should be addressed to:
AVISTA'S PCA ANNUAL RATE ADruSTMENT FILING PAGE T
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David J. Meyer, Esq.
Vice president and Chief Cot nsel for
Regulatory & Govenrmental Affairs
Avista Corporation
P.O.Box3727
MSC-10
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone],6
David.Meyer@avistacorp. com
Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O.Box3727
MSC-27
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
P atrick. Ehrbar@avistacorp. com
Electronically
Dockets@Avistacorp. com
II. BACKGROUND
Avista's PCA is used to track changes in revenues and costs associated with
variations in hydroelectric generation, secondary prices, thermal fuel costs, and changes in
power contract revenues and expenses. Avista's existing PCA methodology and method
of recovery were approved in Case No. AW-E-07-01 by Order No. 30361 dated June 29,
2007. In that case, the Commission approved a change in the PCA methodology from a
trigger and cap mechanism to a single annual PCA rate adjustnent filing requirement.
The Commission also approved a change in the method of the PCA deferral rate
adjustment from a uniform percentage basis, to a uniform cents per kilowatt-hour basis
effective with the October 1,2007 PCA rate change. By Order No. 32206 in Case No.
AVISTA'S PCA ANNUAL RATE ADruSTMENT FILING PAGE 2
I GNR-E-10-03 dated March 15, 201l, the Commission modified the retail revenue credit
2 methodology and approved a Load Change Adjustment Rate based on the energy classified
3 portion of embedded production revenue requirement effective April 1, 2011.
4 The Commission approved the following procedural schedule for administering the
5 annual PCA filings:
6 August 1 Company filing for prior July - June deferral period
7 September I Review and comments by Staffand other interested parties
8 October 1 Commission Order and effective date of PCA rate
9 adjustment
l0 The present PCA surcharge was made effective on October 1,2021. On July 30,
11 202I, in Case No. AVU-E-21-09, Avista filed its annual PCA rate adjustment for the
12 deferral period July 1, 2020 through June 30,2021 and requested a PCA surcharge rate of
13 0.251i, per kilowatt-hour, based on an overall surcharge of approximately $7.7 million,
14 effective October l, 2021. That surcharge will end on September 30, 2022. The
15 Commission approved that application in OrderNo. 35184, dated September 30, 2021.
16 The proposed PCA rate adjusfrnent of 0.150p per kilowatt-hour would surcharge to
17 customers approximately $4.6 million effective October 1,2022. The surcharge is primarily
18 associated with power supply costs that were higher than those included in retail rates, due
19 to higher wholesale electric and natural gas prices. The net effect of the expiring surcharge,
20 and the proposed surcharge, is an overall decrease in revenue of approximately 1.2 percent,
2l or $3.1 million.
AVISTA'S PCA ANNUAL RATE ADruSTMENT FILTNG PAGE 3
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1 III. DEFERRALS -JULY 1.2021 TIIROUGH JUNE 30.2022
2 The amount of power cost deferrals for the period July 1, 2021 through June 30,
3 2022 is shown below, as well as interest for the same period. Company witress Ms.
4 Brandon's testimony provides an explanation of the factors causing the deferral entries for
5 the period. Company witness Ms. Schultz's testimony addresses the deferral, Renewable
6 Energy Credit Benefit, and interest amount.
10 Monthly reports have been filed with the Commission regarding actual PCA
11 deferral entries to date. An additional copy of those reports for the months of July 2021
12 through Jvne 2022 has been included with this filing and has also been provided to
13 Clearwater Paper Corporation and Idaho Forest Group.
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15 ry. PROPOSED RATE TO BE EFFECTIYE OCTOBER 1.2022
16 The Company is proposing a uniform cents per kilowatt-hour PCA surcharse rate
17 of0.1501 to be effective October L,2022. See page I ofMs. Schultz's ExhibitNo. IUS-I
18 for the calculation of the proposed rate. Attached to this Application as Exhibit "A" is a
19 copy of the proposed tariff, Schedule 66, which contains the proposed PCA rate. Exhibit
20 "A" also includes the proposed changes to Schedule 66 in strike out/underline format. The
2t proposed rate is designed to surcharge the following:
Lterest
Total Defenal Bahrce
$
E
$
Rereuabh Credit Retierefr Bereft I I
DeEnah (July202l - Jure 2022)4,907,1ll
AVISTA'S PCA ANNUAL RATE ADruSTMENT FILING PAGE 4
Deftnab (July202l - Jtne 2022)
RPS Coryliarce
Rerewable Ererry Credit Retirerrent Bercft
TotdDeftrralBahrce
Unamortized Balarce tomPrevious DeGrrab (prior to July l, 2021)
Llerest
Total Remainiry Arnortization Bahnce
Projected Amortizationad Total hlere$ (Jnty 2022-Se$ember 2022)
$
$
$
4237.309
$
$
$
2,122,023
(t,772,7 s
TOTAL BALANCE FOR AMORTZATION 4.586,574
$
$
$
4907.11t
42385
(7 tz,t
JW 2O2l - hre 2022
7,702,872
(s,639,772)
58923
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After applying the conversion factor related to commission fees and uncollectible
customer accounts, the resulting balance of $4,606,631 is divided by forecasted kilowaff-
hours to derive the proposed surcharge rate of 0.150p per kilowatt-hour.l
Since PCA rate changes are spread on a uniform cents per kilowatt-hour basis, the
resulting percentage decreases vary by rate schedule. Page I of Ms. Schultz's Exhibit No.
zuS-l shows the effect of the proposed PCA surcharge by rate schedule. The overall
decrease in revenue, after accounting for the expiration ofthe existing surcharge, and the
new surcharge, is $3.1 million or 1.2%.
Residential customers using an average of 892 kilowatt-hours per month would see
their monthly bills decrease from $86.29 to $85.39, a decrease of $0.90 per month, or l.0o/o.
V. REOUEST FOR RELIEF
The Company requests that the Commission issue an order approving power costs
deferred for the period July l, 2021 through June 30, 2022, and approving a PCA surcharge
I Total Balance for Amortization $4,586,574 divided by conversion factor 0.995646 : $4,606,631
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AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILTNG PAGE 5
I rate of 0.1501 per kilowatt-hour to be effective October 1,2022. Under the Company's
2 proposal, the PCA rate for all customers, including residential customers, would decrease
3 from a surcharge rate of 0.25 I I per kilowatt-hour to a surcharge rate of 0.1501 per kilowatt-
4 hour. Since PCA rate adjustnents are spread on a unifonn cents per kilowatt-hour basis,
5 the resulting percentage decrease varies by rate schedule. The overall decrease is
6 approximately $3.1 million or 1.2%o. The Company requests that the matter be processed
7 under the Commission's Modified Procedure rules through the use of written comme,nts.
8 Dated at Spokane, Washington this 29th day of Jily 2022.
9 AVISTA CORPORATION
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By:/V David J. Meyer
David J. Meyer
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
AVISTA'S PCA ANNUAL RATE ADruSTMENT FTLING PAGE 6
Case No. AVU-E-2Z-p
2022ldaho PCA Filing
Exhibit ,.A)'
LP.U.C. No.28
lssued by
By
Twenty-fourth Revision Sheet 66
Canceling
Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1 , 11, 12, 21, 22, 25, 25P, 31 , 32, and
4149 are to be increased by 0.1500 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 29,2022 Effective October1,2022
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs
l.P.U.C. No.28
lssued by
By
Twenty-third Revision Sheet 66
Canceling
Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21 , 22, 25, 25P,31 , 32, and
41-49 are to be increased by 0351$ per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 30,2021 Effective October1,2021
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs
l.P.U.C. No.28
lssued by
By
Twenty-fourth Revision Sheet 66
Canceling
rd Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT . IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retailcustomers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1 , 11 , 12, 21, 22, 25, 25P, 31, 32, and
41-49 are to be increased by 0.1500 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 29,2022 Effective October1,2022
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs