20230321Notice_of_Application_Order_No_35710.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35710 1

Office of the Secretary
Service Date
March 21, 2023

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On March 1, 2023, Avista Corporation dba Avista Utilities (“Company”) applied for
Commission approval to update costs and make administrative changes to the Company’s Electric
Line Extension Schedule 51(“Schedule 51”) (“Application”). The Company requested a May 1,
2023, effective date.
The Commission now issues this Notice of Application and sets deadlines for interested
persons to comment on the Application and for the Company to reply.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Schedule 51 incorporates average costing for
electrical facilities commonly used to extend service. The Company stated 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.
Application at 2. The Company represents average costing has worked well and also is not
proposing to change the conceptual structure of the tariff 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 designed
to ensure similar investment in distribution/terminal facilities for each new customer will be
similar to the embedded costs of the same facilities reflected in base rates.” Id. The embedded cost
calculation was derived from the Cost of Service study from Order No. 35156 in Case No. AVU-
E-21-01—the Company’s most recent rate case. Id. Table No. 1 below summarized the proposed
allowance changes:

IN THE MATTER AVISTA’S ANNUAL RATE
ADJUSTMENT FILING FOR ELECTRIC
LINE EXTENSION SCHEDULE 51
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CASE NO. AVU-E-23-03

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35710
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35710 2

Table No. 1
Service Schedule Existing Proposed
Schedule 1 Individual Customer (per unit) $ 2,065 $ 2,095
Schedule 1 Duplex (per unit) $ 1,650 $ 1,675
Schedule 1 Multiplex (per unit) $ 1,240 $ 1,260
Schedule 11/12 (per kWh) $ 0.16674 $ 0.16986
Schedule 21/22 (per kWh) $ 0.15360 $ 0.15731
Schedule 31/32 (per kWh) $ 0.26623 $ 0.27217

YOU ARE FURTHER NOTIFIED that the Company proposed “to update the primary,
secondary, service and transformer average costs.” Id. at 4 (emphasis added). Table No 2 below
summarized the cost changes:
Table No. 2
Present Proposed % Change
Overhead Primary Circuit
Fixed Cost
Variable Cost

$ 4,521
$ 8.75

$ 4,875
$ 9.63

7.8%
10.1%
Underground Primary Circuit
Fixed Costs
Variable Costs

$ 1,958
$ 11.15

$ 2,232
$ 13.07

14.0%
17.2%
Underground Secondary Circuit
Fixed Costs
Variable Costs

$ 392
$ 11.55

$ 600
$ 14.38

53.0%
24.5%
Overhead Secondary Circuit
Fixed Costs

$ 1,843

$ 1,976

7.2%
Overhead Service Circuit
Underground Service Circuit

$ 3.96
$ 9.14
$ 4.04
$ 11.41
2.0%
24.8%
Overhead Transformer
Padmount Transformer
$ 2,508
$ 3,597
$ 3,615
$ 7,598
44.1%
111.2%

YOU ARE FURTHER NOTIFIED the Company stated that high costs for labor, materials,
and transportation; the war in Ukraine; increased adoption and use of electric vehicles; and other
supply chain considerations have caused increases in the cost of electric steel, aluminum, resin,
thermos-plastics and other relevant building materials. Id. at 4-5. The Company provided three
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35710 3

examples of increased costs for electrical infrastructure between December 2021 and December
2022; these examples illustrated cost increases of 151%, 158.9%, and 183.5%. Id. at 5.
YOU ARE FURTHER NOTIFIED that the Company proposed to update its residential
development costs to reflect the most current Construction & Material Standards and average
construction costs as shown in Table No. 3 below:
Table No. 3
Residential Developments Present Proposed
Total Cost per Lot
Less: Service Cost
$ 2,070
$ 458
$ 2,947
$ 572
Developer Responsibility $ 1,612 $ 2,375
Developer Refundable Payment $ 1,612 $ 2,095
Builder Non-Refundable Payment $ 5 $ 852
Allowance $ 2,065 $ 2,095

YOU ARE FURTHER NOTIFIED that the Application is available for public inspection
during regular business hours at the Commission’s office. The Application and documents related
to this case 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 matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
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.
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 that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission’s Rules of Procedure, 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35710 4

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 must file comments by April 12, 2023. 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, persons 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, Idaho 83714

For Avista Corporation:

David J. Meyer
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
April 19, 2023.
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
accordingly. If written comments are received within the time limit set, the Commission will
consider them in making its final decision.
ORDER
IT IS HEREBY ORDERED that the Company’s Application be processed by Modified
Procedure, Rules 201-204. IDAPA 31.01.01.201 through .204. Persons interested in submitting
written comments must do so by April 12, 2023. The Company must file any reply comments by
April 19, 2023.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35710 5

IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 21st day of
March 2023.

__________________________________________
ERIC ANDERSON, PRESIDENT

__________________________________________
JOHN R. HAMMOND JR, COMMISSIONER

__________________________________________
EDWARD LODGE, COMMISSIONER
ATTEST:

___________________________________
Jan Noriyuki
Commission Secretary

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