20230427Final_Order_No_35757.pdf

ORDER NO. 35757 1

Office of the Secretary
Service Date
April 27, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE ELECTRIC LINE
EXTENSION SCHEDULE 51 ANNUAL RATE
ADJUSTMENT FILING OF AVISTA
CORPORATION
)
)
)
)
CASE NO. AVU-E-23-03

ORDER NO. 35757

On March 1, 2023, Avista Corporation dba Avista Utilities (“Company”) filed an
application (“Application”) with the Idaho Public Utilities Commission (“Commission”)
requesting approval to update costs and make administrative changes to the Company’s Electric
Line Extension Schedule 51 (“Schedule 51”). The Company requested a May 1, 2023, effective
date.
On March 21, 2023, the Commission issued a Notice of Application and Notice of
Modified Procedure establishing public comment and Company reply deadlines. Order No. 35710.
On April 12, 2023, Commission Staff (“Staff”) filed comments. The Company did not file any
reply. Having reviewed the Application, the record, and party comments, we now issue this Order
approving the Company’s Application.
THE APPLICATION
The Company represented that Schedule 51 incorporates average costing for electrical
facilities commonly used to extend service. The Company stated Schedule 51 sets forth “Basic and
Exceptional Costs” that have fixed and variable components, with the variable component being
stated on a cost-per-foot basis and consistently used for electric line extensions. Application at 2.
The Company represented that average costing has worked well, and the Company did not propose
changing the conceptual structure of the tariff.
The Company’s proposal updated the allowances applicable to new residential,
commercial, and industrial customer services. The Company planned to continue using an
embedded cost method for calculating the revised allowances “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. at 3. The embedded cost calculation was
derived from the Cost of Service Study (“COSS”) in the Company’s most recent rate case, Case
No. AVU-E-21-01. Table No. 1 below summarized the proposed allowance changes:

ORDER NO. 35757 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

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%

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. The Company provided three examples of increased costs for electrical
infrastructure between December 2021 and December 2022; these examples illustrate cost
increases of 151%, 158.9%, and 183.5% for those respective examples. Id. at 5.
ORDER NO. 35757 3

The Company proposed updating 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

STAFF COMMENTS
Staff believed the Company’s method for calculating average costs was consistent with
past Schedule 51 filings and the proposed construction allowances were reasonable based on
embedded line extension costs from the last general rate case. Staff agreed the Company utilized
its COSS based upon the most up-to-date information. Staff evaluated the Company’s claims and
accompanying data concerning the increased costs of labor and materials, and Staff believed the
Company’s proposed corresponding increased costs were reasonable. However, Staff proposed
changes regarding the quality and type of data required for the Company’s future applications:
Staff recommends that the Company clearly identify the hours, materials, and
vehicle support it assumed for each type of line extension work, it identify any
changes from the previous year, and it provide evidence and justification for the
changes. Specifically, Staff recommends that the Company provide actual work
order examples for each type of line extension work to provide confirmation of the
standard estimates.
Staff Comments at 5.
Staff believed the Company’s customer notice, which was attached to the Application,
allowed enough time for customer feedback and met all other requirements of Idaho Public
Utilities Commission Rule of Procedure 125. Staff believed the Company’s proposals were
reasonable and conformed with Commission Order No. 28562. Staff recommended that the
Company’s proposed costs be approved.
ORDER NO. 35757 4

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,
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, all submitted materials, and
comments. Based on its review of the record, the Commission finds it fair, just, and reasonable to
approve the Company’s Application effective May 1, 2023. The Commission notes Staff’s request
that future filings “clearly identify the hours, materials, and vehicle support the Company assumed
for each type of line extension work, identify any changes from the previous year, provide evidence
and justification for the changes, and provide actual work order examples for line extension work.
. . .” Staff Comments at 5. The Commission believes that providing this information in future
filings will allow the Commission and Staff to maintain a robust understanding of the Company’s
application and the factual landscape. Accordingly, the Commission orders that this information
be included in the Company’s future Electric Line Extension Schedule 51 filings.
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 May 1, 2023.
IT IS FURTHER ORDERED that the Company’s future filings shall clearly identify the
data requested above in future Electric Line Extension Schedule 51 filings.
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. 35757 5

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 27th day of
April 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\AVU-E-23-03 Sch 51\orders\AVUE2303_Final_md.docx