20230419Notice_of_Application_Order_No_35747.pdf

NOTICE OF APPLICATION
NOTICE OF SUSPENSION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35747 1

Office of the Secretary
Service Date
April 19, 2023

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On March 31, 2023, Avista Corporation, d/b/a Avista Utilities (“Avista” or “Company”)
applied for authority to modify its annual Power Cost Adjustment mechanism (“PCA”) to account
for costs associated with Washington’s Climate Commitment Act (“CCA”) allowances.
Application at 1.
The Company requested its Application be processed by Modified Procedure with an
effective date of June 1, 2023. Staff conferred with the Company regarding its requested effective
date in the Application, and the Company informally agreed to a proposed effective date of
September 1, 2023, which was presented to the Commission at its April 10, 2023 Decision
Meeting.
We now issue this Notice of Application, Notice of Suspension of Proposed Effective Date,
and Notice of Intervention Deadline setting a deadline for interested persons to intervene.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company reports the CCA requires carbon
allowances “to cover the carbon emission of imported power and generation from Washington-
based sources emitting 25,000 metric tons or more annually.” Id. at 2.
YOU ARE FURTHER NOTIFIED that the CCA’s carbon allowance requirement impacts
Idaho customers because it applies to “Boulder Park (“Boulder Park”) natural gas generation,
imported carbon emitting thermal generation (Colstrip, Lancaster, Rathdrum and Coyote Springs
IN THE MATTER OF AVISTA’S
APPLICATION FOR AN ACCOUNTING
ORDER TO MODIFY ITS POWER COST
ADJUSTMENT MECHANISM TO
ACCOUNT FOR COSTS ASSOCIATED
WITH WASHINGTON’S CLIMATE
COMMITMENT ACT ALLOWANCES
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CASE NO. AVU-E-23-04

NOTICE OF APPLICATION

NOTICE OF SUSPENSION

NOTICE OF INTERVENTION
DEADLINE

ORDER NO. 35747
NOTICE OF APPLICATION
NOTICE OF SUSPENSION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35747 2

2) for surplus sales at the Mid-Columbia (“Mid-C”) trading hub, and all non-specified electricity
imported into and for final delivery in Washington, for surplus market sales. Id. at 1-3.
YOU ARE FURTHER NOTIFIED that the Company proposes to allocate 35% of the
CCA’s carbon allowance costs to Idaho customers based on the Company’s
Production/Transmission Ratio (“PT Ratio”). Id. at 3.
YOU ARE FURTHER NOTIFIED the Company reports the “Washington State
Department of Ecology distributes CCA carbon allowance costs” based on the PT Ratio, and “these
allowances are granted at no cost” for “carbon emissions already regulated by Washington State’s
2019 Clean Energy Transformation Act (“CETA”).” Id. at 2-3.
YOU ARE FURTHER NOTIFIED that the Company reports Idaho customers benefit from
“off-system revenues from power sales at Mid-C” and these benefits exceed the expected carbon
allowance costs. Id. at 4. The Company indicates it is “pursuing additional methods to reduce costs
for Idaho customers” including “wheel through transactions” and “resource netting calculation” to
further offset Mid-C transaction costs. Id. at 4.
YOU ARE FURTHER NOTIFIED that the Company proposes to record carbon allowance
expenses for Idaho in its Federal Energy Regulatory Commission (“FERC”) Account 509.X
(Emission Expense Account) and include that amount in its PCA. Id. The Company proposes to
record off-system sales revenue in its FERC Account 447.X (Sales for Resale) to match expenses
with revenues related to the CCA requirements. Id. at 5.
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 APPLICATION
NOTICE OF SUSPENSION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35747 3

NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
YOU ARE FURTHER NOTIFIED that the Company filed its Application on March 31,
2023, and requested a proposed effective date of June 1, 2023. The Company subsequently agreed
to a proposed effective date of September 1, 2023.
YOU ARE FURTHER NOTIFIED the Commission finds that the Company’s proposed
effective date does not provide adequate time for Commission Staff and interested persons and
parties to evaluate the Company’s proposal. Pursuant to Idaho Code § 61-622, the Commission
suspends the Company’s proposed effective date until September 1, 2023, unless an order is
entered accepting, rejecting, or modifying the proposed rate increases before then.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to
obtain parties’ rights of participation must file a Petition to Intervene with the Commission
pursuant to this Commission’s Rules of Procedure 71-73, IDAPA 31.01.01.072-073. Persons who
wish to intervene as a party must file a Petition to Intervene no later than 21 days after the
date of service of this Order. Persons desiring to present their views without parties’ rights of
participation do not have to intervene and may present their comments without prior notification
to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice of
Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit
numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, Commission
Staff will informally confer with the parties to discuss a schedule to process this case and other
issues as may be raised by the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as the
Company’s representatives in this matter:
David J. Meyer, Esq.
P.O. Box 3727
1411 E. Mission Ave
Spokane, WA 99220-3727
[e-mail]

Patrick D. Ehrbar
P.O. Box 3727
1411 E. Mission Ave
Spokane, WA 99220-3727
[e-mail]
[e-mail]

NOTICE OF APPLICATION
NOTICE OF SUSPENSION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35747 4

ORDER
IT IS HEREBY ORDERED that the Company’s proposed effective date of June 1, 2023,
is suspended until September 1, 2023, unless the Commission enters its order accepting, rejecting,
or modifying the proposed rate changes before then.
IT IS FURTHER ORDERED that persons desiring to intervene in this case for the purpose
of obtaining parties’ rights of participation must file a Petition to Intervene with the Commission
no later than 21 days after the service date of this Order.
IT IS FURTHER ORDERED that, after the Secretary issues a Notice of Parties, Staff will
informally confer with the parties to discuss the appropriate scheduling of this case.
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 19th day of
April 2023.

__________________________________________
ERIC ANDERSON, PRESIDENT

__________________________________________
JOHN R. HAMMOND JR, COMMISSIONER

__________________________________________
EDWARD LODGE, COMMISSIONER
ATTEST:

___________________________________
Jan Noriyuki
Commission Secretary
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