20230523Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: CLAIRE SHARP
DEPUTY ATTORNEY GENERAL

DATE: MAY 23, 2023

SUBJECT: IN THE MATTER OF AVISTA CORPORATION’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; CASE NO. AVU-E-23-04.

On March 31, 2023, Avista Corporation, d/b/a Avista Utilities (“Avista” or “Company”)
applied for authority to modify its power cost adjustment (“PCA”) mechanism to account for
costs associated with Washington’s Climate Commitment Act (“CCA”) Allowances. Application
at 1. The Company would like to include (1) “the costs of purchasing carbon allowances
pursuant to the . . . CCA to cover Idaho’s share of the Company’s Boulder Park natural gas
generation plant dedicated to serving its Idaho customers,” and (2) “the costs of purchasing
carbon allowances for Idaho’s share of surplus sales delivered to Mid-Columbia (“Mid-C”)
trading hub that require an associated carbon allowance” in its PCA mechanism Federal Energy
Regulatory Commission (“FERC”) Account 509. Id. The Company requested its Application be
processed by Modified Procedure with an effective date of June 1, 2023.
On April 19, 2023, the Commission issued a Notice of Application, Notice of
Suspension, and set a 21-day deadline for Intervention. Order No. 35747. No one intervened.
STAFF RECOMMENDATION
Having conferred with the Company, Staff recommends the Commission issue a Notice
of Modified Procedure, setting an August 1, 2023, public comment deadline, and an August 15,
2023, Company reply deadline.

DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Modified Procedure, setting an August 1,
2023, public comment deadline, and an August 15, 2023, Company reply deadline?

_____________________________
Claire Sharp
Deputy Attorney General

I:\Legal\ELECTRIC\AVU-E-23-04 CCA\memos\AVUE2304_dec_2_cs.doc