20230731CL_COS_Application_Exhibit A.pdf

Avista Corp. 1411 East Mission P.O. Box 3727 Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170 July 31, 2023

Commission Secretary
State of Idaho Idaho Public Utilities Commission 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, Idaho 83702-5983
RE: Case No. AVU-E-23-__ Power Cost Adjustment (PCA) Annual Rate Adjustment Filing of Avista Corporation

Dear Commission Secretary: Attached for electronic filing with the Commission is the annual Power Cost Adjustment Rate
Filing.1
The Company is requesting that the Commission issue an order approving recovery of power costs deferred for the period July 1, 2022 through June 30, 2023, and approving a PCA surcharge of 0.499¢ per kilowatt-hour to be effective October 1, 2023. Under the Company’s proposal, the PCA
surcharge rate for all customers, including residential customers, would increase from an existing
surcharge rate of 0.150¢ per kilowatt-hour to a proposed surcharge rate of 0.499¢ per kilowatt-hour, or an increase in the rate of 0.349¢ per kilowatt-hour. Since PCA rate adjustments are spread on a uniform cents per kilowatt-hour basis, the resulting percentage change varies by rate schedule. The overall increase is approximately $11.0 million or 4.3%. Residential customers using an
average of 927 kilowatt-hours per month would see their monthly bills increase from $85.40 to
$88.63, an increase of $3.23 per month, or 3.8%. Certain supporting documents are CONFIDENTIAL, rendering these documents exempt from public inspection, examination and copying pursuant to Sections 74-101 through 74-126 of the

1 Case No. GNR-U-20-01, Order No. 35375
RECEIVED
Monday, July 31, 2023 12:33:35 PM
IDAHO PUBLIC
UTILITIES COMMISSION
CASE NO. AVU-E-23-08

Idaho Code. Avista believes that the identified CONFIDENTIAL 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,
Patrick D. Ehrbar
Director of Regulatory Affairs Enclosures
/s/ Patrick Ehrbar

AVISTA’S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 1
DAVID J MEYER 1
VICE PRESIDENT AND CHIEF COUNSEL FOR 2
REGULATORY & GOVERNMENTAL AFFAIRS 3
AVISTA CORPORATION 4
1411 E. MISSION AVENUE 5
P. O. BOX 3727 6
SPOKANE, WASHINGTON 99220 7
PHONE: [phone]
9
10
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 11
12
IN THE MATTER OF THE POWER COST ) 13
ADJUSTMENT (PCA) ANNUAL RATE ) CASE NO. AVU-E-23-__ 14
ADJUSTMENT FILING OF AVISTA ) APPLICATION OF AVISTA 15
CORPORATION ) CORPORATION 16
17
18
I. INTRODUCTION 19
In accordance with Idaho Code §61-502 and RP 052, Avista Corporation, doing 20
business as Avista Utilities (hereinafter “Avista” or “Company”), at 1411 East Mission 21
Avenue, Spokane, Washington, respectfully files its Power Cost Adjustment (PCA) annual 22
rate adjustment filing in the above referenced case. The Company requests the Commission 23
issue an order approving the level of power costs deferred in the surcharge direction for the 24
period July 1, 2022 through June 30, 2023, and approving a PCA surcharge rate of 0.499¢ 25
per kilowatt-hour to be effective October 1, 2023. The Company requests that this filing 26
be processed under the Commission’s Modified Procedure Rules through the use of written 27
comments. 28
Communications in reference to this Application should be addressed to: 29

AVISTA’S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 2
David J. Meyer, Esq. 1
Vice President and Chief Counsel for 2
Regulatory & Governmental Affairs 3
Avista Corporation 4
P.O. Box 3727 5
MSC-10 6
1411 E. Mission Ave 7
Spokane, WA 99220-3727 8
Phone: [phone]
[e-mail] 10
11
Patrick D. Ehrbar 12
Director of Regulatory Affairs 13
Avista Utilities 14
P.O. Box 3727 15
MSC-27 16
1411 E. Mission Ave 17
Spokane, WA 99220-3727 18
Phone: [phone]
[e-mail] 20
21
Electronically 22
[e-mail] 23
24
II. BACKGROUND 25
Avista’s PCA is used to track changes in revenues and costs associated with 26
variations in hydroelectric generation, secondary prices, thermal fuel costs, and changes in 27
power contract revenues and expenses. Avista’s existing PCA methodology and method 28
of recovery were approved in Case No. AVU-E-07-01 by Order No. 30361 dated June 29, 29
2007. In that case, the Commission approved a change in the PCA methodology from a 30
trigger and cap mechanism to a single annual PCA rate adjustment filing requirement. 31
The Commission also approved a change in the method of the PCA deferral rate 32
adjustment from a uniform percentage basis, to a uniform cents per kilowatt-hour basis 33
effective with the October 1, 2007 PCA rate change. By Order No. 32206 in Case No. 34

AVISTA’S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 3
GNR-E-10-03 dated March 15, 2011, the Commission modified the retail revenue credit 1
methodology and approved a Load Change Adjustment Rate based on the energy classified 2
portion of embedded production revenue requirement effective April 1, 2011. 3
The Commission approved the following procedural schedule for administering the 4
annual PCA filings: 5
August 1 Company filing for prior July – June deferral period 6
September 1 Review and comments by Staff and other interested parties 7
October 1 Commission Order and effective date of PCA rate 8
adjustment 9
The present PCA surcharge was made effective on October 1, 2022. On July 29, 10
2022, in Case No. AVU-E-22-11, Avista filed its annual PCA rate adjustment for the 11
deferral period July 1, 2021 through June 30, 2022 and requested a PCA surcharge rate of 12
0.150¢ per kilowatt-hour, based on an overall surcharge of approximately $4.6 million, 13
effective October 1, 2022. That surcharge will end on September 30, 2023. The 14
Commission approved that application in Order No. 35543, dated September 29, 2022. 15
The proposed PCA rate adjustment of 0.499¢ per kilowatt-hour would surcharge to 16
customers approximately $15.7 million effective October 1, 2023. The surcharge is 17
primarily associated with power supply costs that were higher than those included in retail 18
rates, due to higher wholesale electric and natural gas prices. The net effect of the expiring 19
surcharge, and the proposed surcharge, is an overall increase in revenue of approximately 20
4.3 percent, or $11.0 million. 21

AVISTA’S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4
III. DEFERRALS – JULY 1, 2022 THROUGH JUNE 30, 2023 1
The amount of power cost deferrals for the period July 1, 2022 through June 30, 2
2023 is shown below, as well as interest for the same period. Company witness Mr. 3
Holland’s testimony provides an explanation of the factors causing the deferral entries for 4
the period. Company witness Ms. Schultz’s testimony addresses the deferral, Renewable 5
Energy Credit Benefit, and interest amount. 6
7
8
9
Monthly reports have been filed with the Commission regarding actual PCA 10
deferral entries to date. An additional copy of those reports for the months of July 2022 11
through June 2023 has been included with this filing and has also been provided to 12
Clearwater Paper Corporation and Idaho Forest Group. 13
14
IV. PROPOSED RATE TO BE EFFECTIVE OCTOBER 1, 2023 15
The Company is proposing a uniform cents per kilowatt-hour PCA surcharge rate 16
of 0.499¢ to be effective October 1, 2023 (from the present surcharge rate of 0.150¢ per 17
kilowatt-hour). See page 1 of Ms. Schultz’s Exhibit No. KJS-1 for the calculation of the 18
proposed rate. Attached to this Application as Exhibit “A” is a copy of the proposed tariff, 19
Schedule 66, which contains the proposed PCA rate. Exhibit “A” also includes the proposed 20
changes to Schedule 66 in strike out/underline format. The proposed rate is designed to 21
surcharge the following: 22
Deferrals (July 2022 - June 2023)17,262,258$
Renewable Energy Credit Retirement Benefit (1,423,542)$
Interest 178,285$
Total Deferral Balance 16,017,001$

AVISTA’S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 5
1
2
3
4
5
6
7
8
After applying the conversion factor related to commission fees and uncollectible 9
customer accounts to the “Total Balance for Amortization” shown above, the resulting 10
balance of $15,664,011 is divided by forecasted kilowatt-hours to derive the proposed 11
surcharge rate of 0.499¢ per kilowatt-hour.1 12
Since PCA rate changes are spread on a uniform cents per kilowatt-hour basis, the 13
resulting percentage increases vary by rate schedule. Page 1 of Ms. Schultz’s Exhibit No. 14
KJS-1 shows the effect of the proposed PCA surcharge by rate schedule. The overall 15
increase in revenue, after accounting for the expiration of the existing surcharge, and the 16
new surcharge, is $11.0 million or 4.3%. The revenue impact by rate schedule is as follows: 17
18
19
20
21
22

1 Total Balance for Amortization $15,604,848 divided by conversion factor 0.996223 = $15,664,011.
Schedule Percent change
Type of Service Number on Billed Revenue
Residential 1 3.8%
General Service 11,12 4.0%
Large General Service 21,22 4.2%
Extra Large General Service 25 6.1%
Clearwater 25P 7.6%
Pumping Service 31,32 3.8%
Street & Area Lights 41-49 0.9%
Total 4.3%

AVISTA’S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 6
Residential customers using an average of 927 kilowatt-hours per month would see 1
their monthly bills increase from $85.40 to $88.63, an increase of $3.23 per month, or 3.8%. 2
3
V. REQUEST FOR RELIEF 4
The Company requests that the Commission issue an order approving power costs 5
deferred for the period July 1, 2022 through June 30, 2023, and approving a PCA surcharge 6
rate of 0.499¢ per kilowatt-hour to be effective October 1, 2023. Under the Company’s 7
proposal, the PCA rate for all customers, including residential customers, would increase 8
from a surcharge rate of 0.150¢ per kilowatt-hour to a surcharge rate of 0.499¢ per kilowatt-9
hour. Since PCA rate adjustments are spread on a uniform cents per kilowatt-hour basis, 10
the resulting percentage increase varies by rate schedule. The overall increase in revenue is 11
approximately $11.0 million or 4.3%. The Company requests that the matter be processed 12
under the Commission’s Modified Procedure rules through the use of written comments. 13
Dated at Spokane, Washington this 31st day of July 2023. 14
AVISTA CORPORATION 15
16
By: /s/ David J. Meyer 17
David J. Meyer 18
Vice President and Chief Counsel for 19
Regulatory & Governmental Affairs 20

Case No. AVU-E-23-__

2023 Idaho PCA Filing

Exhibit “A”

Twenty-Fifth Revision Sheet 66 Canceling
I.P.U.C. No.28 Twenty-Fourth Revision Sheet 66

AVISTA CORPORATION
d/b/a Avista Utilities
Issued July 31, 2023 Effective October 1, 2023
Issued by Avista Utilities By Patrick Ehrbar – Director of Regulatory Affairs

SCHEDULE 66

TEMPORARY POWER COST ADJUSTMENT - IDAHO

APPLICABLE:
To Customers in the State of Idaho 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 0.499¢ 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.

Twenty-fourth Revision Sheet 66 Canceling
I.P.U.C. No.28 Twenty-third Revision Sheet 66

AVISTA CORPORATION
d/b/a Avista Utilities
Issued July 29, 2022 Effective October 1, 2022
Issued by Avista Utilities By Patrick Ehrbar – Director of Regulatory Affairs

SCHEDULE 66

TEMPORARY POWER COST ADJUSTMENT - IDAHO

APPLICABLE:
To Customers in the State of Idaho 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 0.150¢ 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.

Twenty-Fifth Revision Sheet 66 Canceling
I.P.U.C. No.28 Twenty-Fourth Revision Sheet 66

AVISTA CORPORATION
d/b/a Avista Utilities
Issued July 31, 2023 Effective October 1, 2023
Issued by Avista Utilities By Patrick Ehrbar – Director of Regulatory Affairs

SCHEDULE 66

TEMPORARY POWER COST ADJUSTMENT - IDAHO

APPLICABLE:
To Customers in the State of Idaho 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 0.499¢ 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.

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 Secretary Peter J. Richardson
Idaho Public Utilities Commission Richardson Adams PLLC 11331 W. Chinden Blvd. 515 N. 27th Street Building 8, Suite 201-A Boise, ID 83702 Boise, ID 83714 [e-mail]
Marie Callaway Kellner/Brad Heusinkveld Idaho Conservation League 710 N. 6th Street Boise, ID 83702
[e-mail]
[e-mail]
Carol Haugen Dr. Don Reading Clearwater Paper 280 S. Silverwood Way
601 W. Riverside Ave. Suite 1100 Eagle, Idaho 83616
Spokane, WA 99201 [e-mail] [e-mail]
Larry Crowley
The Energy Strategies Institute, Inc.
3738 S. Harris Ranch Ave. Boise, ID 83716 Email: [e-mail] (Excluding Confidential Information)
Dated at Spokane, Washington this 31st day of July 2023.