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HomeMy WebLinkAbout20230927Final_Order_No_35932.pdfORDER NO. 35932 1 Office of the Secretary Service Date September 27, 2023 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE RESIDENTIAL AND SMALL FARM ANNUAL RATE ADJUSTMENT FILING OF AVISTA CORPORATION ) ) ) ) ) ) CASE NO. AVU-E-23-11 ORDER NO. 35932 On July 31, 2023, Avista Corporation d/b/a/ Avista Utilities (“Company”) filed an application (“Application”) with the Idaho Public Utilities Commission (“Commission”) requesting an order authorizing the Company to implement Residential and Small Farm Energy rates for electric service from October 1, 2023, through September 30, 2024. The Company requested an October 1, 2023, effective date. Application at 1. The Company represented that the electric Residential and Farm Energy Rate Adjustment results from an agreement between the Company and Bonneville Power Administration (“BPA”) that provides a share of the benefits of the federal Columbia River power system to the residential and small-farm customers of the six investor-owned utilities of the Pacific Northwest. Id. at 2. The Company proposed a Residential and Small Farm Energy Rate Adjustment credit rate for rate schedules 1, 12, 22, 32, and 48 of 0.366¢ per kilowatt-hour (“kWh”), which represents a $0.2 million, or 0.1%, increase to qualifying customers. Id. at 1. The Company represented that under the current Residential Exchange rate adjustment, approximately $4.93 million annually is being passed through to applicable Idaho customers through a uniform 0.380¢ per kWh rate credit. Id. at 2-3. The Company represented that the proposed rate credit of 0.366¢ per kWh is designed to pass through approximately $4.9 million, which represents the Idaho portion of the annual level of BPA benefits, offset by an over-refunded balance from the prior year, starting in October 2023. Id. at 3. The Company provided the following table detailing the differences between the current benefits and the proposed benefits. ORDER NO. 35932 2 Id. The Company represented that residential customers using an average of 927 kWh per month would see their monthly bills increase from $85.40 to $85.53, an increase of $0.13 per month, or 0.2%. Id. at 4. The Company represented that the Application would be brought to the attention of the Company’s customers through a Press Release, as well as Customer Notices that would be included in customer’s bills beginning in early August 2023 and run for a full billing cycle. Id. STAFF COMMENTS Staff reviewed the methodology and calculation of the proposed Residential and Small Farm credit rate, and Staff believed the approach was consistent with the terms and conditions of Schedule 59 Residential and Farm Energy Rate Adjustment - Idaho. Staff audited the inputs and independently recalculated the rate. Staff recommended the Commission approve the proposed rate of 0.366¢ per kWh as filed. Customer Notice, Press Release, and Public Comments Staff reviewed the Company’s press release and customer notice and determined both met the requirements of Rule 125 of the Commission’s Rules of Procedure. See IDAPA 31.01.01.125. However, the notice was included with bills mailed to customers beginning August 7, 2023, and ending September 7, 2023. The Commission set a comment deadline of September 13, 2023, and Staff believed that some customers in the last billing cycles would not have received or had adequate time to submit comments before the deadline. Staff recommended that the Commission accept and consider any late filed customer comments. ORDER NO. 35932 3 Staff Recommendation Staff recommended that the Commission approve the Company’s Application as filed; and accept and consider any late filed customer comments. COMPANY REPLY COMMENTS The Company did not submit any reply comments. 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 §§ 61-301 through 303. 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 through 503. Having reviewed the Application, all submitted comments, and all submitted materials, the Commission finds it fair, just, and reasonable to approve the Application as filed. ORDER IT IS HEREBY ORDERED that the Application is approved as filed. 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. 35932 4 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 27th day of September 2023. ERIC ANDERSON, PRESIDENT JOHN R. HAMMOND JR., COMMISSIONER EDWARD LODGE, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\AVU-E-23-11_Res Exc Rate\orders\AVUE2311_FO_cb.docx