20190816Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 16,2019
SUBJECT THE RESIDENTIAL AND SMALL FARM CREDIT ANNUAL RATE
FILING OF AVISTA CORPORATION; CASE NO. AVU-E-19-08.
On July 30,2019, Avista Corporation dba Avista Utilities ("Avista" or "Company")
applied to the Commission for authorization to implement a Residential and Small Farm Energy
rate credit from October 1,2079 through September 30,2020 and to approve its corresponding
modifications to rate Schedule 59, "Residential and Small Farm Energy Adjustment." Application
at I , 4. Under the Company's proposal, the monthly bill for an average residential customer would
decrease by $2.86, or 3.5%o. Id. at 4. Avista asks that its Application be processed under Modified
Procedure, and requests an effective date of October 1,2019. Id. at l-2.
BACKGROUND
The Residential and Small Farm Energy rate credit results from an agreement between
the Company and the Bonneville Power Administration regarding the Residential Exchange
Program. Id. The Residential Exchange Program provides a share of the benefits of the federal
Columbia River power system to the residential and small farm customers of the six (6) investor-
owned utilities of the Pacific Northwest, including Avista. Id. at2-3.
2019-2020 RESIDENTIAL AND SMALL FARM RATE ADJUSTMENT
In its current Residential and Small Farm Energy adjustment filing, Avista proposes to
issue a rate credit of $4.8 million, which represents Avista's Idaho portion of benefits from the
Residential Exchange Program. Id. at3. This credit would go to customers in rate Schedules 1, 12,
22,32, and 48. Id. at4. The proposed credit rate is 0.387 cents per kilowatt-hotr.ld. at 1, 3-4. The
rate credit would not affect Avista's net income. 1d
DECISION MEMORANDUM I
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due September 10,2019 and reply comments due September
17,2019.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with comments due September 10, 2019 and reply comments due September 17,2019?
Dayn Hardie
Deputy Attorney General
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2DECISION MEMORANDUM
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