191105 Avista Rate Case.pdf

ldaho Public Utilities Commission Brld Litde. Govcrnor
IrO &r 837i,0. Eobc, lD 8372m074
Case No. AVU-E-I9-04
Contact: Stephen Goodson
Office: [phone]
stcphen. gtxrdson(alpuc. idaho.gov
Commission to hold public hearing on Avista rate case
BOISE (November 5,2019) - Parties to an Avista rate case have proposed a settlement that
reduces the utility's annual electric base revenues in Idaho. Ifapproved by the Idaho Public
Utilities Commission, the settlernent would decrease annual base electric revenues by $7.18
million, or 2.84 percent, effective Dec. 1,2019.
Avista's original proposal called for an increase in electric base revenues of $5.3 million, or 2.1
percent.
The Commission has scheduled a public workshop and public hearing for Idaho customers of
Avista at 6 p.m. (PST) on November 7,2019, in Coeur D'Alene, Idaho at the Blue Creek/Echo
Bay Room at the Edminster Student Union Building on the North Idaho College campus.
The public workshop will be from 6 p.m. to 7 p.m. (PST) and will allow the company's
customers to leam more about its original request and the proposed settlement agreernent. The
public hearing will start at 7 p.m. (PST) and will provide Avista customers an opportunity to
provide testimony that will be made part of the formal case record.
A technical hearing has also been set for Novernber 22,2019, at 9:30 a.m. (MST) in the
Commission's hearing room at I l33l Chinden Blvd., Bldg. 8, Suite 201-A, Boise, Idaho 83714.
Technical hearings allow intervening pBrties to present testimony and evidence.
A public telephonic hearing will also take place on Novernber 22, 2019, beginning at 10:30 a.m.
to 12 p.m. (MST) which will allow Avista's Idaho customers an additional opportunity to
provide testimony that will be made part of the formal case record. To participate in the
telephonic public hearing, interested persons can call I -800-920-7487 at the designated time, and
enter the passcode 6674832# when prompted.
Written comments will be accepted until the close of business on Novernber 22,2019. Avista
serves approximately i33,000 electric customers in northern Idaho.
The Spokane-based company said the primary driver for its original request is an increase in net
plant investment (including return on investment, depreciation and taxes, and offset by the tax
benefit of interest) from that currently authorized. In addition, net power supply expense is
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reduced from the currently authorized level, oflsetting the Company's overall increase as
originally requested.
Idaho state law requires that regulated utilities be allowed to recover their prudently incurred
expenses and eam a reasonable rate of retum, which is established by the Commission. The
burden ofproofis on the utility to dernonstrate that additional capital investment was necessary
to s€rve customers and, if so, that the expenses were prudently incurred.
The proposed settlement calls for several reductions to the company's original proposal. For
Avista's electric operations, those changes include a $2.2 million decrease to the Company's
proposed 2019 revenue requirement tied to a reduction in retum on common equity, a reduction
of nearly $744,000 through the elimination of officer incentive pay and salary increases and a
reduction in non-officer incentives and salary increases, and a reduction of approximately
$6.4million due to reduced power supply costs.
The proposed settlement agreement was reached between the parties to the case after a settlement
conference in late September. Those parties include the Commission Staff, Clearwater Paper
Corporation, Idaho Conservation League, Inc., Idaho Forest Group, LLC, the Community Action
Partnership Association of Idaho, Inc. and Walmart, Inc.
If approved by the Commission, the proposed settlanent would decrease Avista's annual base
electric revenues by $7.1 8 million, begiruring on Decernber 1, 2019. The revenue decreases are
based on a 9.5-percent retum on equity, down from a 9.9-percent retum on equity in Avista's
original proposal.
For a residential electric customer using an average of900 kilowatt-hours per month, the
proposed settlernent would lead to a decrease of $0.86, or I .0 percent decrease per month for a
revised monthly bill of $84.45.
Avista's application and exhibits are available on the Commission's website. Click on "Open
Cases" under the "Electric" heading and scroll down to Case No. AVLl-lr- 19-04.
To submit written comments, go to the Commission website, www.puc.idaho.gov, and click on
"Case Comment Form" under the "Electric" heading and enter the case number. Comments can
also be mailed to the Idaho Public Utilities Commission, P.O. Box 83720, Boise, LD,83720-
0074.