20170222FCA Quarterly Report.pdf

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Ms. Diane Hanian
Idaho Public Utilities Commission
472 W. Washington Street
Boise, Idaho 83702
Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
February 22, 2017
Dear Ms. Hanian:
RE: AVU-E-15-05/AVU-G-15-0l
Electric and Natural Gas Fixed Cost Adjustment Mechanism
Quarterly Report
On February 14, 2017, A vista provided its Electric and Natural Gas Fixed Cost Adjustment Mechanism
Quarterly Report for 4th quarter 2016 confidentially as the Company had not at that time released its
earnings for 2016. The Company's 2016 earnings have since been released and the 4th quarter Electric
and Natural Gas Fixed Cost Adjustment Mechanism Quarterly Report is no longer confidential. Please·
supplement the February 14 filing with this unrestricted version.
Attached for filing with the Commission is an electronic copy of A vista's Electric and Natural Gas Fixed
Cost Adjustment Mechanism Quarterly Report.
The report consists of spreadsheets showing the monthly revenue deferral calculations for October,
November and December 2016. In addition, Avista has provided illustrative revenue deferral
calculations for the non-residential electric group on a rate schedule basis as required in the Settlement
Stipulation approved by the Commission in the above referenced docket. The other electric and natural
gas groups consist of only one rate schedule each and therefore would not change under the rate schedule
assumption.
Also included in the report are the monthly general ledger balances resulting from the deferral and
amortization activity during the 4th quarter of 2016.
Questions regarding this filing should be directed to Tara Knox at [phone].
Senior Manager, Rates and Tariffs
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Avista Corporation Fixed Cost Adjustment Mechanism
Idaho Jurisdiction
Quarterly Report for 4th Quarter 2016
Balance Sheet Accounts
GL Account Balance Accounting Period : '201610, 201611, 201612'
Jurisdiction: ID FCA Deferred Revenue
Ferc
Acct Ferc Acct Desc
Accounting
Service Period
Beginning
Balance
Monthly
Activity Ending Balance
186328 REG ASSET-DECOUPLING DEFERRED ED 201610 2,738,207.81 253,106.94 2,991,314.75
REG ASSET-DECOUPLING DEFERRED 201611 2,991,314.75 1,086,535.63 4,077,850.38
REG ASSET-DECOUPLING DEFERRED 201612 4,077,850.38 -49,647.67 4,028,202.71
Sum: 1,289,994.90
REG ASSET-DECOUPLING DEFERRED GD 201610 2,389,759.07 57,789.25 2,447,548.32
REG ASSET-DECOUPLING DEFERRED 201611 2,447,548.32 1,028, 757.65 3,476,305.97
REG ASSET-DECOUPLING DEFERRED 201612 3,476,305.97 -849,651.51 2,626,654.46
Sum: 236,895.39
Sum: 1,526,890.29 I
186338 REG ASSET NON-RES DECOUPLING D ED 201610 1,801,453.58 237,871.69 2,039,325.27
REG ASSET NON-RES DECOUPLING D 201611 2,039,325.27 807,026.07 2,846,351.34
REG ASSET NON-RES DECOUPLING D 201612 2,846,351.34 -289,927. 74 2,556,423.60
Sum: 754,970.02
REG ASSET NON-RES DECOUPLING D GD 201610 338,975.53 119,078.36 458,053.89
REG ASSET NON-RES DECOUPLING D 201611 458,053.89 139,070.62 597, 124.51
REG ASSET NON-RES DECOUPLING D 201612 597, 124.51 -96,871.96 500,252.55
Sum: 161,277.02
Sum: 916,247.04
GL Account Balance Accounting Period : '201610, 201611, 201612'
Jurisdiction: ID
Ferc
Acct Ferc Acct Desc
Accumulated Deferred Income Tax
Accounting Beginning
Service Period Balance
Monthly
Activity Ending Balance
283328 ADFIT DECOUPLING DEFERRED REV ED 201610 -1,588,881.46 -171,842.52 -1,760,723.98
ADFIT DECOUPLING DEFERRED REV 201611 -1,760,723.98 -530,268.10 -2,290,992.08
ADFIT DECOUPLING DEFERRED REV 201612 -2,290,992.08 168,679.14 -2, 122,312.94
Sum: -533,431.48
ADFIT DECOUPLING DEFERRED REV GD 201610 -720,463.36 -35,294.56 -755,757.92
ADFIT DECOUPLING DEFERRED REV 201611 -755,757.92 -128,234.15 -883,992.07
ADFIT DECOUPLING DEFERRED REV 201612 -883,992.07 103,948.77 -780,043.30
Sum: -59,579.94
Sum: -593,011.42
file: ID Fixed Cost Adjustment Report Q4 2016.xlsx I Accounting Balances Page 5 of 11
Avista Corporation Fixed Cost Adjustment Mechanism
Idaho Jurisdiction
Quarterly Report for 4th Quarter 2016
Income Statement Accounts
GL Account Balance Accounting Period : '201610, 201611, 201612'
Jurisdiction: ID
Ferc
Acct Ferc Acct Desc
Deferred Revenue
Accounting Beginning
Service Period Balance
Monthly
Activity Ending Balance
456328 RESIDENTIAL DECOUPLING DEFERRE ED 201610 -2, 722,403 .68 -250,720.63 -2,973, 124.31
RESIDENTIAL DECOUPLING DEFERRE 201611 -2,973, 124.31 -1,083,591.37 -4,056,715.68
RESIDENTIAL DECOUPLING DEFERRE 201612 -4,056,715.68 53,023.79 -4,003,691.89
Sum: -1,281,288.21 I
456338 NON-RES DECOUPLING DEFERRED RE ED 201610 -1,792,897.24 -236,272.03 -2,029,169.27
NON-RES DECOUPLING DEFERRED RE 201611 -2,029,169.27 -804,991.22 -2,834, 160.49
NON-RES DECOUPLING DEFERRED RE 201612 -2,834, 160.49 292,177.96 -2,541,982.53
Sum: -749,085.29 l
495328 RESIDENTIAL DECOUPLING DEFERRE GD 201610 -2,376,796.18 -55,774.54 -2,432,570.72
RESIDENTIAL DECOUPLING DEFERRE 201611 -2,432,570. 72 -1,026,290.41 -3,458,861.13
RESIDENTIAL DECOUPLING DEFERRE 201612 -3,458,861.13 852,193.35 -2,606,667. 78
Sum: -229,871.60 I
495338 NON-RES DECOUPLING DEFERRED RE GD 201610 -337,280.94 -118,746.40 -456,027.34
NON-RES DECOUPLING DEFERRED RE 201611 -456,027.34 -138,631.15 -594,658.49
NON-RES DECOUPLING DEFERRED RE 201612 -594,658.49 97,329.01 -497,329.48
Sum: -160,048.54 I
GL Account Balance Accounting Period : '201610, 201611, 201612'
Jurisdiction:ID Interest Expense/Income
Ferc Accounting Beginning Monthly
Acct Ferc Acct Desc Service Period Balance Activity Ending Balance
419605 INT INC ON OTH DEFERRALS-IV FU ED 201610 -24,360.4 7 -3,985.97 -28,346.44
INT INC ON OTH DEFERRALS-IV FU 201611 -28,346.44 -4,979.11 -33,325.55
INT INC ON OTH DEFERRALS-IV FU 201612 -33,325.55 -5,626.34 -38,951.89
Sum: -14,591.42
INT INC ON OTH DEFERRALS-IV FU GD 201610 -14,657.48 -2,346.67 -17,004.15
INT INC ON OTH DEFERRALS-IV FU 201611 -17,004.15 -2,906.71 -19,910.86
INT INC ON OTH DEFERRALS-IV FU 201612 -19,910.86 -2,998.89 -22,909.75
Sum: -8,252.27
Sum: -22,843.69
431605 INT EXP ON OTH DEFERRALS-IV FU ED 201610 0.00 0.00 0.00
INT EXP ON OTH DEFERRALS-IV FU 201611 0.00 0.00 0.00
INT EXP ON OTH DEFERRALS-IV FU 201612 0.00 0.00 0.00
Sum: 0.00
INT EXP ON OTH DEFERRALS-IV FU GD 201610 0.00 0.00 0.00
INT EXP ON OTH DEFERRALS-IV FU 201611 0.00 0.00 0.00
INT EXP ON OTH DEFERRALS-IV FU 201612 0.00 0.00 0.00
file: ID Fixed Cost Adjustment Report Q4 2016.xlsx I Accounting Balances Page 6 of 11
Avista Corporation Fixed Cost Adjustment Mechanism
Idaho Jurisdiction
Quarterly Report for 4th Quarter 2016
Financial Reporting Contra Asset Accounts
GL Account Balance Accounting Period : '201610, 201611, 201612'
Jurisdiction: ID
Ferc Ferc Acct Desc Service Accounting Beginning Monthly Ending Balance Acct Period Balance Activity
253311 CONTRA DECOUPLING DEFERRED REV ED 201611 0.00 -378,510.00 -378,510.00
CONTRA DECOUPLING DEFERRED REV 201612 -378,510.00 -142,365.00 -520,875.00
Sum: -520,875.00
CONTRA DECOUPLING DEFERRED REV GD 201610 -670,268.00 -76,026.00 -746,294.00
CONTRA DECOUPLING DEFERRED REV 201611 -746,294.00 -801,445.00 -1,547,739.00
CONTRA DECOUPLING DEFERRED REV 201612 -1,547,739.00 649,527.00 -898,212.00
Sum: -227,944.00
file: ID Fixed Cost Adjustment Report Q4 2016.xlsx I Accounting Balances Page 7 of 11
Avista Corporation Fixed Cost Adjustment Mechanism
Idaho Jurisdiction
Quarterly Report for 4th Quarter 2016
NOTES
1) The following table shows how the decoupled revenue per customer has tracked with use per customer for
each quarter of 2016. The similarity of the percentage change indicates that the mechanism is working as
intended.
Summarized Quarterly and Year to Date Use per Customer and Fixed Cost Adjustment Revenue
Per Customer. Change versus Authorized
YTD
Ql Q2 Q3 Q4 Average %
Electric Residential
Change in Use per Customer (270) (222) 151 (179) (130) -4.7%
Change in FCA Revenue per Customer -$15.09 -$17.37 $7.63 -$11.02 (9) -5.1%
Deferral per Average Customer $15.09 $17.37 -$7.63 $11.02 9
Electric Non-Residential
Change in Use per Customer (705) (407) so (342) (351) -2.9%
Change in FCA Revenue per Customer -$34.63 -$31.18 -$5.60 -$29.62 (25) -3.7%
Deferral per Average Customer $34.63 $31.18 $5.60 $29.62 25
Natural Gas Residential
Change in Use per Customer (38) (32) 4 (2) (17) -9.2%
Change in FCA Revenue per Customer -$17.62 -$15.59 $2.61 -$0.76 (8) -8.9%
Deferral per Average Customer $17.62 $15.59 -$2.61 $0.76 8
Natural Gas Non-Residential
Change in Use per Customer (809) (586) 265 (283) (353) -8.5%
Change in FCA Revenue per Customer -$119.10 -$135.02 $12.34 -$108.58 (88) -9.4%
Deferral per Average Customer $119.10 $135.02 -$12.34 $108.58 88
2) If the FCA mechanism had been determined by schedule the electric residential and both natural gas groups
would not change. The electric non-residential group would consist of three separate rate schedule groups.
Pages 9 through 11 of this report show the illustrative calculations for the electric non-residential group on a by
schedule basis.
3) The contra asset accounting shown on page 7 is for financial reporting purposes only. Generally Accepted
Accounting Principles allow revenue recognition from alternative revenue programs up to the amount
expected to be collected within 24 months following the end of the annual period in which they are recognized.
Due to the 3% annual rate increase limitation a portion of the 2016 natural gas surcharge may not be fully
recovered by 12/31/2018 and therefore is not recognizable as income for financial reporting purposes in 2016.
The income statement impact of the contra deferral will be eliminated for normalized Idaho results reporting.
file: ID Fixed Cost Adjustment Report Q4 2016.xlsx I Notes Page 8 of 11
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