20180425notice_of_modified_procedure_order_no_34043.pdf

Office of the Secretary
Service Date
April 25,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NOS.AVU-E-15-05
OF AVISTA CORPORATION DBA AVISTA )AVU-G-15-01
UTILITIES FOR AUTHORITY TO )INCREASE ITS RATES AND CHARGES FOR )NOTICE OF PROPOSED
ELECTRIC AND NATURAL GAS SERVICE )ADDENDUM TO
IN IDAHO )SETTLEMENT
)NOTICE OF
)MODIFIED PROCEDURE
)NOTICE OF COMMENT
)DEADLINE
)ORDER NO.34043
On April 10,2018,Avista filed a Motion to approve an addendum to the approved
stipulation in the above-captionedmatter.
On December 18,2015,the Idaho Public Utilities Commission approved a Settlement
Stipulation in Avista's 2015 general rate case.Therein,the Commission approved an electric and
natural gas Fixed Cost Adjustment ("FCA")Mechanism that went into effect on January 1,2016.
The FCA is a rate adjustment mechanism designed to break the link between the amount of
energy a utility sells and the revenue it collects to recover the fixed costs of providing service to
customers.
The Commission approved "an initial FCA term of 3 years,with a review of how the
mechanisms have functioned conducted by Avista,Staff,and other interested parties following
the end of the second full-year."Order No.33437 at 5.The approved Stipulation contained a
provision that the Company "may seek to extend the term of the mechanism prior to its
expiration."Stipulation at 10.With the agreement of all the parties'participating in the
underlyingrate case,the Company now seeks to extend the FCA mechanism one year.
The Company stated that it is requesting the extension to better sync the Idaho
Commission's review of the mechanism with a review being conducted by an independentthird-
party of the Company's decoupling mechanism in Washington State.The parties have agreed
*Although Clearwater Paper was a party to the underlying rate case,Clearwater Paper does not participate in the
FCA mechanism,and takes no position here.
NOTICE OF PROPOSED ADDENDUM TO SETTLEMENT
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ORDER NO.34043 1
that this Comrnission will benefit from the results of the third-partystudy,and likewise agree to
extend the terms of the approved settlement by one year.
With this Order,we provide notice of the addendum to the settlement,notice of
proceeding by modified procedure,and set comment deadlines.
NOTICE OF PROPOSED ADDENDUM
YOU ARE HEREBY NOTIFIED that the Addendum to the Stipulation proposes the
following:
The approved Stipulation as described in paragraph 13,sub-section a,is as follows:
FCA Mechanisms Term.The Parties agree to an initial FCA term of 3
years,with a review of how the mechanisms have functioned conducted
by Avista,Staff,and other interested parties followingthe end of the
second full-year.Avista may seek to extend the term of the mechanism
prior to its expiration.
The Parties agree to amend the Stipulation language as follows:
FCA Mechanisms Term.The Parties agree to an initial FCA term of 4
years,with a review of how the mechanisms have functioned conducted
by Avista,Staff,and other interested parties followingthe end of the
third full-year.Avista may seek to extend the term of the mechanism
prior to its expiration.
Proposed Addendum to the Stipulation at 2 (emphasis supplied).
COMMISSION SETTLEMENT RULES
YOU ARE FURTHER NOTIFIED that the Commission will review the proposed
settlement consistent with Commission Rules 271-280.
YOU ARE FURTHER NOTIFIED that the Commission is not bound by the
agreement of the signing parties.The Commission will independently review the proposed
settlement to decide whether to approve it,reject it,or state conditions under which to accept it.
The proposed settlement's proponents ultimatelybear the burden to prove that it is just,fair,and
reasonable,in the public interest,or otherwise in accordance with law or regulatory policy.
YOU ARE FURTHER NOTIFIED that the Application,Settlement,and forthcoming
comments are available for public inspection during regular business hours at the Commission
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ORDER NO.34043 2
offices.The Application is also available on the Commission's web site at wwax.puc.idaho.gov.
To access the documents,click on the "File Room"tab at the top of the Commission's webpage,
scroll down to "Open Electric Cases,"and then click on the case number as shown on the front
of this document.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filing in
this action,and has preliminarily determined that the public interest may not require a formal
hearing,and will thus proceed under Modified Procedure pursuant to Rules 201 through 204 of
the Idaho Public Utilities Commission's Rules of Procedure,IDAPA 31.01.01.201 through .204.
The Commission notes that Modified Procedure and written comments have proven to be an
effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person or party desiring to state a
position on this Application may file a written comment in support or opposition with the
Commission no later than May 11,2018.The comment must contain a statement of reasons
supporting the comment.Persons desiring a hearing must specifically request a hearing in their
written comments.Written comments concerning this Application shall be mailed to the
Commission and the Applicant at the addresses reflected below:
Commission Secretary David Meyer
Idaho Public Utilities Commission Avista Corp.
PO Box 83720 1411 E.Mission Ave,MSC 27
Boise,ID 83720-0074 Spokane,WA 99220-3727
email:[e-mail]
Street Address for Express Mail:
472 W.Washington Street
Boise,ID 83702-5918
Comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at www.puc.idaho.gov.Click the "Case Comment or Question
Form"under the "Consumers"tab,and complete the comment form using the case number as it
appears on the front of this document.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
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enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
ORDER
IT IS HEREBY ORDERED that the parties'Application to approve an Addendum to
the Settlement shall be processed by Modified Procedure,Rule 201-204 (IDAPA 31.01.01.201-
.204).
IT IS FURTHER ORDER that all persons or parties interested in submitting written
comments must do so on or before May 11,2018.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2018.
PAUL KJE I ,PRESIDENT
KR ŠTINE RÃPEIL €ONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
AVUE1505 AVUGl501 NicofSettPart2 bkS
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