20160902Decision Memo.pdf

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: BRANDON KARPEN
DEPUTY ATTORNEY GENERAL

DATE: AUGUST 31, 2016

SUBJECT: AVISTA’S ANNUAL PGA FILING, CASE NO. AVU-G-16-02

On August 29, 2016, Avista Corporation dba Avista Utilities filed its annual
Purchased Gas Cost Adjustment (PGA) Application asking to decrease its annualized revenues
by about $6.1 million (7.8%). Application at 1.1 The Company says its proposal will not affect
its earnings, and will decrease rates for an average residential or small commercial customer by
$4.65 per month (8.4%). Id. The Company states that it will issue notice of this change via a bill
insert in September billing statements. Id. The Company asks that its Application be processed
by Modified Procedure, and that the new rates take effect November 1, 2016. Id. at 2.
STAFF RECOMMENDATION
Staff recommends that the case be processed through Modified Procedure, with
comments due by October 11, 2017, and a reply, if any, due by October 14, 2016.
COMMISSION DECISION
Does the Commission wish to process this case through Modified Procedure, with
comments due by October 11, 2016, and a reply, if any, due by October 14, 2016.

M:AVU-G-16-02_bk

1 The PGA mechanism is used to adjust rates to reflect annual changes in the Company’s costs for the purchase of
natural gas from suppliers – including transportation, storage, and other related costs.