20170630notice_of_application_order_no_33808.pdf

Office of the Secretary
Service Date
June 30,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )OF AVISTA CORPORATIONDBA AVISTA )CASE NOS.AVU-E-17-01UTILITIESFORAUTHORITYTO)AVU-G-17-01
INCREASEITS RATESAND CHARGESFOR )ELECTRIC AND NATURAL GAS SERVICE )NOTICE OF APPLICATIONINIDAHO)
)NOTICE OF
)INTERVENTIONDEADLINE
)ORDERNO.33808
On June 9,2017,Avista Corporation filed an Application seeking authority to
increase the Company's general rates for electric and natural gas service in Idaho.Avista
proposes a two-year rate plan that would increase annual electric billed revenues by $18.6
million (7.9%)on January 1,2018,and by $9.9 million (4.2%)on January 1,2019.The plan
includes an increase in annual natural gas billed revenues by $3.5 million (5.7%)on January 1,
2018,and by $2.1 million (3.3%)on January 1,2019.
NOTICEOF APPLICATION
YOU ARE HEREBY NOTIFIEDthat Avista is a public utility engaged in the
generation,transmission and distribution of electricity and natural gas.Avista's service area
includes eastern Washington,northern Idaho,and parts of southern and eastern Oregon.Avista's
existing base rates and charges for electric and natural gas services were approved by the
Commission in December 2016 for electric service,and December 2015 for gas service.Order
Nos.33682 and 33437.
YOU ARE FURTHERNOTIFIED that Avista's proposed electric rate increase
would increase the bill of an average residential customer,using 910 kilowatthours (kWh)per
month,by $7.03 per monthin 2018.The increase also includes a basic charge increase of $0.25
per month to $6.00 per month.For 2019,the same customer could expect another bill increase
of $4.02 per month.Avista's proposed electric rate increase would impact customers'electric
bills by schedule as follows:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33808 1
Proposed Electric Increase
Proposed 2018 Proposed 2019
Service Schedule Billing Increase Billing Increase
Residential Service Schedule 1 8.1%4.3%
General Service Schedules 11 &12 7.5%4.0%
Large General Service Schedules 21 &22 8.2%4.4%
Extra Large General Service Schedule 25 7.7%4.3%
Extra Large General Service Schedule 25P 7.2%4.1%¯¯¯
Pumping Service Schedules 31 &32 8.8%4.6%
Street &Area Lighting Schedules 41-49 7.5%3.8%
Ove ll Increase 7.9%1 4 2%
See Application ExhibitB.
YOUARE FURTHERNOTIFIEDthat Avista's proposed natural gas rate increase
would increase the bill of an average residential customer,using 61 therms per month,by $3.37
per month in 2018,which includes a basic charge increase of $0.75 per month,from $5.25 to
$6.00.For 2017,the same customer could expect another bill increase of $2.07 per month.
Avista's proposed natural gas rate increase would impact customers'gas bills by schedule as
follows:
Proposed NaturalGas Increase
Proposed 2018 Proposed 2019
Service Schedule Billing Increase Billing Increase
General Service Schedule 101 6.6%3.8%
Large General Service Schedule 111 &112 2.2%1.3%InterruptibleSales Service Schedules 131 &132 0.0%0.0%
Transportation Service Schedule 146 9.2%5.0%(excluding natural gas costs)
OverallIncrease 5.7%3.3%
See Application Exhibit B.
YOU ARE FURTHERNOTIFIEDthat in its Application,Avista claims its existing
rates are not fair,just,and reasonable,and that it must increase them so it can earn a fair return
on its investment.Application at 5.Avista plans to notify its customers about the proposed rate
increases by distributing bill stuffers over the June 2017 billingcycle,and through news releases.
YOU ARE FURTHERNOTIFIEDthat Avista attributes the increase in its rates
primarily to capital investments in infrastructure,system maintenance,and technology and
NOTICE OF APPLICATION
NOTICE OF INTERVENTIONDEADLINE
ORDER NO.33808 2
increased power supply costs.Avista's evidence in support of its requested rate increases is
based on a 12-month test year that ended December 31,2016.Id.at 5.
YOU ARE FURTHERNOTIFIEDthat Avista requests an overall rate of return of
7.81%,which includes a 9.9%return on equity.Avista asserts that the proposed rate of return
and capital structure reasonably balance safety,reliability,customer satisfaction,and economy.
Id.at 7
YOU ARE FURTHERNOTIFIED that the Commission finds it appropriate to
suspend Avista's proposed effective date of July 9,2017,to January 1,2018,unless the
Commission issues an earlier Order accepting,rejecting,or modifying Avista's Application.See
Idaho Code §61-622(4)and Order No.33130.
YOUARE FURTHERNOTIFIEDthat the Commission has designated this case as a
general rate case.As such,Avista's intrastate revenue requirement,and every component of it,
both rate base and expense,are at issue.The Commission may grant,deny,or modify the
revenue requirement requested and may find a revenue requirement different from that proposed
by any party is just,fair and reasonable.IDAPA 31.01.01.124.01.
YOU ARE FURTHERNOTIFIEDthat the rates and charges of all Avista retail
customers,both recurring and non-recurring,includingthose of special contract customers,are at
issue,and every component of every existing and proposed rate and charge is at issue.The
Commission may approve,reject or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just,fair and reasonable.Id.
YOU ARE FURTHERNOTIFIEDthat the Commission may approve,reject or
modify existing or proposed relationships between and among rates and charges within,between
or among customer classes or rate groupings and may approve,reject or modify existing or
proposed relationships among and between customer classes or rate groupings.Id.
YOU ARE FURTHERNOTIFIED that the Commission may abolish,reduce or
create rate blocks or categories of rates and charges,abolish,create or reduce components of
rates and charges,abolish,reduce or create customer classes or rate groupings,and abolish,
reduce or create absolute or relative differences among and between existing classes or rate
groupings of customers.Id.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDERNO.33808 3
YOU ARE FURTHERNOTIFIEDthat the tariffs,practices,rules and regulations,
service,instrumentalities,equipment,facilities,classifications,and customer relations of the
utility are at issue,and the Commission may address any of them in its order.Id.
YOU ARE FURTHERNOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission's web site at www ue.idaho ov.Click on the
"File Room"tab at the top of the page,scroll down to "Open Electric Cases"or "Open Gas
Cases,"and then click on the case number as shown on the front ofthis document.
YOU ARE FURTHERNOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §§61-501,61-502,61-507,61-520,61,523,and 61-622.The Commission may
enter any final Order consistent withits authorityunder Title61.
NOTICE OF INTERVENTIONDEADLINE
YOUARE FURTHERNOTIFIEDthat persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
Petitionto Intervene with the Commission pursuant to this Commission's Rules of Procedure
72 and 73,IDAPA 31.01.01.072 and -.073.Persons intending to participate at the hearing must
file a Petition to Intervene no later than fourteen (14)days from the service date of this
Order.Persons desiring to present their views withoutparties'rights of participation and cross-
examination are not required to intervene and may present their comments without prior
notificationto the Commission or the parties.
YOU ARE FURTHERNOTIFIEDthat the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed.The Notice of Parties shall
assign exhibitnumbers to each party in this proceeding.
YOU ARE FURTHERNOTIFIED that once the Notice of Parties is issued,the
Commission Staff will convene an informal prehearing conference at the Commission's offices
for the parties to discuss a schedule to process this case and other issues as may be raised by the
parties.
YOU ARE FURTHERNOTIFIEDthat the following persons are designated as
Avista's representatives in this matter:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33808 4
David J.Meyer
Vice President &Chief Counsel,Reg.&Gov'tAffairs
Avista Corporation
PO Box 3727
1411 East Mission Avenue
Spokane,WA 99220-3727
E-mail:david.mes er a avistacorp.com
KellyNorwood
Vice President -State &Federal Regulation
Avista Utilities
PO Box 3727
1411 East Mission Avenue
Spokane,WA 99220-3727
E-mail:kell .norwood avistacons.com
YOU ARE FURTHERNOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
ORDER
IT IS HEREBY ORDERED that the July 9,2017 effective date that Avista proposes
for its first set of electric and natural gas rate increases is suspended until January 1,2018,unless
the Commission issues an earlier Order accepting,rejecting,or modifying the Application.
Order No.33130 and Idaho Code §61-622(4).
IT IS FURTHERORDERED that persons desiring to intervene in this matter for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
withthe Commission no later than fourteen (14)days from the service date of this Order.
IT IS FURTHERORDERED that discovery is available in these consolidated cases
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.221-234,
NOTICE OF APPLICATION
NOTICE OF INTERVENTIONDEADLINE
ORDER NO.33808 5
DONE by Order ofthe Idaho Public UtilitiesCommission at Boise,Idaho this 3
day of June 2017.
PAUL KVITA ,PRESIDENT
KRISTINERAPER,CO SSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
O:AVU-E-17-01 AVU-G-17-01 bk
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33808 6