20171229Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
\ryORKING FILE
FROM: BENTLEY ERDWURM
DATE: DECEMBER 28, 2017
RE:AVISTA CORP. - COMPLIANCE FILINGS:l) Aw-E-r7-01 - APPLTCATTON FOR APPROVAL TO INCREASE RATES
AND CHARGES (ELECTRIC SERVTCE);
2) AW-G-I?-{ll: APPLICATION FOR APPROVAL TO INCREASE RATES
AND CHARGES (NATURAL GAS SERVTCE)
BACKGROUND
On December28,2017, Avista submitted to the Commission tariffsheets for frling in
compliance with Commission Order No. 33953 in Case Nos. AVU-E- I 7-01 and AVU-G I 7-01 .
The Company filed the following sheets;
Twelfth Revision Sheet 001 Caneeling Eleventh Revision Sheet 001
Canceling Eleventh Revision Sheet 0l ITwelfth Revision Sheet 0l I
Twelfth Revision Sheet 021 Canceling Eleventh Revision Sheet 021
Twelfth Revision Sheet 025 Canceling Eleventh Revision Sheet 025
Eleventh Revision Sheet 025P Canceling Tenth Revision Sheet 025P
Twelfth Revision Sheet 031 Canceling Eleventh Revision Sheet 031
Eleventh Revision Sheet 041 Canceling Tenth Revision Sheet 041
Canccling Tenth Revision Shect 042Eleventh Revision Sheet 042
Eighth Revision Sheet 042,{Canceling Seventh Revision Sheet 042A
Eleventh Revision Sheet 044 Canceling Tenth Revision Sheet M4
Eleventh Revision Sheet 045 Canceling Tenth Revision Sheet 045
Canceling Tenth Revision Sheet 046Eleventh Revision Sheet 046
IDECISION MEMORANDUM DECEMBER 28, 2017
Eleventh Revision Sheet 047 Canceling Tenth Revision Sheet 047
Eleventh Revision Sheet 049 Canceling Tenth Revision Sheet 049
Sixth Revision Sheet 0494.Canceling Fifth Revision Sheet 049A
Third Revision Sheet 097 Canceling Second Revision Sheet 097
Twelfth Revision Shect 101 Canceling Eleventh Revision Sheet 101
Thirteenth Revision Sheet 1l I Canceling Twelfth Revision Sheet I I I
Fourteenth Revision Sheet 112 Canceling Thirteenth Revision Sheet I 12
Thirteenth Revision Sheet 13l Canceling Twelfth Revision Sheet l3l
Fifteenth Revision Sheet 132 Canceling Fourteeilh Revision Sheet 132
Twelfth Revision Sheet 146 Canceling Elcventh Revision Sheet 146
In addition, for natural gas, subsequent to the filing of the Settlement Stipulation, the
rates related to thc Company's annual Purchased Gas Cost Adjustment filing (Schedules 150 & 155)
and Fixed Cost Adjtstment filing (Schedule 175) were approved (Case AVU-G-17-04 and
AVU-G-17-03) by the Commission. Those new rates are reflected in the natural gas tariffs under
"Other Charges" which are components of the total billing rates detailed on the taritrs. These tariff
sheets have an effective date of January l, 2018, in compliance with the Order.
STAFF ANALYSIS
Staffhas reviewed the rates and charges included in the compliance tariffs filed by the
Company, and has determined that the compliance taritrs conform to Order No. 33953 and with the
terms and conditions of the settlement approved by that Order ("Settlement"). Staffrecommends
that the Commission approve the compliance tariffs effective January l, 2018.
Avista filed an application seeking authority to increase its rates for elestric and natural gas
service in ldaho on June 9,2A17. Avista proposed a two-year rate plan that would have adjusted
rates on January l, 2018, and January l, 2019. Pa*ies to the case met to discuss settlement and,
with the exception of intervenors Sierra Club and ldaho Conservation League, reached a settlement
of the issues. Stafffiled with the Commission the proposed Settlement, signed by all parties except
Sierra CIub and ICL, and a motion to approve it. After the record for the cases closed, the
DECISION MEMORANDUM 7 DECEMBER28,zOI7
Commission issued Order No. 33953 which approved the Settlement and directed the Company to
fi le appropriate tariff schedules.
The approved Settlement provides for a two-year rate plan for electric and natural gas
service. Avista will implement tariffschedules designed to increase annual base electric revenue by
$12.9 million (about 5.1% billed), effective January 1,2018, and $4.5 million (about 1.7% billed),
effective January 1,2019. Nanral gas base revenue would increase by $i.2 million (about l.9olo
billed), effective January l,2Al8, and $l.l million (about 1.8% billed), effective January 1, 2019.
The compliance tariffaddressed herein applies only to the January l, 2018, rate change. The
compliance tariffs for the second year of the rate plan that will go into effect on January 1,2019,
will be filed by the Company before that date.
Staffreviewed the tariffsheets, determined that they were consistent with OrderNo. 33953,
and they were stamped to take effect January l, 2018, as contemplated by the Commission.
COMMISSION DECISION
Does the Commission wish the minutes to reflect the Commission's approval of the tariffs
filed in compliance with Commission Order No. 33953 with an effective date of Janury l, 2018?
Bentley Erdwurm
udmcmoCAvistn Complimcc Filings dcc rncmo
'1
DECISION MEMORANDUM l DECEMBER 28, 2OI7