20181207Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: JOHNATHAN FARLEY
DATE: DECEMBER 4,2018
SUBJECT:TARIFF REVISIONS FILED IN COMPLIANCE WITH ORDER NO.
33593, CASE NOS. AW-E-17-01 AIYD AW-G-U-0l, APPLICATIONS
FOR APPROVAL TO INCREASE RATES AND CHARGES
On November 13, 2018, Avista filed revisions to its Tariff as a compliance filing in Case
Nos. AVU-E-17-01 and AW-G-17-01. However, Staff found that the Company also included
changcs that should have been addressed in compliance filings for other cases, namely
GNR-U-18-01 and AVU-G-18-04. These cases and the proposed revisions are discwsed in more
detail below.
BACKGROTIND
Case Nos. AVU-E. 17-01 and AVU-G-I7-01
On June 9,2017, Avista Corporation dba Avista filed an Application seeking authority to
increase its rates for electric and natural gas service in ldaho. On December 28,2017,fhe
Commission issued Order No. 33953 that approved a Settlement Agreement and authorized rate
increases for 2018 and 2019. Electric base revenues were approved to increase by $12.9 million
(about 5.1% billed), effective January 1,2018, and $4.5 million (about 1.7%billed), effective
January 7,2019. Natural gas base revenues were approved to increase by $1.2 million (about
1.9% billed), effective January L,2018, and $l.l million (about 1.8% billed), effective January l,
2019. TheCompanyfiledconformingtariffsonDecember2S,20IT,increasingratesfor2018.
On November 9, 2018, Avista submitted a compliance filing to revise its 2019 eleckic
and natural gas rates in accordance with Commission Order No. 33953.
DECISION MEMORANDUM DECEMBER4,2OISI
Case No. GNR-U-18-01
On January 16,2018, the Commission initiated a case to investigate the impact of Federal
tax code revisions on utility costs and ratemaking. In Order No. 34070, the Commission
approved a Settlement Agreement in this case and authorized the addition of two new rate
schedules (Schedule 72 for electric and Schedule 172 for natural gas) that reflect the amount by
which Avista's energy rates decrease as a result of the Federal tax revisions. Schedules 72 and
172 were frled in Case No. GNR U-1S'01 and apprnved to be effective June I , 201 8.
As written, Avista's rate schedules refer to other rate schedules. For example, see
attachrnent. However, the Company did not file conforming tariffshects in Case No.
GNR-U-I8-01 forSchedules 1,11,21,25A,25P,31,41A,42A,428,44A,45,46A,47A,49A,
72, l0l, 1 I l, I 12, l3l, 132, and 146, to reference either Schedules 72 or 172. The Company has
filed the appropriate revisions to these schedules in this compliance filing. Because the
Company has addcd ncw Schedules to their tariff, they must file an updatcd index as well.
Case No. AVU-G-18-04
On August 27,2018, the Company's submitted an Application to change its natural gas
rates and charges as part of its annual Purchased Gas Cost Adjustment (PGA) filing. On
October 31,2018, the Commission issued Order No. 34187, approving the Company's proposed
tariff Schedules I50 and 155. It further ordered the Company to "...establish an amortization
rateof$0.09l45perthermforSchedule 101 and lll customers,and anarnortizationraterebate
of $0.00265 per therm for Schedule 146 customers." See Order at 3. The Company did not file
revised tariffs in AVU-E-I8-04, but has included the requisite revisions in this compliance filing.
Upon review of the Company's natural gas tariffs, Staff found that Schedules 101, 1l l,
ll2,l3l, 132 and 146 include base rates as well as rates that are reflected in other schedules. [f
the Company fails to make timely compliance filings when any of these ancillary rates changc,
Avista's natural gas schedules do not reflect the corect rates for customers. After discussion
with Stafl the Company agreed to amend their proposed natural gas schedules to mirror the
format of the Company's electric schedules. The Company's filed replacement sheets on
November 27,2018 that eliminate the interdependency issues identified in their original filing
while still conforming to the Commission's order.
DECISION MEMORANDUM DECEMBER 4, 20182
STAFF ANALYSIS AI\D RECOMMENDATIONS
Staffhas reviewed the proposed tariffsheets and believes they comply with the final
orders issued in Case Nos. AVU-E-17-01, AVU-G-17-01, GNR-U-I8-01 and AVU-G-18-04.
Staff has two recommendations:
1) Staffrecommends the Commission accept Avista's proposed tariff revisions in
compliance with Order Nos. 33953,34070, and 34187.
2) Staffrecommends the Commission order the Company to file an updated tariffindex
to reflect the addition of Schedule s72 and 1.72.
COMMISSION DECISION
1) Does the Commission accept Avista's proposed tariff revisions in compliance with
Order Nos. 33953 ,3447A, and 34187?
2) Does the Commission wish to order Avista to file an updated tariff index to reflect the
addition of Schedules 72 and 172?
Farley
Udmemos/Avista Compl iancr Fil ing Multipl e Cases
3DECISION MEMORANDUM DECEMBER4,2Ol8
L
l.P.U.C. No.27
Twelfth Revision Sheet 101
Ganceling
Elsventh Revlsion Sheet 101
IDAHO PUBLIG UTILITIES GOMMISSIONApproved EffectiveDec.28,2017 Jan.1,2018
Par O.N. 33953
Dlane il. Hanlan SecretaryAVISTA CORPORATION
dlbla Avista Utilities
SCHEDULE 101
GENERAL SERVICE - FIRM - IDAHO
AVAIIABLE:
To Customers in the State of ldaho where Company has natural gas servlce
available.
APPLICABLE:
To firm gas service for any purpose vuhen all such $eruice used on the
premises is supplied at one poant of delivery through a single meter.
MONTHLY RATE:Per Meter
Per Month
Baelc charge $6.00
Charge Per Therm:
Base Rate 48.3630
OTHER CHARGES:
Schedule 150 - Purchase Gas Cost Adjustment
Schedule 155 - Gas Rate Adjustnent
Schedule 175 - Fixed Cost Adjustment
Schedule 191 - Energy Efficiency RiderAdjustrnent
Schedule 158 - Tax Adjustment
32.4490
(08.8620)
02.4A60
01.818tr
Chec* MunicipalFee
Total Billing Rate * 76.234$,
Minimum Charge: $6.00
* The rates shown above as 'Other Charges" may not alweys reflect the actual rate as
this base tariff sheet cennot be updated when suspended as part of a general rate
filing. The Total Billing Rate shown above does not include municipal fees, and is
therefore subject to the provisions of Tax Adjustment Schedule 158. See the
conesponding rate schedules under Other Charges for the actual rates in effect.
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
728,
v*Jy',Director of Rates