20180110notice_of_application_order_no_33963.pdf

Office of the Secretary
Service Date
January 10,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA )CORPORATION'S APPLICATION TO )CASE NO.AVU-G-17-06
CHANGE ITS NATURAL GAS RATES AND )
CHARGES (2016 PURCHASED GAS COST )NOTICE OF APPLICATION
ADJUSTMENT))
)NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.33963
On December 26,2017,Avista Corporation dba Avista Utilities filed its annual
Purchased Gas Cost Adjustment (PGA)Application.By way of summary,the PGA is a
Commission-approved mechanism that adjusts rates up or down to reflect changes in Avista's
costs to buy natural gas from suppliers-includingchanges in transportation,storage,and other
related costs.Avista defers these costs into its PGA account,and then passes them on to
customers through an increase or decrease in rates.
With this Application,Avista proposes to decrease its PGA rates by about $3.2
million (7.4%).Application at 1.The proposal would decrease the average residential or small
commercial customer rates by $2.73 per month (about 6.4%).Large commercial customer rates
would decrease by about 10.3%.Avista's proposal would not affect Avista's earnings.Avista
asks the Commission to process the Application by Modified Procedure,and that the new rates
take effect January 26,2018.Id.at 4.
NOTICE OF APPLICATION
A.Overview of Proposed Rates
YOU ARE HEREBY NOTIFIED that Avista distributes natural gas in northern
Idaho,eastern and central Washington,and southwestern and northeastern Oregon.Avista buys
natural gas and then transports it through pipelines for delivery to customers.In this PGA
Application,Avista proposes to:(1)pass any change in the estimated cost of natural gas for the
next 12 months to customers (Tariff Schedule 150);and (2)revise the amortization rates to
refund or collect the balance of deferred gas costs (Tariff Schedule 155).Avista proposes to
change its PGA rates for its two customer classes as follows:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33963 1
Commodity Demand Total Amortization Total Rate Overall
Schedule Change per Change per Sch.150 Change per Change per Percent
Service No.Therm Therm Change Therm Therm Change
General 10 1 $(0.05520)$-(0 05520)$-($0.05520)(6.7%)
Lg.General 111 $(0.05520)$-$(0.05520)$(0.06958)$(0.05520)(10.3%)
Id at 2.Avista's proposed changes to Schedules 150 and 155 and Avista's rates are further
explained below.
B.Schedules 150 and 155
YOU ARE FURTHER NOTIFIED that the tariff Schedule 150 portion of the PGA
has two parts:the "commoditycosts"and the "demand costs."
YOU ARE FURTHER NOTIFIED that Avista's "commodity costs"are the variable
costs at which Avista must buy natural gas.The weighted average cost of gas (WACOG)is an
estimate of those costs.In this case,Avista estimates its commodity costs will decrease by
$0.02167 per therm,from the currentlyapproved $0.24058 per therm to $0.21891 per therm.Id.
at 3.In order to minimize exposure to potential rising gas costs,Avista diversifies how it
procures natural gas.Id.Avista's procurement strategy includes hedging,the use of underground
storage capacity,and estimating the cost of index purchases using a 30-day historical average of
forward prices for each supply basin.Id.
YOU ARE FURTHER NOTIFIED that Avista is not requesting any change related to
demand charges in this filing.Demand costs primarily are costs to transport gas on interstate
pipelines to Avista's local distribution system.Avista states that any changes related to demand
charges will occur in the Company's next annual PGA filing.1d at 3.
YOU ARE FURTHER NOTIFIED that Tariff Schedule 155 reflects the amortization
of Avista's deferral account.Avista is not requesting any change related to amortization charges
in this filing.Avista states that any changes related to amortization charges will occur in the
Company's next annual PGA filing.Id.at 3-4.
YOU ARE FURTHER NOTIFIED that Avista asserts it will notify customers of its
proposed tariffs by means of a press release.Id at 2.
YOU ARE FURTHER NOTIFIED that the Application and its exhibits have been
filed with the Commission and are available for public inspection during regular business hours
at the Commission offices.These documents are also available on the Commission's web site at
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33963 2
www.puc.idaho.gov.Click on the "File Room"tab at the top of the page,scroll down to
"Natural Gas Cases,"and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED 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,-502,and -503.The Commission may enter any final Order consistent
with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will 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 all comments on this Application shall be
filed with the Commission no later than January 17,2018.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 Avista at the addresses reflected below:
Commission Secretary Patrick D.Ehrbar
Idaho Public Utilities Commission Director of Rates
PO Box 83720 Avista Utilities
Boise,ID 83720-0074 1411 E.Mission Avenue
Spokane,WA 99220-3727
Street Address for Express Mail:E-Mail:[e-mail]
472 W.Washington Street David J.Meyer
Boise,ID 83702-5918 Vice President and Chief Counsel for
Regulatory and Governmental Affairs
Avista Utilities
1411 E.Mission Avenue
Spokane,WA 99220-3727
E-Mail:[e-mail]
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33963 3
These 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.Scroll to the "Consumers"tab,click
the "Utility Case Comment or Question Form,"and complete the form using the case number as
it appears on the front of this document.These comments must also be sent to Avista at the e-
mail addresses listed above.
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
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.
O RD ER
IT IS HEREBY ORDERED that Avista's PGA Application be processed under
Modified Procedure,IDAPA 31.01.01.201-.204.All comments relating to this matter must be
filed no later than January 17,2018.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this '
day of January 2018..,,77 ,,7
PA KJELLA SIDENT
KRI TINE RAPER,C MISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane Hanian
Commission Secretary
I:\Legal\LORDERS\AVUGl706 bk (order).doc
NOTICE OF APPLICATION
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ORDER NO.33963 4