20181101final_order_no_34187.pdf

Office of the Secretary
Service Date
November 1,2018
BEFORE THE IDAHO Pt IRIt i TIL ITIEN G)MMISSION
IN THE MATTER OF AVISTA )CORPORATION DBA AVISTA UTILITIES')CASE NO.AVU-G-18-04
APPLICATION TO CHANGE ITS NATURAL )GAS RATES AND CHARGES (PURCHASED )GAS COST ADJUSTMENT))ORDER NO.34187
On August 27,2018,Avista Corporation dba Avista Utilities filed an Application
requesting authorityto change its natural gas rates through the Purchased Gas Cost Adjustment
(PGA)mechanism.Avista requests a Weighted Average Cost of Gas (WACOG)of $0.17025 per
therm and requests that its Application be processed by Modified Procedure.
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-
including changes 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.
On September 12,2018,the Commission issued a Notice of Application and Notice
of Modified Procedure.Order No.34144.The Commission set an October 10,2018 general
comment deadline.Commission Staff filed the only comments and supported the Company's
Application.Avista did not file reply comments.Having reviewed the record,we issue this
Order approving Avista's Application and proposed tariffs as filed,effective November 1,2018.
THE APPLICATION
Avista states its proposal,if approved,would decrease rates for the average
residential or small commercial customer about $0.34 per month (0.7%).Avista proposes to
change its PGA rates for its customer classes as follows:
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 101 $0.00654 $(0.00918)$(0.00264)$(0.00283)$(0.00547)-0.8%
Lg.General 111 $0.00654 $(0.00918)$(0.00264)$(0.00283)$(0.00547)-0.8%
Lg.General 112 $0.00654 $(0.00918)$(0.00264)$-$(0.00264)-0.3%
Interruptible 131 $0.00654 $-$0.00654 $-$0.00654 1.7%
Transportation 146 $-$-$-$(0.00265)$(0.00265)-2.2%
Id at 2-4.
ORDER NO.34187 1
Avista estimates its commodity costs in Schedule 150 will increase by $0.00654 per
therm,from the currentlyapproved $0.16371 per therm for customers resulting in a WACOG of
$0.17025 per therm.Id.at 3.Avista proposes a $0.00918 per therm decrease in the overall
demand rate for customers on Schedules 101,111,and I12.
Avista proposes to increase the amortization rate rebate by $0.00283 per therm for
customers on Schedules 101 and 111,resulting in an amortization rate of $0.09145 per therm.
Transportation customers on Schedule 146 would receive an amortization rate rebate of
$0.00265 per therm.The new rates,and correspondingchanges to Schedules 150 (PGA)and 155
(As Rate Adjustment),would take effect November 1,2018.
THE COMMENTS
Staff filed the only comments in this matter,and supports the request.Staff stated that
it is concerned that Avista did not provide lost and unaccounted for gas calculations with its
filing and did not disclose that until questioned.Staff also stated that Avista stopped providing
quarterly reports in 2015 because,starting with Order No.33402,the Commission no longer
explicitly required quarterly WACOG reports.Staff finds value in these reports and
recommends that the Commission order Avista to resume filing its quarterly WACOG reports
and monthlydeferred costs reports.
DISCUSSION AND FINDINGS
The Commission has reviewed the record,including the Application and comments.
Avista is a gas corporation and public utility,and the Commission has jurisdiction over it and the
issues in this case under Title 61 of the Idaho Code,and more specifically,Idaho Code §§61-
117,61-129,61-307,61-501,and 61-502.The Commission must establish just,reasonable,and
sufficient rates for utilities subject to its jurisdiction.Idaho Code §61-502.
Based on our review of the record,we find that Avista's proposed Schedule 150
accurately captures Avista's variable costs.We thus find it fair,just,and reasonable to approve
Avista's proposed Schedule 150,including the proposed WACOG of $0.17025 per therm.We
further find it appropriate for the Company to update its demand costs,and any changes to its
deferral account in its regular PGA filing.We find the proposed amortization rate of $0.09145
per therm for Schedule 101 and 111 customers to be just and reasonable.We further find an
amortization rate rebate of $0.00265 per therm for Schedule 146 customers to be just and
ORDER NO.34187
reasonable.Therefore,we approve the proposed Tariff Schedule 155.Finally,the Company
should issue direct notice to its customers of these changes in accord with Rule 125.
We also find that quarterly WACOG reports and monthly deferred cost reports
provide useful information and assist Staff with determining whether to audit earlier than
planned,and whether an interim filing might be needed.
ORDER
IT IS HEREBY ORDERED that Avista's Application to change its natural gas rates
and charges is approved.Avista shall establish a WACOG of $0.17025 per therm.Avista shall
further establish an amortization rate of $0.09145 per therm for Schedule 101 and 111 customers,
and an amortization rate rebate of $0.00265 per therm for Schedule 146 customers.Avista's
proposed tariffs are approved as filed,effective November 1,2018.
IT IS FURTHER ORDERED that Avista shall promptly apply to amend its WACOG
if gas prices materiallydeviate from the WACOG approvedin this Order.
IT IS FURTHER ORDERED that Avista resume filing quarterly WACOG reports
and monthlydeferred cost reports on an ongoing basis.
THIS IS A FINAL ORDER.Any person interested in this Order (or in issues finally
decided by this Order)may petition for reconsideration within twenty-one (21)days of the
service date of this Order.Within seven (7)days after any person has petitioned for
reconsideration,any other person may cross-petition for reconsideration.See Idaho Code §61-
626.
ORDER NO.34187 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
a of October,2018.
PAUL JELEAbfD PRESIDENT
KRI E RAPE CØMMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
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