20190726Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: JULY 25,2019
SUBJECT:AVISTA'S APPLICATION FOR THE EXTENSION OF ITS ELECTRIC
AND NATURAL GAS FIXED COST ADJUSTMENT MECHANISMS IN
THE STATE OF IDAHO; CASE NOS. AVU-E-19-06 AND AVU-G-19-03.
On July l, 2019, Avista Corporation ("Company") applied to the Commission
requesting approval to: l) extend its Fixed Cost Adjustment ("FCA") mechanisms for electric and
natural gas service through March 37,2025;2) modify its upcoming deferral period to run from
January 1,2020 through June 30, 20211'3) implement an annual true-up to its FCA mechanisms;
and 4) extend its FCA quarterly reporting requirement fiom 45-days to 60-days. The Company
requests that its Application be processed by modified procedure.
BACKGROUND
The Commission approved the Company's FCA as a three-year pilot program in part
of the approved settlement of the Company's 2015 rate case. See Case Nos. AVU-E-15-05, AVU-
G-15-01; Application at 3; and Order No. 33437 at 10. On June 15,2018, the Commission
approved an addendum to the settlement stipulation approved in Case Nos. AVE-E-15-05 and
AVU-G-I5-01, which extended the term of the Company's FCA pilot for an additional year,
through December 31, 2019. See Order No. 34085. The Company, Commission Staff, and
interested parties reviewed the effectiveness of the FCA mechanisms at a workshop on March27,
2019, pursuant to Order Nos. 33437 and 34085. Application at2,4.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and a Notice of
Modified Procedure with a comment deadline of November 7,2019 and reply comment deadline
of November 18, 2019.
DECISION MEMORANDUM I
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure with a comment deadline of November 7,2019 and reply comment deadline of
November 18,2019?
Dayn
Deputy Attorney General
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2DECISION MEMORANDUM
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