20190701Application.pdf

Avista Corp.
141 1 East Mission P.O.Box 3727
Spokane, Washington 99220-3727
Telephone [phone]
Toll Free 800-727-9170
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June 28, 2019
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702
Case No. AVU-G-19-9-V
Natural Gas Fixed Cost Adjustment Annual Rate Filing of Avista Corporation
Dear Ms. Hanian:
Enclosed for filing with the Commission is Avista's natural gas Fixed Cost Adjustment (FCA)
annual rate adjustment filing. This filing consists of an original and seven copies of Avista's
Application, Exhibit A (the Company's proposed tariffs), Exhibit B (rate calculation), Exhibit C
(2018 deferral), and Exhibit D (customer communications) in support of the Application. A
computer readable copy of the Application, exhibits, and workpapers, required under Rule 231.05,
are included on an enclosed USB drive.
Electronic versions of the Company's filing were emailed to the Commission, and the Service List,
on June 28,2019. Those documents have also been provided on the enclosed USB drive.
Please direct any questions on this matter to me at [phone] or Tara Knox at (509) 495-
4325.
Patrick D. Ehrbar
Director of Regulatory Affairs
Enclosures
Page I of 1
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this 28th day of June,20l9, served the Application of Avista
Corporation - Fixed Cost Rate Adjustment, upon the following parties, by mailing a copy
thereof, properly addressed with postage prepaid to:
Diane Hanian, Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, lD 83702
[e-mail]. gov
Brad M. Purdy
Attorney at Law
2019N lTtr'Street
Boise, lD 83702
bmpurdy@hotmaiLcorn
Karl Klein
Deputy Attorney General
Idaho Public Utilities Commission
472W. Washington
Boise,lD 83702-0659
karl.klein@puc. idaho. gov
Peter J. Richardson
Greg M. Adams
Richardson Adams
515 N.27th Street
PO Box 7218
Boise, lD 83702
peter@richardsonadam s.com
[e-mail]
Larry A. Crowley
The Energy Strategies Institute, Inc.
3738 S. Harris Ranch Ave.
Boise, ID 83716
[e-mail]
Benjamin J. Otto
Idaho Conservation League
710 N. 6th St.
Boise, lD 83702
botto@idahoconservation. org
Ronald L. Williams
Williams Bradbury, P.C.
P. O. Box 388
802 W. Bannock, Suite LP 100
Boise, lD 83702
ron@wi ll iamsbradbury. com
Dr. Don Reading
6070 Hill Road
Boise, ID 83703
dreading@mindsprin g.com
Patrick D. Ehrbar
Director of Regulatory Affairs
1 DAVID J. MEYER2 VICE PRESIDENT AND CHIEF COUNSEL FOR
3 REGULATORY AND GOVERNMENTAL AFFAIRS
4 AVISTA CORPORATION5 14I1 E. MISSION AVENUE6 P. O. BOX 37277 SPOKANE, WASHINGTON 992208 PHONE: [phone], FAX: [phone]
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF THE FIXED COST )
ADJUSTMENT MECHANISM (FCA) )
ANNUAL RATE ADJUSTMENT FILING )
oF AVISTA CORPORATION )
CASE NO. AVU-G- l9- cr+
APPLICATION OF AVISTA
CORPORATION
18 I. INTRODUCTION
19 In accordance with Idaho Code $61-502, Commission OrderNo.33437, and RP
20 052, Avista Corporation, doing business as Avista Utilities (hereinafter "Avista" or
2l "Company"), at l47l East Mission Avenue, Spokane, Washington, respectfully makes
22 application to the Idaho Public Utilities Commission ("Commission") for an Order
23 approving the level of natural gas Fixed Cost Adjustment Mechanism (FCA) revenue
24 deferred during calendar year 2018 and authorizing FCA rates for natural gas service from
25 November 1, 2019 through October 31, 2020, and to approve the Company's
26 corresponding modifications to Schedule 175, "Fixed Cost Adjustment Mechanism -
27 Natural Gas". The FCA rate for the Residential Group (Schedule 101) is proposed to
28 change from a present rebate rate of -0.766(, to a proposed surcharge rate of 0.951(, per
29 therm. The FCA rate for the Non-Residential Group (Schedules I I I and 112) is proposed
AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 1
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to change from a present rebate rate of -1.067(, to a proposed rebate rate of -0.554(, per
therm. The Residential Group rate change represents a $ I .1 million, or 2.3o/o increase, to
Schedule 101 customers, and the Non-Residential Group rate change represents a $0.1
million, or l.lo/o, increase. The combined effect of expiring FCA rates and the proposed
2018 rates are shown on the table below.
Expiring Present
FCA Revenue
Proposed FCA
Revenue
Proposed FCA
Increase
Residential $ (484,333)$ 601,306 $ t,085,639
Non-Residential $ (275,320)$ (142,949)$ 132,370
The Company has requested a November 1,2019 effective date.
The Company requests that this filing be processed under the Commission's
Modified Procedure Rules (RP 201-204). Communications in reference to this Application
should be addressed to:
David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
Avista Corporation
P.O.Box3727
MSC-27
1411E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
David. Meyer@avi stacorp. com
Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O.Box3727
MSC-27
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
patrick. ehrbar@avi stacorp. com
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AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 2
1 II. BACKGROUND
2 The purpose of the natural gas FCA is to adjust the Company's Commission-
3 authorized revenues from therm sales, such that the Company's revenues will be
4 recognized based on the number of customers served under the applicable natural gas
5 service schedules. The FCA allows the Company to: 1) defer the difference between actual
6 FCA-related revenue received from customers through volumetric rates, and the FCA-
7 related revenue approved for recovery in the Company's last general rate case on a per-
8 customer basis; and 2) file a tariff to surcharge or rebate, by rate group, the total deferred
9 amount accumulated in the deferred revenue accounts for the prior January through
10 December time period.
1l In Case Nos. AVU-E-15-05 and AVU-G-15-01, the Commission in Order No.
12 33437 approved for Avista a Fixed Cost Adjustment Mechanism. On page 10 of Order
13 No. 33437, the Commission stated:
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The parties have also agreed upon a three-yearl FCA pilot for electric and natural
gas operations. The FCA will compare actual FCA revenues to allowed FCA
revenues determined on a per-customer basis. Any differences will be deferred for
a rebate or surcharge. There are a number of customer safeguards, including that an
FCA surcharge cannot exceed a 3Yo annual rate adjustment. Any unrecovered
balances will be carried forward to recover in future years. Further, there is no limit
to the level of the FCA rebate. As part of the Stipulation, Staff and other interested
parties, will review the efficacy of the FCA after its second full year to ensure it is
functioning as intended. Fixed cost adjustment mechanisms are intended to
encourage conservation, and allow customers more control over their bills. Further,
the proposed FCA will remove any financial disincentive of the Company to
encourage energy conservation.
27 The Section 13 of the Stipulation and Settlement, as amended by Addendum to the
On June 15,2018, the Idaho Public Utilities Commission approved an Addendum to the Stipulation
which extended the term of the pilot for an additional year by Order No. 34085.
AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 3
1 Stipulation approved by the Commission in Order No. 34085 on June 15,2018, provided
2 further details, reproduced below, regarding the mechanics of the fixed cost adjustment
3 mechanism. The proposed Tariff Sheet 175 reflects the change in the term of the
4 mechanism from three years to four in accordance with the Addendum.
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A. FCA Mechanisms Term. The Parties agree to an initial FCA term of 4 years,
with a review of how the mechanisms have functioned conducted by Avista, Staff,
and other interested parties following the end of the third full-year. Avista may
seek to extend the term of the mechanism prior to its expiration.2
B. Rate Groups. There will be two rate groups established for both the electric
FCA and natural gas FCA:
Electric Customer Rate Groups:1. Residential - Schedule 12. Commercial - Schedules 11, 12,21,22,31,32
Natural Gas Rate Groups:
L Residential - Schedule l0l
2. Commercial-Schedules Ill andll2
C. Existing Customers and New Customers. The Parties have agreed that revenue
related to certain items discussed below would not be included in the FCA for new
customers. The result is that the Fixed Cost Adjustment Revenue-Per-Customer
for new customers will be less than the Fixed Cost Adjustment Revenue-Per-
Customer for existing customers. For new electric customers added after the test
period, recovery of incremental revenue related to fixed production and
transmission costs would be excluded from the electric FCA. For new natural gas
customers added after the test period, recovery of incremental revenue related to
fxed production and underground storage facility costs would be excluded. These
modifications are included in Appendices B and C to the Stipulation.
D. Quarterly Reporting. Avista will file, within 45 days of the end of each quarter,
a report detailing the FCA activity by month. The reporting will also include
information related to the deferrals by rate group, what the deferrals would have
been if tracked by rate schedule, use and revenue-per-customer for existing and
new customers, and other summary financial information. Avista will provide such
2 Review of the mechanisms took place at a workshop March27,20l9, and the Company has filed a
separate application with the Commission to extend the term of the FCA Mechanisms through March 31,
2025.
AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 4
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other information as may be reasonably requested, from time to time, in the future
quarterly reports.
E. Annual Filings. On or before July 1, the Company will file a proposed rate
adjustment surcharge or rebate based on the amount of deferred revenue recorded
for the prior January through December time period. The rate adjustment would be
calculated separately for each Rate Group, with the applicable surcharge or rebate
recovered from each group on a uniform cents per kWh or per therm basis. The
proposed tariff (Schedule 75 for electric, Schedule 175 for natural gas) included
with that filing would include a rate adjustment that recovers/rebates the
appropriate deferred revenue amount over a twelve-month period effective on
October I for electric (to match with Power Cost Adjustment and Residential
Exchange annual rate adjustments time period) and November lst for natural gas
(to match with the annual Purchased Gas Cost Adjustment rate adjustment time
period). The deferred revenue amount approved for recovery or rebate would be
transferred to a balancing account and the revenue surcharged or rebated during the
period would reduce the deferred revenue in the balancing account. After
determining the amount of deferred revenue that can be recovered through a
surcharge (or refunded through a rebate) by Rate Group, the proposed rates under
Schedules 75 and 175 would be determined by dividing the deferred revenue to be
recovered by Rate Group by the estimated kWh sales (Electric FCA) or therm sales
(Natural Gas FCA) for each Rate Group during the twelve-month recovery period.
Any deferred revenue remaining in the balancing account at the end of the
amortization period would be added to the new revenue deferrals to determine the
amount of the proposed surcharge/rebate for the following year.
F. Interest. Interest will be accrued on the unamortized balance in the FCA
balancing accounts at the Customer Deposit Rate.
G. Accounting. Avista will record the deferral in account 186 - Miscellaneous
Deferred Debits. The amount approved for recovery or rebate would then be
transferred into a Regulatory Asset or Regulatory Liability account for
amortization. On the income statement, the Company would record both the
deferred revenue and the amortization of the deferred revenue through Account 456
(Other Electric Revenue), or Account 495 (Other Gas Revenue), in separate sub-
accounts. The Company would file quarterly reports with the Commission showing
pertinent information regarding the status of the current deferral. This report would
include a spreadsheet showing the monthly revenue deferral calculation for each
month of the deferral period (January - December), as well as the current and
historical monthly balance in the defenal account.
H. 3% Rate Increase Cap. An FCA surcharge, by rate group, cannot exceed a 3olo
annual rate adjustment, and any unrecovered balances will be carried forward to
future years for recovery. There is no limit to the level of the FCA rebate.
AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 5
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As detailed above, the Commission approved the following procedural schedule for
administering the annual natural gas FCA filings:
July 1 - Company filing for prior January - December deferral period
November I - Commission Order and effective date of natural gas FCA rate
adjustment
III. DRIVERS OF NATURAL GAS FCA SURCHARGES
l0 The FCA surcharge deferrals for Residential customers in 2018 were the result of
I I lower monthly use-per-customer than the use-per-customer that was embedded in the 2016
12 test year (i.e., the FCA base). The FCA rebate deferrals for Non-Residential customers in
13 2018 were the result of higher monthly use-per-customer than the use-per-customer that
14 was embedded in the 2016 test year (i.e., the FCA base). Residential average monthly
15 use-per-customer was lower by 2 therms, and non-residential average monthly use-per
16 customer was higher by 1 therm in 2018. The Company has identified the primary drivers
17 for the change in use-per-customer.
18 First, weather was warmer than normal during January, December and May
19 and fluctuated with offsetting impacts throughout the rest of the year, giving rise to a
20 weather normalization adjustment that required the addition of 3.2 million therms to
2l residential usage (3.2 therms per customer) and 0.6 million therms (36 therms per
22 customer) to non-residential usage. The estimated FCA revenue shortfall associated with
23 weather was approximately $ I .5 million residential and $0.1 million non-residential.
24 Since the 2016 test year used to set 2018 rates, Idaho customers have achieved
25 energy efficiency savings from participation in the Company's Demand Side Management
AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 6
1 programs. Estimated cumulative savings since the test year (derived from the Idaho 2016,3
2 2017, and2018 DSM Annual Reports) reduced residential usage in 2018 approximately
3 400 thousand therms and non-residential usage approximately 100 thousand therms. The
4 estimated FCA revenue shortfall associated with energy efficiency programmatic savings
5 is $200 thousand residential and $25 thousand non-residential.
6 The "other" drivers are related to items not easily quantifiable, such as the effects
7 of non-programmatic energy efficiency, changes in business cycles, etc. The following
8 table summarizes the impact of these drivers on the FCA Revenues received from
9 customers in 2018. In 2018 other factors tended to mitigate the quantifiable impacts from
l0 weather and programmatic energy efficiencies, resulting in a small rebate for non-
l1 residentialcustomers.
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16 IV. RESIDENTIAL GROUP RATE DETERMINATION
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The Company recorded $557,464 in the surcharge direction in deferred revenue for
the natural gas residential customer group in 20 I 8. The proposed rate of -0.95 I cents per
therm is designed to recover $601,306, from the Company's residential natural gas
For the energy efficiency savings in 2016, the Company assumed that one-half of those savings were
reflected in the test year billing determinants. The reduction in usage attributed to energy efficiency
savings in this filing include the other half of 2016 energy efficiency savings.
Residential Group
Use-per- FCA
Customer Revenue
Non-Residential Group
Use-per- FCA
Customer Revenue
(36)
(6)
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(So. l4)
(So.o2)
$0.30
$0.14
Driver
(3.2)
(0.4)
1.4
(sr.s0)
(so.2o)
$r. r4
Weather
Energy Efficiency
AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 7
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customers served under rate Schedule 101. The following table summarizes the
components of the Company's request for recovery:
2018 Deferred Revenue $557,464
Add: 2016 Carry over balance s26,725
Add: Interest through 1013112020 $ 13,304
Add: Revenue Related Expense Adj.$3,813
Total Surcharge $601,306
Customer rebate $601,306
Carryover Deferred Revenue $0
7 Exhibit B, page I shows the derivation of the proposed rate to surcharge revenue
8 of $601,306, based on projected sales volumes for Schedule 101 customers during the
9 surchargelamortization period Q.{ovember 2019 through October 2020). As identified on
10 tariff Sheet 17 5B under Step 6 of "Calculation of Monthly FCA Deferral", interest on the
I 1 deferred balance accrues at the Customer Deposit Interest Rate.a If the proposed surcharge
12 is approved by the Commission, the 2018 deferral balance, plus interest through October,
l3 and any outstanding cary over balance will be transferred into a regulatory asset balancing
14 account. The balance in the asset account will be reduced each month by the surcharge
15 received from customers under the tariff.
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t7 V. NON-RESIDENTIAL GROUP RATE DETERMINATION
18 The Company recorded $ 137,897 in the rebate direction in deferred revenue for the
19 natural gas Non-Residential Group in 2018. The proposed rebate rate of -.554 cents per
20 therm is designed to rebate 5142,949 to the Company's commercial and industrial
4 The Customer Deposit Interest Rate was 1.00% throughout 2018 then increase d to 2.00yo for 2019. The
current rate of 2.00oh has been used going forward as an estimate for purposes of this rate determination.
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AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 8
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customers served under rate Schedules 1 I I and 1 12. The following table summarizes the
components of the Company's request for rebate:
2018 Defened Revenue ($137,897)
Add:2017 Cany over balance ($853)
Add: Interest through 1013112020 ($3,409)
Add: Revenue Related Expense Adj ($7eo)
Total Rebate (9142,949)
Customer rebate (st42,949)
Carryover Deferred Revenue $0
7 Exhibit B, page 3 shows the derivation of the proposed rate to rebate revenue of
8 $142,949 based on projected sales volumes for Schedules 111 and 112 during the
9 rebatelamortization period (November 2019 through October 2020). As identified on the
10 tariff Sheet 175B under Step 6 of "Calculation of Monthly FCA Deferral", interest on the
I I deferred balance accrues at the Customer Deposit Interest Rate.5 If the proposed rebate is
12 approved by the Commission, the 2018 deferral balance, plus interest through October will
13 be transferred into a regulatory liability balancing account with any outstanding balance
14 from the rebate approved in case No. AVU-G-18-03. The balance in the liability account
15 will be reduced each month by the rebate received by customers under the tariff.
16 Support showing the monthly calculation of the 2018 defenal balances for both the
17 Residential and Non-Residential Groups is provided as Exhibit C. These calculations were
l8 also provided to the Commission in quarterly reports.
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5 Ibid
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AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 9
1 VI.3% ANNUAL RATE INCREASE TEST
2 FCA rate adjustment surcharges are subject to a3%o annual rate increase limitation.
3 There is no limit to rebate rate adjustments. As described in Tariff Schedule 175, the 3%o
4 annual rate increase limitation will be determined by dividing the incremental annual
5 revenue to be collected (proposed surcharge revenue less present surcharge revenue) under
6 this Schedule by the total "normalized" revenue for the two Rate Groups for the most recent
7 January through December time period. Normalized revenue is determined by multiplying
8 the weather-corrected usage for the period by the present rates in effect. If the incremental
9 amount of the proposed surcharge exceeds 3o/o, only a3Yo incremental rate increase will be
l0 proposed and any remaining deferred balance will be carried over to the following year.
1 I Exhibit B, page 6 shows the 3%o test for the two rate groups. Neither the 2018
12 Residential nor Non-Residential deferrals are subject to the 3o/o limitation, therefore there
13 is no proposed carry over expected.
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15 VII. EXISTING CUSTOMERS AND NEW CUSTOMERS
16 The Settlement Stipulation approved by the Commission requires that natural gas
17 customers that have been added since the test year are subject to a FCA Revenue-Per-
18 Customer that excludes incremental revenue related to fixed production and underground
l9 storage facility costs. Separate calculations for new versus existing customers are clearly
20 identified in the FCA base that was approved in Order No. 33953 (included in this filing
2l as Attachment C, pages 3 through 6).
22 Due to this segregation, Avista tracks the usage of new customers since January l,
AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 10
I 2017 as compared with existing customers.6 In general, the average usage of new natural
2 gas customers is comparable to the average usage of existing customers. Avista will
3 continue to track the usage of new customers over the Fixed Cost Adjustment term.
4
5 V[I. PROPOSED RATES TO BE EFFECTIVE NOVEMBER 1.2019
6 The Company is proposing a per therm FCA surcharge rate of 0.951f, for the
7 Residential Group, and a per therm FCA rebate rate of -.5549 for the Non-Residential
8 Group, both to become effective November I ,2019 . Exhibit B to this Application provides
9 the Residential and Non-Residential Rate Calculation, and Exhibit C provides the support
l0 for the deferrals for the January 1,2018 through December 31,2018 deferral period.
I I Attached as Exhibit A is a copy of the proposed tariff, Schedule 175, which contains the
12 proposed FCA rates. Exhibit A also includes the proposed changes to Schedule 175 in
13 strike/underlineformat.
14 Residential customers using an average of 6l therms per month would see their
l5 monthly bills increase from $45.67 to $46.72, an increase of $ I .05 per month, or 2.30Yo.
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17 IX. COMMUNICATIONS AND SERVICE OF APPLICATION
18 In conformance with RP 125, this Application will be brought to the attention of
19 the Company's customers. First, the Company has served a copy of this Application upon
20 the service list in Case Nos. AVU-E-I5-05 and AVU-G-I5-01, the cases that gave rise to
2l the FCA mechanisms. Second, a copy of Company's news release and customer notice is
6 "Existing customers" were part of the test year used to set the January I , 20 I 8 rates (20 I 6 calendar year).
"New customers" consist ofall new hookups after the test year. The proposed TariffSheet I75 replaces the
AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE I I
I provided as Attachment D. The news release will be issued on July l, 2019, and the
2 customer notice will be inserted in customer bills starting on or about July 8, 2019, and run
3 for a full billing cycle.
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5 X,JREOUEST FOR RELIEF
6 The Company requests that the Commission issue an order approving recovery of
7 FCA defenals for the period January 7,2078 through December 31,2018, and approve a
8 per therm FCA surcharge rate of 0.951f, for the Residential Group, and a per therm FCA
9 rebate rate of -.5541, for the Non-Residential Group, both to become effective November
l0 1, 2019. The Residential Group surcharge represents a $ I .l million, or 2.3%o incremental
I I increase to schedule 101 customers, and the Non-Residential Group rebate represents a
12 $0.1 million, or l.loZ incremental increase to Schedule lll and ll2 customers. The
13 Company requests that the matter be processed under the Commission's Modified
14 Procedure rules through the use of written comments.
l5 Dated at Spokane, Washington this 28th day of June 2019.
16 AVISTA CORPORATION
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BY
David J. Ifueyer
Attorney for Avista Corporation
AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 12
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VERIFICATION
STATE OF WASHINGTON )
)
County ofSpokane )
David J. Meyer, being first duly sworn on oath, deposes and says: That he is the
Vice President and Chief Counsel for Regulatory & Governmental Affairs for Avista
Corporation and makes this verification for and on behalf of said corporation, being thereto
duly authorized;
That he has read the foregoing filing, knows the contents thereof, and believes the
same to be true.
SIGNED AND SWORN to before me this 28th day of June 2079, by David J.
Meyer
illrl
EDE
p0TARY
PUBL\C
NOTARY PUBLIC in and for the State of
Washington, residing at Spokane.
Commission Expires:6-oq-JM(
AVISTA'S NATURAL GAS FCA ANNUAL RATE ADJUSTMENT FILING PAGE 13
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
AVISTA UTILITIES
CASE NO. AVU-G-19-19
EXHIBIT A
Tariff Sheets - Proposed, Strikethrough and Underline
Natural Gas Service
June 28, 2019
l.P.U.C. No.27
Third Revision Sheet 175
Canceling
Second Revision Sheet 175
lssued rporation
Patrick Ehrbar, Director of Regulatory Affairs
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 175
FIXED COST ADJUSTI/ENT MECHANISM - NATURAL GAS
PURPOSE:
This Schedule establishes balancing accounts and implements an annual Fixed
Cost Adjustment ('FCA') rate mechanism that separates the recovery of the
Company's Commission authorized revenues from therm sales to customers
served under the applicable natural gas service schedules.
TERM:
The term of the FCA mechanism is four years, effective January 1,2016 through
December 31,2019.
APPLICABLE:
To Customers in the State of ldaho where the Company has natural gas service
available. This schedule shall be applicable to all retail customers taking service
under Schedules 101, 111, and 112. This Schedule does not apply to Schedules
1311132 (lnterruptible Service), Schedule 146 (Transportation Service For
Customer-Owned Gas) or Schedule 148 (Special Contracts). Applicable
Customers will be segregated into two (2) distinct Rate Groups:
Group 1-Schedule 101
Group 2 - Schedules 111 and 112
Note - the recovery of incremental revenue related to fixed production and
underground storage cosfs will be excluded for new naturalgas cusfomers added
after the FCA Base test year.
MONTHLY RATE:
Group 1 - $0.00951 per therm
Group 2 - ($0.00554) per therm
lssued June 28, 2019 Effective November1,2019
By
7gu-u
l.P.U.C. No.27
Second Revision Sheet 175
Canceling
First Revision Sheet 175
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 175
FIXED COST ADJUSTMENT MECHANISM - NATURAL GAS
PURPOSE:
This Schedule establishes balancing accounts and implements an annual Fixed
Cost Adjustment ('FCA") rate mechanism that separates the recovery of the
Company's Commission authorized revenues from therm sales to customers
served under the applicable natural gas service schedules.
TERM:
The term of the FCA mechanism is four years, effective January 1,2016 through
December 31,2019.
APPLICABLE:
To Customers in the State of ldaho where the Company has natural gas service
available. This schedule shall be applicable to all retail customers taking service
under Schedules 101, 11 1 , and 1 12. This Schedule does not apply to Schedules
1311132 (lnterruptible Service), Schedule 146 (Transportation Service For
Customer-Owned Gas) or Schedule 148 (Special Contracts). Applicable
Customers will be segregated into two (2) distinct Rate Groups:
Groupl-Schedule101
Group 2 - Schedules 111 and 112
Nofe - the recovery of incremental revenue related to fixed production and
underground storage cosfs will be excluded for new naturalgas cusfomers added
after the FCA Base test year.
MONTHLY RATE:
Group 1 - ($0$076€) per therm
Group 2 - $eO1€67) per therm
Effective November1,2018lssued June 29, 2018
By
by Avista on
Patrick Ehrbar, Director of Regulatory Affairs
l.P.U.C. No.27
lssued by Avista Corporation
By
Third Revision Sheet 175
Canceling
Second Revision Sheet 175
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 175
FIXED COST ADJUSTMENT MECHANISM _ NATURAL GAS
PURPOSE:
This Schedule establishes balancing accounts and implements an annual Fixed
Cost Adjustment ("FCA') rate mechanism that separates the recovery of the
Company's Commission authorized revenues from therm sales to customers
served under the applicable natural gas service schedules.
TERM:
The term of the FCA mechanism is four years, effective January 1,2016 through
December 31,2019.
APPLICABLE:
To Customers in the State of ldaho where the Company has natural gas service
available. This schedule shall be applicable to all retail customers taking service
under Schedules 101, 111, and 112. This Schedule does not apply to Schedules
1311132 (lnterruptible Service), Schedule 146 (Transportation Service For
Customer-Owned Gas) or Schedule 148 (Special Contracts). Applicable
Customers will be segregated into two (2) distinct Rate Groups:
Group 1-Schedule 101
Group 2 - Schedules 111 and 112
Nofe - the recovery of incremental revenue related to fixed production and
underground storage cosfs will be excluded for new naturalgas cusfomers added
after the FCA Base test year.
MONTHLY RATE:
Group 1 - $0.00951 per therm
Group 2 - ($0.00554) per therm
Effective November1,2019lssued June 28, 2019
Patrick Ehrbar, Director of Regulatory Affairs
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
AVISTA UTILITIES
CASE NO. AVU-G-19-a9
BXHIBIT B
FCA Rate Calculation
November lr2019 - October 31, 2020
Natural Gas Service
June 28,2019
Avista Utilities
Calculation of Fixed Cost Adjustment (FCA) Surcharge or Rebate Amortization Rates
Effective November L,2019 - October 3L,2O2O
Line
No.
1
2
3
4
5
5
7
8
9
10
TL
t2
13
t4
Date
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
ldaho Residential Natura! Gas
Unamortized
Balance (1) lnterest (2)
0.00939 2.00%
ss93,ss0ss24,s39 s93rs418,37s s78s$ztt,oot sorzs231,319 54s7s160,914 5327s116,60s s231s93,029 srZSSts,soz 5143s65,605 $121sss,493 s102S41,o6e Ssos4,0oo sss
Forecast Usage
7,450,662
LL,392,955
10,857,195
9,183,133
7,534,7t8
4,744,777
2,530,11_7
L,s62,682
1,280,086
L,794,700
1,545,138
3,952,736
15 Annual Total
16 lncremental Rate to Recover Estimated lnterest
77 Estimated Rate to Recover Deferral Balance
18 Rate before Gross-up for Revenue-related items
19 Times: Gross-up for Revenue-related items (3)
20 Preliminary Proposed FCA Rate
27 3% Test Rate Adjustment (4)
22 Final Proposed FCA Rate
23 Adjusted for Revenue Related Expenses
24 Estimated Carryover Balance due to 3% test (5)
s4,000
s0.00006
s0.00939
s0.0094s
1.005873
s0.009s1
s0.00000
s0.009s1
s0.0094s
so
63,228,827
Surcharge Rate
Amortization Rate
Notes
(1) Deferral balance at the end of the month, Rate of 50.00939 to recover the October 2019 balance
of 5593,550 over 12 months. See page 2 of Exhibit B for October 2019 balance calculation.
(2t lnterest computed on average balance between beginning and end of month at the present IPUC
Consumer Deposit rate. The IPUC Consumer Deposit rate is updated annually.
http://www. puc.ida ho.eovleas/34204. pdf
AVU-G-17-01 conversion factor, see page 7 of Exhibit B.
See page 6 of Exhibit Bfor 3% test adjustment calculations.
See page 2 of Exhibit B for estimated carryover balance calculations.
(3)
(4)
(s)
EXHIBIT B Page 1 of 8
Line
No.
ldaho Residential Natural Gas
Calculate Estimated Monthly Balances through October 2020
Consumer Deposit
Ending Balance lnterest Rate Amortization
2.00%
1
4
5
6
7
8
9
10
11
t2
13
t4
15
76
77
18
19
20
2t
22
23
24
25
26
27
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
prior year carryover
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
s557,464
Sss8,393
Sssg,sz+
Ss50,2s6
$s61,190
Ss62,12s
Ss63,062
Ss64,ooo
Sssa,gao
Ss6s,882
s556,825
526,725
ss24,038
S4t7,Lo8
S31s,068
5228,699
$ts7,794
s113,1s1
Sag,sgg
fiqJsr
562,773
Ssl,szs
$gz,oss
(5roz1
ss2s
ss31
S9sz
Sg:+
se3s
ss37
SgEa
se40
Sgqz
Sg+s
s931
s784
Soro
s4s3
5322
5226
s16e
Srsz
S11s
Sgs
574
Ssr
S13,304
570,442
$L07,7L4
5102,649
586,822
s77,237
S++,asg
523,s2t
StqJtq
S12,103
s11,29s
S14,608
537,377
ss97,79sTotal
Summary
28 2018 Deferred Revenue
29 Add Prior Year Carryover Balance
30 Add lnterestthrough 7013712020
31 Add Revenue Related Expense Adj
32 Total Requested Recovery
33 Customer Surcharge Revenue
34 Carryover Deferred Revenue
5ss7,464
526,72s
S13,304
s3,813
s601,306
s601,306
So
EXHIBIT B Page 2 of 8
Avista Utilities
Calculation of Fixed Cost Adjustment (FCA) Surcharge or Rebate Amortization Rates
Effective November 1,20L9 - October 31,2020
ldaho Non-Residential
Unamortized
Balance (1)
-0.00547
(S141,056)
(s123,708)
(s102,361)
$az,+zs1
$0s,t+27
(Ssr,osr1
$42,2431
(Sss,ass1
lszt,tllT
(s2s,4s8)
(s1s,318)
(s12,eso)
(s1,107)
Natural Gas
Line
No.
1
2
3
4
5
6
7
8
9
10
11
t2
13
L4
15
Date
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
(s220)
(s188)
(Srsq)
(s123)
(Sss1
(s78)
(s6s)
(Sso1
(s47)
(Saz1
$271
(s12)
3,2L5,325
3,939,268
3,673,840
3,074,965
2,s9s,344
1,735,215
1,087,018
959,404
1,047,392
7,737,L40
1_,762,370
2,175,867
lnterest (2)
2.00%
Forecast Usage
Annual Total
76 lncremental Rate to Recover Estimated lnterest
17 Estimated Rate to Recover Deferral Balance
18 Rate before Gross-up for Revenue-related items
19 Times: Gross-up for Revenue-related items (3)
20 Preliminary Proposed FCA Rate
21 3% Test Rate Adjustment (4)
22 Final Proposed FCA Rate
23 Adjusted for Revenue Related Expenses
24 Estimated Carryover Balance due to 3% test (5)
(Sr,roz1 2s,803,150
(so.oooo4)
(so.oos47)
(So.oossrl
1.00s873
(So.ooss+1
s0.00000
(S0.00554) Rebate Rate
(S0.00551) AmortizationRate
so
Notes
(1)
(21
Deferral balance at the end of the month, Rate of -50.00547 to rebate the October 2019
balance of -5141,066 over L2 months. See page 4 of Exhibit B for October 2019 balance
calculation.
lnterest computed on average balance between beginning and end of month at the present
IPUC Consumer Deposit rate. The IPUC Consumer Deposit rate is updated annually.
http ://www. puc.ida ho.eov/gas/34204. pdf
AVU-G-17-01 conversion factor, see page 7 of Exhibit B.
See page 6 of Exhibit B for 3% test adjustment calculations.
See page 2 of Exhibit B for estimated carryover balance calculations.
(3)
(4)
(s)
EXHIBIT B Page 3 of 8
Line
No.
7
4
5
6
7
8
9
10
11
12
13
74
15
16
17
18
19
20
2t
22
23
24
25
26
27
(s230)
(Szao1
(s231)
($231)
(s231)
(s232)
$zzz1
(s233)
(s233)
(s233)
ldaho Non-Residential Natural Gas
Calculate Estimated Monthly Balance through October 2020
Consumer Deposit
Ending Balance lnterest Rate Amortization
2.00%
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
prior year carryover
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
(s137,897)
(s138,127)
(S138,3s7)
(S138,s88)
(s138,81s)
(s13s,0s0)
(s13e,282)
(s139,514)
(Sras,z+01
(s13s,e7s)
(s140,213)
-Sass
(s123,s78)
(s102,069)
(S81,988)
(Sss,rzs1
(Sso,szz1
(s41,4e8)
(Sas,szs1
(s30,346)
{.s24,6231
(s18,3s6)
(s12,01e)
(s4s)
(s220)
(s188)
(Srss)
(s123)
(Ssz1
$77l,
(5041
(Sss1
(s46)
(Sao1
(s2s)
(s10)
(S:,aos1
$17,7O9)
(s21,6s5)
(.520,234)
(s16,936)
(.5L4,2s4)
(Ss,ssz1
(Ss,ssz1
(ss,284)
(Ss,76s)
(So,zo:)
(Ss,+oz1
(S11,s84)
(s142,11s)Total
Summary
28 2018 Deferred Revenue
29 Add Prior Year Carryover Balance
30 Add lnterestthrough tO/3112O20
31 Add Revenue Related Expense Adj
32 Total Requested Recovery
33 Customer Rebate Revenue
34 Carryover Deferred Revenue
(s137,897)
-s8s3
(Sa,+os1
(s7so)
($L42,949)
(s142,949)
So
EXHIBIT B Page 4 of 8
Avista Utilities
FCA Mechanism Prior Surcharge or Rebate Amortization
Effective November 7,2018 - October 3t,2Ot9
Residential Natural Gas Rebate
Line No. Date
Regulatory
Liability Beginning
Balance lnterest Amortization
Regulatory
Liability Ending
Balance
lnterest June - October
Rate Forecast Usage
t
2
3
4
5
6
7
8
9
10
1.1
t2
Nov-18 S
Dec-18 S
Jan-19 S
Feb-19 S
Mar-19 S
Apr-19 $
May-19 S
Jun-19 S
Jul-19 S
Aug-19 5
Sep-19 S
Oct-19 S
Nov-18 S
Dec-18 S
Jan-19 S
Feb-19 S
Mar-19 S
Apr-19 S
May-19 S
Jun-19 S
Jul-19 S
Aug-19 S
Sep-19 S
Oct-19 S
(457,097.5O),
(397,426.041
(32L,057.L0)
(247,084.85\
(157,850.59)
(96,385.55)
(62,767.9O)
(46,393.89)
(34,787.19)
(24,1.64.28)
(74,947.29)
(3,359.84)
Regulatory
Liability Beginning
Balance
(270,582.L3)
(238,342.01)
(206,231..52)
(171,93L.85)
(132,777.481'
(102,366.58)
(82,124.34l,
(69,333.49)
(59,L22.931
(48,683.45)
(37,045.37\
(24,577.14l.
(Ssss.so1 5
(S2se,24) S
(s473.06) s
(Serz.rz1 5
(s211.6e) s
(S132.s2) S
(Sso.as1 5
(S67.oe) S
(s48.se) s
(Sez.sz1 5
(Srs.z+1 5
srg.+s s
60,027.36 s
76,668.t8 s
74,445.37 s
89,57'.J,.43 s
67,676.73 s
33,750.17 s
1,6,464.90 s
12,273.79 s
L0,071.50 s
9,249.56 s
LL,602.69 s
30,065.26 s
(397,426.04)
(32L,057.10)
(247,084.85)
(157,850.59)
(96,385.55)
(62,767.90],
(46,393.89)
(34,187.79)
(24,164.28)
(14,947.29)
(3,359.84)
26,724.87
t,602,323
1,314,818
1,207,5L5
7,514,7L2
3,924,968
r.oo%
L.OO%
2.OO%
2.00%
2.00%
2.OO%
2.OO%
2.00%
2.00%
2.00%
2.00%
2.00%
Non-Residential Natura! Gas Rebate
lnterest Amortization
Regulatory
Liability Ending
Balance
lnterest June - October
Rate Forecast Usage
13
1.4
15
16
17
18
19
20
2t
22
23
24
(Szrr.sol
(Srss.rol
(S:r+.a21
(szs:.r01
(s1ss.24)
(S1s3.61)
(s126.11)
(S106.e6)
(S8s.zo1
(S71.38)
(Ssr,:r1
$zt.tt1
5 32,452.08 S
s 32,295.65 s
s 34,614.54 s
S 40,0G7.53 $
5 29,946.1.4 S
S 20,395.85 S
5 12,916.96 S
5 to,3t7.s2 S5 to,szg.z4 S
5 1,1.,709.46 S
5 t2,st9.s4 S$ 23,744.82 S
{238,342.07)
{206,23t.52',)
(171,931.85)
(132,117.48)
(102,366.58)
{82,1.24.34)
(69,333.49)
(59,722.93)
(48,683.45)
(37,045.371
(24,577.1.4)
(8s3.4e)
966,965
986,808
1.,097,419
1_,173,340
2,225,392
1,.00%
L.00%
2.00%
2.OO%
2.OO%
2.00o/o
2.OO%
2.OO%
2.00%
2.OO%
2.OO%
2.OOo/o
EXHIBIT B Page 5 of 8
Line No. Date
Line No
Revenue From 20L8 Normalized Loads and
Customers at Present Billing Rates (Note 1)
2 November 2019 - October 2020 Usage
3 Proposed FCA Recovery Rates
4 Present FCA Recovery Rates (2)
5 lncremental FCA Recovery Rates
6 lncremental FCA Recovery
7 lncremental Surcharge %
8 3% Test Adjustment (2)
9 3% Test Rate Adjustment
10 Adjusted Proposed FCA Recovery Rates
11 Adjusted lncremental FCA Recovery
Avista utilities
Fixed Cost Adjustment (FCA) 3% Test
2018 ldaho Natural Gas Deferrals
Residential
S46,864,686
63,228,827
s0.009s1
so.ooooo
s0.009s1
s501,306
L.28%
So
So.ooooo
s0.009s1
s601,305
1.28%
Non-Residential Total
1 S11,603,480
25,803,150
-So.ooss+
so.ooooo
-So.ooss4
($L42,949l,
-L.23%
So
So.ooooo
-So.ooss+
(s142,949)
-1.23%
S58,468,166
S458,357
So
S458,357
72 Adjusted lncremental Surcharge %
Notes
(1) Total 2018 weather normalized billing determinants priced at the billing rates effective since
otloLl2ot9.
(2) As stated on tariff Sheet 175C, the reversal of a rebate rate is not included in the 3% incremental
surcharge test. Therefore the present rebate rates of -SO.OOZ00 Residential and -50.01067 Non-
Residential are SO.O00OO in this incremental rate calculation.
EXHIBIT B Page 6 of 8
No.
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Natural Gas System
TWELVE MONTHS ENDED DECEMBER 3I, 20I6
Line
Description
Revenues
Expense:
Uncollectibles
J Commission Fees
4
5
Idaho State Income Tax
Total Expense
Net Operating Income Before FIT
Federal Income Tax @ 35%
8
9
REVENUE CONVERSION FACTOR
AVU-E-17-01 Settlement Conversion Factor with Tax Reform
Gross Up Factor
Factor
1.000000 1.000000
0.003s64 0.003564
0.002275 0.oo2275
0.051264
2
0.057103 0.005839
6
7
0.942897 0.994161
0.330014
0.612883 0.994161
1.005873
EXHIBIT B Page 7 of 8
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
AVISTA UTILITIES
CASE NO. AVU-G-19-o'/
EXHIBIT C
FCA 2018 Deferred Revenue Calculation
Natural Gas Service
June 28, 2019
E
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AVISTA UTILITIES
Company Settlement Summary by Function with Margin Analysis
Case2018 Revenue FortheYearEnded December3l, 2016
(b)(c)
Natural Gas Utility
ldaho Jurisdiction
Line Description
Functional Cost Components at Curent Rates'l Production
2 Underground Storage
3 Distnbution4 Common
5 Total Current Rate Revenue6 Exclude Cost of Gas w / Revenue Exp.
7 Total Margin Revenue at Curent Rates
Margin per Them at Cunent Rates
8 Production
9 Underground Storage
10 Distribution
11 Common
12 Total Curent Margin Melded Rate perThem
Functional Cost Components at Unifom Cumnt Retum
13 Production
14 Underground Storage
15 Dastribution
16 Common
17 Total Unifom Curent Cost18 Exclude Cost of Gas w / Revenue Exp.
19 Total Unifom Curent Margin
l\rargin per Them at Uniform Curent Return
20 Production
2'l UndergroundStorage
22 Distribution23 Common
24 Total Curent Unifom Margin Melded Rate perThem
40,549,000 33,196,897 6,950,42't
439,493
1,693,952
26,983,600
1 1,43'1 ,954
31 3,065
1,143 425
21,849.721
9,850,686
123.154
512,561
4,825,616
1,489,089
0
0
0
0
37,966
268,264
92,'t79
40,549,000 33,'r96,897
0
6,950,421
0
0
0
401,683
0
0 401,683
$0.005'15
$0 01985
$0.31627
$0.13399
$0.00529
$0 01 933
$0.37003
$0.16652
$0.00529
$0.02203
$0.20737
$0.06399
$0.00000
$0.00000
$0.00000
$0.00000
$0.00'113
$0 01313
$0.09279
$0.031 88
$0.47526 $0.56117 00.29867 30.00000 $0.13894
439,493
1,647,826
26,939,249
't1,522,432
3'13,065
1,218,829
22,869,870
10,108,759
123,154
391,188
3,802,038
1,321,649
0
0
0
0
37,809
267,341
92.024
40,549,000 34,510,524
0
5,538,029 400,447
40,549,000 34,510,524 5,638,029 o 400,447
$0.00515 $0.00529 $0.00529 $0.00000 $0.00113
$0.01931 $0.02060 $0.01681 $0.00000 $0.01308$0.31575 $0.38660 $0.16338 $0.00000 $0.09247
s0.13505 $0.17088 $0.05679 $0.00000 $0.0318310.47526 50.58338 $0,24228 30.00000 30.1385,r
000
0
0
25 Margin to Cost Ratio at Curent Rates 1.00 0.96 1.23 0.00 1.00
Functional Cost Components at Proposed Rates
26 Production
27 Underground Storage
28 Distribution
29 Common
30 Total Proposed Rate Revenue31 Exclude Cost of Gas w / Revenue Exp.
32 Total Margin Revenue at Proposed Rates
Them at Rates
35 Distribution
36 Common
37 Total Proposed Margin Melded Rate perTherm
41,729,000 34,259,897 7,045,421 0 413,583
$0 32663 $0.38356 $0.21
$0.13662 $0.17008 $0.06451 $0.00000 $0.03241s0.48909 30.57931 $0.30275 30.00000 $0.14309
41,729,000 34,269,897 7,045,421
0
439,486 313,060 123j521,723.320 1,274,669 409,110
27,826,314 23,595,605 3,953j72
1 1,739,880 10,299,777 1,346,360
439,486
'1,765,868
27,867,327
1 1,656,320
31 3,060
1,205.029
22,690,377
10,061,430
123.152
521,349
4,899,720
1,501,200
0
0
0
0
39,489
277,230
93,690
0
00
4r3,683
0
39,542
277,537
93,742
Functional Cost Components at Unifom Proposed Retum
38
39
40
41
43
44
45
46
47
48
49
Production
Underground Storage
Distribution
Common
Total Unifom Proposed Cost
Exclude Cost of Gas w / Revenue Exp.
Total Unifom Proposed Margin
Margin per Them at Uniform Proposed Retum
Production
Underground Storage
Distribution
Common
Total Proposed Unifom Margin Melded Rate per Them
50 Margin to Cost Ratio at Proposed Rates
51 Cunent Margin to Proposed Cost Ratio
CASE NO. AVU-G-17{I SETTTEMENT STIPUIATION APPENDIX B
41,729,000 35,483,11 I
0
5,831,795 414,094
4r,729,000 35,483,1r1 5,831,795 0 414,094
$0.00515 $0.00529 $0.00529 $0.00000 $0.001 13s0.02020 $0.02155 $0 0'1758 $0.00000 $0.01368
$0.32614 $0.39887 $0.16987 $0.00000 S0.09600$0.13760 $0.1741 1 $0.05786 $0.00000 $0.03242
$0.48909 10.59982 10.25060 30.00000 t0.14323
0
0
0
0
0
0
000
1.00
0.97
0.97
0.94
1.21
1.19
0.00 1.00
0.00 0.97
Page 4 - Cost of Seruice
EXHIBIT C Page 6 of 1.2 7.1.2018 Authorized FCA Base
33
34
Production
$0.01
30.00529 50.00529 30.00000
(d) (e) (0 (e) (h) 0) (k)
Residential Large Firm lnterupt TransportSystem Service Service Service ServiceTotal sch 101 sch 1'11 sch l31 sch 146
0
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Natural Gas System
TWELVE MONTHS ENDED DECEMBER 3I,2OI6
[.ine
No.Description Factor
Revenues 1.000000 1.000000
2
Expenses:
Uncollectibles 0.003564 0.003564
J Commission Fees 0.002275 0.002275
4 Idaho State Income I'ax 0.051264 0
)Total Expenses 0.057 r 03 0.00s839
6 Net Operating lncome Before IrlT 0.942897 0.994t6t
7 Federal Income Tax @ 35o/o 0.3300 r 4
8 REVENUE CONVERSION FACTOR 0.612883
Revised per Staff_PR_079, Attachment A
CASE NO. AVU-G.17-01 SETTTEMENT STIPUTATION APPENDlX B Page 5 - Rev Conversion Factor
EXHIBIT C Page 7 of 72 1.1.2018 Authorized FCA Base
1
Avista tltilities
Natural Gas Fixed Cost Adjustment Mechanism (Idaho)
Development of Fixed Cost Adjustment Revenue by Rate Schedule - Natural Gas
AVU-G-I7-01 Rates Effective llll20lS plus Tax Reform Schedule 172 Effective 6/1/2018
,IOTAT,
GENERAL LARGEGENERAL
SERVICE SERVICE
SCHEDULE IOI SCH, I I I/I I2
OTHER
SERVICE
SCHEDULES
I Total StaIIAdjusted Nomalized Test Yea Revenue
2 Settlement Revenue Increase3 Total Base Rate Revenue (January 1,2018)
34 Ta Refom Adjustment Schedule 172
38 Tu Refom Adjusted Base Rates (Jue l, 201 8)
$
$
40.651.000 $
l, l 80.000 $
33,t97,000 $
r.073.000 $
6,950,000
95,000
$
$
505,000
I 2,000
41.832.000 $
(2.5s6.00!) $
34.270.000 $
(2.099.000) s
7,045.000
(432.000)
$
$
5 I 7.000
(25.000)
$ 39.276.000 $
138,2t2,674
32,171,000 $
59,156,634
6,6t 3,000
23,2',71.1te
s 492,000
55,784,9214 Normalized Thems (Test Year)
5 WACOG Rate Embedded in Base Rates
6 Variable Gas Cost Revenue (Ln 4 * Ln 5)
6,{ Fixed Production and Underground Storage
68 Fixed Production and Undergromd Storage
$
$
Rate per (New Customers Only)
Revenue (New Customers Only) $
s
$
$
$
$
$
2,205,353
38.784,000
36.621,410
960,302
7.4fi,736
31,3',72,264
29,209,674
0.02566
r,5 | 8.089
o.02770
644,501 $42.763
7 Subtotal (Ln 3 - Ln 6)
7A Subtotal (Ln 3 - Ln 6 - Ln 68)
(Test Yetr Customers) $
(New Customers) $
s
s
31,171,000 $
30,652,9r r $
6.6 I 3.000
5,968,499
Excluded From
Fixed Cost
Adjustment
$
$
943,245
6.00 $
5,659,470 $
17,057
1o213
1,752.266
I I FixedCostAd1ustment Revenue (Ln 7- Ln l0)
I lA Fixed Cost Adjustment Revenue (Ln 7A - Ln l0)
(Test Year Customers) $
(New Customers) $
$
$
26,51 t,530 $
24.993.44t $
4,860.',734
4,216,233
Residential Non-Residential Group
1,42t
23,2'71,1t9
1,7 52,266
t.1,05.1
s I 02.73
l2 Average Nmber of Customers (Line 8 / l2)
I 3 Amual Thems
l4 Basic Charge Revenues
l5 Customer Bills
l6 Average Basic Charge
78.604
59,156.634
5.659.4'10
943.245
$6 00
CASE NO. AVU-G-17-01 SETTLEMENT STIPULATION APPENDIX D WITH SCHEDULE I72 Page I - Baseline
EXHIBIT C Page 8 of 12 6.1.2018 Authorized FCA Base
$
$
$
$
8 Customer Bills (Test Yeil)9 Settlement Fixed Chargesl0 Fixed Charge Revenue (Ln 8 | Ln 9)
Avista Utilities
Natural Gas Fixed Cost Adjustment Mechanism (Idaho)
Development of Annual Fixed Cost Adjustment Revenue Per Customer - Natural Gas
AVU-G-17-01 Rates Effective llll20l8 plus Tax Reform Schedule 172 Effective 6/l/2018
Line Source Residential Non-Residential
Sched ules*No,
(a)
Exbting Customer FCA
I Fixed Cost Adjustment Revenue
2 Test Year Number of Customers
3 Fixed Cost Adjustment Revenue Per Customer
New Customer FCA
I Fixed Cost Adjustment Revenue
2 Test Year Number of Customers
3 Fixed Cost Adjustment Revenue Per Customer
*Scheduleslllandl12.
Revenues
From revenue per customer
From basic charge
From gas supply
Total
(b)
Page I $
Revenue Data $
(l)/(2) $
Page I $
Revenue Data $
(l)/(2) $
(c)
26,51 1,s30 $
78,604 $
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1,421
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4.860,733
1,752,266
$
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$ 32,170,943 $ 6,6t2,999
CASE NO. AVU-G-17-01 SETTLEMENT STIPULATION APPENDIX D WITH SCHEDULE 172 Page 2 - Fixed Cost Adj. RPC
EXHIBIT C Page 9 of 12 5.1.2018 Authorized FCA Base
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Settlement AVISTA UTILITIES
Case 2018 Summary by Function with Margin Analysis
Revenue Forthe Year Ended Oecember3l, 2016
(s)
Residential
Service
Sch 1 01
Natural Gas Utility
ldaho Jurisdiction
(h)
Large Firm
Seruice
Sch'111
(k)0)(b)(c)(d) (e)(0
System
Total
lnterrupt Transport
Line Description
Service
Sch 1 31
Seruice
Sch 146
Functional Cost Components at Curent Rales
1 Production
2 Underground Storage3 Distribution
4 Common
5 Total Curent Rate Revenue
6 Exclude Cost of Gas w / Revenue Exp
7 Total Margin Revenue at Current Rates
lvlargin per Therm at Current Rates
8 Production
9 Underground Storage
'10 Distnbution
11 Common
12 Total Current Margin lrelded Rate perTherm
Underground Storage
Distribution
Common
Total Uniform Current Cost
Exclude Cost of Gas w / Revenue Exp.
Total Unifom Cunent l\rargrn
40,549,000 33,196,897
439,493
1,693,952
26,983,600
11,431,954
313,065
1,143/25
21,889,721
9,850,686
123,154
5'12,561
4,825,6'16
1,489,089
0
0
0
0
3,273
37,966
268.264
92,179
00
6,950,421
0
0
0
401,683
040,549,000 33,196,897 6,950,42r 0 401,683
$0.0051 5
$0.01 985
$0 31627
$0.'13399
$0 00529
$0.01933
s0.37003
$0.'16652
$0.00529
$0.02203
$o.20737
$0.06399
$0.00000
$0.00000
$0.00000
$0.00000
$0.001 13
$0.01313
s0.09279
$0.03188
50.47526
439,493
't,647,826
26,939,249
11,522,432
90.56't t7
313,065
1,218,829
22,869,870
1 0,1 08,759
123,154
391,1 88
3,802,038
1,321,649
$0.29867 $0.00000 $0.13894
Functional Cost Components at unifom Current Return
Production
0
0
0
0
0
0
13
14
'15
16
17
18
19
3,273
37,809
267.341
92,O24
40,549,000 34,510,524 5,638,029 0
0
400,447
400,44740,549,000 34,510,524 5,638,029
Margin per Them at Unifom Curent Retum
20 Production $0.00515 $0.00529 $0.00529 $0.00000 $0.00113
21 Underground Storage $0.01931 $0.02060 $0.01681 $0.00000 $0.01308
22 Distribution $0.3'1575 $0.38660 $0.16338 $0.00000 $0.09247
23 Common $0.13505 $0.17088 $0.05679 $0.00000 $0.03183
24 Total Curent Unifom Margin Melded Rate perThe $0.47526 $0.58338 30.24228 f0.00000 30.13851
25 MargintocostRatioatcurentRates 1.00 0.96 1.23 0.00 1.00
Functional Cost Components at Proposed Rates
26 Production
27 Underground Storage
28 Distribution
29 Common30 Total Proposed Rate Revenue
31 Exclude Cost of Gas w / Revenue Exp.
32 Total Margin Revenue at Proposed Rates
Rates
36 Common
37 Total Proposed Margin Melded Rate per Them
39 Underground Storage
40 Distribution
41 Common
42 Total Unifom Proposed Cost
43 Exclude Cost of Gas w / Revenue Exp.
44 Total Unifom Proposed Margrn
Margin per Them at Unifom Proposed Retum
45 Production
46 Underground Storage
47 Distribution
48 Common
49 Total Proposed Uniform Margin Melded Rate per Tl
439,486 313,060 123,152 0 3,273'1,765,868 1,205,029 521.349 0 39,48927,867,327 22,690,377 4,899,720 0 277 ,23011,656,320 '10,061,430 1,501,200 0 93,69041,729,000 34,269,897 7,045,421 0 413,683
00000
41,729,000 34,269,897 7,045,421 0 413,683
055 $0.00000
$0.00000
$0.09589
$0.03241$0.13662 $0.17008 $0.06451
30.48909 $0.57931 s0.30275 $0.00000 $0.'t4309
Functional Cost ComponenB at Uniform Proposed Retum
38 Production 439,486
1,723.320
27,826,314
1 1,739,880
31 3,060
1,274,669
23,595,605
10,299,777
123,152
409,1 10
3,953,172
1,346,360
3,273
39.542
277,537
93,742
0
0
0
0
41,729,000
0
s0.0051 5
$0.02020
$0.32614
$0.13760
35,483,111
41,729,000 35,483,111
5,83r,795
5,831,795
$0.00529
$0 01 758
$0.16987
$0.05786
414,094
00 414,094
0
0
0
$0.00529
$0.021 55
$0.39887
$0.1741 1
$0.00000
$0.00000
$0.00000
$0.00000
$0.001 13
$0.01 368
$0.09600
$o.03242
$0.48909 30.59982
50 Margin to Cost Ratio at Proposed Rates '1.00 0.97
51 Curent Margin to Proposed Cost Ratio 0.97 0.94
CASE NO. AVU.G.I7.O1 SETTLEMENT STIPULATION APPENDIX D WITH SCHEDULE 172
EXHIBIT C Page 11 of 12
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5.1.2018 Authorized FCA Base
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