20191104Application.pdf

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Avistr Co.p.
l4l I East Mission P.O. Box 3727
Spokane. washington 99220-0500
Tclcphonc 509489-0500
Toll lrree 800-727-9170
November l, 2019
Via: Overnight mail
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714
AvE-G- l1-o7
RE: Avista Utilities Application for Reauthorization of Deferred Accounting lbr Natural Gas
Fee Free Program
Dear Ms. Hanian:
Enclosed for filing with the Commission is the Application ol' Avista Corporation, dba Avista
Utilities ("Avis1a" or "the Company"), For An Accounting Order Reauthorizing Accounting and
Ratemaking Treatment of Fees For Payments Made By Residential Customers. The fi[ing consists
oflan original and seven copies of Avista's Application.
Please direct any questions regarding this filing to me at [phone] or
iaime.mai [e-mail].
Sincerely,
/,/.6' %,,*
Jaime Majure
Regulatory Policy Analyst
Avista Utilities
[e-mail]
s09.495.7839
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Enclosures
DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY AND GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
P.O.BOX3727
I411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220 -3727
TELEPHONE: [phone] l6
david.mevertEavistacom.com
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IN THE MAT-IER OF THE APPLICATION OF
AVISTA CORPORATION, D/B/A AVISTA
UTILITIES, FOR AN ACCOLNTING ORDER
REAUTHORIZINC ACCOUNTING AND
RATEMAKING TREATMENT OF FEES FOR
PAYMENTS MADE BY RESIDENTIAL
CUSTOMERS
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APPLICATION OF AVISTA CORPORATION
BEFOR.U THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. AVU-C-19{tr
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II. SUMMARY OF APPLICATION
Avista rcquests Commission reauthorization to defer, for later recovery in rates, the
natural gas portion of costs incurred to offer a fee-free payment program for its residential
customers. Initial deferral ofthese costs related to the Company's Proglam was authorized by
the Commission on April 1, 2016, through Order No. 33494 in Case Nos. AVU-E-I6-0'l and
AVU-G-16-01. Avista has, since that time, filed an electric-only general rate case in Idaho,
Case No. AVU-E-19-04, tkough which the amortization and recovery of the Company's
electric deferrals related to the Fee-Frse Program was addressed as part of the all-party
Settlement and Stipulation filed on October 15, 2019.' As such, Avista respectfully requests
that the Commission allow further defenal of the outstanding natural sas funds until such time
the Company can seek to recover the program's costs as part of its ncxt natural gas general rate
III. BACKGROUND
On January 13,2016, Avista filed with the Idaho Public Utilities Commission
("Commission", or "IPUC") an Application requesting an order authorizing accounting and
ratemaking treatment offees for credit and debit card payments made by residential customers.
In its Applioation, thc Company requested authorization to record, as a regulatory asset, the
costs incurred to allow residential customers to pay bills tluough its web site or by telephone
without also having to pay a third-party vendor a "convenience fee" of $3.50 for processing
the transaction. Avista asked to defer these fees for up to 36 months from the time the program
I Parties to the Settlement in Case No. AVU-E-19-04 include Avista Utilities, Commission Staff, Clearwater
Paper Corporation, Idaho Forest Group Ll.C (lFG), the Community Action Partnership Association of ldaho
(CAPAI), Idaho Conservation L€ague (lCL), and Walmart, Inc.
Application of Avista Corporation
Case No. AVU-G-19-
Page 2
case.
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went into effect, proposing that the delbned balance would be included in the Company's next
general rate case and arnortized over 24 months.
On April 1, 2016 the Commission issued Order No. 33494 in Case No. AVU-E-16-01
and AVU-G-16-01, approving Avista's Application, including deferred accounting treatment
of up to 36 months. The Commission also ordered that the amortization period was to be
determined in the Company's next general rate caso. The Fee-Free Program was then
successfully launched February 19,2017 .
IV. PROPOSED ACCOUNTING TREATMENT
Presently, Avista records the costs inouned from its Fee Free Program in Account I 82.3
- Other Regulatory Assets. A summary of the accounting enties follow:
FERC Acct, No. Account llescription
903.X Customer Records and Collection Expenses
232.1 Accounts Payable - General
To record poyment of customer poyment transaction fees
Other Regulatory Assets
Regulatory Credits - Deferral
To rccord deferrol of customer poyment tronsaction fees.
182.3
407.4
Debit Credit
S 1oo
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s 100
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Note: Associated current and deferred income taxes will be recorded
ln this filing, the Company is requcsting an ordcr allowing the continued defenal ofall
fees paid by Avista related to offering a fee-free program for payment of bills by Idaho natural
gas residential customers. Absent a Commission order allowing for the defenal and recovery
ofthese costs, the Company will not otherwise offer a fee-free payment program as it would
result in a loss to the Company and its shareholders.
Application of Avista Corporation
Case No. AVU-G-I9-
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As previously stated, in the future general rale case Avista would request recovery of the
deferred balance over a period to be determined during the course of the case, beginning on
the effective date of new rates from the rate casc, 'l'he Company does not seek to accrue interesl
on the deferrals. 'Ihe monthly accounting entries to record the amortization would be as
follows:
FERC Acct. No, Account Desc.iotlon
4O7.3 Regulatory Debits - Amortization SL82.3 Other Regulatory Assets
To record omortizotion of customer poyment transoction fees.
Debit crcdit
100
S 1oo
Note: Associated current and deferred income taxes will be recorded.
V. CURRENT DEFERRAL BALANCES
The Company has paid invoices through September 2019 for its Fee Free Program, As
of September 20,l9, $1,021,808 of Idaho customer transactions through the fee-free payment
program had been defered, of which $400,204 was deferred for natural gas customers. The
Company estimates the amount to be deferred through January 31, 2019 to be approximately
$468,000 for natural gas.
VI. REQUEST FORRELIEF
WHEREFORE, Avista respectfully requests that the Commission issue an Order
reauthorizing thc use ofdeferrcd accounting and ratcmaking treatment ofthe costs incurred for
Avista to offer a fee-free payment program for its natuml gas residenlial customers. Requested
amortization and recovery ofthe deferred costs will occur through the Company's next natual
gas general rate case proceeding.
Application of Avista Corporatron
Case No. AVU-G-I9-
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The Company respectfully rcquests that this Case be processed under the
Commission's Modified Procedure ruIes through the use of written comments.,,L
DATED at Spokane, Washington, this ,/ day of November 2019.3
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AV1STA CORPORATION
By:
Dav
and Chief Counsel for
Regulatory & Govemmental Affairs
Avista Corporation
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Application of Avista Corporarion
Case No. AVU-G-I9-
Page 5
STATE OF WASHINGTON )
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County ofSpokane )
David J. Meyer, being first duly sworn on oath, deposes and says: 'lhat he is the
Vice President and Chief Counsel for Regulatory and Covemmental Affairs for Avista
Corporation and makes this verification for and on behalfofsaid 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
J. Meyer.
\t
day ofNovember 2019, by David
NOTA PUBLIC in and for the State of
Washington, residing at Spokane.
Commission Expires:2
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Pueuto
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Application of Avista Corporation
Case No. AVU-G-I9-
VI'RIFICATION
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