20200204Notice_of_Application_Order_No_34541.pdf

Office of the Secretary
Service Date
February 4,2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NOS.AVU-E-19-15
OF AVISTA CORPORATION,D/B/A AVISTA )AVU-G-19-09
UTILITIES FOR AN ACCOUNTING ORDER )AUTHORIZING ACCOUNTING AND )NOTICE OF APPLICATION
RATEMAKING TREATMENT OF AFUDC )(ALLOWANCEFOR FUNDS USED DURING )NOTICE OF
CONSTRUCTION))MODIFIED PROCEDURE
)ORDER NO.34541
On December 31,2019,Avista Corporation ("Avista"or "Company")filed an
Application requesting that the Commission issue its Order authorizing the accounting and
ratemaking treatment related to a portion of its calculated Allowance for Funds Used During
Construction ("AFUDC")for the January 1,2010,through December 31,2017 period.The
Company requests that the Commission process this case by Modified Procedure.
The Commission now issues this Notice of Application,Notice of Modified Procedure
and Order setting comment and reply deadlines.
BACKGROUND
On May 2,2019,the Commission approved Avista's request to defer the difference
between the state AFUDC rate and the Federal Energy Regulatory Commission ("FERC")
AFUDC rate as a regulatory asset to be amortized over the composite remaining life of the plant-
in-service beginning in January of 2018 and continuing forward.See Order No.34326 at 3.The
Commission also authorizedAvista to use deferred accounting for the decrease in deferred federal
income taxes ("DFIT")that would result from the accounting change for the equity portion of the
AFUDC.Id.Through the present Application,the Company asks the Commission to authorize
the same treatment for AFUDC for the period of January 1,2010,through December 31,2017.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Avista is a utility that serves about 387,000
electric customers and 251,000 natural gas customers in eastern Washington and northern Idaho.
Application at 1.
YOU ARE FURTHER NOTIFIED that Avista requests Commission authorization "to
defer the AFUDC difference calculated between using the State AFUDC rate and the FERC
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34541 1
AFUDC rate as a regulatory asset (i.e.FERC Account No.182.3),which would be included in rate
base,and amortize this regulatory asset over the composite remaining life of the plant-in-service"
for January 1,2010,through December 31,2017.Id.at 2.
YOU ARE FURTHER NOTIFIED that Avista makes its request based upon
recommendations from FERC.Id.at 3.
YOU ARE FURTHER NOTIFIED that Avista represents the proposed treatment
would not impact overall rate base or present customers'rates for electric or natural gas service.
Id.at 2.
YOU ARE FURTHER NOTIFIED that the Application is available for public
inspection during regular business hours at the Commission's office.These documents are also
available on the Commission's web site at www.puc.idaho.gov.Click on the "File Room"tab at
the top of the page,then click on "Electric "or "Natural Gas,"and then "Open Cases,"and then
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 §§61-501,61-502 and 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et 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 that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the 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 any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-one (21)days from the service date of this Notice.The written comment must contain a
statement of reasons supporting it.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 the Company at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34541 2
For the Idaho Public Utilities For Avista Corporation:
Commission:
Commission Secretary David J.Meyer,Esq.
Idaho Public Utilities Commission Vice President and Chief Counsel for
P.O.Box 83720 Regulatory &Governmental Affairs
Boise,ID 83720-0074 Avista Corporation
1411 E.Mission Avenue,MSC-13
Street Address for Express Mail:Spokane,Washington 99220-3727
E-Mail:[e-mail]
11331 W.Chinden Blvd.,
Building 8,Suite 201-A Patrick Ehrbar
Boise,ID 83714 Director of Regulatory Affairs
Avista Corporation
1411 E.Mission Avenue,MSC 27
Spokane,Washington 99220-3727
E-Mail:patrick.ehrbar avistacorp.com
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.Click the "Consumers"tab then click
the "Case Comment Form"and complete the form using the case number as it appears on the front
of this document.
YOU ARE FURTHER NOTIFIED that the Company shall file any reply comments
within twenty-eight(28)days from the service date of this Notice.
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 a formal hearing.
ORDER
IT IS HEREBY ORDERED that the Application of the Company be processed by
Modified Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested in submitting
written comments must do so within twenty-one (21)days from the service date of this Notice.
The Company must file any reply comments by within twenty-eight(28)days from the service
date of this Notice.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34541 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of February 2020.
PAUL KJELLAN16ER,tl ESIDENT
KRISŸÏNËRAPEË,CÓMilISSÏONER
ERIC ANDERSON,ÔbMMISSIONER
ATTEST·
Diane M.Hanian
Commission Secretary
I:\Legal\ELECTRIC\AVU-E-19-15AVU-G-19-09\orderskAVUE1915_AVUGl909Ntc ofAppjrh.doex
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34541 4