20200630Application.pdf

.iivtsra
Avista Corp.
l4l1 East Mission P.O.Box3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
June 30,2020
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State of Idaho
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Building 8, Suite 201-A
Boise,Idaho 83714
Case No. AVU-G-20-09
LP.U.C. No. 27 - Natural Gas Service
In accordance with Case No. GNR-U-20-01, Order No. 34602, which suspends the requirement to file
physical copies, the Company has attached for electronic filing with the Commission are the following
revised tariffsheets:
Twenty-Eighth Revision Sheet 150 canceling Twenty-Seventh Revision Sheet 150
Twenty-Second Revision Sheet 155 canceling Twenty-First Revision Sheet 155
The Company requests that the proposed tariffsheets be made effective November 1,2020. These tariff
sheets reflect the Company's annual Purchased Gas Cost Adjustment ("PGA'). If approved, the
Company's annual revenue will increase by approximately $0.4 million or approximately 0.7%o. The
proposed changes have no effect on the Company's earnings. Detailed information related to the
Company's request was filed electronically along with the attached Application and supporting
workpapers.
Filed concurrently with this PGA is the Company's annual Fixed Cost Adjustment Mechanism (FCA). If
both the natural gas FCA and PGA filings are approved, residential natural gas customers in Idaho using an
average of 64 therms per month would see their monthly bills decrease from $50.98 to $50.18, a decrease
of $0.80 per month, or approximately l.60/o. The proposed natural gas rate changes would be effective Nov.
1,2020.
If you have any questions regarding this filing, please contact Annette Brandon at [phone]
Sincerely,
/s/ Patrick D. Ehrbar
Patrick D. Ehrbar
Director of Regulatory Affairs
ff{i:f;illVEE
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION l4iff juii 30 pl{ lZ: 25
.' "11i, !.,JSi-i\:,',1, : .-,:,". i'l:CiiL{fSgl$f_.l
IN THE MATTER OF THE APPLICATION OF )
AVISTA UTILITIES FOR AN ORDER APPROVING ) CASE: AW-G-20-09
A CHANGE IN NATURAL GAS RATES AND CHARGES )
Application is hereby made to the Idaho Public Utilities Commission for an Order approving a revised
schedule of rates and charges for natural gas service in the state of Idaho. The Applicant requests that
the proposed rates included in this Purchased Gas Cost Adjustrnent (*PGA") filing be made effective on
November 1,2020. If approved as filed, the Company's annual revenue will increase by approximately
$0.4 million or about 0.7%. [n support of this Application, Applicant states as follows:
I.
The name of the Applicant is AVISTA CORPORATION, doing business as AVISTA UTILITIES
(hereinafter Avista, Applicant or Company), a Washington corporation, whose principal business office
is 141 I East Mission Avenue, Spokane, Washington, and is qualified to do business in the state of Idaho.
Applicant maintains district offices in Moscow, Lewiston, Coeur d'Alene, Sandpoint, and Kellogg,
Idaho. Communications in reference to this Application should be addressed to:
Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
141I E. Mission Avenue
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]
Pat. ehrbar@avistacorp. com
II.
Attorney for the Applicant and his address is as follows:
David J. Meyer
Vice President and Chief Counsel for Regulatory
And Govemmental Affairs
Avista Utilities
1411 E. Mission Avenue
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]
[e-mail]
CaseNo. AVU-G-20-0_Page I of5
m.
The Applicant is a public utility engaged in the distribution of natural gas in certain portions ofNorthern
Idaho, Eastern and Central Washington, and Southwestern and Northeastern Oregon, and further
engaged in the generation, transmission, and distribution of electricity in Northern Idaho and Eastern
Washington.
rV
Twenty-Eighth Revision Sheet 150, which Applicant requests the Commission approve, is filed herewith
as Exhibit "A". Additionally, Twenty-Second Revision Sheet 155, which Applicant requests the
Commission approve, is also filed herewith as Exhibit "A". Also included in Exhibit "A" is a copy of
Twenty-Eighth Revision Sheet 150 and Twenty-Second Revision Tariff Sheet 155 with the changes
underlined and a copy of Twenty-Seventh Revision Sheet 150 and Twenty-First Revision Tariff Sheet
155 with the proposed changes shown by lining over the current language or rates.
V
The existing rates and charges for natural gas service on file with the Commission and designated as
Applicant's Tariff IPUC No. 27, which will be superseded by the rates and charges filed herewith, are
incorporated herein as though fully attached hereto.
VL
Notice to the Public of Applicant's proposed tariffs is to be given simultaneously with the filing of this
Application by posting, at each of the Company's district offices in Idaho, a Notice in the form attached
hereto as Exhibit "B" and by means of a press release distributed to various informational agencies, a
draft copy attached hereto in Exhibit "C". fn addition, Exhibit "C" to this Application also contains the
form of customer notice that the Company will send to its customers in its monthly bills in the July
timeframe.
vII.
The circumstances and conditions relied on for approval of Applicant's revised rates are as follows:
Applicant purchases natural gas for customer usage and transports it over Williams Northwest Pipeline,
Gas Transmission Northwest (GTN), TC Energy - Alberta, TC Energy - BC and Enbridge Energy
Pipeline systems, and defers the effect of timing differences due to implementation of rate changes and
differences between Applicant's actual weighted average cost of gas ("WACOG") purchased and the
WACOG embedded in rates. Applicant also defers various pipeline refunds or charges and
miscellaneous revenue received from natural gas related transactions including pipeline capacity
releases. Workpapers for all proposed Commodity, Demand and Amortization costs are provided with
this filing as Exhibit "D".
VIII.
This filing reflects the Company's proposed annual PGA to: l) pass through changes in the estimated
cost of natural gas for the November 2020 through October 2021 twelve-month period (Schedule 150),
Case No. AVU-G-20-0_Page 2 of5
and 2) revise the amortization rate(s) to refund or collect the balance of deferred gas costs (Schedule
155). Below is a table summarizing the proposed rate changes reflected in this frling:
Service
General
Lg. General
Lg General
Intemrptible
Transportation
Commodity
Change
per therm
$ 0.0095s
$ 0.00955
$ 0.00955
$ 0.00955
$
Demand
Change
per therm
$ (0.00345)
$ (0.0034s)
$ (0.0034s)
$-
$-
Total
Sch. 150
Change
$ 0.00610
$ 0.00610
$ 0.00610
$ 0.00955
$-
Amortization
Change
per therm
$ (0.0012e)
$ (0.0012e)
$-
$-
$-
Total Rate
Change
per therm
$ 0.00481
$ 0.00481
$ 0.00610
$ 0.009ss
$-
Overall
Percent
Change
0.7o/o
0.7o/o
0.80h
2.50h
0.00/o
Sch.
No.
101
111
tt2
l3l
146
The Company is filing this Application earlier than the typical August-September timeframe in order to
sync up with the Fixed-Cost adjustment filing required no later than July 1. Syncing up the timing of
the filings will reduce the number of press releases for customers.
x.
Schedule 150 / Purchase Gas Cost - Commoditv Costs
As shown in the table above, the estimated WACOG change is a slight increase of $0.00955 per therm.
The proposed WACOG $0.16283 per therm compared to the present WACOG of $0.15328 per therm
included in rates. The cost ofnatural gas commodity remains relatively low in a high-supply environment
due to continued higher natural gas production and high levels of in storage. The increase of $0.00955
is reflective simply of the volatile nature of the commodity cost itself year over year.
The Company's natural gas Procurement Plan ("Plan") uses a diversified approach to procure natural
gas for the coming PGA year. While the Plan generally incorporates a more structured approach for the
hedging portion of the portfolio, the Company exercises flexibility and discretion in all areas of the plan
based on changes in the wholesale market. The Company typically meets with Commission Staff semi-
annually to discuss the state of the wholesale market and the status of the Company's Plan. In addition,
the Company communicates with Staffwhen it believes it makes sense to deviate from its Plan and/or
opportunities arise in the market.
Avista has been hedging natural gas on both a periodic and discretionary basis throughout the previous
tlrirty-six months for the forthcoming PGA year. Approximately 40% of estimated annual load
requirements for the PGA year (November 2020 through October 2021) will be hedged at a fixed-price
derived from the Company's Plan. Through June, the hedge volumes for the PGA year have been
executed at a weighted average price of $1.71per dekatherm (S0.l7l per therm).
The Company used a 15-day AECO forward price (ending June 22,2020) to develop an estimated cost
associated with index purchases. These index purchases represent approximately 600/o of estimated
annual load requirements for the coming year. The annual weighted average price for these volumes is
$1.77 per dekatherm ($0.177 per therm).
Case No. AVU-G-20-0_Page 3 of5
x.
Schedule 150 / Purchase Gas Cost - Demand Costs
Demand costs reflect the cost of pipeline transportation to the Company's system, as well as fixed costs
associated with natural gas storage. As shown in the table above, demand costs are expected to slightly
decrease for residential customers by approximately $0.00345 per therm. This reduction is related to a
variety of factors including Canadian exchange rate, updated demand forecast, and new rates for our
Canadian Pipelines effective June l, 2020.
xI.
Schedule 155 / Amortization Rate Chanee
As shown in the table above, the proposed amortization rate change for Schedule 101 and Schedule I 1 1
is a decrease in revenue (or increase in current rebate) of $0.00129 per therm. The current rate applicable
to Schedule 101 and Schedule I l l is $0.03625 per therm in the rebate direction; the proposed rate is
$0.03754 per therm also in the rebate direction.
ln the 2019 PGA Filing the Company forecast a total amortization refund of approximately $3.2 million
effective November 1,2019.t This estimate was based on actual balances as of June 2019 and a three-
year average forecast for commodity and demand, and amortization activity based on estimated loads
from July 2019 to October 2019. In this year's PGA filing, the Company has continued this practice and
included a projection of deferral and amortization balances fiom June 2020 through October 2020 of
approximately $2.5 million. This projection is based on the 3-year average of actual commodity deferrals
(2017-2019), an estimate for demand costs based on estimated loads and updated pipeline tariffrates,
and amortization activity based on estimated loads. Combined with the May 30, 2020balance, the total
amount to be refunded to Customers is approximately $3.4 million. On a per therm basis, the net impact
of the expiring amortization rebate and the new amortization rebate is approximately $0.00129 or -0.2Yo.
XII.
If approved as filed, the Company's annual revenue will increase by approximately $0.4 million or about
0.7o/o effective November 1,2020. Residential or small commercial customers using an average of 64
therms per month would see an increase of $0.31 per month, or approximately 0.60/o. The present bill
for 64 therms is $50.98 while the proposed bill is $51.29.
XIII.
Exhibit "D" attached hereto contains support workpapers for the Proposed Tariff Rates proposed by
Applicant contained in Exhibit "A".
xtv
Avista requests that the rates proposed in this filing be approved to become effective on November 1,
2020, and requests that the matter be processed under the Commission's Modified Procedure rules
I The actual deferraVamortization balance effective October 3l,2Ol9 was approximately $2.7 million.
Case No. AVU-G-20-0 Page 4 of 5
through the use of written comme,nts. Avista stands ready for immediate consideration on its
Application.
XV
WHEREFORE, Avista requests the Commission issue its Order finding its proposed rates to be just,
reasonable, and nondiscriminatory and to become effective for all natural gas senrice on and after
Novernber 1,2020.
Dated at Spokane, Washington, this 30thday of June 2020.
AVISTA UTILITIES
BY
/s/ David J. Mcyer
David J. Meyer
Vice President and Chief Counsel for
Regulatory & Govenrmental Atrairs
Avista Corporation
CaseNo. AVLI-G-20-0 Page 5 of5
DAVID J. MEYER
VICE PRESIDENT A}{D CHIEF COI.JNSEL FOR
REGT.TLATORY & GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
P.O.BO)(3727
14I I EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220.37 27
TELEPHONE: [phone]
FACSIMILE: (s09) 49s-885 1
DAVTD. MEYER@AVISTACORP. COM
BEFORE THE IDAHO PTJBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR AN
ORDER APPROVING A CHANGE
IN NATURAL GAS RATES AND CHARGES
TO NATT'RAL GAS CUSTOMERS IN THE
STATE OF IDAHO
)
)
)
)
)
)
)
)
CASE NO. AVU-G.20-
ATTORNEY'S CERTIFICATE
CLAIM OF CONFIDENTIALITY
RELATING TO PORTIONS
OF AVISTA'S EXHIBIT'S
AND WORKPAPERS
1 FOR AVISTA CORPORATION
2 I, David J. Meyer, represent Avista Corporation. I am Vice President and Chief
3 Counsel for Regulatory and Govemmental Affairs for Avista Corporation (Avista or
4 Company) and I am appearing on its behalf in this proceeding.
5 I make this certification and claim of confidentialitypursuant to IDAPA 31.01.01
5 because Avista, through its supporting workpapers, is disclosing certain information that
7 is CONFIDENTIAL and constitutes TRADE SECRETS as defined by Idaho Code
8 Section 9-340 and 48-801 and protected under IDAPA 31.01.01.067 and 31.01 .01.233.
9 The electronic information Avista provides will, as required under IDAPA Rule
10 31.01.01.067, be marked as CONFIDENTIAL on all documents. ln accordance with
1l- Case No. GNR-U-20-01, Order No. 34602 which suspends the requirement to physically
L2 file documents due to the COVID-I9 Pandemic, the Company will file all work papers,
L3 tariffs, and exhibits only in electronic format.
14 The confidential information that Avista is disclosing includes, but is not limited
15 to certain forward wholesale natural gas pricing which is provided by a third-party
l-5 vendor, who does not allow public access to their proprietary information. Avista herein
L7 asserts that the aforementioned information is confidential in that making third-party
L8 pricing data public will violate the terms of our agreement with the vendor.
t9 I am of the opinion that this information is CONFIDENTIAL, as defined by Idaho
20 Code Sections 9-340D and 48-801, should therefore be protected from public inspection,
2L examination and copying, and should be utilized only in accordance with the terms of the
ATTORNEY'S CERTIFICATE - I
1
2
3
4
5
6
7
8
9
protective agreement between Avista Corporation and Parties who have requested such
an agreemeirt.
RESPECTFULLY SLJBMITTED this 306 dayofJune 2020
/s/ DavidJ. Mever
David J. Meyer
Vice President and Chief Counsel for
Regulatory & Governmental Atrairs
Avista Corporation
ATTORNEY'S CERTIFICATE . 2
AVISTA UTILITIES
Case No. AVU-G-20-0 +
EXHIBIT "A"
Proposed Tariff Sheets
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 150
PURCHASE GAS COST ADJUSTMENT. IDAHO
APPLICABLE:
To Customers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To pass through changes in costs resulting from purchasing and transporting
naturalgas, to become effective as noted below.
RATE:(a) The retail rates of firm gas Schedules 101, 111 and 112are to be increased
by 25.288Q, per therm in all blocks of these rate schedules.
(b)The rates of interruptible Schedules 131 and 132 are to be increased by
16.2830, per therm.
(c)The rate for transportation under Schedule 146 is to be decreased by
0.0000 per therm.
WEIGHTED AVERAGE GAS COST:
The above rate changes are based on the following weighted average cost of gas
per therm as of the effective date shown below:Demand Commodity Total
Schedules 101 9.0050 16.2830, 25.2880,
Schedules 111 and 112 9.005/ 16.2830, 25.2880,
Schedules 131 and 132 0.0006 16.2830, 16.2830,
The above amounts include a gross revenue factor.
Demand Commodity Total
Schedules 101 8.9520, 16.1886 25.1400,
Schedules 111 and112 8.9520, 16.1880 25.1400,
Schedules 131 and132 0.0000 16.1880 16.1886
The above amounts do not include a gross revenue factor.
BALANCING ACCOUNT:
The Company will maintain a Purchase Gas Adjustment (PGA) Balancing Account
whereby monthly entries into this Balancing Account will be made to reflect differences
between the actual purchased gas costs collected from customers and the actual
purchased gas costs incurred by the Company. Those differences are then collected from
or refunded to customers under Schedule 155 - Gas Rate Adjustment.
lssued June 30,2020 Effective November 1, 2020
l.P.U.C. No.27
lssued by
By
Twenty-Eighth Revision Sheet 150
Replacing
Revision Sheet 150 150
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs
l.P.U.C. No.27
Twenty-Seventh Revision Sheet 150
Replacing
Twenty-Sixth Revision Sheet 150 150
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 150
PURCHASE GAS COST ADJUSTMENT. IDAHO
APPL]CABLE:
To Customers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To pass through changes in costs resulting from purchasing and transporting
naturalgas, to become effective as noted below.
RATE (a) The retail rates of firm gas Schedules 10'1 , 1 1 1 and 112 are to be increased
by Wg per therm in all blocks of these rate schedules.
(b)The rates of interruptible Schedules 131 and 132 are to be increased by
1-€*P€,$ pertherm.
(c)The rate for transportation under Schedule 146 is to be decreased by
0.0000 per therm.
WEIGHTED AVERAGE GAS COST:
The above rate changes are based on the following weighted average cost of gas
per therm as of the effective date shown below:Demand Commodity Total
Schedules l0l
Schedules lll and 112
Schedules 131 and 132 0.0000 W
The above amounts include a gross revenue factor.
Demand Commodity Total
Schedules l0l
Schedules ll'l and 112
Schedules 131 and 132 0.0000 W
The above amounts do not include a gross revenue factor.
BALANCING ACCOUNT:
The Company will maintain a Purchase Gas Adjustment (PGA) Balancing Account
whereby monthly entries into this Balancing Account will be made to reflect differences
between the actual purchased gas costs collected from customers and the actual
purchased gas costs incuned by the Company. Those differences are then collected from
or refunded to customers under Schedule 155 - Gas Rate Adjustment.
lssued August 23,2019 Effective November1,2019
by
By Patrick Ehrbar - Director of Regulatory Affairs
l.P.U.C. No.27
lssued by
By
Twenty-Eighth Revision Sheet 150
Replacing
nth Revision Sheet 150 150
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 150
PURCHASE GAS COST ADJUSTMENT. IDAHO
APPLICABLE:
To Customers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To pass through changes in costs resulting from purchasing and transporting
naturalgas, to become effective as noted below.
RATE:(a) The retail rates of firm gas Schedutes 101 , 1 1 1 and 112 are to be increased
by 25.288( per therm in all blocks of these rate schedules.
(b)The rates of interruptible Schedules 131 and 132 are to be increased by
16.2830, per therm.
(c)The rate for transportation under Schedule 146 is to be decreased by
0.0000 per therm.
WEIGHTED AVERAGE GAS COST:
The above rate changes are based on the following weighted average cost of gas
per therm as of the effective date shown below:Demand Commodity Total
Schedules 101 9.005A 16.283d, 25.2886
Schedules 111 and 112 9.0056, 16.2836, 25.288C
Schedules 131 and 132 0.0000 16.283d,16 )43d.
The above amounts include a gross revenue factor.
Demand Commodity Total
Schedules 101 8.952A, 16.188d, 25.140G
Schedules 111 and 112 8.952A 16.188C 25.140d,
Schedules 131 and 132 0.0000 16.188d 16 188d1
The above amounts do not include a gross revenue factor.
BALANCING AGCOUNT:
The Company will maintain a Purchase Gas Adjustment (PGA) Balancing Account
whereby monthly entries into this Balancing Account will be made to reflect differences
between the actual purchased gas costs collected from customers and the actual
purchased gas costs incurred by the Company. Those differences are then collected from
or refunded to customers under Schedule 155 - Gas Rate Adjustment.
lssued June 30,2020 Effective November 1, 2020
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 155
GAS RATE ADJUSTMENT. IDAHO
AVAILABLE:
To Gustomers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To adjust gas rates for amounts generated by the sources listed below
MONTHLY RATE:(a) The rates of firm gas Schedules 101 and 111 are to be
decreased by 3.754$ per therm in all blocks of these rate schedules.(b) The rate of interruptible gas Schedule 131 is to be decreased by
0.0006 per therm.(c) The rate of transportation gas Schedule 146 is to be decreased by 0.000d
per therm.
SOURCES OF MONTHLY RATE:
Changes in the monthly rates above result from amounts which have been
accumulated in the Purchase Gas Adjustment (PGA) Balancing Account as
described in Schedule 150 - Purchase Gas Cost Adjustment.
SPECIAL TERMS AND CONDITIONS:
The above Monthly Rate is subject to the provisions of Tax Adjustment Schedule
158.
lssued June 30,2020 Effective November 1, 2020
l.P.U.C. No.27
lssued by
By
Twenty-Second Revision Sheet 155
Canceling
Revision Sheet 155 155
Avista Utilities
Patrick Ehrbar, Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 155
GAS RATE ADJUSTMENT - ]DAHO
AVAILABLE:
To Customers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To adjust gas rates for amounts generated by the sources listed below
MONTHLY RATE:(a) The rates of firm gas Schedules 101 and 111 are to be
decreased by 3.625d per therm in all blocks of these rate schedules.(b) The rate of interruptible gas Schedule 131 is to be decreased by
0.0000 per therm.(c) The rate of transportation gas Schedule 146 is to be decreased by 0.0006
per therm.
SOURCES OF MONTHLY RATE:
Changes in the monthly rates above result from amounts which have been
accumulated in the Purchase Gas Adjustment (PGA) Balancing Account as
described in Schedule 150 - Purchase Gas Cost Adjustment.
SPECIAL TERMS AND CONDITIONS:
The above Monthly Rate is subject to the provisions of Tax Adjustment Schedule
158.
lssued August 23,2019 Effective November 1, 2019
l.P.U.C. No.27
Twenty-First Revision Sheet 155
Canceling
Twentieth Revision Sheet 155 155
lssued by
By
Avista Utilities
Patrick Ehrbar, Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 155
GAS RATE ADJUSTMENT - IDAHO
AVAILABLE:
To Customers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To adjust gas rates for amounts generated by the sources listed below
MONTHLY RATE:(a) The rates of firm gas Schedules 101 and 111 are to be
decreased by 3.7540, per therm in all blocks of these rate schedules.(b) The rate of intenuptible gas Schedule 131 is to be decreased by
0.0000 per therm.(c) The rate of transportation gas Schedule 146 is to be decreased by 0.0006
per therm.
SOURCES OF MONTHLY RATE:
Changes in the monthly rates above result from amounts which have been
accumulated in the Purchase Gas Adjustment (PGA) Balancing Account as
described in Schedule 150 - Purchase Gas Cost Adjustment.
SPECIAL TERMS AND CONDITIONS:
The above Monthly Rate is subject to the provisions of Tax Adjustment Schedule
1 58.
lssued June 30, 2020 Effective November1,2020
l.P.U.C. No.27
lssued by
By
Twenty-Second Revision Sheet 155
Canceling
ReMsion Sheet 155 155
Patrick Ehrbar, Director of Regulatory Affairs
AVISTA UTILITIES
Case No. AVU-G-20-0+
EXHIBTT'OB"
Notice of Public Applicant's Proposed Tariffs
Important Notice for Idaho Customers DRAFT
(July 2020)
Avista has filed two annual rate adjustment requests with the Idaho Public Utilities Commission
(Commission), that if approved, are designed to decrease overall electric revenues by approximately $3.0
million or 1.2%o effective Oct. l, 2020 and decrease overall natural gas revenue by approximately $700
thousand or l.l%o effective Nov. l, 2020. These annual filings have no impact on Avista's earnings.
The first adjustment is Avista's annual Fixed Cost Adjustment (FCA). The electric and natural gas FCA
is a mechanism designed to break the link between a utility's revenues and customers' enerry usage.
Avista's actual revenue, based on kilowatt hour or therm sales, will vary, up or down, from the level
included in a general rate case and approved by the Commission. This could be caused by changes in
weather, energy conservation or other factors. Generally, under the FCA Avista's revenues are adjusted
each month based on the number of customers. The annual difference between revenues based on sales
and revenues based on the number of customers is surcharged or rebated to customers beginning in the
following year. Ifapproved, Avista's request is designed to decrease overall electric revenues by
approximately $3.0 million or l.2o/o effective Oct. l, 2020 and decrease overall natural gas revenue by
approximately $1.2 million or l.8o/o effective Nov. l, 2020.
The proposed FCA rate adjustments are driven primarily by a higher level of customer usage in 2019 due
in part to a colder than normal winter. The FCA mechanisms do not apply to Avista's Electric Extra
Large General and Street Lighting Service Schedules, nor to its Natural Gas Interruptible and
Transportation Service Schedules.
The second adjustment is related to the annual Purchased Gas Cost Adjustment (PGA) filing. The PGA is
frled each year to balance the actual cost of wholesale natural gas purchased by Avista to serve customers
with the amount included in rates. This includes the natural gas commodity cost as well as the cost to
transport natural gir on interstate pipelines to Avista's local distribution system. The modest increase is
primarily due to wholesale natural gas costs that are slightly higher than the level presently included in
rates. Ifapproved, Avista's request is designed to increase natural gas revenues by $400 thousand or 0.7
percent.
Customer Bills
Electric
If the electric FCA filing is approved, residential electric customers in Idaho using an average of 898
kilowatt hours per month would see their monthly bills decrease from $85.30 to $84.13, a decrease of
$1.17 per montho or approximately 1.4%o. The proposed electric rate change would be effective Oct. 1,
2020.
The requested electric rate changes by rate schedule are as follows:
ResidentialService - Schedule 1
General Service - Schedules 11 & 12
Large General Service - Schedules 21 & 22
Extra Large GeneralService - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 31 & 32
Street & Area Lights - Schedules 41-49
Overall
-1.4o/o
-1.4o/o
-1.7o/o
O.Oo/o
0.0%
-1.5%
0.0%
-1.20/o
Natural Gas
If the natural gas FCA and PGA filings are approved, residential natural gas customers in Idaho using an
average of 64 therms per month would see their monthly bills decrease from $50.98 to $50.1 8, a decrease
of $0.80 per month, or approximately l.60/o. The proposed natural gas rate changes would be effective
Nov. 1,2020.
The net effect, on a revenue basis, for the requested natural gas rate changes by rate schedule are:
General Service - Schedule 101
Large General Service - Schedules lll & ll2
Intemrptible Service - Schedules l3l & 132
Transportation Service - Schedule 146
Overall
-1.60/o
0.7%
0.0%
0.0%
-t.t%
The Company's applications are proposals, subject to public review and a Commission decision. Copies of
the applications are available for public review at the offrces of both the Commission and Avista, and on
the Commission's website (www.puc.idaho.sov). Customers may file with the Commission written
comments related to the Company's filings. Customers may also subscribe to the Commission's RSS feed
(http://www.puc.idaho.eov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the case. Copies
of rate frlings are also available on our website, www.myavista.com,/rates.
If you would like to submit comments on the proposed increase, you can do so by going to the Commission
website or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Avista offers a number of programs and services to help customers manage their energy use and costs.
Visit www.myavista.com for information on these programs which include Comfort Level Billing, bill
payment options, automated payment service, assistance programs, conservation tips, and energy
efficiency rebates.
AVA355a