20200720Notice_of_Application_Order_No_34733.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34733 1
Office of the Secretary
Service Date
July 20, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF AVISTA
CORPORATION’S APPLICATION TO
CHANGE ITS NATURAL GAS RATES AND
CHARGES (2020 PURCHASED GAS COST
ADJUSTMENT)

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CASE NO. AVU-G-20-04

NOTICE OF APPLICATION

NOTICE OF
INTERVENTION DEADLINE

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 34733

On June 30, 2020, Avista Corporation dba Avista Utilities (“Avista”) filed its annual
Purchased Gas Cost Adjustment (PGA) Application. The PGA is a Commission-approved
mechanism that adjusts rates up or down to reflect changes in Avista’s costs to buy natural gas
from suppliers—including changes in transportation, storage, and other related costs. Avista defers
these costs into its PGA account, and then passes them on to customers through an increase or
decrease in rates.
Avista states its proposal will increase rates for an average residential or small
commercial customer by $0.31 per month (0.6%). Avista states it will send a customer notice to
each customer and has issued a press release to interested media outlets. Avista asks that its
Application be processed by Modified Procedure, and that the new rates take effect November 1,
2020.
NOTICE OF APPLICATION
A. Overview of Proposed Rates
YOU ARE HEREBY NOTIFIED that Avista distributes natural gas in northern Idaho,
eastern and central Washington, and southwestern and northeastern Oregon. Avista buys natural
gas and then transports it through pipelines for delivery to customers. In this PGA Application,
Avista proposes to: (1) pass any change in the estimated cost of natural gas for the next 12 months
to customers (Tariff Schedule 150); and (2) revise the amortization rates to refund or collect the
balance of deferred gas costs (Tariff Schedule 155). Avista proposes to change its PGA rates for
its customer classes as follows:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34733 2

Service

Schedule
No.
Commodity
Change per
Therm
Demand
Change per
Therm
Total
Sch. 150
Change
Amortization
Change per
Therm
Total Rate
Change per
Therm
Overall
Percent
Change
General 101 $0.00955 $(0.00345) $0.00610 $(0.00129) $0.00481 0.7%
Lg. General 111 $0.00955 $(0.00345) $0.00610 $(0.00129) $0.00481 0.7%
Lg. General 112 $0.00955 $(0.00345) $0.00610 $ - $0.00610 0.8%
Interruptible 131 $0.00955 $ - $0.00955 $ - $0.00955 2.5%
Transportation 146 $ - $ - $ - $ - $ - 0.0%

Application at 3. Avista’s proposed changes to Schedules 150 and 155 and Avista’s rates are
further explained below.
B. Schedule 150
YOU ARE FURTHER NOTIFIED that the Tariff Schedule 150 portion of the PGA
has two parts: the “commodity costs” and the “demand costs.”
YOU ARE FURTHER NOTIFIED that Avista’s “commodity costs” are the variable
costs at which Avista must buy natural gas. The weighted average cost of gas is an estimate of
those costs. Here, Avista estimates its commodity costs will increase by $0.00955 per therm, from
the currently approved $0.15328 per therm. To minimize exposure to potential rising gas costs,
Avista diversifies how it procures natural gas. Avista’s procurement strategy includes hedging and
estimating the cost of index purchases using a 15-day AECO forward price.
YOU ARE FURTHER NOTIFIED that Avista’s “demand costs” are its fixed-capacity
costs for interstate transportation and underground storage. The demand costs primarily are costs
to transport gas on interstate pipelines to Avista’s local distribution system. Avista proposes a
$0.00345 per therm decrease in the overall demand rate for customers on Schedules 101, 111, and
112. This reduction is caused by factors including the Canadian exchange rate, an updated demand
forecast, and new rates for Avista’s Canadian pipelines. Id. at 4.
C. Schedule 155
YOU ARE FURTHER NOTIFIED that Tariff Schedule 155 reflects the amortization
of Avista’s deferral account. With this Application, Avista proposes to decrease the amortization
rate for general and large general service customers by $0.00129 per therm. To put it another way,
general and large general service customers will receive a $0.00129 per therm increase to their
current rebate under this schedule.
YOU ARE FURTHER NOTIFIED that if Avista’s Application is approved as filed,
Avista’s annual revenue will increase by $0.4 million (0.7%).
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34733 3
YOU ARE FURTHER NOTIFIED that Avista asserts it has or will notify customers
of its proposed tariffs by posting notice at each of its Idaho district offices, and through a press
release. Also, Avista states it will send notice to each customer as a bill insert during the July
timeframe.
YOU ARE FURTHER NOTIFIED that the Application and Exhibits are available
for public inspection during regular business hours at the Commission’s office. The Application
is also available on the Commission’s web site at www.puc.idaho.gov. Click on the “NATURAL
GAS” tab at the top of the home page, then select “Open Cases” and then locate and click on 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. The Commission may
enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons who wish to intervene in this matter to
obtain the rights of party (e.g., to file formal discovery, or present evidence or cross-examine
witnesses at a hearing) must file a Petition to Intervene with the Commission under the
Commission’s Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and .073. Persons who wish
to intervene as a party must file a Petition to Intervene by August 7, 2020. Such persons shall
also provide the Commission Secretary with their electronic mail address to facilitate further
communications.
YOU ARE FURTHER NOTIFIED that persons who would like to present their views
without parties’ rights of participation and cross-examination are not required to intervene but may
present their views by submitting written comments to the Commission.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice
of Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit
numbers to each party in this proceeding.
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 will proceed under Modified Procedure
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34733 4
pursuant to Rules 201 through 204 of the Idaho Public Utilities 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 persons desiring to state a position on this
Application may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments. Persons shall have until October 6, 2020 to file written comments. Comments must
be filed by e-mail unless e-mail is unavailable. To comment by e-mail, please access the
Commission’s home page at www.puc.idaho.gov. Click the “Consumers” tab and then “Case
Comment Form” and complete the form using the case number as it appears on the front of this
document. Comments filed by e-mail must also be e-mailed to Avista at the e-mail addresses listed
below. If e-mail is unavailable, then comments may be mailed to the Commission and Avista at
these addresses:
For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074

For Avista:

Patrick D. Ehrbar
David J. Meyer
Avista Utilities
1411 E. Mission Avenue
Spokane, WA 99220-3727
E-Mail: [e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that Avista must file any reply comments by
October 13, 2020.
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 formal hearing.
O R D E R
IT IS HEREBY ORDERED that Avista’s Application be processed by Modified
Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written
comments must do so by October 6, 2020. Avista must file any reply comments by October 13,
2020.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34733 5
IT IS FURTHER ORDERED that persons desiring to intervene in this case for the
purpose of obtaining parties’ rights of participation must file a Petition to Intervene with the
Commission, pursuant to Rules 72 and 73, IDAPA 31.01.01.72-73, by August 7, 2020.
IT IS FURTHER ORDERED that parties continue to comply with Order No. 34602,
issued March 17, 2020. All pleadings should be filed with the Commission electronically and shall
be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 20th
day of July 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Diane M. Hanian
Commission Secretary

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