20210409Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL

DATE: APRIL 9, 2021

SUBJECT: AVISTA GENERAL RATE CASE SCHEDULING – ELECTRIC AND
NATURAL GAS; CASE NOS. AVU-E-21-01 AND AVU-G-21-01.

This matter comes before the Commission to set the schedule for processing Avista
Corporation’s (“Avista” or the “Company”) electric and natural gas general rate case to
completion. All parties have agreed upon the proposed schedule set forth below.
INTRODUCTION
On January 29, 2021, Avista Corporation dba Avista Utilities (“Avista” or the
“Company”) applied to increase the rates for electric and natural gas service for its customers in
Idaho. Application at 1. In the Application, Avista requests approval of a “Two-Year Rate Plan”
with an electric base rate increase of $24.8 million (10.1 percent) and a natural gas base rate
increase of $0.1 million (0.1 percent) in the first year, effective September 1, 2021. Id. Avista
represents in the first year these proposed rate increases will be offset by the Tax Customer Credit
Tariff Schedules 76 (electric) and 176 (natural gas).1 Id. In the second year, the Company requests
an electric base rate increase of $8.7 million (3.2 percent) and a natural gas base rate increase of
$1.0 million (2.2 percent), effective September 1, 2022. Avista states that in the second year the
proposed rate increase for natural gas will be offset by the Deferred Depreciation Credit Tariff
Schedule 177 (natural gas).

1 The proposed offsets to the requested rate increases arise from Case Nos. AVU-E-20-12 and AVU-G-20-01 where
Avista requested authorization to change its accounting practices. The Commission approved the Application in Order
No. 34906. Subject to similar approvals in other jurisdictions where Avista provides services, these accounting
changes could provide immediate benefits to customers. Order No. 34906 at 3.
DECISION MEMORANDUM 2
On February 23, 2001, the Commission issued a Notice of Application and Notice of
Intervention Deadline. Order No. 34930. The Idaho Conservation League, Walmart Inc., the
Community Action Partnership of Idaho, Idaho Forest Group LLC and Clearwater Paper
Corporation intervened as parties. See Order Nos. 34940, 34953, 34958 and 34697.
PROPOSED RATE CASE SCHEDULE
Based on the parties’ Agreement, Staff proposes the following schedule:
Settlement Conference

Public Workshop (Virtual)
May 19, 2021

June 16, 2021, 7 PM
(MDT)/6 PM (MDT)
(Company and customers)

Staff/Intervenor Prefile Direct
Testimony

June 23, 2021
Company Prefile Rebuttal Testimony July 19, 2021
Technical Evidentiary Hearing (in
person)

Customer Hearing (Virtual)
August 2-3, 2021.
Beginning at 9:30 AM in
the Commission’s Hearing
room on August 2, 2021
and continuing to August 3,
2021, as necessary.

August 2, 2021, 7 PM
(MDT)/6 PM (MDT)
(Company and customers)

The parties believe this schedule will enable the Commission to issue its final Order prior to the
proposed September 1, 2021 effective date.
STAFF RECOMMENDATION
Staff recommends that the Commission issue an Order that adopts the schedule above
and sets a technical hearing for August 2-3, 2021 and a customer hearing for the evening of August
2, 2021.

DECISION MEMORANDUM 3

COMMISSION DECISION
Does the Commission wish to issue an Order that adopts the agreed-upon schedule and
sets a technical hearing and customer hearing on the dates set forth above?

________________________________
John R. Hammond Jr.
Deputy Attorney General

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