20210702Application.pdf

Avista Corp.
l4l I East Mission P.O.Box3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
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July 2,2021
Commission Secretary
State of ldaho
Idaho Public Utilities Commission
I l33l W. Chinden Blvd. Building 8, Suite 201-A
Boise,Idaho 83714
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Case No. AVU-G-21-0J
I.P.U.C. No. 27 - Natural Gas Service
In accordance with Case No. GNR-U-20-01, OrderNo.34602, which suspends the requirement to file
physical copies, the Company has attached for electronic filing with the Commission the following
original tariffsheet:
Original Sheet 178
The Company requests thatthe proposed tariffsheet be made effective September 1,2021. This tariffsheet
is designed to refund to customers deferred credit balances associated with depreciation expense,
Accumulated Funds Used During Construction, and CARES Act benefits. If approved, the Company's
annual revenue will decrease by approximately $1.9 million or approximatnly 2.9%o. The proposed change
has 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 Deferred Balances Credit filing is the Company's annual Purchased Gas Cost
Adjustment ("PGA') filing. If both the Deferred Balances Credit and PGA filings are approved, residential
natural gas customers in Idaho using an average of 63 therms per month would see their monthly bills
increase from $49.49 to $54.05, an increase of $4.56 per month, or approximately 9.2%o. The proposed
natural gas rate changes would be effective September 1,2021.
If you have any questions regarding this filing, please contact Marcus Garbarino at [phone].
Sincerely,
/s/ Patrick D. Ehrbar
Patrick D. Ehrbar
Director of Regulatory Affairs
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BEFORE Tt{E IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
AVISTA UTILITIES FOR AN ORDER APPROVING
A CHANGE IN NATURAL GAS RATES AND CHARGES
TO REBATE CERTAIN DEFERRED CREDIT BALANCES
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CASE: AVU-G-21-03
Application is hereby made to the Idaho Public Utilities Commission for an Order approving a new
schedule of rates and charges for natural gas service in the state of Idaho. The Applicant requests that
the proposed rates included in this new tariff filing be made effective on Septemb er | ,2021. If approved
as filed, the Company's annual revenue will decrease by approximately $1.9 million or about 2.9o/o. ln
support of this Application, Applicant states as follows:
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 1 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
14l I E. Mission Avenue
Spokane, WA 99220-3727
Phone: [phone]
Pat. ehrbar@avi stac orp. c om
Do cket s @avi stac o rp. c orlr
II.
Attorney for the Applicant and his address is as follows
David J. Meyer
Vice President and Chief Counsel for Regulatory
And Governmental Affairs
Avista Utilities
141I E. Mission Avenue
Spokane, WA 99220-3727
Phone: [phone]
Davi d. meyer(gJavi stacorp. com
I
Case No. AW-G-21-0 Page I of4
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, ild further
engaged in the generation, tansmission, and distribution of elecfricity in Northern Idaho and Eastern
Washington.
IV.
Original Sheet 178, which Applicant requests the Commission approve, is filed herewith as Exhibit "A".
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.
VI.
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 offtces 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". In 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 rates are as follows: Applicant
has accumulated deferred credit balances owed to customers and requests approval to begin retuming
the balances to customers. Workpapers detailing balances and proposed rates are provided with this
filing as Exhibit "D".
vIII
This filing reflects the Company's proposal to refund to customers deferred credit balances associated
with depreciation expense, Accumulated Funds Used During Construction (AFUDC), and CARES Act
benefits. Below is a table summarizing the proposed rate credits reflected in this frling:
GeneralServbe - Schedule l0l
Large General Service - Schedubs lll & ll2
Intemptfob Senrice - Schedules l3l & 132
Transportation Servbe - Schedule 146
Scheduh 178
Rate
Per Therm
(0.02286)
(0.0t444)
(0.01444)
(0.00378)
Case No. AW-G-21-0 Page2 of4
The Company is filing its Application for a change in rates for the Purchased Gas Cost Adjustment
("PGA") and amortization of gas-related defenal balances simultaneously with this application. If both
applications are approved the net chanse to nafural sas revenue would be an increase of approximately
(7 1 millinn nr 10 60/^ effea.liwe Senfernher 1 )O)1
x.
Schedule 178 / Deferred Credit Balances
The Company has accumulated defened credit balances on its books of record which are proposed to be
refunded to customers over a one-year period through tariff Schedule 178. The following is a description
and balance of each deferral included in the proposed rebate to customers.
The first deferred credit is the Natural Gas Deferred Depreciation Expense with a balance of $900,000.
This credit balance results from the Company deferring the benefit of reduced natural gas depreciation
expense recorded on its books of record, but not yet reflected in its nafural gas customer rates, for the
period December 1,2019 through August 31,2021, per Order No. 34276 in Case Nos. AVU-E-18-03
and AVU-G-18-02 (see Stipulation and Settlement at page 9,para.l4).
The second deferred credit is the Accumulated Funds Used During Construction (AFUDC) Defenal with
a balance of $393,000. AFUDC tax flow-through deferral balances are a result of changing how taxes
associated with AFUDC Equity are recognized for rate making purposes, specifically, changing from
the normalization method to the flow-through method, per Case No. AVU-G-19-01, Order No. 34326.
The deferral balances reflect amounts collected between January l, 2018 and August 31, 2021
(estimated), until such time as the flow through method is embedded in base rates in the pending general
rate case filing.
The third deferred credit is the CARES Act Defenal with a balance of $648,000. The CARES Deferral
balance is a result of Case No. GNR-U-20-03 (including Consolidated Case No. AVU-G-20-03) Order
No. 34718, requiring Avista to defer the benefits associated with the CARES Act, which allowed
companies with taxable net operating losses ("NOL") for years 2018 through2020 to carry those losses
back to the five previous tax years. These tax benefits were to be deferred and returned to customers in
a future proceeding.
x.
If approved as filed, the Company's annual revenue will decrease by approximately $1.9 million or
about 2.9Yo effective September l, 2021 for a twelve-month period. Residential or small commercial
customers using an average of 63 therms per month would see a decrease of $1.44 per month, or
approximately 2.9%. The present bill for 63 therms is $49.49 while the proposed bill is $48.05.
x.
Exhibit "D" attached hereto contains support workpapers for the Proposed Taritr Rates proposed by
Applicant contained in Exhibit "A".
Case No. AVU-G-21-0
xII
Page 3 of4
Avista requests that the rates proposed in this filing be approved to become effective for a twelve-month
period beginning September 1,2021, and requests that the matter be processed under the Commission's
Modified Procedure rules through the use of written comments. Avista stands ready for immediate
consideration on its Application.
XII
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 service on and after
September 1,2021. The overall decrease is approximately $1.9 million or 2.9Yo. The Company requests
that the matter be processed under the Commission's Modified Procedure rules through the use of written
comments.
Dated at Spokane, Washington, this 2ndday of July 2021.
AVISTA UTILITIES
BY
/s/ David J. Meyer
David J. Meyer
Vice President and Chief Counsel for
Regulatory & Governmental Affairs
Avista Corporation
Case No. AW-G-21-0_Page4 of4
AVISTA UTILITIES
CaseNo. AW-G-21-04
DGIIBIT "A"
Proposed Tariff Sheet
l.P.u.c. tt.27
lssued by
By
inalSheet'178
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULElTS
DEFERRED BALANCES CREDIT - IDAHO
APPLICABLE:To Customers in the State of ldaho where the Company has natura!
gas service available. This Deferred Balances Rate Credit shall be applicable to all retail
customers taking service under Schedules 101 ,111,112,131,132and 146.
This rate credit is designed to reflect the benefits attributable to deferred credit balances
related to depreciation expense credits, Accumulated Funds Used During Contruclibn
deferral, and CARES Act benefits refundable to customers.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be decreased by the following
amounts:
Schedule 101
Schedule 111&112
Schedule 131 &132
Schedule 146
$0.02286 per Therm
$0.01444per Therm
$0.01444per Therm
$0.00378 per Therm
TERM:
The Deferred Balances Credit will be in effect for a twelve-month period from September
1,2021 through August 31 ,2022. Any residual balance at the end of the twelve-month
termwill be recovered in afuture rate proceeding.
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations contained in this taitf
The above Rate is subject to increases as set f orth in Tax Adjustment Schedule 158
lssued July 2,2021 Effective September1,2021
Avista Corporation
Patrick Ehrbar, Diredorof Regulatory Affairs
AVISTA UTILITIES
Case No. AVU-G-21-0 3
EXHIBIT'OB"
Notice of Public Applicant's Proposed Tariffs
Important Notice for Idaho Customers DRAFT
(July 2021)
Avista has filed two rate adjustment requests with the Idaho Public Utilities Commission (Commission),
that if approved, are designed to increase overall natural gas revenue by approximately S7.l million or
10.6% effective Sept. I , 2021 . These filings have no impact on Avista's earnings.
The lirst adjustment is related to the annual Purchased Gas Cost Adjustment (PGA) filing. The PGA is
filed 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 gas on interstate pipelines to Avista's local distribution system. The increase is primarily
driven by two factors: l) wholesale natural gas costs that are higher than the level presently included in
rates, and 2) the expiration of a rebate customers are currently receiving from last year's PGA. If approved,
Avista's request is designed to increase annual natural gas revenues by approximately $9.0 million or
13.5%.
The second filing is the Deferred Balances Credit filing. This filing returns to customers deferred balances
related to depreciation expense, Accumulated Funds Used During Construction (AFUDC), and CARES
Act benefits.If approved, Avista's request is designed to decrease natural gas revenues by approximately
$1.9 million or 2.9o/o.
These rate adjustment filings are separate and distinct from the Settlement Stipulation filed on June 14,
2021 related to the pending general rate case filing, that, if approved, would reduce customer's natural gas
bills by an overall 4.5Yo, also on Sept. I ,2021 .
Customer Bills
Natural Gas
If the natural gas PGA and the Deferred Balances Credit filings are approved, residential natural gas
customers in tdaho using an average of 63 therms per month would see their monthly bills increase from
$49.49 to $54.05, an increase of $4.56 per month, or approximately 9.2oh. The proposed natural gas rate
changes would be effective Sept. l, 2021 .
The net effect, on an annual revenue basis, for the requested natural gas rate changes by rate schedule are:
General Service - Schedule l0l
Large General Service - Schedules lll & ll2
Transportation Service - Schedule 146
Overall
9.2%
163%
-2.9%
10.6%
Rate Application Procedure
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 offices of both the Commission and Avista, and on
the Commission's website (wrvrv.puc.idaho.gov). 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://rvrvrv.puc.idaho.govirssfeeds/rss.htnr) to receive periodic updates via e-mail about the case. Copies
of rate filings are also available on our website, rvrvw.m),avista.col.n/rates.
If you would like to submit comments on the proposed ratp ehangg you can do so by going to the
Commission website or mailing commeirts to:
Idaho Public Utilities Commission
P.O. Box t3720
Boiso,ID 83720-0074
Avista offers a nrmber of programs and services to help customers manage thoir enerry use aod costs. Visit
www.myavista.com for infonnation on theso programs which include Comfort Levsl $illing, bill payment
options, automatod paleeff selice, assistance prcgrams, conservation tips, and eocrry efficiency rebates.
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