20210830Final_Order_No_35150.pdf

ORDER NO. 35150 1
Office of the Secretary
Service Date
August 30, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF AVISTA UTILITIES FOR AN ORDER
APPROVING A CHANGE IN RATES FOR
PURCHASED GAS COSTS AND
AMORTIZATION OF GAS-RELATED
DEFERRAL BALANCES

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CASE NO. AVU-G-21-03

ORDER NO. 35150

On July 2, 2021, Avista Corporation dba Avista Utilities (“Company”) applied for an
Order Approving a Change in Natural Gas Rates and Charges to Rebate Certain Deferred Credit
Balances asking to decrease its annualized revenues by about $1.9 million (2.9%). Application at
1. The Company proposes to refund to customers deferred credit balances associated with
depreciation expense, Allowance for Funds Used During Construction (“AFUDC”), and the
Coronavirus Aid, Relief, and Economic Security (“CARES”) Act benefits.
The Company said its proposal, if approved, will decrease rates for an average
residential or small commercial customer using an average of 63 therms per month by $1.44 per
month (2.9%). Id. The Company states it provided notice of this Application to its customers in
compliance with Commission authorities. Id. at 2. The Company asks that the Application be
processed by Modified Procedure, and that the new rates take effect September 1, 2021. Id. at 1.
On July 27, 2021, the Commission issued a Notice of Application, Notice of Modified
Procedure and Order setting comment deadlines for interested persons and a reply comment
deadline for the Company. See Order No. 35117. The Commission Staff (“Staff”) filed comments
on August 17, 2021, and was the only party to do so. The Company did not file reply comments.
Now, based on the record, the Commission approves the Application as set forth below.
THE APPLICATION
The Company’s proposed refund to customers of deferred credit balances would offset
the Company’s proposed Purchased Gas Cost Adjustment (“PGA”) rate increase in its application
in Case No. AVU-G-21-04 if approved by the Commission. The table below summarizes the
proposed rate credits.
ORDER NO. 35150 2
Schedule 178
Rate
Per Therm

General Service – Schedule 101 (0.02286)
Large General Service – Schedules 111 & 112 (0.01444)
Interruptible Service – Schedules 131 & 132 (0.01444)
Transportation Service – Schedule 146 (0.00378)

Application at 3. The Company asserted if the Application in this case and the PGA application
are approved the net change to natural gas revenues would be an increase of approximately $7.1
million or 10.6% effective September 1, 2021.
STAFF COMMENTS
Staff reviewed the Company’s Application and accompanying workpapers and
supports the Company’s proposal to return to natural gas customers in Idaho approximately $1.9
million of deferred credits. After examining the Company’s Application, prior Orders, and
reviewing the deferral balances, Staff recommended the Commission approve the Company’s
proposed Tariff Schedule 178 and set the rebate rates as set forth in the Company’s Application.
COMMISSION FINDINGS AND DECISION
The Commission has reviewed the record, including the Application and comments.
The Company is a gas corporation and public utility, and the Commission has jurisdiction over it
and the issues in this case under Title 61 of the Idaho Code, and more specifically, Idaho Code §§
61-117, 61-129, 61-307, 61-501, and 61-502. The Commission must establish just, reasonable,
and sufficient rates for utilities subject to its jurisdiction. Idaho Code § 61-502. The Commission
must establish just, reasonable, and sufficient rates for utilities subject to its jurisdiction. Idaho
Code § 61-502.
Based on our review of the record, we find the Company’s proposal to refund to
customers deferred credit balances associated with depreciation expense, AFUDC, and CARES
Act benefits totaling $1,935,000 to be fair, just, and reasonable. The Commission approves the
Company’s proposed Schedule 178 containing rates that will be used to refund the deferred credit
balances to the Company’s customers. Approval of the Company’s Application to refund deferred
credit balances to customers comes at an opportune time as this will help to mitigate the rate
impacts of the Company’s PGA adjustments approved by Order No. 35151.
ORDER NO. 35150 3
O R D E R
IT IS HEREBY ORDERED that the Company’s Application to refund to customers
deferred credit balances associated with depreciation expense, AFUDC, and CARES Act benefits
is approved. The Company’s proposed Schedule 178 is approved as filed, effective September 1,
2021.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code §§ 61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 30th day
of August 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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