20210715Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER IUELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE: JULY 15,2021
SUBJECT: AVISTA'S AIINUAL PGA FILING, CASE NO. AYII-C,-21-04
On July 2,2021, Avista Corporation dba Avista Utilities ("Company") filed its annual
Purchased Gas Cost Adjustment ("PGA") Application asking to increase its annualized revenues
by about $9.0 million or approximately 13.5%. Application at l.r The Company states that the
PGA Application is filed concurrently with the Company's Deferred Balances Credit filing
where the Company is asking to decrease natural gas revenues which could offset some of the
proposed PGA rate increase if approved. See Case No. AW-G-21-03. The Company says its
proposal will not affect its earnings. See Cover Letter to the Application. The Company
represents that if the PGA is approved by the Commission, residential natural gas customers in
Idaho using an average of 63 therms per month would see their monthly bills increase from
$49.49 to $55.49, an increase of $6.00 per month, or approximately l2.l%. Application at 5.
Some of this amount could be offset by the Company's request to decrease natural gas revenues
in the Deferred Balances Credit filing. See Case No. AVU-G-21-03. The Company states that it
is providing notice of the PGA 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 on September 1,2021. Id. at 5.
I The PGA mechanism is used to adjust rates to reflect annual changes in the Company's costs for the purchase of
natural gas from suppliers - including tansportation, storage, and other related costs.
IDECISION MEMORANDUM
STAFF RECOMMENDATION
Staff recommends that the case be processed through Modified Procedure, with a
comment deadline of 2l days from the date of issuance of the Commission's Notice of
Application and Notice of Modified Procedure for Staff and interested persons and parties and a
7 day reply comment period thereafter for the Company.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with a comment deadline of 21 days from the date of issuance of the Commission's
Notice of Application and Notice of Modified Procedure for Staff and interested persons and
parties and a 7 day reply comment period thereafter for the Company?
Hammond Jr.
Attorney General
I:\I*gal\GAS\AVLJ-G-2 1 -04\memos\Avuc2 1 04jh.doc
2DECISION MEMORANDUM