20210715Decision Memo.pdf

DECISION MEMORANDUM 1

DECISION MEMORANDUM

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

FROM: DAYN HARDIE
DEPUTY ATTORNEY GENERAL

DATE: JULY 14, 2021

SUBJECT: IN THE MATTER OF AVISTA’S APPLICATION FOR AN ACCOUNTING
ORDER AUTHORIZING ACCOUNTING AND RATEMAKING
TREATMENT OF COSTS RELATED TO ALLOWANCE FOR FUNDS
USED DURING CONSTRUCTION; CASE NOS. AVU-E-21-06 AND AVU-
G-21-05

On July 6, 2021, Avista Corporation dba Avista Utilities (“Company”) applied to the
Commission for authorization of accounting and ratemaking treatment related to Allowance for
Funds Used During Construction (“AFUDC”). The Company seeks authority to amortize the
regulatory asset1 using the approved depreciation rate by plant FERC account that has been
approved by the Commission in the most recent depreciation study and to be able to update the
amortization rate with each depreciation study going forward. The Company requests its
Application be processed by modified procedure.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure establishing a twenty-one (21) day public comment deadline and a seven (7)
day Company reply deadline.
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1 The Company was authorized to defer the difference calculated between the state regulatory AFUDC rate and the
FERC AFUDC rate and amortize the balance over the composite remaining life of the plant-in-service. See Order No.
34326.
DECISION MEMORANDUM 2

COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure establishing a twenty-one (21) day public comment deadline and a seven (7) day
Company reply deadline?

__________________________
Dayn Hardie
Deputy Attorney General

I:\Legal\ELECTRIC\AVUE2106_AVUG2105 AFUDC\memos\AVUE2106AVUG2105_dec_dh.docx