20211203Application.pdf

^iistsra
Avista Corp.
1411 East Mission P.O.Box3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
RECEIVED
2021 DEC -3 AM 11:06
IDAHO PUBLIC
UTILITIES COMMISSION
December 3,202I
Commission Secretary
State of Idaho
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Building 8, Suite 201-4
Boise, Idaho 83702-5983
CaseNo. AVU-G-21-01_
I.P.U.C. No. 27 - Natural Gas Service
In accordance with Case No. GNR-U-20-01, Order No. 34602, which suspends the requirement to file
physical copies, the Company has attached for electronic frling with the Commission are the following
revised tariffsheet:
Thirtieth Revision Sheet 150 canceling Twenty-Ninth Revision Sheet 150
Enclosed for filing with the Commission are an original and seven copies of the "Application of Avista
Utilities for an Order Approving a Change in Natural Gas Rates and Charges". The revised tariff sheet
included in the Company's filing reflects an update to the Commodity WACOG for the Company's
Purchased Gas Cost Adjusfrnent ("PGA"). If approved, the Company's annual revenue will increaseby
approximately $3.3 million or approximately 8.1%. The proposed changes have no effect on the
Company's earnings. Detailed information related to the Company's request is included in the attached
Application and supporting workpapers.
If the Company's request is approved, a residential or small commercial customer using an average of 63
therns for the period January - October 2022 will see an increase of $3.93 per month, or approximately
7.6%o. "I\e present bill for 63 therms is $51.93 while the proposed bill is $55.86.
If you have any questions regarding this filing, please contact Joe Miller at [phone] or Marcus
Garbarino at [phone].
Sincerely,
/s/ Patrick D. Ehrbar
Patrick D. Ehrbar
Director of Regulatory Affairs
BEFORE T}IE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
AVISTA UTILITIES FOR AN ORDER APPROVING ) CASE: AVU-G-21-07
A CHANGE IN NATURAL GAS RATES AND CHARGES )
Application is hereby made to the Idaho Public Utilities Commission for an Order approving a revised
schedule of rates and charges for natural gas service in the state of ldaho. The Applicant requests that
the proposed rates included in this Purchased Gas Cost Adjusftnent ("PGA") filing be made effective on
February 1,2022. If approved as filed, the Company's annual revenue will increase by approximately
$3.3 million or about 8.lo/o. In support of this Application, Applicant states as follows:
I
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 l4l I 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, and Kellogg, Idaho.
Communications in reference to this Application should be addressed to:
Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
l4l1 E. Mission Avenue
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]
P at. ehrbar@ avi stacorp. com
[e-mail]
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
l4l I E. Mission Avenue
Spokane, WA 99220-3727
Phone: [phone]
Fax: [phone]
David. meyer(4)avistacorp.com
Case No. AW-G-21-0_ (Advice No. 21-09-G)Page I of5
m
The Applicant is a public utility engaged in the distribution of natural gas in certain portions of Northern
Idaho, Eastem and Central Washington, and Southwestern and Northeastern Oregon, and further
engaged in the generation, transmission, and distribution of electricity in Northern Idaho and Eastern
Washington.
IV
Thirtieth Revision Sheet 150, which Applicant requests the Commission approve, is filed herewith as
Exhibit "A". Also included in Exhibit "A" is a copy of Twenty-Ninth Revision Sheet 150 and a copy of
Twenty-Ninth Revision Sheet 150 and with the proposed changes shown by lining over the current
language or rates.
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 QsmFany's district offices 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 December
timeframe.
VII.
The circumstances and conditions relied on for approval of Applicant's revised rates are as follows:
Applicant purchases natural gas for customer usage and transports it over Williams Northwest Pipeline,
Gas Transmission Northwest (GTN), TransCanada - Albena, TransCanada - BC and Spectra Energy
Pipeline systems, and defers the effect of timing differences due to implementation of rate changes and
differences between Applicant's actual weighted average cost of gas ("WACOG") purchased and the
WACOG embedded in rates.
VIII
This filing reflects the Company's proposed "Out of Cycle" PGA to amend the commodity WACOG in
Schedule 150 due to a material change in natural gas prices and collect the change in the estimated cost
of natural gas for the February 2022 throtgh October 2022 rme-month period, Below is a table
summarizing the proposed changes reflected in this filing.
Case No. AW-G-21-0_ (Advice No. 21-09-G)Page 2 of 5
Service
General
Lg. General
Lg General
lntemrptible
Transportation
Commodity
Change
per therm
$ 0.0623s
$ 0.0623s
s 0.0623s
$ 0.06235
$-
Demand
Change
per therm
$-
$-
$-
$-
$-
Total
Sch. 150
Chanse
$ 0.06235
$ 0.0623s
$ 0.0623s
$ 0.0623s
$-
Sch.
No.
l0t
lll
tt2
l3l
146
Amortization Total PGA
Change Rate Change
oer therm per therm
$ $ 0.0623s
$ $ 0.0623s
$ $ 0.06235
$ - $ 0.06235
$$-
Ix.
Commoditv Costs
In CaseNo. AW-G-21-04, the Commission approved the Company's annual PGA with a September l,
2021 effective date. In that filing, the Company's commodity weighted average cost of gas
("Commodity WACOG") increased by $0.04022 per therm, from $0.16283 per therm to $0.20305 per
them (including revenue sensitive costs). As discussed in that filing, although the cost of natural gas
commodity remains relatively low in comparison to historical periods, wholesale natural gas prices have
risen substantially during the year and above the level currently included in rates. The market factors
attributing to the rise in prices is an overall increase in demand and lower supply. The main driver in
demand has been record exports to Mexico, elevated LNG exports and increased use for power
generation. On the supply side, production has been slow to ramp up to pre-pandemic levels. In addition,
storage levels are well below where they were at this time last year and the current forecasted end of
season level is seen as significantly below last year's level. These market conditions were present when
the Company made its initial filing and have since continued to put significant upward pressure on
wholesale natural gas prices thus creating a material change from the WACOG approved in the
Company's prior PGA.I Avista is proposing a rate adjustment that more closely aligns the actual cost
of what Avista is paying for natural gas with what is included in customer rates in this filing.
ln order to limit the bill impact to customers resulting from a large surcharge deferral caused by the
difference in commodity WACOG presently included in rates and the current forward commodity prices,
especially during the winter heating season, the Company proposes to increase the Commodity WACOG
from the $0.20305 per therm embedded in current rates to $0.26540 per therm for the remainder of the
PGA year, representing an increase of $0.06235 per therm.
The Company calculated the proposed Commodity WACOG of $0.26540 per therm by adjusting just
two items. First, the Company used a 5-day historical average of AECO forward prices (as ofNovember
22,2021) to develop an estimated cost associated with index purchases for the remainder of the PGA
year.z The estimated monthly volumes to be purchased are multiplied by the 5-day average forward
price for the corresponding month. The annual weighted average price for these volumes is $3.06 per
I In Case No. AVU-G-21-04, Final Order 35 l5 l, the Commission stated on page 6 *IT IS FURTIIER ORDERED that the
Company shall promptly apply to amend its WACOG if gas prices materially deviate from the WACOG approved in this
Order.
2 The use of 5-day historical average forward prices reduced the weighted average price per dekatherm, and the rate impact
to customers, from what otherwise would have occurred had the Company used a longer pricing period.
Case No. AW-c-21-0_ (Advice No. 21-09-G) Page 3 of 5
dekatherm ($0.306 per therm). The annual weighted average price presently included in rates for these
volumes is $2.17 per dekatherm ($0.217 per therm).
Second, the Company entered into additional natural gas hedges after it filed its annual PGA. The
weighted average price for hedged natural gas presently included in rates for the remainder of the PGA
year is $1.77 per dekatherm ($0.177 per therm). The annual weighted average price for all hedges,
including those entered into after the annual PGA filing for the remainder of the PGA year, is $2.66 per
dekatherm (0.266 per therm).
Updating the 5-day historical average of forward wholesale natural gas prices, and reflecting all hedges
entered into to date, results in a proposed $3.3 million revenue increase.
x.
Demand Costs
The Company is not requesting any changes related to demand charges in this filing. Any changes to
those items will occur in the Company's next annual PGA filing.
xI.
Schedule 155 / Amortization Rate Chanse
The Company is not requesting any changes related to Rate Schedule l55/Amortization charges in this
filing. Any changes to those items will occur in the Company's next annual PGA filing.
xII.
If approved as filed, the Company's annual revenue will increase by approximately $3.3 million or about
8.1% effective February 1,2022. Residential or small commercial customers using an average of 63
therms per month (for the nine month period) would see an increase of $3.93 per month, or
approximately 7.60/o. The present bill for 63 therms is $51.93 while the proposed bill is $55.86.
XIII.
Confidential Exhibit "D" attached hereto contains support workpapers for the rates proposed by
Applicant contained in Exhibit "A".
XIV
Avista requests that the rates proposed in this filing be approved to become effective on February l,
2022, 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.
xv.
Case No. AW-G-21-0_ (Advice No. 21-09-G)Page 4 of5
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
February 1,2022. The overall increase is approximately $3.3 million or 8.1%. 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 3d day of December2}2l
AVISTA UTILITIES
BY
/s/ DavidJ. Meyer
David J. Meyer
Vice President and Chief Counsel for
Regulatory and Governmental Affairs
Case No. AW-G-21-0 (AdviceNo. 21-09-G)Page 5 of5
AVISTA UTILITIES
Case No. AVU-G-21-01
December PGA Commodity WACOG Update
DGIIBIT "A"
Proposed Tariff Sheet
December 3 ,2021
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 150
PURCHASE GAS COST ADJUSTMENT. IDAHO
APPLICABLE:
To Customers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To pass through changes in costs resulting from purchasing and transporting
naturalgas, to become effective as noted below.
RATE:(a) The retail rates of firm gas Schedules 101 , 1 1 1 and 112 are to be increased
by 35.7836 per therm in all blocks of these rate schedules.
(b)The rates of intemrptible Schedules 131 and 132 are to be increased by
26.540fi, per therm.
(c)The rate for transportation under Schedule 146 is to be decreased by
0.0000 per therm.
WEIGHTED AVERAGE GAS COST:
The above rate changes are based on the following weighted average cost of gas
per therm as of the effective date shown below:Demand Commodity Total
Schedules 101 9.2430, 26.5400 35.7830,
Schedules 111 and 112 9.2430, 26.5400, 35.7830
Schedules 131 and 132 0.0000 26.5400, 26.5400,
The above amounts include a gross revenue factor.
Demand Commodity Total
Schedules 101 9.2030, 26.4240, 35.6270
Schedules 111 and 112 9.2030, 26.4240 35.6270
Schedules 131 and 132 0.000/ 26.4240, 26.4240,
The above amounts do not include a gross revenue factor.
BALANCING ACCOUNT:
The Company will maintain a Purchase Gas Adjustment (PGA) Balancing Account
whereby monthly entries into this Balancing Account will be made to reflect differences
between the actual purchased gas costs collected from customers and the actual
purchased gas costs incurred by the Company. Those differences are then collected from
or refunded to customers under Schedule 155 - Gas Rate Adjustment.
lssued December 3,2021 Effective February 1,2022
l.P.U.C. No.27
lssued by
By
Thirtieth Revision Sheet 150
Replacing
ineth Revision Sheet 150 150
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 150
PURCHASE GAS COST ADJUSTMENT. IDAHO
APPLICABLE:
To Customers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To pass through changes in costs resulting from purchasing and transporting
naturalgas, to become effective as noted below.
RATE:(a) The retail rates of firm gas Schedules 101, 111 and 112are to be increased
by *54e$ per therm in all blocks of these rate schedules.
(b)The rates of intenuptible Schedules 131 and 132 are to be increased by
3e€950 per therm.
(c)The rate for transportation under Schedule 146 is to be decreased by
0.0000 per therm.
WEIGHTED AVERAGE GAS COST:
The above rate changes are based on the following weighted average cost of gas
per therm as of the effective date shown below:Demand Commodity Total
Schedules 101 9.2430, 2e3e5$ M$,
Schedules 111 and 112 9.2430, 2ffiO5P W$,
Schedules 131 and 132 0.000P 20305d 2O3O5p
The above amounts include a gross revenue factor.
Demand Commodity Total
Schedules 101 9.2030, M7$, W$,
Schedules 111 and 112 9.2030, W n#$,
Schedules 131 and 132 0.0000 M+75 2W7$,
The above amounts do not include a gross revenue factor.
BALANCING ACCOUNT:
The Company will maintain a Purchase Gas Adjustment (PGA) Balancing Account
whereby monthly entries into this Balancing Account will be made to reflect differences
between the actual purchased gas costs collected from customers and the actual
purchased gas costs incurred by the Company. Those differences are then collected from
or refunded to customers under Schedule 155 - Gas Rate Adjustment.
fssued July 2,2021 Effective September 1,202'l
l.P.U.C. No.27
lssued by
By
Twenty-Nineth Revision Sheet 150
Replacing
Revision Sheet 150 150
Patrick Ehrbar- Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 150
PURCHASE GAS COST ADJUSTMENT. IDAHO
APPLICABLE:
To Customers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To pass through changes in costs resulting from purchasing and transporting
natural gas, to become effective as noted below.
RATE:(a) The retail rates of firm gas Schedules 101 , 1 1 1 and 112 are to be increased
by 35.7830 per therm in all blocks of these rate schedules.
(b)The rates of intenuptible Schedules 131 and 132 are to be increased by
26.5400, per therm.
(c)The rate for transportation under Schedule 146 is to be decreased by
0.000S per therm.
WEIGHTED AVERAGE GAS COST:
The above rate changes are based on the following weighted average cost of gas
per therm as of the effective date shown below:Demand Commodity Total
Schedules 101 9.2$A 26.540d, 35.783d
Schedules 111 and 112 9.2430, 26.5406, 35.783d
Schedules 131 and 132 0.0006 26.540G 26.540d,
The above amounts include a gross revenue factor.
Demand Commodity Total
Schedules 101 9.2030, 26.4246 35.627C
Schedules 111 and 112 9.2030, 26.4246, 35.627A
Schedules 131 and 132 0.0000 26.424d, 26.4246,
The above amounts do not include a gross revenue factor.
BALANCING ACCOUNT:
The Company will maintain a Purchase Gas Adjustment (PGA) Balancing Account
whereby monthly entries into this Balancing Account will be made to reflect differences
between the actual purchased gas costs collected from customers and the actual
purchased gas costs incurred by the Company. Those differences are then collected from
or refunded to customers under Schedule 155 - Gas Rate Adjustment.
lssued December 3,2021 Effective February 1,2022
LP.U.C. No.27
lssued by
By
Thirtieth Revision Sheet 150
Replacing
ineth Revision Sheet 150 150
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs
AVISTA UTILITIES
Case No. AW-G-21-01
December PGA Cornrnodity WACOG Update
DGIIBIT "B"
Notice of Public Applicant's Proposed Tariffs
December 3, 2021
DRAFT
Important Notice for Idaho Customers
@ecember 2021)
Avista has filed a Purchased Gas Cost Adjustment (PGA) rate adjustrnent request with the Idaho Public
Utilities Commission (Commission), that if approved, is designed to increase overall natural gas revenue
by approximately $3.3 million or 8.lYo effective Feb. l, 2022. T\is filing has no impact on Avista's
eamings.
The PGA is filed annually to balance the actual cost of wholesale natural gas purchased by Avista to serve
customers with the amount presently included in customer's rates. PGAs ensure that customers pay what
Avista pays for natural gas, only at a more predictable and stable rate throughout the year. Avista made its
annual PGA filing earlier this year and new rates went into effect on Sept. l.
Since that time, the price of wholesale natural gas has continued to rise. Due to this increase of wholesale
natural gas prices, Avista is proposing a rate adjustment that more closely aligns the actual cost of what
Avista is presently paylng for wholesale natural gas with the cost of natural gas included in customer rates.
About 40%o of an Avista natural gas customer's bill is the combined cost of purchasing natural gas on the
wholesale market and transporting it to Avista's system. These costs fluctuate up and down based on market
prices, of which Avista cannot control. Importantly, Avista does not make a profit on, or markup, the
wholesale cost of natural gas; what Avista pays is what is passed through to customers, dollar for dollar.
Natural Gas Customer Bills
If approved, residential natural gas customers in Idaho using a monthly average of 63 therms would see
their bills increase $3.93 or approximately 7.6%o, from $51.93 to $55.86 per month effective Feb. 1,2022.
Net effect on an annual revenue basis by rate schedule would be:
General Service - Schedule l0l
Large General Service - Schedules lll & ll2
Transportation Service - Schedule 146
Overall
7.2%
11.0%
0.0%
8.1%
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 on the Commission's website (www.puc.idaho.eov).
Customers may file with the Commission written comments related to the Company's filings. Customers
may also subscribe to the Commission's RSS feed (https://puc.idaho.gov/RssPaee) to receive periodic
updates via e-mail about the case. Copies of rate filings are also available on our website,
www. myavista. com/rates.
If you would like to submit comments on the proposed rate change, you can do so by going to the
Commission website or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
DRATT
Avista off€rs a ntrmber of psograms aod s€rviccs to help custmem manage their energy use and costs. Visit
www.myavista-eom for information on these programs v&ich inolude Comfort lrevel Billing, bill paynent
options, automated paynent servicg assistrnce prograrns, consewation tipo, and eneqg5l efficiency rebates.
AVA483i
AYISTA UTILITTES
Case No. AVU-G-21-01
E)GIIBIT 66C"
Co?y of Press Release and Custome,r Notice
Gontact:
Media : Celena Mock (509) 4954923 celena. [e-mail]
lnvestors: Stacey Wenz [phone] [e-mail]
Avista 2417 Media Access (509) 4954174
Avista Makes Natural Gas Price Adjustment Filing in ldaho
Overall changes in naturalgas prbes would be effective Feb. 1, 2022
SPOKANE, Wash. - Dec. 3,2021,4:05 p.m. PST: Avista (NYSE: AVA) has made a
Purchased Gas Cost Adjustment (PGA)filing with the ldaho Public Utilities Commission (IPUC
or Commission) that, if approved, is designed to increase overall natural gas revenue by
approximately $g.g million or 8.1o/o effective Feb. 1 , 2022. This filing has no impact on Avista's
earnings.
The PGA is filed annually to balance the actual cost of wholesale natural gas purchased by
Avista to serve customers with the amount presently included in custome/s rates. PGAs ensure
that customers pay what Avista pays for natural gas, only at a more predictable and stable rate
throughout the year. Avista made its annual PGA filing earlier this year and new rates went into
effect on Sept. 1,2021.
Since that time, the price of wholesale natural gas has continued to rise. Due to this increase of
wholesale natural gas prices, Avista is proposing a rate adjustment that more closely aligns the
actual cost of what Avista is presently paying for wholesale natural gas with the cost of natural
gas included in customer rates.
About 40% of an Avista natural gas custome/s bill is the combined cost of purchasing natural
gas on the wholesale market and transporting it to Avista's system. These costs fluctuate up
and down based on market prices, which Avista cannot control. lmportantly, Avista does not
make a profit on, or markup, the wholesale cost of natural gas; what Avista pays is what is
passed through to customers, dollar for dollar.
Natural Gas Customer Bills
lf approved, residential natural gas customers in ldaho using a monthly average of 63 therms
would see their bills increase $3.93 or approximately 7.60/o, from $51.93 to $55.86 per month
effective Feb. 1 ,2022.
Net effect on an annual revenue basis by rate schedule would be:
GeneralService - Schedule 101
Large General Service - Schedules 111 & 112
Transportation Service - Schedule 146
Overall
7.20/o
11.0o/o
O.0o/o
8.10/
Customer Resources
To assist customers in managing their energy bills, Avista offers services for customers such as
comfort level billing, payment alrangements and Customer Assistance Refenal and Evaluation
Services (CARES), which aid special-needs customers through refenals to area agencies and
churches for help with housing, utilities, medical assistance and other needs. Avista also
provides funding for energy assistance programs and Project Share, which are administered
through community action agencies.
Avista provides energy efficiency and outreach programs that include rebates and incentives as
well as tips and resources to help customers manage their energy use and energy bills.
Customers can learn more at www.mvavista.com.
Rate Application Procedure
Avista's applications are proposals, subject to public review and a Commission decision. Due to
the COVID-19 pandemic, we are unable to provide copies at our office locations as we usually
do. However, a copy of the application is available for public review on the Commission's
website (www.puc.idaho.qov). Customers may file with the Commission written comments
related to the Company's filing. Customers may also subscribe to the Commission's RSS feed
(https://puc.idaho.oov/RssPaoe) to receive periodic updates via e-mail about the case. Copies
of the rate filing is also available on our website, www.mvavista.com/rates.
lf you would like to submit comments on the proposed rate change, you can do so by going to
the Commission website or mailing comments to:
ldaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
About Avista Corp.
Avista Corp. is an energy company involved in the production, transmission and distribution of
energy as well as other energy-related businesses. Avista Utilities is our operating division that
provides electric service to 400,000 customers and natural gas to 367,000 customers. lts
service territory covers 30,000 square miles in eastem Washington, northern ldaho and parts of
southern and eastem Oregon, with a population of 1.6 million. Alaska Energy and Resources
Company is an Avista subsidiary that provides retail electric service in the city and borough of
Juneau, Alaska, through its subsidiary Alaska Electric Lioht and Power Companv. Avista stock
is traded under the ticker symbol 'AVA.' For more information about Avista, please visit
www.avistacorp.com.
This news release contains fonrard-looking statements regarding the company's cunent
expectations. Forward-looking statements are all statements other than historical facts. Such
statements speak only as of the date of the news release and are subject to a variety of risks
and uncertainties, many of which are beyond the company's control, which could cause actual
results to differ materially from the expectations. These risks and uncertainties include, in
addition to those discussed herein, all of the factors discussed in the company's Annual Report
on Form 10-K for the year ended Dec. 31 , 2020 and the Quarterly Report on Form 10-Q for the
quarter ended Sept. 30, 2021.
listsra
SOURCE: Avista Corporation
-2142-
To unsubscribe from Avista's news release distribution, send a reply message to
[e-mail]
^liststa
DRAFT
Important Notice for Idaho Customers
@ecember 2021)
Avista has filed a Purchased Gas Cost Adjustment (PGA) rate adjustrnent request with the Idaho Public
Utilities Commission (Commission), that if approved, is designed to increase overall natural gas revenue
by approximately $3.3 million or 8.1% effective Feb. l, 2022. This filing has no impact on Avista's
earnings.
The PGA is filed annually to balance the actual cost of wholesale natural gas purchased by Avista to serve
customers with the amount presently included in customer's rates. PGAs ensure that customers pay what
Avista pays for natural gas, only at a more predictable and stable rate throughout the year. Avista made its
annual PGA filing earlier this year and new rates went into effect on Sept. l.
Since that time, the price of wholesale natural gas has continued to rise. Due to this increase of wholesale
natural gas prices, Avista is proposing a rate adjustment that more closely aligns the actual cost of what
Avista is presently paying for wholesale natural gas with the cost of natural gas included in customer rates.
About 40%o of an Avista natural gas customer's bill is the combined cost of purchasing natural gas on the
wholesale market and transporting it to Avista's system. These costs fluctuate up and down based on market
prices, of which Avista cannot control. Importantly, Avista does not make a profit on, or markup, the
wholesale cost of natural gas; what Avista pays is what is passed through to customers, dollar for dollar.
Natural Gas Customer Bills
If approved, residential natural gas customers in Idaho using a monthly average of 63 therms would see
their bills increase $3.93 or approximately 7.6Yo, from $51.93 to $55.86 per month effective Feb. 1,2022.
Net effect on an annual revenue basis by rate schedule would be
General Service - Schedule l0l
Large General Service - Schedules lll & ll2
Transportation Service - Schedule 146
Overall
7.2%
tr.0%
0.0%
8.1%
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 on the Commission's website (www.puc.idaho.eov).
Customers may file with the Commission written comments related to the Company's filings. Customers
mayalsosubscribetotheCommission'sRSSfeed@toreceiveperiodic
updates via e-mail about the case. Copies of rate filings are also available on our website,
www. myavi sta.com/rates.
If you would like to submit comments on the proposed rate change, you can do so by going to the
Commission website or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
DRAFT
Avista off€[E a numba of programs and servic€s to help sustm€rt manage their enerry use and oosts. Visit
www.myavista.com for information on these prograam u,hich include Confort ,,*.1 3illing, bill palment
options, automated palmeat seivice, assistance programs, cooservation tips, and eneqgy efficiency rebate.
AVM83i
AVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGI]LATORY & GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
P.O.BOX3727
I4I I EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220 -37 27
TELEPHONE: [phone]
FACSIMILE: (509) 495-885 I
DAVTD.MEYER@AVTSTACORP. COM
BEFORE THE IDAHO PUBLIC UTILITIES COMIVIISSION
IN T}M MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR A}.I
ORDER APPROVING A CHANGE
IN NATURAL GAS RATES AND CHARGES
CONFIDENTIALITY
TO NATURAL GAS CUSTOMERS IN THE
STATE OF IDAHO
)
)
)
)
cAsE NO. AVU-G-?I-U
ATTORNEY' S CERTTFICATE
CLAIM OF
) RELATTNG TO PORTTONS
) oF AVISTA',S EXHIBIT'S
) AND WORKPAPERS
1
2
3
4
5
6
1
B
9
FOR AVISTA CORPORATION
I, David J. Meyer, represent Avista Corporation. I am Vice President and Chief
Counsel for Regulatory and Governmental Affairs for Avista Corporation (Avista or
Company) and I am appearing on its behalf in this proceeding.
I make this certification and claim of confidentiality pursuant to IDAPA 31.01.01
because Avista, through its supporting workpapers, is disclosing certain information that
is CONFIDENTIAL and constitutes TRADE SECRETS as defined by Idaho Code
Section 9-340 and 48-801 and protected under IDAPA 31.01.01.067 and 31.01.01.233.
The electronic information Avista provides will, as required under IDAPA Rule
31.01.01.067, be marked as CONFIDENTIAL on all documents. [n accordance with
Case No. GNR-U-20-01, OrderNo.34602 which suspends the requirement to physically
file documents due to the COVID-I9 Pandemic, the Company will file all work papers,
tariffs, and exhibits only in electronic format.
The confidential information that Avista is disclosing includes, but is not limited
to certain forward wholesale natural gas pricing which is provided by a third-party
vendor, who does not allow public access to their proprietary information. Avista herein
asserts that the aforementioned information is confidential in that making third-party
pricing data public will violate the terms of our agreement with the vendor.
I am of the opinion that this information is CONFIDENTIAL, as defined by
Idaho Code Sections 9-340D and 48-801, should therefore be protected from public
inspection, examination and copying, and should be utilized only in accordance with the
terms of the protective agreement between Avista Corporation and Parties who have
requested such an agreement.
10
11
72
13
74
15
76
l1
1B
t9
20
21
22
23
ATTORNEY'S CERTIFICATE - 1
L
2
3
4
5
6
7
RESPECTFTILLY SIJBMITTED this 3d day of Deember202l
/s/DtvidJ. Marcr
DavidJ. Meyer
Vice President and Chief Counsel for
Regulatory & Govenrmental Atrairg
Avista Corporation
ATTORNEY'S CERMICATE. 2