20211217Notice_of_Application_Order_No_35260.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35260 1
Office of the Secretary
Service Date
December 17, 2021
BEFORE THE 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
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CASE NO. AVU-G-21-07

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35260

On December 3, 2021, Avista Corporation dba Avista Utilities (“Company”) applied
to amend its current weighted average cost of gas (“WACOG”) in its Rate Schedule 150 for the
Company’s Purchased Gas Cost Adjustment (“PGA”) “due to a material change in natural gas
prices and [to] collect the change in estimated cost of natural gas for the February 2022 through
October 2022 nine-month period.” Application at 2. The Company is not requesting any changes
to demand charges or Rate Schedule 155-Gas Rate Adjustment or amortization rate in this case.
Id. at 4. The Company represents that if its Application is approved, its annual revenue will
increase by approximately $3.3 million (8.1%) and rates for an average residential or small
commercial customer will increase by $3.93 per month (7.6%). The Company asks that its
Application be processed by Modified Procedure and that the new rates take effect on February 1,
2022.
NOTICE OF APPLICATION
A. Overview of Proposed Changes
YOU ARE HEREBY NOTIFIED that the Company is a public utility that distributes
natural gas in northern Idaho, eastern and central Washington, and southwestern and northeastern
Oregon. The Company buys natural gas and then transports it through pipelines for delivery to
customers.
YOU ARE FURTHER NOTIFIED that the Company’s PGA is a Commission
approved mechanism that annually adjusts rates up or down to reflect rates up or down to reflect
changes in the Company’s costs to buy natural gas from suppliers—including changes in
transportation, storage, and other related costs. The Company defers these costs into its PGA
account and then passes them on to customers through an increase or decrease in rates.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35260 2
YOU ARE FURTHER NOTIFIED that the Company’s timing in filing its Application
“defers the effect of timing differences due to implementation of rate changes and differences
between the Company’s WACOG purchased and the WACOG embedded in rates. Id. This filing
is “out of cycle” due to a material change in natural gas prices and is intended to collect the change
in the estimated cost of natural gas for the February 2022 through October 2022 nine-month period.
Id. The Company asserts that in Order No 35151, the Commission directed the Company to
“promptly apply to amend its WACOG if natural gas prices materially deviate[d] from the
WACOG approved in [Order 35151.].” Order No. 35151 at 6. The following table summarizes the
proposed changes the Company wishes the Commission to approve:

Service

Schedule
No.
Commodity
Change per
Therm
Demand
Change
per
Therm
Total
Sch. 150
Change
Amortization
Change per
Therm
Total Rate
Change
per Therm
General 101 $0.06235 $ - $0.06235 $ - $0.06235
Lg. General 111 $0.06235 $ - $0.06235 $ - $0.06235
Lg. General 112 $0.06235 $ - $0.06235 $ - $0.06235
Interruptible 131 $0.06235 $ - $0.06235 $ - $0.06235
Transportation 146 $ - $ - $ - $ - $ -

Id. at 2-3.
B. Commodity Costs
YOU ARE FURTHER NOTIFIED that in Case No. AVU-G-21-04, the Commission
approved the Company’s annual PGA proposal with a September 1, 2021, effective date. See Order
No. 35151. In that Order, the WACOG increased by $0.04022 per therm, from $0.16283 to
$0.20305 per therm (including revenue sensitive costs.). As discussed in the Company’s filing,
wholesale natural gas prices have risen substantially due to rising demand and lower supply during
the year and above the level currently included in rates. Application at 3. The main factor
determining demand has been exports to Mexico, elevated LNG exports, and increased use for
power generation. Id. In addition, the storage levels for natural gas are well below where they were
last year, and the current forecasted end of season level appears to be substantially below last
year’s level. Id. These market conditions have continued to put significant upward pressure on
wholesale natural gas prices. Id.
YOU ARE FURTHER NOTIFIED that the Company asserts to limit the bill impact to
customers resulting from a large surcharge deferral caused by the difference in the WACOG
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35260 3
presently included in rates and the current forward commodity prices, the Company proposes to
increase the 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. Id. at 3.
The Company has calculated the proposed Commodity WACOG of $0.26540 per therm by
adjusting the 5-day historical average of AECO forward prices and hedging additional natural gas
after its’ previous PGA filing. Id. at 4. Updating the 5-day historical average and all hedges results
in a proposed $3.3 million revenue increase.
YOU ARE FURTHER NOTIFIED that if the Company’s Application is approved as
filed, the Company’s annual revenue will increase by $3.3 million (8.1%). Residential or small
commercial customers using an average of 63 therms per month (for the nine-month period) would
see an increase in $3.93 per month (7.6%). The present bill for 63 therms is $51.93; the proposed
increase would bump the present bill to $55.86.
YOU ARE FURTHER NOTIFIED that the Company asserts it has or will notify
customers of its proposed tariffs by posting notice at each of its Idaho district offices, and through
a press release. Also, the Company states it will send notice to each customer as a bill insert during
the December timeframe. See Application, Exhibits B & C.
YOU ARE FURTHER NOTIFIED that the Application and Exhibits are available for
public inspection during regular business hours at the Commission’s office. The Application is
also available on the Commission’s website at www.puc.idaho.gov. Click on the “NATURAL
GAS” tab at the top of the home page, then select “Open Cases” and then locate and click on the
case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code. The Commission may
enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter and will proceed under Modified Procedure
pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules of Procedure,
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35260 4
IDAPA 31.01.01.201 through .204. The Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that anyone desiring to state a position on this
Application may file a written comment explaining why the person supports or opposes the
Application by January 6, 2022. Persons who would like a hearing must specifically request a
hearing in their written comments. Comments must be filed through the Commission website or
by email unless computer access is unavailable. To comment electronically, please access the
Commission’s home page at www.puc.idaho.gov. Click the “Consumer” tab on the Commission’s
webpage and then “Case Comment Form” and complete the form using the case number as it
appears on the front of this document. To file by email, the customer must email the comments to
the email addresses listed below. If computer access is unavailable, then comments may be mailed
to the Commission and Company at these addresses:

For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714

For Avista:

Patrick D. Ehrbar
David J. Meyer
Avista Utilities
1411 E. Mission Avenue
Spokane, WA 99220-3727
[e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
January 13, 2022.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application be processed by Modified
Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35260 5
comments must do so by January 6, 2022. The Company must file any reply comments by January
13, 2022.
IT IS FURTHER ORDERED that Parties should continue to comply with Order No.
35058, issued June 3, 2021. All pleadings should be filed with the Commission electronically and
shall be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between Parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 17th day
of December 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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