20220927Notice_of_Application_Order_No_35541.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35541 1
Office of the Secretary
Service Date
September 27, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF AVISTA UTILITIES
APPLICATION 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-22-06

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35541

On September 2, 2022, Avista Corporation dba Avista Utilities (“Company”) filed its
annual Purchased Gas Cost Adjustment (“PGA”) Application. The PGA is a Commission-
approved mechanism that adjusts 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.
The Company states its proposal will increase annual revenues by about $11.2 million
(12.7%) The Company states that the average residential or small commercial customer using an
average of 64 therms per month will see an increase of $7.27 per month or 11.9%. The Company
provided a copy of the press release it will send to affected customers. The Company asks that its
Application be processed by Modified Procedure and that the new rates take effect November 1,
2022.
NOTICE OF APPLICATION
A. Overview of Proposed Rates
YOU ARE HEREBY NOTIFIED that in this PGA Application, the Company proposes
to: (1) pass any change in the estimated cost of natural gas for the next 12 months to customers
(Tariff Schedule 150); and (2) revise the amortization rates to refund or collect the balance of
deferred gas costs (Tariff Schedule 155). The Company proposes to change its PGA rates in this
case for its customer classes as follows:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35541 2

Service

Sch
No.
Commodity
Change per
therm
Demand
Change per
therm
Total
Sch. 150
Change
Amortization
Change per
therm
Total PGA
Rate Change
per therm
General 101 $ (0.00111) $ (0.00005) $ (0.00116) $ 0.11658 $ 0.11542
Lg. General 111 $ (0.00111) $ (0.00005) $ (0.00116) $ 0.11658 $ 0.11542
Lg. General 112 $ (0.00111) $ (0.00005) $ (0.00116) $ - $ (0.00116)
Interruptible 131 $ (0.00111) $ - $ (0.00111) $ - $ (0.00111)
Transportation 146 $ - $ - $ - $ - $ -

Application at 3. The Company’s proposed changes to Schedules 150 and 155 and the Company’s
rates are further explained below.
B. Schedule 150
YOU ARE FURTHER NOTIFIED that the Tariff Schedule 150 portion of the PGA
has two parts: the “commodity costs” and the “demand costs.”
YOU ARE FURTHER NOTIFIED that the Company’s “commodity costs” are the
variable costs at which the Company must buy natural gas. The weighted average cost of gas is an
estimate of those costs. Here, the Company estimates its commodity costs will decrease by
$0.00111 per therm, from the currently approved $0.35181 per therm. Id. at 3. To minimize
exposure to potential rising gas costs, the Company states it diversifies how it procures natural gas.
The Company alleges that its procurement strategy includes hedging and estimating the cost of
index purchases. Id.
YOU ARE FURTHER NOTIFIED that the Company’s demand costs primarily are
costs to transport gas on interstate pipelines to the Company’s local distribution system and fixed
costs associated with storage. Id. The Company proposes a $0.00005 per therm decrease in the
overall demand rate for customers on Schedules 101, 111, and 112. Id. This decrease is caused by
factors including the Canadian exchange rate, an updated demand forecast, and new rates for the
Company’s Canadian pipelines, effective June 1, 2022. Id.
C. Schedule 155
YOU ARE FURTHER NOTIFIED that Tariff Schedule 155 reflects the amortization
of the Company’s deferral account. The Company’s proposed amortization rate change for
Schedule 101 and Schedule 111 is an increase in revenue of $0.11542 per therm. The current rate
applicable to Schedule 101 and Schedule 111 is $0.01505 per therm in the surcharge direction; the
proposed rate is $0.13163 per therm in the surcharge direction taking into account the proposed
amortization rate change.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35541 3
YOU ARE FURTHER NOTIFIED that if the Company’s Application is approved as
filed, the Company’s annual revenue will increase by approximately $11.2 million (12.7%).
YOU ARE FURTHER NOTIFIED that the Company asserts it has or will notify
customers of its proposed tariffs by sending notice to each customer as a bill insert during in
September.
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,
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 persons desiring to state a position on this
Application may file a written comment explaining why they support or oppose the Application.
Persons who would like a hearing must specifically request a hearing in their written comments.
Persons shall have until October 6, 2022, to file written comments. Persons desiring 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 e-mail, the
customer must e-mail the comments to the Commission Secretary and the Company at the e-mail
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35541 4
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]

Street Address for Express 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
October 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
comments must do so by October 6, 2022. The Company must file any reply comments by October
13, 2022.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April
21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35541 5
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 27th day
of September 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER
ATTEST:

Jan Noriyuki
Commission Secretary

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