20221101Final_Order_No_35575.pdf

ORDER NO. 35575 1

Office of the Secretary
Service Date
November 1, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR
APPROVAL TO INCREASE ITS ENERGY
EFFICIENCY TARIFF RIDER
ADJUSTMENT SCHEDULE 191
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CASE NO. AVU-G-22-07

ORDER NO. 35575

On September 2, 2022, Avista Corporation, dba Avista Utilities (“Company” or “Avista”)
applied to the Idaho Public Utilities Commission (“Commission”) for authorization to increase its
natural gas tariff, I.P.U.C. No. 27, Schedule 191, “Energy Efficiency Rider Adjustment” rates.
Schedule 191 funds the Natural Gas Efficiency Program (“Program”) as described in the
Company’s Schedule 190, including, but not limited to: behavioral programs; low-income
weatherization; Northwest Energy Efficiency Alliance (“NEEA”) participation; and provision of
incentives for various energy efficiency measures such as appliances, compressed air, HVAC,
industrial, lighting, maintenance, motors, shell, and sustainable buildings.
The Company represented that as of July 31, 2022, the current Schedule 191 tariff rider
balance was approximately $2.1 million underfunded, and while the current rate was designed to
fund the Program by approximately $1.4 million annually, the actual expenses incurred during
2020 and 2021 increased by approximately 53% as compared to the 2019 Program year. The
Company proposed to increase billed natural gas rates by 3.0% through proposed revisions in
Schedule 191, with a requested effective date of November 1, 2022.
The Company stated that it was filing another application simultaneously with this
Application related to purchased gas costs that would increase natural gas revenues by
approximately $11.2 million or 12.7% effective November 1, 2022, and that if both applications
were approved, the net change to natural gas revenue would be an increase of $13.8 million or
15.7% effective November 1, 2022.
The Company represented that this Application would be brought to the attention of the
Company’s customers by way of a Customer Notice, which would be included in customer’s bills
beginning in early September 2022 and run for a full billing cycle, and by posting the Application
to the Company’s website at myavista.com.

ORDER NO. 35575 2

STAFF COMMENTS
Staff reviewed the Company’s Application and workpapers. Staff supported the
Company’s request to increase the Schedule 191 - Energy Efficiency Rider Adjustment, which
would increase the Company’s natural gas revenues in Idaho by 3.0%. Staff believed the Company
properly applied the new rate adjustment to customer classes as shown in Table No. 1 below:
Table No. 1: Schedule 191 Rates

SCHEDULE
EXISTING
RATE
PROPOSED
RATE
General Service – Sch. 101 $.01818 per Therm $.04903 per Therm
Large General Service – Sch. 111 & 112 $.00978 per Therm $.02626 per Therm
Interruptible Sales Service – Sch. 131 & 132 $.00978 per Therm $.02626 per Therm

Staff reviewed Avista’s forecasted natural gas energy efficiency expenses and agreed with
the Company that Schedule 191 was projected to be balanced by October 2025. Based on its
review, Staff expected that Avista’s demand-side management (“DSM”) program costs would
continue to be prudently incurred and that the programs would remain cost-effective. However,
Staff did not analyze the Company’s DSM prudency or its actual cost-effectiveness calculations
for any of its programs. Staff noted that such validation and additional review were not requested
in this case and would occur in Case No. AVU-G-22-05, currently pending before the Commission.
Staff noted that the Company filed two other applications with rate adjustments and
requested effective dates of November 1, 2022. The Company’s natural gas Purchased Gas Cost
Adjustment (“PGA”), Case No. AVU-G-22-06, was filed simultaneously with this Application
and requested an increase in natural gas revenues of approximately $11.2 million, or 12.7%. The
Company’s Fixed Cost Adjustment (“FCA”), Case No. AVU-G-22-04, was filed on July 29, 2022,
and requested a decrease in the Company’s overall natural gas revenues by $0.1 million, or 0.2%.
Table No. 2 below shows the effect of all three cases if approved as filed.
Table No. 2: Impact of the Three Natural Gas Filings:

CASE
$ REVENUE
CHANGE
% REVENUE
CHANGE
EE Tariff $ 2.6 Million 3.0%
PGA $ 11.2 Million 12.7%
FCA $ (0.1 Million) (0.2%)
TOTAL $ 13.7 Million 15.5%

ORDER NO. 35575 3

Staff reviewed the Company’s press release and customer notice. Staff believed that both
met the requirements of Rule 125 of the Commission’s Rules of Procedure. IDAPA 31.01.01.125.
However, Staff believed it was possible that some customers may not have received their notices
or had adequate time to submit comments before the comment deadline. Staff recommended that
the Commission consider late filed comments by customers. Staff noted that as of October 5, 2022,
no customer comments had been filed.
Staff recommended that the Commission approve the Company’s Application to increase
the Schedule 191 Customer Efficiency Services Rate and approve the proposed Schedule 191 tariff
as filed. Additionally, Staff recommended the Commission consider late filed comments from
customers.
COMMISSION DISCUSSION AND FINDINGS
The Commission has jurisdiction over the Company and this matter pursuant to Idaho Code
§§ 61-336, 61-502, 61-503, and 61-622. The Commission has the express statutory authority to
investigate rates, charges, rules, regulations, practices, and contracts of public utilities and to
determine whether they are just, reasonable, preferential, discriminatory, or in violation of any
provision of law, and may fix the same by order. Idaho Code §§ 61-502, 61-503.
The Commission has reviewed the record, and all submitted materials. Based upon its
review, the Commission finds the Company’s proposed increase to billed natural gas rates of 3.0%
through revisions in Schedule 191 is fair, just, and reasonable. The Commission makes no finding
as to the prudence of any specific program funded under Schedule 191.
ORDER
IT IS HEREBY ORDERED that the Company’s Application to increase the Schedule 191
Customer Efficiency Services Rate, with a November 1, 2022, effective date is approved.
IT IS FURTHER ORDERED that the Company’s proposed Schedule 191 tariff is approved
as filed.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code §§ 61-
626, 62-619.
ORDER NO. 35575 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 1st day of
November 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER
ATTEST:

Jan Noriyuki
Commission Secretary

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