20230201Anderson Exhibit 17 Schedule 1-2.pdf

DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY & GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
P.O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: [phone]
FACSIMILE: [phone]
[e-mail]

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR THE ) CASE NO. AVU-G-23-01
AUTHORITY TO INCREASE ITS RATES )
AND CHARGES FOR ELECTRIC AND )
NATURAL GAS SERVICE TO ELECTRIC ) EXHIBIT NO. 17
AND NATURAL GAS CUSTOMERS IN THE )
STATE OF IDAHO ) JOEL ANDERSON
)

FOR AVISTA CORPORATION

(NATURAL GAS)

Exhibit No. 17 Case No. AVU-G-21-01 J. Anderson, Avista Schedule 1, p. 1 of 9
NATURAL GAS COST OF SERVICE STUDY 1
A cost of service study is an engineering-economic study, which apportions the revenue, 2
expenses, and rate base associated with providing natural gas service to designated groups of 3
customers. It indicates whether the revenue provided by customers recovers the cost to serve those 4
customers. The study results are used as a guide in determining the appropriate rate spread among 5
the groups of customers. 6
As shown in the flowchart below, there are three basic steps involved in a cost of service 7
study: functionalization, classification, and allocation. 8
First, the expenses and rate base associated with the natural gas system under study are 9
assigned to functional categories. The FERC uniform system of accounts provides the basic 10
segregation into production, underground storage, and distribution. Traditionally customer 11
accounting, customer information, and sales expenses are included in the distribution function and 12
administrative and general expenses and general plant rate base are allocated to all functions. This 13
study includes a separate functional category for common costs. Administrative and general costs 14
that cannot be directly assigned to the other functions have been placed in this category. 15
Second, the expenses and rate base items are classified into three primary cost components: 16
demand, commodity and customer related. Demand-related (capacity) costs are allocated to rate 17
schedules based on each schedule’s contribution to system peak demand. Commodity-related 18
(energy) costs are allocated based on each rate schedule’s share of commodity consumption. 19
Customer-related items are allocated to rate schedules based on the number of customers within 20
each schedule. The number of customers may be weighted by appropriate factors such as relative 21
cost of metering equipment. In addition to these three cost components, any revenue-related expense 22
is allocated based on the proportion of revenues by rate schedule. 23
Exhibit No. 17 Case No. AVU-G-21-01 J. Anderson, Avista Schedule 1, p. 2 of 9
The final step is allocation of the costs to the various rate schedules utilizing the allocation 1
factors selected for each specific cost item. These factors are derived from usage and customer 2
information associated with the test period results of operations. 3
BASE CASE COST OF SERVICE STUDY FLOWCHART 4
5
Pro Forma Results of Operations by Customer Group
Underground Storage
Production / Purchased Gas Cost
Distribution and Customer Relations
Energy / Commodity
Related
Customer RelatedDemand / Capacity Related
Residential
101
Small General111/112 Interruptible131/132
Transportation146
Pro Forma Results of Operations
Functionalization
Common
Classification
Allocation
Direct AssignmentThroughputSales ThermsFirm Therms Direct AssignmentCoincident PeakNon-Coincident Peak
Direct AssignmentNumber of CustomersWeighted Number of Customers
Exhibit No. 17 Case No. AVU-G-21-01 J. Anderson, Avista Schedule 1, p. 3 of 9
Production - Purchased Gas Costs 1
The Company has no natural gas production facilities to serve its retail customers. In 2
addition, the revenue and expenses associated with the gas purchased to serve sales customers and 3
pipeline transportation to get it to our system have been removed from the Company’s filing. The 4
natural gas costs included in the production function include the expenses of the gas supply 5
department. 6
The expenses of the gas supply department recorded in account 813 are classified as 7
commodity related costs. The gas scheduling process includes transportation customers, so 8
estimated scheduling dispatch labor expenses are allocated by throughput. The remaining gas 9
supply department expenses are allocated 95% by sales volumes and 5% on total throughput. 10
Underground Storage 11
Underground storage rate base, operating and maintenance expenses are classified as 12
commodity-related and allocated to customer groups by winter throughput. This approach was 13
proposed by commission Staff and accepted by the Idaho Public Utilities Commission in Case No. 14
AVU-G-04-01. 15
Distribution Facilities Classification (Peak and Average) 16
Distribution mains and regulator station equipment (both general use and city gate stations) 17
are classified Demand and Commodity using the peak and average ratio for the distribution system. 18
Peak demand is defined as the average of the five-day sustained peaks from the most recent three 19
years. Average daily load is calculated by dividing annual throughput by 365 (days in the year). 20
The average daily load is divided by peak load to arrive at the system load factor of 44.55%. This 21
proportion is classified as commodity-related. The remaining 55.45% is classified as demand-22
related. Meters, services and industrial measuring & regulating equipment are classified as 23
Exhibit No. 17 Case No. AVU-G-21-01 J. Anderson, Avista Schedule 1, p. 4 of 9
customer-related distribution plant. Distribution operating and maintenance expenses are classified 1
(and allocated) in relation to the plant accounts they are associated with. 2
Customer Relations Distribution Cost Classification 3
Customer service, customer information and sales expenses are the core of the customer 4
relations functional unit which is included with the distribution cost category. For the most part 5
these costs are classified as customer-related. Exceptions include uncollectible accounts expense, 6
which is considered separately as a revenue conversion item, and any Demand Side Management 7
amortization expense recorded in Account 908.1 8
Distribution Cost Allocation 9
Demand-related distribution costs are allocated to customer groups (rate schedules) by each 10
groups’ contribution to the three-year average five-day sustained peak. Commodity-related 11
distribution costs are allocated to customer groups by annual throughput. Distribution main 12
investment has been segregated into large and small mains. Small mains are defined as less than 13
four inches, with large mains being four inches or greater. The small main costs use the same 14
demand and commodity data, but large usage customers (Schedules 131, 132, and 146) that connect 15
to large system mains have been excluded from the allocations. 16
Most customer-related costs are allocated by the annualized number of customers billed 17
during the test period. Meter investment costs are allocated using the number of customers weighted 18
by the relative current cost of meters in service at December 31, 2019. Services investment costs 19
are allocated using the number of customers weighted by the relative current cost of typical service 20
1 Any demand side management investment costs and amortization expense included in base rates would be included with the distribution function and classified to demand and commodity by the peak and average ratio. At this point in time, the Company’s demand side management investments in base rates have been fully amortized. All current demand side management costs are managed through the Schedule 191 Energy Efficiency Rider Adjustment balancing account which is not included in this cost study.
Exhibit No. 17 Case No. AVU-G-21-01 J. Anderson, Avista Schedule 1, p. 5 of 9
installations. Industrial measuring and regulating equipment investment costs are allocated by 1
number of turbine meters which effectively excludes small usage customers. 2
Administrative and General Costs 3
General and intangible rate base items are allocated by the Company’s four-factor allocator. 4
Administrative and general expenses are segregated into plant-related, labor-related, revenue-related 5
and other. The plant-related items are allocated based on total plant in service. Labor-related items 6
are allocated by operating and maintenance labor expense. Revenue-related items are allocated by 7
pro forma revenue. Other administrative and general expenses are allocated by the Company’s four-8
factor. 9
Special Contract Customer Revenue 10
Two special contract customers receive transportation service from the Company. Rates for 11
these customers were individually negotiated to cover any incremental costs together with some 12
contribution to margin. The rates for these customers are not being adjusted in this case. The 13
revenue from these special contract customers has been segregated from general rate revenue and 14
allocated back to all the other rate classes by relative rate base. In treating these revenues like other 15
operating revenues their system contribution reduces costs for all rate schedules. 16
Revenue Conversion Items 17
In this study uncollectible accounts and commission fees have been classified as revenue-18
related and are allocated by pro forma revenue. These items vary with revenue and are included in 19
the calculation of the revenue conversion factor. Income tax expense items are allocated to 20
schedules by net income before income tax less interest expense. 21
For the functional summaries on pages 2 and 3 of the cost of service study, these items are 22
assigned to the component cost categories. The revenue-related expense items have been reduced 23
Exhibit No. 17 Case No. AVU-G-21-01 J. Anderson, Avista Schedule 1, p. 6 of 9
to a percent of all other costs and loaded onto each cost category by that ratio. Similarly, income 1
tax items have been assigned to cost categories by relative rate base (as is net income). 2
The following matrix outlines the methodology applied in the Company Base Case natural 3
gas cost of service study. 4
IPUC Case No. AVU-G-23-01 Methodology Matrix
Avista Utilities Idaho Jurisdiction
Natural Gas Cost of Service Methodology
Line Account Functional Category Classification Allocation
Underground Storage Plant
1 350 - 357 Underground Storage Underground Storage Commodity E08 Winter throughput
Distribution Plant
2 374 Land Distribution Demand/Commodity/Customer from Other Dist Plant S05 Sum of accounts 376-385
3 375 Structures Distribution Demand/Commodity/Customer from Other Dist Plant S05 Sum of accounts 376-385
4 376(S) Small Mains Distribution Demand/Commodity by Peak & Average D02/E06 Coincident peak, annual therms (both excl lg use cust)
5 376(L) Large Mains Distribution Demand/Commodity by Peak & Average D01/E01 Coincident peak (all), annual throughput (all)
6 378 M&R General Distribution Demand/Commodity by Peak & Average D01/E01 Coincident peak (all), annual throughput (all)
7 379 M&R City Gate Distribution Demand/Commodity by Peak & Average D01/E01 Coincident peak (all), annual throughput (all)
8 380 Services Distribution Customer
9 381 Meters Distribution Customer
10 385 Industrial M&R Distribution Customer
11 387 Other Distribution Demand/Commodity/Customer from Other Dist Plant S05 Sum of accounts 376-385
General Plant
12 389-399 All General Plant Common Demand/Commodity/Customer
Intangible Plant
13 303 Misc Intangible Plant Distribution Demand/Commodity/Customer from Dist Plant S15 Sum of Distribution Plant in Service
14 303 Computer Software Common Demand/Commodity/Customer
Reserve for Depreciation
15 Underground Storage Underground Storage Commodity same as related plant Allocations linked to related plant accounts
16 Distribution Distribution Demand/Commodity/Customer same as related plant Allocations linked to related plant accounts
17 General Common Demand/Commodity/Customer same as related plant Allocations linked to related plant accounts
18 Intangible Distribution/Common Demand/Commodity/Customer same as related plant Allocations linked to related plant accounts
Other Rate Base
19 Accumulated Deferred FIT All Demand/Commodity/Customer from Plant in Service S17 Sum of Total Plant in Service
20 Constuction Advances Distribution Customer C10 Residential only
21 Gas Inventory Underground Storage Commodity from Underground Storage Plant S14 Sum of Underground Storage Plant in Service
22 Gain on Sale of Office Bldg Common Demand/Commodity/Customer from UG & D Plant S03 Sum of Underground Storage and Distribution Plant in Service
23 DSM Investment Distribution Demand/Commodity by Peak & Average D01/E01 Coincident peak (all), annual throughput (all)
Purchased Gas Expenses
24 804 Purchased Gas Cost Production Removed all Purchased Gas Costs from Filing N/A
25 813 Other Gas Expenses Production Commodity E01/E04 Annual Throughput / Annual Sales Therms
Underground Storage O&M
26 814 - 837 Underground Storage Exp Underground Storage Commodity E08 Winter throughput
Exhibit No. 17
Case No. AVU-G-21-01
J. Anderson, Avista
Schedule 1, p. 7 of 9
IPUC Case No. AVU-G-23-01 Methodology Matrix
Avista Utilities Idaho Jurisdiction
Natural Gas Cost of Service Methodology
Line Account Functional Category Classification Allocation
Distribution O&M
1 870 OP Super & Engineering Distribution Demand/Commodity/Customer from Dist Plant S15 Sum of Distribution Plant in Service
2 871 Load Dispatching Distribution Commodity E01 Annual throughput
3 874 Mains & Services Distribution Demand/Commodity/Customer from related plant S06 Sum of Mains and Services Plant in Service
4 875 M&R Station - General Distribution Demand/Commodity from related plant S08 Sum of Meas & Reg Station - General Plant in Service
5 876 M&R Station - Industrial Distribution Customer from related plant S19 Sum of Meas & Reg Station - Industrial Plant in Service
6 877 M&R Station - City Gate Distribution Demand/Commodity from related plant S09 Sum of Meas & Reg Station - City Gate Plant in Service
7 878 Meter & House Regulator Distribution Customer from related plant S07 Sum of Meter and Installation Plant in Service
8 879 Customer Installations Distribution Customer
9 880 Other OP Expenses Distribution Demand/Commodity/Customer from other dist expenses S04 Sum of Accounts 870 - 879 and 881 - 894
10 881 Rents Distribution Demand/Commodity/Customer from other dist expenses S04 Sum of Accounts 870 - 879 and 881 - 894
11 885 MT Super & Engineering Distribution Demand/Commodity/Customer from Dist Plant S15 Sum of Distribution Plant in Service
12 886 MT of Structures Distribution Demand/Commodity/Customer from Other Dist Plant S05 Sum of accounts 376-385
13 887 MT of Mains Distribution Demand/Commodity from related plant S21 Sum of Distribution Mains Plant in Service
14 889 MT of M&R General Distribution Demand/Commodity from related plant S08 Sum of Meas & Reg Station - General Plant in Service
15 890 MT of M&R Industrial Distribution Customer from related plant S19 Sum of Meas & Reg Station - Industrial Plant in Service
16 891 MT of M&R City Gate Distribution Demand/Commodity from related plant S09 Sum of Meas & Reg Station - City Gate Plant in Service
17 892 MT of Services Distribution Customer from related plant S20 Sum of Services Plant in Services
18 893 MT of Meters & Hs Reg Distribution Customer from related plant S07 Sum of Meter and Installation Plant in Service
19 894 MT of Other Equipment Distribution Demand/Commodity/Customer from Dist Plant S15 Sum of Distribution Plant in Service
Customer Accounting Expenses
20 901 Supervision Customer Relations Customer C01 All customers (unweighted)
21 902 Meter Reading Customer Relations Customer C01 All customers (unweighted)
22 903 Customer Records & Collections Customer Relations Customer C01 All customers (unweighted)
23 904 Uncollectible Accounts Revenue Conversion Revenue R03 Retail Sales Revenue
24 905 Misc Cust Accounts Customer Relations Customer C01 All customers (unweighted)
Customer Service & Info Expenses
25 907 Supervision Customer Relations Customer C01 All customers (unweighted)
26 908 Customer Assistance Customer Relations Customer C01 All customers (unweighted)
27 908 DSM Amortization Distribution Demand/Commodity by Peak & Average D01/E01 Coincident peak (all), annual throughput (all)
28 909 Advertising Customer Relations Customer C01 All customers (unweighted)
29 910 Misc Cust Service & Info Customer Relations Customer C01 All customers (unweighted)
Sales Expenses
30 911 - 916 Sales Expenses Customer Relations Customer C01 All customers (unweighted)
Exhibit No. 17
Case No. AVU-G-21-01
J. Anderson, Avista
Schedule 1, p. 8 of 9
IPUC Case No. AVU-G-23-01 Methodology Matrix
Avista Utilities Idaho Jurisdiction
Natural Gas Cost of Service Methodology
Line Account Functional Category Classification Allocation
Admin & General Expenses
1 920 Salaries Common Demand/Commodity/Customer from Other O&M
2 921 Office Supplies Common Demand/Commodity/Customer from Other O&M
3 922 Admin Expense Transferred - Credit Common Demand/Commodity/Customer from Other O&M
4 923 Outside Services Common Demand/Commodity/Customer from Other O&M
5 924 Property Insurance Common Demand/Commodity/Customer from Plant in Service S17 Sum of Total Plant in Service
6 925 Injuries & Damages Common Demand/Commodity/Customer from Other O&M
7 926 Pensions & Benefits Common Demand/Commodity/Customer from Labpr O&M S13 O&M Labor Expense
8 927 Franchise Requirements Common Demand/Commodity/Customer from Other O&M
9 928 Regulatory Commision Common Demand/Commodity/Customer from Other O&M
10 928 Commission Fees Revenue Conversion Revenue R01 Retail Sales Revenue
11 930 Miscellaneous General Common Demand/Commodity/Customer from Other O&M
12 931 Rents Common Demand/Commodity/Customer from Other O&M
13 935 MT of General Plant Common Demand/Commodity/Customer from Plant in Service S17 Sum of Total Plant in Service
Depreciation Expense
14 Underground Storage Underground Storage Commodity same as related plant Allocations linked to related plant accounts
15 Distribution Distribution Demand/Commodity/Customer same as related plant Allocations linked to related plant accounts
16 General Common Demand/Commodity/Customer same as related plant Allocations linked to related plant accounts
17 Intangible Distribution/Common Demand/Commodity/Customer same as related plant Allocations linked to related plant accounts
Taxes
18 Property Tax All Demand/Commodity/Customer from related plant S14/S15/S16 Sum of UG Plant/Sum of Dist Plant/Sum of Gen Plant
19 Miscellaneous Dist Tax Distribution Demand/Commodity/Customer from Dist Plant S15 Sum of Distribution Plant in Service
20 State Income Tax Revenue Conversion Revenue R02 Net Income before Taxes less Interest Expense
21 Federal Income Tax Revenue Conversion Revenue R02 Net Income before Taxes less Interest Expense
22 Deferred FIT Revenue Conversion Revenue R02 Net Income before Taxes less Interest Expense
23 ITC Revenue Conversion Revenue R02 Net Income before Taxes less Interest Expense
Operating Revenues
24 Revenue from Rates Revenue Revenue Pro Forma Revenue per Revenue Study
25 Special Contract Revenue All Demand/Commodity/Customer from Rate Base S01 Sum of Rate Base
26 Off System Sales Production Commodity from PGA Tracker E04 Sales Therms
27 Miscellaneous Service Revenue Distribution Demand/Commodity/Customer from Dist Plant S15 Sum of Distribution Plant in Service
28 Rent From Gas Property All Demand/Commodity/Customer from Rate Base S01 Sum of Rate Base
Exhibit No. 17
Case No. AVU-G-21-01
J. Anderson, Avista
Schedule 1, p. 9 of 9
AVISTA UTILITIES Natural Gas Utility
Company Base Case Cost of Service General Summary Idaho Jurisdiction
For the Year Ended December 31, 2019

(b)(c)(d)(e)(f)(g)(h)(i)(j)
Residential Large Firm Interrupt Transport
System Service Service Service Service
Line Description Total Sch 101 Sch 111 Sch 131 Sch 146
Plant In Service
1 Underground Storage Plant 15,183,000 11,126,187 3,677,433 - 379,380
2 Distribution Plant 271,226,000 226,189,091 42,458,886 - 2,578,024
3 Intangible Plant 14,883,000 13,115,672 1,663,400 - 103,928
4 General Plant 33,378,000 29,571,410 3,581,881 - 224,709
5 Total Plant In Service 334,670,000 280,002,360 51,381,598 - 3,286,041
6 - - - - -
Accum Depreciation
Underground Storage Plant (5,756,000) (4,218,029) (1,394,145) - (143,826)
7 Distribution Plant (97,488,000) (82,293,515) (14,319,523) - (874,962)
8 Intangible Plant (4,862,000) (4,291,288) (537,114) - (33,597)
9 General Plant (15,540,000) (13,767,743) (1,667,638) - (104,619)
10 Total Accumulated Depreciation
11 - - - - -
12 Net Plant 211,024,000 175,431,785 33,463,178 - 2,129,036
Accumulated Deferred FIT (43,651,000) (36,520,701) (6,701,701) - (428,598)
13 Miscellaneous Rate Base 6,107,000 4,627,806 1,347,899 - 131,295
14 Total Rate Base 173,480,000 143,538,890 28,109,377 - 1,831,733
15 - - - - -
16 Revenue From Retail Rates 43,659,000 35,786,655 7,394,494 - 477,851
Other Operating Revenues 208,000 427,656 (245,206) - 25,550
17 Total Revenues 43,867,000 36,214,312 7,149,288 - 503,400
18 - - - - -
19 Operating Expenses
Purchased Gas Costs 419,000 296,621 118,513 - 3,866
Underground Storage Expenses 859,000 629,480 208,056 - 21,464
20 Distribution Expenses 5,794,000 5,028,564 722,193 - 43,242
21 Customer Accounting Expenses 2,709,000 2,663,686 45,299 - 15
22 Customer Information Expenses 478,000 469,545 8,421 - 33
23 Sales Expenses (0) (0) (0) - (0)
24 Admin & General Expenses 6,259,000 5,479,478 733,044 - 46,478
25 Total O&M Expenses 16,518,000 14,567,375 1,835,526 - 115,099
26 - - - - -
27 Taxes Other Than Income Taxes 2,069,000 1,707,642 338,967 - 22,391
Depreciation Expense
28 Underground Storage Plant Depreciation 208,000 152,424 50,379 - 5,197
29 Distribution Plant Depreciation 6,346,000 5,312,051 975,728 - 58,221
30 General Plant Depreciation 2,633,000 2,332,720 282,554 - 17,726
31 Amortization Expense 2,037,000 1,703,718 313,269 - 20,014
32 Total Depreciation Expense 11,224,000 9,500,912 1,621,930 - 101,158
33 Income Tax 1,401,000 981,721 387,159 - 32,119
34 Total Operating Expenses 31,212,000 26,757,651 4,183,582 - 270,767
35
36 Net Operating Income 12,655,000 9,456,661 2,965,706 - 232,633
Rate of Return 7.29%6.59%10.55%0.00%12.70%
37 Return Ratio 1.00 0.90 1.45 - 1.74
38 Interest Expense 4,649,000 3,846,624 753,289 - 49,088
39 Income Tax / Net Oper Income 11.07%
40
Proposed Rate Revenue Increase 52,000 42,000 9,000 - 1,000
Proposed Misc Revenue Increase -
Total Revenue Increase 52,000 42,000 9,000 - 1,000
allocated Misc Rev increase - - - - -
allocation basis - Dist Plant 0.8340 0.1565 - 0.0095
(c)(d)(e)
Proposed Rate Revenue 43,711,000 35,828,655 7,403,494 - 478,851
Exhibit No. 17
Case No. AVU-G-23-01
J. Anderson, Avista
Schedule 2, p. 1 of 8
Line Present Return b4 conversion items 14,157,000 10,521,171 3,369,971 - 265,858
1 present conversion items, new spread
2 Uncollectibles (16,000) (13,115) (2,710) - (175)
3 Commission Fees 117,000 95,902 19,817 - 1,282
4 incremental conversion items, new spread
5 Uncollectibles - - - - -
6 Commission Fees - - - - -
7 less: Interest Expense 4,649,000 3,846,624 753,289 - 49,088
Proposed Return b4 Tax, new spread 9,459,000 6,633,760 2,608,576 - 216,664
less: FIT--present (748,000) (524,585) (206,281) - (17,133)
8 less: FIT--incremental 10,000 7,013 2,758 - 229
9 less: SIT--present (310,000) (217,408) (85,491) - (7,101)
10 less: SIT--incremental 2,000 1,403 552 - 46
11 less: DFIT, ITC--present 2,459,000 1,724,539 678,136 - 56,325
12 addback: Interest Expense 4,649,000 3,846,624 753,289 - 49,088
Proposed Return 12,695,000 9,489,422 2,972,192 - 233,386
Proposed Rate of Return 7.32%6.61%10.57%0.00%12.74%
13 Proposed Return Ratio 1.00 0.90 1.44 0.00 1.74
14
15 Rate Revenues at Uniform Present Rates 43,659,000 36,981,095 6,316,663 - 361,242
16 Rate Change to get to Uniform Present Rates (0) 1,194,440 (1,077,832) - (116,608)
17 % Change to get to Uniform Rates 0.0%3.2%-17.1%0.0%-32.3%
18
19
Revenue Related Op Exp., current 101,000 82,788 17,106 - 1,105
Rate Rev. excl Rev. Conversion Items, current 43,558,000 35,703,867 7,377,388 - 476,745
20 Revenue Conversion Item Ratio, current 0.2319%0.2319%0.2319%0.0000%0.2319%
21
22 Adj. Revenue Conversion Items 101,000 82,787 17,107 - 1,106
Adj. Rate Rev. excl Conversion Items 43,610,000 35,745,869 7,386,387 - 477,744
24 Adj. Revenue Conversion Ratio 0.2316%0.2316%0.2316%0.0000%0.2316%
Adj. Income Tax Items 1,413,000 990,961 389,673 - 32,366
Adj. Return 12,695,000 9,489,422 2,972,192 - 233,386
Adj. Income Tax Ratio 11.1304%10.4428%13.1106%0.0000%13.8678%
Adj. Income Tax Items - Uniform 1,413,000 1,056,207 330,816 - 25,977
26
27
28 SUMMARY BY FUNCTION WITH MARGIN ANALYSIS
29
30 Total Sch 101 Sch 111 Sch 131 Sch 146
31 Functional Cost Components at Current Rates
32 Production 2,669,175 1,904,405 760,895 - 3,875
Underground Storage 2,143,757 1,453,879 618,370 - 71,508
Distribution 26,655,134 21,895,567 4,459,375 - 300,191
33 Common 12,190,934 10,532,804 1,555,853 - 102,277
34 Total Current Rate Revenue 43,659,000 35,786,655 7,394,494 - 477,851
35 Exclude Cost of Gas w / Revenue Exp.- - - - -
36 Total Margin Revenue at Current Rates
37 -
Margin per Therm at Current Rates
Production 0.028646$ 0.029776$ 0.029776$ -$ 0.001057$
38 Underground Storage 0.023007$ 0.022732$ 0.024198$ -$ 0.019506$
39 Distribution 0.286066$ 0.342342$ 0.174507$ -$ 0.081887$
40 Common 0.130834$ 0.164683$ 0.060885$ -$ 0.027899$
41 Total Curr. Margin Melded Rate per Therm 0.468553$ 0.559532$ 0.289365$ -$ 0.130349$
42
43 Functional Cost Components at Uniform Current Return
44 Production 2,669,175 1,904,405 760,895 - 3,875
Underground Storage 2,085,467 1,528,242 505,115 - 52,110
Distribution 26,653,744 22,854,655 3,586,534 - 212,554
45 Common 12,250,615 10,693,793 1,464,118 - 92,703
Total Uniform Current Cost 43,659,000 36,981,095 6,316,663 - 361,242
47 Exclude Cost of Gas w / Revenue Exp.- - - - - Total Uniform Current Margin 43,659,000 36,981,095 6,316,663 - 361,242
49 -
Margin per Therm at Uniform Current Return
50 Production 0.02865$ 0.02978$ 0.02978$ -$ 0.00106$
Underground Storage 0.02238$ 0.02389$ 0.01977$ -$ 0.01421$
51 Distribution 0.28605$ 0.35734$ 0.14035$ -$ 0.05798$
Exhibit No. 17
Case No. AVU-G-23-01
J. Anderson, Avista
Schedule 2, p. 2 of 8
Common 0.13147$ 0.16720$ 0.05729$ -$ 0.02529$
Total Curr. Uniform Margin @ Melded Rate 0.46855$ 0.57821$ 0.24719$ -$ 0.09854$
Margin to Cost Ratio at Current Rates 1.00 0.97 1.17 - 1.32
Functional Cost Components at Proposed Rates
Line Production 2,669,167 1,904,400 760,893 - 3,875
Underground Storage 2,147,487 1,456,496 619,316 - 71,674
Distribution 26,696,921 21,929,311 4,466,668 - 300,943
1 Common 12,197,424 10,538,449 1,556,617 - 102,359
2 Total Proposed Rate Revenue 43,711,000 35,828,655 7,403,494 - 478,851
3 Exclude Cost of Gas w / Revenue Exp.- - - - -
4 Total Margin Revenue at Proposed Rates 43,711,000 35,828,655 7,403,494 - 478,851
Margin per Therm at Proposed Rates
5 Production 0.02865$ 0.02978$ 0.02978$ -$ 0.00106$
6 Underground Storage 0.02305$ 0.02277$ 0.02424$ -$ 0.01955$
7 Distribution 0.28651$ 0.34287$ 0.17479$ -$ 0.08209$
8 Common 0.13090$ 0.16477$ 0.06091$ -$ 0.02792$ Total Proposed Margin @ Melded Rates
9 Functional Cost Components at Uniform Proposed Return
10 Production 2,669,167 1,904,400 760,893 - 3,875
11 Underground Storage 2,089,125 1,530,922 506,001 - 52,201 Distribution 26,695,550 22,889,220 3,593,363 - 212,967
Common 12,257,157 10,699,576 1,464,833 - 92,748
12 Total Uniform Proposed Cost 43,711,000 37,024,118 6,325,090 - 361,791
13 Exclude Cost of Gas w / Revenue Exp.- - - - -
14 Total Uniform Proposed Margin 43,711,000 37,024,118 6,325,090 - 361,791
15 Margin per Therm at Uniform Proposed Return
Production 0.02865$ 0.02978$ 0.02978$ -$ 0.00106$
16 Underground Storage 0.02242$ 0.02394$ 0.01980$ -$ 0.01424$
17 Distribution 0.28650$ 0.35788$ 0.14062$ -$ 0.05809$
18 Common 0.13155$ 0.16729$ 0.05732$ -$ 0.02530$
19 Total Prop. Uniform Margin @ Melded Rates
Margin to Cost Ratio at Proposed Rates 1.00 0.97 1.17 - 1.32
20
21 Throughput Therms 93,178,299 63,958,196 25,554,168 - 3,665,936
22 Peak Therms 603,291 455,030 136,118 - 12,143
Number of Customers (Annualized)1,030,550 1,012,322 18,156 - 72
23
SUMMARY BY CLASSIFICATION WITH UNIT COST ANALYSIS
24
25 Total Sch 101 Sch 111 Sch 131 Sch 146
26 Cost by Classification at Curr. Return by Schedule
27 Commodity 13,032,380 8,774,079 4,005,090 - 253,211 Demand 8,723,102 6,217,007 2,361,403 - 144,692
Customer 21,903,518 20,795,570 1,028,001 - 79,948
28 Total Current Rate Revenue 43,659,000 35,786,655 7,394,494 - 477,851
29
30 Revenue per Therm at Current Rates
31 Commodity 0.13986$ 0.13718$ 0.15673$ -$ 0.06907$ Demand 0.09362$ 0.09720$ 0.09241$ -$ 0.03947$
Customer 0.23507$ 0.32514$ 0.04023$ -$ 0.02181$
32 Total Revenue per Therm at Current Rates 0.46855$ 0.55953$ 0.28937$ -$ 0.13035$
33
34 Cost per Unit at Current RatesCommodity 0.13986$ 0.13718$ 0.15673$ -$ 0.06907$
Demand 14.46$ 13.66$ 17.35$ -$ 11.92$
35 Customer 21.25$ 20.54$ 56.62$ -$ 1,110.39$
36
37 Cost by Classification at Uniform Current Return
38 Commodity 12,742,860 9,079,836 3,469,808 - 193,216 Demand 8,572,677 6,516,038 1,949,214 - 107,425
Customer 22,343,463 21,385,221 897,641 - 60,601
39 Total Uniform Current Cost 43,659,000 36,981,095 6,316,663 - 361,242
40
41 Cost per Therm at Current Return
42 Commodity 0.13676$ 0.14197$ 0.13578$ -$ 0.05271$
Exhibit No. 17
Case No. AVU-G-23-01
J. Anderson, Avista
Schedule 2, p. 3 of 8
Demand 0.09200$ 0.10188$ 0.07628$ -$ 0.02930$
Customer 0.23979$ 0.33436$ 0.03513$ -$ 0.01653$
43 Total Cost per Therm at Current Return
44
45 Cost per Unit at Uniform Current Return
Commodity 0.13676$ 0.14197$ 0.13578$ -$ 0.05271$
46 Demand 14.21$ 14.32$ 14.32$ -$ 8.85$
Customer 21.68$ 21.12$ 49.44$ -$ 841.68$
47
Revenue to Cost Ratio at Current Rates 1.00 0.97 1.17 - 1.32
Cost by Classification at Proposed Return by Schedule
Commodity 13,048,115 8,784,831 4,009,559 - 253,725
Demand 8,737,387 6,227,529 2,364,846 - 145,012
Customer (c)(d)(e)21,925,498 20,816,295 1,029,089 - 80,114
Total Proposed Rate Revenue 43,711,000 35,828,655 7,403,494 - 478,851
Line Revenue per Therm at Proposed Rates
Commodity 0.14003$ 0.13735$ 0.15690$ -$ 0.06921$
Demand 0.09377$ 0.09737$ 0.09254$ -$ 0.03956$
Customer 0.23531$ 0.32547$ 0.04027$ -$ 0.02185$
1 Total Revenue per Therm at Prop. Rates
2
3 Cost per Unit at Proposed Rates
Commodity 0.14003$ 0.13735$ 0.15690$ -$ 0.06921$
4 Demand 14.48$ 13.69$ 17.37$ -$ 11.94$
5 Customer 21.28$ 20.56$ 56.68$ -$ 1,112.69$
6
Cost by Classification at Uniform Proposed Return
7 Commodity 12,758,342 9,090,851 3,473,993 - 193,498
Demand 8,586,855 6,526,816 1,952,438 - 107,601
8 Customer 22,365,803 21,406,451 898,660 - 60,692
9 Total Uniform Proposed Cost 43,711,000 37,024,118 6,325,090 - 361,791
10
11 Cost per Therm at Proposed Return
Commodity 0.13692$ 0.14214$ 0.13595$ -$ 0.05278$
Demand 0.09216$ 0.10205$ 0.07640$ -$ 0.02935$
12 Customer 0.24003$ 0.33469$ 0.03517$ -$ 0.01656$
13 Total Cost per Therm at Proposed Return 0.46911$ 0.57888$ 0.24752$ -$ 0.09869$
14
15 Cost per Unit at Uniform Proposed Return
16 Commodity 0.13692$ 0.14214$ 0.13595$ -$ 0.05278$
17 Demand 14.23$ 14.34$ 14.34$ -$ 8.86$
Customer 21.70$ 21.15$ 49.50$ -$ 842.95$
18
19 Revenue to Cost Ratio at Prop. Rates 1.00 0.97 1.17 - 1.32
20
24
25 Underground Storage Related Rate Base 12,194,682 8,936,331 2,953,640 - 304,710
Distribution Related Rate Base 139,395,999 115,256,043 22,763,318 - 1,376,638
26 Common Related Rate Base 21,889,319 19,346,516 2,392,418 - 150,385
27 Total Rate Base 173,480,000 143,538,890 28,109,377 - 1,831,733
28 Functional Cost Components at Current Return by Schedule
Line 32
Purchased Gas Cost - Commodity - - - - -
Purchased Gas Cost - Capacity - - - - -
Other Production Costs 2,663,000 1,899,999 759,135 - 3,866
Subtotal Production Cost 2,663,000 1,899,999 759,135 - 3,866
Rev. Related items 6,175 4,406 1,760 - 9
Net Production Cost 2,669,175 1,904,405 760,895 - 3,875
Line
UG Storage Exp 1,266,000 927,732 306,634 - 31,634
UG Storage Rev (173,416) (127,081) (42,003) - (4,333)
Subtotal UG Storage Cost 1,092,584 800,651 264,632 - 27,301
Income Tax 107,144 61,119 40,681 - 5,343
Return on Rate Base 939,071 588,745 311,627 - 38,699
Rev. Related items 4,959 3,363 1,431 - 165
Net UG Storage Cost 2,143,757 1,453,879 618,370 - 71,508
Exhibit No. 17
Case No. AVU-G-23-01
J. Anderson, Avista
Schedule 2, p. 4 of 8
Line
Distribution Exp 14,077,000 11,955,978 2,001,147 - 119,875
Cust Svc, Cust Info, Sales Exp 3,203,000 3,146,346 56,430 - 224
DSM Exp - - - - -
Distribution Rev (1,982,303) (1,639,017) (323,709) - (19,577)
Subtotal Distribution Cost 15,297,697 13,463,307 1,733,868 - 100,522
Income Tax 1,125,949 788,283 313,526 - 24,139
Return on Rate Base 10,169,825 7,593,324 2,401,665 - 174,835
Rev. Related items 61,664 50,653 10,316 - 694
Net Distribution Cost 26,655,134 21,895,567 4,459,375 - 300,191
Line 33
Common Exp 10,760,000 9,376,647 1,300,910 - 82,443
Common Rev (311,281) (275,120) (34,022) - (2,139)
Subtotal Common Cost 10,448,719 9,101,527 1,266,888 - 80,304
Income Tax 167,907 132,319 32,952 - 2,637
Return on Rate Base 1,546,105 1,274,591 252,414 - 19,099
Rev. Related items 28,202 24,366 3,599 - 237
Net Common Cost 12,190,934 10,532,804 1,555,853 - 102,277
Functional Cost Components at Uniform Current Return
Line
Non-Revenue related UG Storage cost 1,092,584 800,651 264,632 - 27,301
Income Tax 98,483 72,169 23,853 - 2,461
Return on Rate Base 889,576 651,886 215,462 - 22,228
Rev. Related items 4,824 3,535 1,169 - 121
Net UG Storage Cost 2,085,467 1,528,242 505,115 - 52,110
Line
Non-Revenue related Distrib cost 15,297,697 13,463,307 1,733,868 - 100,522
Income Tax 1,125,742 930,792 183,833 - 11,118
Return on Rate Base 10,168,644 8,407,685 1,660,536 - 100,423
Rev. Related items 61,660 52,872 8,297 - 492
Net Distribution Cost 26,653,744 22,854,655 3,586,534 - 212,554
Line 45
Common Exp 10,448,719 9,101,527 1,266,888 - 80,304
Income Tax 176,775 156,240 19,321 - 1,214
Return on Rate Base 1,596,780 1,411,288 174,522 - 10,970
Rev. Related items 28,340 24,739 3,387 - 214
Net Common Cost 12,250,615 10,693,793 1,464,118 - 92,703
Functional Cost Components at Proposed Return by Schedule
Line Line
Purchased Gas Cost - Commodity - - - - -
Purchased Gas Cost - Capacity - - - - -
Other Production Costs 2,663,000 1,899,999 759,135 - 3,866
Rev. Related items 6,167 4,400 1,758 - 9
Net Production Cost 2,669,167 1,904,400 760,893 - 3,875
Line
Non-Revenue related UG Storage cost 1,092,584 800,651 264,632 - 27,301
Income Tax 108,024 61,694 40,946 - 5,384
Return on Rate Base 941,917 590,785 312,308 - 38,824
Rev. Related items 4,962 3,365 1,431 - 166
Net UG Storage Cost 2,147,487 1,456,496 619,316 - 71,674
Line
Non-Revenue related Distrib cost 15,297,697 13,463,307 1,733,868 - 100,522
Income Tax 1,135,589 795,703 315,562 - 24,324
Return on Rate Base 10,201,949 7,619,630 2,406,917 - 175,401
Rev. Related items 61,687 50,671 10,321 - 695
Net Distribution Cost 26,696,921 21,929,311 4,466,668 - 300,943
Line 1
Common Exp 10,448,719 9,101,527 1,266,888 - 80,304
Income Tax 169,387 133,564 33,165 - 2,657
Return on Rate Base 1,551,134 1,279,007 252,966 - 19,161
Rev. Related items 28,184 24,350 3,597 - 237
Net Common Cost 12,197,424 10,538,449 1,556,617 - 102,359
Exhibit No. 17
Case No. AVU-G-23-01
J. Anderson, Avista
Schedule 2, p. 5 of 8
Functional Cost Components at Uniform Requested Return
Line 10
Purchased Gas Cost - Commodity - - - - -
Purchased Gas Cost - Capacity - - - - -
Other Production Costs 2,663,000 1,899,999 759,135 - 3,866
Subtotal Production Cost 2,663,000 1,899,999 759,135 - 3,866
Rev. Related items 6,167 4,400 1,758 - 9
Net Production Cost 2,669,167 1,904,400 760,893 - 3,875
Line 11
Non-Revenue related UG Storage cost 1,092,584 800,651 264,632 - 27,301
Income Tax 99,326 72,787 24,057 - 2,482
Return on Rate Base 892,388 653,947 216,143 - 22,298
Rev. Related items 4,827 3,537 1,169 - 121
Net UG Storage Cost 2,089,125 1,530,922 506,001 - 52,201
Line
Non-Revenue related Distrib cost 15,297,697 13,463,307 1,733,868 - 100,522
Income Tax 1,135,385 938,764 185,408 - 11,213
Return on Rate Base 10,200,785 8,434,260 1,665,785 - 100,740
Rev. Related items 61,684 52,889 8,303 - 492
Net Distribution Cost 26,695,550 22,889,220 3,593,363 - 212,967
Line
Common Exp 10,448,719 9,101,527 1,266,888 - 80,304
Income Tax 178,289 157,578 19,486 - 1,225
Return on Rate Base 1,601,827 1,415,748 175,074 - 11,005
Rev. Related items 28,322 24,723 3,385 - 214
Net Common Cost 12,257,157 10,699,576 1,464,833 - 92,748
Commodity Related Rate Base 51,646,047 36,743,693 13,959,930 - 942,424
Demand Related Rate Base 47,270,427 35,935,304 10,749,719 - 585,404
Customer Related Rate Base 74,563,526 70,859,893 3,399,728 - 303,905
Cost Classifications at Current Return by Schedule
Line 27
Commodity Exp 6,998,152 4,985,333 1,883,552 - 129,267
Commodity Rev 1,530,673 1,096,387 447,143 - (12,857)
Subtotal Commodity Cost 8,528,825 6,081,720 2,330,695 - 116,410
Income Tax 460,105 251,305 192,274 - 16,525
Return on Rate Base 4,013,301 2,420,756 1,472,855 - 119,690
Rev. Related items 30,149 20,298 9,265 - 586
Net Commodity Cost 13,032,380 8,774,079 4,005,090 - 253,211
Line
Demand Exp 5,397,455 4,102,215 1,227,140 - 68,100
Demand Rev (674,637) (512,864) (153,419) - (8,355)
Subtotal Demand Cost 4,722,817 3,589,351 1,073,722 - 59,745
Income Tax 404,101 245,776 148,059 - 10,265
Return on Rate Base 3,576,004 2,367,498 1,134,159 - 74,347
Rev. Related items 20,180 14,382 5,463 - 335
Net Demand Cost 8,723,102 6,217,007 2,361,403 - 144,692
Line
Customer Exp 17,314,393 16,605,594 668,624 - 40,176
Customer Rev (1,064,036) (1,011,179) (48,518) - (4,338)
Subtotal Customer Cost 16,250,358 15,594,414 620,106 - 35,837
Income Tax 536,794 484,640 46,826 - 5,329
Return on Rate Base 5,065,695 4,668,407 358,691 - 38,596
Rev. Related items 50,671 48,108 2,378 - 185
Net Customer Cost 21,903,518 20,795,570 1,028,001 - 79,948
Total Cost 43,659,000
-
Total
Expense 29,710,000
Revenue (208,000)
Exhibit No. 17
Case No. AVU-G-23-01
J. Anderson, Avista
Schedule 2, p. 6 of 8
Subtotal Net Expense 29,502,000
Income Tax 1,401,000
Return on Rate Base 12,655,000
Rev. Related items 101,000
Net Cost 43,659,000
Cost Classifications at Uniform Current Return
Line 38
Non-Revenue related Commodity cost 8,528,825 6,081,720 2,330,695 - 116,410
Income Tax 417,086 296,737 112,738 - 7,611
Return on Rate Base 3,767,470 2,680,375 1,018,347 - 68,748
Rev. Related items 29,479 21,005 8,027 - 447
Net Commodity Cost 12,742,860 9,079,836 3,469,808 - 193,216
Line
Non-Revenue related Demand cost 4,722,817 3,589,351 1,073,722 - 59,745
Income Tax 381,749 290,208 86,813 - 4,728
Return on Rate Base 3,448,278 2,621,405 784,169 - 42,704
Rev. Related items 19,832 15,074 4,509 - 249
Net Demand Cost 8,572,677 6,516,038 1,949,214 - 107,425
Line
Non-Revenue related Cust cost 16,250,358 15,594,414 620,106 - 35,837
Income Tax 602,165 572,254 27,456 - 2,454
Return on Rate Base 5,439,252 5,169,080 248,003 - 22,169
Rev. Related items 51,689 49,472 2,077 - 140
Net Customer Cost 22,343,463 21,385,221 897,641 - 60,601
Total
Non-Revenue related cost 29,502,000 25,265,485 4,024,523 - 211,992
Income Tax 1,401,000 1,159,200 227,007 - 14,793
Return on Rate Base 12,655,000 10,470,859 2,050,520 - 133,621
Rev. Related items 101,000 85,551 14,613 - 836
Net Cost 43,659,000 36,981,095 6,316,663 - 361,242
Cost Classifications at Proposed Return by Schedule
Line
Non-Revenue related Energy cost 8,528,825 6,081,720 2,330,695 - 116,410
Income Tax 463,845 253,670 193,523 - 16,652
Return on Rate Base 4,025,296 2,429,143 1,476,076 - 120,077
Rev. Related items 30,149 20,299 9,265 - 586
Net Energy Cost 13,048,115 8,784,831 4,009,559 - 253,725
Line
Non-Revenue related Demand cost 4,722,817 3,589,351 1,073,722 - 59,745
Income Tax 407,454 248,090 149,021 - 10,344
Return on Rate Base 3,586,927 2,375,700 1,136,639 - 74,588
Rev. Related items 20,189 14,390 5,464 - 335
Net Demand Cost 8,737,387 6,227,529 2,364,846 - 145,012
Line
Non-Revenue related Cust cost 16,250,358 15,594,414 620,106 - 35,837
Income Tax 541,701 489,201 47,130 - 5,370
Return on Rate Base 5,082,778 4,684,580 359,476 - 38,721
Rev. Related items 50,662 48,099 2,378 - 185
Net Customer Cost 21,925,498 20,816,295 1,029,089 - 80,114
Total
Non-Revenue related cost 29,502,000 25,265,485 4,024,523 - 211,992
Income Tax 1,413,000 990,961 389,673 - 32,366
Return on Rate Base 12,695,000 9,489,422 2,972,192 - 233,386
Rev. Related items 101,000 82,787 17,107 - 1,106
Net Cost 43,711,000 35,828,655 7,403,494 - 478,851
Cost Classifications at Uniform Requested Return
Line 7
Non-Revenue related Energy cost 8,528,825 6,081,720 2,330,695 - 116,410
Income Tax 420,659 299,279 113,704 - 7,676
Return on Rate Base 3,779,378 2,688,847 1,021,566 - 68,965
Exhibit No. 17
Case No. AVU-G-23-01
J. Anderson, Avista
Schedule 2, p. 7 of 8
Rev. Related items 29,480 21,006 8,027 - 447
Net Energy Cost 12,758,342 9,090,851 3,473,993 - 193,498
Line
Non-Revenue related Demand cost 4,722,817 3,589,351 1,073,722 - 59,745
Income Tax 385,019 292,694 87,557 - 4,768
Return on Rate Base 3,459,177 2,629,690 786,648 - 42,839
Rev. Related items 19,841 15,081 4,511 - 249
Net Demand Cost 8,586,855 6,526,816 1,952,438 - 107,601
Line 8
Non-Revenue related Cust cost 16,250,358 15,594,414 620,106 - 35,837
Income Tax 607,322 577,156 27,691 - 2,475
Return on Rate Base 5,456,444 5,185,418 248,787 - 22,239
Rev. Related items 51,679 49,462 2,076 - 140
Net Customer Cost 22,365,803 21,406,451 898,660 - 60,692
Total
Non-Revenue related cost 29,502,000 25,265,485 4,024,523 - 211,992
Income Tax 1,413,000 1,169,129 228,952 - 14,920
Return on Rate Base 12,695,000 10,503,956 2,057,001 - 134,043
Rev. Related items 101,000 85,549 14,615 - 836
Net Cost 43,711,000 37,024,118 6,325,090 - 361,791
IDAHO GAS
Meter, Services, Meter Reading & Billing Costs by Schedule at Proposed Rate of Return
Total Sch 101 Sch 111 Sch 131 Sch 146
Services 109,424,000$ 106,138,420$ 3,199,735$ -$ 85,845$
Services Accum. Depr.(41,720,000)$ (40,467,310)$ (1,219,960)$ -$ (32,730)$
Total Services 67,704,000$ 65,671,110$ 1,979,775$ -$ 53,115$
Meters 35,021,000$ 32,021,654$ 2,880,700$ -$ 118,646$
Meters Accum. Depr.(12,168,000)$ (11,125,881)$ (1,000,896)$ -$ (41,223)$
Total Meters 22,853,000$ 20,895,773$ 1,879,805$ -$ 77,422$
Total Rate Base 90,557,000$ 86,566,883$ 3,859,580$ -$ 130,537$
Return on Rate Base @ 7.30%6,873,276$ 6,570,426$ 292,942$ -$ 9,908$
Tax Benefit of Interest Expense (779,696)$ (745,341)$ (33,231)$ -$ (1,124)$
Revenue Conversion Factor 0.78701$ 0.787006$ 0.787006$ -$ 0.787006$
Rate Base Revenue Requirement 7,742,737$ 7,401,577$ 329,999$ -$ 11,161$
Services Depr Exp 2,572,000$ 2,494,773$ 75,209$ -$ 2,018$
Meters Depr Exp 731,000$ 668,394$ 60,129$ -$ 2,477$
Services Exp 355,000$ 344,341$ 10,381$ -$ 279$
Meters Exp 833,000$ 761,658$ 68,520$ -$ 2,822$
Meter Reading 154,000$ 151,365$ 2,625$ -$ 10$
Billing Exp 2,019,000$ 1,984,448$ 34,420$ -$ 132$
Total Expenses 6,664,000$ 6,404,978$ 251,284$ -$ 7,737$
Revenue Conversion Factor 0.99621$ 0.996210$ 0.996210$ -$ 0.996210$
Expense Revenue Requirement 6,689,353$ 6,429,345$ 252,240$ -$ 7,767$
Total Customer Costs 14,432,090$ 13,830,923$ 582,239$ -$ 18,928$
Total Customers Bills 1,098,488 1,079,689 18,727 0 72
Avg Unit Cost 13.14$ 12.81$ 31.09$ 0 262.89$
Customer Related Costs Per Customer 24,894,945 23,705,333 1,107,367 0 82,244
22.66$ 21.96$ 59.13$ -$ 1,142.28$
Demand Related Costs Per Customer 11,060,514 8,158,632 2,712,085 0 189,797
10.07$ 7.56$ 144.82$ -$ 2,636.07$
Total Customer & Demand Related Costs 32.73$ 29.51$ 203.95$ -$ 3,778.35$
Exhibit No. 17
Case No. AVU-G-23-01
J. Anderson, Avista
Schedule 2, p. 8 of 8