20230829Motion for Approval of Stipulations and Settlement.pdf

MOTION FOR APPROVAL OF STIPULATION AND SETTLEMENT – AVU-E-23-02 and
AVU-G-23-02 Page 1

David J. Meyer, Esq.
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
Avista Corporation
1411 E. Mission Avenue
P.O. Box 3727
Spokane, Washington 99220
Phone: [phone]

Chris Burdin
Deputy Attorney General
Idaho Public Utilities Commission Staff
P.O. Box 83720
Boise, ID 83720-0074
Phone: [phone], Fax: [phone]

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION DBA
AVISTA UTILITIES REQUESTING
AUTHORITY TO REVISE ITS ELECTRIC
AND NATURAL GAS BOOK
DEPRECIATION RATES
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CASE NO. AVU-E-23-02
CASE NO. AVU-G-23-02

MOTION FOR APPROVAL OF
STIPULATION AND SETTLEMENT

COME NOW, Avista Corporation (“Avista” or “Company”) and the Commission Staff,
and hereby move the Commission for an Order accepting the Settlement Stipulation filed herewith.
RP 56; 272; 274. This Motion is based on the following:
1. On February 22, 2023, Avista filed an Application requesting authority to revise its
book depreciation rates. The Company requested authorization to revise its book depreciation
rates consistent with the results of the depreciation study undertaken by the Company. The
Company also requested that the Commission approve deferred accounting treatment if allocated
depreciation rates are not approved by all jurisdictions prior to September 1, 2023, resulting in a
difference between allocated depreciation expense included in Case Nos. AVU-E-23-01 and AVU-
G-23-01, and allocated depreciation expense ultimately approved in these dockets. The Company
RECEIVED
2023 AUGUST 29, 2023 3:30PM
IDAHO PUBLIC
UTILITIES COMMISSION
MOTION FOR APPROVAL OF STIPULATION AND SETTLEMENT – AVU-E-23-02 and
AVU-G-23-02 Page 2

further requested that the Application be processed by Modified Procedure through the use of
written comments. The study showed that the Idaho share of annual depreciation expense recorded
to O&M and A&G expense on the Company’s books should decrease by $1,248,960 for electric
plant and $329,186 for natural gas plant, based on the average service life rates of plant in service
as of December 31, 2021.
2. No petitions to intervene in this proceeding were filed with the Commission. Staff
and the Company, collectively, are referred to as the "Parties," and represent all of the parties in
the above-referenced cases.
3. Representatives of the Parties appeared at a Settlement Conference held on July 13,
2023, on which the Parties reached agreement on revisions to the Company’s book depreciation
rates, that led to the Settlement Stipulation.
4. The Parties also agreed to an effective date of January 1, 2024, intended to
synchronize with the proposed effective date of changes in depreciation rates in Washington and
Oregon.
5. The Parties recommend that the Commission grant this Motion and approve the
Stipulation in its entirety, without material change or condition, pursuant to RP 274.
6. The Parties request that these cases be reviewed under modified procedure rather
than a hearing under RP 202, inasmuch as all parties are in support of this Stipulation and no
evidentiary hearings are necessary to resolve disputed issues of fact.
7. Company and Commission Staff will file comments under the Modified Procedure
rules of the Commission. No reply comments are envisioned.
8. As noted in the Stipulation, the Parties agree that the Stipulation is in the public
interest and that all of its terms and conditions are fair, just and reasonable.

MOTION FOR APPROVAL OF STIPULATION AND SETTLEMENT – AVU-E-23-02 and
AVU-G-23-02 Page 3

NOW, THEREFORE, the Parties respectfully request that the Commission issue an order
in Case Nos. AVU-E-23-02 and AVU-G-23-02:
1. Granting this Motion and accepting the Stipulation, in its entirety, without material
change or condition, doing so under Modified Procedures;
2. Authorizing the Company to implement revised depreciation rates effective
January 1, 2024, consistent with the terms of the Stipulation; and
3. Authorizing the Company to defer the difference in Idaho electric and natural gas
depreciation expense reflected in base rates beginning September 1, 20231, versus actual
depreciation expense recorded on the Company’s books of record, as a result of the approved
change in depreciation rates becoming effective January 1, 2024, until a change in base rates occurs
reflecting the overall revised depreciation rates in the Company’s next general rate case.

DATED this 29th day of August, 2023.

Avista Corporation

By: /s/ David J. Meyer
David J. Meyer
Attorney for Avista Corporation

Idaho Public Utilities Commission Staff

By:
Chris Burdin
Deputy Attorney General

1 Per Case Nos. AVU-E-23-01 and AVU-G-23-01.

MOTION FOR APPROVAL OF STIPULATION AND SETTLEMENT – AVU-E-23-02 and
AVU-G-23-02 Page 3
NOW, THEREFORE, the Parties respectfully request that the Commission issue an order
in Case Nos. AVU-E-23-02 and AVU-G-23-02:
1.Granting this Motion and accepting the Stipulation, in its entirety, without material
change or condition, doing so under Modified Procedures;
2.Authorizing the Company to implement revised depreciation rates effective
January 1, 2024, consistent with the terms of the Stipulation; and
3.Authorizing the Company to defer the difference in Idaho electric and natural gas
depreciation expense reflected in base rates beginning September 1, 20231, versus actual
depreciation expense recorded on the Company’s books of record, as a result of the approved
change in depreciation rates becoming effective January 1, 2024, until a change in base rates occurs
reflecting the overall revised depreciation rates in the Company’s next general rate case.
DATED this ____ day of August, 2023.
Avista Corporation
By:
David J. Meyer
Attorney for Avista Corporation
Idaho Public Utilities Commission Staff
By:
Chris Burdin
Deputy Attorney General
1 Per Case Nos. AVU-E-23-01 and AVU-G-23-01.