20230315Notice_of_Application_Order_No_35709.pdf

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35709 1
Office of the Secretary
Service Date
March 15, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION, D/B/A AVISTA
UTILITIES, REQUESTING AUTHORITY TO
REVISE ITS ELECTRIC AND NATURAL
GAS BOOK DEPRECIATION RATES AND
AUTHORIZE DEFERRED ACCOUNT
TREATMENT FOR DIFFERENCE IN
DEPRECIATION EXPENSE
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CASE NOS. AVU-E-23-02
AVU-G-23-02

NOTICE OF APPLICATION

NOTICE OF
INTERVENTION DEADLINE

ORDER NO. 35709

On February 22, 2023, Avista Corporation, doing business as Avista Utilities
(“Company”), filed an application (“Application”) with the Idaho Public Utilities Commission
(“Commission”), for approval of a proposed change to electric and natural gas book depreciation
rates. The Company also requests 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 requests that the Application be processed by Modified Procedure through
the use of written comments.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company represents that it hired Gannett
Fleming, Inc. to undertake a depreciation study of its depreciable electric, gas, and common plant
in service as of December 31, 2021. As a result of that study, the Company submitted the following
table showing the existing and proposed weighted depreciation rates, by functional group, for its
Idaho electric and natural gas plants. Application at 3.
Table No. 1 Electric Weighted Group Depreciation Rates - Existing vs Proposed

Weighted Group Depreciation Rates
Functional Group Existing Proposed
Steam Production Plant 4.31% 4.17%
Hydraulic Production Plant 2.19% 2.27%
Other Production Plant 3.59% 3.09%
Transmission Plant 2.07% 2.32%
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35709 2
Distribution Plant 2.69% 2.47%
General Plant 6.55% 6.41%

Table No. 2 Natural Gas Weighted Group Depreciation Rates -Existing vs Proposed

Functional Group
Weighted Group Depreciation
Existing
Rates
Proposed
Underground Storage 1.50% 1.51%
Distribution Plant 2.34% 2.24%
General Plant 6.55% 6.41%

YOU ARE FURTHER NOTIFIED that the Company represents that the results show that
the Company’s current annual depreciation expense for its Idaho electric and natural gas service,
would be decreased by $1,248,960 and $329,186, respectively, as a result of setting the
depreciation accrual rates at the recommended level. The Company states that this recommended
change is necessary to update asset lives and existing depreciation accrual rates, which are
currently based upon a depreciation study completed in 2018. Id. at 5.
YOU ARE FURTHER NOTIFIED that the Company represents that the overall net
decrease in Idaho electric depreciation is mainly driven by changes in net salvage values and
average useful lives of production plant and distribution assets, offset by changes in salvage costs
for transmission assets. The Company states that the overall decrease in Idaho natural gas
depreciation expense is generally driven by changes in net salvage values for distribution plant
assets and increases in service lives for transportation equipment. Id. at 7.
YOU ARE FURTHER NOTIFIED that the Company represents that it is not proposing
any adjustments to the levels currently approved for the production assets at the Colstrip
production plant. Id. at 8.
YOU ARE FURTHER NOTIFIED that the Company requests that the Commission allow
the Company to implement the proposed depreciation rate revisions effective September 1, 2023,
coincident with requested rate change on September 1, 2023, in the Company’s current general
rate case filings, Case Nos. AVU-E-23-01 and AVU-G-23-01. Id. at 8-9.
YOU ARE FURTHER NOTIFIED that the Company requests that if the 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, that the
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35709 3

difference in expense be deferred for later recovery from customers in a subsequent rate
proceeding. Id. at 10.
YOU ARE FURTHER NOTIFIED that the Application and supporting documentation
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission’s office. These documents are also available on the
Commission’s website at www.puc.idaho.gov. Click on the “ELECTRIC” icon, or click on the
“NATURAL GAS” icon, select “Open Cases,” and click one of the case numbers as shown on the
front of this document.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over the
Company, its filing, and the issues pertaining to this case pursuant to Title 61 of the Idaho Code.
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 INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to
obtain parties’ rights of participation must file a Petition to Intervene with the Commission
pursuant to this Commission's Rules of Procedure 71-73, IDAPA 31.01.01.072-073. Persons who
wish to intervene as a party must file a Petition to Intervene no later than 21 days after the
date of service of this Order. Persons desiring to present their views without parties’ rights of
participation do not have to intervene and may present their comments without prior notification
to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice of
Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit
numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, Commission
Staff will informally confer with the parties to discuss a schedule to process this case and other
issues as may be raised by the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as the
Company’s representatives in this matter:

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35709 4
David J. Meyer, Esq.
Vice President and Chief
Counsel for Regulatory &
Governmental Affairs
Avista Corporation
P.O. Box 3727
1411 E. Mission Ave
Spokane, WA 99220-3727
[e-mail]

Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O. Box 3727
1411 E. Mission Ave
Spokane, WA 99220-3727
[e-mail]
[e-mail]

ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this case for the purpose
of obtaining parties’ rights of participation must file a Petition to Intervene with the Commission,
under Rules 71-73, IDAPA 31.01.01.071-073, no later than 21 days after the service date of this
Order.
IT IS FURTHER ORDERED that, after the Secretary issues a Notice of Parties, Staff will
informally confer with the parties to discuss the appropriate scheduling of this case.
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 INTERVENTION DEADLINE
ORDER NO. 35709 5

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 15th day of
March 2023.

__________________________________________
ERIC ANDERSON, PRESIDENT

__________________________________________
JOHN R. HAMMOND JR., COMMISSIONER

_________________________________________
EDWARD LODGE, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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