20230810Notice_of_Application_Order_No_35885.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35885 1

Office of the Secretary
Service Date
August 10, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR AN
ACCOUNTING ORDER AUTHORIZING
ACCOUNTING AND RATEMAKING
TREATEMENT OF COSTS ASSOCIATED
WITH THE COMPANY’S INVESTMENT IN
AMI (ADVANCED METERING
INFASTRUCTURE)
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CASE NOS. AVU-E-23-07
AVU-G-23-04

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35885

On July 10, 2023, Avista Corporation, doing business as Avista Utilities (“Company”),
filed an application (“Application”) with the Idaho Public Utilities Commission (“Commission”),
requesting an order approving the following: (1) “[d]eferral of the undepreciated net book value
of existing electric meters, natural gas communicating modules . . . and Automated Meter Reading
(AMR) communication equipment[;]” (2) adoption of the depreciable lives proposed for electric
Automatic Metering Infrastructure (“AMI”) electric meters and gas digital monitors; and (3)
deferral of AMI-related depreciation expenses until their inclusion in rates through a future rate
case. Application at 1-2. The Company also requests that the Application be processed by
Modified Procedure.
The Commission now provides this Notice of Application and establishes comment
deadlines for interested persons and the Company’s reply.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company represents that its existing AMR
infrastructure has exceeded its 15-year expected service life and components of the system are out
of production or no longer supported. Accordingly, the system must be updated to avoid excessive
replacement costs and to continue providing reliable service for the Company’s electric and natural
gas operations in Idaho.
YOU ARE FURTHER NOTIFIED that the Company represents that, after conducting
a cost-benefit analysis, it determined replacing its existing AMR system with a new AMI system
would be prudent to meet the Company’s long-term customer service objectives.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35885 2
YOU ARE FURTHER NOTIFIED that the Company represents that implementing an
AMI system requires, among other things, replacement of existing electric meters, natural gas
communicating modules, and AMR communication equipment.
YOU ARE FURTHER NOTIFIED that the Company represents that, upon entering an
agreement with a vendor to replace existing AMR equipment, the old equipment will be removed
and recycled as there is no market for the volume of old equipment the switch to an AMI system
will generate. Accordingly, the Company requests authority to defer the undepreciated net book
value of the AMR equipment as a regulatory asset to avoid writing off its investment in that
equipment.
YOU ARE FURTHER NOTIFIED that the Company proposes recording the deferred
amounts as a regulatory asset in FERC Account 182.3 – Other Regulatory Assets.
YOU ARE FURTHER NOTIFIED that the Company proposes that, because the AMR
equipment is currently included in rate base earning the authorized rate of return, the AMR
equipment regulatory asset will be included in the base rate until fully amortized.
YOU ARE FURTHER NOTIFIED that the Company proposes the Commission adopt
the 7.03% depreciation rate for electric and natural gas AMI metering equipment contained in the
Company’s recent depreciation study filed in Case Nos. AVU-E-23-02 and AVU-G-23-02.
YOU ARE FURTHER NOTIFIED that the Company represents that the transition to
an AMI system will occur over multiple years but certain components of the system will be put in
service prior to completion of the entire AMI system. Because depreciation and other costs related
to the AMI system cannot be included in a general rates case until 2025, the Company request
deferral of the depreciation expense on AMI investment from the beginning of the month in which
the first transfer to plant of the AMI investment occurs until such plant is included in the
Company’s next general rates case.
YOU ARE FURTHER NOTIFIED that the Application and Attachments 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 all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35885 3
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 it will review the case through written
submissions under the Commission’s Rules of Modified Procedure Rules 201-204 of the Idaho
Public Utilities Commission’s Rules of Procedure, IDAPA 31.01.01.201-204. 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 November 1, 2023, to file written comments. Comments must be filed
through the Commission’s website or by e-mail unless computer access is unavailable. To
comment electronically, please access the Commission’s website at www.puc.idaho.gov. Click the
“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 addresses listed below. If computer access is unavailable,
then comments may be mailed to the Commission and Company at these addresses:
For the Idaho PUC:

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, ID 83714

For the Company:

David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory and Governmental Affairs
Avista Corporation
P.O. Box 3727
1411 E. Mission Avenue, MSC-7
Spokane, WA 99220-3727
[e-mail]

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35885 4

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
November 8, 2023.
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, Rules 201-204. Persons interested in submitting written comments must do so by
November 1, 2023. The Company must file any reply comments by November 8, 2023.
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.
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Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Corporation
P.O. Box 3727
1411 E. Mission Avenue, MSC-7
Spokane, WA 99220-3727
[e-mail]
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35885 5
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 10th day
of August 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND, COMMISSIONER

EDWARD LODGE, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary
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