20231109Application.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170

November 8, 2023

Ms. Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8, Suite 201-A
Boise, ID 83714

RE: Application of Avista Corporation for an Order Authorizing Deferred Accounting for Costs
Related to the November 2023 Williams Northwest Pipeline Outage.

Dear Ms. Noriyuki,

Enclosed for electronic filing with the Commission is Avista’s Application for an Order Authorizing
Deferred Accounting for Costs Related to the November 2023 Williams Northwest Pipeline Outage.

Please direct any question regarding this filing to me at [phone] or
[e-mail].

Sincerely,
Patrick Ehrbar
Director of Regulatory Affairs

Enclosures

CASE NO. AVU-G-23-08
RECEIVED
Thursday, November 9, 2023 12:20:25 PM
IDAHO PUBLIC
UTILITIES COMMISSION

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

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF
AVISTA CORPORATION, D/B/A AVISTA
UTILITIES, FOR AN ORDER AUTHORIZING
DEFERRED ACCOUNTING FOR COSTS
RELATED TO THE NOVEMBER 2023WILLIAMS
NORTHWEST PIPELINE OUTAGE

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CASE NO. AVU-G-23-___

APPLICATION OF AVISTA CORPORATION

Application of Avista Corporation
Case No. AVU-G-23-___ Page 1 of 3
I. INTRODUCTION
Avista Corporation, doing business as Avista Utilities (hereinafter “Avista” or
“Company”), at 1411 East Mission Avenue, Spokane, Washington, pursuant to Section 61-524
Idaho Code and Rule 52 of the Idaho Public Utilities Commission (“Commission Rules of
Procedure”), hereby applies to the Commission for an order to defer the costs associated with the
November 2023 Williams Northwest Pipeline outage that impacted Avista’s natural gas
distribution operations.
Avista is a utility that provides service to approximately 415,000 electric customers and
379,000 natural gas customers in a 26,000 square-mile area in northern Idaho, eastern Washington,
and Oregon. The largest community served by Avista is Spokane, Washington, which is the
location of its corporate headquarters. Communications in reference to this Application should
be addressed to:
David J. Meyer, Esq. Patrick Ehrbar
Vice President and Chief Counsel for Director of Regulatory Affairs
Regulatory & Governmental Affairs Avista Corporation
Avista Corporation 1411 E. Mission Avenue, MSC 27
1411 E. Mission Avenue, MSC 13 Spokane, Washington 99220-3727
Spokane, Washington 99220-3727 Telephone: [phone]
Telephone: [phone] E-mail: [e-mail]
E-mail: [e-mail] E-mail: [e-mail]

Pursuant to Commission Rule of Procedure 201, the Company requests that this filing be processed
under the Commission’s rules for Modified Procedure.

II. BACKGROUND
On November 8, 2023, Avista was notified that Williams Northwest Pipeline (Williams),
an interstate pipeline operator who transports natural gas from supply basins to the Company’s
distribution system gate stations, experienced a “dig in” by a third party. That dig in caused
Williams to shut down its 12 inch pipeline, thereby ceasing delivery of natural gas to Avista’s

Application of Avista Corporation
Case No. AVU-G-23-___ Page 2 of 3
distribution system in the Pullman/Moscow and Lewiston/Clarkston general vicinities. The
outages on Avista’s systems started in the late afternoon of November 8, 2023. At this point in
time, it is unknown how many customers will be affected, but estimates are in the range of 35,000
to 40,000 between Washington and Idaho. Nor do we know the likely duration.
For natural gas outages, Avista will be required to visit every affected premise to turn off
customers’ natural gas meters. When appropriate, Avista will then purge the lines of remaining
natural gas, refill the lines, and then visit each of the premises to turn meters back on and relight
appliances.
The Company is developing response plans, restoration activities, customer
communications and other measures to respond to this incident. Avista has also reached out
through industry partners for mutual aid – crews that will be brought in to assist Avista in its
efforts. While Avista is not responsible for the outage, it is responsible to restore service to
customers as soon as reasonably possible, consistent with safe practices. Avista does not yet have
an estimate of what the costs of this event might be and will therefore supplement this filing with
further information and estimates when it becomes available.

III. PROPOSED ACCOUNTING TREATMENT
Avista proposes to defer the costs associated with this incident for later recovery from
customers, including proceeds, if any, that result from any claims made by Avista. Avista would
seek recovery of any deferred costs, including interest at the Company’s current authorized rate
of return, through a general rate case or other proceeding. Avista will propose a method for
recovery of the deferred costs, including interest, from customers, and once that has been
approved by the Commission, the Company will transfer the asset from a deferred miscellaneous
asset in FERC Account 186.0 (Miscellaneous Deferred Debits) to a regulatory asset in FERC

Application of Avista Corporation
Case No. AVU-G-23-___ Page 3 of 3
Account 182.3 (Regulatory Asset).

IV. MODIFIED PROCEDURE
Avista believes that a hearing is not necessary to consider the issues presented herein, and
respectfully requests that this Application be processed under Modified Procedure; i.e., by written
submissions rather than by hearing. Rules of Procedure 201, et seq.

V. REQUEST FOR RELIEF
WHEREFORE, Avista requests deferral of the costs associated with the November 2023
Williams Northwest Pipeline outage that impacted Avista’s natural gas distribution operations.
Approval by this Commission of the proposed deferral treatment as described in this petition would
allow the opportunity to recover these costs in a future period.
DATED at Spokane, Washington, this 8th day of
November.

AVISTA CORPORATION
By: /s/ David Meyer
David J. Meyer
Vice President and Chief Counsel for Regulatory
and Governmental Affairs