20180329Avista Report.pdf

Aiivtsra
Avista Corp.
141 1 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
March 28,2018
Diane Hanian, Commission Secretary
Idaho Public Utilities Commission
W. 472 Washington Street
Boise, Idaho 83720
RE: Case No. GNR-U-I8-01, Avista Report on Impact of Federal Tax Code Revisions on
Utility Costs and Ratemaking
Dear Ms. Hanian:
Pursuant to the Commission's directive in Order No. 33965 in Case No. GNR-U-18-01,
Avista Corporation dba Avista Utilities ("Avista" or "the Company") hereby submits an original
and seven copies of its report relating to the impact of the Federal Tax Code revisions on utility
costs and ratemaking, as well as its proposal for reflecting the new tax law in customer rates and
returning deferred tax benefits to customers. Included with this response, and attached for filing
with the Commission is an electronic copy of the Company's new proposed tariff Schedules 72
(electric) and 172 (natural gas), "Permanent Federal Income Tax Rate Credit," and 74 (electric)
and ll4 (natural gas), "Temporary Federal Income Tax Rate Credit".
I. PURPOSE AND BACKGROUND OF REPORT AND FILING
As noted in the Commission's Order No. 33965 dated January 17, 2018, on December
22,2017, the President signed the Tax Cuts and Jobs Act of 2017 ("TCJA") into law. A main
feature of the TCJA reduced the federal corporate tax rate from 35Yo to 2lYo, effective January 1,
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2018. This significant tax rate reduction materially decreases the current and deferred tax
expense cunently included in customers' rates.
In addition, the TCJA also resulted in excess deferred income tax assets and liabilities
(including both "protected" and "unprotected," as discussed further belowl) which have been
labeled by the Company as a permanent benefit (plant excess ADFIT) or labeled as a temporary
benefit (non-plant excess ADFIT).
The purpose of this report, as requested by the Commission, is to identiff and quantify
the TCJA changes affecting the Company's costs and its impact on ratemaking for Avista.
Included in this report, as described below, is 1) the o'permanent" and "temporary" net tax benefit
to customers from the TCJA; 2) the Company's proposal for returning these TCJA benefits to
customers; 3) the federal income tax components for the year 2017, and the federal income tax
components if the utility had been subject to the 2017 Tax Act's revisions to the tax code in
2017, including the 2lo/o tax rate; and 4) discussion of the proposed tariff schedules (included as
Attachment A), that reflect the revenue requirement impacts from the 2017 Tax Act.
II. PERMANENT AND TEMPORARY TAX BENEFITS AND
PROPOSAL FOR RETURNING BENEFITS TO CUSTOMERS
On January 1,2018, in compliance with Commission Order No. 33953 in Case Nos.
AVU-E-17-01 and AVU-G-I7-01, Avista's revised electric and natural gas base tariffs went into
effect based on rates approved in that proceeding. The effective date of these base tariffs
coincided with the TCJA effective date of January 1,2018. Given Avista's existing base rates
reflect new rates in effect as of January l, 2018, for purposes of determining "permanent"
benefits, including the effect of lowering the effective tax rate to 2lo/o, and "temporary" benefits
to be returned to customers over a shorter period of time2, the Company used its recently
approved general rate case (Case Nos. AVU-E-I7-01 and AVU-G-17-01) data and information
I Avista has two main types of excess accumulated deferred income taxes (ADFIT) as defined by the Internal
Revenue Code (IRC), "protected" and "unprotected". "Protected" excess ADFIT is generally defined as capital
assets depreciated under IRC section 167, whereby these timing differences are required to be recorded and then
reversed (i.e. normalized) over the depreciable lives of the capital assets that created the ADFIT. "Unprotected"
excess ADFIT makes up the remainder of the Company's excess ADFIT, reflecting mainly non-plant related
deferred assets and liabilities.
2 For purposes ofthis filing, "permanentoo benefits represent tax changes that impact base rates on a long-term or on-
going basis, whereas "temporary" benefits represent amounts which are a one-time calculation or temporary in
nature.
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that was reviewed by all parties in that proceeding and approved by the IPUC for the 2018 rate
effective period.3/a
Summary of Tax Benefits
As further described below, after giving effect to the TCJA changes, a summary of the
permanent and temporary tax benefits to customers is shown in the Summary Table below:
Summarv Table
Effective June 1,2018:
Permanent Reductions (Tariff 72 I 172)t z
l) Current/Deferred Tax Expense (35% to 2lYo)
2a) Plant Excess ADFIT
Permanent base rate change
Revenue Requirement (000s
ID
Natural Gas
ID
Electric
$ (l1,080)
$ (2,660)
$ (2,082)
s (474)
$ (13,740) $ (2,556)
Temporary Reductions:
Tariff74ll74 (eflective Jun 1. 2018 - May 31. 20lgf
2b) Non-Plant Excess ADFIT $ (6,302)526
(1,065)3) Deferralof Jan - Apr 2018 balances
Total Tanff74ll74
$ (5,724)
$
$
$ (12,026) $(s39)
'Tariffschedules 72 (electric) and 172 (natural gas) would remain in place until included in base rate
tariffschedules in the ne* general rate case.
'Tariffschedules 74 (electric) and 174 (natural gas) would erpire on May 31,2019 unless nec€ssary to
continue due to true-up of benefits owed customers.
To the extent that results of ongoing discussions in the Avista/Hydro One merger dockets in
Avista's jurisdictions (AVU-E-17-09lAYU-G-I7-05 in Idaho) may impact these calculations,
Avista will amend this report accordingly. In addition, after review by Staff and upon
Commission order, the Company would file an update to the electric and natural gas Fixed Cost
Adjustment (FCA) base values to appropriately reflect the base rate change included in the
Schedule 72 (electric) I 172 (natural gas) adder schedules.
3 For example, the Company updated its final approved electric and natural gas revenue requirement models,
approved in Case Nos. AVU-E-17-01 and AVU-G-17-01, to reflect a2l%o effective tax rate. The electric and natural
gas revenue requirement models, with a separate adjustment reflecting each TCJA benefit, has been included with
the workpapers filed with this response.
a The Commission requested the Company provide the federal income tax components for the year 2017, and the
federal income tax components if the utility had been subject to the 2017 Tax Act's revisions to the tax code,
including the 2lYo tax rate. As discussed further below, although the 2017 information as requested by the
Commission is provided, the Company believes it is appropriate to use its most recent general rate case information
for the rate effective period January 1,2018 through December 31,2018 to determine the TCJA benefits for
customers.
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Per the Summary Table above, the individual components are as follows:
l) Current and deferred income tax expense and conversion factor (or gross up to cover
tax expenses) - The result of lowering the tax rate from 35% to 2lYo of taxable
income, as well as the impact on the conversion factor, reduces current and deferred
tax expense. The resulting reduction on a revenue requirement basis is
approximately $11.1 million electric and $2.1 million natural gas. The Company
proposes to reflect this tax benefit by lowering customer rates through new proposed
tariff Schedules 72 (electric) and 172 (natural gas), "Permanent Federal Income Tax
Rate Credit."s
2) Excess deferred income tax asset/liabilit), - As of December 2017, defened tax
amounts were required to be revalued at the lower corporate rate (21%), resulting in
excess deferred federal income tax reserve balances. Balances associated with
regulated utility operations resulted in a balance sheet reclassification from deferred
tax to deferred regulatory assets or liabilities. This revaluation impacted both plant
(protected) and non-plant (unprotected) balances.6 As a part of this item,
amortization of deferred tax amounts that represent the difference between the
historical 35o/o rate and the revised 2lYo rate have been determined.
a) For Plant-related excess deferred income tax, the Company will amortize the
plant DFIT balances (Regulatory Liability of $106.4 million electric and $20.5
million natural gas, per Table 2 below) in accordance with the TCJA's Average
Rate Assumption Method (ARAM). The Company estimates the ARAM for
Avista results in an amortization period of approximately 36 years. As shown in
the Summary Table above, the annual permanent benefit from the plant excess
deferred amortization (the benefit will change over time as the ARAM is not
calculated on a straighrline basis), the resulting reduction on a revenue
requirement basis is approximately $2.7 million electric and $474,000 natural
gas. The Company proposes to reflect this tax benefit by lowering customer rates
through new proposed tariff Schedules 72 (electric) and 172 (natural gas),
"Permanent Federal Income Tax Rate Credit."
b) For non-plant related excess deferred income tax, as shown in the Summary
Table, the deferred tax benefit for electric to return to customers on a revenue
requirement basis is approximately $6.3 million. For natural gas, the excess
ADFIT results in a deferred tax asset, resulting in a surcharge to customers of
approximately $526,000. For the net non-plant excess ADFIT surcharge, along
5 Tariff Schedules 72 (elecric) and 172 (natural gas), "Permanent Federal Income Tax Rate Credit" would remain in
place until these tax benefits were included in base tariff schedules in the next general rate case. The Company
proposed separate tariffs (Schedules72ll72), as opposed to adjusting base rates, so as not to alter the Commission
approved base rates for year two of the Commission approved rate plan that will go into effect January 1,2019.
6 See definition of"protected" and "unprotected" below.
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with the January - May 2018 deferred benefit (see Item 3 below), the Company
proposes to return these balances to customers over a one-year amortization,
beginning May 1, z}l&,through separate (temporary) tariff Schedules 741174.1t8
3) Defenal of Januarv 1 - May 31. 2018 TCJA benefits - In compliance with IPUC
Order No. 33965, the Company began to "immediately account for the financial
benefits from the January l, 2018 tax rate reduction to 21o ," by defening the
benefits of the TCJA into a deferred regulatory liability until such time as the benefits
are reflected in customer rates and the net deferred balance has been retumed to
customers. As shown in the Summary Table above (see also Table 3 below), the
estimated deferred benefit for January I - May 31,2018 is approximately $5.7
million electric and $1.1 million natural gas. For the net January - May 2018
deferred benefit, along with the non-plant excess ADFIT surcharge (see Item 2
above), the Company proposes to retum these balances to customers over a one-year
amortization, beginning May 1,2018, through separate (temporary) tariff Schedules
74/174.e
CurrentlDeferred Tax Rate Chanse to 21%o
The primary provision of the TCJA was a reduction in the federal corporate tax rate from
35%o to 2lo/o, reducing the current and deferred tax expense currently included in customers'
rates. Avista's current retail rates, effective January 1,2018 per Order 33953 in Case Nos. AVU-
E-17-01 and AVU-G-17-01, assumed a federal corporate tax rate of 35Yo. To recognize the 2lo/o
tax rate, the Company has revised its revenue requirement calculation recently approved by the
IPUC for the calendar year 2018 to include the impact on current and deferred tax expense. The
corporate tax rate of 21%o also has an effect on the gross up to cover tax expenses (conversion
factor). Included as Attachments B and C with this response are the revenue requirement models
previously approved in Case Nos. AVU-E-17-01 and AVU-G-17-01, updated to reflect the
current tax rate of 2l%o, with all electronic workpapers provided as Attachment E.l0
As shown in the Summary Table above, the result of lowering the tax rate from 35%o to
2lo/o of taxable income, as well as the impact on the conversion factor, reduces the Company's
7 Tariff Schedules 74 (electric) and 174 (natural gas), "Temporary Federal Income Tax Rate Credit" would expire on
May 3 I , 2019 unless necessary to continue due to true-up of benefits owed customers.
8 To the extent the Commission would prefer other means or timing for returning these "temporary" benefits back to
customers, i.e., in conjunction or timing with the Company's PGA or PCA, for example, rather than through
separate tariff Schedules 7 4ll7 4 effective June I , 20 I 8, the Company would not be opposed to such treatment.
e Tariff Schedules 74 (electric) and 17 4 (natural gas), "Temporary Federal Income Tax Rate Credit" would expire on
May 3 I , 20 I 9, unless necessary to continue due to true-up of benefits owed customers.
r0 These models also show the impact of the revised tax rate of 2l% on the approved change in base rates effective
January 1,2019, year 2 of the Two Year Rate Plan. The effect of the2loh revised tax rate reduces the2019 revenue
requirement amount by $264,000 for electric and $66,000 for natural gas.
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annual revenue requirement going forward by approximately $11.1 million electric and $2.1
million natural gas. (See Attachment B (electric) and Attachment C (natural gas), Tax Reform
Adjustment #1, and supporting workpapers provided as Attachment D (.pdf) and E (electronic).)
To reflect the TCJA tax rate on current and deferred tax expense within customers' rates,
the Company proposes to reduce customer's rates through new Tariff Schedules 72 (electric) and
172 (natural gas) "Permanent Federal Income Tax Rate Credit," to be effective June 1,2078, and
remain in place until such time as the tax reduction is included in base rates in a future general
rate case.
Accumulated Deferred Federal Income Tax - Excess Tax Reserve
The Company has complied with the financial accounting requirements of Accounting
Standards Codification ("ASC") - 740 which required recognition of the effect of certain tax law
changes to be recognized in the period of enactment, in this case, December 2017. Recognition
of this tax law change at December 31, 2017, resulted in the recording of excess accumulated
deferred federal income tax (ADFIT) assets and liabilities.
The ADFIT balances as of December 3l ,2017 (included on an end-of period basis), prior
to adjustment for the TCJA corporate tax rate change to 2lo/o is as follows in Table l:
Table I
Accumulated Deferred Federal lncome Tax (ADFIT) Balances
at December3L,20L7:
Avista Utility
System
ID
Electric
ID
NaturalGas
Plant s (802,695,237)5 Qo4,862,764)s (39,392,155)
Non-Plant s (31,206,134)s (18,523,295)S (2,326,819)
As shown in Table I above, Avista has both plant ($802,685,237 system) and non-plant
($31,206,134 system) related ADFIT balances as of December 31,2017. Plant related balances
are recorded in FERC Account 282. Non-plant balances are recorded in FERC Accounts 190
and 283. In order to comply with the TCJA, these tax assets/liabilities were adjusted to be 2lYo
of the associated deferred asset/liability. The difference between the original balance recorded at
35%o and the new balance recorded at21%o, was recorded as plant or non-plant excess ADFIT.
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The amount of excess deferred income tax reserve (excess ADFIT) as described in
Intemal Revenue Code (IRC) Sec 168(i)(9XAXii) as of December 31,2017, to comply with the
TCJA as shown in Table 2 below is as follows:
Table 2
As shown in Table 2 above, Avista has two main types of excess ADFIT as defined by
the IRC,"protected" and "unprotected."
Protected excess ADFIT is generally defined as capital assets depreciated under IRC
section 767, whereby these timing differences are required to be recorded and then reversed (i.e.
normalized) over the depreciable lives of the capital assets that created the ADFIT. The utility
plant related excess ADFIT at December 31, 2017 system-wide was $320,850,109, exclusive of
the tax gross up.rl The share allocated to Idaho electric is $81 ,887,939 and to Idaho natural gas
is $15,741,873. As discussed fuither below, the plant related excess ADFIT will be amortized
over a longer period of time (approximately 36 years, following the IRS Average Rate
Assumption Method or "ARAM"). The annual revenue requirement benefit to be returned to
customers, therefore, will vary annually.l2 As shown in the Summary Table above, the 2018
annual tax benefit, on a revenue requirement basis, is approximately $2.7 million electric and
$474,000 natural gas. (See Attachment B (electric) and Attachment C (natural gas), Tax Reform
Adjustment#2, and supporting workpapers provided as Attachment D (.pd0 and E (electronic).)
tr Embedded in the protected excess number are various basis adjustments to plant that are not specifically classified
as "protected" Internal Revenue Code Section 167 amounts. The system-wide plant related deferred taxes not
specifically requiring normalization treatment is $42,956,299, leaving $277,893,810 as system-wide specifically
protected excess ADFIT. At this time the Company is unable to provide a Idaho-allocated breakdown of the plant
"unprotected" balances. Avista uses a tax depreciation system called PowerTax to calculate tax depreciation and
associated ADFIT. This system starts with Avista's book plant balances and then records what is called tax basis
adjustments due to various tax timing differences. Common tax basis adjustments are accelerated depreciation
which are protected, as well as unprotected items, such as Contributions in Aid of Construction (CIAC), AFUDC
capitalization, and tangible repairs. These unprotected tax basis adjustments are directly tied, and essentially
comingled within the basis of the underlying plant asset and associated ADFIT, and therefore are included with
"protected" plant by the Company.
t2 The 201 8 annual benefit to customers associated with the excess plant ADFIT is provided below.
Excess Deferred Federal lncome Tax Reserve at December 31,20L7
Excess Reserve
Protected (normalized plant)Unprotected (non-plant)
Avista utility
System
ID
Electric
ID
Natural Gas
Avista Utility
System
ID
Electric
ID
Natural Gas
s 320,850,109 s 81,887.939 5 15,741,873 S 13,s30,194 $ 4,770,382 s (37e,2es)
Gross-up for taxes
Regulatory Liability
S gs,ros,ogz 5 zq,szg,na 5 qJs,Aaz 5 4,0s2,9M 5 7,428,94s S (113,616)
S 416,9s9,206 S t06,477,075 5 20,4s7.275 S rz,ssg,oge 5 a,pg,Ezt S (492,911)
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To reflect the amortization of the excess plant ADFIT within customers' rates, the
Company proposes to reduce customer's rates through new Tariff Schedules 72 (electric) and
772 (natural gas) "Permanent Federal Income Tax Rate Credit," to be effective June 1,2018, and
remain in place until such time as the amortization of the excess plant ADFIT is included in base
rates in a future general rate case.
Unprotected excess ADFIT makes up the remainder of the Company's excess ADFIT,
mainly representing non-plant related deferred assets/liabilities, as well as plant-related tax basis
adjustments (included by the Company within its "protected" balances.) The utility non-plant
related excess ADFIT at December 31, 2017 system-wide was $13,530,194, exclusive of the tax
gross up. The share allocated to Idaho electric is $4,770,382 and to Idaho natural gas is a
negative balance of $379,295. On a revenue requirement basis, for electric the tax benefit to be
returned to customers is approximately $6.3 million. For natural gas, the amount to
surcharge customers is approximately $5261000.
To reflect the non-plant excess ADFIT benefit/surcharge to customers, the Company is
proposing to adjust customer's rates over a one-year period effective June 1, 2018 through May
30, 2019, through new temporary Tariff Schedules 74 (electric) and 174 (natural gas)
"Temporary Federal Income Tax Rate Credit."l3
(See Attachment B (electric) and Attachment C (natural gas), Tax Reform Adjustment
#3, and supporting workpapers provided as Attachments D (.pd| and E (electronic).)
Deferral of January I - Mav 31. 2018 TCJA benefits
Per IPUC Order No. 33965, the Company began to "immediately account for the
financial benefits from the January 1,2018 tax rate reduction to 2lYo," by deferring the benefits
of the TCJA into a deferred regulatory liability until such time as the benefits are reflected in
customer rates and the net deferred balance has been retumed to customers. The monthly
deferral to be recorded by the Company will include the tax benefit of reducing current and
deferred income tax expense to 2lo/o, as well as the monthly arnortization of the excess plant
ADFIT for the period January I,2018 - May 31, 2018.
13 The non-plant excess ADFIT benefit (electric) or surcharge (natural gas) would be combined with the January I -May 31,2018 deferred TCJA benefit, also to be refunded through Schedules 74 and 174, resulting in an overall
benefit returned to customers over the period June l, 2018 - May 30, 2019.
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Table 3 below, (see also Summary Table above), reflects the estimated amount for the
period January 1, 2018 - May 31, 2018, representing five-twelfths of the 2018 annual tax
benefit of reducing current and deferred income tax expense to 2lo/o, as well as 5 months of the
2018 annual amortization of the excess plant ADFIT.
Table 3
Estimated Excess Deferred Federal lncome Tax and Current/Deferred Tax
Expense Deferred forthe Period January - May 2018 (OOOs)
Excess ADFIT- Plant
Current/Defe rred Tax Expe nse
Total Eleferred Balance
January - ruay 20t8(2)
s
s
ID
Electric
t,to7
4,6L7
s 5,724
ID
Natural Gas
S rgz
S soa
s 1,065
As shown in Table 3, the estimated deferred benefit on a revenue requirement basis for
January - May 2018 is approximately $5.7 million electric and $1.1 million natural gas. (See
Attachment B (electric) and Attachment C (natural gas), Tax Reform Adjustments #4 - #5 and
supporting workpapers provided as Attachments D (.pd| and E (electronic).)
To return the estimated deferred balance of the tax benefit to customers, the Company is
proposing to adjust customer's rates over a one-year period effective June 1, 2018 through May
30, 2019, through new temporary Tariff Schedules 74 (electric) and 174 (natural gas)
"Temporary Federal Income Tax Rate Credit."
Although for reporting purposes here the Company has estimated these balances, the
Company will track and compare any actual deferrals recorded by the Company for the period
January 1,2018 - May 31,2018 versus that estimated.
Furthermore, with the limited amount of time since the legislation has been signed into
law, not all impacts of the TCJA on the Utility are known at this time. For example, there may
be additional interpretations and rulings from government agencies related to the law which may
result in additional adjustments up or down.la The Company, therefore, believes it necessary to
ra For example, the Company is in the process of determining the impact of FERC Docket No. EL-18-75-000
directing Avista to either (i) propose revisions to our transmission rate to reflect the change in corporate income tax
rate, or (ii) show cause why we should not be required to make such a change. A filing by Avista is due in mid-May.
At this time the Company does not know the impact on its transmission or retail customers.
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continue to track any appropriate differences through the deferred regulatory liability as a result
of 1) differences between estimated amounts for the January - May 2018 deferral returned to
customers beginning June l, 2018, versus actual amounts recorded for January through May
2018; and2) unanticipated tax effects from changes in tax legislation. This difference, up or
down, could be included in Schedul e 741174 as a true-up, if necessary, or deferred until the next
general rate case. This tracking adjustment would also provide the opportunity for Staff and
interested parties to complete their audit of Avista's filings and capture any necessary changes.
III.TAX BENEFIT RESULTS USING 2OI7 CALENDER YEAR RESULTS
Per IPUC Order No. 33965 each regulated utility "must disclose the federal income tax
components for the year 2017, and the federal income tax components if the utility had been
subject to 2017 Tax Act's revisions to the tax code, including the 2IYo tax rate." As shown in
Attachment F, in 2017 the Idaho current and deferred FIT expense was approximately $20.63
million electric and $4.57 million natural gas. If the 2017 Tax Act's revisions to the tax code,
including the 2lYo tax rate, had been in place during 2017, the revised current and deferred FIT
expense for Idaho would have been approximately $12.61 million electric and $2.83 million
natural gas. This would have resulted in a reduction in current and deferred FIT expense for
Idaho of approximately $8.02 million electric and $1.74 million natural gas, a revenue
requirement reduction (or benefit to customers) of approximately $10.77 million electric and
52.34 million natural gas.ls
As noted above, the Company believes it is appropriate to use the most recent approved
rates in effect as of January 1,2018 for rate year 2078, per Commission Order No. 33953 in Case
Nos. AVU-E-17-01 and AVU-G-17-01, to determine the tax benefit for customers beginning
January 1,2018. The results of using the current rates effective January 1,2018, as noted in the
Summary Table above, results in a current and deferred tax expense benefit of approximately
$11.08 million electric and $2.08 million natural gas. Table 4 below summarizes the difference
between updating 2017 ac1ula,l results with a 2lo/o effective tax rate, versus updating customers
current approved rates in effect January 1,2018 with a2l%o effective tax rate:
15 System amounts of the federal income tax components for the year 2017, and the federal income tax components
if the utility had been subject to 2017 Tax Act's revisions to the tax code, includingthe 2lYo tax rate, are also shown
in Anachment F, as required per Ipuc order No. 33965.
r0 | p a g e
Difference in Tax Benefit of Using 2017 Results versus Current Approved Rates
ID
Electric
ID
NaturalGas
Tax Benefit Using Actual2OLT Results
with2]i% Effective Rate
Tax Benefit Using Current Approved Rates
(Effective Jan. 1, 2018)with 2L%Eff ective Rate
Net Benefit/(Reduced Benefit) of using 2018 GRC
Approved vs20LTActual
s (10,769) s (2,337)
s (11,030) s (2,082)
s gr1 s (2ss)
As shown in Table 4 above, using the current approved rates for Rate Year 2018 per Case Nos.
AVU-E-I7-01 and AVU-G-I7-01, adjusted to reflect a2lo/o tax rate, produces similar results as
that produced if 2017 actual results had been revised using a 21o/o tax rate. However, although
the results are similar, the Company believes given that its rates have been recently reset
(January 1,2018), coincident with the Tax Act, updating Avista's current general rates using the
most current approved rates in effect as of January 1,2018 is more appropriate.
IV. PROPOSED TARIFF SCHEDULES
As previously stated, the Company is proposing new tariff Schedules 72 (electric) and
172 (natural gas) for the "Permanent Federal Income Tax Rate Credit," and 74 (electric) and 774
(natural gas) for the "Temporary Federal Income Tax Rate Credit". The Company is proposing
to spread both the permanent and temporary portions of the Rate Credits on a uniform percent of
base revenue basis for both electric and natural gas. The Company chose this method because it
generally matches how costs are presently being recovered from customers. For the spread of
the Rate Credit within each service schedule (i.e., rate design), the Company applied a uniform
cents per kWh (electric) and therm (natural gas) to the volumetric block rates by rate schedule.
The permanent portion being passed back through rate schedules 72 and 172 will remain in
effect until such time that these tax benefits are incorporated into base rates in a future general
rate case proceeding. The temporary portion being passed back through rate schedules 74 and
174 will be in effect for a one-year period beginning June l, 2018. The combined average
residential bill impact for a customer using 910 kWh's per month would be a reduction of $9.09,
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Table 4
or 9.7yo. The combined average residential bill impact for a customer using 63 therms per month
would be a reduction of $2.71, or 5.4oh.
Please direct questions on this matter to Liz Andrews at [phone].
Patrick Ehrbar
Director of Regulatory Affairs
Enclosures
12 lPage
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this 28th day of March, 2018, served the foregoing
Report in Docket No. GNR-U-18-01, upon the following parties, by mailing a copy
thereof, properly addressed with postage prepaid to:
Diane Hanian, Secretary
ldaho Public Utilities Commission
47 2 W. Washington Street
Boise, lD 83720-5983
diane. hanian@puc. idaho.qov
Larry Crowley
The Energy Strategies lnstitute, lnc.
5549 S. Clitfsedge Ave
Boise, lD 83716
[e-mail]
Dean J. Miller, Lawyer
3620 E. Warm Springs
Boise, lD 83716
deanimiller@cableone. net
Dr. Don Reading
6070 Hill Road
Boise, lD 83703
[e-mail]
Karl Klein
Deputy Attorneys General
ldaho Public Utilities Commission
472W. Washington
Boise, lD 83720-0074
karl. klein@puc. idaho.oov
Peter J. Richardson
Richardson Adams PLLC
515 N. 27th Street
Boise, lD 83702
peter@rich ardsonadams. com
Ronald L. Williams
Williams Bradbury, P.C.
P. O. Box 388
Boise, lD 83701
ron@williamsbradburv. com
Ben Otto
ldaho Conservation League
710 N.6th St.
Boise, lD 83702
botto@idahoconservation. orq
Paul Kimball
Sr. Regulatory Analyst
Attachment A
Proposed Tariffs
l.P.U.C. No.28 Sheet 72
Patrick Ehrbar, Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 72
PERMANENT FEDERAL INCOME TAX RATE CREDIT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Permanent Federal lncome Tax Rate Credit shall be applicable to all retail
customers for charges for electric energy sold and to the flat rate charges for Company-
owned or Customer-owned Street Lighting and Area Lighting Service.
This rate credit is designed to reflect the permanent benefits attributable to the
revisions of the federal income tax code caused by enactment of the Tax Cuts and Jobs Act
signed into law on December 22,2017.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be decreased by the
following amounts:
Schedule 1
Schedule 11 & 12
Schedule 21 &22
Schedule 41 - 49
0.533 I per kWh
0.568 I per kWh
0.4481 per kWh
1.513 I per kWh
Schedule 25
Schedule 25P
Schedule 31 & 32
0.307 f per kWh
0.291 fi, perkWh
0.5'10 I per kWh
TERM:
The Permanent FederalTax Rate Credit will be in effect until such time that the
permanent federaltax benefits are incorporated into base rates in a general rate case
proceeding.
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations contained in
this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment Schedule
58.
lssued March 28,2018 Effective June 't, 2018
Vgu-^-
l.P.U.C. No.28 Sheet 74
Patrick Ehrbar, Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 74
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Temporary Federal lncome Tax Rate Credit shall be applicable to all retail
customers for charges for electric energy sold and to the flat rate charges for Company-
owned or Customer-owned Street Lighting and Area Lighting Service.
This rate credit is designed to reflect the temporary benefits attributable to the
revisions of the federal income tax code caused by enactment of the Tax Cuts and Jobs Act
signed into law on December 22,2017.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be decreased by the
following amounts:
Schedule 1
Schedule 11 & 12
Schedule 21 &22
Schedule 41 - 49
0.466 p per kWh
0.4971 per kWh
0.392 I per kWh
1.324 0 per kWh
Schedule 25
Schedule 25P
Schedule 31 & 32
0.269 I per kWh
0.2541perkWh
0.447 I per kWh
TERM:
The Temporary FederalTax Rate Credit will be in effect for a one-year period
from June 1, 2018 through May 31 , 2019. Any residual balance at the end of the one-
year term will be recovered in a future general rate case proceeding.
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations contained in
this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment Schedule
58.
lssued March 28,2018 Effective June 1, 2018
By
7?lt*r*
TEMPORARY FEDERAL INCOME TAX RATE CREDIT. IDAHO
l.P.U.C. No.27 inalSheet 172
lssued by Avista Utilities
By Patrick Ehrbar, Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 172
PERMANENT FEDERAL INCOME TAX RATE CREDIT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has natural
gas service available. This Permanent Federal lncome Tax Rate Credit shall be
applicable to all retail customers taking service under Schedules 101 , 111 , 112, 131 ,
132, and 146.
This rate credit is designed to reflect the permanent benefits attributable to the
revisions of the federal income tax code caused by enactment of the Tax Cuts and Jobs
Act signed into law on December 22,2017.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be dpgteased by
the following amounts:
Schedule 101
Schedule 1'11 & 112
Schedule 131 & 132
Schedule 146
$0.03548 per Therm
$0.01854 per Therm
$0.01854 per Therm
$0.00876 per Therm
TERM:
The Permanent Federal Tax Rate Credit will be in effect until such time that the
permanent federaltax benefits are incorporated into base rates in a general rate case
proceeding.
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment Schedule
158.
lssued: March 28,2018 Effective: trune f;2OTB
v g*/*L
lssued by Avista Utilities
Sheet 174
By Patrick Ehrbar, Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 174
TEMPORARY FEDERAL INCOME TAX RATE CREDIT - ]DAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has natural
gas service available. This Temporary Federal lncome Tax Rate Credit shall be
applicable to all retail customers taking service under Schedules 101, 111, 112,
131,132, and 146.
This rate credit is designed to reflect the temporary benefits attributable to the
revisions of the federal income tax code caused by enactment of the Tax Cuts and Jobs
Act signed into law on December 22,2017.
]VIONTHLY RATE:
The energy charges of the individual rate schedules are to be decreased by
the following amounts:
Schedule 101
Schedule 111 & 112
Schedule 131 & 132
Schedule 146
$0.00748 per Therm
$0.00391 per Therm
$0.00391 per Therm
$0.00185 per Therm
TERM:
The Temporary Federal Tax Rate Credit will be in effect for a one-year period from
June 1,2018 through May 31 ,2019. Any residualbalance atthe end of the one-yearterm
will be recovered in a future general rate case proceeding.
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 158.
Effective: ffilssued: March 28,2018
v *"^t* -
l.P.U.C. No.27
Workpapers
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I
AVISTA UTILITIES
IDAHO ELECTRIC RESULTS
TWELVE MONTHS ENDED DECEMBER 3I,2016
(000's oF DoLLARS)20r8
WITH PRESENT RATES WITH 2OI8 PROPOSED RATES
Line
No.DESCRITTION
Actusl Per
Rqults
Report
Total
Adiustments
Pro Forna
Total
Proposed
Revenuc &
Related ExD
Pro Forma
Proposed
Total
b
$243,447
248
40,71 8
$2,888
(27,9sO)
d
$246,335
248
12,768
$l 2,890 (r<o rr<
t2,'768
c
REVENUES
I Total General Buiness
2 InterdepartnentalSal€s
3 Sales for Resale
4 Total Sales ofElectricity
5 Other Revenue
6 Total Electric Revenue
EXPENSES
Production md Trmsmission
7 Operating Expenses
8 Puchased Power
9 Depreciation/Amortization
l0 RegulatoryAmortization
I I Tues
12 Total Production & Trmsmission
248
284,413
43,3'.73
(2s,062\
(35,36r )
2s9,35'l
8,012
l 2,890 272.241
8,012
32'1,786
97,O7'7
50,455
t3,982
1,82s
'1,7',10
(60,423)
(30,205)
(l 8,551 )
t,235
108
868
26'1,363
66,872
31,904
\5,21',1
t,933
8,638
I 2,890 280,253
66,872
3 1,904
t5,21'1
1,933
8,638
l3
t4
l5
to
1'1
Distribution
Operating Expenses
DepreciatioilAmoniation
Tues
State Income Taxes
Total Distribution
I 71.109
to,'173
t6,202
6,423
370
(46,545)124,564
(t'77)
436
(2,95 l )
(570)
r 0,596
I 6,638
3,472
(200)661
't24,564
10,596
t 6,638
1 t1)
461
33,768
4,9'tO
6,824
23,418
t0,615
(2,6s2)
(3,262)
(r46)
(6,2s8)
0
( r,37s)
4,965
2.862
30,506
4,424
566
0
22,O43
I 5,580
210
661
46
3 l.t 67
4,870
566
0
)1 011
r 5,580
210
Customer Accouting
Customer Service & Infomation
Sales Expenses
Administrative & General
2l Operating Expenses
22 Depreciation/Amortiation
23 RegulatoryAmortiution
23 Tues
24 Total Admin. & General
25 Total Electric Expenses
26 OPERATINGINCOMEBEFOREFIT
FEDERAL INCOME TAX
27 Cment Accrual
28 D€bt lnterest
29 Defe[ed Income Taxes
30 Amortized lnvestment Tu Credit
3I NETOPERATINGINCOME
RATE BASE
PLANT IN SERVICE
32 Intmgible
33 Production
34 Transmission
35 Distribution
36 General
37 Total Plmt in Service
ACCUMULATED DEPRECIATION
38 lntangible
39 Production
40 Trmsmission
4l Distribution
42 General43 Total Accumulated Depreciation
44 NET PLANT BEFORE DFIT
45 DEFERREDTAXES
46 NET PLANTAF|ER DFIT
47 DEFERRED DEBITS AND CREDITS
48 WORKING CAPITAL
l8
l9
20
49 TOTAL RATE BASE
50 RATEOFRETURN
29
3 1,38 |6,452 37,833 29 37,862
248,052 (49,758)198,294 '736 I 99,030
79,734
( l 5,s66)
37,464
(r6e)
( r 0,665)69,069 12,t54
4,254
81.223
(4,e30)
(461)
844
(2'7\
(2O,496)
(467)
38,308
(196)
(16,242)
1461)
38,308
(r96)
$58,00s ($6,084) S5l,92r s7,900 $59,82r
$73,8r r
434,218
224,51 I
532,559
I I 6,937
$20,328
40,462
19,412
32,320
812
$94.r 39
4'14,680
?a? qr?
564,879
117 ,7 49
$94,1 39
474,680
243,923
564,8',79
|7,749
1,382,036
(t3,492)
( l 83,329)
(7O,7 tt)
( r 84,073)
(40,1 59)
(6,s45)
(5,s62)
(3,091 )
(20,e86)
(4,603)
(20,037)
($188,89r )
(73,802)
(205,059)
(44;762)
I I 3,334 1,495,370 t,495,3'70
(20,037)
( r 88,891 )
(73,802)
(205,0s9)
(44.7621
(491.'164\G0_'78',7\l)(532.55 I )
890,272
( r 80 974)
72,547
(25 48)
962,819
22\
962,819
(206.122).
709,298
(1,340)
3l,481
47,399
(84)
(667)
756,697
(1,424)
30,8 I 4
756,697
(1,424)
30,8 I 4
$739.439 $0 $786,087
Exhibit No. 12
Case Nos. AVU-E-17-01 and AVU-G-17-01
E. Andrews, Avista
Schedule 1, Page 1 of 8
NOI Requirement
Revenue Requirement
Attachment B
7.84yo
e
s46,648 $786,087
6.6U/o 't 6tyo
AVISTA UTILITIES
IDAHO ELECTNC RESULTS
TWELVE MONTHS ENDED DECEMBER 3I,2016
(000's oF DoLLARS)ADJUSTMENTSTR#I TR#2
I k
REVENUES
Total General Business
Interdepalunental Sales
Sales for Resale
Total Sales of Electricity
Other Revenue
Total Electric Revenue
EXPENSES
Production md Trmsmission
7 Operating Expenses
8 Puchased Power
9 DeFeciation/Amortiztion
l0 RegulatoryAmortiation
I I Tiles
12 Total Production & Trmsmission
$0$0 crso rr{
r 2.768
(s l 3,?40)$245,485
248
12,'168
248
272.?41
8,0t1
(13;740\258,50t
8,012
280.253
66,872
31,904
15,217
1.933
8.638
(13,740)266,513
66,8',72
3 t,904
15,217
r,933
8,638
l3
l4
15
t6
t7
Customer Accouting
Customer Service & lnfomation
Sales Expenses
Administrative & Ceneral
2l Qperating Expenses
22 Depreciation/Amortiation
23 RegulatoryAmortiation
23 Taxes
24 Total Admin. & General
25 Total Electric Expenses
26 OPERATING INCOME BEFORE FIT
FEDERAL INCOME TAX
27 Cuent Accrual
28 Debt Interest
29 Defened Income Tues
30 Amortized Investrnent Tu Credit
3] NETOPERATINGINCOME
RATE BASE
PLANT IN SERVICE
32 Intangible
33 Production
34 Trmsmission
35 Distributioo
36 General
3'1 Total Plmt in Service
ACCUMULATED DEPRECIATION
38 Integible
39 Production
40 Trmsmission
4l Distribution
42 General
43 Total Accmulated Depreciation
44 NETPLANTBEFOREDFIT
t8
t9
20
45 DEFERREDTAXES
46 NETPLANTAFTERDFIT
47 DEFERRED DEBITS AND CREDITS
48 WORKING CAPITAL
49 TOTAL RATE BASE
50 RATEOFRETURN
Distribution
Operating Expenses
Depreciation/Amortiation
Taxes
State lncome Tues
Total Distribution
NOI Requirement
Revenue Requirement
3l,t 67
4,870
566
0
22,0'12
| 5,580
210
(704)
(4e)
(31)
30,463
4,821
566
0
22.O41
I 5,580
210
3'l _862 (3t)37.83 l
| 99,030 (784)198,246
6,497
187
(14,937\
(6)
(2,O54)
(9,745)
(286)
2t,3t'7
(re6)
nt ?rl ( r 2,956)
(?;t2t)
68,26'7
(12,466)
(286)
21,3t'7
(r e6)
$8,253 s2,060 $70, r 34 ($ r 0,235)$59,899
$0 $0 $94,1 39
4'14,680
,11 0r?
564,879
\ l'7,749
$94,1 39
474,680
243,923
564,879
t17,',]49
t,495,3',70
(20,037)
(188,8er )
(73,802)
(205,059)
(44,762\
1.495,3'10
(20,037)
( r 88,891 )
(73,802)
(205,059)
(44,762)
(532.55r )(532,55 r )
1,02'1
962,819
(205,095)
962,819
(205,09s)
t,o27 757,724
(1,424)
30,8t4
75',7,724
(1,424)
30,8t4
$0 $t,027 $787,t l4 $0 $787,1 t4
8.9t%7 6tyo
(8,253) (t,982) (10,235) 10.235
(l 1,080) (2,66r )l3.140
Exhibit No. 12
Case Nos. AVU-E-17-01 and AVU-G-17-01
E. Andrews, Avista
Schedule 1, Page 2 of I
Tax Reform
FIT/DFIT
Exoense Adi
Tax Reform
Excess Tax PF
ARAM Adi
Pro Forma I
Total with Tax Reforml
Schedule 7x I
TR Proposed
Revenues &
Related Exp
Pro Forma
Proposed Totrl
with Tax Reform
Line
No.DESCRIPTION
t24,564
I 0,596
l 6.638
3,4'72
(104\
124,564
r 0,596
i 6,638
1 t1a
(241\461
Attachment B
( r 3.740)
Schshle 72
AVISTA UTILITIES
IDAHO ELECTRIC RESULTS
TWELVE MONTHS ENDED DECEMBER 3 I, 2OI 6
(ooo's oF DoLLARS)
REVENUES
Total General Business
Interdepartmental Sales
Sales for Resale
Total Sales of Electricity
Other Revenue
Total Electric Revenue
ADJUSTMENTSTR#3 TR#4 TRHS
$0$0$0I
2
3
4
5
6
38
39
40
4l
44
$0
't
8
9
l0
ll
12
l8
t9
20
EXPENSES
Production and Trosmission
Operating Expenses
Puchased Power
Depreciatior/Amortizstion
Regulatory Amortiation
Taxes
Total Production & Trosmission
Distribution
l3 Operating Exp€nses
l4 Depreciation/Amortiation
l5 Tues
l6 State Income Tues
17 Total Distribution
Customer Accomting
Customer Service & lnfomation
Sales Expenses
Administrative & General
2l Operating Expenses
22 Depreciation/Amortiation
23 RegulatoryAmortiation
23 Taxes
24 Total Admin. & General
25 Total Electric Expenses
26 OPERATING INCOME BEFORE FIT
FEDERAL INCOME TAX
27 Cwent Accrul
28 Debt lnterest
29 Defered lncome Tues
30 Amortiad Investrnent Tu Credit
3I NET OPERATING TNCOME
RATE BASE
PLANT N SERVICE
lntangible
Production
Trmsmission
Distribution
General
Total Plmt in Service
ACCUMULATED DEPRECIATION
Intangible
Production
Transmission
Disfibution
General
Total Accumulated Depreciation
NET PLANT BEFORE DFIT
32
33
34
35
36
37
45 DEFERREDTAXES
46 NETPLANTAFTERDRT
47 DEFERRED DEBITS AND CREDITS
48 WORI.IING CAPITAL
(3,439)
(e)<rl
(8s6)
(3,439)
(5.626)
(7\
(4,7'7O)
$4,7'17 $3.439 $858 $9,074
$0 $0 s0
428 418
428 428
t,090 1.090
49 TOTAL RATE BASE
50 RATEOFRETURN
$1,090 $0 $428 $1,518
NOI Requirement
Revenue Requirement
(4,694)(3,439\(82s)(8,958)
(1,108)( r 2.026)
Exhibit No. 12
Case Nos. AVU-E-17-01 and AVU-G-17-01
E. Andrews, Avista
Schedule 1, Page 3 of 8
2018
Line
Tex Reform
Excess Tax PF
Non-Plent Amort FIT/DFIT
Tax Refornr
Jan - May Deferral
Tax Reform
Jan - May Deferral
ARAM Amort TOTAL
Attachment B
(6.302)(4.61 ?\
$0
S.h..ln16 74
Df,SCRIPTION
AVISTA UTILITIES
IDAHO ELECTRIC RESULTS
TWELVE MONTHS ENDED DECEMBER 3 I, 20I 6
(000's oF DoLLARS)20r9
WITH 2OI8 PROPOSED RATES WITH 2OI9 PROPOSED RATES
Line
No.DESCRIPTION
2018
Pro Forma
Total
2019
Total
Adiustments
2019
Pro Forma
Total
2018 Proposed
Revenues &
Related Exp
2019 Proposed
Revenues &
Related ExD
2019 Pro Forma
Proposed
Totsl
dhc f so
REVENUES
I Total General Business
2 InterdepartmentalSales
3 Sales for Resale
4 Total Sales ofElectricity
5 Other Revenue
6 Total Electric Revenue
EXPENSES
Production md Trmsmission
7 Operating Expenses
8 Purchased Power
9 Depreciation/Amoniation
l0 RegulatoryAmortization
I I Tu€s
12 Total Production & Transmission
$246,335
248
t2,768
$0 $246,33s
248
t2;168
$l 2,890 94.544 s263,769
244
12,'764
259,351
8,012
$259,35 l
8,0r 2
I 2,890 4,544 2'16,785
8,012
26'1,363
66,812
3 I,904
t5,217
1,933
8,638
154
179
410
267,363
67,026
3t,904
I 5,396
't,933
9,048
I 2,890 4,544 284,79't
67,026
31,904
I 5,396
I,933
9,048
124,564
10,596
l 6,638
3,4',12
(200)
344
220
t99
(180)
10,940
I 6,858
3.67 \
(380)
125,301
10,940
16,858
3,6',11
514
743 125,307
t3
l4
i5
l6
t7
Disu-ibution
Operating Expenses
Depreciation/Amoniation
Taxes
State Income Tiles
Total Distributron
66t
l8 Customer Accosting
l9 Customer Seryice & lnfomation
20 Sales Expenses
Administrative & General
21 Operating Expenses
22 Depreciation/Amoniation
22 RegulatoryAmortization
23 Taxes
24 Total Admin. & General
25 Total Electric Expenses
26 OPERATINGINCOMEBEFOREFIT
30,506
4,824
566
22,O43
r 5,580
210
4,873
571
0
583
49
5
0
3 r ,089 661
46
29
l6
t0
3 | ,983
4,935
5'71
0
22,178
16,826
2lo
696
t,246
22,739
16,826
2t0
37,833 1,942 39,',775 29 10 39,8t 4
198,294 3,323 201,616 736 259 202,61 1
FEDERAL INCOME TAX
27 CunentAccrual
28 Debt Interest
29 Defened Income Tues
30 Amorti4d Investsnent Tax Credit
69,069
(20,496)
(467)
38,308
(r e6)
(3,323)
( 1,r 63)
(e5)
65,747 12,154
4,254
a )9s
1,499
82,1 86
(r5,906)
(s62\
38,308
(r 96)
(21,659)
(s62)
38,308
(r e6)
31 NET OPERATING INCOME
RATE BASE
PLANT IN SERVICE
32 lntmgible
33 Production
34 Trmsmission
35 Distribution
36 General
3'l Total Plmt in Service
ACCUMULATED DEPRECIATION
38 Intmgible
39 Production
40 Transmission
4l Distribution
42 General
43 Total Accmulated Depreciation44 NETPLANTBEFOREDFIT
$5r,92r ($2,065) $49,856 $7,900 $2,786 60,542
$94,1 39
414,680
243,923
564,879
tt7,'149
$8,741
6,006
a a)5
'1,276
9,038
$t 02,880
480,686
247,348
572,155
t26;18'7
sl 02,880
480,686
247,348
5',?2,155
126,'187
t,495,370 34,486 I,529,856 1,529,856
(20,037)
( r 88,891 )
(73,802)
(205,059)
(44;762\
(4,450)
(4,668)
(1,340)
(7,873)
0.345)
(24,48't)
(r93,559)
('7 s,142)
(212,932)
(46.r07)
(24,487)
(193,5s9)
(7s,142)
(212,932)
(46,r 07)
(532.55 l )(te,676) (ss2,227)(ss2,227)
962,8r 9
(206,t22\
I 4,810
(s,356)
977,629
(2t 1,478)
9'1'1,629
(21t,4't8)45 DEFERREDTAXES
46 NETPLANTAFTERDFIT
47 DEFERREDDEBITSANDCREDITS
48 WORKING CAPITAL
756,697
(1,424)
30.814
9,454 766,15t
(t,424)
30 8l 4
766,1 5 I
(1,424)
30,814
49 TOTALRATEBASE
50 RATEOFRETURN
NOI Requirement
Revenue Requirement
1.6tvo
Exhibit No. 12
Case Nos. AVU-E-17-01 and AVU-G-17-01
E. Andrews, Avista
Schedule 1, Page 4 of 8
$786,087 9,454 $795,541 $0 $0 $795,54r
Attachment B
6.6U/o 627%
e
2019 Update
Line
No,DESCRIPTION
Tax Reform
FIT/DT'IT
Exoense Adi
Tax Reform
Excess Tax PF
ARAM Adi
Pro Forma
Settlemeot Total
with Tax Reform
2018 TR Proposed
Revenues &
Related ExD
2019 TR Proposed
Revenues &
Related Exp
Pro Forma
Proposed Totsl
with Tax Reform
a k
AVISTA UTILITIES
IDAHO ELECTzuC RESULTS
TWELVE MONTHS ENDED DECEMBER 3I.2016
(000's oF DoLLARS)
REVENUES
I Total General Buiness
2 lnterdepartmentalSales
3 Sales for Resale
4 Total Sales ofElectricity
5 Other Revenue
6 Total Electric Revenue
EXPENSES
Production md Transmission
7 Operating Expenses
8 Purchased Power
9 Depreciation/Amoniation
l0 RegulatoryAmortiation
I I Tues
12 Total Production & Transmission
ADJUSTMENTSTR#6 TR#7
h
$0$0 $263,769
248
12.768
($l 3.?40)($264)$249,76s
248
2 't68
216,785
8,012
( I 3.740)(264)262,'l8t
8.0t2
284,',?97 ( l 3.740)(264)270.793
67,026
3 t,904
I 5,396
t,933
9.048
67,026
3t,904
15,396
I,933
9,048
t25,307
10,940
16,858
3,6',71
125,307
ll
l4
l5
l6
t'7
Disribution
Operating Expenses
Depreciatior/Amortiation
Tues
State [ncome Tues
Total Disribution
514 (704\4)
| 0,940
16,858
3,67 t
(204\
l8 Cutomer Accouting
l9 Customer Seruice & Infomation
20 Sales Expenses
Administrative & General
2l Operating Expenses
22 Depreciation/Amortiution
22 RegulatoryAmortiation
23 Tues
24 Total Admin. & General
25 Total Electric Expenses
26 OPERATINGINCOMEBEFOREFIT
FEDERAL INCOME TAX
27 Cuent Accrual
28 Debt Interest
29 Defened hcome Tues
30 Amoniad lnvestsnent Til Credit
3I NETOPERATINGINCOME
RATE BASE
PLANT IN SERVICE
32 Intmgible
33 Production
34 Transmission
35 Distribution
36 General
3'l Total Plilt in Service
ACCUMULATED DEPRECIATION
38 Intangible
39 Production
40 Trusmission
4l Distribution
42 General
43 Total Accmulated Depreciation
44 NET PLANT BEFORE DFIT
22;778
t6,826
210
(31 )
(t4)
(l)
3t,265
4,885
57t
0
22,',746
t6,826
210
(l )
39,814 (3t)0)39,782
202,61 I (784)(16)?0r,8t I
6,362
225
(14,937)
(l e)
(2,306)
(e,s44)
(356)
2t,06s
0 96)
82,1 86 (12,956)
(2,721)
(248\
(5t)
68,982
(r2,316)
(356)
2t,065
fl 95)
8,350 $2,325 $'11,217 ($ l 0,235)($ l e7)s60,785
$l 02,880
480,686
24'7,348
5',72,155
126,787
$r 02,880
480,686
247,348
5't2,155
126,'181
1,529,856 1,529,856
(24.487)
( l 93,559)
('75.142)
(212,932\
(46 I 07)
(24,48'7)
(193,559)
(7s,142)
(212,932)
(46.107)
(552.227\( 552 22'7\
3,207
97'7,629
<208,2'7 t)
977,629
(208,27 t\45 DEFERREDTAXES
46 NETPLANTAFTERDFIT
47 DEFERREDDEBITSANDCREDITS
48 WORKING CAPITAL
3,207 '769,358
(t,424)
30,81 4
769,358
(1,424)
30,814
49 TOTALRATEBASE
50 RATEOFRETURN
NOI Requirement
Revenue Requirement
$0 $3,207 $798,748 $0 $o $798,748
8.92o/o 7 6t%
(8,350)(2,081 )(10,43 r )10,235 197
t3,140 264
Exhibit No. 12
Case Nos. AVU-E-1 7-01 and AVU-G-1 7-01
E. Andrews, Avista
Schedule 1, Page 5 of 8Attachment B
(r 1,2r0)(2,794\(r 4,004)
3r,983 (70/.)
4,935 (49)
57t
0
$0$0
AVISTA UTILITIES
Calculation of General Revenue Requirement
Idaho - Electric System
TWELVE MONTHS ENDED DECEMBER 3I, 2OI6
2018 2019
Incremental
2019
Line (000's of
Dollars)
(000's of
Dollars)
(000's of
Dollars)No.Description
I
2
3
4
5
6
7
8
9
Pro Forma Rate Base
Proposed Rate ofRetum
Net Operating lncome Requirement
Pro Forma Net Operating Income
Net Operating Income Deficiency
Conversion Factor
Revenue Requirement
Total General Business Revenues
Percentage Revenue Increase
2 Proposed Rate ofReturn
3 Net Operating Income Requirement
4 Pro Forma Net Operating Income
5 Net Operating Income Deficiency
6 Conversion Factor
7 Revenue Requirement
8 Total General Business Revenues
9 Percentage Revenue Increase
$786,087
7.61%
$79s,541
7.61%
$s9,821
$sl,92r
$60,s41
$49,8s6
$7,900
0.6 r 288
$ 10,68s
0.61288
st7,434
$2,785
0.61288
s2s9,473$246,583
5,23v"1.750h
Line
No.
Pro Forma Settlement with Tax Reform Incremental
201920182019
(00's of (00's of (fi)0's of
Description Dollars) Dollars) Dollars)
Pro FormaRate Base $787,1 14 $798,748
7.61%7.6t%
$59,899 $60,78s
$70.r 34 $71,217
($lo,23s) ($10,432)
0.74489 0.74489
($ I e7)
0.74489
l-?5i3r4-'q-l ($r4,oo4)E:@
$259,473 $245.733
-s.30%-0.llv"
sl2
Attachment B Page 6 of I
AVISTA UTILITIES
Pro Forma Cost of Capital
Idaho - Electric System
Proposed:
Component
Capital
Structure
ProForma
Cost
ProForma
Weighted
Cost
Total Debt
Common
Total
50.00%
50.00%
5.72Yo
9.s0%
2.860/o
4.7 5o/o
100.00%/ .b l'/o
Attachment B Page 7 of 8
Line
No.
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Electric System
TWELVE MONTHS ENDED DECEMBER 3I,2016
Description
2
Revenues
Expenses:
Uncollectibles
Commission Fees
Idaho Income Tax
Total Expenses
Net Operating Income Before FIT
Federal Income Tax @35%
REVENUE CONVERSION FACTOR
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Electric System
TWELVE MONTHS ENDED DECEMBER 3I,2016
With Tax Reform
Description
Filed
0.003746
Factor
1.000000
0.003563 Revised
0.00227s
0.051264
0.0s7102
0.942898
0.330014
0.612884
Factor
3
4
5
6
7
8
Line
No.
2
J
4
5
6
7
8
Revenues
Expenses:
Uncollectibles
Commission Fees
Idaho lncome Tax
Total Expenses
Net Operating Income Before FIT
Federal Income Tax @21%o
REVENUE CONVERSION FACTOR
l.000000
Filed
0.003746 0.003563 Revised
0.002275
0.051264
0.0s7102
0.942898
0. l 98009
0.744889:
Exhibit No. 12
Case Nos. AVU-E-17-01 and AVU-G-17-01
E. Andrews, Avista
Schedule 1, Page 8 of IAttachment B
I
AVISTA UTILITIES
IDAHO NATURAL GAS RESULTS
TWELVE MONTHS ENDED DECEMBER 3I,2016
(000's oF DoLLARS)
20r8
WITH PRESENT RATES WITH 2OI8 PROPOSED RATES
Line
No.DESCRIPTION
Actual Per
Results
ReDort
Totsl
Adiustments
2018
Pro Forma
Total
Proposed
Revenues &
Related Exp
Pro Forma
Proposed
Total
c e
REVENUESI Total Gensal Business
2 Total Trosponation
3 Other Revenues
4 TotalGmRevenues
$61,r 84
486
33,083
$ (2 l,036)
t8
(33.0r3)
$40,148
504
70
$l,l 80 $41.328
504
70
94,753 (54,03 l)40,'122 I,t 80 41,902
EXPENSES
Production Expenres
5 City Gate Purchres
6 Purchased Gu Expense
7 Net Nat G6 Storage Trans
8 Total Production
52,496
455
914
(52,496)
(l 8)
(914)
437 431
53,865 (53,428)437 437
9
t0
tl
t2
Underground Storage
Operating Expenses
Depreci ati on
Tues
Total Underground Storage
407
206
88
(0)
t5
3t
407
221
ll9
407
22t
il9
701 46 747 741
t3
t4
l5
t6
l7
Distribution
Operating Expenses
Depreciation
Tees
State lncome Tues
Total Distribution
6,t29
4,901
2,535
60
218
530
(833)
53
6,34'7
5,43t
t,702
ll3 60
6,34',1
5,43 I
't,702
t'13
13,625
3,0r0
1,539
(32)I 3,593
2,545
382
60
4
13,653
2,549
382
l8
l9
20
Customer Accounting (46s)
(1,r57)Customer Servie & Infomation
Sales Expenses
Administrative & General
2l Op€rating Expenses
22 Depreciation/Amortiation
23 RegulatoryAmortizations
24 Tdes
25 Total Admin. & General
26 Total Go Expense
5,696
2,666
(30)
(455)
I,154
(l)
5,241
3,820
(3 l)
5,244
3,820
(3t)
8,332 698 9,030 3 9,033
8l,o'12 (54,337)26,73s 67 26,802
27 OPERATING INCOME BEFORE FIT 13,68 t 306
42
(u:)
(4)
I 3,987 I,t r3 | 5,100
FEDERAL INCOME TAX28 CutrentAccrual
29 Debt Interest30 Defered FIT
3l AmortITC
(el0)
4,626
(8)
(868)
(65)
4,626
(12)
390 (478)
(65)
4,626
(t2)
32 NETOPERATINGINCOME $9.973 $333 $r 0,306 $"t23 $l 1,029
RATE BASE: PLANT IN SERVICE
33 Underground Storage34 Distribution Plut
35 General Plat
36 Total Plat in Seryice
$l 1,228
I 98,502
34,820
$561
13,624
4,654
$t 1,789
212,126
39,414
$t 1,789
212,t26
39,474
244,550 I 8,839 263,389 263,389
ACCUMULATED DEPREC/AMORT
37 Underground Storage
38 Distribution Plat
39 General Plmt
40 Total Accum. Depreciation/Amon.
4I NETPLANT
42 DEFERREDFIT
43 Net Pl@t After DFIT44 GASINVENTORY
45 CAINONSALEOFBUILDING
46 OTHER
47 WORKING CAPITAL
(4,3 I l)
(66,440)
(r0.045)
(274)
(6,566)
(2.319\
(4.585)
(73,006)
(t2,364\
(4,s85)
(73,006)
fi2.364\
(80.796)(9.1 59)(89,955)(89,95s)
163,',l54
(35,280)
9,680
(3.627)
173,434
(38,907)
173,434
(38,907)
t28,474
3,809
6,053 134,527
3,809
134,527
3,809
(6e)(69)(6e)
44'1
48 TOTAL RATE BASE
49 RATEOFRET1JRN
$l 38,432 $1u,932 $0 $144,932
't.tt%7.6tyo Exhibit No. 12
NOI Requirement
Case Nos. AVU-E-17-01 and AVU-G-17-01
E. Andrews, Avista
Schedule 2, Page 1 of 8
Revenue Reouirement
Attachment'C
7.20Yo
$6,500
AVISTA UTILITIES
IDAHO NATURAL GAS RESULTS
TWELVE MONTHS ENDED DECEMBER 3I,20I6
(ooo's oF DoLLARS)
ADJT]STMENTS
TR#I
c h
REVENUES
Total General Business
Total Trmsportation
Other Revenues
Total Gas Revenues
$4r,328
504
$ (2,556)s38,772
504
70
41,902 (2,556)39,346
EXPENSES
Production Expenses
City Gate Purchases
Purchased Gas Expense
Net Nat Gu Storage Tras
Total Production
437 437
43't 437
9
l0
ll
t2
Underground Storage
Operating Expenses
Depreciation
Taes
Total Underground Storage
40't
221
ll9
40'1
221
ll9
'147 747
l3
t4
l5
t6
l7
l8
l9
20
Distribution
Operating Expenses
Depreciation
Taes
State Income Taes
Total Distribution
6,347
5,43 I
1,702
t73 (r3r)
6,347
5,43 r
1,702
42
r 3,653
? t40
382
(r3r)13,522
2,540
382
Customer Accounting (e)
Customer Service & Infomation
Sales Expenses
Administrative & General
2l Operating Expenses
22 Depreciation/Amortization
23 RegulatoryAmonizations
24 Tiles
25 Total Admin. & General
26 Total Gas Expense
5,244
3,820
(3 l)
(6)5,238
3,820
(3 t)
I 033 (6',|9 021
27 OPERATING INCOME BEFORE FIT
- - 26,802 (t46\ 26,656
l5,lo0 (2,4t0) t2,690
FEDERAL INCOME TAX
28 CurentAccrual29 Debt Interest
30 Defened FIT
3l Amon ITC
l9l
(l.769)
(287)
(40)
) 4A)
(t 2)
(s06)(7e3)
(40)
2,492
(12)
(t)
(366)
32 NETOPERATINGINCOME 1.55 I $367 $12.947 ($r.904) $l 1,043
RATE BASE: PLANT IN SERVICE
33 Underground Storage
34 Distribution Plat
35 General PIot
36 Total Plat in Service
$l t,789
2t2,126
39,474
$l 1,789
2t2,126
39,474
263,389 263,389
ACCUMULATED DEPREC/AMORT
37 Underground Storage
38 Distribution Plat
39 General Plat
40 TotalAccum. Depreciation/Amort.
4I NETPLANT
42 DEFERREDFIT
43 Net Plmt After DFIT
44 GAS INVENTORY
45 GAIN ON SALE OF BUILDING
46 OTHER
47 WORKING CAPITAL
(4,585)
(73.006)
(12,364)
(4,585)
(73,006)
(12,364)
(89,955)(89,955)
t83
t'13.434
(38,724)
1'13,434
(38,724\
r83 t34,710
3,809
134,710
3.809
(6e)(6e)
6,665 6.665
48 TOTAL RATE BASE
49 RATE OF RETURN
$0 $t83 t45,1 15 $0 $t45,1 t5
Exhibit No. 12
and AVU-G-17-01
E. Andrews, AvistaNOI Requirement
8.92vo '1.61%
(2,082) (474) (2,556)
Tax Reform
Excess Tax PF
ARAM Adi
Pro Forma
Settlement Total
with Tax Reform
TR Proposed
Revenues &
Related Exp
Pro Forma
Proposed Total
with Tax Reform
Line
No.DESCRIPTION
Tax Reform
F'IT/DFIT
Expense Adi
Revenue Reouirement
Attachment C
2.556
Schedule 2, Page 2 of I
I
2
3
4
AVISTA UTILITIES
IDAHO NATURAL GAS RESULTS
TWELVE MONTHS ENDED DECEMBER 3 I.2OI6
(000's oF DoLLARS)
ADJI-ISTMENTS
REVENUES
I Total General Business
2 Total Trosportation
3 Other Revenues
4 Total Gas Revenues
EXPENSES
Production Expen*s
5 City Gate Purchces
6 Purchased Gd Expense
7 Net Nat Gas Storage Trans
8 Total Production
9
t0
II
t2
Underground Storage
Operating Expenses
Depreciation
Tdes
Total Underground Storage
l3
l4
l5
t6
t't
Distribution
Operating Expenses
Depreciation
Taes
State Income Tues
Total Distribution
1 8 Customer Accounting
l9 Customer Service & Infomation
20 Sales Expenses
Administrative & General21 Operating Expenses
22 Depreciation/Amortization
23 RegulatoryAmortizations
24 Tues
25 Total Admin. & General
26 Total G6 Expense
27 OPERATING INCOME BEFORE FIT
F'EDERAL INCOME TAX
28 CurentAccrual29 Debt Interest
30 Defened FIT
3l Amon ITC
(il6)(646)
(2)
22'7
(l)
3'19
(0)
(152)
32 NETOPERATINGINCOME ($378) $646 $t 53 $4ll
RATE BASE: PLANT IN SERVICE
33
34
35
36
Underground Storage
Distribution Plilt
General PIat
Total Plmt in Service
$0
ACCUMULATED DEPREC/AMORT37 Underground Storage
38 Distribution Plmt39 Ceneral Plant
40 Total Accum. Depreciation/Amort.4I NETPLANT
42 DEFERREDFIT
43 Net Plmt After DFIT
44 GAS INVENTORY
45 GAIN ON SALE OF BUILDING
46 OTHER
47 WORKING CAPITAL
16 76
76 '16
t76 1'76
48 TOTAL RATE BASE
49 RATE OF RETURN
t'76 $0 s76 252
NOI Requirement , , Case Nns AVU-E-17-01
Exhibit No. 12
and AVU-G-17-01
E. Andrews, Avista392(646)(r47)(402)
2018Tax Reform
Excess Tax PF
Tax Reform
Jnn - May Deferral
Tax Reform
Jan - May DeferralLine
Revenue Requirement
Attachment C
526 (868)(197)(539)
Schedule 2, Page 3 of 8
o
Schedulp l7l
NFS(.RIPTION TOTAI,
AVISTA UTILITIES
IDAHO NATURAL GAS RESULTS
TWELVE MONTHS ENDED DECEMBER 3I,2016
(000's oF DoLLARS)
2Al9
WITH 2OI8 PROPOSED RATES WITH 2OI7 PROPOSED RATES
Line
No.DESCRTPTION
20r8
Pro Forma
Totd
2019
Total
Adiustments
20r9
Pro Foma
Tolrl
2018 Proposed
Revenues &
Related Exp
2019 Proposed
Revenues &
Related Exp
2019 Pro Forma
Proposed
Total
q b c I
REVENUES
Total General Business
Total Tresponation
Other Revenues
Total Go Revenua
$40,t48
504
'to
$40,r48
504
70
$r,1 80 $1, I 32 $42,460
504
70
40,722 40,722 I,180 1,132 43,034
EXPENSES
Production Expenses
City Gate Purchases
Purchased Gu Expense
Net Nat Gs Storage Trans
Total Production
437 444 444
43'l 444 444
40't
224
128
9
t0
ll
t2
Underground Storage
Operating Expen*s
Depreciation
Tues
Total Underground Storage
40'1
221
n9
407
224
128
'147 t2 -t 59 '759
l3
t4
t5
l6
t7
Distribution
Operating Expenses
Depreciation
Taes
State Income Tues
Total Distribution
6,34'.1
5,43 I
1,702
ll3
84
53
t12
(s2\
6,431
5,484
t,814
6t 60 58
6,431
5,484
1,8t4
t79
r 3,593
2,545
382
t9't
36
3
50
660
t3,790 60
4
58
4
r 3,908
2,589
385
l8
l9
20
Customer Accounting
Customer Service & lnfomation
Sales Expenses
Administrative & General
2l Operating Expenses
22 Depreciation/Amortiation
23 RegulatoryAmortizations
24 Taes
25 Total Admin. & General
26 Total G6 Expense
5,24t
3,820
(3 l)
5,291
4,480
(3 l)
5,297
4,480
(3 l)
9,030 7to 9,140 9,746
26,735 965 27,'tOO 67 65 27,832
27 OPERATING INCOME BEFORE FIT I 3,987 (e65)13,022 I,l l3 1,067 t5,202
FEDERAL INCOME TAX
28 Cunent Accrual
29 Debt Interest
30 Defened FIT
3l Amon ITC
(868)
(65)
4,626
02)
(338)
(t0)
(r,20s)
(75)
4,626
(l 2)
390 373 (442)
(75)
4,626
(12)
32 NET OPERATING INCOME $10.306 ($617)$9.689 $723 $694 I 1,106
RATE BASE: PLANT IN SERVICE33 Underground Storage
34 Distribution Plmt35 General PIot
36 Total Plot in Seryice
$t 1,789
39,474
$204
2,t39
3,832
$l 1,993
2t4,265
43.306
$r r,993
214,265
43,306
2$lag 6,175 269,564 269,564
ACCUMULATED DEPREC/AMORT
37 Underground Storage
38 Disbibution Plilt
39 General Plmt
40 TotalAccum. Depreciation/Amort.
4I NETPLANT
42 DEFERREDFIT
43 Ner Plill Aner DFIT
44 GASINVENTORY
45 GAIN ON SALE OF BUILDING
46 OTHER
47 WORKING CAPITAL
(4,s8s)
(73,006)
(r2.3641
(108)(4,693)
(7s,285)
03.827)
(4.693)
(1s,285)
(13.82'1)
(2,279)
(1.463)
(89.9s5)(3.850)(93.80s)(93.80s)
173,434
(38,907)
,1r<
(r,317)
175,'159
(40.2241
175,759
(4O,224)
134,527
3,809
t,008 135,535
3,809
t35,535
3,809
(6e)(6e)(6e)
6,665
48 TOTAL RATE BASE
49 RATEOFRETURN
$144.932 $145.940 $0 $145,940
7.6t%o
Exhibit No. 12
Case Nos. AVU-E-17-01 and AVU-G-17-01
E. Andrews, Avlsta
Schedule 2, Page 4 of 8Attachment C
7.l%
$1.008
6.64Yo
7
7
0
3
9
2,58 |,r:
J 3
6,665 - 6,665
$0
AVISTA UTILITIES
IDAHO NATURAL GAS RESULTS
TWELVE MONTHS ENDED DECEMBER 3I.2OI6
(000's oF DoLLARS)
REVENUES
I Total General Business
2 Total Trasportation
3 Other Revenues
4 Total Ga Revenues
EXPENSES
Production Expenses
5 City Gate Purchces
6 Purchoed Gs Expense
7 Net Nat Gas Storage Trans
8 Total Production
ADJUSTMENTS
1 R#6
2019 Update
h k
Pro Form{
Proposed Toisl
$ (67) $39,837
(6'7)40,4 t I
$42,460
43,034
$ (2,5s6)
(2,556\
504504
444444
Underground Storage
Operating Expenss
Depreciation
Tues
Total Underground Storage
Distribution
Operating Expenses
D€preci ati on
Tdes
State Income Tues
Total Distribution
444
40'l
224
128
444
407
224
128
9
t0
il
t2
l3
14
l5
l6
\7
759
(3)
759
6,431
5,484
1,814
45
6,431
5,4E4
1,814
179 (l3l)
13,908
2,589
385
(l3l )
(e)
(3)13,774
2,580
385
I 8 Customer Accounting
l9 Customer Seryice & Infomalion
20 Sales Expenres
Administrative & General2l Operating Expenses
22 Depreciatior/Amortiation
23 RegulatoryAmoniations
24 Tues
25 Total Admin. & General
26 Total Gs Expense
27 OPERATING INCOME BEFORE FIT
5,29'.1
4,480
(31)
(6)5,29t
4,480
(3 t)
- - 9,746 (61 9.140
27,832 (146)(3)27,683
FEDERAL INCOME TAX
28 Cunent Accrual
29 Debt Interest
30 Defened FIT
3l Amon ITC
177
30
(t,769)(433)
15,202
(26s)
(49)
2,424
(12)
(2,410)
(s06)
(64)12,728
(14)(785)
(4e)
2,424
( t2)
(3)
32 NETOPERATINGINCOME
RATE BASE: PLANT IN SERVICE
33 Underground Slorage
34 Distribution Plmt
35 Ceneral PIot
36 Tohl PIot in Seruice
ACCUMULATED DEPREC/AMORT
37 Underground Storage38 Distribution Plmt
39 General Plmt
40 Total Accum. Depreciatior/Amort.
4I NETPLANT
42 DEFERREDFIT
43 Net Plot After DFIT44 GAS INVENTORY
45 GAIN ON SALE OF BUILDINC46 OT}IER
47 WORKINC CAPITAL
1.562 $436 $l 3.104 ($r.e04)($s0)$ll,r50
$l t,993
214,265
43,306
$r r,993
214,2.65
43.306
269,564
(4,693)
(7s,28s)
fl3 827t
269,564
(4,693)
('15,285)
0 3.827)
(93 80s)(93.805)
582
175,759
(39.642\
115,',l59
(39.642).
582 136,1 l7
3,809
t36,1 I 7
3,809
6,665
(6e)(6e)
48 TOTALRATEBASE
49 RATEOFRETURN
$0 $146.522 $0 $146,522
't .6to/o
50 No. 12
7-01
E. Andrews, Avista
Schedule 2, Page 5 of 8
Tsx Reform
Excess Tax PF
ARAM Adi
Pro Forma
Se(tlcment Total
with Tax Reform
2018 TR Proposed
Rwenues &
Relsted ExD
2019 TR Proposed
Rwenues &
Related Exo
Line
No.DESCRIPTION
Tax Reform
FIT/DFIT
Expense Adi
Attachment C
(1,562)
$582
8.94%
$0
I
AVISTA UTILITIES
Calculation of General Revenue Requirement
Idoho - Natural Gas
TWELVE MONTHS ENDED DECEMBER 3I,2016
Description
Pro Foma Rate Base
Proposed Rate ofReturn
Net Operating lncome Requirement
Pro Forma Net Operating Income
Net Operating lncorne Deficiency
Conversion Factor
Revenue Requirement
Total Base Distribution Revenues
Percentage Base Distribution Revenue Increase
Total kesent Billed Revenue
Percentage Billed Revenue Increase
Pro Forma Final with Tax Reform
Description
Pro Forma Rate Base
Proposed Rate ofRetum
Net Operating Income Requirement
Pro Forma Net Operating Income
Net Operating lncome Deficiency
Conversion Factor
Revenue Requirement
Total Base Distribution Revenues
Percentage Base Distribution Revenue lncrease
Total Present Billed Revenue
Percentage Billed Revenue Increase
$144,932 $ 145,940
7il%7.61%
$l I,029 Sl 1,106
$10,306 $ 9,689
$723 $l,4r7 $693
0.61288 0.61288 0.61288
$1,180 $2,313 $r,r32
$40,652 $4 I ,832
2.90"2.1loh
$6 I,255 $62,435
1.93'Y"t.81,'/.
2018 z0l9
Incremental
2019
2018 20r9
Line
No.
l0
il
(000's of
Dollars)
(000's of
Dollars)
(000's of
Dollars)
2
3
4
5
6
7
8
9
(000's of
Dollars)
(000's of
Dollars)
(000's of
Dollars)
$145,1 l5
7 .610/o
$146,522
7.6tyo2
3
4
5
6
7
8
9
t0
ll
$l I,043
$12,947
$ll,t50
$13,104
($r,904)
0.14489
($2,ss6)
$41,832
-6.llo/"
$62,43s
($s0)
0.74489
$39,276
-0.17'h
$59,879
($1,e54)
0.74489
Attachment C
Line
No.
-@
-4.09.h -0.tly.
Page 6 of 8
Incremental
20t9
AVISTA UTILITIES
PRO FORMA COST OF CAPITAL
Idaho - Natural Gas
Proposed:
Component
Capital
Structure
Pro Forma
Cost
Pro Forma
Weighted
Cost
Total Debt
Common Equity
Total
s0.00%5.72%2.85%
50.00%9. s0%4.7s2
100.00%7.61%
Attachment C Page 7 of 8
Line
No.
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Natural Gas System
TWELVE MONTHS ENDED DECEMBER 31,2016
Description
Revenues
Expenses:
Uncollectibles
Commission Fees
Idaho State Income Tax
Total Expenses
Net Operating Income Before FIT
Federal Income Tax @ 35o/o
REVENUE CONVERSION FACTOR
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Natural Gas System
TWELVE MONTHS ENDED DECEMBER 31,2016
With Tax Reform
Description
Revenues
Expenses:
Uncollectibles
Commission Fees
Idaho State Income Tax
Total Expenses
Net Operating Income Before FIT
Federal Income Tax @ 2l%o
REVENUE CONVERSION FACTOR
1.000000
0.003564
0.002275
0.0s1264
0.0s7103
0.942897
0. I 98008
_0J44889_
Exhibit No. 12
Case Nos. AVU-E-17-01 and AVU-G-17-01
E. Andrews, Avista
Schedule 2, Page 8 of B
Factor
2
J
4
5
6
7
8
1.000000
0.003s64
0.00227s
0.051264
0.057103
0.942897
0.330014
Line
No.
0.612883
Factor
2
3
4
5
6
7
8
Attachment C
I
Elrr*r; cS,*t &JAIJI'Avista Utilities
IPUC Case No. GNR-U-18-01
Tax Reform Benefit Report
Pre-Tax Net lncome
2 Current Accrual
3 Debt lnterest
4 Deferred lncome Taxes
5 Flow Through DFIT
6 Amortized ITC
7 Total lncome Tax
8 Net Operating lncome
9 Rate Base
10 Proposed Rate of Return
11. Net Operating lncome Requirement
72 Net Operating lncome Deficiency
13 Conversion Factor
t4 Revenue Requirement
s21,403 $13,150 (s8,253)
In x 't
Tax Cuts and Jobs Act (TCJA) Adjustments to AVU-E-17-01 Approved
Results of Operations and Revenue Requirement
TR#l Tax Reform FIT/DFIT Expense Adjustrnent
Values Derived from 2018 Pro Forma Proposed Total including Approved Lltl20L8 Revenue lncrease
and associated Conversion Factor recalculated with FIT rate ol2L%.
Line
1
Electric Pro
Forma before
Tax Reform
581,223
Electric Pro
Forma after Tax
Reform
s81,223
TR#1
Adjustment
SO
'L6,242)
(467)
37,342
966
(1e6)
(.9,7451
(280)
22,445
966
(1s6)
6,497
187
(14,9371
s59,821
S786,087
7.610/o
Ss9,82t
So
0,5L2884
$o
s68,074
s785,087
7.6L%
S59,821
(s8,253)
0.744889
(s11,080)
S8,2s3
So
5o
(s8,253)
TRB2
15
15
77
(s11,080)
Tax Reform Excess ADFIT PF ARAM Amortization
lnformation derived from tax department PowerTax program results.
See workpaper file "ADFIT Plant lmpact to Rate Base lD.xlsx"
This workpaper shows the derivation of the seryice and jurisdictional assignment
of ARAM impacts for 2018 through 2021 and the Average Monthly Average Calculation.
Annual Monthly
2018 Deferred FIT Expense lmpact (2,054) (17L1
TR#2 Adjustments
2018 DFIT Expense (52,054)
2018 AMA ADFTT $t,OZt
1) TCJA Adjustment Summary lD.xlsx / Electric
Attachment D Page 1 of23 Page 1
{-l-rfu;c>
nloP t'l
TRfl3
18
19
20
2t
Tax Reform Excess ADFIT PF Non-Plant Amortization (1year amortization)
See workpaper file "REVISED- Deferred lnventory Rollforward 2Ot7LZ 01,16,18 before 21% NSJ.xlsx"
Rate Base AMA calculation see workpaper file "ADFIT Non-Plant lmpact to Rate Base lD.xlsx"
amortization
lD Electric period
2Ot7.LzExcess Deferred Tax Liability {4,7701 L year " lSO,llOl Expense Adj
Subset included in Rate Base
Amort Rate Year 05,2018 - 05.2019
05.2019 Ending Balance
lD Electric
(3,439)
Deferral Period 0r.2018 - 04.2018 AMA ADFIT lmpact
7/3L/2018
2128/2018
3l3t/2018
4/30l2Ot8
sl3t/2018
Average Monthly Average Rate Base lmpact
Ending Balance Monthly Average
L1t 86
342 257
513 428
68s 599
855 770
428
lS2,tts1
/it,oso Rate Base Adj
/l$l,tlsl Expense Adj
Rate Year Total/ {Sase) Expense Adj
y $ez8 nateBaseAdj
(2,t79l,
2,179
1 year
AMA impact
TRf4 Tax Reform Excess January through May 2018 Deferral FIT/DFIT Expense (1 year amortization)
See workpaper file "2018 Deferral Estimate lD.xlsx"
Propose to defer the difference between actual current and deferred tax expense as recorded at2to/olax
rate versus hvpothetical current and deferred tax expense determined al35o/o tax rate.
The attached workpaper provides an estimate of the January through May deferral based on the 2018 Pro
Forma Results including Approved t/t/2018 Revenue lncrease (see TR#l). As the 2018 referenced reports
become available for each of the deferred months the estimated values will be replaced with actual values,
Actual deferrals will be booked into a regulatory liability as well as any unanticipated effects of the tax
reform legislation, to compare with actual amortization based on the estimate.
22 Estimated Deferred Excess Tax Expense
TR#5 Tax Reform Excess January through May 2018 Deferral ARAM Amortization (1 year amortazation)
See TR#2 2018 values on line t5
Monthly # of months 2018 Deferral
23 2018 ARAM Amort Deferred FIT Expense (L771 5 (356)
lD Electric
(8s5)
428
amortization
period
1 year
amortization
period
1 year
t year
24
25
26
27
28
29
30 Deferred 2018 ARAM DFIT Amort
31 Deferral Period AMA ADFIT Rate Base
1) TCJA Adjustment Summary lD.xlsx / Electric
Attachment D Page 2 ol 23
Page 2
eh-6';L'
PT 3 a t{
TRfr5 Tax Reform FIT/DFIT Expense Adjustment
Values Derived from 2019 Pro Forma Proposed Total including Approved tlt/2019 Revenue lncrease
and associated Conversion Factor recalculated with FIT rate of 27%.
Line
3L Pre-Tax Net lncome
Electric Pro
Forma before
Tax Reform
S82,tgs
Electric Pro
Forma after Tax
Reform
S8z,t86
TRfl1
Adjustment
So
32 Current Accrual
33 Debt lnterest
34 Deferred lncome Taxes
35 Flow Through DFIT
36 Amortized ITC
37 Total lncome Tax
(15,906)
(s62)
37,342
966
(1e6)
(9,544)
(337)
22,405
966
(1s6)
6,362
225
(14,937)
521,644 513,295 (8,350)
38 Net Operating lncome
39 Rate Base
40 Proposed Rate of Return
4L Net Operating lncome Requirement
42 Net Operating lncome Deficiency
43 Conversion Factor
44 Revenue Requirement
s60,542
Slgs,sqt
7.6t%
$so,s+t
(So1
0.512884
So
Ssg,agt
S79s,541
7.670/o
s50,541
(s8,350)
o.744889
(S11,210)
s8,350
SO
So
(Sa,:so1
/(srr,zro)
TRil7
45
Tax Reform Excess ADFIT PF ARAM Amortization
lnformation derived from tax department PowerTax program results.
See workpaper file "ADFIT Plant lmpact to Rate Base lD.xlsx"
This workpaper shows the derivation of the service and jurisdictional assignment
of ARAM impacts for 2018 through 2021 and the Average Monthly Average Calculation,
Annual Monthly
2019 Deferred FIT Expense lmpact (2,306) (7921
46
47
2019 DFIT Expense
201.9 AMA ADFIT
TR#7 Adjustments
l$2,3061 /
53,207 /
1) TC,A Adjustment Summary lD.xlsx / Electric
Attachment D Page 3 of 23
Page 3
Pt 4 a+ I
Line
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Electric System
TWELVE MONTHS ENDED DECEMBER 3I,2016
Deqg4p!i_o1No.Factor
r.000000
0.003563 Revised
0.00227s
0.051264
0.057102
0.942898
0.3300r4
0.612884
Factor
Revenues
Expenses:
Uncollectibles
Commission Fees
Idaho Income Tax
Total Expenses
Net Operating Income Before FIT
Federal Income Tax @35Yo
REVENUE CONVERSION F'ACTOR
AVISTA UI]LITIES
Revenue Conversion Factor
Idaho - Electric System
TWELVE MONTHS ENDED Df,CEMBER 3I, 2016
With Tax Reform
Description
Filed
0.003746,)
J
4
5
6
7
8
Line
No.
2
3
4
5
6
7
8
Revenues
Expenses:
Uncollectibles
Commission Fees
ldaho Income Tax
Total F,xpenses
Net Operating Income Before FIT
Federal Income Tw<@21%
REVENUE CONVERSION FACTOR
r.000000
Filed
0.003746 0.003563 Revised
0.a02275
0.0s1264
0.0s7t02
0^942898
0.198009
0.744889#
Exhibit No. 12
Case Nos. AVU-E-17-01 and AVU-G-17-01
E. Andrews, Avista
Schedule 1, Page 1 of 1
Attachment D Page 4 of 23
A"r-b'LS''"'""*\
I
I
UD
6J*dr''lLAvista Utilities
IPUC Case No. GNR-U-18-01
Tax Reform Benefit Report
1 Pre-Tax Net lncome
Current Accrual
Debt lnterest
Deferred lncome Taxes
Flow Through DFIT
Amortized ITC
Total lncome Tax
8 Net Operating lncome
9 Rate Base
10 Proposed Rate of Return
11 Net Operating lncome Requirement
LZ Net Operating lncome Deficiency
13 Conversion Factor
14 Revenue Requirement
Natural Gas Natural Gas
Pro Forma before Pro Forma after TR#l
Tax Reform Tax Reform Adjustment
s15,100 s15,100 5o
PT 1tn
Tax Cuts and Jobs Act (TCJA) Adjustments to AVU-G-17-01 Approved
Results of Operations and Revenue Requirement
TRfll Tax Reform FIT/DFIT Expense Adiustment
Values Derived from 2018 Pro Forma Proposed Total including Approved 7/L|2OL8 Revenue lncrease
and associated Conversion Factor recalculated with FIT rate o'127%.
Line
2
3
4
5
6
7
(478)
(6s)
4,42t
205
(721
(287)
(3e)
2,653
205
(12)
191
26
(1,7691
$4,07t
S11,029
5t44,932
7.5L%
su,02g
So
0.612883
SO
S12,s80
s144,932
7.610/0
S1t,o29
(s1,551)
0.744889
(s2,082)
2,520 (s1,551)
TRfz
15
Tax Reform Excess ADFIT PF ARAM Amortization
lnformation derived from tax department PowerTax program results.
See workpaper file "ADFIT Plant lmpact to Rate Base lD.xlsx"
This workpaper shows the derivation of the service and jurisdictional assignment
of ARAM impacts for 2018 through 202L and the Average Monthly Average Calculation.
Annual Monthly
2018 Deferred FIT Expense lmpact (365) (:Ol
St,55t
SO
SO
(51,5s1)
(s2,082)
TR#2 Adjustments
(Sreel
9183
Page 5 of23
16
17
2018 DFIT Expense
20T8 AMA ADFIT
1) rc{[*f#E|lBent summary lD.xlsx / Natural Gas Page 1
Ua
TR#3 Tax Reform Excess ADFIT PF Non-Plant Amortization (1 year amortlzation).Pq
18
See workpaper file "REVISED- Deferred lnventory Rollforward 20t7L2 01.16.18 before 21% NSJ.xlsx"
Rate Base AMA calculation see workpaper file "ADFIT Non-Plant lmpact to Rate Base lD.xlsx"
amortization
lD Natural Gas period
2077 .72 Excess Deferred Tax Liability
(net Asset) 379 1 year $379 Expense Adj
i}1*
P+a
19
20
2t
24
25
26
27
28
Subset included in Rate Base
(net Liability)
Amort Rate Year 06.2018 - 05.2019
05,2019 Ending Balance
(3s3)
353
1 year
AMA impact
Ending Balance Monthly Average
30 15
61 46
91 76
122 to7
152 L37
(Srssl
$176 Rate Base Adj
Rate Year Total
(Ssesl Expense Adj
Rate Year Total
(5152) ExpenseAdj
$26 nate Base Adj
TRfi4 Tax Reform Excess January through May 2018 Deferral FIT/DFIT Expense (1year amortization)
See workpaper file "2018 Deferral Estimate lD,xlsx"
Propose to defer the difference between act_ual current and deferred tax expense as recorded at 2L% tax rate
versus hvpothetical current and deferred tax expense determined al35o/o tax rate,
The attached workpaper provides an estimate of the January through May deferral based on the 2018 Pro
Forma Results including Approved LlL/2078 Revenue lncrease (see TR#l). As the 2018 referenced reports
become available for each of the deferred months the estimated values will be replaced with actual values,
Actual deferrals will be booked into a regulatory liability as well as any unanticipated effects of the tax reform
legislation, to compare with actual amortization based on the estimate.
22 Estimated Deferred Excess Tax Expense
TRfs Tax Reform Excess January through May 2018 Deferral ARAM Amortization (1 year amortization)
See TR#2 2018 values on line 15
Monthly S of months 2018 Deferral
22 2018 ARAM Amort Deferred FIT Expense (30) 5 (152)
lD Natural Gas
(645)
Deferral Period 01.2018 - 05.20L8 AMA ADFIT lmpact
1.131/2078
2128/2078
3137/2078
4/30/20L8
sl3tl20L8
Average Monthly Average Rate Base lmpact
lD NaturalGas
(1s2)
76
amortization
period
1 year
amortization
period
1 year
1 year
23
76
29
30
Deferred 2018 ARAM DFIT Amort
Deferral Period AMA ADFIT Rate Base
1)TCJA Adjustnpnt Summary lD.xlsx / Natural Gas' Attactiment D Page 2Page 6 of 23
TR#6 Tax Reform FIT/DFIT Expense Adjustment
NoJ , AAD
Y+3-6 qU
Vaf ues Derived from 2019 Pro Forma Proposed Total including Approved tl7l2O79 Revenue lncrease
and associated Conversion Factor recalculated with FIT rate of 21%.
Line
Natural Gas
Pro Forma before
Tax Reform
Sts,zoz
Natural Gas
Pro Forma after TR#1
Tax Reform AdjustmentSts,zoz So31. Pre-Tax Net lncome
32
33
34
35
36
37
Current Accrual
Debt lnterest
Deferred lncome Taxes
Flow Through DFIT
Amortized ITC
Total lncome Tax
(4421
(7s)
4,421
205
(26s)
(4s)
2,653
205
t77
30
(1,7691
54,096 2,535 L,562'l
38 Net Operating lncome
39 Rate Base
40 Proposed Rate of Return
4L Net Operating lncome Requirement
42 Net Operating lncome Deficiency
43 Conversion Factor
44 Revenue Requirement
$11,106
S145,940
7.670/o
S11,106
SO
0,612883
So
5L2,667
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7.5L%
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(s1,562)
0.744889
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45
Tax Reform Excess ADFIT PF ARAM Amortization
lnformation derived from tax department PowerTax program results.
See workpaper file "ADFIT Plant lmpact to Rate Base lD.xlsx"
This workpaper shows the derivation of the service and jurisdictional assignment
of ARAM impacts for 2018 through 2021 and the Average Monthly Average Calculation.
Annual Monthly
2019 Deferred FIT Expense lmpact (433) (36)
46
47
2019 DFIT Expense
2019 AMA ADFIT
TR#T Adjustments
($433)
$s82
L) TCJA AdjustUent Summary lD.xlsx / Natural Gas' Attactiment D PageT ot23 Page 3
Naf '
W
(*o
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Natural Gas System
TWELVE MONTHS ENDED DECEMBER 31,2016
+r{
Line
No.P.r.ripfr"Factor
Revenugs l.000000
,)
4
5
6
7
I
Expenses:
Uncollectibles 0.003564
Commission Fees
Idaho State Income Tax
Total Expenses
Net Operating Income Before FIT
Federal Income Tax@35%
REVENUE CONVERSION FACTOR
0.002275
0.05t264
0.057103
0.942897
0.3300 t 4
0.612883
AVISTA UTILITIES
Revenue Conversion Factor
Idaho - Natural Gas System
TWELVE MONTHS ENDED DECEMBER 31,2016
With Tax Reform
Line
No.Dcscription
Revenues
2
3
4
5
6
7
8
Expenses:
Uncollectibles 0.003564
Commission Fees
Idaho State Income Tax
Total Expenses
Net Operating Income Before FIT
Federal Income Tax@Zl%
REVENUE CONVERSION FACTOR
0,042275
0.051264
0.0s7 t 03
0.942897
0.198008
0;744889:
Exhibit No. 12
Case Nos,. AVU-E-1 7-01 and AVU-G-1 7-01
E. Andrews, Avista
Schedule 2, Page 1 of 1
Attachment D Page 8 of 23
I
Factor -
1.0000001
Amonization of Excess Plant ADFIT
2018
2019
2020
202L
Accumulated Amortizatlon of Excess ADFIT
L2l3L/2017
tl3tl2oL8
2128/2018
3/ltl2ot8
4/3ol2oL8
s/3rlz0L8
6l3ol20r8
7l3tl20L8
8/3t12018
913012018
t0l3tl20t8
L1.l30l20L8
r2l3tl20L8
u3uzote
2128l20|s
3/3t120t9
4/30l20te
sl3Ll20te
6/3012019
7l3Ll20t9
8/31/2019
e/3o17019
LOl3tlzoTe
LLl30l20L9
r2/3t12019
rl3t/2o20
2/2912020
3131/2020
4l3o/202a
5/3tl2o2A
6130l2o2o
7/3u202o
813112020
9l30l202o
1o13112020
tL/3012020
L213112020
Ll3t/202t
2/28/2O2L
3l3tl202L
4l30l202t
s/3t1202t
6130/2021
7/31/2021
8131/2021
el30l2o2L
L0/3t/202L
Ltl30l202t
tLl)tl202r
AMA lL / Ll 2078-12 I 3L / 20t8t
AMA (u1l201e -12 l3t I 2019].
Avista
4a) ADFIT (Plant) lmpact to Rate Base lD.xlsx
Plant Attachment D
ffiN,,,x
Agern Rmo'qf
Lt"rfn'c * ilo'it ,.ol6..4
fa ,xB
loE
2.053,817
2345,783
2,s88,886
2,725,727
IDG
365,665
433,329
529,901
677,638
182,833
582,330
Total
2,419,482
2,739,772
3,L78,787
3,403,365
171,151
342,303
513,454
684506
855,757
1,026,908
1,198,060
1,359,21 1
1,540,363
L,77t,574
1,882,655
2,053,8t7
2,245,965
2,438,1t4
2,630,263
2,822,411
3,014,560
3,206,709
3,398,857
3,591,006
3,783,154
3,975,303
4,t67,452
4,359,600
4,57s,341
4,791,081
s,006,822
5,222,562
5,438,303
5,654.043
5,869,784
6,095,525
6,301,265
5,517,006
6,732,746
6,948,487
7,L75,63L
7,402,774
7,629,918
7,857,062
8,084,206
8,311,350
8,s38,494
8,76s,638
8,992,782
9,2L9,926
9,447,O70
9,674,2L3
lD G Total
30,4?2
50,944
91,4t6
121,888
1s2,361
182,833
213,305
243,777
274,249
304,72L
335,193
365,665
40L,776
437,881
473,998
510,108
545,219
582,330
6t8,44L
554,551
690,662
726,773
762,884
798,994
843,1s3
887,311
93L,470
975,628
1,019,786
1,063,94s
1,108.103
L,t52,262
L,196,420
L,240,578
L,?84,737
1,328,895
1,385,365
1,441,835
1,498,30s
t,s54,775
1,67L,244
t,667,7L4
r,724,L84
t,780,654
7,837,724
1,893.s94
1,9s0,063
2,005,533
20t,624
403,247
604,87t
806,494
1,008.118
L,209,741
1,411,365
1,612.988
t,814,6t2
2,016,235
2,2t7,859
2,4L9,482
2,647,74L
2,876,@1
3,L04,260
3,332,s20
3,560,779
3,789,038
4,0t7,298
4,245,557
4,473,8t6
4,702,076
4.930,33s
5,158,595
5,418,493
s,678,392
5,938,29r
5,198,190
6,458,089
6,777,988
6,977,887
7 ,237,786
7,497,685
7 ,757,584
8.017,483
8,277,382
8,560,996
8,844,509
9,128,223
9,4tL,837
9,695,451
9,979,464
L0,262,678
r0,546,292
10.829,90s
11,113,519
11,397,133
Lr,680,747
L,026,908
3,206,709
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Page 18 of23Attachment D
6fco*a t-)rh-pl&tP7 3oP 3
Excess Non-Plant ADrIT included in Rate Base
Begin Refund to Customers
Number of Months
Monthly Amortization
Accumulated Amortization of Non-Plant Excess ADFIT
t/1112018
2/28/2018
3/31/2018
4l30l2ot8
s/31/2018
6130l20t8
7/3u2ot8
8/31/2078
sl3ol20t8
Lol3t/2018
LL/30/2Ot8
r2l3t/2018
tl3Ll2Ot9
2128l2ot9
3l3tl20ts
413012019
IDE
2,L79,228
6lL/2018
L2
181,502
IDE
370,771
1,990,059
1,089,614
rD6
352,856
6ltl2018
t2
29,405
IDG
29,405
58,809
88,2L4
Lt7,6L9
L47,023
L76,428
205,833
235,?37
264,642
294,047
3548s6
3s2,856
352,856
352,856
352,856
3s2"8s6
3s2,8s6
352,856
3sa8s6
352,855
352,856
352,856
352,856
352,855
352,856
3s2,855
352,855
352,856
3s2,8s6
352,856
352,856
3s2,856
352,856
352,856
352,856
352,855
3se8s6
352"856
3s4856
3s4855
60,035
322,276
t76,428
Total
2,532,084
fotal
6/30/2019
7/3tl2}t9
8l3tl20t9
e/30/zote
L0l3t/20L9
tll31/2019
L2l3L|2OL9
tl3L/2o20
2/2912020
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4/3012020
sl3!2020
6130/2020
7/3712020
813u2o2o
e/30/2020
70l3t/2020
L7l3o/2o20
Lzl3L/20?o
1131/2021
2/2812027
3l3t/202t
4l30l2O2L
5/3u202t
6/30/2021
7/3L12021
8/31/2021
s/30/2021
10/3L12027
77l3u2a2t
tzl3Ll2021
181,602
363,205
544,807
726,409
908,012
1,089,614
t,?7L,215
t,452,879
tt634,421
1,816,023
L,997,626
2,179,u8
2,179,228
2,179,228
2,179,229
2,L79,228
2,179,228
2,77s,228
2,179,228
2,179,2U
2,179,228
2,779,U8
2,n9,228
2,179,228
2,179,228
2,179,228
2,17E,228
2,\79,228
2,179,228
2,179,228
2,779,228
2,179,228
2179,228
2,179,228
2,119,228
2,L79,228
2,L79,228
2,179,228
2,179,228
2,179,228
2,179,22E
2tt,007
422,0L4
633,O2L
844,028
1,055,035
t,266,042
7,477,049
1,688,0s6
1,899,053
2,L70,070
2,32t,077
2,532,0W
2,532,084
2,532,O84
2,532,O84
2,532,O84
2,532,084
2,s3?,084
2,532,084
2,532,084
2,532,084
2,532,084
2,532,084
2,532,O84
2,532,084
2,537,084
2,532,084
2,532,084
2,532,O84
2,532,084
2,532,084
2,532,084
2,532,084
2,532,084
2,532,0U
2,532,0U
2,532,084
4532,084
2,332,084
2,532,0U
2,532,084
2,532,0U
2,s32,084
AM A (u tl 2018-12/ 3L/ 20t8l,
AMA (1/1/2019-72/3L/291sl
AMA ( 5/u2018 -5 I 3u 20Ls\
Avista
ADFIT
re
Non-Plant lmDact to Rate Base lD.xlsxAtachment L)
Pase 1 of 1Page 19 of23
2018 8€sdtr of
Operstions Report
Referenqe
compsre feder.l lncoma Taxes ss book.d at 21% to iryPothetlal 35*
2018 Monlhly Estlmsto TempLt.
Annual EEtlmata baicd
on AVU-E-17-01 with
ldaho Electric Apppved Rates
Calculatlon of Feder.l Tax!ble oper8tlnS lncome
Rate grsG 786,087
welghted cerofDcbt 2.860%
lnter€st Erp€nsc (Annual) 22,482
$ec* tl,b.f, Cn-o 5"ArAilL c' ^ tgotX -'"*r - 5-pr^*- Arr/bl
"H*.1" *?::il'"::* -r*ilm !ffi
E.APT.1.A
E,INT.1A
280,253
135,881
49,574
12,57t
786tOAl
2.850%
22,4A2
23,3s4
11.407
4,112
1,048
786,087
2,860%
22,482
2a,354
1,1,40-t
4,732
1,048
786,087
2.86p|,4
22,4a2
23,354
Lr,407
4,732
1,048
786,087
2,869t1
22,482
23,354
L1,407
4,L32
1,048
785,087
2,ew.
22,442
23,354
tL,407
4,132
1,048
786,087
x2,442
776,172
57,O34
20.658
5,238
E.FIT.1A
t-FtT-1A
E.FIT"1A
E.FIT.1A
€-FrT-1A
Sch M Rccon
Sch M Rtron
5(h M Recon
Operating Revenue
Lets: Operatlng & M.lnt€nancc Expensc
Lesr: B@k oepr*/Amoft snd Rog Amrtlratlons
L€$: T.xes Othcr thon FIT
Net opentint lncore Eefore tll
Le$i lnterest Expcns
Le$: colstrip 3 AFUOC Reallc.tion AdJ
Plus; Schedule M Permrmnt Differarcc!' Plu: Schedulc M Plant Relstsd Diff.rences
Plus: Schedule M Tcmporary 0lfterences
Iaxable Net Operating hcom?
87,223
{21,r99}
6,769
7,874
72
29
(s,3391
{r,?671
6,769
1,874
72
29
{s,3!9}
u"7sn
9,358
200
t47
{25,5es1
(8,833)
6,?69
1,874
t2
29
(s,33el
lr,767l
6,769
7,814
t2
29
(5,3r9)
lr,767l
6,769
L,871
29
(s,339)
lLt767l
2t%
(460)
(2,193)
2L%
(450)
(15)
2l%
l450)
2Lol
9,368
147
126,69s)
(8,833)
6,769
1,874
72
29
(5,339)
l!,767].
6,769
\474
72
29
{s,33s)
(1,767)
6,769
7,874
29
(s,339)
{t,767],
22,482
741
353
(64,058)
(21,199)
1S.A
l.7611
t16)
,,ra,
618
12,193)
35%
(7671
(16)
,.169
618
35%
1767t
618
35yo
33,841
22,482
(54,068)
141
3s3
check E-FlT-1A
E.flT'1A
E.FIT.1A
Production T.x Crcdit
lnvestment Tax C,cdlt Amonizltlon
Timelr Tat Ratg
federal lncom Tax Expense
Production T.x Credlt
lnverhent Tax C.edlt Amort12atlgn
{26,314)
(5,526)
(1e6)
13,454
4,452
965
(2,193)
2t%
(460)
(r6)
,,,,,
37t
81
{2,193)
2l%
(460)
(15)
1,121
37t
81
(2,193)
(16)
(2,193) {11,r0s1
(2,302)
(15){82}
7,127 1.121 5,606
371 371 1,85581 81 403
E-DTE.1A
Sch M R€con
Sch M Recon
Sth M Recon
check E-DTE-IA
Excess Plant Related DFIT Amortization
Plant Rel!tld Temp Diff Deferted Tsxes
Non-PlantTemp Diff Deferred Taxes
Flowthrouth Drrrrred TExes
Total oefered Tax Expenie
!,r2L
371
81
check E-FIT-1A Totol Current.nd Defcrred FIT Expense
CElculation o, tedersl Taxoble OperEtlng locome
OpeEting Revenuc
Less: OperatlnS & Maintenance Etp.n*
Less: Bool Deprec/Arnoft and RegAmortlzatlonr
Less: Taxes oth.r than FIT
Net Operatlng lncome Betore FIT
Lessi lnterest Expens!
Lessi colrtrip 3 AFUDC Reallocatlon Adj
Plu$ Schedqle M Permanent Differences
Plus: Schedule M Plant R!lated Oltferrncrs
Plus: Schedul€ MTemporary Differencer
Taxable Net Operating lncome
Tlmes; Tax Rate
Fcdarcl lncom! Tlx €xprn!a
x3,150
Annu6l EstimatG ba3ed
on AVU'8.17-01 wlth January 2018 Febreary 2018
Apprwod Rates Estimate EstlGte
1,573
1,096
1,573
1,095
1,573
1,096
March 2018
Estlmate
18,872 1,573
1,096
23,354
7!,407
4,132
1,048
t,513
1,096
23,354
11,{07
4,132
1,048
't,863
5,479
176,172
57,034
20,658
5,238
Aprll 2018
Ettimat.
Moy 2018
EsBmate
Deferral Period
Eitlm.te
280,253
136,881
49,578
7Z,S7r
23,354
11,407
4,txz
1,048
23,354
11,407
4,732
1,048
23,354
11,407
4,132
1,048
81,221 6,769
L,814
12
29
(5,339)
lt,167l
6,769
t,874
12
(5,339)
lt,167l
33,843
(25,3141
(9,210)
{1e6)
22,424
7,420
(8,253)
0.7i14889
(1r,080)
(688)
0.744889
(e23)
t,7u
{688}
0.744889
(s23)
7,7U
(688)
0.744AA9
{e23}
L,784
{688)
0.744889
{e23}
(2,193)
15?{
17671.
(161
,.uu,
618
33%
(2,193)(2,1e3)
(767],
(16)(15)
1,869
(2,193) {10,e64)
{3,837}
(82)
9,343
3,092
1,784
Excess Plant Related DFIT Amortization
Plant Related Temp Dlft oeferred Taxes
Non-Plant Temp Diff Oef.rrcd Taxcs
Flowthrgugh Det6rred Taxes
fotrl Deferred Tax Erpense
Total current and oeter,ed flT Expenic
Change ln Tax Expensc Duc to Tu Ratc Change
Conwrsion FSctot
fieveo@ Requiroment Benefh
r,869
618966 81 81 S1 81 81 40330,809 2,567 2,567 2,567 2,557 2,557 12,8a7
21,403 \744
(688)
0.744889
(s231
8,918
(143e1
(4,617)
2018 Deferral Estim6tc lD.xl!r / ElectricAttachment D Page 20 ol 23
;fo4 - {1r*.4a$ 3
e6fi
P6 \
2018 Relults of
Operatlon5 Report
Reference
Compare federrl lncome Tax6s a5 booked at 2l% to hYpothetical 35%
2018 Monthly Estimate Template
Annual Estlmate baed
on AVU-6-17'01 wlth
ldaho Natural 6as Approved Rate!
Calculation of Federal Taxable Operating lncome
Rate Bare 744,931
w.ightcd cort of Debt 2.860%
lnterest Exp€nso (Annual) 4,145
t44,932
2,86B?{
4,145
144,932
2.86Wo
4,145
r44,932
2,86f,1
4,145
744,912
2860%
4,t45
January 2018
Ertlmat€
FebruEry 2018
Estimate
March 2018
EstimEte
April 2018
Ertimate
Mry 2018
Estimate
Defe.ral Period
Estimate
G.APT-1A
G.INT.1A
G-flI.1A
G-FIT.1A
744,932
2,8@96
4,145
3,492
1,281
'187
156
3,492
1,ZEl
787
155
3,492
1,281
787
744,932
4,145
r7,459
6,403
3,934
831
6-FtT-1A
G"FIT-1A
6-ftT-1A
G.FIT-],A
G-frT.1A
Sch M Recon
Sch M Recon
sch M Recon
Operatlnt ReEnue
Lere: Operitint & Maintenance Expense
Less; Book Deprec/Amort and R€g Amortirallons
Le55: Taxes Other than FIT
Net OperEtlnE lncome Before FIT
Lersi lnterest Expenso
Lessi Colsiltp 3 AFUDC Reallocatlon Adl N/A
Plus: Schcdule M Permanent oifferences
Plusr Schedule M Plant Related Dlfferences
Plus: Schedule M TEmporsry DifFetences
Taxable Net Oper.tlng lncome
Tlmesr Tax Rate
federal lrcome Tax Expen5e
Production Tax Credit N/A
lnvestment Tax Credit Amortizatlon
Excess Pla.,t Related DtlT Amortization
Plant Related Temp Diff Deferred Iaxes
Non-Plant Temp Diff oefeffed Taxes
Flowthrough Deferred Taxes
Tqtal Deferred Tax Exponse
4rp02
r5,357
9,441
1,994
238
7L0
238
270
1,231
787
1,607
235
85
3,857
564
205
385
339
{r2e}
386
339
(12e)
3,492
1,281
787
166
3,492
7,287
787
155
238
210
238
210
15,100
4,145
1.258
727 11
{1r,0211 (918)
{1,512} (134}
1,258
345
11
{ex8)
(1341
1,258
34s
11
(s18)
(r34)
7,759
345
11
(e18)
(1341
1,258
345
11
(el8)
111{L
345
(1)
193
28
t7
{u
193
28
t7
5,292
7,727
(4,s92)
{672l. _
{1,5s1}
7l%
(325)
(12e)
27%
(27t
(12e)
2t%
l27t
(12e1
21%
l27l
(1ae)(12e)
2to4
(2'11
(fl6)
(136)
(s)
,*
t4L
85
check G-flT-1A
2t%
lzTl
{1)
193
28
L7
E.DTE.1A
sqh M Recon
Sch M Recon
sch M Recon
check G-DTE 1A
(r)
193
2A
t7
(12)
2,3t4
339
?os
2,858
2,520
Annual Estlmatc baled
on AVU-G-1741 with
Approved Rates
lanuary 2018
Ertlmate
February 2018
Estlmate
March 2018
EstlmatE
Aprll 2018
!stlmab
3,492
oef€rral Perlod
Estimate
r7,459
6,403
3,934
831
238
210
1,19i
1,050check G-F|T-1A Total Currcnt and Delerred FIT Erpense
calculation ol federal T.xable Operating lncome
Operatlng Revenu€
I.ess: Operat,ng & Malrtenance Expense
Lesr: Book DepreclAmort and Reg Amorllration5
Less: TaxesOtherthan FIT
Net Ope,Eting lncome Sefore FIT
Lessi lntere!t Expeose
Lersr Colstrlp 3 ATUDC Realloc.tion Adj
Plusi Schsdulo M Permenrnt Dit erences
Plus: schedule M Plant Related Dlfference5
Plus: schedule M Temportry Difference,
Taxable Net OpGrating lncome
Tlmei; Tax Rate
Feder.l lhcome Tax Expen5e
May 2018
E$lmate
41,902
15,367
9,447
1i994
3,492 3,492 3,492
1,281
787
166
1.281
787
166
1,281
787
166
3,492
7,281
787
166
1672l.
1,258
345
11
(e18)
(134)
1.258
345
11
(e18)
(134)
1,258
34s
11
(e18)
{r34)
1,2s8
345
11
(er5)
(134)
7,2.54
345
11
(e18)
(134)
15,100
4,t45
127
(11,021)
{1,612)
6,292
t,727
14,5921
(1,ss1)
35%
(s43)
{rz}
(12e)
35%
(4s)
(12s)
,5%
(4sl
(12s1
35%
(4sl
{a5)
(5)(11
121
47
t7
llze)
35%
(4s)
{1)
,,,
47
t7
{12e)
n5%
(4s)
(1I
,,
47
77
(226)
Productlon Tax Credlt
lnvcrtmenl Tax Oedit Amortiz8tion
ExGss Plant Related DFIT Amrtization
Plant Related Tcmp Diff Defarred Tares
Non-Plant Temp Dlf, Deferted Taxet
Flowthrou6h Defer6d Taxes
Total Deterred lax Expense
Tot€l Current and Oeferred tlT Expensg
Change in Tax Expense Due to Tax Rate Change
Conrercion tactor
Rev€nue R6quirement Benefit
(r)
321
47
77
(1)
321
47
77
4,526
4,071
(1,s51)
0.744aa9
\z,o82l
(12s)
0,744889
|'7741
(12e)
0,744889
(1741 (174)
365
339
386 385
339
1,928
1,596
1il6)
(868)
0,7448890,7448890.744aa9
(r2e)
l'174].{174)
2018 Deterral "AtgElfifi'ai{t8""'Gat Page2l of23
Elec* 6vt
(1)
193
x8
t'l
Acut GA/J 5s." -:f.-.soPSc,otS
ru
Ant
2018 Results ol operations
Report Reference
EorG
scM-rA
sCM-14
scM-1A
scM-1A
scM-1A
scM-1A
5CM-1A
scM-1A
scM-1A
5CM-1A
scM-1A
scM-1A
scM-1A
5CM-1A
scM-1A
scM-1A
scM-1A
scM.1A
scM-1A
scM-1A
scM-1A
5CM-14
scM-1A
scM-1A
scM-1A
5CM-1A
scM-1A
5CM-1A
SCM.1A
5CM-1A
scM-1A
5CM-1A
5CM-1A
scM-1A
scM-1A
5CM-1A
5CM-14
scM-1A
5CM-14
5CM-1A
scM-1A
scM-1A
scM-1A
scM-1A
scM-14
5CM-1A
scM-1A
scM-14
scM-1A
scM-1A
scM-1A
scM-1A
5CM-1A
scM.14
sct!&lA
scM-1A
Ahpl.oe teil€ P.Fcnts
AVU-E-17-01
ld.ho El!(ric
AVU-G-17-01
9970t5
997017
99706
997082
5.(iion 1s M.our&lurloS *drcxm
Marl oi..[ow.n.$
OR n!&ltoryt..
D.L(.d CmFns.lis
P.ld IlmG Olf
6sho Gr
51,691t97,27t
34&677 91,35:
9970S
997001
,97012
9970'lr
997m
997049
9970&
997101
(9E 6e)
{Lr45,535}
1101,8r5.!06)
3,000,490
{6,2E7.r41)
8@k ttprehlion
ContrlbutloN ln ad ol consrudlon
llrnrgoilrtion Olpird.don
t t,lC.m trltu ltfr, ld
ATUOC
Tar DEprecialior
oook Trilsponatbn O.pt
tuoiitr 481(Bl
M.&, ' ur}Il.i f,c6r rira,.htr
40,799,199
1,C9O,73L
1,112F46
110,901
Plint
Planl
Pbnt
Pl.nt
Planl
tl8il
Pl.nt
Plant
(217,59r1
(16,r4r,900)
1172,67r)
12,3r2,5511
(64,6&357)I11,021,4651
997002
997004
99706
997007
9970S
997010
99rcr5
997017
997018
991020
97o24
,97021
99?030
997031
997032
997033
997033
99784
997043
997@
997046
997053
997054
997058
997G9
997S1
997065
997071
99rUl
99708'
9970A4
99785
99766
997087
99r088
9976
997095
997098
99rG9
9971m
997102
997103
997rS
99716
T.mp
Tamp
Tcmp
T.mp
Tsmp
Tmp
Tamp
lamp
Tamp
Tcmp
Tamp
TchD
lomp
lchD
T.mp
Temp
T!np
T!hp
T.mp
T.mp
Temp
Tcmp
Icmp
T.op
Tcdp
T.mp
TcmD
fcmp
Tcmp
T.h9
Temp
Tcil,
Tem!
Ttmp
I.mp
t,48E,t05
94,971412,114
270,513
lniurlcs.nd D.m.t.r
Bould.r P.rt WdrrOl,
fASlO6Cu.rent R thaa Mcdlcal a<rurl
ld.ho Pc
05ri flol iMl0rm
Dlf.rd G$ Crctllt.trd Refundi
ncd€mptior [xpdlt
Affir. hrg in [rdr tur 146r2,.93,J5,,9E,
6M Tiritl Rldcr
FA'!7 cu[!ot P.n.lon Mu.l
xcth f.ll! oisrllow.na
Un@llEllbbs
s.n.r! 8lll408
0rorCH trt .hsiih
ht.rftl mle sw.pr
r$s t*rl td, " ', lcl
Mont.n. Hydrc sltl.m€rt
W.rhi^rlon hfurcd Po*t cottt
Noo.Mooalry 9owar Cottt
Nct Parr.!.lllahtnl
irn.wrbl. Encrly C.d6c.G Fe,
Srot.r. Siw n.[!.nrin!
colrtrlP 5.demlnt
srolil. il6 RrliE.nrint Pil,lt
CDA trlG S.ltlcn.nt
6,E29
(112,280)
759,t05
:,{0r,2la
2,?90
!90,90€
(5,514,3671
475,84,
{6,024,799}
(rz.E?7,18E1
/I,EaZ
,r.rrr,rro
13,(53,184)
1,04t.870
124,565
(r6,r441
230,815
1219,212)
?,319
s,2t7
6,9111
5,797
(199,e8:)
16,998
313,951
2,4i1
11,213
{985,O391
47,964
{75,U1}
76,111
120,52t
l!9,663)
t9,944
33,19S
r^516 Port rkd..m6l- oR
rAs87 9mth Brn.Ib'OR
Redamgilon Expcnt. Amnlittiofl ' OR
th,lrrcd o&M colslrip & cs2
wa iEc D[f
cDASaumant Coslt
(.ill. f.lla DLral te.k
wA RfC Anod
Amod ld.ho E.r.lntr Tett (254229)
ocl Prol.cl com9a$
59ol.m BEr TDc
wA ltui.C.r U,ri lgtdnn
lOrA( S'dr.duh Mr
Df[ qant. C.hul.Ed @ 35tt
flow Ihroqh DrlT
Pl.nl oflT
lTc Osrer..laddld lo otlTand Cuar.nl Ttr
ahd DFIT O 3594
TOTAT DfIC.kul.tcd utint sch.dul. M'5
PTR ROO DTII
{2,36s,9s1'
668,590
1l/,223
160,r{41
r68,!r
(21,199,3881 11,5r2,2741
(!4,91r0781 112,s42,3771
22,aZt,9Z8
5t9,503
3,857,513
,00,61rTax Dept
2016 Specific
DTE.]"A
2018 Deferral Estimate lD.xlsx / Sch M Recon
Attachment D
23,063,531
6,6S47ffi
7,419,146
4,058,r34
%4,294
!7,138,023 4,527.4*
[-lltAdj236 - Add.d lo Flow ThrouSh
17,463,t55
l2s,r33
t,&
4,526,500
t,orc
Page 22 ol 23
15L{s 39,5f2
2017 Actual Tax Expense
ldaho
Electrlc
TAx /ypta*n-
t^,ri{hc,r"* ) '
eDn
d;;+x f
Determine Hypothetical 2017 Tax Savings frorn 35% to 21% rate change
Washington
Electric
Calculation of Federal Taxable Operating lncome
Rate Base
Weighted Cost of Debt
Interest Expense (Annual)
"Hft**1
*7, I
Gas Total Utility
1,516,399,093
2.92t%
44,294,0r8
664,83L,704
363,651,699
85,024,871
62,283,004
175,597,387
2.903%
22,515,592
Washington
Natural Gas
314,500,897
2.92L%
9,186,571
Brno
Natural Gas
r46,410,353
2.943/o
4,250,293
94,586,682
66,726,62s
8,366,2r0
2,997,282
228,818,830
2.903%
6,642,611
160,211,060
L20,157,t23
11,693,592
7,74t,762
2,98t,726,560
86,889,084
L,464,122,331
889,837,193
165,294,662
103,769,779
325,r00,552
1820't5,198
42,333,292
15.332,575
219,292,333
151,555,548
L7,876,697
15,415,156
Opera!ing Revenue
Less: Operating & Maintenance Expense
Less: Book Deprec/Amort and Reg Amortization5
Less: Taxes Otherthan tlT
Net Operating lncome Before FIT
Less: lnterest Expense
Less: Colstrip 3 AFUDC Reallocation Adj
Plus: Schedule M Permanent Differences
Plusr Schedule M PIant Related Differences
Plus: Schedule M Temporary Differences
Taxable Net OperatinB ln<ome
Times; Tax Rate
Federal lncome Tax Expense
Production l ax Credit
lnvestment Tax Credit Amortization
Plant Related Temp Diff Deferred Taxes
Non-Plant Temp Dlff Deferred Taxes
Flowthrough Deferred Taxes
Total Deferred Tsx Expense
Operating Revenue
Less: Operating & Maintenance Expense
!ess: Book Deprec/Amort and Reg Amortizations
Less: Taxes Other than FIT
Not Operating Income Eefore FIT
Less: lnterest Expense
Less; Colstrip 3 AFUDC Reallocation Adj
Plus: Schedule M Permanent Differences
Plus: Schedule M Plant Related Ditferences
Plus: Schedule M Temporary Differences
Taxable Net Operating lncome
Times: Tax Rate
Federal Income Tax Expense
Production Tax Credit
lnvestment Iax Credit Amortization
Plant Related Temp Diff Deferred Taxes
Non-Plant Temp Dlff oeferred Taxes
Flowthrough Deferred Taxes
Total Deferred Tax Expense
Totai Current and Deferred FIT Expense
Change in Tax Expense Due to Tax Rate Change
Conversion Factor
Revenue Requircment genef it
Electric System
Natural Gas System
2t ,49O,r99 12,033,901 7,978,771 4,342,195 (1,795,91U s0,049,155
153,872,130
44,294,0t8
(L42,7401
466,809
(90,739,326)
8,041,864
80,388,487
22,5r5.592
t42,t40
(4308341
(49.78&s301
4,523,1r0
34,344,932
9,186,571
216,550
124,240,9As1
6,844,155
16,59A55s
4,250.293
86,937
{1 1,918,496}
3,428,042
20,018,583
5,642,67L
136,967
(22,078,601)
6,769,7sr
305,720,697
85,889,085
476,429
(198,36s,818)
29,606,932
3Sv6 79"/.
9,621,570 4,211,865
(2e,s95) (15,6921
1226,304]- (r19,99U (14,832.)(s,232)
35%(628,s69) 17,sr7,204
(4s,288)
(366,3s9)
35%
2,792,360
8,484,3L7
(2,395,4s8)
372,246
l5%
1,519,97E
4,031,460
t1,199,8r5)
226,r25
7,727,570
(2,369,413)
136,532
69,428,036
( 10,352,426)
2,605,542
3L,758,764 17,425,986
12,814,6521 (1,583,089)
1,155,821 714,618
30,099,932 16,552515
Total Current and Deterred FIT Expense 3e,46s,602 l---r6ffiil
Washington
Electric ldaho Electric
Calculatlon of Federal Taxable OperatinB lncome
6,461,105
9,238,633
Wash ington
Natural Gas
219,292,333
151,655,548
L7,876,697
15,4r5,1 55
3,057,970 5,494,530
4,866,061
ldrho Natural Oregon NaturalGas Gas
6L,677,1s2
78,776,709
Total Utility
664,83 1,704
363,651,599
85,024,871
62,283,004
32S,100,552
187,044198
42,333,292
15.332.575
94,686,682
66,125,625
8,366,210
2,997,282
160,2 1 1,060
120,757,123
11,693,592
7,7 41,762
r,464,722,331
889,837,193
765,294,662
103,769,779
153,872,130
44,294,4r8
(742,1401
466,809
(90,739,325)
8,041,864
80,388,487
22,515,592
t42,740
(430,834)
{49,788,S30)
4,523,110
34,344,932 16,596,565 20,018,s83 30s,220,5979,186,571 4,250,293 6,642,611 85,889,085
215,550 86.937 136,967
(24,240,90s) (11,s18,4s6) (22,078,601)
6,844,165 3,428,042 6,769,757
476,429
(198,36s,818)
29,606,932
27,490,799 12,033,901 7,978,1'1L 4,142,795 (1,79s,9r.1) s0,049,155
zL% 27%
5,772s42 2,527,119
(29,se6) (15.692)(225,304) (119,991)
19,055,258 10.455,591
(1,688,7e1) (949,853)
1,155,821 714,618
(14,832 )(5,:32)
?lY, 27%
911.987 (371,t41]. 10,510,323
(45,288)
(356,3s9 )
2!%
r,675,476
5,090,590
17,437,275!,
372,246
2,418,875
(719,889)
226,325
4.636,506
$,421,648)
136,532
41,556,822
(6,217,4s6)
2,605,542
18,s22,288 10,220.356 4,025,561
5,585,14s
r,925,?t2 3,3s1,391
2,914,249
(r,891,811 )
0,764928
|.2,473,789)
38,044,908
48,143,583
(30,633,126)
14O,778,203)
(31,252,280)
(9,s2s,923)
|l4o,778,203].
Page 23 of 23
24,03e,32e f--ffi|
{rs,azo,zzs)f][@l rr.sst.om)f@0.753125 0.744889 0.753293 0.714939
571,7t6
Attachment D
tzo,+e:,orzl@l {e,zrs,sna}f]!!@
Determine Hypothetical 2017 Tax Savings from 35% to 21% rate change
ldaho
E€crlc
Calculation of Federal Taxable Operating lncome
2017 Actual Tax Expense
ldaho
Natural Ga3 TotEl Utlllty'
Rate Base
Weighted Cost of Debt
lnterest Expense (Annual)
Operating Revenue
Less: Operating & Maintenance Expense
Less: Book Deprec/Amort and Reg Amortizations
Less: Taxes Other than FIT
Net operating lncome Before FIT
Less: lnterest Expense
Less: Colstrip 3 AFUDC Reallocation Adj
Plus: Schedule M Permanent Oifferences
Plus: Schedule M Plant Related Differences
Plus: Schedule M Temporary Differences
Taxable Net Operating lncome
Tlmesl Tax Rate
Federal lncome Tax Expense
Production Tax Credit
lnvestment Tax Credit Amortization
Plant Related Temp Diff Deferred Taxes
Non-Plant Temp Diff Deferred Taxes
Flowthrough Deferred Taxes
Total Deferred Tax Expense
Total Current and Deferred FIT Expense
Calculation of Federal Taxable operating lncome
Operating Revenue
Less: Operating & Maintenance Expense
Less: Book Deprec/Amort and Reg Amortizations
Less: Taxes Other than FIT
Net Operating lncome Before FIT
Less: lnterest Expense
Less: Colstrip 3 AFUDC Reallocation Adj
Plus: Schedule M Permanent Differences
Plus: Schedule M Plant Related Oifferences
Plus: Schedule M Temporary Differences
Taxable Net Operating lncome
Times: Iax Rate
Federal lncome Tax Expense
Production Tax Credit
lnvestment Tax Credit Amortization
Plant Related Temp Diff Deferred Taxes
Non-Plant Temp Diff Deferred Taxes
Flowthrough Deferred Taxes
Total Deferred Tax Expense
Total Current and Deferred FIT Expense
Change in Tax Expense Due to Tax Rate Change
Conversion Factor
Revenue Requirement Benefit
12,033,901 4,342,795 50,049,155
775,597,387
2.903%
22$Ls,s92
325,r00,552
787,046,L98
42,333,292
t5,332,575
146,410,353
2.903%
4,250,293
94,686,682
66,726,625
8,366,210
2,997,282
2,98t,726,560
86,889,084
L,464,t22,33L
889,837,193
165,294,662
t03,759,779
80,388,487
22,515,592
L42,740
(430,834)
(49,788,s30)
4,523,tLo
16,596,565
4,250,293
305,220,697
86,889,085
476,429
(198,36s,818)
29,606,932
35%
4,zLL,865
(1s,592)
(119,991)
77,4?5,986
(1,s83,089)
714,5L8
35%
7,5L9,974
(s,232\
4,037,460
(1,199,81s)
225,325
t7,5L7,204
(4s,288)
(355,3s9)
69,428,036
l'r0,352,4251
2,605,542
16,ss7,s1s 3,057,970 61,677,752
78,776,709
ldaho
'ge.trL
ldaho
Natutll Gas Total lrtilltr
325,100,552
r87,046,198
4?,333,292
15,332,575
94,585,542
66,726,6?s
8,365,210
2,997,282
1,464,L22,331
889,837,193
t65,294,552
t03,769,779
80,388,487
22,5L5,592
t42,740
(430,834)
(49,788,s30)
4,523,tlo
15,s95,55s
4,250,293
86,937
(11,s18,4s5)
3,428,042
305,220,697
86,889,08s
476,429
(198,355,818)
29,606,932
12,033,901 4,342,795 50,049,155
2t%
2,527,LLg
(1s,592)
(119,991)
10,455,591
(949,853)
714,6L8
2,4L8,876
(719,889)
226,32s
41-,656,822
16,217,4551
2,605,542
21%
9rL,987 10,510,323
(s,2321
(45,288)
(365,3s9)
to,220,356 L,9?5,3L2 38,044,908
0.744889 0.744889
48,143,583
(30,633,126)
(4O,778,203l,
Electric System+ (37,257,2801
Natural Gas Systemt 1t9,525,923],
(40,778,203l,
*Detail by alliurisidctions (WA / lD / OR) available within workpapers provided with filing.
Attachment F
20,633,697 4,572,7t6
t?,611,792
(8,021,90s)
Page 1 of 1
86,937
(11,s18,455)
3,428,042