20180501Avista Stipulation and Settlement.pdf

David J. Meyer, Esq.
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
Avista Corporation
141I E. Mission Avenue
P-O.Box3727
Spokane, Washington 99220
Phone: [phone], Fax: [phone]
F{f;CTIVED
?i]i8 iif;y - | AH B: 56
',i-]l; ,:,-Jd Lli*i', /\4iir.r:_.n,-,urMp,tl ssloil
1.,
Il
lt .i
Karl Klein
Deputy Attorney General
Idaho Public Utilities Commission Staff
P.O. Box 83720
Boise, lD 83720-0074
Phone: [phone], Fax: [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
INVESTIGATION INTO THE IMPACT
OF FEDERAL TAX CODE REVISIONS
ON UTILITY COSTS AND
RATEMAKING
CASE NO. GNR-U-I8-OI
STIPULATION AND SETTLEMENT
This Settlement Stipulation and Agreement (hereinafter "Stipulation") is entered into by
and among the following parties in this case: Avista Corporation ("Avista"), the Staff of the
Idaho Public Utilities Commission ("Staff), Clearwater Paper Corporation ("Clearwater"), Idaho
Forest Group, LLC ("Idaho Forest Group"), and Idaho Conservation League ("ICL"). These
entities are collectively referred to as the "Parties," and represent all of the parties in the above-
referenced case, as it relates to Avista. The Settling Parties understand this Stipulation is subject
to approval by the Idaho Public Utilities Commission ("IPUC" or the "Commission"). The
Parties request the Commission process this matter under Modified Procedure.
STIPULATION AND SETTLEMENT - GNR-U-I8-OI Page I
)
)
)
)
)
I. INTRODUCTION
l. The terms and conditions of this Stipulation are set forth herein. The Parties agree
that this Stipulation represents a fair,just and reasonable compromise of all the issues raised in
the proceeding, is in the public interest and its acceptance by the Commission represents a
reasonable resolution of all issues identified in this case. The Parties, therefore, recommend that
the Commission, in accordance with RP 274, approve the Stipulation and all of its terms and
conditions without material change or condition.
II. BACKGROUND
2. 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 35o/o
to 27oh, effective January 1,2018. This significant tax rate reduction materially decreases the
current and deferred tax expense currently included in customers' rates.
3. In addition, as a result of the TCJA, Generally Accepted Accounting Principles
required Avista to recalculate accumulated deferred federal income tax (ADFIT) assets and
liabilities, as of the date of the enactment (December 2017), to reflect the 2lYo tax rate,
significantly reducing net deferred tax liabilities. This recalculation resulted in excess ADFIT
assets and liabilities, producing both long-term tax benefits (plant excess ADFIT) and temporary
net tax benefits (non-plant excess ADFIT).
4. On January 17,2018, the Commission issued a Notice of Investigation in Order
No. 33965 directing all rate-regulated utilities (besides small water companies with less than 200
customers, and the small electric utility, Atlanta Power) to: (l) immediately account for the
financial benefits from the January 1,2018 tax rate reduction to 2loh as a deferred regulatory
STIPULATION AND SETTLEMENT - GNR-U-I8-01 Page 2
liability, and (2) by Friday, March 30,2018, file a report with the Commission identifying and
quantifying all tax changes individually.
5. Order No. 33965 specified that each report 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 2Tohtax rate. Each utility's
report must include proposed tariff schedules that show the revenue requirement impacts from
the 2017 Tax Act, with the differences between the law in effect on December 31, 2077, and the
law in effect on and after January 1,2018. Utilities that operate in Idaho and in other states must
separately calculate system-wide and Idaho-specific figures to show how the 2017 Tax Act
impacts total operations and Idaho operations.
6. As required by Order No. 33965, Avista identified and quantified the federal
income tax benefits as a result of the 2017 Tax Act in its "Avista Tax Report" filed in this docket
on March 28,2018. A summary of Avista's analysis as it impacts Idaho electric and natural gas
per the Avista Tax Report, was summarized as followsl:
I System information was provided within the "Avista Report on Impact of Federal Tax Code Revisions on Utility
Costs and Rate making" ("Avista Tax Report") filed on March 28,2018.
STIPULATION AND SETTLEMENT - GNR-U-I8-01 Page 3
Permanent or Lonq-Term Tax Benefits:
Current/Deferred Tax Expense (Cash)
Plant Excess ADFIT (Non-Cash)
Total Permanent or Long-Term Tax Benefits
Non-Plant Excess ADFIT (Non-Cash)
Deferralof Jan - May 2018 balances
Total Temporary Tax Benefits
$
$
53
Te
$$
$ (13.740) $
s s26
Revenue Re uire me nt
74
Tax Bene
$
(6.302)
(5,724)
$ ( I 1.080)
$ (2,660)
ID
Electric
ID
Natural Gas
7. Petitions to intervene in this proceeding were filed by Clearwater, Idaho Forest
Group and Idaho Conservation League. The Commission granted these interventions through
IPUC Order Nos. 34010,34023 and34024.
8. A settlement conference was noticed and held in the Commission offices on April
16, 2018, and was attended by all of the Parties to this case, resulting in this Stipulation and
Settlement, according to the following terms:
III. TERMS OF THE STIPULATION AND SETTLEMENT
9. Permanent (or Long-Term) Tax Benefit Reduction. The Parties agree that the
permanent or long-term electric and natural gas tax benefits will be calculated as follows:
a) As shown in the table above, the Parties agree to an overall reduction (rate credit)
of $13.74 million (or 5.3o/o overall rate reduction) for electric, and $2.556 million (or 6.1%o
overall rate reduction) for natural gas associated with permanent or long-term tax benefits.
These balances reflect:
Tax Cash - represents the current and deferred tax
benefit of reflecting a2lYo tax effective rate, resulting in a tax benefit of $l 1.080
million for electric and $2.082 million for natural gas on a revenue requirement
basis. To calculate these balances, the Company updated its final approved
electric and natural gas revenue requirement models, approved by Commission
Order No. 33953 in Case Nos. AVU-E-I7-01 and AVU-G-L7-01. to reflect a2lo/o
Reve nue Require ment (000s)
Permanent or Long-Term Tax Benefits:
i) Current/Deferred Tax Expense (Cash)
ii) Plant Excess ADFIT (Non-Cash)
Total Permanent or Long-Term Tax Benefits
Overall Overall
Base %o ID Base ol,
Reduction Natural Gas Reduction
$ (2,082)
474
ID
Electric
$ ( I 1,080)
$ (2,660)
$ (13,740)s'1%S (2.556) 6.1V"
STIPULATION AND SETTLEMENT - GNR-U-I8-OI Page 4
effective tax rate. Given that the effective date of the Company's base tariffs
January 1,2018 coincided with the TCJA effective date of January 1,2018, the
Parties agree that this is appropriate to use, as its recently-approved general rate
case (Case Nos. AVU-E-I7-01 and AVU-G-17-01) data and information was
reviewed by all parties in that proceeding and approved by the IPUC for the 2018
rate effective period. (See Order 33953)
Plant Excess ADFIT (Non-Cash) - represents the annual long-term revenue
requirement reduction of approximately $2.66 million electric and $474,000 for
natural gas to be refunded to customers associated with the amortization of Plant
Excess ADFIT reserve balances. As described in the "Avista Tax Report" filed on
March 28,2018, balances associated with regulated utility operations resulted in a
balance sheet reclassihcation from deferred tax to deferred regulatory assets or
liabilities. This revaluation impacted both plant and non-plant related balances.
As a part of this TCJA item, amortization of deferred tax amounts that represent
the difference between the historical 35o/o rate and the revised 2lo/o rate were
determined. For plant-related excess defened income tax, the Company will
amortize the plant ADFIT balances (Idaho Regulatory Liability of $106.4 million
electric and $20.5 million natural gas) in accordance with the Internal Revenue
Service (lRS) Average Rate Assumption Method (ARAM). The Company
estimates the ARAM for Avista results in an amortization period of
approximately 36 years. This benefit will vary over time, as the ARAM is not
calculated on a straight-line basis.
ll
STIPULATION AND SETTLEMENT - GNR-U-I8-OI Page 5
b) The Parties agree that the rate credit of $13.74 million for electric and $2.556
million for natural gas, shown in the table above, will be established through new "Permanent
Federal Income Tax Rate Credit" Tariff Schedules 72 (electric) and 172 (natural gas), effective
June 1, 2018. Schedules 72 and 172 as originally filed are unchanged based on this Settlement,
and are included for reference as Attachment A to this Stipulation. 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.
c) For purposes of Rate Spread, the Parties agree to spread these permanent tax
benefits or rate credits on a uniform percent of base revenue basis for both electric and natural
gas. The Parties agreed to this method because it generally matches how costs are presently
being recovered from customers.
d) For purposes of Rate Design, the Parties agree to spread the rate credit within
each service schedule, applying a uniform cents per kWh (electric) and therm (natural gas) to the
volumetric block rates by rate schedule.
e) As provided in the 'oAvista Tax Report," upon Commission order approving the
Stipulation, the Company's electric and natural gas Fixed Cost Adjustment (FCA) base values
will be updated to reflect the permanent tax rate change included in Schedules 72 (electric) and
172 (natural gas) adder schedules. The electric and natural gas FCA calculations as originally
filed are unchanged based on this Settlement, and are included for reference as Attachment C to
this Stipulation.
STIPULATION AND SETTLEMENT _ GNR-U-I8-OI Page 6
10. Electric Temporary Tax Benefit Reduction. The Parties agree that the Electric
Temporary Tax Benefit total is as follows
Revenue Requirement (000s)
Temporary Tax Benefits:
i. Non-Plant Excess ADFIT (Non-Cash)
ii. Deferralof Jan - May 2018 balances
iii. State Income Tax Impact
Total Temporary Tax Benefits
$ (6,302)
$ (5,726)
$48
L L!ry8q)
a) The Parties agree to effectuate any acceleration of depreciation of Colstrip Units 3
and 4 as part of the Depreciation Case (AVU-E-18-03). The Electric Temporary Tax Benefit of
$1 1.980 million related to the Non-Plant Excess ADFIT. the Deferral of January - May 2018 tax
credit balance and State Income Tax (SIT) Impact will be set aside and made available to offset
costs associated with accelerated depreciation of Colstrip Units 3 and 4, or other purposes, as
approved by the Commission order in the depreciation case (AVU-E-18-03).2 This amount
would be applied per Commission Order at the conclusion of the depreciation case.
b) As shown in the table above, the Parties agree that the Electric Temporary Tax
Benefit of $1l 980 million represents the following:
l.ADFIT represents an electric revenue
requirement reduction of approximately $6.302 million associated with the Non-
Plant Excess ADFIT reserve balances. As described in the "Avista Tax Report"
filed on March 28, 2078, balances associated with regulated utility operations
resulted in a balance sheet reclassification from deferred tax to deferred
2ln Case No. AVU-E-17-09 (Joint Merger Application of Hydro One Limited and Avista Corp.), the Parties to that
proceeding agreed, as a part of this case (Case No. GNR-U-18-01), that "not less than a $12.0 Million regulatory
liability should be created using the unprotected Excess DFIT/Deferral of January- May 2018 tax credit. ... This
$12.0 Million regulatory liability would then be available to offset costs associated with accelerated depreciation of
Colstrip Units 3 and 4 or other use as determined appropriate in AVU-E-18-03/AVU-G-18-02." The panies to Case
No. AVU-E-17-09 included, but not limited to, the Parties in this proceeding: Avista, Commission Stafi Clearwater,
Idaho Forest Group and ldaho Conservation League.
STIPULATION AND SETTLEMENT - GNR-U- I 8-O I Page 7
ll
regulatory assets or liabilities. This revaluation is the portion impacting non-plant
related balances. The Non-Plant Excess ADFIT has no IRS normalization
requirements, allowing this balance to offset customer rates based on Commission
approval.
Deferral of Jan - May 2018 Balances - Per IPUC Order No. 33965, the Company
was to "immediately account for the financial benefits from the January 1,2018
tax rate reduction to 2lo/o," by deferring these benefits of the TCJA into a deferred
regulatory liability until such time as the benefits are reflected in customer rates
(June 1 , 20 1 8) 3. The Parties agree that this balance represent s 5l 12 of the annual
tax benefit of reducing current and deferred income tax expense to 2lo/o, as well
as 5ll2 of the annual amortization of the excess plant ADFIT for the period
January 1,2018 - May 31,2018, resulting from the Company revising its electric
general rate case model approved in Case No. AVU-E-17-01 to include the effects
of the TCJA. This portion of the temporary benefit is $5.724 million on a revenue
requirement basis.
State Income tax Impact - As a result of the TCJA, Idaho State Income Tax (SIT)
changed fromT.4ohto 6.925Yo on January 1,2018. This change in SIT reduces
the overall tax benefits owed customers by $48,000. The Parties agreed that the
Company would include this SIT impact within the Electric Temporary Tax
Benefit balance.
ul.
3 This will occur June I , 201 8 with approval of this Stipulation.
STIPULATION AND SETTLEMENT _ GNR-U-I8-01 Page 8
I 1. Natural Gas Temporary Tax Benef-rt Reduction. The Parlies agree that the Natural
Gas Temporary Tax Benefits total is as follows
Revenue Requirement (000s)
Temporary Tax Benefits:
i. Non-Plant Excess ADFIT (Non-Cash)
ii. Deferralof Jan - May 2018 balances
iii. State Income Tax Impact
Total Temporary Tax Benefits
$ s25
$ ( 1,064)$ (s)
$ (s44)
a) The Parties agree that the Company will include the Natural Gas Temporary Tax
Benefit of $544,000 as an adjustment within the Purchased Gas Adjustment (PGA) effective
November 1,2018.
b) As shown in the table above, the Parties agree that the Natural Gas Temporary
Tax Benefit of $544,000 represents the following:
i. Non-Plant Excess ADFIT (Non-Cash) - represents a natural gas revenue
requirement surcharge of approximately $526,000 associated with the Non-Plant
Excess ADFIT reserve balances. As described in the "Avista Tax Report" filed on
March 28,2018, balances associated with regulated utility operations resulted in a
balance sheet reclassification from deferred tax to deferred regulatory assets or
liabilities. This revaluation is the portion impacting non-plant related balances.
For natural gas, the overall net balance resulted in a deferred regulatory asset. The
Non-Plant Excess ADFIT has no IRS normahzation requirement, allowing this
balance to offset customer rates based on Commission approval.
ii. Deferral of Jan - May 2018 Balances - Per IPUC Order No. 33965, the Company
was to "immediately account for the financial benefits from the January 1, 2018
tax rate reduction to 2lYo," by deferring these benefits of the TCJA into a deferred
regulatory liability until such time as the benefits are reflected in customer rates
STIPULATION AND SETTLEMENT - GNR-U-I8-01 Page 9
(June 1,2018). The Parties agree that this balance represents 5ll2 of the annual
tax benefit of reducing current and deferred income tax expenseto2To/o, as well
as 5112 of the annual amortization of the excess plant ADFIT for the period
January I , 2018 - May 3 I , 2018, resulting from the Company revising its natural
gas general rate case model approved in Case No. AVU-G-17-01 to include the
effects of the TCJA. This portion of the temporary benefit is $1.065 million on a
revenue requirement basis.
State Income tax Impact - As a result of the TCJA, Idaho State Income Tax (SIT)
changed fromT.4Yoto 6.925%o on January 1,2018. This change in SIT increases
the overall tax benefits owed customers by $5,000. The Parties agreed that the
Company would include this SIT impact within the Natural Gas Temporary Tax
Benefit balance.
12. FERC Transmission Rates - the Parties agree any change in FERC Transmission
rates and/or refund to transmission customers as a result of the TCJA, will be tracked at a 100oh
through the PCA until reflected in base rates in the next general rate case. This treatment is
consistent with the treatment of returning (or flowing through) all TCJA tax benefits to
customers at 100yo as agreed-to within this Stipulation.
13. Tax Calculations - The Parties agree, upon further review by Staff and Parties, if
any correction is determined necessary to balances stated within this Stipulation, those balances
will be updated and treated as described within the Stipulation prior to June 1, 2018.
IV. OTHER GENERAL PROVISIONS
14. The Parties submit this Stipulation to the Commission and recommend approval
in its entirety pursuant to RP 274. Parties shall support this Stipulation before the Commission,
and no Party shall appeal a Commission Order approving the Stipulation or an issue resolved by
STIPULATION AND SETTLEMENT - GNR-U-I8-01 Page 10
the Stipulation. If this Stipulation is challenged by any person not a party to the Stipulation, the
Parties to this Stipulation reserve the right to file testimony, cross-examine witnesses and put on
such case as they deem appropriate to respond fully to the issues presented, including the right to
raise issues that are incorporated in the settlement terms embodied in this Stipulation.
Notwithstanding this reservation of rights, the Parties to this Stipulation agree that they will
continue to support the Commission's adoption of the terms of this Stipulation.
15. The Parties agree that this Stipulation represents a compromise of the positions of
the Parties in this case. As provided in RP 272, other than any testimony or comments filed in
support of the approval of this Stipulation, and except to the extent necessary for a Party to
explain before the Commission its own statements and positions with respect to the Stipulation,
all statements made and positions taken in negotiations relating to this Stipulation shall be
confidential and will not be admissible in evidence in this or any other proceeding.
16. If the Commission rejects any part or all of this Stipulation or imposes any
additional material conditions on approval of this Stipulation, each Party reserves the right, upon
written notice to the Commission and the other Parties to this proceeding, within 14 days of the
date of such action by the Commission, to withdraw from this Stipulation. In such case, no Party
shall be bound or prejudiced by the terms of this Stipulation, and each Party shall be entitled to
seek reconsideration of the Commission's order, file testimony as it chooses, cross-examine
witnesses, and do all other things necessary to put on such case as it deems appropriate. In such
case, the Parties immediately will request the prompt reconvening of a prehearing conference for
purposes of establishing a procedural schedule for the completion of the case, in accordance with
law.
17. The Parties agree that this Stipulation is in the public interest and that all of its
terms and conditions are fair, just and reasonable.
STIPULATION AND SETTLEMENT - GNR-U-I8-01 Page I 1
18. No Party shall be bound, benefited or prejudiced by any position asserted in the
negotiation of this Stipulation, except to the extent expressly stated herein, nor shall this
Stipulation be construed as a waiver of the rights of any Party unless such rights are expressly
waived herein. Execution of this Stipulation shall not be deemed to constitute an
acknowledgment by any Party of the validity or invalidity of any particular method, theory or
principle of regulation or cost recovery. No Party shall be deemed to have agreed that any
method, theory or principle of regulation or cost recovery employed in arriving at this Stipulation
is appropriate for resolving any issues in any other proceeding in the future. No findings of fact
or conclusions of law other than those stated herein shall be deemed to be implicit in this
Stipulation.
19. The obligations of the Parties under this Stipulation are subject to the
Commission's approval of this Stipulation in accordance with its terms and conditions and upon
such approval being upheld on appeal, if any, by a court of competent jurisdiction.
20. This Stipulation may be executed in counterparts and each signed counterpart
shall constitute an original document.
V. PROPOSED TARIFF
21. Pursuant to OrderNo. 33965 and as explained in Avista's Tax Report filed with
the Commission on March 28,2018, the Company has prepared the proposed new "Permanent
Federal Income Tax Rate Credit" Tariff Schedules 72 (electric) and 172 (natural gas) reflecting
the direct rate reduction resulting from TCJA. Schedules 72 and 172 as originally filed are
unchanged based on this Settlement, and are included for reference as Attachment A to this
Stipulation. Attachment B to this Stipulation shows a comparison of revenues from the various
customer classes under Avista's existing rates and the impact of the Permanent Federal Income
STIPULATION AND SETTLEMENT _ GNR-U-I8-OI Page 12
Tax Rate Credit adjustment. The Parties request that Tariff Schedules 72 and 172 be approved
and allowed to become effective on June 1,2018.
VI. PROCEDURE
22. Pursuant to RP 274,the Commission has discretion to determine the manner with
which it considers a proposed settlement. In this matter, the Parties have reached agreement on a
final resolution to this case. This Stipulation is reasonable and in the public interest, providing
annual benefits of at least $13.7 million for electric and $2.6 million for natural gas. Pursuant to
RP 201 and 202, the Parties believe the public interest does not require a hearing to consider the
issues presented by this Stipulation and request that it be processed by Modified Procedure
without waiving the right to a hearing on the previously disputed matters in this proceeding
should the Commission reject the settlement.
VII. REOUESTED RELIEF
NOW, THEREFORE, the Parties respectfully request that the Commission process this
Settlement Stipulation using Modified Procedure and then enter its order on or before June l,
2018, approving the Stipulation without material change or condition.
?'h,-
DATED tnis a{day of April,20l8.
STIPULATION AND SETTLEMENT - GNR.U.I8-OI Page 13
AVISTA CORPORATION
4
Attorney for Avista Corporation
STAFF OF THE IDAHO PUBLIC
UTILITIES COMMISSION
By
Karl Klein
Deputy Attorney General
CLEARWATER PAPER CORPORATION
By
Peter Richardson / Greg Adams
Attorneys for Clearwater Paper
IDAHO FOREST GROUP, LLC
By:
Ronald L. Williams
Attorney for Idaho Forest Group, LLC
IDAHO CONSERVATION LEAGUE
By:
Benjamin Otto
Idaho Conservation League
STIPULATION AND SETTLEMENT - GNR-U-l8-OI Page 14
David
AVISTA CORPORATION
David J. Meyer
Attorney for Avista Corporation
STAFF OF THE IDAHO PUBLIC
UTILITIES
,l l30 lzot tB
Karl
Deputy Attorney General
CLEARWATER PAPER CORPORATION
B
Peter Richardson / Greg Adams
Attorneys for Clearwater Paper
IDAHO FOREST GROUB LLC
Ronald L. Williams
Attorney for ldaho Forest Croup, LLC
IDAHO CONSERVATION LEAGUE
Benjamin Otto
Idaho Conservation League
STtrULATION AND SETTLEMENT - GNR-U-I8-OI Page 14
AVISTA CORPORATION
David J. Meyer
Attorney for Avista Corporation
STAFF OF THE IDAHO PUBLIC
UTILITIES COMMISSION
B
Karl Klein
Deputy Attorney General
CLEARWATER PAPER CORPORATION
esb
Peter Richardson / Greg Adams
Attorneys for Cleanrater Paper
IDAHO FOREST GROUP, LLC
Ronald L. Williams
Attomey for Idaho Forest Group, LLC
IDAHO CONSERVATION LEAGUE
Benjamin Otto
Idaho Conservation League
STIPULATION AND SETTLEMENT - GNR.U-l8-OI Page 14
i\\/ tsTA ('ottPoRA'I't oN
B1'
David J. Ivlcl'cr
Attorncl' lbr Avista Corporation
SI',\I.F OT I'IIE II),\II() I'I'BI,I('
L I1'l l-11't t:s ('olt i\I tss toN
Br'
Karl KIcin
I)cpuly Attonrcl' (iencral
('LIiAlt\\/rVf IiR 1'A PIilt ('0RP()ltA'f I0N
Ilv:
Pctcr ltichardson / Grcg Adarns
Altomcys lilr Cleanvatcr l)apcr
.,
IDAHO FOREST (;IIOIIII . LLC
R^WilLIil':
Ronald I-. Williams
Atlonrcy lirr ldaho l;orcst (iroup. l.l,('
IDAHO CONSERVA'TION LEAGTIE
B)',
Benjamin Otto
Idaho Conscn,ation l.caguc
S'l'll'tjl.n'l'lON ANI) SL: l'l l.l:lvlllN l'- (iNlt-tJ-18-01 l'agc l4
AVISTA CORPORATION
David J. Meyer
Attorncy for Avista Corporation
STAFF OF THE IDAHO PUBLIC
UTILITIES COMMISSION
By
KarlKlein
Depr.rty Attorney General
CLEARWATER PAPER CORPORATION
By
Peter Richardson / Greg Adams
Attorneys for Clearwater Paper
IDAHO FOREST GROUP, LLC
By:
Ronald L. Williams
Attorney for ldaho Forest Group, LLC
IDAHO CONSERVATION LEAGUE
By
Benjamin Otto
Idaho Conservation League
STIPULATION AND SETTLEMENT - GNR-U-I8-01 Page 14
Attachment A
Proposed Tariffs
l.P.U.C. No.28 Original 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 electrlc 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
0.448 p per kWh
1.513 i, per kWh
Schedule 25
Schedule 25P
Schedule 31 & 32
0.307 p per kWh
0.291 Q, perkWh
0.510 d per kWh
TERM:
The Permanent FederalTax Rate Credit will be in effect until such time that the
permanent federal tax 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 1 ,2018
By
TgtJ-"-
l.P.U.C. No.27
lssued by Avista Utilities
Sheet'172
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 172
PERMANENT FEDERAL INCO]VIE 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 decreased by
the following amounts:
Schedule 101
Schedule 111 & 112
Schedule 131 & 132
Schedule 146
$0.03548 per Therm
$0.01854 per Therm
$0.01854 per Therm
$0.00876 per Therm
TERM:
The Permanent FederalTax Rate Credit will be in effect until such time that the
permanent federal tax benefits are incorporated into base rates in a general rate case
proceeding.
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment Schedule
158.
Etfective: June 1 ,2018lssued: March 24,2018
v
By Patrick Ehrbar, Director of Regulatory Affairsgn*,r-
Attachment B
Tariff Workpapers
C\l
o
o)q,o(L
lraq@sraaq
Il(otroroo$N(f)toio)$(oNo)Cf)I o_ @_ rr)- c{- @- cD- O- O-l(o(f)N@N(\lr)alc!o)@l-ort(f)
lo) rr, rrr ol t- N o co r")l-st(ostlr)@(ololi-(9(o(f)d)o)l;c.i
lsssssssslaqc?a?c?c?a?c?llr)|r)lr)tolr)lr)lr)rr)
16-rrrrrrrrt-
I
IIt^l6\t(o@rlf@NoICDNOCDTr)OO\Ilooo)oo([e-mail]-Yf^9col-e-@a@e@
l-eve+.
AAAC{roo0oI\-Oa9srr!otlOOl-F.o.atiooNloloOOOCTOOFoocroo00-cooooooov--Yv
lssssaessslrr:nsr':c!llrrlr)rI)lr)(rrf)rr,tr)lQlrlrrrtrlv
lo(f)N@t*o)s(9l(ol-@N0rFrl-l^ -_ -- @- r-_ @_ oq @_ a.I'(l- lf, o) \l o ct, to (o o)l- r (o lJ) N - @ ta tolr@ @A@Nlo@
C\..NN \\NXEGl..,
oo
(o
oaAo-oo
.E
!,ogoo-
oo.s
cf
oo+o
E
I
o.9eo)E2EE Poos?E g:
E E H $E fl€ Ec=(itUAZ'oU,odi!uv-JtEel;e.'afir-iJEPHEgetr.OJLlJO(L|f]^
o
c0
c.o
EEo(!
C!(f)\f1r)(oF*@
NNc9B s)jlr6
E bEto-a
IcE oEq, c.=art: ,o,= =ts69oo
o)PoE' .LY C')oEc=o(uo 9f,O t!,l(L
o,88,(,cc(U0)(Ec0 9fo\J(L
-Xee(s c
EEIE8E E
ug
e$ Ho-E
Ou
EEd)F
!-gz
b8o=*btu)
ciz
CoE
aDf
oI(UtrxoF
oLoEc)NlrN!'C
-!P o.ofFoEXE_c()=Foot6llLu(/)o-
N
o
c\oo,o(L
AAAAotlti(0{U, IDNlo0Gro(tF-Oqqqq(roo(,vYvv
oooq
-c
o)
p
o
-o
m
Co
E
oo
oog
0)oo-o
.s
!o
o
oo-
oo.=
Cf
oo
o
L;
88EgE,o(h *U)-oSpdsg
.B HEE,Ee
E gEEF-
o
slo)(fo(Dr l()
(0rlO l- O)ae{ @-o)(o NrON
o)
SSsS>sS(o\brbl
TqdPciTr
SSSSSSIIOIOI99oqci I
Bg'8'$
[*-i;l;
NN
-5P<ooo\\sft
rc.)
rN$lf,(ONciz
c{FEo)oo)
=E (EEI IVP b-ii o-a
a
Cr_(t|9 O)c(U c'=A:lO': E
^=69d)o
o,U, a'o.9UOEtr=ooo gf,o\,(L
oED N,oSlEOC,C(5(t)(!o 9<oL'J(L
-xEq, E
E 8EESE E
P(l)
$eE
Og
=o)€€(l)Fgz
Eg
gEta
oL
=
-CoE!U,fa
o)-oE.x(E
1-6Lo1'
ou ,9oNr(Er=(rod
6; fi!O=XEEdET(uooo)9ZAO-
Attachment C
FCA Workpapers
o
Eootr6
oooo.
EO-::6 HT:E.?.! b-lE<e
oFOO66FNA<
h@N660*d6NN6
N6€hrF
q66
OF
dqNO€^ F-
6eoro9oq -9.
69
o66YOY-
.,i r! -i i! -a6YhYN-O-Oooi €" .do
il BSEE1oo.oF"h6O9i
€oN9
-FrFot!o9!c.iN-6-6
,.i@o
j
o .n€o @ :d oo fi€- 6 00 €o qlt o r9r.i drlj -i 6^t j
.r mYF o r@ +F 60r € +F 6h' di c,i e.i od oi --la 6 F r l€
^6
60
ooo g-o
EE
d9
oo60
FF
oi ..i
8I
dt:
oo
8o"
Ir:
ooo"
6t
,.' od,7 )ox fE> Oa-ciqOH E
z
zi
€N
F6
r6
e. ri N"
@-
oo@
'1 ri \N:O
60o"q
do€ori oi
a6+.d
ON@r
r9
c.i r.i
90
69h-q
d^ h-
o
€^
9a
Q9hd>i
F
9a59
EEiru*anz
e
oo.
ooIFo
ooIor
o
a
)e
d
oo
o@
oo
88-i oi696-od€o
oooooo+q
€N
e
d
B
t
F
N?
oz?
F-
o
oA-.n^^--Fr^66ts?6F96^tEiHRsaig ONN3 i-'
eoz
no@@onQv60@^96.N^o<€464
E rii.-a
!lgJd
a);IzNqlr
J
(,)aq-
4i29,t!
J-lqlFJ2>ulooo3Ud6
6
ED
-.e .iE;
oE_58o!d!:rga E
-o!EE9.sdz4-A6=-
.9-;trEE&r
!.!.i-3.3! E ai f .i=?€c,Y<e
iirE.eiE!Etr.E:?H=9
!r
D
NF
IIJJlo
UJI(,,oIt
=oxozUJGG
zoF
JfGFoF2ul.l!JFFUat
IF
+:)
c,z
ulo
o
RHS:33
EQ
o&66
:-
ooo" o"
oi o.i
d!
J
F
F
s
5
?,g
9!90opEI J -q;E Pr8o-F 9 o
EiI :EE<<ou<
E
EE
o;od.1
d,a.<E9&Ee IE.so9;E
p'i -*q qJU, U
s66
-Q
EJis
99
&&EE99!tsaa
oo(J(J
€!
acJ
e "J9 E";
.o(J9
^ od
=i!sE EJ6 EogEPod6iE
@69
c
cJ
99
L]
JJ
D6
'r
-t9atlr3
-96B5
ogEd
EE
a€
EE.o.o
td
FF
<ta
o
b
c
/.
I
-a
acoo
EE99
oo
''zz
E
ar
JOdre9g: e eEgtt
-adA
.Ud B g E. ZC E E
E E E!;-E 5@ q c><b€Es 906!!3 FC 5 E!t-9ts^rEY€;;EX5992J>tEti
+no$S
O
oAc.io3!
oooEoxL
o6)oo-
l^
l8^
l.
l..iItloilo
t;
NF
IJJJloLuIot,tF
Eoxo2
Ho-
zI
5fLFoFzuJEulJ
E!.to
Its
ryf
o2
u,o
o
Fts6Ih^ .! F-lr6€l
c66FhO-h66ts6.a- 5- rj .\ 6- yi606to9FA+6N61h- .i 6.d6!5d
itaIe
d
*--l
q6^Flr60l
rNl
No*
N
gE$EE
g E.E *'=pgag
6.' 9
ET E
E
E
;s
O6
F6 +F_ @- d;GANo9ao-
F
i
o$H:cga
4
E
.E _!
T!la2
?
E
EI&
o0
6
.EE
!tstl I
!E
! rtss!;aA UEi{€aEgtse
.9-sdaEer
IEitaiJ;=.qdE!I:!itt!EEix
E€**T.iOJAP
EoE(JN
.U;
E E;1e sE EixElE€.jti4s:IEXA
E
&
flE
trlEHE.il (,ilr<l r
EE66aO
&
c
E
E
3€.
o
!
5
o
aO
3
z
bF
aog
fli
llE
sl;-d.c
fli
q
.]z
o
oE
o
E
Eo
O
3i]
d
F
3o
,a ai5 a IE =sTf 38sa*;Es-b
E i t 3 { t ! B!i3,1;{{Eiri?*39$?EE*€EEEseEiEigl,i,i"?Ee2P
@€FN.r660hr^-F
oah--6..
F-i nE
rF6-i-t
6O-
66N--6 a
ni:J J
ooh--hdFt--O-6Jj i
F.t6--@alOh- O€-- t3fi-
@7.F--tsO?o<
d.'
da.^---door^- 6i60-t--
6N6--i6*O6- O*+o-- t-
oFt
*6---6F
€6-
O6---6€6F6- O?F6- i-
6-iF-a.^6a+-o6-ddJ :
6d+r€6F t-+o j j
o)
:
cl
lrF
l:
l"
16.
s:
\
o.
@.
s
d
J
E
o
FJ
F
=:
JFio
N":
-==Err- $
tE r ; EEtE"i;r{;qq*iti E;,s -$-{?E E*:EESESFE€Eed3,i,iE;!
-----*-to-otQcl 6lo- r- o- N- o- 6- o-lc.nNoNN6ld-66FCrl
<€-hs6-l
th666 |
I
I-^-*---tF66N66<lo- o- 6, F_ t- 6- qlto€6-6ml
F€Fa€.r-l
6r.66.^ I-l
I
€ F.r -.r 6 diN666Fts$lo66F-odi
o66N.. I
-t
-€-.^oNol6. 6" v. .1 N^ t F_l
.r F h o 6 I dl
€6N-hFOl
edh614 |
v€-+o*6OhO6@-hh6600N6d ci oi r.i oi ri ..i+ooo6F6s€al-F6O6666@9-
- N F 6 o N -lN 6 - 6 6 F Flo" .l a. o- h" .1 nl6000006t
N6666r?-l
d.^h6r. I
ar?6Noool?- +" 6, o- o- 6- v)l€ - d + a 6 FlhN666N-l-+OOer-ldNdiaidiil6..6N6 I
h .. 6 F o F al6 0 @ 6 N O 6l
rid6Fjdodolt66@dF-l
€nhNN
I
I
---*---t60-d-oolF- €- 6- 6- 6- -- o_l66FOd-dl
N- 6, 6- .l F- o- 1l6F6a6n-lF.'6d-l
I^-----^t6m-6FOOl6edo*661<N6NF66lNiFNOCOIs- @- i- 6- €_ 16- --l6€*€<r.-l
**r*=.=l?- F: F, 9- 1 o- o-l
-?6oo-€lo6tt..6Fl
o6hh6r I
IIo6NFO6Fl6- O, -- 6- N. €. al?66dNh6l
-€--66o16 6iri..'N N Jlo'^6N6 |
II-^.^--,^lt O O 6 6 i hl6- N- 6- o- F- o- 6-l..tsd+-h6l
F- s- 6" o- 6- h- --lth.^ot.^-l-l
:
-u!
8
I
q
dKg,xoa
E
a
E&u9-az
r&
EgcE5v<9
L-q >
s95gii 5us @eg:
=gr r
-No{5eF6o9=!!399X9 9R-SRXRXtSR
;
;
?
!z*E
J
6
ErE9
IJ9r'b<BEc3
5l fI
EI J:ril t€gEt::
qilTi
!
a
N=$zAA
E
-9E&3d
td
ErI6
<1silat -9 :.
EI! ENl'i:ll g s:lE i€t ,
3
3
=a sa
tt .Ect J
rlEl rflE_!t B
rl -adl Ei!l 3F&l u rl
ElSl HE
gH g{
€ltl I:gl Sl r EldEif=
ElE$F=
i8
trJ
9
r;e
:
-8
9
-s
.:i 6.t
8.
-s
vi-
8.I
I
r.8
io€s
8?
Et-
HEistt E
{t$!*l 1
3B
,^ ;<
t-
!
9
$
I
-:{
6l
6.{
oi
3
$6
I
oi(
ir€FI
€x6
?6tsI
s
-cdErg$l
.gt itrdt qt
g
E
3
3
G
J
F
A
z
a
€
€
!E
.ESIrl o
L?9E
o-3a-.aF; !E;0. E;:4a =a-aHclE o0Z=O
EECr
Q 5E'!
.E E< -o,24Za
s I>9ii s,: +E'i:E
e gOaf Eo6-d,
Eq4r:,o f-l:P
o-N6!6OFO6O- €F66O-.E6)z
E.EeoEo
oottrE
o E
5. s"
I 6
6
o
I
+4
&z
\
F
IIJJfoujIoo
F
Eoxo2tua-G
2IFIfEFanF2uj
=lrlJFFlllo
ots
u.t
f
ci2
IJJo
o
oEoo6o
ornoL
E
;- ErE9E(JE
E X4llr<H
rN€-o^.NroN r
oF OOro ooFh O9A.f aiod
o6 €"q
oqoio-
6d
N
-o9tdN
600ior.\o q
69
9-oo
do
969€
9! r;
efl
o3
o€
i€
N6
6 00 N I ++6 OF O O 9r6 0+ a F d€h <- o - N6o 6d G < ts6d r9 6 I oNN 6€ ts -6oo 6N
oro09N
dd
6@
9A
,1 IU9H()
/6
F
9G5q96UAh6:?r
cc
oo
O(J
';ZZ
€r
N
ENo6
6@
o
-o
N
o
66
lotolo
I'
l-
lslo
t3
l-
l*
leloIF
l!
ooooo- o.
oo
6
'd
ooooo^ o^
-ol
__lEAIooldol
$
.osl&ttlU;]:c>oFdr!oB5
J
Eu=Ei:
EBrt
-.1
6JnidYJd>;J2cAtri H l!a'8
ro-o€rokNr€6ts(,t"-N^O.a
=--Nro,! F6--
= Nr 6
!N
dio
i+ohoOOF9QO€IN,J@9660
- -96.d oi ri
E
&
€c
6\:Gco
2Ee ,t]f*s
s6=064'=-.s
+&;9-Ea! !-- oE.EEE&E; a r
=IEF-'-'- o;i E:,,,2 8 :<-a;:
= EQE<<E9e
au.E9sB
:EgZ-Qr&
-ara9
Nts
uJ
:lot!IooIt
=oxoztlJo-o-
zIF
J
=GFo
zuJE
uJJ
F
UJo
?ts
If
c,2
lrlo
o
o
o
N
E
N"ih
F
!-
.9J
e
Eo9agH$
o!ag
.E "i -Q
Es $EEo. - I o{= v E oE=SgE>tr6=><<r0(J<
63
:<'r
&&
€B
ooO()!E
ii iE
af
d
s$*;.8 E-ou Iur o6 9rc,
=ii s
E Ed9*3-J E,Iuar
--9
l0I
E
€€
'.]J
EEoo!5
^go8oon E E$f€€
Q€ c c
F{56$-.4 y o o
3E gSE
;-E &: rdceddE*8es
E*88€!x-9.!ts
EY€!!Za>iEtE
$-aS€
Bco^>O& ^ HE€o=i Is-Bf, aiYd d? o! - EE5{ I3E o
E g:?#
AA 9 YN
E 3& E g6t€89
EEl55€E I r r
-6t?N
-^-:SH
oc
o
(,,
o-E
E
6ooEo.x
ogtoo.
6qqN
II
q^
F
N
F- .1ON
d-i
d^ae€-9-ad" .i
6N9F-q6
o" ri
rF
N
aa
+- s" F
ar6
N
60Nh^ 9. r
h"IN
.8s66A^A^FNoo&a\&r\GEdE{gga90uod*
Eil'
II:
I
,,1"
6
-o
EE
+E
^ L-o oEi Es
EIN
o=aSEE
sE{EEE E 5?6€!E: B;.d.qiP9;e
xg=lrUo,!E!- rE
E E?,I:cd
EqEF4Ht,io>
N
lrJJ
oUJ-oo-F
=6xozl,tjo-o-
zo
Jfo-FoFz
UJ-UJJ
FIIJo
I
I
cizt!o
o
q E $AEEg€f'=*Pif.
LD E
H EE9E
E
ooEEoo
taUO
oofuAoao?oEH EEBE&,&,8&",o-d:-L):.=i E flE : E t3 3 t|il .E 3 ^5€$3E€=i .E gE i .E €e: q: * ?.8E.ts.*E.93F l+ <lr F k
N6*d6
o
a
e!t od
Hlr
IlE
sl3
E18FIE
;Xl8
Eo
E56
o
E6
ca
1o
F
z
tsots
6
6
9.6r
ocoE
-9
6
6-
r966r
rN
$a
N-a"q
r
o-
66
8X
-idal al
-o
E8r'6
NA
Jri
NO
K8
6-9. q.
N{^
ON6t6
e8
ns
o"qON
rosN"
o
F
N
o
oJ
o
Fl
6
@"
N^roo.
o
s
or
3
r
a
$^F
6
sF"
o
.,iI
o
a6
oiqr
o-a-
ol ri
88
3
F
r
9
=?j
F"E
;
^i
AF
eisr:
oS
3
-s
F
o-
iis
-a\ o€}:
<i3:ts
o-
-s
SN
:
-s
F'Fr
ap
oi
EF
"s
-N6t6€Fo69=I9::9:=9R nNRXnRSf R
9at
r
o. n-
06
6- {"
F
F
60
ro
d-
€o
o, €.
o. r-
rr
to.
93d .,i
=i
FTAN
-o
9a-ra" o,
-o6" O-
NF
FO
Eflri.i
6rF^i
q cl.60
6. o"
3
F
s
I
E
€ct
Qal
Q .l
Oar
9at
€N
o tr
I
oFr
.l {,
d. r.
6
C
NK
Pxaa
dX
$x'oPxat
E
E&b9
cc
b<
&3
b-!., s .!EI XTDtgf
El.r 5
gii
{r ??:t ,
*9
- *xLl "o
dt!l gEI ,1?i E;i E;il., B&
EI xl E:
Bfl ii
tlll I3
3flEt+s
g
E
F,:rDo
E
ilI"dl E oit E:Etz IEt E<,{lt!
El > xZl ,
!
E
€
s
Ev
z'
5^o
E
t_D E6I EFul 5!
flsit
:li N<6t--=rlbo-o;EO--=! OE "-g€ E *?E!#*E>qa9<9
E E gE{,E
6 0 0 ! =vQ 4 0 Y 6.?
TE $E E Ic6)E?b
2
sN<o__+
-6: d..8=;4Es
iitE{ef;!3E,iEiE E B?I3E
t 3 $sE3{
I
E-a
Ec,B9
d4
,fts<et
!_!- <9
$19 e
El i!
fltl
dt !-9{t ??€t ,
5
.g
-9
ig:9LJ
b<*J
€!<iH E,iB o€g !E
f,sI!
O-al 6<hOr@6O-N6+6OF6OiA666fi6O+{gSttSV
J
t
F
z
I
E
zt
-4.(=9Q?=L€.:s6>2,8roalE
5EE
Ev !i .LE'=^uc
=EEEzaOEE2>=n:&t'E3:tsE; E T-3EF
Ei-.iai.EJ=
;6S.=!>
6 Ir'.:(J.>E
EEE
;FgEilEEcrOr9(J9Jt?
n! 9)6..4-o EoSa ;'E $oo-
-d
,o
&
d
D
8?
1a€
>3+
836?&z
9-i
$:"
o
o
63o
a
o
oEo
NN
UJJf,ouJ-oo
IF
=axo2utIo.
zIF
Jlo-Ftt
Fz
l,tJ
=tlJJFF
IJJo
ItsTIf
c,z
luo
o
@60