HomeMy WebLinkAbout20200410Decision Memo.pdfDECISION MEMORANDUM 1 APRIL 10, 2020
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: DONN ENGLISH
DATE: APRIL 10, 2020
SUBJECT: DEFERRED ACCOUNTING OF INCREMENTAL COSTS ASSOCIATED
WITH THE COVID-19 PUBLIC HEALTH EMERGENCY
On April 3, 2020, Idaho Power Company and Rocky Mountain Power filed separate
Applications with the Commission requesting the Commission issue an Accounting Order
allowing the Companies to defer to a regulatory asset the incremental costs from the COVID-19
public health emergency. On April 7, 2020, Falls Water Company and Gem State Water
company filed similar Applications. On April 9, 2020, Avista Corporation, D/B/A Avista
Utilities filed requesting deferral of COVID-19 related expenses for its electric and natural gas
operations. In response to the COVID-19 public health emergency, the utilities have suspended
disconnects and waived late payment fees. The utilities generally claim that they will incur
significant incremental costs in responding to the emergency, some of which cannot be
determined at this time. The utilities anticipate a significant increase in bad debt expense
resulting from write-offs of uncollectible accounts associated with the suspension of disconnects
and late payment fees to assist customers facing unprecedented economic pressures. At the same
time, the electric and natural gas utilities are expecting decreased revenues that are designed to
recover normal business costs.
The utilities are not proposing to change customer rates at this time. A determination of
prudence and recovery method of the deferred costs would be determined in a future proceeding.
DECISION MEMORANDUM 2 APRIL 10, 2020
STAFF RECOMMENDATION
Staff recommends the Commission open a general docket, GNR-U-20-02, to address
whether and to what extent Idaho public utilities should be authorized to defer incremental
COVID-19 related expenses into a regulatory asset for possible future recovery. All filed and to-
be-filed cases seeking deferred accounting treatment for these expenses would be consolidated
into this docket. The case would be conducted by modified procedure. A 21-day comment
deadline and a 7-day reply comment deadline would be set after which an order would issue on
whether and to what extent all Idaho utilities may account for incremental COVID-19 related
expenses as a regulatory asset.
COMMISSION DECISION
Does the Commission wish to:
1. Open a general docket, GNR-U-20-02, to address whether and to what extent
Idaho public utilities should be authorized to defer incremental COVID-19 related
expenses into a regulatory asset for possible future recovery;
2. Consolidate all filed and to-be-filed cases seeking deferred accounting treatment
for these expenses into this docket; and
3. Issue a notice of modified procedure with a 21-day comment deadline and a 7-day
reply comment deadline asking utilities and interested persons to address whether
and to what extent the Commission should authorize all Idaho utilities to account
for incremental COVID-19 related expenses as a regulatory asset?
/s/ Donn J. English_____________
Donn English
Udmemos/Decision Memo COVID-19 Deferrals