Spokane client on Avista Schedule 25 (Large General Service). The renewable energy rider shows $0.000142/kWh but Washington RCW 19.285 suggests it should be lower based on their actual renewable portfolio. How do other states calculate these riders?
Avista renewable energy rider - calculation method
South Carolina has similar RPS requirements. Santee Cooper bases their rider on actual renewable energy costs plus a markup. Check UTC Docket UE-150204 for Avista's cost justification.
Connecticut has detailed RPS rider rules. The rate should reflect actual compliance costs, not projected costs. If Avista over-collected, there should be a true-up credit.
I audit SCE&G renewable riders in South Carolina. They reconcile annually in March. Look for Schedule R-REC true-up credits on your spring bills.
Found the problem. Avista was using 2014 costs to set 2015 rates but actual costs were 15% lower. UTC agreed and issued refund credits in July.
Great detective work Nancy. These renewable riders are new territory for many auditors. Documentation is key when challenging the calculations.
Renewable portfolio standard riders are becoming common across the country. Each state has different rules, but the principle is the same - utilities can only recover actual costs, not inflated projections.