Rate and Regulatory Matters (Notes)

9 Months Ended

Sep. 30, 2017

Public Utilities, Rate Matters [Abstract]

Public Utilities, Disclosure of Rate Matters [Text Block]

RATE AND REGULATORY MATTERS

Rate Case Settlement Filing

On January 23, 2017, we filed for Federal Energy Regulatory Commission (FERC) approval a Stipulation and Settlement Agreement (Settlement) and were assigned Docket No. RP17-346. The Settlement specified an annual cost of service of $440 million and established a new general system firm Rate Schedule TF-1 (Large Customer) demand rate of $0.39294/Dth with a $0.00832 commodity rate (Phase 1) and a demand rate of $0.39033/Dth with a $0.00832 commodity rate (Phase 2). Phase 1 rates become effective January 1, 2018, with Phase 2 rates becoming effective October 1, 2018. The annual cost of service does not change from Phase 1 to Phase 2, but the Phase 2 rates reflect the termination of fifteen-year levelized contracts that will now become Rate Schedule TF-1 (Large Customer) contracts. Provisions were included in the Settlement that we can file a general rate case to place new rates into effect after October 1, 2018, and that a general rate case must be filed for new rates to become effective no later than January 1, 2023.

Approval of the Settlement was delayed since FERC was without a quorum since February 4, 2017. On August 18, 2017, FERC issued an order approving the Settlement without modification. In November, Northwest will file tariff records to implement the Settlement rates effective January 1, 2018.