20060914Customer notice and press release.pdf

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CASE NO. AVU-O6-
CUSTOMER NOTICE AND
PRESS RELEASE
September/October 2006
Filings will result in 0.70 % increase
for residential customers and 1.45 %
increase for other customers
effective Nov. 1 , 2006
All Electric Customers
n Sept. 14,2006, Avista filed with the Idaho Public
Utilities Commission (IPUC) to eliminate a temporary rate
credit that has been used to pass through proceeds received from
the sale of the Centralia Power Plant. In 2000, the IPUC
determined the amount of proceeds from the sale that customers
would receive.
The rate credit has
been in place since
August 1, 2000
and the proceeds will be fully refunded to customers by Nov. 1
2006. All electric customers will see approximately a 1.45%
increase in their electric bill as a result of this change.
Important Notice for
Idaho Electric Customers
Residential and Small Farm Customers Only
In a. separate filing, Avista is proposing to increase the rate
credit applicable to residential and small farm customers to
pass through increased residential exchange benefits it will
receive from the Bonneville Power Administration. The credit
results from a residential exchange program aimed at providing
those customers a share of benefits from federal hydroelectric
projects located in the Northwest supplied by the Bonneville
Power Administration (BPA). Avista uses the rate credit to
pass on to its qualifying electric customers the residential
exchange benefits it receives from BPA. The additional rate
credit is a decrease of .047~ per kilowatt-hour and would
apply to residential and small farm customers served under
Schedules 1, 12 32, and 48.
The net increase resulting from both rate adjustments for a
residential customer using 1,000 kilowatt-hours per month is
$0.44 (44 cents) per month increase or a 0.70% bill increase.
The present bill for 1,000 killowatt-hours is $62.91; with the
rate adjustments the bill would increase to $63.35.
These filings are proposals subject to review and a final
decision by the IPUc. Copies of Avista's filings are available
for public review at the offices of both the IPUC and Avista.
Copies of the filings are also available on our website at
www.avistautilities.com under "Energy Prices,
" "
Rates and
Tariffs.
If you would like information on energy conservation tips
energy assistance programs, and bill payment plans, visit our
website at www.avistautilities.com, or call us at 1-800-227-
9187.
www.3vistautilities.com ~'iI'STA.
IDELEC 0900175000
~~~'V'STAe
Contact:
Media: Catherine Markson [phone] catherine.markson((D,avistacoro.com
Investors: Jason Lang [phone] iason.lang((D,avistacoro.com
Avista 24/7 Media Access [phone]
Avista Requests Natural Gas and Electric Price Adjustments in
Idaho
SPOKANE, Wash. - Sept. 2006 1:30 m. PDT: Avista (NYSE:A V A) today filed two
requests with the Idaho Public Utilities Commission (IPUC) to increase natural gas rates and
two requests to adjust electric rates. Avista requested a Nov. 1 2006, effective date for all rate
changes.
In its natural gas filings , A vista requested an annual purchased gas cost adjustment (PGA)
increase of 3.2 percent, or $2.7 million in annual revenues. Also filed was a request to increase
the rate charged to fund natural gas conservation programs, resulting in an average increase of
1.4 percent and generating an additional $1.1 million per year to fund these important
programs. A vista Utilities would make no additional profits from either of these requested rate
changes.
PGAs are filed each year to reflect changes in the cost of natural gas purchased by the
company to serve its customers. Avista s requested PGA reflects a continued increase in the
wholesale price of natural gas during the past year. While the price of natural gas has fallen
from the post-hurricane levels during late-2005 , the average cost of gas for this next year is
higher than the average cost of gas during the past year. As a gas distribution company, A vista
passes through directly, without markup, changes in natural gas commodity prices to
consumers.
The second requested natural gas rate adjustment is to provide additional funding for Avista
conservation programs to serve increasing customer participation. The program, in place since
2001 , provides for partial financial reimbursement to customers who install certain
conservation measures and use less natural gas as a result. To date, the program has saved 4.
million annual therrns of natural gas, that's enough natural gas to supply 5 300 homes for a
year.
If both requests are approved by the IPUC, a residential or small commercial natural gas
customer using an average of 65 therrns per month can expect to see an average increase of
$3.48 per month, or about 4.3 percent, for a total monthly bill of$83.91. Larger commercial
and industrial customers can expect to see an average increase of 4.7 percent and 5.0 percent
respectively. The higher increase percentages for larger commercial and industrial customers
are due to lower base rates.
In its electric filings, A vista has requested the IPUC to increase the credit used to pass through
benefits from the Bonneville Power Administration (BP A) Residential Exchange Program. The
BPA program provides residential and small farm customers in the Northwest a share of the
benefits associated with federal hydroelectric projects. The result to customers is a proposed
75 percent decrease in electric rates or a monthly reduction of $0.47 for a residential
customer using 1 000 kilowatt-hours.
A vista has also filed a request to sunset the 1.45 percent or $0.91 per month credit that
residential customers have been receiving from the company s May 2000 sale of the Centralia
Power Plant located near Centralia, Wash. The customer portion of the gain is expected to be
fully refunded to customers by Nov. 1 , 2006. The total benefit to customers over the last six
years has been $15.1 million.
If both electric requests are approved by the IPUC, a residential electric customer in Idaho
using 1 000 kilowatt-hours per month can expect to see a $0.44 or 0.70 percent increase per
month for a total monthly bill of$63.35.
A vista continues to offer a number of programs to assist both our electric and natural
gas customers in managing their energy bills " said Scott Morris, A vista Corp president
and chief operating officer and president of A vista Utilities. "I encourage our customers
to visit www.avistautilities.com or call us at [phone] for information on Avista
energy assistance programs, conservation tips and bill payment plans.
A vista is an energy company involved in the production, transmission and distribution
of energy as well as other energy-related businesses. A vista Utilities is a company
operating division that provides service to 339 000 electric and 298 000 natural gas
customers in three western states. Avista s non-regulated subsidiaries include Avista
Advantage and Avista Energy. Avista Corp.s stock is traded under the ticker symbol
A V A." For more information about Avista, please visit www.avistacorp.com
A vista Corp. and the A vista Corp. logo are trademarks of A vista Corporation.
This news release contains forward-looking statements, including statements regarding
expected rates and costs for electricity and natural gas. Such statements are subject to a
variety of risks, uncertainties and other factors, most of which are beyond the company
control, and many of which could have a significant impact on the company s operations
results of operations and financial condition, and could cause actual results to differ
materially from those anticipated.
For a further discussion ofthese factors and other important factors , please refer to the
company s Annual Report on Form 10-K for the year ended Dec. 31 2005 and Quarterly
Report on Form 10-Q for the quarter ended June 30, 2006. The forward-looking
statements contained in this news release speak only as ofthe date hereof. The company
undertakes no obligation to update any forward-looking statement or statements to reflect
events or circumstances that occur after the date on which such statement is made or to
reflect the occurrence of unanticipated events. New factors emerge from time to time, and
it is not possible for management to predict all of such factors, nor can it assess the
impact of each such factor on the company s business or the extent to which any such
factor, or combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statement.
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