20121011Customer Notice & Press Release.pdf

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Customer Notice
Press Release
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OCTOBER 2012 IMPORTANT NOTICE FOR IDAHO
NATURAL GAS CUSTOMERS
On October 11, 2012, Avista filed an application with the Idaho Public
Utilities Commission (Commission) to increase Idaho natural gas
rates by $4.6 million or 7.3%. The requested rate increase is driven
primarily by additional capital investments, increasing operations and
maintenance costs, and continuing emphasis on providing customers
with safe and reliable natural gas service. More information on
the requested rate increase is available at www.avistautilities.com
(keyword search: rate case).
The proposed net increase above current billing rates by service
schedule is as follows:
General Service Firm Schedule 101 7.8%
Large General Service Firm Schedule 111 & 112 5.7%
Large Interruptible Service Schedule 131 & 132 5.9%
Transportation Service Schedule 146* 12.8%
Excludes natural gas costs
Residential customers using an average of 60 therms per month would
see their monthly bills increase from $52.55 to $56.67, an increase of
$4.12 per month, or 7.8%. As part of the request, Avista is proposing
that the basic monthly charge for residential service, currently set at
$4.25, remain unchanged.
The Company's application is a proposal, subject to public review and a
Commission decision. A copy of the application is available for public
review at the offices of both the Commission and the Company, as well
as the Commission's homepage (www.puc.idaho.gov). The Commission
has up to seven months to review the Company's rate increase request.
The Commission will begin a comprehensive review of Avista's
application and will seek public input on the Company's request.
If you would like to submit comments on this proposed increase, you
can do so by going to the Commission website at www.puc.idaho.gov
or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Avista offers a number of programs and services to help customers
manage their energy use and costs. Visit us at www.avistautilities.com
for information on these programs which include Comfort Level Billing,
bill payment options, automated payment service, assistance programs,
conservation tips and energy efficiency rebate and incentives, among
others.
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OCTOBER 2012 IMPORTANT NOTICE FOR IDAHO
NATURAL GAS CUSTOMERS
On October 11, 2012, Avista filed an application with the Idaho Public
Utilities Commission (Commission) to increase Idaho natural gas
rates by $4.6 million or 7.3%. The requested rate increase is driven
primarily by additional capital investments, increasing operations and
maintenance costs, and continuing emphasis on providing customers
with safe and reliable natural gas service. More information on
the requested rate increase is available at www.avistautilities.com
(keyword search: rate case).
The proposed net increase above current billing rates by service
schedule is as follows:
General Service Firm Schedule 101 7.8%
Large General Service Firm Schedule 111 & 112 5.7%
Large Interruptible Service Schedule 131 & 132 5.9%
Transportation Service Schedule 146* 12.8%
* Excludes natural gas costs
Residential customers using an average of 60 therms per month would
see their monthly bills increase from $52.55 to $56.67, an increase of
$4.12 per month, or 7.8%. As part of the request, Avista is proposing
that the basic monthly charge for residential service, currently set at
$4.25, remain unchanged.
The Company's application is a proposal, subject to public review and a
Commission decision. A copy of the application is available for public
review at the offices of both the Commission and the Company, as well
as the Commission's homepage (www.puc.idaho.gov ). The Commission
has up to seven months to review the Company's rate increase request.
The Commission will begin a comprehensive review of Avista's
application and will seek public input on the Company's request.
If you would like to submit comments on this proposed increase, you
can do so by going to the Commission website at www.puc.idaho.gov
or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Avista offers a number of programs and services to help customers
manage their energy use and costs. Visit us at www.avistautilities.com
for information on these programs which include Comfort Level Billing,
bill payment options, automated payment service, assistance programs,
conservation tips and energy efficiency rebate and incentives, among
others.
OCTOBER 2012 IMPORTANT NOTICE FOR IDAHO
NATURAL GAS CUSTOMERS
On October 11, 2012, Avista filed an application with the Idaho Public
Utilities Commission (Commission) to increase Idaho natural gas
rates by $4.6 million or 7.3%. The requested rate increase is driven
primarily by additional capital investments, increasing operations and
maintenance costs, and continuing emphasis on providing customers
with safe and reliable natural gas service. More information on
the requested rate increase is available at www.avistautilities.com
(keyword search: rate case).
The proposed net increase above current billing rates by service
schedule is as follows:
General Service Firm Schedule 101 7.8%
Large General Service Firm Schedule 111 &112 5.7%
Large Interruptible Service Schedule 131 & 132 5.9%
Transportation Service Schedule 146* 12.8%
Excludes natural gas costs
Residential customers using an average of 60 therms per month would
see their monthly bills increase from $52.55 to $56.67, an increase of
$4.12 per month, or 7.8%. As part of the request. Avista is proposing
that the basic monthly charge for residential service, currently set at
$4.25, remain unchanged.
The Company's application is a proposal, subject to public review and a
Commission decision. A copy of the application is available for public
review at the offices of both the Commission and the Company, as well
as the Commission's homepage (www.puc.idaho.gov ). The Commission
has up to seven months to review the Company's rate increase request.
The Commission will begin a comprehensive review of Avista's
application and will seek public input on the Company's request.
If you would like to submit comments on this proposed increase, you
can do so by going to the Commission website at ww.puc.idaho.gov
or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Avista offers a number of programs and services to help customers
manage their energy use and costs. Visit us at www.avistautilities.com
for information on these programs which include Comfort Level Billing,
bill payment options, automated payment service, assistance programs,
conservation tips and energy efficiency rebate and incentives, among
others.
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OCTOBER 2012 IMPORTANT NOTICE FOR IDAHO
ELECTRIC CUSTOMERS
On October 11, 2012. Avista filed an application with the Idaho Public
Utilities Commission (Commission) to increase Idaho electric rates by
$11.4 million or 4.6%. The proposed increase reflects primarily the
capital investments to upgrade aging infrastructure to continue to
provide our customers with safe and reliable electric service. More
information on the requested rate increase is available at www.
avistautilities.com (keyword search: rate case).
The proposed net increase above current billing rates by service
schedule is as follows:
Residential Service Schedule 1 5.3%
General Service Schedule 11 & 12 4.1%
Large General Service Schedule 21 & 22 4.8%
Extra Large General Service Schedule 25 3.9%
Clearwater Paper Schedule 25P 3.3%
Pumping Service Schedule 31 & 32 5.7%
Street & Area Lights Schedules 41 —49 4.5%
Residential customers using an average of 930 kilowatt-hours per
month would see their monthly bills increase from $78.69 to $82.89, an
increase of $4.20 per month, or 5.3%. As part of the request, Avista
is proposing that the basic monthly charge for residential service,
currently set at $5.25, remain unchanged.
The Company's application is a proposal, subject to public review and a
Commission decision. A copy of the application is available for public
review at the offices of both the Commission and the Company, as well
as the Commission's homepage )www.puc.idaho.gov ). The Commission
has up to seven months to review the Company's rate increase request.
The Commission will begin a comprehensive review of Avista's
application and will seek public input on the Company's request.
If you would like to submit comments on this proposed increase, you
can do so by going to the Commission website at www.puc.idaho.gov
or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
TWSTA.
OCTOBER 2012 IMPORTANT NOTICE FOR IDAHO
ELECTRIC CUSTOMERS
On October 11, 2012, Avista filed an application with the Idaho Public
Utilities Commission (Commission) to increase Idaho electric rates by
$11.4 million or 4.6%. The proposed increase reflects primarily the
capital investments to upgrade aging infrastructure to continue to
provide our customers with safe and reliable electric service. More
information on the requested rate increase is available at www.
avistautilities.com (keyword search: rate case).
The proposed net increase above current billing rates by service
schedule is as follows:
Residential Service Schedule 1 53%
General Service Schedule 11 & 12 4.1%
Large General Service Schedule 21 & 22 4.8%
Extra Large General Service Schedule 25 3.9%
Clearwater Paper Schedule 25P 3.3%
Pumping Service Schedule 31 & 32 5.7%
Street & Area Lights Schedules 41 —49 4.5%
Residential customers using an average of 930 kilowatt-hours per
month would see their monthly bills increase from $78.69 to $82.89, an
increase of $4.20 per month, or 5.3%. As part of the request, Avista
is proposing that the basic monthly charge for residential service,
currently set at $5.25, remain unchanged.
The Company's application is a proposal, subject to public review and a
Commission decision. A copy of the application is available for public
review at the offices of both the Commission and the Company, as well
as the Commission's homepage (www.puc.idaho.gov). The Commission
has up to seven months to review the Company's rate increase request.
The Commission will begin a comprehensive review of Avista's
application and will seek public input on the Company's request.
If you would like to submit comments on this proposed increase, you
can do so by going to the Commission website at www.puc.idaho.gov
or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
#WSTA.
OCTOBER 2012 IMPORTANT NOTICE FOR IDAHO
ELECTRIC CUSTOMERS
On October 11, 2012, Avista filed an application with the Idaho Public
Utilities Commission (Commission) to increase Idaho electric rates by
$11.4 million or 4.6%. The proposed increase reflects primarily the
capital investments to upgrade aging infrastructure to continue to
provide our customers with safe and reliable electric service. More
information on the requested rate increase is available at www.
avistautilities.com (keyword search: rate case).
The proposed net increase above current billing rates by service
schedule is as follows:
Residential Service Schedule 1 5.3%
General Service Schedule 11 & 12 4.1%
Large General Service Schedule 21 & 22 4.8%
Extra Large General Service Schedule 25 3.9%
Clearwater Paper Schedule 25P 3.3%
Pumping Service Schedule 31 & 32 5.7%
Street & Area Lights Schedules 41 —49 4.5%
Residential customers using an average of 930 kilowatt-hours per
month would see their monthly bills increase from $78.69 to $82.89, an
increase of $4.20 per month, or 5.3%. As part of the request, Avista
is proposing that the basic monthly charge for residential service,
currently set at $5.25, remain unchanged.
The Company's application is a proposal, subject to public review and a
Commission decision, A copy of the application is available for public
review at the offices of both the Commission and the Company, as well
as the Commission's homepage (www.puc.idaho.gov (. The Commission
has up to seven months to review the Company's rate increase request.
The Commission will begin a comprehensive review of Avista's
application and will seek public input on the Company's request
If you would like to submit comments on this proposed increase, you
can do so by going to the Commission website at www.puc.idaho.gov
or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Avista offers a number of programs and services to help customers Avista offers a number of programs and services to help customers Avista offers a number of programs and services to help customers
manage their energy use and costs Visit us at www.avistautilities.com manage their energy use and costs Visit us at www.avistautilities.com manage their energy use and costs Visit us at www.avistautilities.com
for information on these programs which include Comfort Level Billing, for information on these programs which include Comfort Level Billing, for information on these programs which include Comfort Level Billing,
bill payment options automated payment service assistance programs bill payment options automated payment service assistance programs bill payment options automated payment service assistance programs
conservation tips and energy efficiency rebate and incentives among conservation tips and energy efficiency rebate and incentives among conservation tips and energy efficiency rebate and incentives among
others others others
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Contact:
Avista 24/7 Media Line 509-495-4174
Media: Anna Scarlett 509-495-4916 anna.scarlett(avistacorp.com
Investors: Jason Lang 509-495-2930 iason.lang~avistacorø.com
Avista files requests to adjust electric and natural gas rates in Idaho
Company seeks recovery of costs to deliver energy to customers
SPOKANE, Wash. - Oct. 11, 2012:11:30 p.m. PT: Avista (NYSE: AVA) filed requests today
with the Idaho Public Utilities Commission (IPUC) to increase electric and natural gas rates in
Idaho. The requests primarily seek recovery of costs associated with capital investments and
other expenses necessary to maintain Avista's system. The IPUC has up to seven months to
review the filings and issue a decision.
If the IPUC approves the requests, an electric residential customer in Idaho using an average of
930 kilowatt hours per month would see an increase of 5.3 percent or $4.20 per month, or about
14 cents a day, for a revised bill of $82.89. Natural gas customers in Idaho using an average of
60 therms per month would see an increase of 7.8 percent or $4.12, or about 14 cents a day, for
a revised monthly bill of $56.67.
Avista proposed an overall net electric rate increase of 4.6 percent, to produce $11.4 million in
additional electric revenue. Avista has also requested a $4.6 million increase in natural gas
revenues, or a 7.3 percent overall increase. The electric and natural gas filings reflect a
proposed rate of return on rate base of 8.46 percent with a common equity ratio of 50 percent
and a 10.9 percent return on equity.
Effective Oct. 1, Idaho customers saw decreases in both natural gas and electric rates because
of lower natural gas prices and lower power supply costs, after the IPUC approved several rate
decrease requests Avista filed in July. Rates for natural gas customers in Idaho have decreased
twice this year, in part due to lower wholesale natural gas prices, dropping by approximately 12
percent overall in 2012.
"It's good that natural gas prices and power costs have been lower, because we've been able to
pass those savings through to customers with rate decreases," said Avista Chairman, President
and Chief Executive Officer Scott L. Morris. "But the other costs of delivering energy to
customers safely and reliably continue to rise. This is the primary reason for our request to
increase rates."
The requested electric increases by customer segments are:
Residential Service - Schedule 1 5.3%
General Service - Schedules 11 & 12 4.1%
Large General Service - Schedules 21 & 22 4.8%
Extra Large General Service - Schedule 25 3.9%
Clearwater Paper - Schedule 25P 3.3%
Pumping Service - Schedules 31 & 32 5.7%
Street & Area Lights - Schedules 41-48 4.5%
The requested natural gas increases by customer segments are:
General Service - Firm - Schedule 101 - Residential & small commercial 7.8%
Large General Service - Firm - Schedules 111 & 112 5.7%
High Annual Load Factor Large (Interruptible Service Schedules 131 & 132) 5.9%
Transportation Service for Customer— Owned Gas - Schedule 146* 12.8%
* Excludes natural gas costs
Delivery costs continue to rise
About 60 percent of a customer's electric bill is the cost of power itself - the cost of generating
or purchasing electricity. The remaining 40 percent covers delivery costs - the equipment and
people it takes to safely and reliably deliver the energy through our distribution system to a
customer's home or business. For natural gas, delivery costs make up about 45 percent of a
customer's bill, while the combined costs of purchasing natural gas on the wholesale market
and transporting it to our system for delivery to customers is about 55 percent.
Delivery costs for both electricity and natural gas continue to rise. Avista is charged with
maintaining and updating an extensive system of pipes, poles, dams and substations in order to
deliver safe, reliable energy to customers. Capital investments required to assure the ongoing
delivery of reliable energy, along with rising operations and maintenance costs, continue to drive
the need for additional revenue. In 2011, utility capital expenditures were $240 million and the
company expects to invest approximately $260 million in 2012.
"We expect to invest approximately $250 million
each year for the next three to five years to
continue updating and maintaining our system to
serve our customers' energy needs," said Morris.
"The prices customers are paying today for
transformers, distribution poles, substations and
transmission lines are based on the cost to install
those facilities, in some cases, 40-, 50-, and even
60 years ago. When we replace or update old
equipment with new equipment and technology
today, it costs many times more than when it was
installed."
This power pole in Hayden, Idaho, has
deteriorated to the point where it needs to
be replaced. We have over 240,000
distribution poles in our electric system.
Based on a 40-year depreciable life, we
would need to replace approximately
6,000 poles every year. Avista has an obligation to serve every customer I
who requests it with safe, reliable service while still complying with state and federal
requirements, even when it costs more to do so." said Morris. "We continually strive to reduce
costs and improve efficiency and productivity."
Assisting customers most in need
Avista offers services for customers such as comfort level billing, payment arrangements and
Customer Assistance Referral and Evaluation Services (CARES), specially-trained
representatives who provide referrals to area agencies and churches for customers with special
The IPUC is charged with setting rates that are fair,
just, and reasonable for customers, while allowing
Avista the opportunity to earn a fair return, or profit,
on the investment shareholders have made in the
facilities used to provide service to customers.
needs for help with housing, utilities, medical assistance, and other needs. To learn more, visit
www.avistautilities.com .
Avista's rate application is a proposal, subject to public review and a decision by the Idaho
Public Utilities Commission. A copy of the application is available for public review at the offices
of both the IPUC and Avista, as well as the IPUC's homepage at www.puc.idaho.gov . The IPUC
will begin a comprehensive review of Avista's application and will seek public input on the
Company's request. Additional information about the rate request as well as links to video and
photos are available at www.avistautilities.com .
Avista Corp. is an energy company involved in the production, transmission and distribution of
energy as well as other energy-related businesses. Avista Utilities is our operating division that
provides electric service to 359,000 customers and natural gas to 320,000 customers. Our
service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of
southern and eastern Oregon, with a population of 1.5 million. Avista's primary, non-utility
subsidiary is Ecova, an energy and sustainability management company with over 700 expense
management customers, representing more than 600,000 sites. Our stock is traded under the
ticker symbol "AVA." For more information about Avista, please visit www.avistacorp.com .
This news release contains forward-looking statements regarding the company's current
expectations. Forward-looking statements are all statements other than historical facts. Such
statements speak only as of the date of the news release and are subject to a variety of risks
and uncertainties, many of which are beyond the company's control, which could cause actual
results to differ materially from the expectations. These risks and uncertainties include, in
addition to those discussed herein, all of the factors discussed in the company's Annual Report
on Form 10-K for the year ended Dec. 31, 2011 and the Quarterly Report on Form 10-Q for the
quarter ended June 30, 2012.
SOURCE: Avista Corporation
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