20150731Press Release-Customer Notice.pdf

Gontact:
Media: Debbie Simock [phone] [e-mail]
lnvestors: Jason Lang (509) 49$2930 [e-mail]
Avista 2417 MediaAccess (509) 49S4174
Avista Makes Annual Price Adjustment Filings in ldaho
Changes would rcsult in modest decrease in electric pices effective Oct. 1, 2015 -
SPOKANE, Wash. - Aug. 3,2015,4:00 a.m. PDT: Avista (NYSE: AVA) has made two annual
rate adjustment filings with the ldaho Public Utilities Commission (IPUC or commission) that
could, if approved, result in a modest electric decrease effective Oct. 1, 2015.
These annualfilings are separate from the genera! rate case request filed in June 2015
regarding base retail rates in ldaho and have no impact on the company's earnings.
Power Cost Adjustment (PCA)
The first adjustment is the Avista's annual Power Cost Adjustment (PCA). The PCA is an annual
rate adjustment made to reflect the differences between Avista's actual cost of generating and
purchasing electric power to serve customers and the cost currently included in customer rates.
It is a true-up to reflect the actual cost of power to serve customers.
Part of the proposed PCA rate adjustment decrease is related to the expiration of a surcharge
customers are currently paying in their retail rates. Beginning in October 2014, Avista began
passing through to customers a one-year surcharge of approximately $7.8 million related to last
year's PCA. That surcharge willend Sept. 30, 2015. ln addition, power supply costs in the most
ree,ent 12 months ending June 2015 were approximately $1.0 million lower than those included
in base retai! rates, due primarily to decreased naturalgas and wholesale power prices and
favorable hydroelectric conditions. As a result of the expiration of the prior period PCA
surcharge and the decreased costs for the last 12 months, the proposed decrease to rates is
approximately 3.5 percent, or $8.8 million.
Residential Exchange Program
The second electric rate adjustment is related to the Bonneville Power Administration (BPA)
Residential Exchange Program. The Residential Exchange Program provides a share of the
benefits of the federal Columbia River power system to the residential and small farm customers
of the investor-owned utilities in the Pacific Northwest, including Avista. Avista applies the
benefits it receives, which typically fluctuate from year to year, to customers as a credit in their
monthly electric rates. The benefit Avista will receive from BPA starting in October 2015 will be
lower than the cunent level of benefits currently being passed through to qualifying customers.
As a result of the lower level of benefits, the proposed rate increase to customers is
approximately $g.Z million, or an overall increase of approximately 1.3 percent.
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Net Ghange in Rates
lf approved by the IPUC, the two proposed electric rate changes would result in a net revenue
decrease of approximately 2.2 percent or $5.6 million, effective Oct. 1 ,2015. Residential electric
customers in ldaho using an average of 929 kilowatt hours per month would see their monthly
bills decrease from $85.24 to $84.99, a decrease of $0.25 per month, or 0.3 percent.
The PCA-related decrease applies to all customer rate schedules. PCA rate adjustments are
applied based on a uniform cents per kilowatt-hour change for all rate schedules. Because
there are differences in the basic charges, demand charges, and energy charges between the
various rate schedules, the PCA percentage decrease is different. The decrease in benefits
from the BPA Residential Exchange Program, however, only affects residential and smallfarm
customers.
The electric decreases by rate schedule are:
Residential Service - Schedule 1 0.3o/o
General Service - Schedules 11 & 12 2.60/o
Large General Service - Schedules 21 & 22 3.4o/o
Extra Large General Service - Schedule 25 5.2o/o
Extra Large General Service - Schedule 25P 5.2%
Pumping Service - Schedules 31 & 32 2.6%
Street & Area Lights - Schedules 41-48 1.0o/o
Rate Application Procedure
Avista's applications are proposals, subject to public review and a commission decision. Copies of
the applications are available for public review at the offices of both the commission and Avista, and
on the commission's homepage (uaury.pucidahogov). Customers may file with the commission
written comments related to Avista's filings. Customers may also subscribe to the commission's RSS
feed (http://www.puc.idaho.qov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the
case. Copies of rate filings are also available on Avista's website at www.avistautilities.com/rates.
About Avista Corp.
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 369,000 customers and natural gas to 329,000 customers. lts
service territory covers 30,000 square miles in eastern Washington, northern ldaho and parts of
southern and eastern Oregon, with a population of 1.6 million. Alaska Energy and Resources
Company is an Avista subsidiary that provides retail electric service in the city and borough of
Juneau, Alaska, through its subsidiary Alaska Electric Light and Power Company. Avista 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 ,2014 and the Quarterly Report on Form 10-Q for the
quarter ended March 31,2015.
SOURCE: Avista Corporation
-tGn-
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shirlev.wolf@avistacoro. com
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