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Avista Corp.
l41l East Mission P.O.Box3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
VIA: UTC Web Portal
July 31, 2018
State of Idaho
Idaho Public Utilities Commission
472W. Washington St.
Boise,ID 83702-5983
Attention: Ms. Diane Hanian, Secretary
Case Nos. AVU-E-16-01 and AW-G-16-01 - Avista Utilities Q2 2018 Fee-Free
Payment Program Report
Dear Ms. Hanian:
Attached for filing with the Commission is an original and seven (7) copies of Avista
Corporation's, dba Avista Utilities ("Avista" of "the Company") Q2 2018 Fee-Free Payment
Program Report.
On April 1,2016 the Commission issued Order No. 33494 in Case Nos. AVU-E-16-01
and AVU-G-16-01 approving Avista's petition for an order authoizing accounting and
ratemaking treatment of its residential fee-free payment program. In its petition, the Company
sought to defer the costs associated with offering the fee-free payment for up to 36 months from
the time the program went into effect. The fee-free payment program was successfully launched
February 19,2017.
In its petition, the Company agreed to provide updates to the Commission every six
months about the program's progress. In the Company's Washington and Oregon jurisdictions it
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agreed to provide updates to the Commission every three months. For consistency across
jurisdictions and ease of reporting, the Company will be providing updates to the Idaho
Commission every three months that coincide with the quarters of the calendar year.
Avista's residential fee-free payment program encompasses previous methods of
payments that were assessed a fee or not available. The program includes the following payrnent
methods and channels:
o Credit and debit card payments made through a Customer Service Representative
(CSR), through the Company's Integrated Voice Recognition (IVR) system, through
its website as a one-time guest payment, through its website as an authenticated user,
and for Automatic Payment Service (APS) payments.
o Automated Clearing House (ACH) payments made through a CSR, through the
Company's IVR system, and through its website as a one-time guest payment.
Prior to the launch of the program, customers could make payments free of charge by
ACH when making an electronic payment through the Company's website as an authenticated
user, or when signed up for APS payments, in which payments are automatically deducted from
their checking or savings account. Also, prior to the launch of the program APS payments were
limited to only ACH payment methods.
Tables No. 1 and No. 2 below represents the residential payment information for the
Company's Idaho customers by month. Note that these tables represents only residential
payments and that some forms of non-residential customer payments are still assessed a fee.
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For historical comparison purposes, Table No. 5 displays residential payment data from
2015 and 2016.
Table No.5
Year # of Residential
Payments
Payments Subject
to Convenience Fee 7o of Total
20t5 1,273,654 7r,375 5.60%
20t6 1,286,848 82,977 6.45%
Chart No. I graphically shows the trend in fee-free payments in2017 and 2018 compared
to the historical annual average in 2015 and2016.
Chart No. I
ldaho Fee-Free Payments by Month Compared to Historical Averages
25.00/"
21.so/. 20.7%27.2%
2O.O% 2O.5%
79.O%L6.4% 76.9%
74.5%14.8%
75.0%
72.2%
70.0%
73.O% 73.0%t2.2%
8.5%10.4% 70.7%9.8%7.0%
6.5%
5.6%s.0%
0.0%
Jan Feb Mar Apr May Jun Jul Aug Sep
+2018 +2017
-2015
Av8
-2016
Avg
-2017
Avg +2018 Av8
Oct Nov Dec
To date, the Company has paid invoices through May 2018, of which $382,375 has been
deferred for customer transactions through the fee-free payment program.
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Please direct any questions regarding this report to Joel Anderson at 509-495-2811
([e-mail]) or myself at 509-495-4975 ([e-mail])
Sincerely
.4i4dd Eour4tl
Sr. Manager Regulatory Policy
Avista Utilities
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Definitions
Automated Clearing House (ACH) - an electronic network for financial transactions in the United States.
Payments made by checking or savings accounts.
Automatic Payment Service (APS) - payment option by which a customer can sign up to have payments
automatically deducted from their checking account, savings account, debit card, or credit card on their
bill due date each month.
Bank Bill Payments - payments initiated through a customer's bank account and transferred to the
Company via ACH.
Card Payments - debit and credit card payments.
Customer Service Representative (CSR) - Avista employee who works in its Customer Service
Department and answers customer phone calls.
CSR Payments - payments taken by Avista's Customer Service Representatives over the phone.
Fiserv - Avista's payment processing vendor as of February 19,2017.
lntegrated Voice Recoguition System (IVR) - Avista's automated phone system a customer first reaches
when calling the Company at 1-800-227-9187.
IVR Payments - payments received through the Company's IVR system.
Kubra - Avista's payment processing vendor prior to February 19,2017.
Mailed & Lobby Payments - payments mailed to the Company or taken in one of the Company's lobbies
located in Spokane, Washington, Coeur d'Alene, Idaho, or Lewiston, Idaho. These also include payments
placed in drop boxes at the Company's office centers.
Pay Station Payments - payments made at authorized Company pay stations.
Web Based Payments - payments made on the Company's website.
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