20190501Report.pdf

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Avista Corp.
141 1 East Mission P.O. Box 3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
April30,20l9
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 AVU-G-16-01 - Avista Utilities Ql 2019 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" or "the Company") Ql 2019 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 authorizing 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
we 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.
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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 payment
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 represent the residential payment information for the
Company's Idaho customers by month. Note that these tables represent 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
2015,2016 and2017.
Table No. 5
Year # of Residential
Pavments Fee Free Payments 7o of Total
20ts 7,273,654 71,375 5.60%
2016 7,286,848 82,977 6.45%
2017 1,269,567 155,419 12.2%
Chart No. I graphically shows the trend in fee-free payments in 2019 compared to the
historical annual average in 2015 through 2018.
Chart No. I
ldaho Fee-Free Payments by Month Compared to Historical Averages
25.7% 25.8%
30.v/o
2s.w,25'4%
24.6%
20.wo
75.U/o
12.2%
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0,0Y0
ian Feb Mer Apr May Jun Jul Aug Sep Oct
..+.2019 ..o-2018Avt
-2015Av9 -2015Avg -2017Av' ---2019Av9
Nov Dec
5lPage
To date, the Company has paid invoices through February 2019, of which $673,083 has
been deferred for customer transactions through the fee-free payment program.
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,
.4d4do Ez?rr*t4
Sr. Manager Regulatory Policy
Avista Utilities
6lPage
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 .
Integrated Voice Recognition System (lVR) - 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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