HomeMy WebLinkAbout20160526Customer Notification.pdfEXHIBIT B
Customer Notice
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Press Release
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Contact:DRAFT CONFIDENTTAL
Media: Casey Fielder (509) 4954916, capev.fielder@avistacorn.com
lnvestors: Jason Lang (509) 495-2930, iason.lano@avistacorp.com
Avista 2417 Media Access (509) 495-4174
Avista requests electric rate increase in ldaho
Company seeks recovery of cosfs for investments in infrastructure; does not request
increase in naturalgas rafes
SPOKANE, Wash., May 26, 2016, 1:05 p.m. PST: Capital investments in infrastructure and
system maintenance are the main drivers in Avista's (NYSE: AVA) electric request filed today
with the ldaho Public Utilities Commission (IPUC or Commission).
Avista's request, if approved, is designed to increase annual electric revenues effective Jan. 1,
2017, by an overall 6.3 percent or $15.4 million.
The request is based on a proposed rate of return (ROR) on rate base of 7.78 percent with a
common equity ratio of 50 percent and a 9.9 percent return on equity (ROE).
"Serving our customers with safe, reliable energy at a reasonable cost is our priority. We must
continually invest in the facilities and systems we use to serve customers, including
maintenance, replacements and upgrades, to meet their energy needs and expectations now
and into the future. The costs of doing business and making these infrastructure investments
continue to rise, and this is what is driving our general rate requests," Avista Chairman,
President and Chief Executive Officer Scott L. Morris said.
Avista serves more than 128,200 electric customers in ldaho. The IPUC has up to nine months
to review Avista's request.
Capital !nvestments
Capita! investments included in Avista's request include upgrades and maintenance of the
company's generation facilities, transmission and distribution equipment, and technology. Costs
to replace facilities and parts of our system are many times more expensive today than when
originally installed. This is the primary reason for the need to increase rates.
Among the major capital investments in todav's filino are:
. the ongoing and multi-year redevelopment of the 1O5-year-old Little Falls Powerhouse
on the Spokane River to increase generation reliability and the continuing rehabilitation
of the 107-year-old Nine Mile Powerhouse on the Spokane River, including the
replacement of original generators, turbines and other equipment which will increase the
generation of clean, renewable power;. the refurbishment of Post Falls South Channel Dam, built in 1906, with six new spill
gates, frames and hoists along with a new spillway controlsystem, electrical distribution
and concrete facing that enable the structure to continue its role in generating clean,
low-cost renewable energy.
Residential Customer Electric Bi!!
lf Avista's electric request is approved, a residential customer using an average of 918 kilowatt
hourspermonthcouldexpecttoseeabill increaseof $6.54permonth, or7.7 percent,fora
revised monthly bill of $91.26. The bill change includes a proposed increase of $1.00 per month
in the basic charge, from $5.25 to $6.25 per month.
The requested electric increase by service schedule is as follows:
Customer Assistance
To assist customers in managing their energy bills, Avista offers services for customers such as
comfort level billing, payment arrangements, and Customer Assistance Refenal and Evaluation
Services (CARES), which provide assistance to customers through referrals to area
organizations for help with housing, utilities, medical assistance and other needs. Avista also
provides support to customer assistance funds such as Project Share as well as energy
efficiency and outreach programs that help customers manage their energy use. To learn more,
visit www.avistautilities.com. There, customers can also find information on energy efficiency
rebates and incentives, as well as online tools for managing energy use.
More lnformation
Avista's application is a proposal, subject to public review and a decision by the Commission. A
copy of the application is available for public review at the offices of both the Commission and
Avista, and on the Commission's homepage (www.puc.idaho.oov). Customers may also
subscribe to the Commission's RSS feed (httplAryww.puc.idaho.qov/rssfeeds/rss.htm) to receive
periodic updates via e-mail about the case. The Commission will begin a comprehensive review
of Avista's application and will seek public input. lf you would like to submit comments on the
proposed increase, you can do so by going to the Commission website or mailing comments to:
Rate Schedule Proposed Billing lncrease
Residential Service - Schedule 1 7.7 percent
General Service - Schedules 11 & 12 4.5 percent
Large General Service - Schedules 21 & 22 5.6 percent
Extra Large General Service - Schedule 25 4.7 percent
Extra Large General Seruice 25P - Schedule 25P 4.5 percent
Pumping Service - Schedules 31 & 32 7.5 percent
Street & Area Lights - Schedules 41 - 49 8.2 percent
Total 6.3 percent
ldaho Public Utilities Commission
P. O. Box 83720
Boise, lD 83720-0074
Additional information about Avista's rate request, including a video, is available at
www. avistautilities. com/id 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 375,000 customers and natural gas to 335,000 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 Liqht and Power Companv. 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 ,2015 and the Quarterly Report on Form 10-Q for the
quarter ended March 31,2016.
SOURCE: Avista Corporation
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