20170918Final Press Release and Customer Notice.pdf

Avista Corp.
'1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]TollFree 800-727-9170
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Gorp.
September 15,2017
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, lD 83702
ITE Final Form of Press Release and Customer Notice in
Case Nos. AVU-E-l 7-01IAVU-G-1 7-01
Please find attached the final form of both the Press Release and Customer Notice in the
Cases retbrenced above.
If you have any questions regarding this filing, please call Patrick Ehrbar at (509) 495-
8620 or Jennifer Smith at [phone].
Sincerely,
/S/David Meyer
David J. Meyer
Vice President & Chief Counsel for
Regulatory and Governmental Affairs
Enclosures
Gontact:
Media: Casey Fielder (509) 495-491 6, [e-mail]
lnvestors: Jason Lang [phone], [e-mail]
Avista 2417 Media Access [phone]
Avista requests electric and natural gas rate changes in ldaho
Company seeks recovery of cosfs for investments in infrastructure and technology
SPOKANE, Wash. June 9, 2017,1:05 p.m. PST: Capital investments in infrastructure, system
maintenance, and technology and increased power supply costs are the main drivers in Avista's
(NYSE: AVA) request filed today with the ldaho Public Utilities Commission (IPUC or
Commission).
"Our customers expect their energy to be there when they need it, and so do we. To meet these
expectations, we're continually investing in our systems in an effort to maintain reliability and
deliver value, at a reasonable cost for customers," Avista Chairman, President and Chief
Executive Officer Scott L. Morris said.
These investments include the rehabilitation and maintenance of generating plants and
distribution and transmission infrastructure that is necessary to serve customers. The work to
upgrade and modernize this equipment will enable it to run efficiently and serve our
communities for decades to come, said Morris. Avista's rates are cost-based, where the costs
related to projects that are included in customer rates reflects the cost of the equipment when it
was installed, decades ago. As the company replaces the turbines, generators, poles and other
equipment, the costs are many times more expensive today. This is a primary reason for the
request to increase rates, he added.
"We understand that increasing prices can be a challenge. This is a key consideration as we
make decisions about how and where to invest," Morris said.
Two-Year Rate Plan
The proposal is a two-year rate plan for calendar years 2018 and 2019, with new rates taking
effect Jan. 1 , 2018 and Jan. 1, 2019. This plan would create a stay-out period where Avista
would not file a new general rate case for a new rate plan to be effective prior to Jan. 1, 2020.
This would provide customers with some predictability in their expected future energy prices.
Avista's Requests
Avista's request, if approved, is designed to increase annual electric billed revenues by $18.6
million or 7 .9 percent, effective Jan. 1 , 2018 and $9.9 million or 4.2 percent effective Jan. 1 ,
2019.
For natural gas, the rate request is designed to increase annual billed revenues by $3.5 million
or 5.7 percent, effective Jan. 1 , 2018 and $2.1 million or 3.3 percent effective Jan. 1 , 2019.
Aii-rtsra
The electric and natural gas requests for the January 2018-December 2019 rate periods are
based on a proposed rate of return (ROR) on rate base of 7.81 percent with a common equity
ratio of 50 percent and a 9.9 percent return on equity (ROE).
The company is not proposing to update base power supply costs for year two of the rate plan,
but rather have any differences flow through the Power Cost Adjustment (PCA) mechanism.
Avista serves more than 128,200 electric customers in ldaho. The IPUC has up to nine months
to review Avista's request.
Capital lnvestments
Avista's capital investment plans address the need to replace infrastructure that has reached
the end of its useful life, as well as respond to the need for reliability and technology
investments required to build the integrated energy services grid for today and into the future.
Among the capital investments in today's filing are:
. Generator rehabilitation at the Kettle Falls biomass plant that will ensure efficient
generation and operations.o The ongoing project to systematically replace portions of natural gas distribution pipe in
Avista's service area that were installed prior to 1987 as well as replacement of other
natural gas service equipment.. Transmission and distribution system investment, such as wood pole replacements,
feeder upgrades, and substation and transmission line rebuilds to maintain reliability for
our customers.o Technology upgrades that support necessary business processes and operational
efficiencies that allow Avista to effectively manage the utility and serve customers.. A refresh of the customer-facing website, providing relevant information, greater
accessibility on mobile devices, easier navigation, and a streamlined payment
experience.
New and Expiring Rebates
As a result of the 2015 general rate case, customers are currently receiving a rebate of
approximately $2.7 million for 2017 that expires on Dec. 31, 2017 . ln this filing, Avista has
proposed to replace approximately one half of the current rebate in 2018 with $1.5 million
related to the 2015 earnings sharing. The net effect of the new and expiring rebate for 2018 is a
billed increase of approximately $1.2 million.
Residentia! Customer Bills
Electric
Effective Jan. 1. 2018: Residential customers using an average of 910 kilowatt hours per month
would see their monthly bills increase from $86.39 to $93.42, an increase of $7.03 or 8.1
percent per month. As a part of the request, Avista is proposing that the basic monthly charge
for residential service currently set at $5.75 per month increase to $6.00 per month.
Effective Jan. 1 , 2019: Residential customers using an average of 910 kilowatt hours per month
would see their month
percent per month.
ly bills increase from $93.42 to $97.44, an increase of $4.02 or 4.3
Natural Gas
Effective Jan. 1, 2018: Residential customers using an average of 61 therms per month would
see would see their monthly bills increase from $51.10 to $54.47, an increase of $3.37 per
month or 6.6 percent. As part of the request, Avista is proposing that the basic monthly charge
for residential service currently set at $5.25 increase to $6.00 per month.
Effective J . 1. 2019: Residential customers usin g an average of 61 therms per month would
see their monthly bills increase from $54.47 to $56.54, an increase of $2.07 per month or 3.8
percent.
Changes by Service Schedule
The requested electric increase by service schedule is as follows:
The requested naturalgas increase by service schedule is as follows:
Rate Schedule Proposed 2018 Billing
lncrease
Proposed 2019 Billing
!ncrease
Residential Service - Schedule 1 8.1 percent 4.3 percent
General Service - Schedules 11 & 12 7.5 percent 4.0 percent
Large General Service - Schedules 21
&22
8.2 percent 4.4 percent
Extra Large General Service -
Schedule 25
7.7 percent 4.3 percent
Extra Large General Service 25P -
Schedule 25P
7.2 percent 4.1 percent
Pumping Service - Schedules 31 & 32 8.8 percent 4.6 percent
Street & Area Lights - Schedules 41 -
49
7.5 percent 3.8 percent
Total 7.9 percent 4.2 percent
Rate Schedule Proposed 2018 Billing
!ncrease
Proposed 2019 Billing
lncrease
General Service - Schedule 101 6.6 percent 3.8 percent
Large General Service - Schedules
111 & 112
2.2 percent 1.3 percent
Transportation Service - Schedule 146
(excludes commodity and interstate pipeline
transportation costs)
9.2 percent 5.0 percent
Total 5.7 percent 3.3 percent
liirtsra
Additional information about Avista's rate request and energy prices is available at
www. mvavista. com/rates.
Customer Resources
To assist customers in managing their energy bills, Avista offers services for customers such as
comfort level billing, payment arrangements and Customer Assistance Referral and Evaluation
Services (CARES), which provide assistance to special-needs customers through referrals to
area agencies and churches for help with housing, utilities, medical assistance and other needs.
Avista also partners with community action agencies in administering the Project Share bill
payment assistance program.
Avista provides energy efficiency and outreach programs that include rebates and incentives as
well as tips and resources to help customers manage their energy use and energy bills.
Customers can learn more at www.mvavista.com.
Rate Application Procedure and Additional lnformation
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
Avista, and on the Commission's website (www.puc.idaho.oov). Customers may file with the
Commission written comments related to the Company's filing. 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 the rate filing is also available on our website,
www. mvavista. comirates.
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:
ldaho Public Utilities Commission
P. O. Box 83720
Boise, lD 83720-0074
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 the operating division that
provides electric service to 379,000 customers and natural gas to 342,000 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 incl 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 , 2016 and the Quarterly Report on Form 10-Q for the
quarter ended March 31,2017 .
-1724-
To unsubscribe from Avista's news release distribution, send a reply message to
lena.funston@avistacorp. com
/',irrttsta
lmportant Notice for ldaho Electric and Natural Gas Customers
On June 9,2017, Avista filed an application with the ldaho Public Utilities
Commission (Commission) to rncrease ldaho electric and natural gas rates.
These requests are primarily driven by capital investments, operations and
maintenance costs, and continuing emphasis on providing customers with
safe and reliable electrrc and natural gas service.
The proposal is a two-year rate plan which would increase electric billed
revenues by $18.6 million or 7.9% effectiveJan. 1,2018, and by $9.9 million
or 4.2o/o effective )an. 1,2019. The request would increase natural gas brlled
revenues by $3.5 million or 5.7o/o effective Jan. 1, 20'18, and by $2.1 million
or 3.3o/o effective )an. 1,2019. More information on the requested price
change is available at www.myavirta.com/rates.
As a part of the application, Avista has proposed to use funds related to its
2015 electric earnings sharing to replace a portion of the approximately $2.7
mrllion rebate customers are receiving in 2017.lf approved, that rebate would
be in effect for 2018, and expire Jan. 1,2019.
For 20'18, the proposed bill increase for a residential customer using an
average of 910 kWhs per month would see their monthly bills increase from
$86.39 to $93.42, an increase of $7.03 or 8.1o/o per month. As a part of
the request, Avista is proposing that the basic monthly charge for residential
service currently set at $5.75 per month increase to $6.00 per month. For
2019, the proposed bill increase for residential customers using an average of
910 kWhs per month would see their monthly bills increase from $93.42 to
$97 .44, an increase of $4.02 or 4.3o/o per month.
lmportant Notice for ldaho Electric and Natural Gas Customers
On June 9,2011 , Avista filed an application with the ldaho Public Utilities
Commission (Commission) to increase ldaho electric and natural gas rates.
These requests are primarily driven by caprtal investments, operations and
maintenance costs, and continuing emphasis on providing customers with
safe and reliable electric and natural gas service.
The proposal is a two-year rate plan which would increase electric billed
revenues by $18.6 million or 7.9% effective Jan. 1, 2018, and by $9.9 million
or 4.2o/o effective )an. 1 ,2019. The request would increase natural gas billed
revenues by $3.5 million or 5.7o/o effective Jan. 1, 20'18, and by $2.1 million
or 3.3o/o effective lan. 1 , 20'l 9. More information on the requested price
chan ge is available at www.myavista.com/rates,
As a part of the application, Avista has proposed to use funds related to its
2015 electric earnings sharing to replace a portion of the approximately $2.7
million rebate customers are recerving in 2017.|f approved, that rebate would
be in effect Ior 2018, and expire Jan. 1, 2019.
For 2018, the proposed bill increase for a residential customer using an
average of 910 kWhs per month would see their monthly bills increase from
$86.39 to $93.42, an increase of $7.03 or 8.1o/o per month. As a part of
the request, Avista is proposing that the basic monthly charge for residential
service currently set at $5.75 per month increase to $6.00 per month. For
2019, the proposed bill increase for residential customers using an average of
910 kWhs per month would see their monthly bills increase from $93.42 to
$97.44, an increase of $4.02 or 4.3o/o per month.
lmportant Notice for ldaho Electric and Natural Gas Customers
On June 9,2017, Avista filed an application with the ldaho Public Utilities
Commission (Commission) to increase ldaho electric and natural gas rates.
These requests are primarily driven by capital rnvestments, operations and
maintenance costs, and continuing emphasis on providing customers with
safe and reliable electric and natural gas service.
The proposal is a two-year rate plan which would increase electric billed
revenues by $18.6 million or 7.9% effective Jan. '1, 20'18, and by $9.9 million
or 4.2o/o effective lan. 1, 20 1 9. The request would increase natural gas billed
revenues by $3.5 million or 5.7o/o effectrve Jan. 1, 2018, and by $2.1 million
or 3.3o/o effective )an. 1,2019. More information on the requested price
change is available at www.myavista,com/rates.
As a part of the application, Avista has proposed to use funds related to its
2015 electric earnings sharing to replace a portion of the approximately $2.7
million rebate customers are receiving in 2017.lf approved, that rebate would
be in effect for 2018, and expire )an. 1, 2019.
For 2018, the proposed bill increase for a residential customer using an
average of 910 kWhs per month would see their monthly bills increase from
$86.39 to $93.42, an increase of $7.03 or 8.1o/o per month. As a part of
the request, Avista is proposing that the basic monthly charge for residential
service currently set at $5.75 per month increase to $6.00 per month. For
2019, the proposed bill increase for residential customers using an average of
910 kWhs per month would see their monthly bills increase from $93,42 to
$97 .44, an increase of $4.02 or 4.3oh per month.
Electric
The proposed increase above current billing rates by service schedule is as follows
AEvtsra
Electric
The proposed increase above current billing rates by service schedule is as follows:
AEvtsra
Electric
The proposed increase above current billing rates by service schedule is as follows:
Rate Schedule Proposed 20'18
Billing lncrease
Proposed 2019
Eilling lncrease
Residential Service - Schedule 1 8.'l percent 4.3 percent
General Service - Schedules I 1 & 12 7.5 percent 4.0 percent
Large General Servrce - Schedules 21 &22 8.2 percent 4.4 percent
Extra Large General Service - Schedule 25 7.7 percent 4.3 percent
Extra Large General Service 25P -
Schedule 25P
7.2 percent 4.1 percent
Pumping Service - Schedules 31 & 32 8.8 percent 4.6 percent
Street & Area Lights - Schedules 41 - 49 7.5 percent 3.8 percent
Total 7.9 percent 4.2 percent
Rate Schedule Proposed 2018
Billing lncrease
Proposed 2019
Billing lncrease
Residential Service - Schedule 1 8.1 percent 4.3 percent
General Service - Schedules 1 1 & 12 7.5 percent 4.0 percent
Large General Service - Schedules 21 & 22 8.2 percent 4.4 percent
Extra Large General Service - Schedule 25 7.7 percent 4.3 percent
Extra Large General Service 25P -
Schedule 25P
7.2 percent 4.1 percent
Pumping Service - Schedules 3l & 32 8.8 percent 4.6 percent
Street & Area Lights - Schedules 41 - 49 7.5 percent 3.8 percent
Total 7.9 percent 4.2 percent
Rate Schedule Proposed 2018
Billing lncrease
Proposed 2019
Billing lncrease
Residential Service - Schedule 1 8.1 percent 4.3 percent
GeneralService-Schedules 11 & l2 7.5 percent 4.0 percent
Large General Service - Schedules 21 & 22 8.2 percent 4.4 percent
Extra Large General Service - Schedule 25 7.7 percent 4.3 percent
Extra Large General Service 25P -
Schedule 25P
7.2 percent 4.1 percent
Pumping Service - Schedules 31 & 32 8.8 percent 4.6 percent
Street & Area Lights - Schedules 41 - 49 7.5 percent 3.8 percent
Total 7.9 percent 4.2 percent
Aliiwsra
Rate Schedule Proposed 2018
Billing lncease
Proposed 2019
Billing lncrease
General Service - Schedule 101 6.6 percent 3.8 percent
Large General Service - Schedules 11 1 & 1 12 2.2 percent 1.3 percent
lnterruptible Servrce - Schedules 131 & 132 0.0 percent 0.0 percent
Transportation Service - Schedule 146
(excludes commodity and intestate pipeline
transpoftation costs)
9.2 percent 5.0 percent
Total 5.7 percent 3.3 percent
Natural Gas
The proposed increase above current billing rates by service schedule is as follows:
For 2018, the proposed increase for residentjal customers using an average of 61
therms per month would see therr monthly bills increase from $51.10 to $54.47, an
increase of $3,37 per month or 6.6%. As part of the request, Avista is proposing
that the basic monthly charge for residential service currently set at $5.25 increase to
$6.00 per month. For 201 9, the proposed increase for residential customers using an
average of 61 therms per month would see their monthly bills increase trom $54.41
to $56.54, an increase of $2.07 per month ot 3.8o/o.
Natural Gas
The proposed increase above current billing rates by service schedule is as follows:
For 2018, the proposed increase for residential customers using an average of 61
therms per month would see their monthly bills increase from $51 .1 0 to $54.47, an
increase of $3.37 per month or 6.6%. As part of the request, Avista is proposing
that the basic monthly charge for residential service currently set at $5.25 increase to
$6.00 per month. For 201 9, the proposed increase for residential customers using an
average of 61 therms per month would see their monthly bills increase from $54.47
to $56.54, an increase of $2.07 per month ot 3.8o/o.
Natural Gas
The proposed increase above current billing rates by service schedule is as follows:
For 2018, the proposed increase for residential customers using an average of 61
therms per month would see their monthly bills increase from $51.10 to $54.47, an
increase of $3.37 per month or 6.60/o. As part of the request, Avista is proposing
that the basic monthly charge for residential service currently set at $5.25 increase to
$6.00 per month. For 201 9, the proposed increase for residential customers using an
average of 61 therms per month would see their monthly bills increase from $54.47
to $56.54, an increase of $2.07 per month or 3.8o/o.
Avista's application is a proposal, sub.lect 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 Avista, and on the Commissions website (vwwv.puc.
idaho.gov). Customers may file with the Commission written comments related
to the Companys filing. Customers may also subscribe to the Commission s RSS
feed (http:/Arvww.puc.idaho.gov/rssfeedy'rss.htm) to receive periodic updates via
e-mail about the case. Copies of the rate filing are also available on our website,
www.myavista.com/rates.
The Commission has up to nine months to review the Companys rate rncrease
requests. The Commission will begin a comprehensive review of Avistab
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:
ldaho Public Utilities Commission
P. O. Box 83720
Boise, lD 83720-0074
Avista offers a number of programs and services to help customers manage their
energy use and costs. Visit wr.vw.myavista.com for information on these programs
which include Comfort Level Billing, bill payment options, automated payment
service, assistance programs, conservation tips, and energy efficiency rebates.
AVA251 i
Avista's application is a proposal, subject to public review and a Commission
decisron. A copy of the application is available for public review at the offices of
both the Commission and Avista, and on the Commission's website (vwvw.puc.
idaho.gov). Customers may file with the Commission written comments related
to the Companys filing. Customers may also subscribe to the Commission3 RSS
feed (http:/ ryww.puc.idaho.gov/rssfeedVrss.htm) to receive periodic updates via
e-mail about the case. Copies of the rate filing are also available on our website,
wwwmyavista.com/rates.
The Commission has up to nine months to review the Companys rate increase
requests. 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:
ldaho Publi< Utilities Commission
P. O. Box 83720
8oise, lD 83720-0074
Avista offers a number of programs and services to help customers manage therr
energy use and costs. Visit wwwmyavrsta.com for information on these programs
which include Comfort Level Billing, bill payment options, automated payment
service, assrstance programs, conservation tips, and energy efficrency rebates.
AVA251 i
Avista'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 Avista, and on the Commrsston s website (www.puc.
idaho.gov). Customers may file with the Commissron written comments related
to the Companys filing. Customers may also subscribe to the Commission's R55
feed (http://www.puc.idaho.gov/rssfeedy'rss.htm) to receive periodic updates via
e-mail about the case. Copies of the rate filing are also available on our website,
www'myavista,com/rates.
The Commission has up to nine months to review the Company3 rate increase
requests. The Commission will begin a comprehensive review of Avistas
application and will seek public input.
lf you would ilke to submit comments on the proposed increase, you can do so by
golng to the Commission website or mailang comments to:
ldaho Public Utilities Commission
P. O. Box 83720
Boise, lD 83720-0074
Avista offers a number of programs and services to help customers manage their
energy use and costs. Visit vwwv.myavista.com for information on these programs
which include Comfort Level Billing, bill payment options, automated payment
service, assistance programs, conservation tips, and energy efficiency rebates.
Rate Schedule Proposed 2018
Billing lncrease
Proposed 2019
Billing lncrease
General Service - Schedule 101 6.6 percent 3.8 percent
Large General Service - Schedules 111 & 112 2.2 percent 1.3 percent
lnterruptible Service - Schedules 131 & 132 0.0 percent 0.0 percent
Transportation Service - Schedule 146
(excludes commodity and interstate pipeline
transpoftation costs)
9.2 percent 5.0 percent
Total 5.7 percent 3.3 percent
Rate Schedule Proposed 2018
Billing lncrease
Proposed 2019
Billing lncrease
General Service - Schedule 101 6.6 percent 3.8 percent
Large General Service - Schedules 1'l 1 & 1 12 2.2 percent '1.3 percent
lnterruptible Service - Schedules 131 & 132 0.0 percent 0.0 percent
Transportation Service - Schedule 146
(excludes commodity and interstate pipeline
transportation costs)
9.2 percent 5.0 percent
Total 5.7 percent 3.3 percent
AVA251 i