20171208Comment.pdf

Diane Holt
From:Diane Holt
Sent:Friday,December8,2017 4:46 PM
To:Diane Holt
Subject:FW:Comment:Case No.AVU-E-17-01
RE:Case No.AVU-E-17-01
Idaho Utilities Commission,
In June 2017 Avista requested approval of a two year plan for electric rate increase of $28.5 million ($18.6 in
2018 and $9.9 in 2019)
and avoid requesting another rate increase before January 1,2020.The purposes for these increases was
reported to be for capital
improvements including rewinding their Kettle Falls generator,rebuilding substations at Priest River and
Kamiah and required
transmission projects,all totaling$56.3 million.
In October 2017 Avista Corp.'s senior vice president announced that a settlement proposal for a total two year
rate increase of $17.4
million was "fair and reasonable"for both customers and shareholders.So,why did Avista request increases
of $28.5 million.This
stronglyis cause for question of forthrightnessby Avista in their rate request.
It is my understanding that rate increases are most likely to be included in consumer electric bills for
evermore.If so,a rate increase
of $17.4 million will fully repay Avista for the planned capital improvementcosts in less than four years
time.And the next rate
increase,likely to be requested in 2020,will be as a compounding of this increase as it is of every rate increase
since the company
was founded in 1889.How is it that capital expenditures are not paid for from the retained earnings or the
sale of stock?How is
it when the utilityrecaptures the cost of the improvements that rates are not reduced but continue forever
more?
The Idaho Utilities Commission is undoubtedlyaware of Avista"s proposed electric rate increases to the state
of Washington
Commission for $61.4 million in 2018,$14 million in 2019,and $14.4 million in 2020.The Public Counsel Unit
of the Washington
Attorney General's Office have recommended increasing the electric rates $7.5 million in 2018 only and urges
the Commission
to reject the three year plan.The Washington Commission has recommended increasing electric rates by $10
million in 2018,
$11.4 million in 2019 and $11.7 million in 2020.
1
The monthlybase rate increase request from $5.75 to $6.00 (only 25 cents is $3.00 per year).For the 128,200
Idaho customers
that is $384,600.00 annuallyadded to the $8,845,800.00 present annual base if approved will be a new annual
base becomes
$9,230,400.00 annually.This is a substantial amount of money,not 25 cents.
Does Avista truly have a need for a rate increase for shareholders?The per share price/value increased 24%
in June 2017 the
day followingthe Avista announcement they planned to sell Avista Corp.As of December 4,2017 the
price/value of one share
of stock owned for the past twelve months increased 32.9%.The sale of Avista Corp was approved by the
company's
stockholders.This display of willingsellers and buyers indicates to me the shareholders are pleased with the
price/value without
increased electric rates.
What if rate increases of electric rates are approved for differing amounts by different state utility
Commissions?Would the
customers of each state be paying a disproportionate share for the utilities fundingfor like services?
Thank You Commissioners for reviewing and considering my comments in this case.
Dean Gentry