20170804Press Release and Customer Notice.pdf

Avista Corp.
l4l1 East Mission P.O.Box3727
Spokane, Washington 99220-3727
Telephone [phone]
Toll Free 800-727-9170
ldaho Public Utilities Commission
Otfice of the SecretaryBECEIVED
AUG 0 \ 2017
Diane Hanian
Commission Secretary
ldaho Public Utilities Commission
472W. Washington St.
Boise, lD 83702
Boise, ldaho
Re: Case No. AVU-E-17-04
Electric Fixed Cost Adjustment Annual Rate Filing of Avista Corporation
Dear Ms. Hanian:
Enclosed for electronic filing with the Commission is a copy of the News Release and Customer
Notice issued in Case No. AVU-E-17-04. The News Release was issued on August 1,2017, and
the Customer Notice will run in customer bills from August 8 through August 24,2017. Because
certain customers would not receive the notice in a timely fashion given the Commission's
comment deadline and the Company's billing cycle, the Company mailed (or emailed for
electronic billing customers) a copy of the customer notice to those customers who would not
receive a bill in the time period noted above.
Please direct any questions on this matter to me at [phone].
Patrick Ehrbar
Senior Manager, Rates and Tariffs
Enclosures
{mtsrr
Corp.
August 4,2017
Page I of I
Alistsra
Contact:
Media: Casey Fielder (509) 495491 6 [e-mail]
lnvestors: Jason Lang [phone] [e-mail]
Avista 24tT Medta Access (509) 49S4174
Avista Makes Annual Price Adjustment Filings in ldaho
Reguesfs would result in change in electric prices effective Oct. 1, 2017
SPOKANE, Wash. - Aug. 1,2017, 1:05 p.m. PDT: Avista (NYSE: AVA) has made annual rate
adjustment filings with the ldaho Public Utilities Commission (IPUC or Commission) that if
approved, are designed to increase overal! electric revenues by $Z.g million or 1.1 percent
effective Oct. 1 ,2017.
These annual filings are separate from the general rate case request filed in June 2017
regarding base retail rates in ldaho, have no impact on the company's earnings, and are not
related to the proposed acquisition of Avista by Hydro One.
Customer Bi!!s
lf approved, residential electric customers in ldaho using an average of 910 kilowatt hours per
month would see their monthly bills increase from $86.39 to $88.12, an increase of $1.73 per
month, or approximately 2.0 percent. The proposed electric rate changes would be effective
Oct. 1 ,2017.
The requested electric rate changes by rate schedule are:
Residential Service - Schedule 1
General Service - Schedules 11 & 12
Large General Service - Schedules 21 &22
Extra Large General Service - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 31 & 32
Street & Area Lights - Schedules 4149
Overall
2.0%
1.7o/o
1.go/o
-2.9o/o
-3.10/o
1.8%
O.9o/o
11%
Power Cost Adjustment (PCA)
The first adjustment is Avista's annual Power Cost Adjustment (PCA). The PCA is an annual
rate adjustment made to reflect certain differences between Avista's actual cost of generating
and purchasing electric power to serve customers and the cost currently included in customer
rates. !t is a true-up to reflect the actual cost of power to serve customers.
The proposed PCA rate adjustment would rebate to customers approximately $7.3 million
effective Oct. 1 ,2017. The rebate is primarily associated with power supply costs that were
lower than those included in base retail rates, due to lower wholesale electric and natural gas
prices. As a result of Avista's PCA filing last year, the Commission approved a rebate of
approximately $0.S million. That rebate will end Sept. 30, 2017. The net effect of the expiring
rebate, and the proposed rebate, is an overall decrease in revenue of approximately 2.7
percent, or $6.8 million.
Residential Exchange Program
The second adjustment is related to the Bonneville Power Administration (BPA) Residential
Exchange Program. The Residential Exchange Program provides a share of the benefits of the
federal Columbia River power system to the residential and small farm customers of the
investor-owned utilities in the Pacific Northwest, including Avista. Avista applies the benefits it
receives, which typically fluctuate from year to year, to customers as a credit in their monthly
electric rates. The benefit Avista will receive from BPA starting in October 2017 will result in a
slightly higher level of benefits than is currently being passed through to qualifying customers.
As a result of the higher level of benefits, the proposed revenue decrease for residential and
smallfarm customers is approximately $0.2 million, or an overall decrease of approximately 0.1
percent.
Energy Efficiency
The third rate adjustment is related to the funding of Avista's electric energy efficiency
programs. This filing is a true-up, adjusting the amount of funding that is collected in customer
rates needed to run the programs, including the rebates and incentives paid to customers, so
that it aligns with the actual costs to deliver the programs. Avista's programs are based on
providing a financial incentive, or "rebate," for cost-effective energy efficiency measures with a
simple payback less than 15 years. This includes approximately 300 measures that are
packaged into about 30 programs, providing choices for our customers. lf approved, the
proposed change associated with this filing is designed to increase revenue by approximately
$3.9 miltion, or an overall increase of approximately 1.6 percent.
Electric Fixed Cost Adjustment
The fourth rate adjustment is related to Avista's electric fixed cost adjustment mechanism
(FCA). The FCA mechanism is designed to break the link between a utility's revenues and
customers' energy usage. Avista's actual revenue, based on kilowatt hour sales, will vary, up or
down, from the level included in a general rate case and approved by the Commission. This
could be caused by changes in weather, energy conservation or the economy. Generally, under
the FCA Avista's electric revenues are adjusted each month based on the number of customers,
rather than kilowatt hour sales. The difference between revenues based on sales and revenues
based on the number of customers is surcharged or rebated to customers beginning in the
following year. For electric operations, the rate adjustment is designed to increase revenues by
approximately $S.g million, or 2.3 percent. This rate adjustment is driven primarily by a lower
level of customer usage in 2016 due in part to a warmer than normal winter, and does not apply
to Avista's Extra Large General Service Schedules.
Rate Application Procedure
Avista's applications are proposals, subject to public review and a Commission decision. Copies of
the applications are 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 Avista's filings. 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 rate filings are also available on Avista's website at www.mvavista.com/rates.
About Avista Corp.
lYnutsr,a
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 379,000 customers and naturalgas to 342,000 customers. lts
service tenitory covers 30,000 square miles in eastem Washington, northern ldaho and parts of
southern and eastern Oregon, with a population of 1.6 million. Alaska Energy and Resources
Gompany 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 fonrard-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 , 2016 and the Quarterly Report on Form 10-Q for the
quarter ended March 31,2017.
SOURCE: Avista Corporation
-1739-
To unsubscribe from Avista's news release distribution, send a reply message to
[e-mail]
Aiit!tsr,
lmportant Notice for ldaho Electric Customers
August 2017
lmportant Notice for ldaho Electric Customen
August 2017
lmportant Notice {or ldaho Electric Customers
August 2017
Propor.d Elrctri( R.t. AdiuitnGntt to bc Eftediw Oct. 1, 2017
Avista has filed four annual rate adjustment requests with the ldaho
Publi( Utilities Commission (Commission), that if approved, are designed
to increase overall electric revenues by 12.8 million or 1.1 percent
elfective Oct. 1, 2017. These annual filings are separate from the general
rate (ase reque5t filed in lune 2017 regarding base retail rates in ldaho,
have no impact on the company's earnings, and are not relaled to th€
propoled a(quisition of Avista by Hydro One.
The fiEt adlustment is Avista's annual Power Cost Adjustment {PCA).
The PCA is an annual rate adjustmenl made to reflect cenain difierences
belween Avrsta's actual cost oJ generating and purchasing electric power
to serye customers and the (ost currehlly included in customer rates. lt
is a true-up to retlect the actual cost of power to serve cu5tomers. The
proposed PCA rate adjustment would rebate to customers approximately
$7.3 miilion effective Od. 1, 2017. The rebate is primarily as5fiiated
with power supply costs that were lower than those included rn base
retail rrtes, due to lower wholesle electric and natural gas prices. As a
result of Avista's PCA filing last year, the Commission approved a rebate
of approximately t0.5 million. That rebate will end Sept. 30, 2017. The
nei efled of the expiring rebate, and the proposed rebate, 15 an overall
decrear in revenue of approximately 2 7 percent, or t6.8 million.
The tccond adjustment is related to the Bonneville Power Administration
(BPA) Residenlial Exchange Program. The Residenlral Exchange Program
provides a share of the benefits oI the federal Columbia River power
system to the residential and small farm customers oI the investor-
owned utilities in the Paciric Northwest, including Avista. Avista applies
the benefits it re(eives, whi(h typically fluctuate from year to year,
to cuslomers as a credit in their monthly eleclric rates. The benelrt
Avista will receive lrom BPA starting in October 2017 will result in a
slghtly higher level oI benelits than i5 currently being passed through
to qoalifying customers. As a rerult ol the higher level ot benelils, the
proposed revenue de(rease for residential ahd small tarm customers is
approximately $0.2 million, or an overall decrease ol approximately 0.1
percent
The thlrd rate adjustment is related to the lunding ot Avista's eleqtric
energy elliclency programs. This filing is a true-up, adlusting lhe
amount of funding thal is collected in customer rates needed to run the
programs, induding the rebates and incentive5 paid to (ustomers, so that
it aligns with the actual <osts to dellver the programs. AviSla's programs
are baEd on providing a linanqal incentive, or "rebate," for cost-
effective energy efficiency measures with a rample payback less than 15
years. This inc udes app.oximately 300 measures that are packaged into
about 30 program5, providing choices for our (ustome6. The proposed
revenue (hange associated wth this frling is an increare of approximately
t3.9 million, or an overall increase of approximately 1.6 percent.
The fourth rate adjustment is related to Avista'5 electri( fixed cost
adjurtmenl mechanism (FCA). The FCA mechanism is designed to break
Propoled El.coi( R.tc Adlunmcntr to b! Eflcdiv. Od. l, 2017
Avirta has filed four annual rate adJustment requests with the ldaho
Public Utilities Commission (Commission), that if approved, are designed
lo increase overall electric revenues by t2.8 million or 1.1 per(ent
eI{ective Oct. 1, 2017. These annual {ilings are separate from the general
rate case request fiied in ,une 2017 regarding base retail rates in ldaho,
have no impact on the company's earnings, and are not related to the
proposed a(quisition of Avirta by Hydro One.
The firn adjustment is Avista's annual Power Cost Adjustment (PCA).
The PCA is an annual rate adjustment made to refled certain differen(es
beMeen Avista's adual co5l or generating and purchasing electric power
to serve customers and the cost cuilently included in (ustomer rates. lt
is a true-up to reflect the actual (ost of power to serve customers. The
proposed PCA rate ad]ustmentwould rebate to customers approximately
$7.3 million eflective O(t 1, 2017. The rebate ls primarily alsociated
wilh power supply cosls lhat were lower than those included in base
retail rates, due to lower wholesle electric and natural gas price!. As a
result olAvirta's PCA liling last year, the Commission approved a rebate
oI approximately r0.5 million. That rebate will end Sept. 30, 2017 The
net elfed of the exprring rebate, and the proposed rebate, it an overall
decrease in revenue oJ approximately 2.7 percent, or t6.8 milhon.
The t(ond adjustment is related to the Bonneville Power Administration
(BPA) Residential Ex<hange Program. The Residential Ex(hange Program
provides a share of the bene{its of the federal Columbia River power
system to the residential and small farm (ustomer5 ol the investor-
owned utrlities in the Pacifi( Northwest, in(luding Avista. Avista applies
the benefits it re(eives, which typi(ally rluctuate from year to year,
to customers as a credrt in their monthly electric rates. The beneln
Avista will receive from BPA sta.ting in October 2017 will result in a
slightly higher level of benefits than is (urrently being passed through
to qualifying (ustomers. As a result of the higher level of benefits, the
proposed revenue decrea* for residential and small farm customer! is
approximately 10.2 million, or an overall decrease of approximately 0.1
percent.
The third rate adlustment is related to the funding of Avista's ele(lric
energy efliciency programs. Thls filing is a true-up, adlusting the
amount oI funding that is collected in customer rates needed to run the
programs, in(luding the rebates and incentives paid to customers, so that
it aligns with the a(tual (osts to delver the programs. Avista's programs
are based on providrng a linancial incentive, or "rebate," for cost-
eflective ehergy elficiency meatures with a simple payback less than 15
years. This in.ludes approximately 300 measures thal are pa&aged inlo
about 30 programs, providing (hoices Ior our customers. The proposed
revenue change associated with thi5 filing is an increase of approximately
$3.9 million, or an overall in(rease of approximately 1.6 percent.
The tourth rate adjustment is related to Avista's electric frxed cort
adjustment mechanism (tCA). The FCA mechanism is designed to break
Propor.d Eh(tri( Rltc Adiqnm.nts to bc El'lGdlv. Od. l, 2017
Avista has filed ,our annual rate adju5tment requests with the ldaho
Publi( Utilities Commission (Commission), that if approved, are designed
to increase overall electric revenues by 12.8 million or ,l.1 percent
effective Oct. 1. 2017 These annual lilings are separate from the general
rate cas€ request filed in June 2017 regardinq base retail rates in ldaho,
have no impact on the company's earnings, and are nol related to the
proposed a(qursition oi Avrsta by Hydro One.
The lirn adjustment is Avista's annual Porer Cost Adlushent (PCA).
The PCA is an annual rate adjustment made to relle(t cenain differen(es
between Avrsta's adual (ost ol generating and purchasing electri( power
to sewe (ustomers and the cost (urently ihcluded in customer rates. lt
is a true-up to reflect the a(tual cost of power to serve cuslomers. The
proposed PCA rate adjustment would rebate to customers approximately
t7.3 million etfective Oct. '1, 2017. The rebate i5 primriy associated
with power supply costs that were lower than those included in base
retail rates, due to lower wholesale electric and natural 9a5 prices. As a
result ofAvista'5 PCA riling last year, the Commission approved a rebate
of approximately t0.5 million. That rebate will end sept. 30.2017. The
net effect ol the expiring rebate, and the proposed rebate, is an overall
decrease in revenue o{ approximately 2 7 percent, or t6.8 million.
The sc(ond adjustmenils re ated to the Bonneville Power Administration
(BPA) Residential Exchange Program. Fhe Residentral Ex(hange Program
provides a share of the benefit! ol the federal Columbia River power
system to the residentlal and small farm customers of the investor
owned utilities in the Pa(iji( Northwest, including Avirta- Avista applies
the benefits rt receives, which typically fluctuate from year to year,
to customers as a credit in their monthly electric rates. The benelit
Avista will receive lrom BPA starting in October 2017 will result in a
slightly higher level oI benefit5 than is currently being passed through
to qualfying customeE. As a resuh ol the higher level ol benefrts, the
proposed revenue decrease for residenlial and small larm customers is
approximately ,0.2 million, or an overall decrease of approximately 0.1
percent.
The third rate adjustment is related to the funding of Avista's electri(
energy eflrclency programs Thls filing is a true-up, adjusting the
amount of funding that is (olle(ted in customer rates needed lo run the
programs, includrng the rebates and incentiver paid to cuslomerr, so thal
it aligns wrth the actual costs to delver the programs. Avista's programs
are basd on providing a financial in(entive, or "rebate," for cost-
elfe(tave energy efficiency measures with a simple payback less than 15
years. This includes approximately 300 measurs that are pa.kaged into
about 30 programt, provrding choices {or our customers. The proposed
revenue (hange associated with this fiiing is an in(reas of approximately
$3.9 million, or an ov€rall increase of approximately't.6 percent.
The founh rate adiustment is related to Avista's electric fixed cost
adjustment mechanism (FCA) The FCA mechanism ir derigned to break
the link between a util ty's revenues and customers' energy uege.
Avrsta's actual revenue, bared on kilowatt hour sales, will vary up or
down, from the level included in a general rale case and approved by
the Commission- Thir could be caused by changes in weather, energy
(onservation or the economy. Generally, under the fCA Avista's electri(
revenues are adjusted each month based on the number of cultomer,
rather than kilowatt hour sales. The differen(e between revenues based
on sales and revenues based on the number of customers is surcharged
or rebated to customers beginning in the lollowing year. For electric
operations, the rate adjustment is designed to increase revenues by
approximately $5.9 million, or 2.3 percent. This rate adjustment is drven
primarily by a lower level of customer usage in 2016 due in part to a
warmer than normal winter, and does not apply to Avilta's Extra Large
General Service 5(hedules.
Cu3tomrr Bilk - lf approved, resident al electric customers in ldaho
using an average of 910 kilowatt hourr per month would see their
monthly bills increase from t86.39 to t88.12, an in(rease of t1.73 per
month, or approximately 2 0 percent. Ihe proposed electric rale changet
would be eifedive Oct. 1, 2017. The requested electric rale changes by
rate schedule are
the link between a utilily's revenues and customers'en€rgy usage
Avrsta's adual revenue, based on kilowatt hour sales, will vary, up or
down, lrom the level included in a general rate case and approved by
the Commission. Thi5 could be (aused by changes rn weather. energy
(onservation or the e(onomy. Generally, under the tCAAvista's electri.
revenues are adjusted each month based on the number of customers,
ratherthan kilowatt hour sles. The dilference between revenues based
on tales and revenues based on the number of customers is jurcharged
or rebated to customers beginning in the following year. for electric
operations, the rate adjustment is designed to increase revenues by
approximately t5.9 million, or 2.3 percent. This rate adjustment is driven
primarily by a lower level of customer usaqe in 2016 du€ in part to a
warmer than normal wrnteL and does not apply to Avista's Extra Large
General service schedules.
Cuetom6r Bills - lf approved, residential electric customers in ldaho
using an average o{ 910 krlowaft hours per month would se their
monthly bills increas from 186.39 to t88.12, an increase of t1.73 per
month, or approximately 2 0 percent The propoEd electnc rate changes
would be effective Ocl. '1, 2017- The requested eledri< rate changes by
rate schedule are:
the link between a ulility'5 revenues and customers' energy usage.
Avisla's actual revenue, based on kilowatt hour sal6, will vary, up or
down, lrom the level included in a general rate case and approved by
the Commission This (ould be caused by changes in weather, energy
(onservation or the economy. Generally, under the FCA Avista's electri(
revenues are adiusted each month based on the number of customers,
rather than kilowatt hoursales. The difl€rence between revenues based
on sales and revenues based on the number of customers is surcharged
or rebated to customers beginning in the lollowing year. tor elec'tric
operations. the rate adjustment is designed to increas revenues by
approximately 15.9 million, or 2.3 p€rcent. This rate adjustment is drven
primarily by a lower level of customer usage in 2016 due in part to a
warmer than normal winter, and does not apply to Avista's Extra Larqe
6eneral Service Schedules.
Cu'tomcr Eillr - lf approved, residenlial electric customers in ldaho
usinq an average of 910 kilowatt hou6 per month would see their
monthly bills in(rease from $86.39 to $88.12, an increase of t1.73 per
month, or approximately 2.0 percent Th€ proposed electric rate changes
would be effedive Oct. 1, 2017. The r€quested electric rate changes by
rate schedule are:
Residential Seryice - Schedule 'l
General Service - Schedules l'l & 12
Large Gen€ral Service - Schedules 2l & 22
Exlra Large General Service - s(hedule 25
Extra Large General Service - Schedule 25P
Pumping Seryice - Schedules 31 & 32
Street & Area Lights - schedules 41-49
overall
AVA258i
2.0v"
1.lVo
1.8%
-2.iyo
-3.t%
1.80h
o.gvo
1.1%
4vtsta
Residentaal Service - Schedule 1
General SeNice- Schedules 1 l & t2
Large General Seryice - Schedules 2l & 22
Extra Large Ceneral Seryice ' Schedule 25
Extra Large General Service - Schedule 2SP
Pumping Seryi(e - Schedules 3! & 32
Street & Area Lights - Schedules 41-49
Ove6ll
AVA258i
2.0./"
1 7o/o
1.ao/o
-2.810
-3.1.k
1.Ao/.
09Yo
1.1%
4vtsta
Resrdenlial Se,vice - Schedule 1
General Service - schedules 11 & 12
Large General servi(e - Schedules 2'l & 22
Extra Large General Servrce - Schedule 25
[xtra Large General seryice - Schedule 25P
Pumping Seryice - Schedules 31 & 32
Streer & Area Lights - S(hedules 4l-49
Ov.Dll
2.ovo
1.7o/o
1.80h
-2.gVo
-3 1vo
1.Ah
0.90/o
1.1%
.#vtsta
The Company's applications are proposals, subject to public review
and a Commission decision. Copies of the appli(ations are available lor
public review at the olfices oI both the Commisiion and Avista, and
on the Commission's websile (www.puc.idaho.gov). Custome15 may
Iile with the Commission written comments related to the Company's
filings. Customers may also subscribe to the Commission's RSS feed
(http:/Atrww puc.idaho.goy/rssfeeds/rss.htm) to receive periodic updates
via e-mail about the case. Copies of rate filings are also available on our
website, ww.myavista.com/rates.
lf you would like to submit (omments on the proposed increase, you can
do so by going to the Commissron website or maifing comments to:
ldaho Public tJtilities Commis5ion
PO. Box 83720
8oi5e, lD 83720-0074
To assist customers in managing their energy use and energy billt, Avista
of{e6 selvice! su<h a5 energy e{ficiency programs and rebale!, comtort
level billing, payment arrangements and Customer Asristance Refetral
and [valuatDn Services (CARES). To learn more, visit
wuw.myavisla.<om
The Company's applications are proposals, subject to publi( review
and a Commission decision. Copies of the appli(ations are available Jor
public review at the olfices of both the Commission and Avista, and
on the Commission's website (www.puc.idaho.gov). Customers may
file with the Commission written comments related to the Company's
filings. Customers may also subscribe to the Commission'! RSS leed
(http://www.puc.idaho. gov/rssreeds/rss.htm) to receive periodic updates
via e-mail about the case. Copies of rate filings are also available on our
website, ww.myavista.com/rates
lf you would like to submit comments on the proposed rncrease, you can
do so by going to the Commission website or mailing comments to:
ldaho Public Utiliti€s Commission
PO. Box 83720
Boise, lD 83720-0074
To assisl customers in managing therr ehergy use and energy bills, Avista
otlers seruices luch a5 energy ef{iciency programS and rebates, comfort
level billing, payment arrangements and Customer Assistance Referal
and Evaluation Services (CARES). To learn more, v6it
w.myavirta.(om.
The Company's applications are proposals, subject to pub|c review
and a Commrssion decision. Copies of the applications are available for
publi( review at the offices ot both the Commission and Avista, and
on the Commission's website (w.puc.idaho.9ov). Cuslomers may
file with the Commission written comments related to the Company's
filings. Customers may a so subscribe to the Commission's RSS feed
(httpr//ww.puc.idaho. gov/rssfeeds/rss.htm) to receive periodic updates
via e-mail about the cas. copies o{ rate filings are also availabie on our
website, ww.myavista.com/rates.
lf you would like to submit commenls on the propord increase, you (an
do so by going to the Commission website or mailing comments to:
ldaho Public Utilities Commission
PO. Box 83720
Boise. lD 83720-0074
To assist customers in managing their energy use and energy bil15, Avista
offers services such as energy efficiency programs and rebates, comlort
level billing, payment arrangements and cuslom€r Assistance Relerral
and Evaluation Seru'(es (CARES). To learn more, visit
ww.myavirta.<om
AVA258i