20170901Comment.PDF

Diane Holt
From:[e-mail]
Sent:Thursday,August 31,2017 11:32AM
To:Beverly Barker;Diane Holt;Matthew Evans
Subject:Case Comment Form:Dean Gentry
Name:Dean Gentry
Case Number:AVU-E-17-04
Email:[e-mail]
Telephone:[phone]
Address:P 0 Box 321,1231 Juniper Drive
St.Maries ID,83861
Name of Utility Company:Avista.
Comment:The exceptional service and local employees of Avista Corp.give our community a feeling of pride in a local
business.However,the continual applications for user electric rate increase to fund the capital investments for the
stockholders brings to question the actions of the corporate leadership as well as the corporate directors.Why are the
customers of Avista Utilities asked and often forced to pay for the corporate capital investments rather than only pay for
a fair return on the stockholders equity?In the August 25,2017 edition of the Coeur d’Alene Press Staff Writer Brian
Walker writes:“If approved in full,the rate changes would increase Avista’s revenue by a combined $34.1 million.”“The
company’s infrastructure projects include the rehabilitation and maintenance of the Kettle Falls electric generating
facility that provides electricity for Idaho and Washington customers.”(How much will Washington regulators approve
of Washington customers paying for this?)“The $6.3 million project would rewind the 30-plus-year-old generator that is
at the end of its expected life.”“More than $25 million in substation rebuilds are planned in the next two years.
Substations in Priest River and Kamiah are among those proposed to be rebuilt because they have reached the end of
thir useful lives.”“Several transmission projects totaling $25 million over the next two years are required to comply with
federal standards are also planned,including the Coeur d’Alene to Pine Creek line.”
Here we have listed projects of $56.3 million to be completed over the next two years funded by an application for a
user rate increases of $34.1 for eternity.Keep in mind that each new rate increase is in effect a compounding of all
previous rate increase since 1889.As Avista customers may be forced to pay for capital investments,why then when the
cost of those capital investments have been recovered from those rate increases not decreased by a like amount?How
about those “other”business ventures of Avista Corp?Do the Avista Utilities customers fund the venture capital?Do
the Avista Utilities cusomers share in the profits and losses of those “other”businesses?It seems the current return on
equity for the stockholders of 8.19%and the five year average return on equity of 9.14%plus an average annual
dividend of over 2.5%have pleased stockholders enough to increase the price of Avista Corp.stock at an average annual
rate of near 10%over the past nine years before the announcement of a sale of the corporation.lam not convinced of
a need for an increase in the proposed rate increases for either 2018 or 2019.
Unique Identifier:199.253.27.1
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