20170823Customer Notice and Press Release.pdf

Avista Corp.
141 1 East Mission P.O. Box 3727
Spokane, Washington 99220-37 27
Telephone [phone]
Toll Free 800-727-9170
frrurTfr
Corp.
August 23,2017
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472W. Washington St.
Boise, ID 83702
Re: Case No. AVU-E-17-05
Residential and Small Farm Energy Rate Adjustment Credit
Dear Ms. Hanian:
Enclosed for electronic filing with the Commission is a copy of the Customer Notice and Press
Release issued in Case No. AVU-E- l7-05. The Press Release was issued on August I , 2017. The
Customer Notice has been included in customer bills since August 7,2017, and will run through
September 1,2017 . Please direct any questions on this matter to me at [phone].
Patrick Ehrbar
Senior Manager, Rates and Tariffs
Enclosures
Page I of 1
Al,i-lrrtsra
Contact: DRAFT 07127117
Media: Casey Fielder (509) 4954916 [e-mail]
lnvestors: Jason Lang [phone] [e-mail]
Avista 2417 Media Access [phone]
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 would,
if approved, result in electric rate changes for customers 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.
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 cunently included in customer
rates. !t is a true-up to reflect the actual cost of power to serve customers.
The proposed PCA rate adjustment is 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 approximalely 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 cunently being passed through to qualifying customers.
As a result of the higher level of benefits, the proposed revenue decrease for residential and
small farm 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. The proposed revenue
change associated with this filing is an increase of approximately $3.9 million, or an overall
increase of approximately 1.6 percent.
Electric Fixed Gost 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 normalwinter, and does not apply
to Avista's Extra Large General Service Schedules.
Customer Bills
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%
1.7%
1.8o/o
-2.8o/o
-3.10/o
1.8%
O.9o/o
1.10/o
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.qov). 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.ouc.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.
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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 natural gas to 342,000 customers. lts
service tenitory 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 fonrard-looking statements regarding the company's current
expectations. Forward-looking statements are all statements other than historicalfacts. 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 1&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
-17XX-
To unsubscribe from Avista's news release distribution, send a reply message to
[e-mail]
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lmportant Notice for ldaho Electric Customers
August 201 7
lmportant Notice for ldaho Electrk Customers
August 201 7
lmportant Notice for ldaho Electric Customers
August 2017
Prcpo3cd Elcdri. R.te AdiuttmenB to b. Effcdlvc Od, 1,20i7
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 t2.8 million or l.l per(ent
effective Oct. 1, 2017. These annual ,ilings are separate from the general
rate case request Iiled in ,une 2017 regarding bare retail rates in ldaho,
have no impact on the company's earnings, and are not relaled to the
proposed a(quisition o{ Avista by Hydro One.
The fi6t adlustment is Avista's annual Power Cost Adjustment (PCA).
The PCA is an annual rate adjustment made 10 rerlect certain diflerences
between Avista's actual cost oi generating and purchasing electn( power
to serve (ustomers and the cost currently included in customer rates. lt
is a true-up to refle(t the actual corl of power to Erve customers. The
proposed PCA ral€ adlustment would rebate to customers approximately
$7.3 million etrective Ocl. 1, 2017. The rebate ls primarily asto.iated
wth power supply costs that were lower than thore included rn base
relail rates, due to lower wholesle electric and natural gas pricet. As a
result ol Avista's PCA filing last year, the Commission approved a rebate
of approximately $0.5 million. Thar rebate will end Sep1. 30, 2017. The
nel effect ol the expiring rebate, and lhe proposed rebate, is ah overall
decreas in revenue of approximately 2.7 percent. or 16.8 millaon.
The rGcond adjustment is related to the Bonneville Power Administration
(BPA) Residential Ex<hang€ Program. The Residenlral 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 il receives, which typically Iluctuate from year to yeal,
lo customers as a credit in their monthly electr( rates. The benelit
Avista will receive lrom BPA starting in October 2017 will reru t in a
slightly higher level of benefits than is currently beinq passed through
to qualifying customers. As a result ol the higher level of benefits, the
proposed relenue decrease for residential and small farm (ustomers i!
approximately $0.2 million, or an overall decrease oI approximately 0.1
per(enl
The thlrd rale adlustment is related to the {unding of Avista's eledri(
energy efliciency programs. This riling is a true-up, adjusting the
amount of funding that is collected in customer rates needed lo run the
programs, in(luding the rebates and incentives paid to (ustomers, so that
it aligns wilh the aclual costs to de|ver the proqrams. Avista's programs
are ba5ed on providrng a {inancial iocentive, or 'tebate," for cosL
elfective energy efficienry 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 (ustomers. The propoled
revenue change asiocrated with this f ling is an increase of approximately
t3.9 million, or an overall increaF of approximately 1.6 percent.
The fourth rate adjustment is related to Avista's electric fixed (ost
adjustment mechanirm (FCA). The FCA mechanirm is designed to break
Prcposrd Ehdric Ret. AdruJtm.ntt to b. EffcdivC Oct. l, 2017
Avista ha5 liled four annual rate adlustment requests with the ldaho
Publi( utilities Commission (Commission), that iI approved, are designed
to increare overall electri( revenuer by 12.8 million or 1.1 percent
effective Oct. l, 2017. There annual filings are separate Irom the general
rate caie request Iiled in June 2017 regarding bare retail rates in ldaho,
have no impact on the (ompany's earnings, and are not related to the
proposed a(quisition o'f Avista by Hydro One.
The tirit adjustment is Avista's annual Power Cost Adjustment (PCA).
Fhe PCA is an annual rate adjustmenl made to rerlect certain difreren(es
between Avisla's adual cost of generating and purchasing ele.lri( power
to lerve customers and the cost (urrenlly included in customer rates. lt
is a true-up to reflect the a(tual cost of power to *rve customers. The
propoFd PCA ral€ adjustment would rebate to customers approximately
t7.3 million effective Oct. 1, 2017. The rebate is primarily associated
with power supply (osts that were lower than those included in base
retail rater, due to lower wholegle electric and natural qas prices. As a
rerult of Avista's PCA Iiling last year, the Commission approved a rebate
of approximately ,0.5 million. That rebate will end Sept. 30, 2017. The
net effect ol the expiring rebale, and lhe propoled rebate, is an overall
decrease rn revenue of approximately 2.7 percent, or 16.8 millon.
The sr.ond adjustment is related to the Eonneville Power Administratron
(BPA) Resldential Exchange Program. The Reridential Erchange Program
provid€s a share oI the benefits ol the lederal Columbia River power
system to the residential and small farm customers of the investor-
owned utilities in the Pacali( Northwest, including Avista. Avista applies
the benerits it re(eives, whi.h typi(ally{luctuate from year to year,
to customers as a credit in their monthly electr c rales. The benefrt
Avista will receive lrom BPA starting in October 2017 will result in a
slightly higher levei ol benefits than is (urrently being passed through
to qualfying customers. As a rerul't o{ the higher level of benefits, the
proposed revenue de(rease for residential and Small farm cuStomers is
approximately l0-2 million, or an overall decrease ol approximately 0.1
percent
The third rale adlustment i5 related to the funding oI Avista's electnc
energy elficiency programs. This filing is a true-up, adjusting the
amount of funding that is collected in customer rates neded to run the
programs, including the rebates and incentives paid to customers, so that
it aligns wilh lhe a(tual costs to deliver the programs. Avista's programs
are based qn provid ng a ,inancial incentive, or "rebate," for cost-
elfe(tive 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 lor our (uttomers. The proposed
revenue change associated with lhis frling is an increase ol approximately
S3.9 million, or an overall increase of approximately 1.6 percent.
The fourth rale adlu5tment is related to Avista's ele(tric frxed cost
adjustment mechanism (FCA). The FCA mechanism is designed to break
Propored Ele<tri( Ratc Adiunmcntr to b! Eff.div. o<t. 1,201,
Avista has filed four annual rate adjuslment requests with the ldaho
Publi( Utilities Commission (Commission), that if approved, are designed
to increas overall electri( revenues by r2.8 million or 1.1 percent
elfective Oct. l, 2017. There annual filings are separate from the general
rate case request filed in Juhe 2017 regarding ba5e retail rates in ldaho,
have no impact on the company's earnings, and are not related to the
proposed acquiihion o, Avista by Hydro One.
The firrt adjustment is Avista's annual Power Cost Adjustment (PCA).
The PCA is an annual rate adju5tment made to reiled certain dif{eren(es
between Avrsta's actual cost ol generating and purchasing el€ctric power
to serve (ustomerr and the cost curently included in customer rates. lt
is a true-up to reflect the actual cost of power to serve customers. The
proposed PCA rate adjustment would rebate to customers approximately
t7.3 million effective Oct. l, 2017. The rebate ls primarily associated
with power supply costs that were lower than those included in bate
retail rates, due to lower wholesale electric and natural gas prices. Ar a
result of Avista's PCA {iling last year. the Commissron approved a rebate
of approximately t0.5 million. That rebate will end Sepl. 30, 2017. The
net effect ol the expiring rebate, and the propo5ed rebate, is an overall
de(reas in revenue ol approximately 2 7 percent, or t6.8 million.
The re(ond adjustment is relaled to the Bonneville Power Adminislratioh
(BPA) Residential Exchange Program. The Residential Exchange Program
provides a share o{ the benefits of the federal Columbia River power
system to the residential and small farm customers of the investor-
owned utilities in the Pa(ific Northwest, including Avista. Avista applies
the benelits it receives, which typi€ally fluctuate lrom year to year,
to customers a5 a credit in their monthly electric rates- The benefil
Avista will receive lrom BPA starting in October 2017 will result in a
slightly higher level of benefits than is (urrently being passed through
to qualifying customerr. As a result ol the higher level of benefits, the
propo5ed revenue decrease for residential and Small Iarm customers is
approximately ,0.2 million, or an overall decrease oI approximately 0 1
percent.
The third rate adjustment is related to the funding oI Avista's electric
energy efficiency programs This tiling is a lrue-up, adlu5ting the
amount of funding that is colle.ted in (ustomer rates neded lo run the
programs, includrng the rebates and incentives paid to (ustome6, so that
it a igns with the adual costs to delNerthe programs Avista's programs
are based on providing a tinanc al incentive, or "rebate." lor cost-
efiective energy e{ficiency 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 cuslomers. The proposed
revenue change aslo(iated with this filing is an ancrease of approximately
$3.9 million, or an overall increase of approximately'1.6 percent
The fourth rate adJustment i5 related to Avista's ele(tri( fixed co5t
adjustment mechanism (FCA) The tCA mechanism is dsigned to break
th€ Iink between a utility'! revenues and customers'energy u99e.
Avista's actual revenue, based on kilowatt hour sal6, will vary, up or
down, Irom the level included in a general rate case and approved by
the Commission. This could be caused by changes in wealher, energy
<onservation or the economy. Generally, under the FCA Avisla's electri(
revenues are adjusted each month bared on the number of cuttomers,
rather than kilowatt hour sales. The difference between revenues based
on sales and revenues based on the number ol customers is surcharged
or rebated to.ustomers beginning in the following year For electri(
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 usage in 20t6 due in part to a
warmer than normal winter, and does not apply lo Avista'r Extra Large
General Service Schedules.
Customcr Blllr - lf approved, residential electric (ustomers in ldaho
using an average ol 910 krlowatt hours per month would se their
monthly bills inqease from 186.39 to $88.12, an increare of ,l.73 per
month, or approximately 2 0 percent. The proposed electric rate changes
would be ef{ective Oct. 1, 2017. The requested electric rale changes by
rate schedule are:
Residential Service - Schedule 1 2.0y.
General Service - S(hedules 11 & 12 1.1yo
Large General Service - Schedules 2! & 22 1.4%
Extra Large General Service - Schedule 25 -2.8yo
Extra Large General Service - Schedule 25P -3.1%
Pumping Servi(e - Schedules 31 & 32 1.4"/o
Street & Area Lights - Schedules 41 -49 0.9oh
ovorall 1,1%
The Company's applications are proposals, subject to public review
and a Commrssion decision. Copies of the appli<ations are available for
public revis at the offices of both the Commission and Avista, and
on the Commas5ion's websile (ww.puc.idaho.gov). Customels may
file with the Commi55ion written commeots related to the Company'5
filings. Customers may also subs(ribe to the Commilsion's RSS teed
(http ://wwwpuc.idaho. gov/rssfeeds/rss.htm) to receive periodic updates
via e-mail about the case. Copies o, rate lilingt are also available on our
websile, ww.myavisla.com/rates.
lf you would like to submit comments on the proposed increase, you can
do so by going 1o the Commission website or mailing comments to;
ldaho Public Utrlities Commission
PO. Box 83720
Boise, lD 83720'0074
To assist customers in managing their energy use and energy bills, Avista
o{fers servi(es su(h as energy e{licien.y programs and rebates, comfort
level billing, payment arrangements and Cuslomer Assistance Referral
and Evaluation Seruices (CARES). To learn more, vi5it
wwU.myavitta.<om.
the link between a utility's rewnues and customers'energy uege.
Avista's actual 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. This could be caused by changes in weather, energy
(onservation or the economy. Generally, under the FCA Avista's ele(tri(
revenues are adjusted each month based on the number of customers,
rather than kilowatt hour eles. The difleren(e between revenues based
on sler and revenues based on the number ol customers it surcharged
or rebated to customeE beginning in the {ollowing yeat For electri(
operataons, the rate adjustment is detigned to increase revenues by
approximately ,5.9 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 w nter, and does not apply to Avista's Extra Larqe
General Servic€ Schedules.
Customcr Blllr - lf approved, residential electric customers rn ldaho
using an average of 910 krbwan hours per month would 5e thear
monthly billr increase from t86.39 to ,88.12, an increase of t1.73 per
month, or approximately 2.0 percent. The proposd electric rate changet
would be effective Oct. 1, 2017. The requested eledri( rate changes by
rate schedule are
the link between a utility's revenues and customers'energy usage.
Avista's actual revenue, based on kilowalt hour sales. will vary, up or
down, from the level included in a general rate ca5e and approved by
the Commission. This could be caused by (hahges in weather, energy
con5eryation or the e(onomy. Generally, under the tCA Avista's electric
revenues are adjusted each month based on the number ol customers,
rather than kilowatt hour sales. The diflerence between revenues based
on gles and revenues based on the numb€r of customers is surcharged
or rebaled to customers beginning in the tollowing year. for electric
operations, the rate adjustment is designed to increase revenues by
approximately t5.9 mil ion, or 2.3 percenl. 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 doe5 not apply to Avista's Extra large
General Service S(hedules.
Cunomcr tlllt - If approved, reidential electric customer5 in ldaho
using an average of 910 kilowan hours per month would 5ee their
monthly bills increase from t86.39 to I88.'12, an increase o{ t1.73 per
month, or approximately 2.0 percent The proposed electric rate changes
would be elfective Oct. '1, 2017. The requested electri( rate changes by
rate schedule ar€i
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Residential Service - Schedule I
General Service - Scheduler 11 & 12
Large General Service - Schedules 21 & 22
Extra Large General Seryice - Schedule 25
Extra Large General seruice - Schedule 25P
Pumping Seryice - Schedules 31 & 32
street & Area Liqhts - Schedules 41-49
Ov.r.ll
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2.0v"
1 7v"
1.80h
-2 gvo
-3.1"/o
1.4v"
0.9vo
1;ty.
Resrdentia Service " Schedule 1
Genera Service - s(hedules 11 & 12
Large General Service - Schedules 2l & 22
Extra Large General Service - Schedule 25
Extra Large General Servrce'Schedule 25P
Pumping Seryi(e - Schedules 31 & 32
street & Area Liqhts - Schedules 41-49
overall
2.0%
1.70/.
1 ao/o
-2.80/o
-3 lyo
1.ao/"
0.90/.
1.1%
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The Company's applications are proposalt, subject to public review
and a Commission de<ision. Copies ol the applications are available fol
public reiew at the offices oI both the Commission and Avista, and
on the Commission'r webrite (ww.puc.idaho.gov). Customers may
file with the Commission writlen comments related to the Company's
fillngs Customers may also subscribe to the Commission's RSS feed
(http://www puc idaho.gov/rssfeeds/rss.htm) to receive periodic updates
via e-mail aboul the case. Copies oI rate filings are also available on our
website, ww.myavista.com/rates
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 Utrlities Commission
PO. Box 83720
Boise, lD 83720-0074
To a5sist customers in managing their energy use and energy bills, Avitta
orfers services such as energyetllciency programs and rebates, comfort
level billing, payment arangements and Cuslomer Assistance ReIe(al
and Evaluation Servi(es (CARES). To learn more, visit
ww.myavitla.<om.
The Company's applications are proposals, subje(t to public review
ahd a Commiision decision. Copies oI the applicatagns are available lor
publi( review at the oifices of both the Commission and Avista, and
on the Commission'5 website (ww.puc.idaho.gov). Customer5 may
file with lhe Commission written commentt related to the Company's
Iilings. Customers may al5o 5ub5cribe to the Commissron's RSS feed
(httpi//ww.pu(.idaho.9ov/rssreeds/rss.htm) to receive periodic updates
via e-mail about the cas. Copies oJ rate filings are also available on our
website, ww.myavista.com/rates
lfyou would like to submi't <ommentt on the ploposed increa5e, you can
do s by goin9 to the Commission website or mailing comment5 to:
ldaho Public Utilities Commission
PO. Box 83720
Boise. lD 83720-0074
To assist customers in managing their energy use and energy bills, Avi5ta
ofrers services 5uch as energy efficiency programt and rebales, comfort
level billing. paymenl arrangements and Cuslomer Assistance Referral
and Evaluatron Seorce5 (cARES). To learn more, vasit
ww.myavilta.(om.
AVA258i