20170801Press Release.pdf

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Contact: DRAFT 07127117
Media: Casey Fielder [phone] [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 OcL 1, 2017
SPOKANE, Wash. -Aug. 1,2017,1:05 p.m. PDT: Avista (NYSE: AVA) has made annualrate
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 annualfilings 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 ncit
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 currently included in customer
rates. lt 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 approximately 2.7
percent, or $6.8 million.
Residentia! 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
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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 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 $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 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 41-49
Overall
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1.8o/o
0.9%
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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.oov/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 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 Lioht 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 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 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
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