20180731Customer Notice and Press Release.pdf

REC EIV E D
?fi18 JUL 3 I AH ll: I 3
Avista has filed two annual rate adjustment requests with the Idaho Public Utilities Commission - -
(Commission), that if approved, are designed to decrease overall electric revenues by $2.5 rnlllion,gr-1rQ,i;,i5:;tO;,:
percent effective Oct. 1, 201 8. These annual filings have no impact on the company's earnings and are not
related to the proposed acquisition of Avista by Hydro One.
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. It is a true-up to reflect
the actual cost of power to serve customers. The proposed PCA rate adjustment would rebate to customers
approximately $9.8 million effective Oct. 1,2018. The rebate is primarily associated with power supply
costs that were lower than those included in 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
$7.2 million. That rebate will end Sept. 30,2018. The net effbct of the expiring rebate, and the proposed
rebate, is an overall decrease in revenue of approximately 1.0 percent, or $2.6 million.
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. Due to fluctuations in usage, Avista
rebated to customers a level of benefits that was slightly higher than the level of benefit received from
BPA. As a result, through this filing Avista is seeking to slightly reduce the level of benefits provided to
qualifring customers in order to recover the over-rebated balance. The proposed revenue increase for
residential and small farm customers is approximately $0.1 million, or an overall increase of
approximately 0.04 percent.
Customer Bills Resulting from the Filings - If both of the filings are approved, residential electric
customers in Idaho using an average of 910 kilowatt hours per month would see their monthly bills decrease
from $88.49 to $87.79, a decrease of $0.70 per month, or approximately 0.8 percent. The proposed electric
rate changes would be effective Oct. 1,2018. The requested electric rate changes by rate schedule are:
Important Notice for Idaho Electric Customers
(August 2018)
Residential Service - Schedule I
General Service - Schedules 1l & 12
Large General Service - Schedules 21 & 22
Extra Large General Service - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 3l & 32
Street & Area Lights - Schedules 41-49
Overall
-0.8%
-0.8%
-r.0%
-1.6%
-1.6%
-0.9%
-0.3%
-1.0%
Customer Bills Resulting from all Annual Electric Adjustments - In addition to the filings discussed
above, the Company previously made its annual Fixed Cost Adjustment (FCA) filing on July 2,2018 with
the same proposed effective date of Oct. l, 201 8. If the FCA, PCA and BPA filings are approved, residential
electric customers in Idaho using an average of 910 kilowatt hours per month would see their monthly bills
decrease from $88.49 to $83.64, a decrease of $4.85 per month, or approximately 5.5 percent.
The Company'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.gov). Customers may file with the Commission written
comments related to the Company's filings. 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 about the case. Copies
of rate filings are also available on our website, www.mlzavista.com/rates.
If you would like to submit comments on the proposed increase, you can do so by going to the Commission
website or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
To assist customers in managing their energy use and energy bills, Avista offers services such as energy
efficiency programs and rebates, comfort level billing, payment arrangements and Customer Assistance
Referral and Evaluation Services (CARES). To learn more, visit www.myavista.com.
AVA314i
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i" '!, 'liri'lGontact: DRAFT
Media: Casey Fielder (509) 495-491 6 [e-mail]
lnvestors: Lauren Pendergraft [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, 2018
SPOKANE, Wash. -July 30,2018, 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 decrease overall electric revenues by $Z.S million or 1.0 percent
effective Oct. 1 ,2018.
These annual filings 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 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 would rebate to customers approximately $9.8 million
effective Oct. 1 ,2018. The rebate is primarily associated with power supply costs that were
lower than those included in 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
$7.2 million. That rebate will end Sept. 30, 2018. The net effect of the expiring rebate, and the
proposed rebate, is an overall decrease in revenue of approximately 1.0 percent, or $2.6 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. Due to fluctuations in usage, Avista rebated to customers a level of benefits that
was slightly higher than the level of benefit received from BPA. As a result, through this filing
Avista is seeking to slightly reduce the level of benefits provided to qualifying customers in order
to recover the over-rebated balance. The proposed revenue increase for residential and small
farm customers is approximately $O.t million, or an overall increase of approximately 0.04
percent.
Customer Bills Resulting from the Filings
lf both of the filings are approved, residential electric customers in ldaho using an average of
910 kilowatt hours per month would see their monthly bills decrease from $88.49 to $87.79, a
lot{SS
ll: l3
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decrease of $0.70 per month, or approximately 0.8 percent. The proposed electric rate changes
would be effective Oct. 1 ,2018.
The requested electric rate changes by rate schedule are:
Residential Service - Schedule '1
General Service - Schedules 11 & 12
Large General Service - Schedules2l &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
-0.8o/o
-0.8o/o
-1.0o/o
-1.60/o
-1.60/o
-0.9o/o
-0.3%
-1.0o/o
Customer Bills Resulting from allAnnual Electric Adjustments
ln addition to the filings discussed above, the Company previously made its annual Fixed Cost
Adjustment (FCA) filing on July 2,2018 with the same proposed effective date of Oct. 1 ,2018.
lf the FCA, PCA and BPA filings are approved, residential electric customers in ldaho using an
average of 910 kilowatt hours per month would see their monthly bills decrease from $88.49 to
$83.64, a decrease of $4.85 per month, or approximately 5.5 percent. The proposed electric
rate changes would be effective Oct. 1 ,2018.
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.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 Gorp.
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 385,000 customers and natural gas to 350,000 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 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 , 2018 and the Quarterly Report on Form 10-Q for the
quarter ended March 31,2018.
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SOURCE: Avista Corporation
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