20190610Customer Notice and Press Release.pdf

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Contact: DRAFT
Media: Casey Fielder (509) 495-491 6, [e-mail]
I nvestors: John Wilcox (509) 495-417 1, ioh n.wilcox@avistacorp. com
Avista 2417 Media Access [phone]
Avista requests modest electric base rate change in ldaho
Company seeks recovery of cosfs for investments in infrastructure
SPOKANE, Wash. June 10, 2019,1:05 p.m. PDT: Avista (NYSE: AVA) has filed an electric
rate request with the ldaho Public Utilities Commission (IPUC or Commission) to recover costs
related to investments in infrastructure, system maintenance, and technology. lf approved, the
electric general rate request is designed to increase annual billed revenues by $5.3 million or
2.1 percent effective Jan. 1 , 2020. The request is based on a proposed rate of return (ROR) on
rate base of 7.55 percent with a common equity ratio of 50 percent and a 9.9 percent return on
equity (ROE).
"We're making significant investments in our infrastructure and systems every year to maintain,
upgrade and ensure the safety, reliability and resiliency of the equipment and facilities that
serve our customers every day," Avista President Dennis Vermillion said. "This includes efforts
like inspecting and replacing thousands of power poles each year, upgrading transmission lines,
enhancing cybersecurity and upgrading hydroelectric turbines and generators. We're also
investing in digital tools and technology options that make it easier for our customers to interact
and do business with us. All of these investments allow us to meet our customers' energy
needs, maintain the reliable and efficient service they expect and keep the electric system safe.
"Additionally, Avista's rates are cost-based, where the costs related to wood pole replacements,
generator upgrades and other equipment that is included in customer rates reflects the cost of
the equipment when it was installed, decades ago. The costs for this equipment are many times
more expensive today, and this is a driver of our rate requests. These requests not only help to
more closely align customer rates with Avista's costs of providing service, they also support the
opportunity to earn a fair return for our shareholders.
"While we make these investments for the benefit of our customers, we recognize that rate
increases can be a hardship. As we make decisions about how and where to invest across the
company, our customers are our primary focus. We take our responsibility to provide safe,
reliable energy at an affordable price very seriously, and we work hard to manage our costs and
identify ways to best serve our customers that contribute to keeping energy prices low,"
Vermillion said.
I nfrastructu re I nvestments
Avista's infrastructure investment plans address the need to replace infrastructure that has
reached the end of its useful life, to connect new customers to our system, as well as respond to
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the need for reliability and technology investments required to build the integrated energy
services grid that will take us into the future.
Among the projects in today's filing are:
The upgrade of generating units and other equipment that is over a century old at
Avista's Little Falls Dam, which will provide more generating capacity to serve customers
with clean, reliable energy.
Our distribution grid modernization program that continuously rebuilds and upgrades
every electric distribution feeder in the system, replacing old equipment like poles,
conductor, and transformers to improve service reliability, capture energy efficiency
savings and improve operational ability.
Ongoing management, inspection and replacement of 240,000 electric distribution wood
poles across the system through Avista's wood pole management program, ensuring
distribution wood poles and the equipment on them support the company's ability to
provide customers with safe and reliable power.
The rebuilding of substations that have reached the end of their useful life or have
reached full capacity.
Technology upgrades that support necessary business processes and operational
efficiencies that allow Avista to effectively manage the utility and serve customers.
Residential Customer Bills
A residential electric customer's billtoday is 0.4 percent lower, on average, than an equivalent
bill in January of 2016. Overall, Avista customers' changes in energy prices are less than the
rate of inflation during this time period, according to the Consumer Price lndex.
lf approved, residential electric customers in ldaho using an average of 898 kilowatt hours per
month could expect to see a bill increase of $2.89 per month, or 3.5 percent, for a monthly bill
change from $82.57 to $85.46, effective Jan. 1 ,2020. Avista is not proposing to increase the
residential basic monthly charge, currently set at $6.00 per month.
Chanqes bv Service Schedule
The requested electric increase by service schedule is as follows
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Rate Schedule Proposed 2020 Billing !ncrease
ResidentialSchedule 1 3.5 percent
General Service - Schedules 11112 0.0 percent
Large General Service - Schedules 21122 1.5 percent
Extra Large GeneralService - Schedule 25 1.6 percent
Extra Large General Service - Schedule 25P 1.6 percent
Pumping Service - Schedules 31132 1.5 percent
Street & Area Lights - Schedules 41 - 49 0.0 percent
Total 2.1 percent
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The actual percentage increase for individual electric customers would depend on how much
energy a customer uses.
Avista serves more than 133,000 electric customers in ldaho. The last general rate case filed by
Avista in ldaho was on June 9, 2017 . fhe Commission has up to nine months to review Avista's
requests.
Additional information about Avista's rate request and energy prices is available at
wr,vw. mvavista. com/id ratereq uests.
Customer Resources
To assist customers in managing their energy bills, Avista offers services for customers such as
comfort level billing, payment arrangements and Customer Assistance Referral and Evaluation
Services (CARES), which provide assistance to special-needs customers through referrals to
area agencies and churches for help with housing, utilities, medical assistance and other needs.
Avista also provides funding for energy assistance programs and Project Share, which are
administered through community action agencies.
Avista provides energy efficiency and outreach programs that include rebates and incentives as
well as tips and resources to help customers manage their energy use and energy bills.
Customers can learn more at vww.myavista.com.
Rate Apolication Procedure and Additional !nformation
Avista's application is a proposal, subject to public review and a Commission decision. A copy
of the application is 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 the Company's filing. Customers may also subscribe
to the Commission's RSS feed (http://www.puc.idaho.@/rss.htm) to receive periodic
updates via e-mail about the case. Copies of the rate filing is also available on our website,
www. mvavista. com/rates.
The Commission will begin a comprehensive review of Avista's application and will seek public
input. 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 Utilities Commission
P. O. Box 83720
Boise, lD 83720-0074
About Avista Corp.
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 the operating division that
provides electric service to 395,000 customers and natural gas to 362,000 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
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Juneau, Alaska, through its subsidiary Alaska Electric Liqht and Power Comoany. 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 , 2018 and the Quarterly Report on Form 10-Q for the
quarter ended March 31,2019.
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DRAFr iolg JUil lo fil{ lo: sgImportant Notice for Idaho Electric Customers
On June 10,2019, Avista filed an application with the Idaho Public Utilities Commissiofl(SottyfsgeDC
to increase Idaho electric rates. This request is primarily driven by ongoing capital i.t'rT,*iftdnG ttflilFi{lSSlON
maintain and upgrade our infrastructure to meet customer expectations and continue to provide safe and
reliable service to our customers. If approved, the proposal would increase electric billed rates by $5.3
million or 2.1%o effective Jan. l, 2020. More information on the requested price change is available at
www.myavista.com/lDraterequests. The proposed increase above current billing rates by service schedule
is as follows:
Rate Schedule Proposed 2020 Billing Increase
Residential Schedule I 3.5 percent
General Service - Schedules I 1/12 0.0 percent
Large General Service - Schedules 2ll22 1.5 percent
Extra Large General Service - Schedule 25 1.6 percent
Extra Large General Service - Schedule 25P 1.6 percent
Pumping Service - Schedules 31/32 1.5 percent
Street & Area Lights - Schedules 41 - 49 0.0 percent
Total 2.1 percent
If approved, a residential electric customer using an average of 898 kWhs per month could expect to see a
bill increase of $2.89 per month, or 3.5 percent, for a monthly bill change from $82.57 to $85.46,
effective Jan. l, 2020. As a part of the request, Avista is proposing that the basic monthly charge for
residential service remain unchanged at $6.00 per month.
Avista's application is a proposal, subject to public review and a Commission decision. A copy of the
application is 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 filing. 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 the rate filing is also available on our website, www.myavista.com/rates.
The Commission has up to nine months to review the Company's rate increase requests. The Commission
will begin a comprehensive review of Avista's application and will seek public input.
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
Avista offers a number of programs and services to help customers manage their energy use and costs.
Visit www.myavista.com for information on these programs which include Comfort Level Billing, bill
payment options, automated payment service, assistance programs, conservation tips, and energy
efficiency rebates.
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