20190701Press Release and Customer Notice.pdf

REC E IVED
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TTiLiTIES COMMISSION
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
AVISTA UTILITIES
CASE NO. AVU-E-I9- 07
EXHIBIT D
FCA Press Release and Customer Notice
Electric Service
June 28, 2019
Contact: DRAFT GONFIDENTIAL
Media: Casey Fielder (509) 495-491 6 [e-mail]
lnvestors: John Wilcox [phone] [e-mail]
Avista 2417 Media Access [phone]
Avista Files Annua! Rate Adjustments in ldaho
lncrease in electric and natural gas prices would take effect in the fall
SPOKANE, Wash. -July 1,2019,1:05 p.m. PDT: Avista (NYSE: AVA) has made its annual
fixed cost adjustment (FCA) filings with the ldaho Public Utilities Commission (IPUC or
Commission) that if approved, are designed to increase overall electric revenues by $+.9 million
or 2.0o/o effective Oct. 1 ,2019 and increase overall natural gas revenues by $1.2 million or 2.0o/o
effective Nov. 1 ,2019.
The rate adjustments are driven primarily by a lower level of customer usage in 2018 due in part
to a warmer than normal winter. The FCA mechanisms do not apply to Avista's Electric Extra
Large General and Street Lighting Service Schedules, nor to its Natural Gas lnterruptible and
Transportation Service Schedules.
The Company has also filed a separate application with the Commission to extend the term of the
FCA Mechanisms through March 31, 2025. Absent this request for an extension, the FCA
Mechanisms would terminate at the end of 2019.
These annualfilings are required and have no impact on the company's earnings
Customer Bills
Electric
lf approved, residential electric customers in ldaho using an average of 898 kilowatt hours per
month would see their monthly bills increase from $82.57 to $85.57, an increase of $3.00 per
month, or approximately 3.6%. The proposed electric rate changes would be effective Oct. 1,
2019.
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
3.60/o
O.9o/o
1.1o/o
0.0o/o
0.Oo/o
0.go/o
0.00/o
2.Oo/o
Naturalgas
lf approved, residential natural gas customers in ldaho using an average of 61 therms per
month would see their monthly bills increase from $45.67 to $46.72, an increase of $1.05 per
month, or approximately 2.3 percent. The proposed natural gas rate changes would be effective
Nov. 1,2019.
The requested natural gas rate changes by rate schedule are
General Service - Schedule 101
Large General Service - Schedules 111 & 112
lnterruptible Service - Schedules 131 & 132
Transportation Service - Schedule 146
Overall
2.3o/o
1.10/o
0.0%
0.Oo/o
2.0o/o
Electric and Natural Gas Fixed Cost Adjustment
Avista's electric and natural gas fixed cost adjustment (FCA) is a mechanism designed to break
the link between a utility's revenues and customers'energy usage. Avista's actual revenue,
based on kilowatt hour or therm 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 revenues are adjusted
each month based on the number of customers. 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.
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.
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 our 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 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 forward-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 , 2019.
SOURCE: Avista Corporation
-tgxx-
To unsubscribe from Avista's news release distribution, send a reply message to
lena.fu nston@avistacorp. com
DRAFT
Important Notice for Idaho Customers
(July - August 2019\
Avista has made its annual fixed cost adjustment (FCA) filings with the Idaho Public Utilities Commission
(IPUC or Commission) that if approved, are designed to increase overall electric revenues by $a.9 million
or 2.0 percent effective Oct. l, 2019 and increase overall natural gas revenues by $ I .2 million or 2.0 percent
effective Nov. 1,2019. These annual filings are required by the Commission and have no impact on the
company's earnings.
The rate adjustments are driven primarily by a lower level of customer usage in 2018 due in part to a
warmer than normal winter. The FCA mechanisms do not apply to Avista's Electric Extra Large General
and Street Lighting Service Schedules, nor to its Natural Gas Interuptible and Transpoftation Service
Schedules.
Avista's electric and natural gas fixed cost adjustment (FCA) is a mechanism designed to break the link
between a utility's revenues and customers' energy usage. Avista's actual revenue, based on kilowatt hour
or therm 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 revenues are adjusted each month based on the number of customers. 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.
The Company has also filed a separate application with the Commission to extend the term of the FCA
Mechanisms through March 31,2025. Absent this request for an extension, the FCA Mechanisms would
terminate at the end of 2019.
Customer Bills
Electric
If approved, residential electric customers in Idaho using an average of 898 kilowatt hours per month would
see their monthly bills increase from $82.57 to $85.57, an increase of $3.00 per month, or approximately
3.6 percent. The proposed electric rate changes would be effective Oct. 1,2019.
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 3l &32
Street & Area Lights - Schedules 41-49
Overall
3.6%
0.9%
1.1%
0.0%
0.0%
0.9%
0.0%
2.0%
I\latural gas
If approved, residentialnatural gas customers in Idaho using an average of 61 therms per month would see
their monthly bills increase from $45.67 to $46.72, an increase of $L05 per month, or approximately 2.3
percent. The proposed natural gas rate changes would be effective Nov. I ,2019.
The requested natural gas rate changes by rate schedule are
DRAFT
General Service - Schedule 101
Large General Service - Schedules 111 &.112
Interruptible Service - Schedules l3l &.132
Transportation - Schedule 146
Overall
2.3%
1.1%
0.0%
0.0%
2.0%
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.myavista.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
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.
AVA360i