20190730Customer Notice and Press Release.pdf

Contact: DRAFT
Media: Casey Fielder [phone] [e-mail]
lnvestors: John Wilcox (509) 495-417 1 [e-mail]
Avista 2417 Media Access [phone]
Avista Makes Annual Price Adjustment Filings in ldaho
Requesfs would result in change in electric prices effective Oct. 1, 2019
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SPOKANE, Wash. - July 29, 2019,1:05 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 increase overall electric revenues by approximately $4.2 million or
1.7o/o eftective Oct. 1, 2019. These annual filings are required by the Commission and have no
impact on Avista's earnings, and are not related to the general rate case filed in June 2019.
Power Gost 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 $1.7 million
effective Oct. 1 ,2019. 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
$9.8 million. That rebate will end Sept. 30, 2019. The net effect of the expiring rebate, and the
proposed rebate, is an overall increase in revenue of approximately $8.1 million, or3.3o/o.
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 2019 will result in a
higher level of benefits than is currently being passed through to qualifying customers. As a
result, the proposed revenue decrease for these customers is approximately $3.9 million, or
1.60/o.
Customer Bills Resulting from these Filings
lf both of the filings are approved, residential electric customers in ldaho using an average of
898 kilowatt hours per month would see their monthly bills decrease from $82.57 to $82.12, a
decrease of $0.45 per month, or approximately 0.5%. The proposed electric rate changes would
be effective Oct. 1 ,2019.
The requested electric rate changes by rate schedule are as follows
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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
-0.5%
2.4o/o
3.2o/o
5.0%
s.3%
2.60/o
0.7%
1.7o/o
Customer Bills Resulting from all Annual Electric Adjustments
ln addition to the filings discussed above, Avista previously made its annual Fixed Cost
Adjustment (FCA) filing on June 28, 2019 with the same proposed effective date of Oct. 1 ,2019.
lf the FCA, PCA and Residential Exchange filings are 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 $85.12, an increase of $2.55 per month, or approximately 3. 1%. The proposed
electric rate changes would be effective Oct. 1, 2019.
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://rftrnv.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.
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 umnv. avistacorp. com.
This news release contains forward-looking statements regarding the company's current
expectations. Fonvard-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
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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 l/arch 31,2019.
SOURCE: Avista Corporation
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To unsubscribe from Avista's news release distribution, send a reply message
to lena.funston@avistacorp. com
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Important Notice for Idaho Electric Customers DRAFT
(August 2019)
Avista has filed two annual rate adjustment requests with the Idaho Public Utilities Commission
(Commission), that if approved, are designed to increase overall electric revenues by approximately $4.2
million or 1.7 percent effective Oct. 1,2019. These annual filings are required by the Commission and
have no impact on the company's earnings.
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 $1.7 million effective Oct. 1,2019. 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
$9.8 million. That rebate will end Sept. 30,2019. The net effect of the expiring rebate, and the proposed
rebate, is an overall increase in revenue of approximately 3.3 percent, or $8.1 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 fypically 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 2019 will result in a 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 small farm customers is approximately $3.9 million, or an overall decrease of
approximately l 6 percent.
Customer Bills Resulting from the Filings - If both of the filings are approved, residential electric
customers in Idaho using an average of 898 kilowatt hours per month would see their monthly bills decrease
from $82.57 to S82.12, a decrease of $0.45 per month, or approximately 0.5 percent. The proposed electric
rate changes would be effective Oct. 1,2019. The requested electric rate changes by rate schedule are:
Residential Service - Schedule I
General Service - Schedules 11 & 12
Large General Service - Schedules 2l & 22
Extra Large General Service - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 31 & 32
Street & Area Lights - Schedules 4l-49
Overall
-0.5%
2.4%
3.2%
s.0%
53%
2.6%
0.7o/o
1.7%
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 June 28, 2019 with
the same proposed effective date of Oct. 1,2019. tfthe FCA, PCA and BPA filings are 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 $85.12, an increase of $2.55 per month, or approximately 3.1 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.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.
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