20200731Customer Notice and News Release.pdf

RECEIVED
2020 July 31, PM 3:05
IDAEO PABLIC
ATILITIES COMMISSIONImportant Notice for Idaho Electric Customers DRAFT
(August 2020)
Avista has made its annual Power Cost Adjustment (PCA) and Residential Exchange rate adjustment
filings with the Idaho Public Utilities Commission (IPUC or Commission) that if approved, are designed
to increase overall electric revenues by approximately $2.8 million or Ll% effective Oct. 1,2020. These
annual filings have no impact on Avista's eamings.
Avista previously made its annual Fixed Cost Adjustment (FCA) filing on June 30, 2020 with the same
proposed effective date of Oct. 1, 2020. If the FCA, PCA and Residential Exchange filings are approved,
overall electric revenues will decrease by approximately $0.2 million or 0.1% effective Oct. 1,2020.
The frrst adjustment is Avista's annual Power Cost Adjustment (PCA). The PCA is an affIual 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 adjusxnent would surcharge to
customers approximately $0.5 million effective Oct. 1,2020. The surcharge is primarily associated with
power supply costs that were higher than those included in retail rates, due to higher wholesale electric
and natural gas prices. As a result of Avista's PCA filing last yeat the Commission approved a rebate of
approximately $1.7 million. That rebate will end Sept. 30,2020- The net effect ofthe expiring rebate, and
the proposed surcharge, is an overall increase in revenue of approximately $2.2 million, or 0.9%
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 ofthe investor-owned utilities in the
Pacific Northwest, including Avista. Ayista applies the benefits it receives, which tlpically fluctuate fiom
year to year, to customers as a credit in their monthly electric rates. Due to fluctuations in usage, Avista
rebated to customers a level ofbenefits that was slightly higher than the level ofbenefits received from
BPA. Tkough this filing Avista is seeking to slightly reduce the level of benefits provided to qualiflng
customers in order to recover the over-rebated balance. As a result, the proposed revenue increase for
these customers is approximately $0.6 million, or 0.2%.
Customer Bills Resulting from the Filings - Ifboth filings are approved, residential electric customers
in Idaho using an average of 898 kilowatt hours per month would see their monthly bills increase ftom
$86.27 to $87.38, an increase of $l .l 1 per month, or approximately L3%. The proposed electric rate
changes would be effective Oct. l, 2020. The requested electric rate changes by rate schedule are:
Residential Service - Schedule I
General Service - Schedules ll & 12
Large General Service - Schedules 2l & 22
Extra Large General Service - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 3l & 32
Street & Area Lights - Schedules 4l-49
Overall
t.3%
0.8%
0.9%
1.4%
1.3%
0.8%
0.zo/o
t.t%
Customer Bills Resulting from g! Annual Electric Adjustments
In addition to the filings discussed above, Avista previously made its annual Fixed Cost Adjustment
(FCA) filing on June 30,2020,rith the same proposed effective date ofOct. 1,2020.Ifthe FCA, PCA
and Residential Exchange filings are approved, residential electric customers in Idaho using an average of
898 kilowatt hours per month would see their monthly bills decrease from $86.27 to $86.21, a decrease of
$0.06 per month, or approximately 0.1%. The p,roposed electric rate changes would be effective Oct. l,
2020.
The Company's applications are proposals, subject to public rcview and a Commission decision. frue to
the COVID-l9 pandemic, we are unable to provide copies at ow office locations as we usually do.
Howwer, copies of our filings are available at xrvw.myavista.com/rates. and on the Comnission's
website (uayyluqklaLo.eov). Customers may also subscribe to the Commission's RSS feed
(htto://w*v.ouc.idaho.sov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the case. Copies
ofrate filings are also available on our website, www.myavista.com/rates.
If you would like to submit comments on the proposed change, you can do so by going to the
Commission website or mailing comments to:
Idaho Public Utilities Cornmission
P.O. Box 83720
Boise, ID 83720-0074
Avista offers a number ofprograms and services to help customers manage thet energy use and costs.
Visit www.myavista.com for infomtation on these programs which include Comfort Level Billing, bill
payment options, automated paymert service, assistance programs, conservation tips, and energy
efficiency rebales.
AVASSi
,iittsra
Contact: DRAFT
Media: Celena Mock (509) 49il923 [e-mail]
RECEIVED
2020 July jl, PM i:05
IDAHO PUBLIC
UTILITIES COMMISSION
lnvestors: John Wilcox (509\ 495-4171 iohn.wilcox@a vistacoro.com
Avista 2417 Media Access [phone]
Avista Makes Annual Price Adjustment Filings in Idaho
Reguests would result in change in electric prices effective Oct. 1 , 2020
SPOKANE, Wash. -July 31,2020, 1:05p.m.PDT: Avista (NYSE: AVA) has made its annual
Power Cost Adjustment (PCA) and Residential Exchange rate adiustment filings with the ldaho
Public Utilities Commission (IPUC or Commission) that if approved, are designed to increase
overall electric rovenues by approximately $2.8 million or 1.1% effective Oct. 1, 2020. These
annual filings have no impact on Avista's earnings.
Avista previously made its annual Fixed Cost Adjustment (FCA) filing on June 30, 2020 with the
same proposed effective date of Oct. '1, 2020. lf the FCA, PCA and Residential Exchange filings
are approved, overall electric revenues will decrease by approximately $0.2 million or 0'1%
effective Od. 1,2020.
Power Cost Adjustment (PCA)
The first adiustment is Avista's annual Power Cost Adiustment (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 surcharge to customers approximately $0.5 million
effective Oct. 1, 2020. The surcharge is primarily associated with power supply costs that were
higher than those included in retail rates, due to higher wholesale electric and natural gas
prices. As a result of Avista's PCA filing last year, the Commission approved a rebate of
approximately $1.7 million. That rebate will end Sept. 30, 2020. The net effect of the expiring
rebate, and the proposed surcharge, is an overall increase in revenue of approximately $2.2
million, or 0.9%.
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 ofthe
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 benefits received from BPA. 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. As a result, the proposed revenue increase for these
customers is approximately $0.6 million, or 0.2o/o.
Gustomer Bills Reeulting from these Filings
lf both filings are approved, residential electric customers in ldaho using an average of 898
kilowatt hours per month would see their monthly bills jry from $86.27 to $87.38, an
increase of $l.l l per month, or approximalely l.3o/o. The proposed elec'tric rate changes would
be effective Oct. 1 , 2020.
The requested electric rate changes by rate schedule are as follows:
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
1.30/o
0.8%
0.9%
1.4Yo
1.3o/o
0.8%
0.2Yo
1.1Yo
Customer Bills Rosulting from E!! Annual Elec'tric Adjustments
ln addition to the filings discussed above, Avista previously made its annual Fixed Cost
Adjustment (FCA) filing on June 30, 2020 with the same propos€d effective date of Oct. 1, 2020.
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 decrease
from $86.27 to $86.21 , a decrease of $0.06 per month, or approximately O.1o/o. The proposed
electdc rate changes would be effective Oct. 1, 2020.
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 on the Commission's website c-idaho ov
Due to the COVID-19 pandemic, we are unable to provide copies at our office locations as we usually
do. However, copies of our filings are available at www.myavista.com/ratos. Customers may file
written comments related to Avista's filings with the Commission. Customers may also subscribe to
the Commission's RSS feed (htto:/iwww.puc.idaho.oov/rssfeeds/rss.htm) to receive periodic updates
via e-mail about the case.
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 tenilory covers 30,000 square miles in eastem Washington, northern ldaho and parts of
southern and eastem 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
.listsra
Juneau, Alaska, through its subsidiary ska Electrlc ht and Power Com n Avista stock
is traded under the ticker symbol 'AVA." For more information about Avista, please visit
www.avistacoro.com.
This news release e,ontains forward-looking stetements regarding the company's current
expectations. Forward-looking statements are all statements other than historical facts. Such
statements speak only as ofthe date ofthe 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, 2019 and the Quarterly Report on Form 10-Q for the
quarter ended March 31 , 2020.
SOURCE: Avista Corporation
-2oxx-
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