20200731Customer Notice and News Release.pdf

RECEIVBD
2020 luly 31, PM i:04
IDAHO PUBLIC
UTILITIES COMMISSIONImportant Notice for Idaho Electric Customers DIIAFT
(August 2020)
Avista has made its annual Power Cost Adjustrnent (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 1.1olo effective Oct. 1, 2020. These
annual filings have no impact on Avista's earnings.
Avista previously made its annual Fixed Cost Adjustrnent (FCA) filing on June 30, 2020 with the same
proposed effective date ofOct. 1,2020. Ifthe FCA, PCA and Residential Exchange filings are approved,
overall electric revenues will decrease by approximately $0.2 million or 0.1% eflective Oct. l, 2020.
The first adjustment is Avista's annual Power Cost Adjustment (PCA). The PCA is an armual rate
adjustment made to reflect certain differences belween Avista's actual cost ofgenerating and purchasing
electric power to serv€ customers and the cost currently included in customer rates. lt is a true-up to
reflect the actual cost ofpower 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 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 Bomeville Power Administration (BPA) Residential Exchange
Program. The Residential Exchange Program provides a share ofthe benefits ofthe federal Columbia
River power system to the residential and small farm customers ofthe investor-owned utilities in the
Pacific Northwest, including Avista. Avista applies the benefits it receives, which typically fluctuate flom
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 higler than the level ofbenefits received from
BPA. Through this filing Avista is seeking to slightly reduce the level ofbenefits provided to qualiflng
cuslomers in order to recover t}te 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 tle Filings - Ifboth filings are approved, residential electric customers
in Idaho using an average of898 kilowatt hours per month would see their monthly bills increase from
$86.27 to $87.38, an increase of $ l.l 1 per month, or approximately 1.3%. The proposed electric rate
changes would be effective Oct. 1,2020. The requested cl€ctric rate changes by rate schedule are:
Residential Service - Schedule I
General Service - Schedules I I & 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 4l-49
Overall
l.3o/o
0.8%
0.9%
1A%
l.3o/o
03%
0.2%
1.'lo/c'
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 with the same proposed effective date ofOcl l,2020.Ifthe FCA, PCA
and Residential Exchange filings are approved, residential electric customers in Idaho using an av€rage 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.l%. The proposed electric rate changes would be effective Oct. l,
2020.
The Company's applications are proposals, subject to public review and a Commission decision. Due to
the COMD-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.mvavista.com/rates or you can call us at l-800-227 -
9187. Copies are also available on the Commission's website OA fU+Uc.idehS€9r). Customers may also
subssribe to the Commission's RSS feed (http://www.puc.idaho.gov/rssfeeds/rss.htrn) to receive periodic
updates via e-mail about the case.
Ifyou 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 Commission
P.O. Box 83720
Boise, ID 83720-0074
Avista offers a number ofprograms and services to help customers manage their energy use and costs.
Visit www.myavista.com for information on these programs which include Comfort kvel Billing, bill
payment options, automated payment service, assistance prograrns, corxiervation tips, and energy
€fficiency rebates.
AVA365i
Contact: DRAFT
Media: Celena Mock (509) 49S4923 [e-mail]
RECEIVED
2020 July 31, PM 3:04
IDAEO PUBLIC
UTILITIES COMMISSION
lnvestors: John Wilcox (509)495-417 1 [e-mail]
Avisla 2417 Media Access [phone]
Avista Makes Annual Price Adjustment Filangs in ldaho
Reguesls would result in change in electric prices effective Oct. 1 , 2020
SPOKANE, Wash. - July 3'l ,2O2O, 1:,05 p.m. PDT: Avista (NYSE: AVA) has made its annual
Power Cost Adjustment (PCA) and Residential Exchange rate adjustment filings with the ldaho
Public Utilities Commission (IPUC or Commission) that if approved, are designed to increase
overall electric revenues by approximately $2.8 million or 1.1o/o effedive 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 are designed to decrease by approximately $0.2 million
or 0.1% effective Oct. 1 , 2020.
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 enst cunently 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 surcha196 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 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 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 O.2ok.
Customer Bills Resutting from these Filinge
lf both filings are approved, residential electric customers in ldaho using an average of 898
kilowatt hours per month would see their monthly bills increase from $86.27 to $87.38, an
increase of $1 .1 1 per month, or approximately 1 .3%. The proposed electric 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
1.3o/o
O.8o/o
O.9o/o
1.4o/o
1.3o/o
0.8%
O.2o/o
1.1o/o
Customer Bills Resulting from f Annual Elec{ric Adiustments
ln addition to the filings discussed above, Avista previously made its annual Fixed Cost
Adiustment (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, residential electric custom€rs in
ldaho using an average of 898 kilowatt hours per month would see their monthly bills gg@
from $86.27 to $86.21, a decrease of $0.06 per month, or approximately 0.1%. The proposed
electric rate changes would be effective Oct. 1, 2020.
Rato Application Procedure
Avista's applications are proposals, subject to public review and a Commission decision. Copies of
th6 applications are available for public review on the Commission's website on^Ary.pgcjdaho=go9.
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.mvavista.com/rates. Customers may file
wriften comments related to Avista's filings with the Commission. Customers may also subscribe to
the Commission's RSS feed (htto://www.ouc. idaho.oov/rssfeeds/rss.htm) to receive periodic updates
via e-mail about the case.
lf you would lik6 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 83720-007 4
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. AyEla_Uli[ligg is our operating division that
provides electric service to 395,000 customers and natural gas to 362,000 customers. lts
service tenitory covers 30,000 square miles in eastem Washington, northem ldaho and parts of
southern and eastern Oregon, with a population of 1.6 million. Alaska Energy and Resources
jistsra
Company is an Avista subsidiary that provides retail electric service in the city and
Juneau, Alaska, through its subsidiary Alaska Electric Lioht and Power Comoanv. Avista stock
is traded under th€ ticker symbol 'AVA." For more information about Avista, please visit
www.avistacoro.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 , 2019 and the Quarterly Report on Form 10-Q forthe
quarter ended March 31 , 2020.
SOURCE: Avista Corporation
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