20210129Customer Notice and Press Release.pdf

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EXHIBIT B
Customer Notice
&
Press Release
The
DRAFT
Important Notice for Idaho Electric and Natural Gas Customers
On January 29,2021, Avista filed an application with the Idaho Public Utilities Commission (Commission) to
change Idaho electric and natural gas rates to recover ongoing capital investment costs that are required to
maintain and upgrade infrastructure to ensure customers receive the safe and reliable service they expect.
The combined effect ofthe proposed rate plan and the offsetting customer credits is an increase to electric revenues
of $8.7million, or3.SYo,andadecreasetonaturalgasrevenuesof $1.1million, or 1.7%o.
The proposal is a two-year rate plan which would increase electric base revenues by S24.8 million or 10.1%6
effective Sept. l, 2027,and by $8.7 million or 3.2%o effective Sept. 1, 2022.Natural gas base revenues would
increase by $0.1 million or 0.1o/o effective Sept. l, 2021, and by $1.0 million or 2.2Yo effective Sept. l, 2OZZ. A
proposed Tax Customer Credit would fully offset the Sept. l, 2021 increase for electric, and more ihan offset tlre
increase for natural gas, mitigating the bill change for customers. Other deferred customer credits are proposed to
offset the majority of the Sept. l, 2022 natural gas increase. More information on the requested price change is
available at www. mvavista. com/I Draterequests.
Electric
above current bill rates service schedule is as follows
Residential Customer Bills - Electric
Effective Sept. l. 2021, residential customers using an average of 892 kilowatt hours per month would see their
monthly bills remain unchanged at $85.63. Effective Sept. 1.2022, residential customers using an average of 8g
kilowatt hours per month would see their monthly bills increase from $85.63 to $89.01, an increase of $3.38 or
3.9%o per month. Included in that bill change is a proposed increase in the basic monthly charge of $2.00, to a
level of $8.00 per month.
Natural Gas
The service schedule is as follows:
Rate Schedule Proposed 912021
Billine Chanse
Proposed 912022
Billine Chanse
General Service - Schedule 101 -r.9%0.1%
Large General Service - Schedules lll & ll2 -r.5%0.1%
Transportation Service - Schedule 146
(excludes commodity and interstate pipeline
transportafion costs)
-2.7%0.2%
Total -1.8%0.1%
Residential Customer Bills - Natural Gas
Effective Sept. 1, 2021, residential customers using an average of 63 therms per month would see their monthly
bills decrease by $0.95, from $49.49 to S48.54. Effective Sept. l. 2022, Residential customers using an average
above current bil rates
Rate Schedule Proposed 912021
Billine Chanse
Proposed 912022
Billins Chanse
Residential Service - Schedule 1 0.0%3.904
General Service - Schedules 1l & 12 0.0%3.4o/o
Large General Service - Schedules 2l &22 0.0%3.4%
Extra Large General Service - Schedule 25 0.0%3.4%
Extra Large General Service 25P - Schedule 25P 0.0%1.3%
Pumping Service - Schedules 3l &32 0.lYo 3.4%
Street & Area Lights - Schedules 4l - 49 0.0%3A%
Total 0.0%3.5o/o
of 63 therms per month would see their monthly bills increase from $48.54 to $48.59, an increase of $0.05 or 0.1
percent per month. Included in that bill change is a proposed increase in the basic monthly charge of S2.00, to a
level of $8.00 per month, offset by a decrease in the volumetric, per-therm rate.
The Company's applications are proposals, subject to public review and a Commission decision. Due to the
COVID-19 pandemic, we are only providing copies of our filings online at www.myavista.com./rates or you can
call us at 1-800-227-9187. Copies are available on the Commission's website (www.puc.idaho.gov). Customers
may also subscribe to the Commission's RSS feed (https://puc.idaho.eov/RssPage) to receive periodic updates
via e-mail about the case. 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 rate changes, you can do so by going to the Commission
website or mailing comments to: Idaho Public Utilities Commission, P.O. Box 8372},Boise, lD 83720-0W4.
Avista offers several programs and services to help customers manage their energy use and costs. Visit
www.myavista.com for information on these programs including comfort level billing, bill payment options,
automated payment service, assistance programs, conservation tips, and energy efficiency rebates.
AVA4I5i
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Contact: DRAFT
M ed ia: Celena M ock [phone], celena. [e-mail]
I nvestors: Joh n Wilcox (509) 495 -417 1 ioh n.wilcox@avistacorp. com
Avista 2417 MediaAccess [phone]
Avista proposes two-year rate plan in ldaho that provides tax benefits
to customens
Company'sfiling seelcs to recovercosts with no initial impacttocustomerbitls
SPOKANE, Wash. January 29,2021, 1:05 p.m. PST: Capital investments in infrastructure,
system maintenance, wildfire resiliency measures, and increased powersupply costs are the
main drivers in Avista's (NYSE: AVA) requestfiled todaywith the ldaho Public Utilities
Commission (IPUC or Commission). lf the Company's two-year rde plan is approved, a Ta<
Customer Creditwould allowthe Company to recover capital costswith little to no impact tocustomer bills.
"The last year hm been punctuated by the unpreedented COVID-19 pandemic and crisis, and
we've all had to quickly adapt as things changed so significantly," Avista President and CEO
Dennis Vermillion said. "\/Vttile Avista responded to the situation created by the crisis, we
maintained our focus on our essential service and providing our customers with safe, reliable
and affordable energy. This means that we've continued to make important and necessary
investments in our infrastructure. We've continued to replace wooden distribution poles,
enhance electric grid resiliency, invest in custornerfacing techrnlogy, replace nduralgas pipe,
upgrade substations, protect againstwildfireand much more. We've made these investments
on behalf of our customers because it's the right thing to do. Our customers expect the energyto be there when they need it.
"The ongoing effort to align the rates customers pay with Avista's costs to serve is one of the
main reasons we file general rate requests. We're mindful of when we file rate cases to
minimize the impact to our customers and have chosen to move forward at this time to reduce a
more significantfinancial impact for customers in the future. We understand that it's challenging
and often frtlstrating when we file rate c€ilses and that many people are struggling right now-
This is why we've worked hard to identify howwe can move forward in away that doesn'tincre*e the burden for our customers at this time while also acknowledging the financial
investment we've made in inf rastructure, on their behalf. Through the use of a Tax Customer
pLedit in particular, our proposalwould help to mitigate the Company's rate request, resulting in
little to no change in customer's bills.
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 wrys to best serve our
customers that contribute to keeping energy pries low," Vermillion said.
Two-YearRate Plan
The proposal is a two-year rate plan, with new rates taking effect Sept. 1 ,2121and Sept. 1,
2022. This plan would create a stay-out period where Avista would not f ile a new general rate
case for new rates to be effective priorto Sept. 1 ,2023. This would provide customers with a
level of predictability in their expected future energy prices.
Avista's Requests
Avista's request, if approved, is designed to increase annualelectric base revenues by $24.8million or10.1%effediveSept. 1,2021and$8.7million or3.2o/oeffediveSept. 1,2OiZ. fhe
Company-, ho_wever, i_s_proposing to apply a Tax Customer Credit that would f ully offset the
increase for Sep 1,2021, resulting in no bill changefor customers.
For natural gas, the rate request is designed to increase annual base revenues by $0.1 million
or O.1o/o effective Sept. 1 ,2021and $1 .0 million, or 2.2o/o effective Sept. 1 ,2022. The Tax
Customer Credit for natural gas would more than fully offset the Sept. 1 ,2021increase,resulting in a rate reduction for all customers, and as discussed below, would continue for a ten-year period, benefitting customers. The Company is proposing to offset the majority of the
increase forthe Sept. 1 ,2022 rate change with other defened customer credits.
The combined effect of the proposed rate plan and the offseting customer credib is an increase
to electric revenues of $8.7 million, or 3.5%, and a decrease to natural gas revenues of 91.1million, or 1.7Yo.
The electric and natural gas requests are based on a proposed rate of return (ROR) on rate
base of 7 .30o/o with a common equity ratio of 50% and a 9.g% return on equity (RoE).
Avista serves more than 138,000 electric and 89,000 natural gas customers in ldaho. The last
electric general rate case filed by Avista in ldaho was on June 7, 2019, and for natural gas was
June 8, 2017. The Commission has up to nine months to reviewAvista's requests.
Tax CustomerCredit
To mitigate the proposed base rate increase on customers, Avista is proposing aTax Customer
Credit. During 2020, Avista identified that there was opportunity to change the current
methodology related to the treatment of certain ta< items, whereby certain tax benefits could be
passed along to customers over a shorter timef rame than over the life of those long -lived
assets,as isthecurrentpractice.Forldaho,thetotalis$31.3million(electric)andg12.1 million
(natural gas). The proposed amortization of the elecfic tax benefits would offsetthe Company's
base electric rate relief requested in its entirety for Rate Year 1 (Sept. 1,2021) until
approximately Nov. 30,2022. For natural gas customers, the Company proposes to begin
amortizing the natural gas ta< benefits beginning Sept. 1 ,2021over a 1O-year period
Residentia! Gustomer Bills
Electric
Effective Sept. 1. 2021: Residential customers using an average of 892 kilowatt hours per
month would see their monthly bills remain unchanged at $85.63.
Effective Sept. 1. 2022: Residential customers using an average of 892 kilowatt
month would see their monthly bills increase from $85.63 to $89.01, an increase of
3.9% per month. lncluded in that billchange is a proposed increase in the basic monthly charge
of $2.00, to a level of $8.00 per month.
Natunl Gas
Effective Seot. 1. 2021: Residential customers using an average of 63 therms per month would
see their monthly bills decrease by $0.95, from $49.491o $48.54.
Effective Seot. 1. 2022: Residential customers using an average of 63 therms per month would
see their monthly bills increase from $48.54 to $48.59, an increase of $0.05 or 0.1o/opar month
lncluded in that bill change is a proposed increase in the basic monthly charge of $2.00, to a
Ievel of $8.00 per month, offset by a decrease in the volumetric, per-therm rate.
Changes by Service Schedule
The requested electric change by service schedule is as follows
The requested naturalgas change by service schedule is as follows.
Additional information about Avista's rate request and energy prices is arailable at
www. myavista. com/rates.
Rate Schedule Proposed Sept. 1,2021
Billing Change
Proposed Sept. 1,2022
Billing Change
ResidentialService - Schedule 1 o.o %3.9 %
GeneralService - Schedules 11 &12 0.0%3.4 o/o
Large GeneralService - Schedules 21
&22
0.0 %3.4%
Extra Large GeneralService -
Schedule 25
0.0%3.4 o/o
Extra Large GeneralService 25P -
Schedule 25P
0.0 o/o 1.3o/o
Pumping Service - Schedules 3'1 & 32 o.o%3.4 %
Street &Area Lights - Schedules 41 -
49
0.0%3.4 0/o
Rate Schedule Proposed Sept. 1,2021
Billing Change
Proposed Sept. 1,2022
Billing Change
General Service - Schedule 101 -1.9 %0.1%
Large GeneralService - Schedules
111 & 112
-1 .5 0/o 0.1%
Transportation Service - Schedule 146
(excludes commodity and interstate pipeline
transportation costs)
-2.7 o/o 0.2%
Total -1 .8 o/o 0.1 0/o
Customer Resources
To assist customers in managing their energy bills, Avista offers servicesforcustomers such as
cornfort levelbilling, payment arrangements and CustomerAssistance Referraland Evaluation
Services (CARES), which aid special-needs customers through refenals 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 www.myavista.com.
Rate Application Procedure and Additional lnformation
Avista's application is a proposal, subject to public review and a Commission decision. Due to
the COVID-19 pandemic, we are unable to provide copies at our office locations as we usually
do. However, a copy of the application is available for public review 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
(https://puc.idaho.gov/RssPaSe) to receire periodic updates vla e-mail about the case. Copies
of the rate filing is also available on our website, www.myavista.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
AboutAvista 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 400,000 customers and natural gas to 367,000 customers. lts
service territory covers 30,000square 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 Light and Power Company. Avista stock
is traded under the ticker symbol "AVA." For more information about Avista, please visit
www.avistacorp.com.
This news release contains fonrard-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 f rom 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-Kfortheyearended Dec. 31 ,2019 and the Quarterly Reporton Form 10-Qforthe
quarter ended Sept. 30, 2020
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