20210730Customer Notice and Press Release.pdf

lmportant Notice for ldaho Electric and Natural Gas Customers
(August 2021)
DRAFT
Avista 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 $1.0
million or 0.4o/o effective Oct. 1, 2021 and increase overall natural gas revenue by approximately $0.3 million
or 0.4o/o effective Nov. 1 ,2021. These annual filings have no impact on Avista's earnings.
Electric Adjustment Filings
Four annual electric adjustments were filed, that if approved, are designed to change overall electric
revenues effective Oct. 1, 2021as follows:
1. Power Cost Adjustment (PCA): an increase of approximately $7.2 million or 2.8o/o2. Fixed Cost Adjustment (FCA): a decrease of approximately $0.7 million or 0.3%3. Electric Energy Efficiency: a decrease of approximately $5.6 million or 2.2o/o4. Bonneville Power Administration (BPA) Residential Exchange Program: an increase of
approximately $O.t million or O.1o/o
When combined, the four requests are designed to increase overall electric revenue by approximately $1.0
million or 0.4o/o effective Ocl. 1, 202'1.
Natural Gas Adjustment Filing
The natural gas adjustment request is the annual natural gas FCA. lf approved, Avista's request is designed
to increase overall natural gas revenues by approximately $0.3 million or 0.4Yo effective Nov. 1 ,2021.
Customer Bills Resulting from these Filings
lf the electric PCA, FCA, energy efficiency and BPA filings are approved, residential electric customers in
ldaho using an average of 892 kilowatt hours per month would see their monthly bills decrease from $85.63
to $84.09, a decrease of $1.54 per month, or approximately 1.8%. The proposed electric rate change would
be effective Ocl. 1,2021 .
The requested electric rate change by rate schedule are as follows
Residential Service - Schedule 1
General Service - Schedules 1'l & 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 4149
Overall
General Service - Schedule 101
Large General Service - Schedules 111 & 112
lnterruptible Service - Schedules 131 & 132
Transportation Service - Schedule 146
Overall
-1.8o/o
1.8o/o
3.Oo/o
2.3o/o
2.5o/o
2.2o/o
-1.Oo/o
O.4o/o
lf the natural gas FCA filing is approved, residential natural gas customers in ldaho using an average of 63
therms per month would see their monthly bills increase from $49.49 to $49.67, an increase of $0.18 per
month, or approximalely 0.4o/o. The proposed natural gas rate change would be effective Nov. 1 ,2021.
The net effect, on a revenue basis, for the requested natural gas rate change by rate schedule are:
O.4o/o
0.4o/o
0.Oo/o
O.0o/o
O.4o/o
Power Cost Adjustment (PCA)
The PCA is an annual rate adjustment made to reflect the difference between the actual cost of generating
and purchasing electric power to serve customers and the cost currently included in customer rates. Over
the last year, power supply costs have been primarily higher than those included in retail rates due to higher
wholesale electric and natural gas prices.
Fixed Gost Adjustment (FCA)
The electric and natural gas 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 other factors. Generally, under the FCA, Avista's
revenues are adjusted each month based on the number of customers. The annual dffierence between
revenues based on sales and the number of customers is surcharged or rebated to customers beginning
in the following year.
The proposed FCA rate adjustments in 2021 are primarily driven by variations in 2020 customer usage
related to weather and the COVID-19 pandemic where a higher level of residential customer usage was
partially offset by a lower level of non-residential customers usage. 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.
Energy Efficiency Adjustment
The energy efficiency adjustment is related to the funding of Avista's electric energy efficiency programs.
This annual adjustment aligns the amount that is collected in customer rates with the actual costs to run
and deliver the programs. Avista's programs are based on providing a financial incentive or rebate for cost-
effective energy efficiency measures. Over the last year, the amount collected in customer rates exceeded
the actual costs to run and deliver the programs.
Residential Exchange Adjustment
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 2021 will result in a slightly lower level of benefits than is currently being passed through to
qualifying customers.
Rate Application Procedure
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.ouc.idaho.oov). 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.ouc.idaho.qov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the case. Copies
of rate filings are also available on our website, www.mvavista.com/rates.
lf you would like to submit comments on the proposed rate change, 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
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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Contact: DRAFT
Med ia : Celena Mock (509) 4954923 celena. [e-mail]
lnvestors: John Wilcox (509) 49541 71 [e-mail]
Avista 2417 Media Access (509) 4954174
Avista Makes Annual Price Adjustment Filings in ldaho
Reguesfs would result in change in electric prices effective Oct. 1, 2021 and naturalgas prices
Nov.1,2021.
SPOKANE, Wash. - July 30,2021,1:05 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 $1.0 million or 0.4o/o effective Oct. 1,
2021 and increase overall natural gas revenue by approximately $0.3 million or 0.4o/o effective Nov. 1,
2021. These annualftlings have no impact on Avista's earnings.
Electric Adjustment Filings
Four annual electric adjustments were filed, that if approved, are designed to change overall electric
revenues effective Oct. 1, 2021 as follows:
1. Power Cost Adjustment (PCA): an increase of approximately $7.2 million or 2.8o/o2. Fixed Cost Adjustment (FCA): a decrease of approximately $0.7 million or 0.3olo3. Electric Energy Efficiency: a decrease of approximately $5.6 million or 2.2o/o4. Bonneville Power Administration (BPA) Residential Exchange Program: an increase of
approximately $0.1 million or 0.1o/o
When combined, the four requests are designed to increase overall electric revenue by approximately
$1.0 million orO.4o/o effective Oc/..1,2021.
Natural Gas Adjustment Filing
The natural gas adjustment request is the annual natural gas FCA. !f approved, Avista's request is
designed to increase overall natural gas revenues by approximately $0.3 million or 0.4% effective Nov. 1,
2021.
Gustomer Bills Resulting from these Filings
lf the electric PCA, FCA, energy efficiency and BPA filings are approved, residential electric customers in
ldaho using an average of 892 kilowatt hours per month would see their monthly bills decrease from
$85.63 to $84.09, a decrease of $1.54 per month, or approximately 1.8%. The proposed electric rate
change would be effective Oct. 1,2021.
The net effect, on an annual revenue basis, for 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
-1.8o/o
1.8o/o
3.0o/o
2.3o/o
2.5o/o
2.2o/o
-1.0o/o
0.40/o
lf the natural gas FCA filing is approved, residential natural gas customers in ldaho using an average of
63 therms per month would see their monthly bills increase from $49.49 to $49.67, an increase of $0.18
per month, or approximately O.4o/o. The proposed natural gas rate change would be effective Nov. 1,
2021.
The net effect, on a revenue basis, for the requested natural gas rate change by rate schedule are as
follows:
General Service - Schedule 101
Large General Service - Schedules 111 & 112
lnterruptible Service - Schedules 131 & 132
Transportation Service - Schedule 146
Overall
0.40/o
0.4o/o
0.0%
0.0%
o.40/o
Power Cost Adjustment (PCA)
The PCA is an annual rate adjustment made to reflect the difference between the actual cost of
generating and purchasing electric power to serve customers and the cost cunently included in customer
rates. Over the last year, power supply costs have been primarily higher than those included in retail rates
due to higher wholesale electric and natural gas prices.
Fixed Cost Adjustment (FCA)
The electric and natural gas 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, willvary,
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 other factors. Under the FCA, Avista's
revenues are adjusted each month based on the number of customers. The annual difference between
revenues based on sales and the number of customers is surcharged or rebated to customers beginning
in the following year.
The proposed FCA rate adjustments in 2021 are primarily driven by variations in 2020 customer usage
related to weather and the COVID-19 pandemic where a higher level of residential customer usage was
partially offset by a lower level of non-residential customers usage. The FCA mechanisms do not apply to
Avistia's Electric Extra Large General and Street Lighting Service Schedules, nor to its Natural Gas
! nterruptible and Transportation Service Schedules.
Energy Efficiency Adjustment
The energy efficiency adjustment is related to the funding of Avista's electric energy efficiency programs.
This annual adjustment aligns the amount that is collected in customer rates with the actual costs to run
and deliver the programs. Avista's programs are based on providing a financial incentive or rebate for
cost-effective energy efficiency measures.
Residential Exchange Adj ustment
The Residential Exchange Program provides a share of the benefits of the federal Columbia River power
system to the residential and smallfarm 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
Oe/..202'l will result in a slightly lower level of benefits than is currently being passed through to qualifying
customers.
Rate Application Proced u re
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
lirrtsra
Commission's website (www.ouc.idaho.oov). Customers may file with the Commission
related to Avista's lilings. Customers may also subscribe to the Commission's RSS feed
(htto://www.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 rate change, you can do so by going to the
Commission website or mailing comments to:
ldaho Public Utilities Commission
P.O. Box 83720
Boise, lO 83720-0074
About Avista Gorp.
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. Its 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
Lioht and Power Companv. Avista stock is traded under the 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 , 2020 and the Quarterly Report
on Form 10-Q for the quarter ended March 31,2021.
SOURCE: Avista Corporation
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