20220729Customer Notice and Press Release.pdf

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. Due to
fluctuations in usage, Avista rebated to customer a
level of benefits that was slightly lower than the le\rel
of benefits received from BPA. Through this filing
Avista is seeking to slightly increase the level of benefits
provided to qualifying customers in order to return the
under-rebated balance.
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.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.
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.
Avista has made annual rate adjustment filings with the
ldaho Public Utilities Commission (IPUC or Commission)
that if approved, are designed to decrease overall
electric revenues by approximately $12.0 million or
4.7o/o effective Oct. 1, 2022 and decrease overall
natural gas revenue by approximately $0.1 million or
0.2% effective Nov. 1, 2022. These annualfilings 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 Act. 1,2022 as follows:
1. Power Cost Adjustment (PCA): a decrease of
approximately $3.1 million or 1.2Vo
2. Fixed Cost Adjustment (FCA): a decrease of
approximately $5.1 million or 2.0o/o
3. Electric Energy Efficiency: a decrease of
approximately $3.7 million or 1.4o/o
4. Bonneville Power Administration Residential
Exchange (ResEx) Program: a decrease of
approximately $0.1 million or O.1o/o
Natural Gas Adjustment Filing
The natural gas adjustment request is the annual
natural gas FCA. lf approved, Avista's request is
designed to decrease overall natural gas revenues
by approximately $0.1 million or 0.2% effective
Nov. 1,2022.
Customer Bills Resulting from these Filings
lf the electric PCA, FCA, energy efficiency and ResEx
filings are approved, residentia! electric customers
in ldaho using an average of 892 kilowatt hours per
month would see their monthly bills decrease from
lmportant Notice for
ldaho Electric and
Natural Gas Customers
August 2022
AVA53Oi frinsr*
$86.29 to $82.19, a decrease of $4.10 per month, or
approximately 4.8%. The proposed electric rate change
would be effective Oct. 1, 2022.
The requested electric rate change by rate
schedule are as follows:
Schedule
No.Rate Schedule Change in
Billed Revenue
1 Residential -5.Oo/o
1 1/12 General 5ervice -6.0o/o
21/22 Large General
Service -4.3o/o
25 Ex. Lg. General
Service -3.2o/o
25P Ex. Lg. General
Service -3.5o/o
31/32 Pumping Service -4.9o/o
41-49 Street and Area
Lights -1 .2o/o
Overall -4.7o/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 decrease
from $62.06 to $6'1.73, a decrease of $0.33 per month,
or approximately 0.5%. The proposed natural gas rate
change would be effective Nov. 1, 2022.
The net effect, on a revenue basis, for the
requested natural gas rate change by rate
schedule are:
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 were higher than
those included in retail rates due to higher wholesale
electric and natural gas prices. However, the higher
power supply costs were more than offset by the
expiration of last year's surcharge, resulting in an
overall rate decrease.
Fixed Cost Adiustment (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 weathel energy conservation
or other factors. Generally, 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 2022 are
primarily driven by variations in 2021 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 filing adjusts the level of funding
for Avista's electric energy efficiency customer
programs so that the level of customer funding aligns
with the costs to deliver the programs. Each yeal
customers achieve significant energy savings and
receive rebates and incentives through Avista's energy
efficiency programs. The Commission approves the
amount of funding for these important programs
through a portion of energy rates. The rate reduction
proposed reflects the lower level of funding needed to
operate the programs in the coming year.
Schedule
No.Rate Schedule Change in
Billed Revenue
101 General Service -0.5o/o
111/112 Large General
Service 1.2o/o
131/132 lnterruptible Sales
Service 0.Oo/o
146 Transportation
Service 0.Oo/o
Overall -O.2o/o
^l,istsr,a
Gontact: DRAFT
Media: Casey Fielder [phone] [e-mail]
I nvestors : Stacey Wenz [phone] stacev.we nz@avistacoro. com
Avista 2417 Media Access (509) 4954174
Avista Makes Annual Price Adjustment Filings in ldaho
Reguests would result in lower electric prices effective Oct. 1,2022 and lower naturalgasprices
Nov. 1,2022.
SPOKANE, Wash. - July 29,2022,1:05 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 decrease overall electric revenues by approximately $12.0 million or 4.7o/o effective Oct. 1,
2022 and decrease overall natural gas revenue by approximately $0.1 million or 0.2o/o effective Nov. 1,
2022. These annualfilings have no impact on Avista's eamings.
Electric Adjustment Filings
Four annual electric adjustments were filed, that if approved, are designed to change overall electric
revenues effective Oct. 1, 2022 as follows:
1. PowerCostAdjustment(PCA):adecreaseof approximately$3.1 million or1.2o/o2. Fixed Cost Adjustment (FCA): a decrease of approximately $5.1 million or 2.Oo/o3. Electric Energy Efficiency: a decrease of approximately $3.7 million or 'l.4o/o4. Bonneville Power Administration Residential Exchange (ResEx) Program: a decrease of
approximately $O.t million or 0.1o/o
Natura! Gas Adjustment Filing
The natural gas adjustment request is the annualnaturalgas FCA. lf approved, Avista's request is designed
to decrease overall natural gas revenues by approximately $0.1 million or O.2o/o effective Nov. 1 ,2022.
Gustomer Bills Resulting from these Filings
lf the electric PCA, FCA, energy efficiency and ResEx filings are approved, residential electric customers
in ldaho using an average of 892 kilowatt hours per month would see their monthly bills g!ry from
$86.29 to $82.19, a decrease of $4.10 per month, or approximately 4.8o/o. The proposed electric rate
change would be effective Oct.1,2022.
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 2'l &22
Extra Large General Service - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 31 & 32
Street & Area Lights - Schedules 4149
Overall
-5.0o/o
-6.0%
4.30/o
-3.2o/o
-3.50/o
-4.9o/o
-1.2o/o
4.70/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 decrease from $62.06 to $61.73, a decrease of $0.33 per
month, or approximately 0.5%. The proposed natural gas rate change would be effective Nov. 1,2022.
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
lntenuptible Service - Schedules 131 &'132
Transportation Service - Schedule 146
Overall
-0.s%
1.2Yo
0.0o/o
0.0%
4.2o/o
Power Gost 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 were higher than those included in retail rates due to higher wholesale
electric and natural gas prices. However, the higher power supply costs were more than offset by the
expiration of the prior year's surcharge, resulting in an overall rate decrease.
Fixed Cost Adjustment (FCA)
The electric and naturalgas FCA b a mechanism designed to break the link betwcen a utility's re\renuos
and customers' energy usage. Avistia's actua! revenue, based on kilowaft hour or therm cales, 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. Under the FCA, Avbta's rcvenuas
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 2022 are primarily driven by variations in 2021 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
lntenuptible and Transportation Service Schedules.
Energy Efficiency Adjustment
The energy efiiciency adjustment is related to the funding of Avista's elec{ric energy efficiency progmms.
This adjustment aligns the amount that is collected in customer rates with the actual costs to run and deliver
the programs. Avista's energy efficiency programs are designed to provide a financial incentive or rebate
for cost-effective energy efficiency measures. The Commission approves the amount of funding for these
important programs through a portion of energy rates. The rate reduction proposed reflects the lower level
of funding needed to operate the programs in the coming year.
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. Due to fluctuations in usage, Avista rebated to
customers a level of benefits that was slightly lower than the level of benefits received from BPA. Through
this filing Avista is seeking to slightly increase the level of benefits provided to qualifying customers in order
to return the under-rebated balance.
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
related to Avista's filings. Customers may also subscribe to the Commission's RSS feed
(hfto://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 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, 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 tenitory covers 30,000
square miles in eastern Washington, northem ldaho and parts of southem 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 borough of Juneau, Alaska, through its subsidiary Alaska Electric Liqht
and Power Comoanv. 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 staternents rcgarding 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 , 2021 and the Quarterly Report on
Form 10Q for the quarter ended March 31,2022.
SOURCE: Avista Corporation
.22fr.
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