20230731Customer Notice.pdf

Important Notice for Idaho Electric and Natural Gas Customers DRAFT
(August 2023)

Avista has made annual rate adjustment filings with the Idaho Public Utilities Commission (IPUC or
Commission) that if approved, are designed to increase overall electric revenues by approximately $6.1
million or 2.4% effective Oct. 1, 2023 and decrease overall natural gas revenue by approximately $0.4
million or 0.4% effective Nov. 1, 2023. 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, 2023 as follows:

1. Power Cost Adjustment (PCA): an increase of approximately $10.9 million or 4.3%
2. Fixed Cost Adjustment (FCA): a decrease of approximately $1.9 million or 0.7%
3. Electric Energy Efficiency: a decrease of approximately $3.1 million or 1.2%
4. Bonneville Power Administration Residential Exchange (ResEx) Program: an increase of
approximately $0.2 million or 0.1%

Natural Gas Adjustment Filing
The natural gas adjustment request is the annual natural gas FCA. If approved, Avista’s request is designed
to decrease overall natural gas revenues by approximately $0.4 million or 0.4% effective Nov. 1, 2023.

Customer Bills Resulting from these Filings
If the electric PCA (AVU-E-23-08), FCA (AVU-E-23-09), Energy Efficiency (AVU-E-23-10) and ResEx
(AVU-23-11) filings are approved, residential electric customers in Idaho using an average of 927 kilowatt
hours per month would see their monthly bills increase from $85.40 to $86.54, an increase of $1.14 per
month, or approximately 1.3%. The proposed electric rate change would be effective Oct. 1, 2023.

The requested electric rate change by rate schedule are as follows:

Residential Service - Schedule 1 1.4%
General Service - Schedules 11 & 12 2.9%
Large General Service - Schedules 21 & 22 2.2%
Extra Large General Service - Schedule 25 5.2%
Extra Large General Service - Schedule 25P 5.6%
Pumping Service - Schedules 31 & 32 2.4%
Street & Area Lights - Schedules 41-49 -0.4%
Overall 2.4%

If the natural gas FCA (AVU-G-23-05) filing is approved, residential natural gas customers in Idaho using
an average of 64 therms per month would see their monthly bills decrease from $73.42 to $73.29, a
decrease of $0.13 per month, or approximately 0.2%. The proposed natural gas rate change would be
effective Nov. 1, 2023.

The net effect, on a revenue basis, for the requested natural gas rate change by rate schedule are:

General Service - Schedule 101 -0.2%
Large General Service - Schedules 111 & 112 -1.2%
Interruptible Service - Schedules 131 & 132 0.0%
Transportation Service - Schedule 146 0.0%
Overall -0.4%

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.

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, 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 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 are primarily driven by variations in 2022 customer usage related to
weather and savings from participating in efficiency programs. The FCA mechanisms do not apply to
Avista’s Electric Extra Large General and Street Lighting Service Schedules, nor to its Natural Gas
Interruptible 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 year,
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.

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 higher than the level of benefits received from BPA. Through
this filing Avista is seeking to slightly decrease the level of benefits provided to qualifying customers in order
to return the over-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.

If you would like to submit comments on the proposed rate change, you can do so by going to the
Commission website puc.idaho.gov/Form/CaseComment or mailing comments to:

Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074

When filing comments reference the appropriate Case Number.

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.