151005_AVUPCA.pdf

Case No. AVU-E-15-07
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Avista PCA results in 3.5% reduction for electric customers

BOISE (October 5, 2015) – The variable portion of Avista Utilities’ electric rates decreased by an
average 3.5 percent effective October 1.

Avista electric rates are adjusted up or down every year on Oct. 1 depending on the previous
year’s weather and market conditions and other variable factors. Because variable rate impacts
cannot be predicted, rates are adjusted annually through the Power Cost Adjustment (PCA)
mechanism to match what customers paid in the PCA account with actual expense. Avista has a
separate application before the Idaho Public Utilities Commission for an increase in the fixed
portion of customer rates – the base rate – which is yet to be decided.

On the gas side, Avista also has a variable cost tracker called the Purchased Gas Cost
Adjustment (PGA) which is effective every Nov. 1. In this year’s PGA, Avista is seeking an
average 14.5 percent decrease in rates. The company also has an application for an increase to
the fixed portion of gas rates. As on the electric side, the proposed base rate increase has not
yet been determined.

Avista’s variable power supply costs decreased by about $1.2 million from July 1, 2014, through
June 30, 2015. Most of that – $820,000 – came from lower payments owed to Clearwater
Paper, which owns a cogeneration plant that sells power to Avista. Another $400,000 credited
customers is the result of a settlement between electric utilities and the Bonneville Power
Administration.

With the Oct. 1 adjustment, the PCA changes from a surcharge of 0.252 cents per kilowatt-hour
to a rebate of 0.032 cents per kWh. For a residential customer who uses the company’s average
of 929 kWh per month, the reduction is about $2.64 per month.

A copy of the commission’s order and other documents related to this case is available on the
commission’s website at www.puc.idaho.gov. Click on “Open Cases” under the “Electric”
heading and scroll down to Case No. AVU-E-15-07.