160224_AVUfee.pdf

Case No. AVU-E-16-01, AVU-G-16-01, Order No. 33459
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Avista wants to eliminate convenience fee

BOISE (Feb. 25, 2016) – Avista Utilities is seeking authority to initiate a program that would
allow it to eliminate the “convenience fee” residential customers are charged when they pay
electric and gas bills online or by telephone. The $3.50 per transaction fee is paid to a third-
party vendor. Avista serves about 125,000 electric and 80,000 natural gas customers in
northern Idaho.

Avista maintains it can process the online and telephonic payments for as low as $1.50 per
transaction, but would collect the amount in rates if it is later determined that the company
and its shareholders were losing money as a result of the fee-free payment program. Avista
estimates it will cost about $195,000 per year to process the payments for Idaho electric
customers and $120,000 per year for natural gas customers.

Avista claims the convenience fee is “one of the largest frustrations” expressed by its growing
number of customers who pay electronically or by telephone. Only about 38 percent of
customers mailed in payments in 2015.

Avista is not seeking an increase in rates at this time, but is asking the Idaho Public Utilities
Commission for authority to defer the program’s costs for up to 36 months. Avista would
update the commission on program participation rates and the fees incurred every six months
and, after establishing a history with the program, may seek to recover program costs as part of
a general rate case. Avista does not seek to earn a return on its investment in the program.

The utility is seeking similar approval in its Washington and Oregon jurisdictions as well and
hopes to begin the fee elimination program in the first half of this year.

The commission is taking comment through March 14. Comments are accepted via e-mail by
accessing the commission’s website at www.puc.idaho.gov and clicking on "Case Comment
Form,” under the “Consumers” heading. Fill in the case number (AVU-E-16-01) and enter your
comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to
[phone].