20060929Revised customer notice, press release.pdf

RECEIVED
lOnG SEP 29 AM 8: 45
IDAHO PUBLIC
UTILITIES COMMISSIOtJ Avu-13 --ob-
A VISTA UTILITIES
Exhibit "
Notice to Public of Applicant's Proposed Tariffs
September 28, 2006
A VISTA UTILITES
NOTICE OF IDAHO TARIFF CHANGE
(Natural Gas Service Only)
Notice is hereby given that the Company has requested the withdrawal ofthe Purchased
Gas Cost Adjustment (PGA) filed with the Commission on September 14, 2006 as case
number A VU-06-03. In replacement of that filing the "Sheets" listed below of Tariff
IPUC No. 27, covering natural gas service applicable to Idaho customers of Avista
Utilities have been filed with the Idaho Public Utilities Commission (IPUC) in Boise
Idaho.
Ninth Revision Sheet 150 canceling Eighth Revision Sheet 150
Original Sheet 150A and
Sixth Revision Sheet 155 canceling Fifth Revision sheet 155
Ninth Revision Sheet 150 decreases the cost of natural gas by $.02547 per therm for all
firm sales customers and by $.00701 per therm for interruptible sales customers.
Sixth Revision Sheet 155 decreases the amortization rate by 1.607 cents per therm for
customers on Schedules 101 , 111 and 121.
If the proposed tariff is approved by the IPUC, total Company Idaho revenues will decrease
approximately $2.8 million per year, or about 3.4%. This request is a Purchased Gas Cost
Adjustment (PGA) that is filed annually to reflect changes in the cost of gas purchased to serve
customers. Any increases or decreases resulting from these PGA filings directly result from
the cost of gas purchased in the marketplace; A vista makes no additional profits from these rate
changes.
A residential or small business customer served under Schedule 101 using an average of
65 therms per month can expect to see their monthly bill decrease by approximately
$2.70 or about 3.4%, from $80.43 to $77.73 per month. Larger commercial customers
served under Schedules III and 121 can expect to see an average decrease of about 3.
and 4.0% respectively, with the higher percentages due to lower base rates. However
actual customer increases will vary based on therms consumed.
This filing requests an effective date of November 1 , 2006.
Copies of the proposed tariff changes are available for inspection in the Company's
offices or can be obtained by calling [phone] or writing:
A vista Utilities
Attention: Ms. Patty Olsness
O. Box 3727
Spokane, W A. 99220-3727
September 28, 2006
RECEIVED
2006 SEP 29 AM 8: 45
IDAHO FJUBLIC
UTILITIES COMMISSION A-V0-
e;--Ob-O"3
A VISTA UTILITIES
Exhibit "B - 1"
Notice Mailed to Each Idaho Gas Customer
of Applicant's Proposed Tariff Change
September 28, 2006
Odober 2006 supplies during September at these lower prices, resulting in
a proposed PGA decrease of 3.4%, as compared to the
original request of a 3.2% increase.In response to falling natural gas
pric~s in September, A vista revises
orginal rate request and proposes a
0 % decrease in natural gas prices
effective Nov. 1
Regarding the request to increase the rates to fund
conservation programs, Avista has had a natural gas rate
surcharge in place since 200 1 to fund these programs. The
surcharge provides for partial fmancial reimbursement to
customers who install certain conservation measures and
use less natural gas as a result. With the increase in the cost
of natural gas over the past several years, there has been a
substantial increase in the installation of conservation
measures and the need for additional funding to support
these programs.
n Sept 29, Avista filed with the Idaho Public Dtilities .
Commission (IPDC) a revised request that would
result in a net decrease in natural gas rates by an average
of2.0% to be effective Nov. 1 2006. The revised request.
is a purchased gas cost adjustment (pGA) that is filed
annually to reflect changes in the cost of gas purchasedby Avista to serve
customers. On Important Notice for
Sept. 13, Avista Idaho Natural Gas Customers
originally filed aPGA request to
increase natural gas rates by an average of3.2% - some
customers received a notice regarding the original
request. Since that time, natural gas prices have fallen
substantially and Avista has been able to purchase some
of this lower cost gas and revise its original request to
- reflect an average decrease of 3.4%.
If the proposed requests are approved by the IPUC, a
residential or small commercial customer using an average
of 65 therms per month can expect to see an average
decrease of $1.64 per month, or about 2.0 percent. The bill
for 65 therms would decrease from a present amount of
$80.43 to $78.79. Larger commercial and industrial customers
served under Schedules III and 121 can expect to see an
average decrease of 2.4% and 2.6% respectively. The higher
percentages for larger commercial and industrial customers
are due to lower base rates.
On Sept. 13, Avista also filed a request to increase the
rates charged to fund natural gas conservation programs.
This request would result in an average increase of 1.4%
and would generate an additional $1.1 million per year to
fund these programs. Avista Utilities makes no additional
profits from these rate changes.
These requests are subject to review by the public and the
IPUc. A fmal decision on the requests will be issued by the
IPUC on or before Nov. 1. A copy of these requests are
available for review inAvista s local offices and at the office
of the IPuc.
As previously mentioned, the wholesale price of natUral
gas has fallen substantially during September. The price
for natural gas has been extremely volatile and fluctuates
daily based on supply and demand, similar to the price for
crude oil. Because of this volatility, Avista purchases
natural gas throughout the year for future delivery to .
serve customers' needs for the forthcoming year. While
Avista had purchased over half of this estimated need
prior to September, it was able to purchase additional gas
Ways to save on your energy bill
Take time to check to ensure that your home is properly
sealed and insulated. Check the caulking around your
windows and door frames. Also check the insulation in your
attic. A well-insulated residence will keep the heat from
escaping and can save in heating costs. Avista has partial
rebate programs for the cost of additional insulation and
other weatherization measures.
(Continued on reverse.
If you are not already on Comfort Level Billing, consider
applying for this service. Comfort Level Billing averages
your annual bill into equal monthly payments.
www.avistautilities.com
~~'
'V'STA.
IDGAS 1006G'70000
For information on conservation tips and rebates, energy
assistance programs, and bill payment plans, visit our Web
site at www.avistautilities.com or call us at [phone].
RECE\\!ED
100fJ SEt' 29 ~t-\ 8: 45
\DAnG pubLIC
U1\L\1\E.S COMM\SS\ON
AVLJ rs--O b--O$
A VISTA UTILITIES
Exhibit "
Press Release
September 28, 2006
Avo
- D -06 -0 RECEIVED
200& SEP 29 AM 8: ~~~'V'STA~
IDAHO PU~jLiGContact: UTILITIES COivHvllSSION
Media: Catherine Markson [phone] catherine.markson(a),avistacorp.com
Investors: Jason Lang [phone] iason.1angifP,avistacorp.com
Avista 24/7 Media Access [phone]
A vista Reduces Original Rate Requests in Response to Lower
Natural Gas Prices
Avista proposes increased funding in Washington for natural gas conservation
SPOKANE, Wash. - Sept. 29, 2006, 5:30 a.m. PDT: Avista (NYSE:A V A) today filed
revised purchased gas cost adjustments (PGAs) with the Idaho and Washington utility
commissions that would result in an overall natural gas price decrease of 2 percent in Idaho
and a price increase of2.5 percent in Washington. Avista s filings propose an effective date of
Nov. 1 , 2006, in both states.
Previously, Avista s had requested to increase natural gas rates by 8.1 percent in Washington
and by 3.2 percent in Idaho. Since that time, natural gas prices have fallen substantially, and
A vista has been able to purchase some of this lower-cost natural gas and reduce its original
requests.
The price for natural gas is extremely volatile and fluctuates daily based on supply and
demand. Because of this volatility, Avista purchases natural gas at fixed prices throughout the
year for future delivery to serve customers' needs for the coming year. Avista had purchased
over half of this estimated need prior to September; however, it was able to purchase additional
natural gas during September at lower prices, resulting in these revised filings.
A vista is also requesting an increase to rates to fund natural gas conservation programs
Washington. This request represents about half of the proposed 2.5 percent increase and would
generate an additional $2.3 million per year to fund these programs. These programs, in place
since 2001 , provide for partial financial reimbursement to customers who install certain
conservation measures and use less natural gas as a result. To date, theses programs have saved
5 million annual therms of natural gas, that's enough natural gas to supply 5 300 homes for a
year. A similar request to increase funding for natural gas conservation is pending in Idaho.
Even with this pending increase, Idaho customers would still see a decrease of about 2 percent.
If approved by the respective utility commissions, an Idaho customer using an average of
70 therms per month can expect to see an average decrease of $1.76 per month for a total
monthly bill of $84.60. A Washington customer using an average of 70 therms of natural
gas per month can expect to see an average increase of $2.16 per month for a total
monthly bill of$88.81.
These requests are subject to review by the respective state utility commissions. Copies
of these requests are available for review in Avista s local offices and at the offices of the
Washington Utilities and Transportation Commission and the Idaho Public Utilities
Commission.
Avista encourages the wise and efficient use of energy. For information and tips on
Avista s energy assistance programs, conservation tips and bill payment plans, visit
www.AvistaUtilities.com, or call Avista at [phone].
A vista is an energy company involved in the production, transmission and distribution
of energy as well as other energy-related businesses. A vista Utilities is a company
operating division that provides service to 339 000 electric and 298 000 natural gas
customers in three western states. Avista s non-regulated subsidiaries include Avista
Advantage and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol
AVA" For more information about Avista, please visit www.avistacorp.com
A vista Corp. and the A vista Corp. logo are trademarks of A vista Corporation.
This news release contains forward-looking statements, including statements regarding
expected rates, costs and demand for natural gas. Such statements are subject to a variety
of risks , uncertainties and other factors , most of which are beyond the company s control
and many of which could have a significant impact on the company s operations, results
of operations and financial condition, and could cause actual results to differ materially
from those anticipated.
For a further discussion ofthese factors and other important factors, please refer to the
company s Annual Report on Form 10-K for the year ended Dec. 31 2005 and Quarterly
Report on Form 10-Q for the quarter ended June 30 2006. The forward-looking
statements contained in this news release speak only as of the date hereof. The company
undertakes no obligation to update any forward-looking statement or statements to reflect
events or circumstances that occur after the date on which such statement is made or to
reflect the occurrence of unanticipated events. New factors emerge from time to time, and
it is not possible for management to predict all of such factors, nor can it assess the
impact of each such factor on the company s business or the extent to which any such
factor, or combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statement.
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