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HomeMy WebLinkAbout20060914Customer notice and press release.pdfRECEIVED 200& SEP \ 4 PM ~: IDAHO eue,Llc UTILITIES COMMISSIOi'i CASE NO. A VU-O6- CUSTOMER NOTICE AND PRESS RELEASE Se p t e m b e r / O c t o b e r 2 0 0 6 A v i s t a pr o p o s e s 4 . 6 % i n c r e a s e na t u r a l g a s p r i c e s ef f e c t i v e N o v . 1 n S e p t 1 4 , A v i s t a f i l e d w i t h t h e I d a h o P u b l i c U t i l i t i e Co m m i s s i o n ( I P U C ) t w o r e q u e s t s t o i n c r e a s e n a t u r a l ga s r a t e s b y a n a v e r a g e o f 4 , 6% t o b e e f f e c t i v e N o v , 1 20 0 6 , T h e f i r s t r e q u e s t i s a p u r c h a s e d g a s c o s t a d j u s t - me n t ( p G A ) t h a t i s f i l e d a n n u a l l y t o r e f l e c t c h a n g e s i n th e c o s t o f g a s pu r c h a s e d b y Av i s t a t o s e r v e cu s t o m e r s , T h e PG A i n c r e a s e w i l l re s u l t i n a n a v e r a g e i n c r e a s e o f 3 . 2 % a n d g e n e r a t e ad d i t i o n a l a n n u a l r e v e n u e o f a p p r o x i m a t e l y $ 2 , 7 m i l l i o n . An y i n c r e a s e s o r d e c r e a s e s r e s u l t i n g f r o m t h e s e P G A fi l i n g s d i r e c t l y r e s u l t f r o m t h e c o s t o f g a s p u r c h a s e d i n th e m a r k e t p l a c e , T h e s e c o n d r e q u e s t i s t o i n c r e a s e t h e ra t e s c h a r g e d t o f u n d n a t u r a l g a s c o n s e r v a t i o n p r o - gr a m s . T h i s r e q u e s t w o u l d r e s u l t i n a n a v e r a g e i n c r e a s e of 1 . 4 % a n d w o u l d g e n e r a t e a n a d d i t i o n a l $ 1 . 1 m i l l i o n p e r ye a r t o f u n d t h e s e p r o g r a m s , A v i s t a U t i l i t i e s m a k e s n o ad d i t i o n a l p r o f i t s f r o m t h e s e r a t e c h a n g e s , Im p o r t a n t N o t i c e f o r Id a h o N a t u r a l G a s C u s t o m e r s Th e p r o p o s e d i n c r e a s e o f 3 . 2% f o r t h e P G A r e f l e c t s a co n t i n u e d i n c r e a s e i n t h e w h o l e s a l e p r i c e o f n a t u r a l g a s du r i n g t h e p a s t y e a r . T h e p r i c e f o r n a t u r a l g a s f l u c t u a t e s da i l y b a s e d o n s u p p l y a n d d e m a n d , s i m i l a r t o t h e p r i c e fo r c r u d e o i l . I n f a c t , t h e p r i c e f o r n a t u r a l g a s h a s fo l l o w e d a s i m i l a r u p w a r d t r e n d a s o i l p r i c e s o v e r t h e pa s t f e w y e a r s . W h i l e t h e p r i c e o f n a t u r a l g a s h a s f a l l e n fr o m t h e p o s t - hu r r i c a n e l e v e l s d u r i n g l a t e - 20 0 S , t h e av e r a g e c o s t o f g a s p u r c h a s e d f o r t h i s n e x t y e a r i s hi g h e r t h a n t h e a v e r a g e c o s t o f g a s p u r c h a s e d d u r i n g th i s p a s t y e a r , Re g a r d i n g t h e r e q u e s t t o i n c r e a s e t h e r a t e s t o f u n d co n s e r v a t i o n p r o g r a m s , A v i s t a h a s h a d a n a t u r a l g a s r a t e su r c h a r g e i n p l a c e s i n c e 2 0 0 1 t o f u n d t h e s e p r o g r a m s , Th e s u r c h a r g e p r o v i d e s f o r p a r t i a l f i n a n c i a l r e i m b u r s e - me n t t o c u s t o m e r s w h o i n s t a l l c e r t a i n c o n s e r v a t i o n (C o n t i n u e d o n r e v e r s e . ~~ ~ ' V ' S T A . ww w . a v i s t a u t i l i t i e s , co m ID G A S 0 9 0 6 1 7 0 0 0 0 Se p t e m b e r / O c t o b e r 2 0 0 6 Av i s t a p r o p o s e s 4 . 6% i n c r e a s e i n na t u r a l g a s p r i c e s ef f e c t i v e N o v . 1 n S e p t 1 4 , A v i s t a f i l e d w i t h t h e I d a h o P u b l i c U t i l i t i e s Co m m i s s i o n ( I P U C ) t w o r e q u e s t s t o i n c r e a s e n a t u r a l ga s r a t e s b y a n a v e r a g e o f 4 . 6% t o b e e f f e c t i v e N o v , 1 20 0 6 , T h e f i r s t r e q u e s t i s a p u r c h a s e d g a s c o s t a d j u s t - me n t ( p G A ) t h a t i s f i l e d a n n u a l l y t o r e f l e c t c h a n g e s i n th e c o s t o f g a s pu r c h a s e d b y Av i s t a t o s e r v e cu s t o m e r s . T h e PG A i n c r e a s e w i l l re s u l t i n a n a v e r a g e i n c r e a s e o f 3 , 2 % a n d g e n e r a t e ad d i t i o n a l a n n u a l r e v e n u e o f a p p r o x i m a t e l y $ 2 . 7 m i l l i o n . An y i n c r e a s e s o r d e c r e a s e s r e s u l t i n g f r o m t h e s e P G A fi l i n g s d i r e c t l y r e s u l t f r o m t h e c o s t o f g a s p u r c h a s e d i n th e m a r k e t p l a c e , T h e s e c o n d r e q u e s t i s t o i n c r e a s e t h e ra t e s c h a r g e d t o f u n d n a t u r a l g a s c o n s e r v a t i o n p r o - gr a m s , T h i s r e q u e s t w o u l d r e s u l t i n a n a v e r a g e i n c r e a s e of 1 . 4 % a n d w o u l d g e n e r a t e a n a d d i t i o n a l $ 1 . 1 m i l l i o n p e r ye a r t o f u n d t h e s e p r o g r a m s . A v i s t a U t i l i t i e s m a k e s n o ad d i t i o n a l p r o f i t s f r o m t h e s e r a t e c h a n g e s . Im p o r t a n t N o t i c e f o r Id a h o N a t u r a l G a s C u s t o m e r s Th e p r o p o s e d i n c r e a s e o f 3 . 2% f o r t h e P G A r e f l e c t s a co n t i n u e d i n c r e a s e i n t h e w h o l e s a l e p r i c e o f n a t u r a l g a s du r i n g t h e p a s t y e a r . T h e p r i c e f o r n a t u r a l g a s f l u c t u a t e s da i l y b a s e d o n s u p p l y a n d d e m a n d , s i m i l a r t o t h e p r i c e fo r c r u d e o i l . I n f a c t , t h e p r i c e f o r n a t u r a l g a s h a s fo l l o w e d a s i m i l a r u p w a r d t r e n d a s o i l p r i c e s o v e r t h e pa s t f e w y e a r s , W h i l e t h e p r i c e o f n a t u r a l g a s h a s f a l l e n fr o m t h e p o s t - hu r r i c a n e l e v e l s d u r i n g l a t e - 20 0 S , t h e av e r a g e c o s t o f g a s p u r c h a s e d f o r t h i s n e x t y e a r i s hi g h e r t h a n t h e a v e r a g e c o s t o f g a s p u r c h a s e d d u r i n g th i s p a s t y e a r , Re g a r d i n g t h e r e q u e s t t o i n c r e a s e t h e r a t e s t o f u n d co n s e r v a t i o n p r o g r a m s , A v i s t a h a s h a d a n a t u r a l g a s r a t e su r c h a r g e i n p l a c e s i n c e 2 0 0 1 t o f u n d t h e s e p r o g r a m s . Th e s u r c h a r g e p r o v i d e s f o r p a r t i a l f i n a n c i a l r e i m b u r s e - me n t t o c u s t o m e r s w h o i n s t a l l c e r t a i n c o n s e r v a t i o n (C o n t i n u e d o n r e v e r s e . ~~ I 'V ' S T A . ww w . av i s t a u t i l i t i e s . co m ID G A S 0 9 0 6 1 7 0 0 0 0 Se p t e m b e r / O c t o b e r 2 0 0 6 A v i s t a pr o p o s e s 4 . 6 % i n c r e a s e i n na t u r a l g a s p r i c e s ef f e c t i v e N o v . 1 n S e p t 1 4 , A v i s t a f i l e d w i t h t h e I d a h o P u b l i c U t i l i t i e s Co m m i s s i o n ( I P U C ) t w o r e q u e s t s t o i n c r e a s e n a t u r a l ga s r a t e s b y a n a v e r a g e o f 4 . 6% t o b e e f f e c t i v e N o v , 1 20 0 6 , T h e f i r s t r e q u e s t i s a p u r c h a s e d g a s c o s t a d j u s t - me n t ( p G A ) t h a t i s f i l e d a n n u a l l y t o r e f l e c t c h a n g e s i n th e c o s t o f g a s pu r c h a s e d b y Av i s t a t o s e r v e cu s t o m e r s , T h e PG A i n c r e a s e w i l l re s u l t i n a n a v e r a g e i n c r e a s e o f 3 . 2 % a n d g e n e r a t e ad d i t i o n a l a n n u a l r e v e n u e o f a p p r o x i m a t e l y $ 2 , 7 m i l l i o n , An y i n c r e a s e s o r d e c r e a s e s r e s u l t i n g f r o m t h e s e P G A fi l i n g s d i r e c t l y r e s u l t f r o m t h e c o s t o f g a s p u r c h a s e d i n th e m a r k e t p l a c e . T h e s e c o n d r e q u e s t i s t o i n c r e a s e t h e ra t e s c h a r g e d t o f u n d n a t u r a l g a s c o n s e r v a t i o n p r o - gr a m s , T h i s r e q u e s t w o u l d r e s u l t i n a n a v e r a g e i n c r e a s e of 1 . 4 % a n d w o u l d g e n e r a t e a n a d d i t i o n a l $ 1 , 1 m i l l i o n p e r ye a r t o f u n d t h e s e p r o g r a m s . A v i s t a U t i l i t i e s m a k e s n o ad d i t i o n a l p r o f i t s f r o m t h e s e r a t e c h a n g e s . Im p o r t a n t N o t i c e f o r Id a h o N a t u r a l G a s C u s t o m e r s Th e p r o p o s e d i n c r e a s e o f 3 . 2% f o r t h e P G A r e f l e c t s a co n t i n u e d i n c r e a s e i n t h e w h o l e s a l e p r i c e o f n a t u r a l g a s du r i n g t h e p a s t y e a r , T h e p r i c e f o r n a t u r a l g a s f l u c t u a t e s da i l y b a s e d o n s u p p l y a n d d e m a n d , s i m i l a r t o t h e p r i c e fo r c r u d e o i l . I n f a c t , t h e p r i c e f o r n a t u r a l g a s h a s fo l l o w e d a s i m i l a r u p w a r d t r e n d a s o i l p r i c e s o v e r t h e pa s t f e w y e a r s , W h i l e t h e p r i c e o f n a t u r a l g a s h a s f a l l e n fr o m t h e p o s t - hu r r i c a n e l e v e l s d u r i n g l a t e - 20 0 S , t h e av e r a g e c o s t o f g a s p u r c h a s e d f o r t h i s n e x t y e a r i s hi g h e r t h a n t h e a v e r a g e c o s t o f g a s p u r c h a s e d d u r i n g th i s p a s t y e a r , Re g a r d i n g t h e r e q u e s t t o i n c r e a s e t h e r a t e s t o f u n d co n s e r v a t i o n p r o g r a m s , A v i s t a h a s h a d a n a t u r a l g a s r a t e su r c h a r g e i n p l a c e s i n c e 2 0 0 1 t o f u n d t h e s e p r o g r a m s , Th e s u r c h a r g e p r o v i d e s f o r p a r t i a l f i n a n c i a l r e i m b u r s e - me n t t o c u s t o m e r s w h o i n s t a l l c e r t a i n c o n s e r v a t i o n (C o n t i n u e d o n r e v e r s e . ~~ I 'V ' S T A . ww w . av i s t a u t i l i t i e s . co m ID G A S 0 9 0 6 1 7 0 0 0 0 me a s u r e s a n d u s e l e s s n a t u r a l g a s a s a r e s u l t . W i t h t h e in c r e a s e i n t h e c o s t o f n a t u r a l g a s o v e r t h e p a s t s e v e r a l ye a r s , t h e r e h a s b e e n a s u b s t a n t i a l i n c r e a s e i n t h e in s t a l l a t i o n o f c o n s e r v a t i o n m e a s u r e s a n d t h e n e e d f o r ad d i t i o n a l f u n d i n g t o s u p p o r t t h e s e p r o g r a m s , If t h e p r o p o s e d i n c r e a s e s a r e a p p r o v e d b y t h e I P U C , a re s i d e n t i a l o r s m a l l c o m m e r c i a l c u s t o m e r u s i n g a n av e r a g e o f 6 5 t h e n n s p e r m o n t h c a n e x p e c t t o s e e a n av e r a g e i n c r e a s e o f $ 3 . 4 8 p e r m o n t h , o r a b o u t 4 . 3 pe r c e n t . T h e b i l l f o r 6 5 t h e n n s w o u l d i n c r e a s e f r o m a pr e s e n t a m o u n t o f $8 0 . 4 3 to $ 8 3 . 9 I , L a r g e r c o m m e r c i a l an d i n d u s t r i a l c u s t o m e r s s e r v e d u n d e r S c h e d u l e s II I an d 1 2 1 c a n e x p e c t t o s e e a n a v e r a g e i n c r e a s e o f 4 . an d 0% re s p e c t i v e l y , T h e h i g h e r i n c r e a s e p e r c e n t a g e s fo r l a r g e r c o m m e r c i a l a n d i n d u s t r i a l c u s t o m e r s a r e d u e t o lo w e r b a s e r a t e s . Th e s e r e q u e s t s a r e s u b j e c t t o r e v i e w b y t h e p u b l i c a n d th e I P U C , A f i n a l d e c i s i o n o n t h e r e q u e s t s w i l l b e i s s u e d by t h e I P U C o n o r b e f o r e N o v . I . A c o p y o f t h e s e re q u e s t s a r e a v a i l a b l e f o r r e v i e w i n A v i s t a s l o c a l o f f i c e s an d a t t h e o f f i c e o f t h e I P U C , Wa y s to sa v e on yo u r e n e r g y bi l l Ta k e t i m e t o c h e c k t o e n s u r e t h a t y o u r h o m e i s p r o p e r l y se a l e d a n d i n s u l a t e d , C h e c k t h e c a u l k i n g a r o u n d y o u r wi n d o w s a n d d o o r f r a m e s , A l s o c h e c k t h e i n s u l a t i o n i n yo u r a t t i c . A w e l l - in s u l a t e d r e s i d e n c e w i l l k e e p t h e h e a t fr o m e s c a p i n g a n d c a n s a v e i n h e a t i n g c o s t s , A v i s t a h a s pa r t i a l r e b a t e p r o g r a m s f o r t h e c o s t o f a d d i t i o n a l in s u l a t i o n a n d o t h e r w e a t h e r i z a t i o n m e a s u r e s . If y o u a r e n o t a l r e a d y o n C o m f o r t L e v e l B i l l i n g , c o n s i d e r ap p l y i n g f o r t h i s s e r v i c e , C o m f o r t L e v e l B i l l i n g a v e r a g e s yo u r a n n u a l b i l l i n t o e q u a l m o n t h l y p a y m e n t s . Fo r i n f o n n a t i o n o n c o n s e r v a t i o n t i p s a n d r e b a t e s , e n e r g y as s i s t a n c e p r o g r a m s , a n d b i l l p a y m e n t p l a n s , v i s i t o u r We b s i t e a t w w w , av i s t a u t i l i t i e s , co m o r c a l l u s a t 1 - 80 0 - 22 7 - 91 8 7 . me a s u r e s a n d u s e l e s s n a t u r a l g a s a s a r e s u l t . W i t h t h e in c r e a s e i n t h e c o s t o f n a t u r a l g a s o v e r t h e p a s t s e v e r a l ye a r s , t h e r e h a s b e e n a s u b s t a n t i a l i n c r e a s e i n t h e in s t a l l a t i o n o f c o n s e r v a t i o n m e a s u r e s a n d t h e n e e d f o r ad d i t i o n a l f u n d i n g t o s u p p o r t t h e s e p r o g r a m s . If t h e p r o p o s e d i n c r e a s e s a r e a p p r o v e d b y t h e I P U C , a re s i d e n t i a l o r s m a l l c o m m e r c i a l c u s t o m e r u s i n g a n av e r a g e o f 6 5 t h e n n s p e r m o n t h c a n e x p e c t t o s e e a n av e r a g e i n c r e a s e o f $ 3 . 4 8 p e r m o n t h , o r a b o u t 4 . pe r c e n t . T h e b i l l f o r 6 5 t h e n n s w o u l d i n c r e a s e f r o m a pr e s e n t a m o u n t o f $8 0 . 4 3 to $ 8 3 . 91 . L a r g e r c o m m e r c i a l an d i n d u s t r i a l c u s t o m e r s s e r v e d u n d e r S c h e d u l e s II I an d 1 2 1 c a n e x p e c t t o s e e a n a v e r a g e i n c r e a s e o f 4 . an d 0% re s p e c t i v e l y . T h e h i g h e r i n c r e a s e p e r c e n t a g e s fo r l a r g e r c o m m e r c i a l a n d i n d u s t r i a l c u s t o m e r s a r e d u e t o lo w e r b a s e r a t e s , Th e s e r e q u e s t s a r e s u b j e c t t o r e v i e w b y t h e p u b l i c a n d th e I P U c . A f i n a l d e c i s i o n o n th e r e q u e s t s w i l l b e i s s u e d by t h e I P U C o n o r b e f o r e N o v , I . A c o p y o f t h e s e re q u e s t s a r e a v a i l a b l e f o r r e v i e w i n A v i s t a ' s l o c a l o f f i c e s an d a t t h e o f f i c e o f t h e I P U C , Wa y s to sa v e on yo u r e n e r g y bi l l Ta k e t i m e t o c h e c k t o e n s u r e t h a t y o u r h o m e i s p r o p e r l y se a l e d a n d i n s u l a t e d . C h e c k t h e c a u l k i n g a r o u n d y o u r wi n d o w s a n d d o o r f r a m e s . A l s o c h e c k t h e i n s u l a t i o n i n yo u r a t t i c . A w e l l - in s u l a t e d r e s i d e n c e w i l l k e e p t h e h e a t fr o m e s c a p i n g a n d c a n s a v e i n h e a t i n g c o s t s . A v i s t a h a s pa r t i a l r e b a t e p r o g r a m s f o r t h e c o s t o f a d d i t i o n a l in s u l a t i o n a n d o t h e r w e a t h e r i z a t i o n m e a s u r e s , If y o u a r e n o t a l r e a d y o n C o m f o r t L e v e l B i l l i n g , c o n s i d e r ap p l y i n g f o r t h i s s e r v i c e , C o m f o r t L e v e l B i l l i n g a v e r a g e s yo u r a n n u a l b i l l i n t o e q u a l m o n t h l y p a y m e n t s , Fo r i n f o n n a t i o n o n c o n s e r v a t i o n t i p s a n d r e b a t e s , e n e r g y as s i s t a n c e p r o g r a m s , a n d b i l l p a y m e n t p l a n s , v i s i t o u r We b s i t e a t w w w . av i s t a u t i l i t i e s , co m o r c a l l u s a t 1 - 80 0 - 22 7 - 91 8 7 . me a s u r e s a n d u s e l e s s n a t u r a l g a s a s a r e s u l t . W i t h t h e in c r e a s e i n t h e c o s t o f n a t u r a l g a s o v e r t h e p a s t s e v e r a l ye a r s , t h e r e h a s b e e n a s u b s t a n t i a l i n c r e a s e i n t h e in s t a l l a t i o n o f c o n s e r v a t i o n m e a s u r e s a n d t h e n e e d f o r ad d i t i o n a l f u n d i n g t o s u p p o r t t h e s e p r o g r a m s . If t h e p r o p o s e d i n c r e a s e s a r e a p p r o v e d b y t h e I P U C , a re s i d e n t i a l o r s m a l l c o m m e r c i a l c u s t o m e r u s i n g a n av e r a g e o f 6 5 t h e n n s p e r m o n t h c a n e x p e c t t o s e e a n av e r a g e i n c r e a s e o f $ 3 . 4 8 p e r m o n t h , o r a b o u t 4 . 3 pe r c e n t . T h e b i l l f o r 6 5 t h e n n s w o u l d i n c r e a s e f r o m a pr e s e n t a m o u n t o f $ 8 0 . 4 3 t o $ 8 3 , 91 . L a r g e r c o m m e r c i a l an d i n d u s t r i a l c u s t o m e r s s e r v e d u n d e r S c h e d u l e s II I an d 1 2 1 c a n e x p e c t t o s e e a n a v e r a g e i n c r e a s e o f 4 , an d 0% re s p e c t i v e l y , T h e h i g h e r i n c r e a s e p e r c e n t a g e s fo r l a r g e r c o m m e r c i a l a n d i n d u s t r i a l c u s t o m e r s a r e d u e t o lo w e r b a s e r a t e s . Th e s e r e q u e s t s a r e s u b j e c t t o r e v i e w b y t h e p u b l i c a n d th e I P U c . A f i n a l d e c i s i o n o n th e r e q u e s t s w i l l b e i s s u e d by t h e I P U C o n o r b e f o r e N o v , I . A c o p y o f t h e s e re q u e s t s a r e a v a i l a b l e f o r r e v i e w i n A v i s t a s l o c a l o f f i c e s an d a t t h e o f f i c e o f t h e I P U C , Wa y s to sa v e on yo u r e n e r g y bi l l Ta k e t i m e t o c h e c k t o e n s u r e t h a t y o u r h o m e i s p r o p e r l y se a l e d a n d i n s u l a t e d , C h e c k t h e c a u l k i n g a r o u n d y o u r wi n d o w s a n d d o o r f r a m e s , A l s o c h e c k t h e i n s u l a t i o n i n yo u r a t t i c . A w e l l - in s u l a t e d r e s i d e n c e w i l l k e e p t h e h e a t fr o m e s c a p i n g a n d c a n s a v e i n h e a t i n g c o s t s , A v i s t a h a s pa r t i a l r e b a t e p r o g r a m s f o r t h e c o s t o f a d d i t i o n a l in s u l a t i o n a n d o t h e r w e a t h e r i z a t i o n m e a s u r e s , If y o u a r e n o t a l r e a d y o n C o m f o r t L e v e l B i l l i n g , c o n s i d e l ap p l y i n g f o r t h i s s e r v i c e , C o m f o r t L e v e l B i l l i n g a v e r a g e s yo u r a n n u a l b i l l i n t o e q u a l m o n t h l y p a y m e n t s , Fo r i n f o n n a t i o n o n c o n s e r v a t i o n t i p s a n d r e b a t e s , e n e r g y as s i s t a n c e p r o g r a m s , a n d b i l l p a y m e n t p l a n s , v i s i t o u r We b s i t e a t w w w . av i s t a u t i l i t i e s , co m o r c a l l u s a t 1 - 80 0 - 22 7 - 91 8 7 . ~~' 'V'STAe Contact: Media: Catherine Markson (509) 495-2916 catherine,markson~avistaCQm,com Investors: Jason Lang (509) 495-2930 iason.1ang~avi~tacorp com Avista 24/7 Media Access (509) 495-4174 Avista Requests Natural Gas and Electric Price Adjustments in Idaho SPOKANE, Wash. - Sept. 2006 1:30 m. PDT: Avista (NYSE:A V A) today filed two requests with the Idaho Public Utilities Commission (IPUC) to increase natural gas rates and two requests to adjust electric rates. A vista requested a Nov. 1 , 2006, effective date for all rate changes. In its natural gas filings, A vista requested an annual purchased gas cost adjustment (PGA) increase of 3.2 percent, or $2.7 million in annual revenues. Also filed was a request to increase the rate charged to fund natural gas conservation programs, resulting in an average increase of 1.4 percent and generating an additional $1.1 million per year to fund these important programs. Avista Utilities would make no additional profits from either of these requested rate changes, PGAs are filed each year to reflect changes in the cost of natural gas purchased by the company to serve its customers. Avista s requested PGA reflects a continued increase in the wholesale price of natural gas during the past year. While the price of natural gas has fallen from the post-hurricane levels during late-2005, the average cost of gas for this next year is higher than the average cost of gas during the past year. As a gas distribution company, A vista passes through directly, without markup, changes in natural gas commodity prices to consumers. The second requested natural gas rate adjustment is to provide additional funding for Avista conservation programs to serve increasing customer participation. The program, in place since 2001 , provides for partial financial reimbursement to customers who install certain conservation measures and use less natural gas as a result. To date, the program has saved 4. million annual therms of natural gas, that's enough natural gas to supply 5 300 homes for a year. If both requests are approved by the IPUC, a residential or small commercial natural gas customer using an average of 65 therms per month can expect to see an average increase of $3.48 per month, or about 4.3 percent, for a total monthly bill of $83 .91. Larger commercial and industrial customers can expect to see an average increase of 4.7 percent and 5.0 percent respectively. The higher increase percentages for larger commercial and industrial customers are due to lower base rates. In its electric filings, Avista has requested the IPUC to increase the credit used to pass through benefits from the Bonneville Power Administration (BP A) Residential Exchange Program. The BPA program provides residential and small farm customers in the Northwest a share of the benefits associated with federal hydroelectric projects. The result to customers is a proposed 75 percent decrease in electric rates or a monthly reduction of$0.47 for a residential customer using 1 000 kilowatt-hours. Avista has also filed a request to sunset the 1.45 percent or $0.91 per month credit that residential customers have been receiving from the company s May 2000 sale of the Centralia Power Plant located near Centralia, Wash. The customer portion of the gain is expected to be fully refunded to customers by Nov. 1 2006. The total benefit to customers over the last six years has been $15.1 million. Ifboth electric requests are approved by the IPUC, a residential electric customer in Idaho using 1 000 kilowatt-hours per month can expect to see a $0.44 or 0.70 percent increase per month for a total monthly bill of$63.35. A vista continues to offer a number of programs to assist both our electric and natural gas customers in managing their energy bills " said Scott Morris, A vista Corp president and chief operating officer and president of A vista Utilities. "I encourage our customers to visit www.avistautilities.com or call us at (800) 227-9187 for information on Avista energy assistance programs, conservation tips and bill payment plans. 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. A vista s non-regulated subsidiaries include A vista Advantage and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol A VA." For more information about Avista, please visit www.avistacoro.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 and costs for electricity and natural gas. Such statements are subject to a variety of risks, uncertainties and other factors, most of which are beyond the company 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. -- 0652 -- To unsubscribe from Avista s news release distribution, send reply message to deb bi e, simock(ZV,a vistacofP. com Avista Utilities State of Idaho Proposed DSM Rate Increase - Schedule 191 Effective November 1, 2006 101 111/112 121/122 131/132 Total Base Revenue(1)$ 63 862,495 $ 15,743,530 $ 2 173 868 $ 455 580 $ 82 235,473 Base Therm Sales( 1)162 813 15,081 111 187 213 523 543 954 680 DSM Revenue ~ 1.75%117 594 275 512 043 973 1,439,121 Proposed Rate/Therm 02063 01827 01739 $ 0,01523 Less: Pres, Rate/Therm(3)00426 00373 00354 $ 0,00294 Increase Rate/Therm 01637 01454 01385 $ 0,01229 Recovery of Projected 006 Deficiency Balance - Years(2) 539 296 268 6,433 142 853 1.41%39% Present DSM Revenue 230 734 560253 743 Increase in Revenue 886 860 219,259 300 Incr. as a % of Base Rev,39%39%39% (1) 2005 normalized bill determinants and revenue excluding temporary adjustments (Sch, 155 & 191) (2) Annual revenue would cover est. annual expenditures of $702 020 & contribute to est. deficiency balance of $1 0 229,895