20070918Press release.pdf

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Avista 24/7 Media Access [phone]
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Avista Files for Reduction in Natural Gas Rates for
Customers in Washington and Idaho
SPOKANE, Wash. - Sept. 17 2007: Avista (NYSE:AVA) has filed purchased gas cost adjustments
(PGA) with both the Washington Utilities and Transportation Commission (WUTC) and Idaho Public
Utilities Commission (IPUC) requesting decreases in natural gas rates for residential customers of 6.
percent and 4.6 percent respectively. The annual PGA filings pass through changes in the cost of
natural gas acquired to serve customers and do not affect company profits.
If the filing is approved by the WUTC, a Washington residential customer using an average of 70
therms per month could expect to see a $5.32 decrease for a revised total monthly bill of $83.49
effective Nov. 1. The actual decrease will vary based on customer usage. The requested decrease
reflects a $12.7 million reduction in Washington annual revenues for Avista.
In Idaho, a residential customer using an average of 65 therms per month could expect to see a
$3.65 decrease for a revised total monthly bill of $75.14 effective Nov. 1 , if the filing is approved by
the IPUC. The actual decrease will vary based on customer usage. The requested decrease reflects
a $4 million reduction in Idaho annual revenues for Avista.
Avista serves about 141 000 natural gas customers in Washington and approximately 70,000 gas
customers in Idaho.
While we ve seen an increased level of price stability this past year, overall the wholesale natural gas
market remains volatile " said Kevin Christie , director of gas supply for Avista. "Nationally, increased
natural gas supplies and replenished underground storage capacity combined with no supply
interruptions thus far in the hurricane season are producing lower future prices for the 2007-2008
heating season. This is a welcomed change for all of our customers, but especially for our vulnerable
customers who have been challenged by rapidly increasing natural gas prices.
To provide greater price stability for customers, Avista follows a structured natural gas purchasing
plan that allows for flexibility based on market prices and conditions. Currently, about 70 percent of
estimated customer load requirements are pre-purchased for the upcoming heating season. Also
Avista has increased its underground Jackson Prairie storage capacity from 9 percent to 11 percent
of annual load requirements. This storage capacity allows Avista to purchase lower-cost gas during
the non-winter months and store it for use during the heating season when wholesale gas prices are
typically highest.
About 80 percent of an average residential customer s monthly bill is the cost of natural gas and
pipeline transportation, with the remaining 20 percent made up of Avista s fixed costs to provide
natural gas service over its distribution system.
In a separate decoupling rate adjustment filing with the WUTC, Avista has requested a 0.2 percent, or
$0.19 per month , increase in the company s natural gas rates for residential and small commercial
customers, also effective Nov. 1. The decoupling mechanism allows Avista to recover a portion of its
fixed costs not recovered because of reduced energy usage by customers. The recovery of fixed
costs allows Avista to increase focus on energy efficiency programs and services for customers.
Avista offers a number of energy efficiency programs, incentives and rebates to help customers
proactively manage their natural gas consumption. Information on Avista s energy efficiency offerings
and no-cost conservation information is available at www.avistautilities.com. Through these program
offerings Avista s Washington and Idaho customers have saved over 1 million therms of natural gas
so far in 2007.
Avista Corp. is an energy company involved in the production, transmission and distribution of
energy as well as other energy-related businesses. Avista Utilities is a company operating
division that provides service to 346 000 electric and 306,000 natural gas customers in three
western states. Avista s primary, non-regulated subsidiary is Advantage IQ
www.advantaqeIQ.com). Avista Corp.'s stock is traded under the ticker symbol "AVA" For
more information about Avista, please visit www.avistacorD.com . Avista Corp. and the Avista
Corp. logo are trademarks of Avista Corporation.
This news release contains forward-looking statements regarding the company s current
expectations. Forward-looking statements are all statements other than historical facts. Such
statements speak only as of the date of the news release and are subject to a variety of risks
and uncertainties , many of which are beyond the company s control, which could cause actual
results to differ materially from the expectations. These risks and uncertainties include, in
addition to those discussed herein , all of the factors discussed in the company s Annual Report
on Form 1 O-K for the year ended Dec. 31 , 2006 , and the Quarterly Report on Form 10-0 for the
quarter ended June 30, 2007.
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