20080915Revised Customer Notice.pdf

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IDAHO PUBLIC
UTILITIES COMMISSION
A VISTA UTILITIES
Exhibit "B - 1"
Notice of Revised Request
of Applicant's Proposed Tariff Change
Published in the major
North Idaho daily newspapers
September 12, 2008
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Important Notice for Avista's
Idaho Natural Gas Customers
Avista reduces its request to increase
natural gas rates to 4.0% from 14.2%
On Sept. 15,2008, Avista filed a revised purchased gas adjustment (PGA) with the Idaho
Public Utilities Commission (IPUC) to be effective Oct. 1,2008. The request reflects an
average increase in natural gas rates of 4.0%, as compared to the original request of 14.2%
filed Aug. 18,2008. The lower request reflecs a significant decrease in natural gas prices
since the original filing. The PGA is filed each year to recover changes in the cost of natural
gas purchased by Avista to serve customers. PGA changes do not impact company earnings.
Avista is able to reduce its Idaho PGA request because of falling natural gas prices in the
market as it acquires natural gas to serve its customers
during the upcoming heating season. Avista follows a
structured natural gas purchasing plan that allows for
flexibility based on market prices and conditions. Currently,
about two-thirds of estimated customer demand for the
upcoming year is either pre-purchased or placed in storage.
Storage is a valuable asset that allows Avista to purchase
lower-cost gas during the spring and summer months and
store it for use during the heating season when wholesale
gas prices are typically highest. Although prices for natural
gas have decreased recently, prices during this past spring
were at record levels, and the average price has been
higher thus far in 2008 compared to 2007.
If the proposed increase is approved by the IPUC, a
residential or small commercial customer using an average
of 65 therms per month can expect to see an average
increase of $2.96 per month, or about 3.9%. The bill for
65 therms would increase from a present amount of
$75.14 to $78.10. Larger commercial and industrial
customers can expect to see an average increase of 4.4%.
This request is subject to review by the IPUC. A final decision on the request is expected by
the IPUC on or before Oct. 1. You can submit comments to the IPUC in writing at Idaho Public
Utilities Commission, P.O. Box 83720, Boise, 10 83720-0074, or through the I PUC's website
at ww.puc.idaho.gov.
For more information, visit our website at wwavistautilties.com or call us at 7-800-227-9787.
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