20100915Press Release, Customer Notice.pdf

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A VISTA UTILITIES
Case No. A VU-G-IO-03
EXHIBIT "E"
Copy of Press Release and Customer N otÌce
September 14,2010
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Contact:
Media: Debbie Simock [phone], debbie.simocktâavistacorp.com
Investors: Jason Lang [phone], jason.langtâavistacorp.com
Avista 24/7 Media Access [phone]
Natural Gas Prices for Avista's Washington and Idaho Customers
Could Increase with Annual Purchased Gas Cost Adjustment
Reduced benefits from SPA program causing electric increase of about $2 a month for
residential and small farm customers in Washington and Idaho
SPOKANE, Wash. - Sept. 15,2010,1:05 p.m. PDT: Natural gas prices for Avista's (NYSE:AVA)
Washington and Idaho customers, which decreased by about 30 percent in 2009, could increase by
an overall 4.6 percent in Washington and 4.3 percent in Idaho if the utility commissions in both states
approve the company's annual Purchased Gas Cost Adjustment (PGA) tariffs that were filed today.
PGAs are filed each year to true-up the cost of wholesale natural gas purchased by Avista to serve
customers with the amount included in rates.
The requested increases are due to the reduction in the refund currently being provided to customers
related to wholesale natural gas costs in Avista's 2009 PGAs. Abundant supplies of natural gas
combined with softening demand have kept wholesale natural gas prices at lower levels over the past
year, which have helped to partially offset the effects of the reduction in the 2009 refund. If approved,
natural gas rates for Avista's customers in both Washington and Idaho would be at similar levels to
those in 2004.
If approved by the respective state utiity commissions, new rates would become effective Nov. 1,
2010, and annual natural gas revenues would increase by approximately $3.6 millon in Washington
and by $1.7 milion in Idaho. Avista does not mark up the cost of natural gas purchased to meet
customer needs, so there is no impact on company earnings. Avista serves over 146,000 natural gas
customers in Washington and 74,000 in Idaho.
If the PGA request is approved by the Washington Utilities and Transportation Commission (WUTC),
a residential customer using an average 69 therms a month could expect their bill to increase by
$2.97, or 5.0 percent, for a revised monthly bil of $63.00. Commercial customers could expect
increases of 5.7 percent for general service schedule 111 and 4.8 percent for large general service
schedule 21, and 3.6 percent for interruptible sales service schedule 131.
An Idaho residential customer using an average 63 therms a month could expect their bil to increase
by $2.75, or 4.9 percent, for a revised monthly bill of $58.78, if the PGA tariff is approved by the Idaho
Public Utilities Commission (IPUC). Commercial customers could expect increases 6.1 percent for
large general service schedule 111 and 0.9 percent for interruptible sales service schedule 131.
Even though wholesale natural gas prices have been lower for the past two years, market prices
continue to fluctuate. To help provide greater price stability for customers and to allow for
flexibilty based on changing market conditions, Avista follows a diversified natural gas
purchasing plan which includes underground storage and forward and daily purchases.
The direct cost of wholesale natural gas makes up about 65 percent of an Avista customer's bil, and
these costs fluctuate up and down based on market prices. The remaining 35 percent covers the cost
of delivering the natural gas - the equipment and people needed to provide safe and reliable delivery
of service.
Residential Exchange Credit
A reduction in the benefits Avista customers receive under the Bonnevile Power Administration's
(BPA) Residential Exchange Program has resulted in additional filngs today to increase rates for
residential and small farm customers in both states by less than 2 percent.
The Residential Exchange Program provides a share of the benefits of the federal Columbia River
power system to the customer of the six investor-owned utilities in the Pacific Northwest. Avista
applies the benefits it receives, which usually fluctuate annually, to customers as a credit on their
monthly electric bilL.
If the requests are approved by the respective utilty commissions, residential and small-farm
customers in both states using an average of 1,000 kilowatt-hours a month would see a $1.42
increase - 1.97 percent in Washington and 1.65 percent in Idaho - in their monthly electric bil,
effective Nov. 1. Revenues would increase in Washington by approximately $3.6 millon and by $1.7
milion in Idaho because of the reduced benefits Avista is receiving under the Residential Exchange
Program; however, there is no impact on Avista's earnings.
To help customers proactively manage their energy use, Avista offers a number of energy efficiency
programs, including rebates and incentives. Visit ww.everylittlebit.com for information on the
programs which helped customers save enough energy in 2009 to power over 6,800 Inland
Northwest homes for a year and to serve over 3,000 homes with natural gas for a year.
Information on energy assistance programs and payment options offered by Avista to help qualifying
customers is available at ww.avistautiities.com.
Avista's PGA and Residential Exchange filngs are requests, subject to public review and a decision
by the respective state utility commission. A copy of each request is available for public review at the
offices and websites of Avista and the respective utility commission. Customers may submit
comments on the proposed rate changes or review the requests by going to ww.puc.idaho.gov for
Idaho and ww.utc.wa.gov for Washington.
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 our operating division that
provides electric service to 355,000 customers and natural gas to 315,000 customers. Our
service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of
southern and eastern Oregon, with a population of 1.5 milion. Avista's primary, non-regulated
subsidiary is Advantage ia. Our stock is traded under the ticker symbol "AVA." For more
information about Avista, please visit ww.avistacorp.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 10-K for the year ended Dec. 31,2009, and the auarterly Report on Form 10-a for the
quarter ended June 30, 2010.
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Important Notice for Idaho
Natural Gas Customers
September 2010
On September 14th, Avista filed a purchased gas
adjustment (PGA) with the Idaho Public Utilties
Commission (Commission) to be effective Nov. 1,
2010. The request is for an overall increase of $3.1
millon or 4.3%. The annual PGA filing passes
through changes in the cost of natual gas the
Company acquires to serve customers, and it does not
increase Company earnings.
The proposed net increase above curent biling
rates by service schedule is as follows:
General Service -Schedule 101 - 4.9%
Large General Service -Schedule 111 - 6.1%
Interruptible Service - Schedule 131 - 0.9%
The proposed increase is caused by the
elimination of a present refud used to pass through
gas cost savings from prior years. The wholesale
price for natual gas fluctuates as a result of many
factors, similar to the price for crude oiL. Because of
the unpredictable nature of wholesale prices, Avista
pre-purchases about two-thirds of the gas needed to
meet customer demand for the coming winter. To
help provide greater price stability for customers and
to allow for flexibilty based on market conditions,
A vista follows a diversified gas purchasing plan
which also includes underground storage and daily
purchases.
If the proposed changes are approved by the
Commission, a residential or small commercial
customer using an average of 63 therms per month
can expect to see an increase of $2.75 per month, or
about 4.9 percent. The bil for 63 therms would
increase from a present amount of$56.03 to $58.78.
The Company's application is a proposal, subject
to public review and a Commission decision. A copy
of the application is available for public review at the
offces of both the Commission and the Company as
well as their respective websites. If you would like to
submit comments on this proposed increase, or
review the application, you can do so by going to the
Commission website at ww.puc.idaho.gov.
A vista offers a number of programs and services
to help customers manage their energy use and costs.
Visit us at avistautilities.com for more information.
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