20110817Press Release-Customer Notice.pdf

2011 AUG IS AM 9= 28
A VISTA UTILITIES
Case No. AVU-G-II-04
EXHIBIT "E"
Copy of Press Release and Customer Notice
August 15, 2011
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Contact:
Media: Jessie Wuerst [phone], Jessie.wuerstßùavistacorp.com
Investors: Jason Lang [phone], jason.langßùavistacorp.com
Avista 24/7 Media Access [phone]
Avista Makes Two Annual Price Adjustment Requests in Idaho
Pass-through tariffs could decrease electric prices and slightly increase natural gas prices
SPOKANE, Wash. - Aug. 15, 2011, X:XX p.m. PDT: Avista (NYSE: AVA) customers could receive
a decrease in their electric prices and a slight increase in natural gas prices on Oct. 1 if the Idaho
Public Utilties Commission (IPUC) approves two annual price adjustment requests filed today by the
company - Residential Exchange Credit and Purchase Gas Cost Adjustment.
Electric
Residential and small-farm customers using an average of 956 kilowatt-hours per month could receive
a $1.77, or 2.11 percent, decrease in their monthly electric bil due to an increase in benefis to be
received from the Bonneville Power Administration's (BPA) Residential Exchange Credit program.
The Residential Exchange Credit is paid in its entirety to Avista's approximately 106,000 residential
and small-farm electric customers in Idaho and has no impact on company earnings.
The increase in benefits is the result of a recent settlement agreement signed by BPA that resolves a
long-standing dispute over how the benefits of low-cost hydroelectric power from the federal Columbia
River power system are shared by the region's electric customers. All six investor-owned and nearly
all consumer-owned utiities, representing over 95 percent of the region's electric customers, are
parties to the settlement.
Under the settlement agreement, Avista residential and small-farm customers in Idaho wil receive
approximately $4.4 millon in benefits, up from the current $1.8 million customers are currently
receiving.
Natural Gas
Avista also made its annual Purchase Gas Cost Adjustment (PGA) filng today with the IPUC,
requesting an overall 1.53 percent increase in natural gas prices. The annual filng is a true-up that
balances the cost of wholesale natural gas purchased by Avista to serve customers with the amount
already included in customer rates.
The requested increase is the result of a reduction in the refund still being provided to customers from
Avista's 2009 PGA filng, which decreased customer rates by about 30 percent. Abundant supplies of
natural gas and softening demand for the commodity have continued to keep wholesale natural gas prices
at lower levels over the past year. However, the elimination of a portion of that refund results in a slight net
increase in overall rates. If the requested increase is approved, natural gas rates for Avista's Idaho
customers would remain at levels similar to those in 2004.
If the request is approved by the IPUC, a residential customer using an average 62 therms a month would
see a $0.99, or 1.63 percent, increase in their monthly rate for a revised monthly bill of $61.75. Commercial
customers could expect increases of 2.05 percent for general service schedule 111, and 1.68 percent for
interruptible sales service schedule 131. New rates would become effective Oct. 1, with annual natural gas
revenues increasing by approximately $1.1 milion. 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 74,000
natural gas customers in Idaho.
The direct cost of wholesale natural gas makes up about 65 percent of an Avista customer's bill, 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.
Avista's rate applications are proposals, subject to public review and a decision by the Idaho Public Utilties
Commission. Copies of the applications are available for public review at the offces of both the IPUC and
Avista, as well as the IPUC's homepage at www.puc.idaho.gov. The IPUC wil begin a review of Avista's
applications and wil seek public input on the company's request.
Avista expects to file its annual Purchase Gas Cost Adjustment in September with the Washington Utilties
and Transportation Commission. At the same time, the company plans to request a rate decrease for
residential and small farm electric customers in Washington in the Residential Exchange Program.
To help customers proactively manage their energy use, Avista offers a number of energy effciency
programs, including rebates and incentives. Visit ww.everylittlebit.com for information on the
programs that helped Avista's Idaho and Washington customers save enough energy in 2010 to
power over 5,700 homes for a year and to serve over 2,500 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.avistautilties.com.
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 357,000 customers and natural gas to 317,000 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 IQ.
Our stock is traded under the ticker symbol "AVA." For more information about Avista, please visit
ww.avistacorp.com.
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, 2010
and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2011.
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Important Notice for Idaho
Natural Gas Customers
August - September 2011
On August 15, 2011, Avista filed a purchased
gas adjustment (PGA) with the Idaho Public Utilties
Commission (Commission) to be effective Oct. 1,
2011. The request is for an overall increase of $1.
millon or 1.53%. The annual PGA filing passes
through changes in the cost of natural 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 --chedule 101 - 1.63%
Large General Service --chedule 1 JJ - 2.05%
Interruptible Service - Schedule 131 - 1.68%
The proposed increase is caused by the reduction
of a present refud used to pass through natual gas
cost savings from prior years. The wholesale price
for natural 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 stabilty for customers and to
allow for flexibilty based on market conditions,
Avista 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 62 thenn per month
can expect to see an increase of $0.99 per month, or
about 1.63 percent. The bil for 62 therms would
increase from a present amount of$60.76 to $61.75.
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 avistautilties.com for more information.
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