20120215Press Release.pdf

~~~'

'STAe
RECEIVED
2012 FEB 15 PH 2: 46 AVU ,(;-1;) -0 I
IDAHO PUBL1'"Contact: UTILITIES COMMIŠSiON
Jessie Wuerst 509-495-8578, Jessie.wuerst~avistacorp.com
Avista 24/7 Media Line 509-495-4174
Avista requests lower natural gas prices for Washington and Idaho
customers
SPOKANE, Wash. Feb. 13, 2012, 1:05 PT: Avista today filed Purchased Gas Cost
Adjustment (PGA) requests with the utility commissions in Washington and Idaho to
reduce overall natural gas prices by 6.4 percent and 6.0 percent respectively, to be
effective March 1.
If the request is approved by the Washington Utilities and Transportation Commission
(WUTC) , a residential customer in Washington using an average of 67 therms per month
would see a decrease of $3.90, or 6.0 percent, for a revised monthly bil of $60.73.
Washington commercial customers could expect decreases of 7.6 percent for large
general service schedule 111, 8.2 percent for extra large general service schedule 121
and 9.5 percent for interruptible sales service schedule 131.
If the request is approved by the Idaho Public Utilities Commission (IPUC), an Idaho
customer using an average of 62 therms per month would see a $3.46, or 5.7 percent,
decrease for a revised monthly bil of $57.50. Idaho commercial customers could expect
decreases of 7.3 percent for large general service schedule 111 and 9.7 percent for
interruptible sales service schedule 131. Avista has approximately 149,000 natural gas
customers in Washington and 76,000 in Idaho.
"We know many of our customers are concerned about expenses in this economy, and
we want to pass these price decreases on to them as quickly as we can," said Dennis
Vermillon, president of Avista Utilities. "The increase in natural gas supply, along with
continuing soft demand, is creating the current environment of fallng natural gas prices."
PGA filings are usually made annually in the fall to pass through changes in the cost of
natural gas Avista acquires to serve customers. The direct cost of natural gas makes up
about 65 percent of an Avista customer's bil, and this cost can fluctuate up and down
based on market prices. Given the decline in wholesale natural gas prices, Avista is
proposing to decrease the natural gas rates our customers pay to better reflect current
market prices for natural gas. The remaining 35 percent of a customer's bil covers the
cost of delivering the natural gas to customers - the equipment and people needed to
provide safe and reliable delivery of service. These costs are changed with state
approval of a general rate case request.
Avista does not mark up the cost of natural gas that is purchased to meet customer
needs. These changes in natural gas costs and the PGA rate adjustments do not
increase or decrease Avista's earnings.
If approved by the WUTC, overall revenues from Washington customers would decrease
by $9.9 millon, and if approved by the IPUC, overall revenues from Idaho customers
would decrease by $4.1 milion.
Avista's rate applications are proposals, subject to public review and a decision by the
WUTC and the IPUC. Copies of the applications are available for public review at the
offices of the WUTC and the IPUC, as well as at Avista, and they are available on the
WUTC's website at utc.wa.gov and the IPUC's website at puc.idaho.gov. The
commissions wil begin a review of Avista's applications and will seek public input on the
company's request.
About Avista Utilties
Avista Utilities is involved in the production, transmission and distribution of energy. We
provide energy services and electricity to 358,000 customers and natural gas to 317,000
customers in a service territory that covers 30,000 square miles in eastern Washington,
northern Idaho and parts of southern and eastern Oregon, with a population of 1.5
millon. Avista Utilities is an operating division of Avista Corp. (NYSE: AVA). For more
information, please visit ww.avistautilities.com. .
The Avista logo is a trademark 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, 2010, and the Quarterly Report on Form 10-Q for the quarter ended Sept. 30,
2011.
-1206-
To unsubscribe from Avista's news release distribution, send reply message to
shirley. wolfCâavistacorp.com