20141031press release.pdf

AVU-G-14-04, Order No. 33160
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Avista customers getting gas rate decrease

Boise (Oct. 31, 2014) – Natural gas rates for customers of Avista Utilities decrease by 2.1
percent effective Saturday.

The variable portion of electric and gas rates go up or down every year based on the previous
year’s variable costs to serve customers. The annual Purchased Gas Cost Adjustment (PGA)
varies according to changes in wholesale market prices for gas and transportation and storage
expense.

Avista’s decrease in its PGA is a total $1.6 million. The decrease to an average-sized residential
or small-commercial customer will be about $1.16 per month. Rates for large-commercial
customers decrease by about 2.5%, though rates for a large interruptible customer increase by
0.2%.
Avista’s commodity cost for natural gas actually increased during the last year due in part to a
colder-than-normal winter last year. However, that colder weather led to more use of natural
gas by Avista customers, resulting in higher natural gas revenue that offset the higher
commodity cost.
Avista will “hedge” about 35% of its estimated gas requirements for this PGA year, which means
the company buys excess natural gas when market prices are lower and then stores it for use
when market prices are higher.
Company earnings do not increase or decrease with the yearly electric Power Cost Adjustment
(PCA) or the natural gas yearly adjustment. The commission directed Avista to promptly file an
application to amend the PGA should gas prices materially deviate from the amount approved
in this order.
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