20170901Press Release and Customer Notice.pdf

!daho Public Utilities Commission
Office of the SecretarvRECEIVED
AUG 3 I 2017
Boise, ldaho
AVISTA UTILITIES
Case No. AVU-G-17-0
EXHIBIT "E"
Copy of Press Release and Customer Notice
August 30,2017
Contact: DRAFT
Media: Casey Fielder [phone] [e-mail]
lnvestors: Jason Lang [phone] [e-mail]
Avista 2417 Media Access [phone]
Avista Requests Natural Gas Price Changes for ldaho Customers an
Annual Gost Adjustment Filings
Reguesfs would result in change in naturalgas prices effective Nov. 1, 2017
SPOKANE, Wash. -Aug. 31,2017,1:05 p.m. PST: Avista (NYSE: AVA) has made annual
rate adjustment filings with the ldaho Public Utilities Commission (IPUC or Commission) that if
approved, are designed to increase overall natural gas revenues by $0.2 million or 0.3 percent
effective Nov. 1 ,2017. These annualfilings are separate from the general rate case request
filed in June 2017 regarding base retail rates in ldaho, have no impact on the company's
earnings, and are not related to the proposed acquisition of Avista by Hydro One.
Customer Bills
lf the request is approved, Avista residential customers using an average of 61 therms per
month could expect their bill to increase from $51 .10 by $0.29, or 0.6 percent, for a revised
monthly bill of $51.38, beginning Nov. 1,2017.
The requested naturalgas rate changes by rate schedule are:
General Service - Schedule 101
Large General Service - Schedules 111 & 112
lnterruptible Service - Schedules 131 & 132
Transportation Service - Schedule 146
Overall
o.5%
-0.8o/o
0.0%
0.0%
0.3%
Purchased Gas Cost Adjustment (PGA)
The first rate adjustment is Avista's annual Purchased Gas Cost Adjustment (PGA). The PGA is
filed each year to balance the actual cost of wholesale natural gas purchased by Avista to serve
customers with the amount included in rates. This includes the natural gas commodity cost as
well as the cost to transport naturalgas on interstate pipelines to Avista's local distribution
system. lf approved, Avista's request is designed to decrease natural gas revenues by $1.7
million or 2.7 percent.
The primary drivers for the requested PGA rate reduction include continued low natural gas
commodity costs due to the continued high production levels of natural gas and a reduction in
the cost to transport natural gas to Avista's distribution system.
lEusra
About 40 percent of an Avista naturalgas customer's bill in ldaho is the combined cost of
purchasing natural gas on the wholesale market and transporting it to Avista's system. These
costs fluctuate up and down based on market prices, and are not marked up by Avista. The
remaining 60 percent covers the cost of delivering the natural gas - the equipment and people
needed to provide safe and reliable service.
Natural Gas Fixed Cost Adjustment
The second rate adjustment is related to Avista's natural gas fixed cost adjustment mechanism
(FCA). The FCA mechanism is designed to break the link between a utility's revenues and
customers' energy usage. Avista's actual revenue, based on therm sales, will vary, up or down,
from the level included in a general rate case and approved by the Commission. This could be
caused by changes in weather, energy conservation or the economy. Generally, under the FCA
Avista's natural gas revenues are adjusted each month based on the number of customers,
rather than therm sales. The difference between revenues based on sales and revenues based
on the number of customers is surcharged or rebated to customers beginning in the following
year. For naturalgas operations, the rate adjustment is designed to increase revenues by
approximately $t.8 million, or 3.0 percent. This rate adjustment is driven primarily by a lower
level of customer usage in 2016 due in part to a warmer than normal winter.
Rate Application Procedure
Avista's applications are proposals, subject to public review and a Commission decision. Copies of
the applications are available for public review at the offices of both the Commission and Avista, and
on the Commission's website (www.puc.idaho.qov). Customers may file with the Commission written
comments related to Avista's filings. Customers may also subscribe to the Commission's RSS feed
(http://www.puc.idaho.gov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the case.
Copies of rate filings are also available on Avista's website at www.mvavista.com/rates.
About Avista Corp.
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 378,000 customers and natural gas to 342,000 customers. lts
service territory covers 30,000 square miles in eastern Washington, northern ldaho and parts of
southern and eastern Oregon, with a population of 1.6 million. Alaska Energy and Resources
Company is an Avista subsidiary that provides retail electric service in the city and borough of
Juneau, Alaska, through its subsidiary Alaska Electric Liqht and Power Companv. Avista stock
is traded under the ticker symbol "AVA." For more information about Avista, please visit
www.avistacorp.com.
This news release contains forward-looking statements regarding the company's current
expectations. Forward-looking statements are all statements other than historicalfacts. 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 , 2016 and the Quarterly Report on Form 10-Q for the
quarter ended June 30, 2017.
l'ittsta
SOURCE: Avista Corporation
-17XX-
To unsubscribe from Avista's news release distribution, send a reply message to
lena.funston @avistacorp. com
^l),,itnsta
Important Notice for Idaho Natural Gas Customers
(September/October 2017)
Proposed Natural Gas Rate Adjustment to be Effective Nov. 1,2017
Avista has filed an annual natural gas rate request with the Idaho Public Utilities Commission
(Commission), with a requested effective date of Nov. 1,2017. This annual filing is separate from the
general rate case request filed in Jtne 2017 regarding base retail rates in Idaho, has no impact on the
company's earnings, and is not related to the proposed acquisition of Avista by Hydro One.
The rate request is the annual Purchased Gas Cost Adjustment (PGA). The PGA is filed each year to
balance the actual cost of wholesale natural gas purchased by Avista to serve customers with the amount
included in rates. This includes the natural gas commodity cost as well as the cost to transport natural gas
on interstate pipelines to Avista's local distribution system. If approved, Avista's request is designed to
decrease natural gas revenues by $1.7 million or 2.7 percent The primary drivers for the requested rate
reduction include continued low natural gas commodity costs due to the continued high production levels
of natural gas and a reduction in the cost to transport natural gas to Avista's distribution system.
Customer Bills - If approved, residential natural gas customers in Idaho using an average of 6l therms per
month would see their monthly bills decrease from $51.10 to $49.87, a decrease of $1.23 per month, or
approximately 2.4 percent. The proposed natural gas rate change would be effective Nov. 1, 2017. The
requested natural gas rate changes by rate schedule are:
General Service - Firm - Schedule l0l - Residential & Small Commercial 2.5%
Large General Service - Firm - Schedules - Commercial lll & 112 3.8yo
The Company's application is a proposal, subject to public review and a Commission decision. Copies of
the application are available for public review at the offices of both the Commission and Avista, and on the
Commission's website (www.puc.idaho.gov). Customers may file with the Commission written comments
related to the Company's filings. Customers may also subscribe to the Commission's RSS feed
(http://www.puc.idaho.gov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the case. Copies
of rate filings are also available on our website, www.myavista.com/rates.
If you would like to submit comments on the proposed rate change, you can do so by going to the
Commission website or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
To assist customers in managing their energy use and energy bills, Avista offers services such as energy
efficiency programs and rebates, comfort level billing, payment arrangements and Customer Assistance
Referral and Evaluation Services (CARES). To learn more, visit www.myavista.com.
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