20170926press release.pdf

Case No. AVU-G-17-04
Contact: Matt Evans
[phone] office
[phone] cell
www.puc.idaho.gov

Avista proposes change to billing mechanism

BOISE (Sept. 26, 2017) – Avista is seeking approval of an annual rate adjustment that would
decrease the monthly bill for the average residential customer by $1.23.
The Purchased Gas Cost Adjustment (PGA) is modified each fall to account for variability in the
cost of natural gas, as well as its delivery and storage.
In years in which the price of natural gas is lower than the price included in rates, the PGA is
lowered. When market prices exceed the amount collected through rates, the PGA is increased.
The proposal before the Idaho Public Utilities Commission would decrease the PGA by 2.4
percent for residential and small commercial customers, refunding to customers approximately
$1.7 million overall.
Avista provides natural gas service to approximately 82,000 Idahoans.
A year ago, the Commission approved a PGA adjustment that lowered customers’ rates by
almost 8 percent, leading to a $6.1 million decrease in revenue.
The primary drivers for the proposed decrease this year, the company said, were the low cost
of natural gas and a decline in transportation costs.
The proposal is separate from the company’s request to raise its base rate for gas service over
the next two years and is unrelated to the proposed sale of the company to Hydro One. It also
would not impact company earnings.
The Commission is accepting comments on the proposal through Oct. 20. The company has
requested that the change take effect Nov. 1.
To comment, go to the Commission’s web site, www.puc.idaho.gov, click on “Open Cases”
under the “Natural Gas” heading and scroll down to Case No. AVU-G-17-04. Comments can also
be mailed to PO Box 83720, Boise, ID 83720-0074, or faxed to [phone].