20180702Press Release and Customer Notice.pdf

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
AVISTA UTILITIES
CASE NO. AVU-E-IS-G- 03
EXHIBIT D
FCA Press Release and Customer Notice
Natural Gas Service
June 29,2018
Avista has made its annual fixed cost adjustment (FCA) filings with the Idaho
(IPUC or Commission) that if approved, are designed to decrease overall
or2.9 percent effective October 1,2018 and decrease overall natural gas revenues by $2.7 million or4.5
percent effective November 1, 2018.
The rate adjustments are driven primarily by a higher level of customer usage in 201 7 due in part to a
colder than normal winter. The FCA mechanisms do not apply to Avista's Electric Extra Large General
and Street Lighting Service Schedules, nor to its Natural Gas Interruptible and Transportation Service
Schedules.
These annual filings are required, have no impact on the company's earnings and are not related to the
proposed acquisition of Avista by Hydro One.
Avista's electric and natural gas fixed cost adjustment (FCA) is a mechanism designed to break the link
between a utility's revenues and customers' energy usage. Avista's actual revenue, based on kilowatt hour
or 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 revenues are adjusted each month based on the number of customers. The
difference between revenues based on sales and revenues based on the number ofcustomers is surcharged
or rebated to customers beginning in the following year.
Customer Bills
Electric
If approved, residential electric customers in Idaho using an average of 910 kilowatt hours per month would
see their monthly bills decrease from $88.49 to $84.33, a decrease of $4.16 per month, or approximately
4.7 percent. The proposed electric rate changes would be effective Oct. 1, 201 8.
The requested electric rate changes by rate schedule are:
Important Notice for Idaho Customers
(July - August 2018)
Residential Service - Schedule 1
General Service - Schedules ll &,12
Large General Service - Schedules 21 & 22
Extra Large General Service - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 3l & 32
Street & Area Lights - Schedules 41-49
Overall
General Service - Schedule l0l
Large General Service - Schedules lll 8L ll2
RECEIVED
Z0lB JUL -A At{ t0: 0?
-4.7%
- 1.8%
a 10/- L.L /O
0.0%
0.0%
-1.9%
0.0%
-2.9%
-4.2%
-5.6%
Natural gas
If approved, residential natural gas customers in Idaho using an average of 63 therms per month would see
their monthly bills decrease from $48.31 to $46.28, a decrease of $2.03 per month, or approximately 4.2
percent. The proposed natural gas rate changes would be effective Nov. l, 2018.
The requested natural gas rate changes by rate schedule are:
Interruptible Service - Schedules 131 &,132
Transportation - Schedule 146
Overall
0.0%
0.0%
-4.50/o
The Company's applications are proposals, subject to public review and a Commission decision. Copies of
the applications are available for public review at the offices of both the Commission and Avista, and on
the Commission's website (www.puc.idaho.gov). Customers may file with the Commission written
comments related to the Company's filings. Customers may also subscribe to the Commission's RSS feed
(http://www.puc.idaho.gov/rssfeeds/rss.lrtm) to receive periodic updates via e-mail about the case. Copies
of rate filings are also available on our website, www.m-vavista.com/rates.
If you would like to submit comments on the proposed increase, you can do so by going to the Commission
website or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
To assist customers in managing their energy use and energy bills, Avista offers services such as energy
efficiency programs and rebates, comfort level billing, payment affangements and Customer Assistance
Refenal and Evaluation Services (CARES). To learn more, visit www.myavista.com.
Contact:
lD,:ri-lil il.lBLlC
IJT {LITI Ii.$ COMMISSION
Media: Casey Fielder [phone] [e-mail]
!nvestors: Lauren Pendergraft [phone] lauren. penderqraft@avistacorc-eom
Avista 2417 Media Access [phone]
Avista Files Annual Adjustments to Decrease Rates in ldaho
Decrease in electric and natural gas prices would take effect in the fall
SPOKANE, Wash. - July 2,2018,4:05 a.m. PDT: Avista (NYSE: AVA) has made its annual
fixed cost adjustment (FCA) filings with the ldaho Public Utilities Commission (IPUC or
Commission) that if approved, are designed to decrease overall electric revenues by $2.+
million or 2.9 percent effective Oct. 1 , 2018 and decrease overall natural gas revenues by $2.7
million or 4.5 percent effective Nov. 1 ,2018.
The rate adjustments are driven primarily by a higher level of customer usage in 2017 due in
part to a colder than normal winter. The FCA mechanisms do not apply to Avista's Electric
Extra Large General and Street Lighting Service Schedules, nor to its Natural Gas lnterruptible
and Transportation Service Schedules.
These annualfilings are required, have no impact on the company's earnings and are not
related to the proposed acquisition of Avista by Hydro One.
Customer Bills
Electric
lf approved, residential electric customers in ldaho using an average of 910 kilowatt hours per
month would see their monthly bills decrease from $88.49 to $84.33, a decrease of $4.16 per
month, or approximately 4.7 percent. The proposed electric rate changes would be effective
Oct. 1 ,2018.
The requested electric rate changes by rate schedule are:
Residential Service - Schedule 1
General Service - Schedules 11 & 12
Large General Service - Schedules 21 &22
Extra Large General Service - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 31 & 32
Street & Area Lights - Schedules 41-49
Overall
-4.7o/o
-1.8o/o
-2.2o/o
0.0o/o
0.0o/o
-1.9o/o
0.0o/o
-2.9o/o
Naturalgas
lf approved, residential natural gas customers in ldaho using an average of 63 therms per
month would see their monthly bills decrease from $48.31 to $46.28, a decrease of $2.03 per
month, or approximately 4.2 percent. The proposed natural gas rate changes would be effective
Nov. 1,2018.
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
-4.2o/o
-5.60/o
0.00/o
0.00/o
-4.50/o
Electric and Natural Gas Fixed Cost Adjustment
Avista's electric and natural gas fixed cost adjustment (FCA) is a mechanism designed to break
the link between a utility's revenues and customers'energy usage. Avista's actual revenue,
based on kilowatt hour or 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 revenues are adjusted
each month based on the number of customers. 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.
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.oov/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 Gorp.
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 385,000 customers and natural gas to 350,000 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 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 , 2018 and the Quarterly Report on Form 10-Q for the
quarter ended March 31,2018.
SOURCE: Avista Corporation
-18XX-
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