20180827Press Release and Customer Notice.pdf

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Case No. AVU-G- l8-0 +
EXHIBIT "E"
Copy of Press Release and Customer Notice
August 24,2018
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Contact: DRAFT
Media: Casey Fielder (509) 495-491 6 [e-mail]
lnvestors: Lauren Pendergraft [phone] [e-mail]
Avista 2417 Media Access [phone]
Avista Requests Natural Gas Price Decrease for ldaho Gustomers in
Annual Natural Gas Cost Adjustment Filing
Change in natural gas prices would be effective Nov. 1 , 2018
SPOKANE, Wash. - Aug. 27, 2018, 1:05 p.m. PST: Avista (NYSE: AVA) today filed its
Purchased Gas Cost Adjustment (PGA) request with the ldaho Public Utilities Commission
(IPUC or Commission) that, if approved, is designed to decrease overall natural gas revenues
by approximately $0.6 million or 1.0 percent effective Nov. 1 ,2018.
This annualfiling has no impact on the company's earnings, and is not related to the proposed
acquisition of Avista by Hydro One.
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.
While Avista typically files PGAs in August of each year, Avista filed an out-of-cycle PGA in
December 2017 which reduced natural gas rates by 7 .4 percent effective Jan. 26, 2018. The
primary drivers for that rate reduction included 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. Those costs have remained generally the same since
the prior rate reduction, which is why the proposed reduction in this PGA is relatively small.
About 40 percent of an Avista natural gas customer's bill 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.
Customer Bills
lf the request is approved, Avista residential customers using an average of 63 therms per
month could expect their monthly bill to decrease from $48.31 to $47.97, beginning Nov. 1,
2018, a decrease of $0.34 or 0.7 percent.
The net effect of the requested natural gas rate changes by rate schedule are:
General Service - Schedule 101 -0.7o/o
Large General Service - Schedules 111 & 112
lnterruptible Service - Schedules 131 & 132
Transportation Service - Schedule 146
Overall
-1.9o/o
0.0%
-1.90/o
-1.0%
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 (unrvw.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.ouc.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 unryw.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 383,000 customers and natural gas to 349,000 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.avistacoro.com.
This news release contains forward-looking statements regarding the company's current
expectations. Foruvard-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 ,2017 and the Quarterly Report on Form 10-Q for the
quarter ended June 30, 2018"
SOURCE: Avista Corporation
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To unsubscribe from Avista's news release distribution, send a reply message to
lena.funston@avistacorp. com
Aiivtsra
Important Notice for Idaho Natural Gas Customers
(September/October 201 8)
Proposed Natural Gas Rate Adjustment to be Effective Nov. 1,2018
Avista has filed an annual natural gas rate request with the ldaho Public Utilities Commission
(Commission), with a requested effective date of Nov. 1,2018. This annual filing 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 $0.6 million or 1.0 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 63 therms per
month would see their monthly bills decrease from $48.3 I to 547 .97, a decrease of $0.34 per month, or
approximately 0.7 percent. The proposed natural gas rate change would be effective Nov. l,2018. The
requested natural gas rate changes by rate schedule are:
Ceneral Service - Firm - Schedule l0l - Residential & Small Commercial
Large General Service - Firm - Schedules I I I & I l2 - Commercial
Transportation Service - Schedule 101
Overall
-0.7%
-1.9%
-1.9%
-1.0%
Customer Bills Resulting from all Annual Natural Gas Adjustments - In addition to the filing discussed
above, the Company previously made its annual Fixed Cost Adj ustment (FCA) filing on June 29,20 I 8 with
the same proposed effective date of Nov. 1,2018. If the FCA and PGA filings are approved, residential
natural gas customers in Idaho using an average of 63 therms per month would see their monthly bills
decrease from $48.3 I to $45.93, a decrease of $2.3 8 per month, or approxim ately 4.9 percent.
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.htrn) 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.