20190823Customer Notice and Press Release.pdf

RECEIVED
?fi19 AUG 23 Pll 2: l+5
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'" ! i'[:I5c0Mt'tlssloilAVISTA UTILITIES
Case No. AVU-G-19-0U
EXHIBIT "F"
Copy of Press Release and Customer Notice
Contact: DRAFT
Media: David Vowels [phone], [e-mail]
I nvestors: John Wilcox (509) 495-417 1, ioh n.wilcox@avistacorp. com
Avista 2417 I'Aedia Access [phone]
Avista Requests Natural Gas Price lncrease for ldaho Gustomers in
Annual Natural Gas Gost Adjustment Filing
Change in natural gas prices would be effective Nov. 1, 2019
SPOKANE, Wash. - Aug. 23, 2019,1:05 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 increase overall natural gas revenues by
approximately $3.3 million or 5.6 percent effective Nov. 1 ,2019.
These annualfilings have no impact on Avista's earnings, and are not related to the general rate
case filed in June 2019.
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. This rate adjustment is driven primarily by higher wholesale natural
gas prices in the 2018-2019 winter season, which were caused, in part, by a Canadian pipeline
disruption that restricted natural gas flows into the Pacific Northwest. lf approved, Avista's
request is designed to increase naturalgas revenues by $3.3 million or 5.6 percent.
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 64 therms per
month would see their monthly bill to increase from $47.62 to $49.88, beginning Nov. 1 ,2019,
an increase of $2.26 or 4.8 percent.
The net effect, on a revenue basis, for the requested natural gas 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
4.8o/o
8.9%
0.0%
2.0o/o
5.60/o
Customer Bills Resulting from all Annual Natural Gas Adjustments - ln addition to the filing
discussed above, the Company previously made its annual Fixed Cost Adjustment (FCA) filing
on June 28,2019 with the same proposed effective date of Nov. 1 ,2019. lf the FCA and PGA
filings are approved, residential natural gas customers in ldaho using an average of 64 therms
per month would see their monthly bills increase from $47.62 to $50.98, an increase of $3.36 per
month, or approximately 7.1 percent.
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://vrnvw.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 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 the operating division that
provides electric service to 389,000 customers and natural gas to 357,000 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 1.7 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 June 30, 2019.
SOURCE: Avista Corporation
-1941-
To unsubscribe from Avista's news release distribution, send a reply message
to lena.funston@avistacorp. com
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DRAFT
Important Notice for Idaho Natural Gas Customers
(September/October 2019)
Proposed Natural Gas Rate Adjustment to be Effective Nov. 1,2019
Avista has filed a natural gas rate request with the Idaho Public Utilities Commission (Commission), with
a requested effective date ofNov. 1,2019. This annual filing is separate from the general rate case request
filed in June 2019 regarding base retail rates in Idaho and has no impact on the company's earnings.
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. This rate adjustment is driven primarily by
higher wholesale natural gas prices in the 201 8-20 I 9 winter season, which were caused, in part, by a
Canadian pipeline disruption that restricted natural gas flows into the Pacific Northwest. If approved,
Avista's request is designed to increase natural gas revenues by $3.3 million or 5.6 percent.
Customer Bills - If approved, residential natural gas customers in ldaho using an average of 64 therms per
month would see their monthly bills increase from 547.62 to $49.88, an increase of $2.26 per month, or
approximately 4.8 percent. The proposed natural gas rate change would be effective Nov. 1,2019. The
requested natural gas rate change by rate schedule are:
General Service - Firm - Schedule l0l - Residential & Small Commercial
Large General Service - Firm - Schedules - Commercial111 & 112
Transportation Service - Schedule 146
Overall
4.8%
8.9%
2.0%
5.6%
Customer Bills Resulting from all Annual Natural Gas Adjustments - In addition to the filing discussed
above, the Company previously made its annual Fixed Cost Adjustment (FCA) filing on June 28, 2019 with
the same proposed effective date of Nov. 1,2019. If the FCA and PGA filings are approved, residential
natural gas customers in Idaho using an average of 64 therms per month would see their monthly bills
increase from $47 .62 to $50.98, an increase of $3.36 per month, or approxim ately 7 .l percent.
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.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.
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