20200630Press Release and Customer Notice.pdf

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AVISTA UTILITIES *,,,',1'fti['*,Hffiffiffi;t
Case No. AVU-G-20-0L
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Copy of Press Release and Customer Notice
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Contact:
Med ia : Celena Mock [phone] celena. [e-mail]
I nvestors: John W ilcox (509) 495-417 1 io h n.wilcox@avistacoro. com
Avista 2417 Media Access [phone]
Avista Makes Annual Price Adjustment Filings in ldaho
Overall reductions in electric and naturalgas prices would take effect in the fall
SPOKANE, Wash. - June 30,2020,1:05 p.m. PDT: Avista (NYSE: AVA) has made annual
rate adjustment filings with the ldaho Public Utilities Commission (IPUC or Commission) that if
approved, are designed to decrease overall electric revenues by approximately $3.0 million or
1.2o/o eftective Oct. 1, 2O2O and decrease overall natural gas revenue by approximately $700
thousand or 1.1o/o effective Nov. 1 ,2020. These annual filings have no impact on Avista's
earnings.
Natural Gas Adjustment Filings
The first natural gas adjustment is Avista's annual natural gas Fixed Cost Adjustment (FCA). lf
approved, Avista's request is designed to decrease overall naturalgas revenue by
approximately $t.t million or 1.8o/o effective Nov. 1 , 2020.
The second adjustment is the annual Purchased Gas Cost Adjustment (PGA) filing. lf approved,
Avista's request is designed to increase natural gas revenues by $400 thousand or 0.7 o/o.
When combined, the two_requests are designed to decrease overall natural gas revenue by
approximately $700 thousand or 1.1o/o effective Nov. 1 ,2020.
Electric Adjustment Filing
The electric adjustment request is the annual electric FCA. lf approved, Avista's request is
designed to decrease overall electric revenues by approximately $3.0 million or 1.2o/o effective
Oct. 1,2020
Customer Bills Resulting from these Filings
lf the electric FCA filing is approved, residential electric customers in ldaho using an average of
898 kilowatt hours per month would see their monthly bills g!ryfrom $85.30 to $84.13, a
decrease of $1.17 per month, or approximately 1 .4o/o.The proposed electric rate change would
be effective Oct. 1 ,2020.
The requested electric rate changes by rate schedule are as follows:
ResidentialService - Schedule '1
General Service - Schedules 11 & 12
Large General Service - Schedules 21 &22
-1.4o/o
-1.4o/o
-1.7o/o
Extra Large General Service - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 31 & 32
Street & Area Lights - Schedules 41-49
Overall
GeneralService - Schedule 101
Large General Service - Schedules 111 & 112
lnterruptible Service - Schedules 131 & 132
Transportation Service - Schedule 146
Overall
0.0%
0.0%
-1.5o/o
0.0%
-1.2o/o
lf the natural gas 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 g!ry from $50.98 to
$50.18, a decrease of $0.80 per month, or approximately 1.6%. The proposed natural gas rate
changes would be effective Nov. 1 ,2020.
The net effect, on a revenue basis, for the requested natural gas rate changes by rate schedule
are:
-1.60/o
0.7Yo
0.0%
0.07o
-1.1o/o
About the Fixed Cost Adjustment (FCA) Filing
The electric and naturalgas 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 other
factors. Generally, under the FCA Avista's revenues are adjusted each month based on the
number of customers. The annual difference between revenues based on sales and the number
of customers is surcharged or rebated to customers beginning in the following year.
The proposed FCA rate adjustments in 2020 are driven primarily by a higher level of customer
usage in 2019 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.
About the Natura! Gas Purchased Gas Gost Adiustment (PGA) Filing
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 naturalgas
commodity cost as well as the cost to transport natural gas on interstate pipelines to Avista's
local distribution system. The modest increase in 2O2O is primarily due to wholesale natural gas
costs that are slightly higher than the level presently included in rates.
About 30% 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 70% covers
the cost of delivering the natural gas .. the equipment and people needed to provide safe and
reliable service.
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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.iOahg.g). 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 www.mvavista.com/rates.
lf you would like to submit comments on the proposed increase, you can do so by going to the
Commission website or mailing comments to:
ldaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
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 395,000 customers and naturalgas to 362,000 customers. lts
service tenitory covers 30,000 square miles in eastem 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. 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 contro!, 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 , 2019 and the Quarterly Report on Form 10-Q for the
quarter ended March 31,2020.
SOURCE: Avista Corporation
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Important Notice for Idaho Customers DRAFT
(Juty 2020)
Avista has filed two annual rate adjustment requests with the Idaho Public Utilities Commission
(Commission), that if approved, are designed to decrease overall electric revenues by approximately $3.0
million or 1.2%o effective Oct. l, 2020 and decrease overall natural gas revenue by approximately $700
thousand or l.l%o effective Nov. l, 2020. These annual filings have no impact on Avista's earnings.
The first adjustment is Avista's annual Fixed Cost Adjustment (FCA). The electric and natural gas FCA
is a mechanism desigred to break the link between a utility's revenues and customers' enerry 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, snergy conservation or other factors. Generally, under the FCA Avista's revenues are adjusted
each month based on the number of customers. The annual 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. Ifapproved, Avista's request is designed to decrease overall electric revenues by
approximately $3.0 million or l.2o/o effective Oct. 1, 2020 and decrease overall natural gas revenue by
approximately $1.2 million or l.8Yo effective Nov. l, 2020.
The proposed FCA rate adjustments are driven primarily by a higher level of customer usage in 2019 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 Intemrptible and
Transportation Service Schedules.
The second adjusunent is related to the annual Purchased Gas Cost Adjustment (PGA) filing. 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. The modest increase is
primarily due to wholesale natural gas costs that are slightly higher than the level presently included in
rates. Ifapproved, Avista's request is designed to increase natural gas revenues by $400 thousand or 0.7
percent.
Customer Bills
Electic
If the electric FCA filing is approved, residential electric customers in Idaho using an a:uerage of 898
kilowatt hours per month would see their monthly bills decrease from $85.30 to $84.13, a decrease of
$1.17 per month, or approximately l.4Yo. The proposed electric rate change would be effective Oct. l,
2020.
The requested electric rate changes by rate schedule are as follows:
Residential Service - Schedule 1
General Service - Schedules 11 & 12
Large General Service - Schedules 21 & 22
Extra Large GeneralService - Schedule 25
Extra Large General Service - Schedule 25P
Pumping Service - Schedules 31 &32
Street & Area Lights - Schedules 41-49
Overall
-1.4o/o
-1.40/o
-1.7o/o
0.0%
0.0%
-1.5o/o
0.0%
-1.2%
Natural Gas
If the natural gas 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 decrease from $50.98 to $50.18, a decrease
of $0.80 per month, or approximately l.60/o. The proposed natural gas rate changes would be effective
Nov. 1,2020.
The net effect, on a revenue basis, for the requested natural gas rate changes by rate schedule are:
General Service - Schedule l0l
Large General Service - Schedules lll & ll2
Intemrptible Service - Schedules l3l & 132
Transportation Service - Schedule 146
Overall
-r.6%
0.7%
0.0%
0.0%
-t.t%
The Company's applications axe 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.sov). 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.eov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the case. Copies
of rate frlings are also available on our website, www.myavista.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
Avista offers a number of programs and services to help customers manage their energy use and costs.
Visit www.myavista.com for information on these programs which include Comfort Level Billing, bill
payment options, automated payment service, assistance programs, conservation tips, and energy
efficiency rebates.
AVA365'