20210702Press Release and Customer Notice.pdf

AVISTA UTILITIES
Case No. AVU-G-21-0a
EXHIBIT O'C"
Copy of Press Release and Customer Notice
Contact:
Media: Celena Mock [phone] [e-mail]
I nvestors: John \Mlcox (509) 495417 1 i oh n. wi lcox@avistaco rp. com
Avista 2417 Medta Access [phone]
Avista Makes Natural Gas Price Adjustment Filings in ldaho
Overall changes in naturalgas prices would be effective Sep. 1, 2021
SPOKANE, Wash. - July 2,2021, {:05 p.m. PDT: Avista (NYSE: AVA) has made two rate
adjustment filings with the Idaho Public Utilities Commission (IPUC or Commission) that, if
approved and when combined, are designed to increase overall natural gas revenue by
approximately $7.1 million or 10.6% effective Sep. 1,2021. These ftlings have no impact on
Avista's eamings.
These rate adjustment filings are separate and distinct from the Seftlement Stipulation filed on
June 14, 2021 related to the pending general rate case filing, that, if approved, would reduce
custome/s naturalgas bills by an overall 4.5o/o, also on Sep. 1,2021.
Natural Gas Adjustment Filings
The first adjustment is the annual Purchased Gas Cost Adjustment (PGA) filing. lf approved,
Avista's request is designed to increase annual natura! gas revenues by approximately $9.0
million or 13.5o/o effective Sep. 1,2021.
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 increase is primarily driven by two factors: 1) wholesale natural gas costs
that are higher than the level presently included in rates, and 2) the expiration of a rebate
customers are curently receiving from last yea/s PGA. About 30o/o ol an Avista natural gas
customeds bill is the combined cost of purchasing natural gas on the wholesale ma*et 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 70o/o covers the cost of delivering the natural gas -the equipment and people needed to provide safe and reliable service.
The second filing is the Defened Balances Credit filing. lf approved, Avista's request is designed
to decrease natural gas revenues by approximately $1.9 million or 2.9o/o effective Sep. 1 , 2021.
The Deferred Balances Credit filing is comprised of the following items:
Natural Gas Deferred Depreciation Expense balance of $900.000. This is a result of the
Company deferring the benefit of reduced natural gas depreciation expense recorded on
its books of record, but not yet reflected in its natural gas customer rates.
a
Accumulated Funds Used Durino Construction (AFUDC) Defenal balance of $393.000.
AFUDC tax flow-through deferral balances are a result of changing how taxes are
recognized for rate making purposes.
CARES Act Defenal balance of $O48.000. The CARES Deferral balance is a result of
Avista defening the tax benefits associated with the CARES Act, which allowed
companies with taxable net operating losses ('NOL') for years 2018 through 2020 to carry
those losses back to the five previous tax years.
Customer Bills Resulting from these Filings
lf the natural gas PGA and Deferred Balances Credit filings are approved, residential natural gas
customers in ldaho using an average of 63 therms per month would see their monthly bills
increase from $49.49 to $54.05, an increase of $4.56 per month, or approximalely 9.2o/o. The
proposed natural gas rate changes would be effective Sep. 1 ,2021.
The net effect, on an annual revenue basis, for the requested natura! gas rate changes by rate
schedule are:
a
a
General Service - Schedule 101
Large General Service - Schedules 111 & 112
Transportation Service - Schedule 146
Overall
9.2o/o
16.3o/o
-2.9o/o
'10.60/o
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.oov). 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.
lf 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:
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 natural gas to 362,000 customers. lts service
tenitory covers 30,000 square miles in eastem Washington, northern ldaho and parts of southem
and eastem 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.
^l'iststa
This news release contains foruvard-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 subiect 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, allof the factors discussed in the company's Annual Report on Form 10-
K for the year ended Dec. 31 ,2020 and the Quarterly Report on Form 10-Q for the quarter ended
March 31,2021.
SOURCE: Avista Corporation
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^J'istsra
Important Notice for ldaho Customers DRAFT
(July 202r)
Avista has filed two rate adjustment requests with the Idaho Public Utilities Commission (Commission),
that if approved, are designed to increase overall natural gas revenue by approximately $7.1 million or
10.6% effective Sept. l, 2021. These filings have no impact on Avista's earnings.
The lirst adjustment 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 increase is primarily
driven by two factors: l) wholesale natural gas costs that are higher than the level presently included in
rates, and 2) the expiration of a rebate customers are currently receiving from last year's PGA. If approved,
Avista's request is designed to increase annual natural gas revenues by approximately $9.0 million or
13.5%.
The second filing is the Deferred Balances Credit filing. This filing returns to customers deferred balances
related to depreciation expense, Accumulated Funds Used During Construction (AFtlDC), and CARES
Act benefits. If approved, Avista's request is designed to decrease natural gas revenues by approximately
$1.9 million or2.9Yo.
These rate adjustment filings are separate and distinct from the Settlement Stipulation filed on June 14,
2021 related to the pending general rate case filing, that if approved, would reduce customer's natural gas
bills by an overall 4.5o/o, also on Sept. 1,2021.
Customer Bills
Natural Gas
If the natural gas PGA and the Deferred Balances Credit filings are approved, residential natural gas
customers in Idaho using an average of 63 therms per month would see their monthly bills increase from
$49.49 to $54.05, an increase of $4.56 per month, or approximately 9.2%o. The proposed natural gas rate
changes would be effective Sept. l, 2021.
The net effect, on an annual revenue basis, for the requested natural gas rate changes by rate schedule are:
General Service - Schedule l0l
Large General Service - Schedules lll &.112
Transportation Service - Schedule 146
Overall
9.2%
t63%
-2.9%
10.6%
Rate Application Procedure
The Company's applications are proposals, subject to public review and a Commission decision. Copies of
the applications are available for public review at the offices of both the Commission and Avista, and on
the Commission's website ($ryy+usjdahp€gy). 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://wwrv.puc.idaho.gov/rssfeeds/rss.htm) 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 woutrd like to strbrnit comments on tlre prepoood rate changc, yox can do so by going to tho
Commissioo urcbsirc or mailing commeirts to:
Idaho Public Utilities Commission
P.O. Box 83120
Boiso,ID 8?720-A074
Avista offers anumber of progams and servicec to help customers manago their mergy ule and costs. Visit
www.myavista.com for inforrration on theso preglams whish inclrdo Cmfort Levet Bilting bill palmont
options, automafed paiyment servicg assistance progrems, conscr\llation tips, and €nqry efficioncy re,bates,
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