HomeMy WebLinkAbout20220429Application.pdf^J,iytsr,a
Apnl29,2022
Avista Corp.
1411 East Mission P.O.Box3727
Spokane, Washington 99220-0500
Telephone 509-489-0500
Toll Free 800-727-9170
()
Commission Secretary
State ofldaho
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Building 8, Suite 201-A
Boise, Idaho 83702-5983
CaseNo. AVU-G-22-02-
I.P.U.C. No. 27 -Natural Gas Service
Enclosed for electronic filine with the Commission is a copy of the following proposed tariff sheet:
Thirty-First Revision Sheet 150 canceling Thirtieth Revision Sheet 150
Submitted electonically for filing with the Commission are the "Application of Avista Utilities for an
Order Approving a Change in Natural Gas Rates and Charges". The revised tariff sheet included in the
Company's filing reflects an update to the Commodity WACOG for the Company's Purchased Gas Cost
Adjustment ("PGA'). If approved, the Company's annual revenue will increase by approximately $8.3
million or approximateLy l0.5Yo. The proposed changes have no effect on the Company's earnings.
Detailed information related to the Company's request is included in the attached Application and
supporting workpapers.
If the Company's request is approved, a residential or small commercial customer using an average of 63
therms will see anincrease of $5.214 per month, or approximately 9.7%o. The prese,nt bill for 63 therms is
$55.86 while the proposed bill is $61.30.
If you have any questions regarding this filing, please contact Joe Miller at (509) 495-4546 or Marcus
Gaftarino at (509) 495-2567.
Sincerely,
/s/ Patrick D. Ehrbar
Patrick D. Ehbar
Director of Regulatory Affairs
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BEFORE TIIE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
AVISTA UTILITIES FOR AN ORDER APPROVING ) CASE: AVU-G-22-09
A CHANGE IN NATURAL GAS RATES AND CHARGES )
Application is hereby made to the ldaho Public Utilities Commission for an Order approving a revised
schedule of rates and charges for natural gas service in the state of Idaho. The Applicant requests that
the proposed rates included in this Purchased Gas Cost Adjusftnent (*PGA") filing be made effective on
July l, 2022. If approved as filed, the Company's annual revenue will increase by approximately $8.3
million or about 10.5%. In support of this Application, Applicant states as follows:
I.
The name of the Applicant is AVISTA CORPORATION, doing business as AVISTA UTILITIES
(hereinafter Avista, Applicant or Company), a Washington corporation, whose principal business office
is l4l 1 East Mission Avenue, Spokane, Washington, and is qualified to do business in the state of Idaho.
Applicant maintains district offices in Moscow, Lewiston, Coeur d'Alene, and Kellogg, Idaho.
Communications in reference to this Application should be addressed to:
Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
1411E. MissionAvenue
Spokane, WA 99220-3727
Phone: (509) 495-8620
Fax: (509) 495-8851
P at. ehrbar(@ avi stacorp. com
Dockets@.avistacorp.com
u.
Attorney for the Applicant and his address is as follows:
David J. Meyer
Vice President and Chief Counsel for Regulatory
And Governmental Affairs
Avista Utilities
l4l I E. Mission Avenue
Spokane, WA 99220-3727
Phone: (509)495-4316
Fax: (509) 495-8851
David. meyer(a) avi stacorp. com
Case No. AW-G-22-0[Page I of5
m.
The Applicant is a public utility engaged in the distribution of natural gas in certain portions of Northern
Idaho, Eastem and Central Washington, and Southwestem and Norlheastern Oregon, and further
engaged in the generation, transmission, and distribution of elechicity in Northern Idaho and Eastem
Washington.
ry
Thirty-First Revision Sheet 150, which Applicant requests the Commission approve, is filed herewith
as Exhibit "A". Also included in Exhibit "Au is a copy of Thirtieth Revision Sheet 150 and a copy of
Thirtieth Revision Sheet 150 and with the proposed changes shown by lining over the current language
or rates.
The existing rates and charges for natural gas service on file with the Commission and designated as
Applicant's Tariff IPUC No. 27, which will be superseded by the rates and charges filed herewith, are
incorporated herein as though fully attached hereto.
VI.
Notice to the Public of Applicant's proposed tariffs is to be given simultaneously with the filing of this
Application by posting, at each of the Company's dishict offices in Idaho, a Notice in the form attached
hereto as Exhibit "B" and by means of a press release distributed to various inforrnational agencies, a
draft copy attached hereto in Exhibit "C". In addition, Exhibit "C" to this Application also contains the
form of customer notice that the Company will send to its customers in its monthly bills, which is
scheduled to begin on May 7 ,2022 and complete on June 6,2022.
VII.
The circumstances and conditions relied on for approval of Applicant's revised rates are as follows:
Applicant purchases natural gas for customer usage and tansports it over Williams Northwest Pipeline,
Gas Transmission Northwest (GTN), TransCanada - Alberta, TransCanada - BC and Specta Energy
Pipeline systems, and defers the effect of timing differences due to implementation of rate changes and
differences between Applicant's actual weighted average cost of gas ("WACOG") purchased and the
WACOG embedded in rates.
vm.
This filing reflects the Company's proposed "Out of Cycle" PGA to amend the commodity WACOG in
Schedule 150 due to a material change in natural gas prices and collect the change in the estimated cost
of natural gas, The Company used the twelve-month period beginning July l, 2022 to estimate the
commodity WACOG proposed in this filing. Below is a table summarizing the proposed changes
reflected in this filing.
V
CaseNo. AVU-G-22-0 Page 2 of5
Service
General
Lg. General
Lg General
Intemrptible
Transportation
Commodity
Change
per therm
$ 0.08641
$ 0.08641
$ 0.08641
$ 0.08641
$-
Demand
Change
oer therm
$-
$-
$-
$-
$-
Total
Sch. 150
Chane€
$ 0.08641
s 0.08641
s 0.08641
$ 0.08641s-
Sch.
No.
l0l
lll
tt2
l3t
146
Amortization Total PGA
Change Rate Change
per therm oer therm
$ $ 0.08641
$ - $ 0.08641
$ - $ 0.08641
$ - $ 0.08641
$-$-
Ix.
Commoditv Costs
In CaseNo. AVU-G-21-04, the Commission approved the Company's annual PGA with a September 1,
2021 effective date. In that filing, the Company's commodity weighted average cost of gas
("Commodity WACOG") increased by $0.04022 per therm, from $0.16283 per thenn to $0.20305 per
therm (including revenue sensitive costs). Subsequently, in Case No. AVU-G-21-07, the Commission
approved the Company's proposed "out-of-cycle" PGA adjustment to the commodity weighted average
cost of gas ("Commodity WACOG") included in Schedule 150 by $0.06235 per thenn, from $0.20305
per therm to $0.26540 per therm (including revenue sensitive costs) effective February 1,2022.
Since that time, the price of wholesale natural gas has continued to rise, with prices reaching levels not
seen in over 13 years. The market factors atfibuting to the rise in prices are an overall increase in
demand, lower supply, and more recently the impact that the global natural gas market is having on the
US natural gas market due to the war in Ukraine. The increase in demand for natural gas has been due
to elevated liquified natural gas (LNG) exports, which have been running at or near capacrty throughout
the winter, and use for electric generation remaining elevated. Historically, when natural gas prices reach
high levels, there is a reduction in demand for its use in power generation, however, with the two main
alternative fuels (coal and oil) also being priced at extremely high levels, this has not occurred. On the
supply side, production has been slow to ramp up to pre-pandemic levels and production has
underperformed expectations n2022. The increased demand and lack of supply has also led to storage
balances being well below historical levels. Although the US natural gas market is not directly connected
to the European market except through LNG exports, which as mentioned are already operating at
capacity, there is likely some risk premium being priced into the US market based on the expectation
that world energy prices will remain elevated. Some of these market conditions were present when the
Company made its filings n 2021, but when coupled with the additional market factors increasing
demand for natural gas, there has been additional upward pressure on wholesale natural gas prices, thus
creating a material change from the WACOG approved in the Company's prior PGA. Avista is
proposing a rate adjustrnent that more closely aligns the actual cost of what Avista is paying for natural
gas with what is included in customer rates in this frling.
As a result of the changes in pricing in the wholesale markets, the Company proposes to increase the
Commodity WACOG from the $0.26540 per therm embedded in current rates to $0.35181 per therm,
representing an increase of $0.08641 per therm. Making this filing now results in limiting the surcharge
deferral for the remainder of the PGA year and allows the Company to re-evaluate the estimated
commodity WACOG based on updated market prices when we make our annual fullPGA filing in the
3rd Quarter of 2022.
CaseNo. AVU-G-22-0 Page 3 of5
The Company calculated the proposed Commodity WACOG of $0.35181 per themr by adjusting just
two items. First, the Company used a 30-day historical average of AECO forward prices (as of April
12,2022) to develop an estimated cost associated with index purchases for the one-year period beginning
after the effective date. The estimated monthly volumes to be purchased during this period are multiplied
by the 30-day average forward price for the corresponding month. The annual weighted average price
for these volumes is $4.21 per dekatherm ($0.421 per therm). The annual weighted average price
presently included in rates for these volumes is $3.06 per dekatherm ($0.306 per therm).
Second, the Company entered into additional natural gas hedges after it filed its last PGA Commodity
WACOG update. The weighted average price for hedged natural gas presently included in rates is $2.66
per dekatherm ($0.266 per therm). The annual weighted average price for all hedges during the period,
including those entered into after the annual PGA filing, is now $2.90 per dekatherm (0.290 per therm).
Updating the 30-day historical average of forward wholesale natural gas prices, and reflecting all hedges
entered into to date for the period, results in a proposed $8.3 million annual revenue increase.
x.
Demand Costs
The Company is not requesting any changes related to demand charges in this filing. Any changes to
those items will occur in the Company's next annual PGA filing.
xI.
Schedule 155 / Amortization Rate Change
The Company is not requestrng any changes related to Rate Schedule 1S5/Amortization charges in this
filing. Any changes to those items will occur in the Company's next annual PGA filing.
XII.
If approved as filed, the Company's annual revenue will increase by approximately $8.3 million or about
10.5% effective July 1, 2022. Residential or small commercial customers using an average of 63 therms
per month would see an increase of $5.44 per month, or approximately 9.7%o. The present bill for 63
therrrs is $55.86 while the proposed bill is $61.30.
xrII.
Confidential Exhibit "D" attached hereto contains supponing workpapers for the rates proposed by
Applicant contained in Exhibit "A".
XIV
Avista requests that the rates proposed in this filing be approved to become effective on July 1,2022,
and requests that the matter be processed under the Commission's Modified Procedure rules through the
use of written comments. Avista stands ready for immediate consideration on its Application.
Case No. AW-G-22-0 Page 4 of5
XV
WHEREFORE, Avista requests the Commission issue its Order finding its proposed rates to be just,
reasonable, and nondiscriminatory and to become effective for all natural gas service on and after July
1,2022. The overall increase is approximately $8.3 million or L0.5o/o. The Company requests that the
matter be processed under the Commission's Modified Procedure rules through the use of written
comments.
Dated at Spokane, Washington, this 296 day of Aptrl2022.
AVISTA UTILMIES
BY
/s/ David J. Meyer
David J. Meyer
Vice President and Chief Counsel for
Regulatory and Governmental Atrairs
Case No. AW-G-22-0 Page 5 of5
AVISTA UTILITIES
Case No. AW-G-22-02
April PGA Commodity WACOG Update
DGIIBIT *A"
Proposed Tariff Sheet
April 29,2022
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 150
PURCHASE GAS COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To pass through changes in costs resulting from purchasing and transporting
natural gas, to become effective as noted below.
RATE:(a) The retail rates of firm gas Schedules 101, 111 and 112areto be increased
by 44.424fi, per therm in all blocks of these rate schedules.
(b) The rates of interruptible Schedules 131 and 132 are to be increased by
35.1810 pertherm.
(c)The rate for transportation under Schedule 146 is to be decreased by
0.0006 per therm.
WEIGHTED AVERAGE GAS COST:
The above rate changes are based on the following weighted average cost of gas
per therm as of the effective date shown below:Demand Commodity Total
Schedules 101 9.2430 35.1810 44.424$,
Schedules 111 and 112 9.2430, 35.1810 44.424Q,
Schedules 131 and 132 0.0000 35.1816 35.1810
The above amounts include a gross revenue factor.
Demand Commodity Total
Schedules 101 9.2030, 35.0280 44.2310,
Schedules 111 and 112 9.2030, 35.0280, 44.2310,
Schedules 131 and 132 0.0000 35.0280 35.0286
The above amounts do not include a gross revenue factor.
BALANCING ACCOUNT:
The Company will maintiain a Purchase Gas Adjustment (PGA) Balancing Account
whereby monthly entries into this Balancing Account will be made to reflect differences
between the actual purchased gas costs collected from customers and the actual
purchased gas costs incuned by the Company. Those differences are then collected from
or refunded to customers under Schedule 155 - Gas Rate Adjustment.
lssued 4pfl29,2022 Effective July 1,2022
LP.U.C. No.27
lssued by
By
Thirty-First Revision Sheet 150
Replacing
Thirtieth Revision Sheet 150 150
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 150
PURCHASE GAS COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customens in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To pass through changes in costs resulting from purchasing and transporting
natural gas, to become effective as noted below.
RATE:(a) The retail rates of firm gas Schedules 101, 111 and 112are to be increased
by 35J83d per therm in all blocks of these rate schedules.
(b)The rates of intenuptible Schedules '131 and 132 are to be increased by
W pertherm.
(c)The rate for transportation under Schedule 146 is to be decreased by
0.0006 per therm.
WEIGHTED AVERAGE GAS COST:
The above r:ate changes are based on the following weighted average cost of gas
per therm as of the effective date shown below:Demand Commodity Total
Schedules 101 9.2430, M$, W
Schedules 111 and 112 9.2430, M$ 3E#8A$,
Schedules 131 and 132 0.0006 M$, W
The above amounts include a gross revenue factor.
Demand Commodity Total
Schedules 101 9.2030, W$, W7$,
Schedules 111 and 112 9.2030, W$, W7$,
Schedules 131 and 132 0.0000 W$, ru$,
The above amounts do not include a gross revenue factor.
BALANCING ACCOUNT:
The Company will maintain a Purchase Gas Adjustment (PGA) Balancing Account
whereby monthly entries into this Balancing Account will be made to reflect differences
between the actual purchased gas costs collected from customers and the actual
purchased gas costs incuned by the Company. Those differences are then collected from
or refunded to customers under Schedule 155 - Gas Rate Adjustment.
Effective February 1,2022lssued December 3,2021
l.P.U.C. No.27
lssued by
By
Thirtieth Revision Sheet 150
Replacing
Revision Sheet 150 150
Utilities
Patrick Ehrbar- Director of Regulatory Affairs
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 150
PURCHASE GAS COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where Company has natural gas service
available.
PURPOSE:
To pass through changes in costs resulting from purchasing and transporting
natural gas, to become effective as noted below.
RATE:(a) The retail rates of firm gas Schedules 101, 111 and 112areto be increased
by 44.424G, per therm in all blocks of these rate schedules.
(b)The rates of intemrptible Schedules 131 and 132 are to be increased by
35.181d per therm.
(c)The rate for transportation under Schedule 146 is to be decreased by
0.0000 per therm.
WEIGHTED AVERAGE GAS COST:
The above rate changes are based on the following weighted average cost of gas
per therm as of the effective date shown below:Demand Commodity Total
Schedules 101 9.2430, 35.181d 44.424C
Schedules 111 and 112 9.2430, 35.181d 44.424A
Schedules 131 and 132 0.0009 35.181d 35.181d
The above amounts include a gross revenue factor.
Demand Commodity Total
Schedules 101 9.2030, 35.028G, 44.2316
Schedules 111 and 112 9.203fi 35.028d 44.231A
Schedules 131 and 132 0.0000 35.028d 35.028d,
The above amounts do not include a gross revenue factor.
BALANCING ACCOUNT:
The Company will maintain a Purchase Gas Adjustment (PGA) Balancing Account
whereby monthly entries into this Balancing Account will be made to reflect differences
between the actual purchased gas costs collected from customers and the actual
purchased gas costs incurred by the Company. Those differences are then collected from
or refunded to customers under Schedule 155 - Gas Rate Adjustment.
lssued 4pn129,2022 Effective July 1,2022
l.P.U.C. No.27
lssued by
By
Thirty-First Revision Sheet 150
Replacing
Thirtieth Revision Sheet 150 150
Avista Utilities
Patrick Ehrbar- Director of Regulatory Affairs
AVISTA UTILITIES
Case No. AVU-G-22-02
April PGA Commodity WACOG Update
DGIIBIT'OB"
Notice of Applicant's Proposed Tariffs
April 29,2022
DRAFT
Important Notice for Idaho Customers
(May 2022)
Avista has frled a Purchased Gas Cost Adjustment (PGA) rate adjustmant request with the Idaho Public
Utilities Commission (Commission), that if approved, is designed to increase overall natural gas revenue
by approximately $8.3 million or 10.5% effective July 1, 2022. Tltis filing has no impact on Avista's
earnings.
The PGA is typically filed annually to balance the actual cost of wholesale natural gas purchased by
Avista to serve customers with the amount presently included in customer's rates. PGAs ensure that
customers pay what Avista pays for natural gas, only at a more predictable and stable rate throughout the
year.
Since the last PGA was filed in late 202l,the price of wholesale natural gas has continued to rise. Due to
this increase of wholesale natural gas prices, Avista is proposing a rate adjustment that more closely
aligns the actual cost of what Avista is presently payrng for wholesale natural gas with the cost of
natural gas included in customer rates.
About 40Yo of an Avista natural gas customer's bill is the combined cost of purchasing natural gas on the
wholesale market and tansporting it to Avista's systan. These costs fluctuate up and down based on
market prices, of which Avista cannot control. lmportantly, Avista does not make a profit on, or
markup, the wholesale cost of natural gas; what Avista pays is what is passed through to customers, dollar
for dollar.
Natural Gas Customer Bills
If approved, residential natural gas customers in Idaho using a monthly average of 63 therms would see
their bills increase $5.44 or approximately 9.7Yo, from $55.86 to $61.30 per month effective July 1,2022.
Net effect on an i General Service - Schedule l0l
Large General Service - Schedule l l l
Large General Service - Schedule l12
Transportation Service - Schedule 146
Overall
9.7%
13.8%
14.9%
0.0%
105%
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 on the Commission's website (www.puc.idaho.eov).
Customers may file with the Commission written comments related to the Company's filings. Customers
may also subscribe to the Commission's RSS feed (https://puc.idaho.eov/RssPaee) 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, ID 83720-0074
DRATT
Avistaoff€rs anumberofpnograms and sevioes to help oustomerc managetheireoergyuse and costs. Visit
www.myavistacom forinformatioa on ftceprogrms wtich irclude Comfort Irvel Billingbill palment
qfions, automatodpalment semrice, assistanceprogr,ams, conservationtipe, and merg5lefficiencyrobates.
AVAilS3i
DAVID J. MEYER
VICE PRESIDENT AND CHIEF COI.JNSEL FOR
REGIJLATORY & GOVERNMENTAL AFFAIRS
AVISTA COFJORATION
P.O.BOX3727
141I EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-37 27
TELEPHONE: (509) 495-4316
FACSIMILE: (s09) 495-885 I
DAVID.MEYER@AVISTACORP. COM
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN TITE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR A}.I
ORDER APPROVING A CHANGE
IN NATURAL GAS RATES AND CHARGES
TO NATURAL GAS CUSTOMERS IN THE
STATE OF IDAHO
)
)
)
)
)
)
)
)
CASE NO. AVU-G-22-1.L
ATTORNEY'S CERTIFICATE
CLAIM OF CONFIDENTIALITY
RELATING TO PORTIONS
OF AVISTA'S EXHIBIT'S
AND WORKPAPERS
1
2
3
4
5
6
7
I
9
FOR AVISTA CORPORATION
I, David J. Meyer, represent Avista Corporation. I am Vice President and Chief
Counsel for Regulatory and Governmental Affairs for Avista Corporation (Avista or
Company) and I an appearing on its behalf in this proceeding.
I make this certification and claim of confidentiality pursuant to IDAPA 31.01.01
because Avista, through its supporting workpapers, is disclosing certain information that
is CONFIDENTIAL and constitutes TRADE SECRETS as defined by Idaho Code
Section 9-340 and 48-801 and protected under IDAPA 31.01.01.067 and 31.01 .01.233.
The electonic information Avista provides will, as required under IDAPA Rule
31.01.01.067, be marked as CONFIDENTIAL on all documents. [n accordance with
Case No. GNR-U-20-01, OrderNo.34602 which suspends the requirement to physically
file documents due to the COVID-l9 Pandemic, the Company will file all workpapers,
tariffs, and exhibits only in electronic format.
The confidential information that Avista is disclosing includes, but is not limited
to certain forward wholesale natural gas pricing which is provided by a third-party
vendor, who does not allow public access to their proprietary information. Avista herein
asserts that the aforementioned information is confidential in that making third-party
pricing data public will violate the terms of our agreement with the vendor.
I am of the opinion that this information is CONFIDENTIAL, as defined by
Idaho Code Sections 9-340D and 48-801, should therefore be protected from public
inspection, examination and copying, and should be utilized only in accordance with the
terms of the protective agreement between Avista Corporation and Parties who have
requested such an agreement.
10
11
1,2
13
1.4
15
t6
1,7
18
19
20
21-
22
23
ATTORNEY'S CERTTFTCATE - 1
1
2
3
4
5
6
7
RESPECTFTJLLY SUBMITTED this 296 day of Fq2nl2022
/s/ DdvidJ.Mapr
David J. Meyer
Vice Fresident and Chief Counsel for
Regulatory & Governmental Atrairs
Avista Corporation
ATTORNEY'S CERTIFICATE . 2
AVISTA UTILITIES
Case No. AVU-G-22-0 2
April PGA Commodity WACOG Update
DGIIBIT 66C"
Copy of Press Release and Customer Notice
April 29,2022
Gontact:
Media: Casey Fielder (509) 495-491 6 casev.fielder@avistacorp.com
I nvestors : Stacey Wenz (509) 4954 1 7 1, stacev.wenz@av istacorp. com
Avista 2417 Media Access (509) 495-4174
Avista Makes Natural Gas Price Adjustment Request in Washington
and ldaho
Overall changes in naturalgas prices would be effective July 1, 2022
SPOKANE, Wash. April29, 2022,4:05 p.m. PST: Avista (NYSE: AVA) has made Purchased
Gas Cost Adjustment (PGA) filings with the utility commissions in Washington and ldaho that, if
approved, are designed to increase overallnaturalgas revenue 12.60/o and 10.5%, respectively,
effective July 1 ,2022. These filings have no impact on Avista's earnings.
PGA requests are $pically filed annually to balance the actual cost of wholesale natural gas
purchased by Avista to serve customers with the amount presently included in customeds rates.
Avista does not make a profit on, or markup, the wholesale cost of natural gas; PGAs ensure
customers pay what Avista pays, dollar for dollar, only at a more predictable and stable rate
throughout the year.
Since the last PGA filings were made, the price of wholesale natural gas has continued to rise
with dramatic sustained increases since late March, with prices reaching levels not seen in over
13 years. About 40o/o 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.
As the effects of inflation impact the entire country, the cost of doing business is going up for all
companies and industries. This filing is an effort to incrementally align customers' rates with the
market conditions for predictability.
Natura! Gas Customer Bills
Washington: lf approved, residential natural qas customers using an average of 67 therms per
month would see their monthly bills change from $64.86 to $72.66, an increase of $7.80 per
month, or approximately 1 1.7o/o.
The percentage change varies by rate schedule and is dependent upon how much energy
customers on the respective rate schedules use. lf approved, natural gas customers would see
the following rate adjustments:
General Service - Schedule 101 & 102 11.7o/o
Large General Service - Schedule 111 & 112 17.0o/o
lnterruptible Sales Service - Schedule 131 & 132 19.8%
Transportation Service - Schedule 146 0.0%Overall 12.60/o
ldaho: lf approved, residential natural oas customers using an average of 63 therms per month
would see their monthly bills change from $55.86 to $61.30, an increase of $5.44 per month, or
approximately 9.7o/o.
The percentage change varies by rate schedule and is dependent upon how much energy
customers on the respective rate schedules use. lf approved, natural gas customers would see
the following rate adjustments:
General Service - Schedule 101 9.7o/o
Large General Service - Schedule 111 13.8o/o
Large GeneralService - Schedule 112 14.9o/o
lntenuptible Sales Service - Schedule 131 & 132 0.0%
Transportation Service - Schedule 146 0.0%Overall 10.5o/o
To help customers proactively manage their energy use, Avista offers services to those who
may need and qualifies for assistance in managing their energy bills such as comfort level
billing, payment arrangements and special circumstantial referrals to area agencies and
churches for help with housing, utilities, medical assistance and other needs. Avista also
provides funding for energy assistance programs which are administered through community
action agencies.
Energy efficiency and outreach programs are also offered which include rebates and incentives
as well as tips and resources to help customers manage their energy use and energy bills.
Customers can learn more at www.mvavista.com.
About Avista Corp.
Avista Corp. is an energy company involved in the production, transmission and distribution of
energy as wel! as other energy-related businesses. Avista Utilities is our operating division that
provides electric service to 403,000 customers and natural gas to 369,000 customers. lts
service territory covers 30,000 square miles in eastem Washington, northern ldaho and parts of
southern and eastem 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 Lioht 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 cunent
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, al! of the factors discussed in the company's Annual Report
on Form 10-K for the year ended Dec. 31, 2021.
SOURCE: Avista Corporation
-2212-
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lena.fu nston @avistacorp. co m
DRAFT
Important Notice for Idaho Customers
odty 2022)
Avista has filed a Purchased Gas Cost Adjustment (PGA) rate adjustment request with the Idaho Public
Utilities Commission (Commission), that if approved, is designed to increase overall natural gas revenue
by approximately $8.3 million or 10.5% effective July l, 2022. T\is filing has no impact on Avista's
earnings.
The PGA is typically filed annually to balance the actual cost of wholesale natural gas purchased by
Avista to serve customers with the amount presently included in customer's rates. PGAs ensure that
customers pay what Avista pays for natural gas, only at a more predictable and stable rate throughout the
year.
Since the last PGA was filed in late 202l,the price of wholesale natural gas has continued to rise. Due to
this increase of wholesale natural gas prices, Avista is proposing a rate adjustment that more closely
aligns the actual cost of what Avista is presently paying for wholesale natural gas with the cost of
natural gas included in customer rates.
About 40Yo 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, of which Avista cannot control. lmportantly, Avista does not make a profit on, or
markup, the wholesale cost of natural gas; what Avista pays is what is passed through to customers, dollar
for dollar.
Natural Gas Customer Bills
If approved, residential natural gas customers in Idaho using a monthly average of 63 therms would see
their bills increase $5.44 or approximately 9.lYo, from $55.86 to $61 .30 per month effective luly 1,2022.
Net effect on an i General Service - Schedule l0l
Large General Service - Schedule I I 1
Large General Service - Schedule I 12
Transportation Service - Schedule 146
Overall
9.7%
13.8o/o
149%
0.0%
10.5%
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 on the Commission's website (www.puc.idaho.eov).
Customers may file with the Commission written comments related to the Company's filings. Customers
may also subscribe to the Commission's RSS feed (https://puc.idaho.eovlRssPage) to receive periodic
updates via e-mail about the case. Copies of rate filings are also available on our website,
www. myavista.corn/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
DRATT
Avista ofers a nrmber of programs and services to help crutomers manage their energy use and oosts. Visit
www.myavista.com for information on these progrms uihich include Comfort kvel Biling bill palment
qrtions, automatedpaynent s€rvice, assistance programs, cons€rvation tipe, aud meqgy efficiencyrrebates.
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