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HomeMy WebLinkAbout20220902Application.pdf.i?rtsra Avlsta Corp. l4l I East Mission P.O. Box 3721 Spokane, Washington 99220-0500 Telephonc 5D-{89-0500 Toll Free 8A0-727-9170 RECEIVET) 2022 SEP-2 AM 10:40 IDAHO PUBI.IC UTILITIES COMMISSION AVU€-22.06 S€p,t€mbcr 2,2022 Commission Sccraary Statc of ldabo Idaho Public Utilitics Commission I l33l W. Chindcn Blvd" Building 8, Suite 201-A Boise,Idaho 83714 Case No. AV1J-G-22-0[ LP.U.C. No.27-Netunl Gu Servlce In accordancc with Casc No. GNR-U-2041, Orrdsr No. }ffi} which suspcnds thc requiremart to file physical copies, the Company has attachod for eloctr,onic filing with thc Commission are thc following Evised tariff sheets: Thlrty-Second Revbbn Shcet 150 crnceling Thtrty-nnt Revlrlon Shect 150 Twcnty-Fourlh Revirlon Shcct 155 crncelng Twenty-Thlrd Rcvlrlon Shect t55 The Company rEquosts that the proposod ariffshoets be made effective Novembcr 1,2022. Thcsc tariffshe€tg rcflcct thc Compeny'e annual Pur$asod Gas Coot Adjustmcnt ('PGA'). If approvo4 the Compny's annud llleNruc will inozase by approximarcly $l1.2 million or apmximatcly 12.7o/o. Thc proposod changes havc no effect on tlrc Cmpany'r caminge. DGtailcd informrtion rclrtod to thc Compony's rcqucs was filod eletronically along with thc attachod Application and supporting workpapcrs. Fild concurrently with this PGA is the Natural Gas Energy Efficicncy (DSM) filing. Ifboth the PGA and DSM filings arc approvd residcotial natural gas customcrs in ldaho usrtrg ao averagc of 63 thcrms pcr month would sce their monthly bills incrcasc frrom $61.30 to $70.52, an increase of 59.22 per month" or approximatc$ 15.0o/o. The proposcd natural gas ratc changes would be effoctive Novcmbcr 1,2022. If you have any qucstions r€garding this filing, please contact Marcus Gaftarino at (509) 495-2567. Sinccroly, /s/ Patrick D. Ehrbar Patrick D. Ehftar Director of Rcgulatory Atrairs BEFORE T}IE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF AVISTA UTILITIES FOR AN ORDER APPROVING A CHANGE IN RATES FOR PURCHASED GAS COSTS AND AMORTZATION OF GAS-RELATED DEFERRAL BALANCES ) ) ) ) ) CASE: AVLJ-G-22-0+ Application is hereby made to the Idaho 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 Adjustnent (*PGA") filing be made effective on November 1,2022. If approved as filed, the Company's annual revenue will increase by approximately $11.2 million or about 12.7o/o. In support of this Application, Applicant states as follows: I. The name of the Applicant is AMSTA CORPORATION, doing business as AMSTA UTILITIES (hereinafter Avista, Applicant or Company), a Washington corporation, whose principal business office is 141 1 East Mission Avenue, Spokane, Washington, and is qualified to do business in the state of Idatro. Applicant maintains district offices in Moscow, Lewiston, Coeur d'Alene, Sandpoint, and Kellogg, Idaho. Communications in reference to this Application should be addressed to: Patrick D. Ehrbar Director of Regulatory Affairs Avista Utilities l411 E. Mission Avenue Spokane, WA 99220-3727 Phone: (509) 495-8620 Pat. ehrbar@ avistacom.com Dockets@ avistacorp. com II. 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 14l l E. Mission Avenue Spokane, WA 99220-3727 Phone: (509)495-4316 David.meyer(d avistacorp. com Case No. AVU-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, Eastern and Central Washington, and Southwestern and Northeastern Oregon, and further engaged in the generation, transmission, and distribution of electricity in Norttrern Idaho and Eastern Washington. rV Thirty-Second Revision Sheet 150, which Applicant requests the Commission approve, is filed herewith as Exhibit "A". Additionally, Twenty-Fourth Revision Sheet 155, which Applicant requests the Commission approve, is also filed herewith as Exhibit uA". Also included in Exhibit uAu is a copy of Thirty-Second Revision Sheet 150 and Twenty-Fourth Revision Tariff Sheet 155 with the changes underlined and a copy of Thirty-First Revision Sheet 150 and Twenty-Third Revision Tariff Sheet 155 with the proposed changes shown by lining over the current language or rates. V 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 district offices in Idatro, a Notice in the form attached hereto as Exhibit "B" and by means of a press release distibuted to various informational agencies, a draft copy attached hereto in Exhibit "C". fn 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 in the September timeframe. 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 transports it over Williams Norlhwest Pipeline, Gas Transmission Northwest (GTN), TC Energy - Alberta, TC Energy - BC and Enbridge Energy Pipeline systems, and defers the effect of timing differences due to implementation of rate changes and differences between Applicanfs actual weighted average cost of gas ("WACOG") purchased and the WACOG embedded in rates. Applicant also defers various pipeline refunds or charges and miscellaneous revenue received from natural gas related transactions including pipeline capacrty releases. Workpapers for all proposed Commodity, Demand and Amortization costs are provided with this filing as Exhibit "D". VIII This filing reflects the Company's proposed annual PGA to: 1) pass through shanges in the estimated cost of natural gas forthe period ofNovember 2022 through October 2023 (Schedule 150), and 2) revise CaseNo. AVU-G-22-0 Page 2 of5 the amortization rate(s) to refund or collect the balance of deferred natural gas costs (Schedule 155). Below is a table summarizing the proposed rate changes reflected in this frling: Service General Lg. General Lg C-reneral Intemrptible Transportation Commodity Change per therm $ (o.oolll) $ (0.00111) $ (o.oolll) $ (o.ool I l) $- Demand Change per therm $ (0.0000s) $ (0.0000s) $ (o.oooos) $- $- $ (0.0011o $ $ (0.001lq $ $ (0.00111) $ $-$ 0. I 1658 TotalPGA Rate Change per therm $ 0.lls42 $ 0.11s42 $ (0.001Iq $ (0.00111) $- Sch. No. 101 lll n2 l3l 146 Total Amortizatbn Sch.150 Change Chanqe Der therm $ (0.0011o s 0.ll6s8 The Company is frling another Application simultaneously with this application related to energy efliciency funding that would increase natural gas revenues by approximately $2.6 million or 3.0% effective November 1,2022. If both applications are approved the net change to natural gas revenue would be an increase of approximately $13.8 million or 15.7o/o effective November 1,2022. D(. Schedule 150 / Purchase Gas Cost - Commoditv Costs As shown in the table above, the estimated WACOG change is a decrease of $0.00111 per therm; the proposed WACOG of $0.35070 per therm compared to the present WACOG of $0.35181 per therm included in rates. The decrease is a result of the two out of cycle PGA's approved by the Commission during the PGA year that increased the commodity WACOG of $0.20305 per therrn effective September 1,2021to $0.26540 per therm effective February 1,2022, and $0.35181 pertherm effective July 1, 2022. Since the filing of our last out of cycle PGA in April 2022, forward prices have come down slightly resulting in the current decrease, however, the natural gas market in the US has seen extaordinary price volatility this past year in both the spot and forward markets and has at times reached levels not seen in over a decade. The Henry Hub spot price settled above $9 on several days during late May and early June of 2022, which is a level the market has not seen since 2008. Regional hubs in the Pacific Norlhwest have also seen similar volatility and high prices throughout the year, resulting in wholesale and forward natural gas prices substantially above the level presently included in rates. The market factors attributing to the rise in prices is an overall increase in demand and lower supply. Demand has remained stong mainly due to LNG exports which have been running at or near capacrty through the winter and spring. Additionally, there has been a lack of fuel switching that is normally expected when natural gas prices are elevated to the level they are currently at. When natural gas prices reach high levels there is typically some volume of demand destruction that occurs as consumers utilize their ability to switch to cheaper fuels where possible. However, that has not happened in the current environment as the two main alternative fuels, coal and oil, are also priced at extremely high levels limiting the incentive to switch away from natural gas. An additional factor is the retirement of coal fired generating plants over the past few years has significantly reduced the overall capacity available for fuel switching away from gas. On the supply side, US production has underperformed expectations since the start of 2022 ptfitng pressure on wholesale prices. The increased demand and lack of supply have led to storage levels well below the 5-year average putting upward pressure on both cash and forward prices for the remainder of Case No. AVU-G-22-0 Page 3 of 5 2022. Also, although the US natural gas market is not directly connected to the European market except through LNG exports, which are already operating at capacity as mentioned above, there is likely a risk premium being priced into the US market based on the expectations that world energy prices will remain elevated due to the War in Ukraine. The Company's natural gas Procurement Plan ("Plan") uses a diversified approach to procure natural gas for the coming PGA year. While the Plan generally incorporates a more structured approach for the hedging portion of the portfolio, the Company exercises flexibility and discretion in all areas of the plan based on changes in the wholesale market. The Company typically meets with Commission Staffsemi- annually to discuss the state of the wholesale market and the status of the Company's Plan. In addition, the Company communicates with Staff when it believes it makes sense to deviate from its Plan and/or opportunities arise in the market. Avista has been hedging natural gas on both a periodic and discretionary basis throughout the previous thirty-six months for the forthcoming PGA year. Approximately 4l% of the annual load requirements for this year's PGA period (November 2022 throryh October 2023) have been hedged at a fixed-price derived from the Company's Plan. Though June, the hedge volumes for the PGA period have been executed at a weighted average price of $2.91 per dekatherm ($0.291 per thenn). The Company used a 15-day historical average of AECO forward prices (ending July 18, 2022) to develop an estimated cost associated with index purchases. These index purchases represent approximately 59% of estimated annual load requirements for the coming year. The annual weighted average price for these volumes is $4.12 per dekatherm ($0.412 per therrn). x. Schedule 150 / Purchase Gas Cost - Demand Costs Demand costs reflect the cost of pipeline transportation to the Company's system, as well as fixed costs associated with natural gas storage. As shown in the table above, demand costs are expected to slightly decrease for residential customers by approximately $0.00005 per therm. This decrease is related to a variety of factors including Canadian exchange rate, updated demand forecast, and new rates for Canadian pipelines effective h:;lre 1,2022. xI. Schedule 155 / Amortization Rate Chanee As shown in the table above, the proposed amortization rate change for Schedule 101 and Schedule 111 is an increase in revenue of $0.11542per thenn. The current rate applicable to Schedule 101 and Schedule 111 is $0.01505 per therm in the surcharge direction; the proposed rate is $0.13163 per thenn in the surcharqe direction. In the 2021 PGA filing, in an effort to minimize the over rate increase to customers due to a large surcharge deferred amortization balance, the Company proposed amortizing the balance over 38 months, which was approved by the Commission. Case No. AVt -G-22-0 Page 4 of5 In this PGA filing, the Company has used the deferral and amortization balances as of Jtme 2022, inclusive of the residual amortization balance from the prior PGA, and proposed anortizrngthe balance over l2-months which is consistent with historical PGA filings. The result is a surcharge amortization rate to collect approximately $12.7 million from customers. On a per therm basis, the net impact of the expiring amortization surcharge and the new amortization surcharge is a change in the amortization rate of $0.1 1542 per therm. XII. If approved as filed, the Company's annual revenue will increase by approximately $11.2 million or about 12.7% effective November 1,2022. Residential or small commercial customers using an average of 63 therms per month would see an increase of $7 .27 per month, or approximately 1 l.9o/o. The present bill for 63 therms is $61.30 while the proposed bill is $68.57. XIII. Exhibit "D" attached hereto contains support workpapers for the Proposed Tariff Rates proposed by Applicant contained in Exhibit uA". xrv Avista requests that the rates proposed in this filing be approved to become effective on November 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. 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 nafural gas service on and after November I,2022. The overall increase is approximately $11.2 million or l2.7Yo. The Company requests that the matterbe processed under the Commission's Modified Procedure rules through the use of written comments. Dated at Spokane, Washington, this 2"d day of September 2022. AVISTA UTILITIES BY /s/ David J. Meyer David J. Meyer Vice President and Chief Counsel for Regulatory & Governmental Affairs Avista Corporation Case No. AVU-G-22-0 Page 5 of5 DAVID J. MEYER VICE PRESIDENT AND CHIEF COI]NSEL FOR REGIJLATORY & GOVERNMENTAL AFFAIRS AVISTA CORPORATION P.O.BO)(3727 1411 EAST MISSION AVENUE SPOKANE, WASHINGTON 99220 -37 27 TELEPHONE: (509) 49s-4316 FACSIMILE: (509) 495-885 1 DAVID.MEYER@AVISTACORP.COM BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF TTIE APPLICATION OF AVISTA CORPORATION FOR AN ORDER APPROVING A CHANGE IN NATURAL GAS RATES AND CHARGES CONFIDENTIALITY TO NATI.JRAL GAS CUSTOMERS IN THE STATE OF IDAHO ) ) ) ) CASENO. AW-G-22-gg ATTORNEY' S CERTIFICATE CLAIM OF ) ) ) ) RELATING TO PORTIONS OF AVISTA'S EXHIBIT'S AND WORKPAPERS 1 2 3 4 5 6 1 FOR AVISTA CORPORATION I, David J. Meyer, represent Avista Corporation. I am Vice President and Chief Counsel for Regulatory and Govemmental Affairs for Avista Corporation (Avista or Company) and I am 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 electronic information Avista provides will, as required under IDAPA Rule 31.01.01.067, be marked as CONFIDENTIAL on all documents. In accordance with Case No. GNR-U-20-01 , Order N o. 34602 which suspends the requirement to physically file documents due to the COVID-l9 Pandemic, the Company will file all work papers, 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. B 9 10 t-1 L2 13 L4 15 16 t't 1B L9 20 21, 22 23 ATTORNEY'S CERTIFICATE - I L 2 3 4 5 6 7 RESPECTFTILLY SUBMITTED this 2ud day of September 2022 /s/ DavidJ. Mever DavidJ. Meyer Vice President aod Chief Counsel for Regulatory & Governmental Atrairs Avista Corporation ATTORNEY'S CERTIFICATE . 2 AYISTA UTILITIES Case No. AVU-G-Z2-A6 E)GIIBIT 66A" Proposed TariffSheets 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 naturalgas, to become effective as noted below. RATE (a) The retail rates of firm gas Schedules 101 , 1 1 1 and 112 are to be increased by 44.308Q, per therm in all blocks of these rate schedules. (b)The rates of interruptible Schedules 131 and 132 are to be increased by 35.0700 per therm. (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 9.238Q, 35.0700 44.3080, Schedules 111 and 112 9.2380, 35.0700 44.3080, Schedules 131 and 132 0.0000 35.0700 35.0700 The above amounts include a gross revenue factor. Demand Commodity Total Schedules 101 9.198p 34.9170 44.1150 Schedules 111 and 112 9.1980 34.9170 44.1150, Schedules 131 and 132 0.0000 34.9170 34.917Q, 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 September2,2022 Effective November1,2022 l.P.U.C. No.27 lssued by By Thirty-Second Revision Sheet 150 Replacing Revision Sheet 150 150 Avista Utilities Patrick Ehrbar - Director of Regulatory Affairs AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 150 - Continued Additional debits or credits for Pipeline refunds or charges, Pipeline capacity release revenues and miscellaneous revenues or expenses directly related to the Company's cost of purchasing gas to meet customer requirements will be recorded in the Balancing Account. Defened gas costs will be determined for individual customers served under Schedufes 112, 132 and 146, as well as for customers that switch to or from any of these service schedules to another schedule. The defered gas cost balance for these customers will be based on monthly entries in the Balancing Account as described above. The defened gas cost balance for each customer will be eliminated by either, 1) a lump- sum refund or surcharge, as applicable, or 2) an amortization rate per therm to reduce the balance prospectively. SPECIAL TERMS AND CONDITIONS: The rates named herein are subject to increases as set forth in Schedule 158. Effective January 1,201'llssued November 5, 2010 l.P.U.C. No.27 lssued by By Second Revision Sheet 150A Replacing First Revision Sheet 150A 150 Avista Utilities Kelly O. Norwood - Vice-President, State & Federal Regulation 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 naturalgas, to become effective as noted below. RATE:(a) The retail rates of firm gas Schedules 101 , 1 1 1 and 112 are to be increased by l4r424q per therm in all blocks of these rate schedules. (b)The rates of interruptible Schedules 131 and 132 are to be increased by e518+O 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'10'1 Schedules 111 and 112 g.o4g$ ?5,191Q 41,124# Schedules l3l and 132 The above amounts include a gross revenue factor. Demand Commodity Total Schedules l0l Schedules lll and 112 Schedules l3l and 132 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 April29,2022 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 CORPORATION d/b/a Avista Utilities SCHEDULE 150 - Continued Additional debits or credits for Pipeline refunds or charges, Pipeline capacity release revenues and miscellaneous revenues or expenses directly related to the Company's cost of purchasing gas to meet customer requirements will be recorded in the Balancing Account. Deferred gas costs will be determined for individual customers served under Schedules 112, 132 and 146, as well as for customers that switch to or from any of these service schedules to another schedule. The deferred gas cost balance for these customers will be based on monthly entries in the Balancing Account as described above. The defened gas cost balance for each customer will be eliminated by either, 1) a lump sum refund or surcharge, as applicable, or 2) an amortization rate per therm to reduce the balance prospectively. SPECIAL TERMS AND CONDITIONS: The rates named herein are subject to increases as set forth in Schedule 158. Effective January 1,2011lssued November 5, 2010 l.P.U.C. No.27 lssued by By Second Revision Sheet 150A Replacing First Revision Sheet 150A 150 Utilities Kelly O. Norwood - Vice-President, State & Federal Regulation AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 150 PURCHASE GAS COST ADJUSTMENT. IDAHO APPLICABLE: To Gustomers in the State of ldaho where Company has natural gas service available. PURPOSE: To pass through changes in costs resulting from purchasing and transporting naturalgas, to become effective as noted below. RATE:(a) The retail rates of firm gas Schedules 101, 111 and 112are to be increased by 44.308Q, per therm in all blocks of these rate schedules. (b) The rates of interruptible Schedules 131 and 132 are to be increased by 35.070f 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 9.238d, 35.070d 44.3086 Schedules 111 and 112 Schedules 131 and 132 9.238d,35 0'70,d.44 30,8,d. 0.000d 35.070d 35.070d The above amounts include a gross revenue factor. Demand Commodity9.198d 34.917A Total 44.1156Schedules 101 Schedules 111 and 112 Schedules 131 and 132 9.198d 34.9176 44.11500.000d 34.917d, 34.917d, 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 September2,2022 Effective November1,2022 l.P.U.C. No.27 Thirty-Second Revision Sheet 150 Replacing rst Revision Sheet 150Th 150 By Utilities Patrick Ehrbar - Director of Regulatory Affairs AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 150 - Continued Additional debits or credits for Pipeline refunds or charges, Pipeline capacity release revenues and miscellaneous revenues or expenses directly related to the Company's cost of purchasing gas to meet customer requirements will be recorded in the Balancing Account. Deferred gas costs will be determined for individual customers served under Schedules 112,132 and 146, as well as for customers that switch to or from any of these service schedules to another schedule. The deferred gas cost balance for these customers will be based on monthly entries in the Balancing Account as described above. The deferred gas cost balance for each customer will be eliminated by either, 1) a lump- sum refund or surcharge, as applicable, or 2) an amortization rate per therm to reduce the balance prospectively. SPECIAL TERMS AND CONDITIONS: The rates named herein are subject to increases as set forth in Schedule 158 Effective January 1,2011lssued November 5, 2010 l.P.U.C. No.27 Second Revision Sheet 150A Replacing First Revision Sheet 150A 150 by By Avista Utilities Kelly O. Norwood - Vice-President, State & Federal Regulation AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 155 GAS RATE ADJUSTMENT - IDAHO AVAILABLE: To Customers in the State of ldaho where Company has natural gas service available. PURPOSE: To adjust gas rates for amounts generated by the sources listed below. MONTHLY RATE:(a) The rates of firm gas Schedules 101 and 111 are to be increased by 13.163S per therm in all blocks of these rate schedules.(b) The rate of interruptible gas Schedule 131 is to be decreased by 0.0006 per therm.(c) The rate of transportation gas Schedule 146 is to be decreased by 0.0000 per therm. SOURCES OF MONTHLY RATE: Ghanges in the monthly rates above result from amounts which have been accumulated in the Purchase Gas Adjustment (PGA) Balancing Account as described in Schedule 150 - Purchase Gas Cost Adjustment. SPECIAL TERMS AND CONDITIONS: The above Monthly Rate is subject to the provisions of Tax Adjustment Schedule 158. lssued September2,2022 Effective November1,2022 l.P.U.C. No.27 lssued by By Twenty-Fourth Revision Sheet 155 Canceling Revision Sheet 155 155 Utilities Patrick Ehrbar, Director of Regulatory Affairs AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 155 GAS RATE ADJUSTMENT . IDAHO AVAILABLE: To Customers in the State of ldaho where Company has natural gas service available. PURPOSE: To adjust gas rates for amounts generated by the sources listed below. MONTHLY RATE:(a) The rates of firm gas Schedules 101 and 111 are to be increased by +5050 per therm in all blocks of these rate schedules.(b) The rate of intemrptible gas Schedule 131 is to be decreased by 0.0006 per therm.(c) The rate of transportation gas Schedule 146 is to be decreased by 0.0006 per therm. SOURCES OF MONTHLY RATE: Changes in the monthly rates above result ftom amounts which have been accumulated in the Purchase Gas Adjustment (PGA) Balancing Account as described in Schedule 150 - Purchase Gas Cost Adjustment. SPECIAL TERMS AND CONDITIONS: The above Monthly Rate is subject to the provisions of Tax Adjustment Schedule 158. Effective September1,2021lssued July 2,2021 l.P.U.C. No.27 Twenty-Third Revision Sheet 155 Canceling Second Revision Sheet 155 155 By Avista Utilities Patrick Ehrbar, Director of Regulatory Affairs AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 155 GAS RATE ADJUSTMENT - IDAHO AVAILABLE: To Customers in the State of ldaho where Company has natural gas service available. PURPOSE: To adjust gas rates for amounts generated by the sources listed below MONTHLY RATE:(a) The rates of firm gas Schedules 101 and 111 are to be increased by 13.1630 pertherm in all blocks of these rate schedules.(b) The rate of interruptible gas Schedule 131 is to be decreased by 0.0006 per therm.(c) The rate of transportation gas Schedule 146 is to be decreased by 0.0000 per therm. SOURCES OF MONTHLY RATE: Changes in the monthly rates above result from amounts which have been accumulated in the Purchase Gas Adjustment (PGA) Balancing Account as described in Schedule 150 - Purchase Gas Cost Adjustment. SPECIAL TERMS AND CONDITIONS: The above Monthly Rate is subject to the provisions of Tax Adjustment Schedule 158. lssued September2,2022 Effective November1,2022 l.P.U.C. No.27 Twenty-Fourth Revision Sheet 155 Canceling Revision Sheet 155 155 By Avista Utilities Patrick Ehrbar, Director of Regulatory Affairs AVISTA UTILITIES Case No. AVU-G-22-0L DC{IBIT O'B" Notice of Public Applicant's Proposed Tariffs Important Notice for Idaho Customers DRAFT (September 2022) 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 $13.8 million or 15.7o/o effective Nov. I , 2022. These filings have no impact on Avista's earnings. The first 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 the increase in wholesale natural gas costs that were higher than the level included in rates during the past year. If approved, Avista's request is designed to increase annual natural gas revenues by approximately $ 1 1.2 million or 12.7o/o. The second filing is the natural gas Energy Efficiency filing. The energy efficiency adjustment is related to the funding of Avista's natural gas energ/ efficiency programs. This adjustment aligns the amount that is collected in customer rates with the actual costs to run and deliver the programs. Avista's energy efficiency programs are designed to provide a financial incentive or rebate for cost-effective energy efficiency measures. The Commission approves the amount of funding for these important programs through a portion of energy rates. The rate increase proposed reflects the higher level of funding needed to operate the programs in the coming years. If approved, Avista's request is designed to increase natural gas revenues by approximately $2.6 million or 3.0%o. Customer Bills Natural Gas If the natural gas PGA and the Energy Efficiency filings are approved, residential natural gas customers in Idaho using an average of 63 therms per month would see their monthly bills increase from $61.30 to $70.52, an increase of $9.22 per month, or approximately l5.0Yo. The proposed natural gas rate changes would be effective Nov. 1, 2022. 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 I I I & I 12 Transportation Service - Schedule 146 Overall ts.0% 18.3% 0.0% 15.7% 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 (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 l/www to receive periodic updates via e-mail about the case. Copies of rate filings are also available on our website,www.myavi sta. 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 Avista offers a uumber 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 palment options, automated palment senrice, assistance programs, conservation tips, and enerry efficiency rebates. AVA544i AYISTA UTILMIES Case No. AVIJ-G-22-0 b DGIIBIT "C" Copy of Press Release and Customer Notice Gontact: Media: Casey Fielder (509) 495-4916 casev.fielder@avistacorp.com lnvestors: Stacey Wenz (509) 495-41 71, stacev.wenz@avistacoro.com Avista 2417 Media Access (509) 495-4174 Avista Makes Price Adjustment Requests in Washington and ldaho Overall changes in electric and naturalgas prices would be effective November 1, 2022 SPOKANE, Wash. September 2,2022,4:05 p.m. PST: Avista (NYSE: AVA) has made annual rate adjustment filings with the utility commissions in Washington and ldaho that, if approved, will result in an increase in electric and natural gas rates in Washington and natural gas rates in ldaho, effective November 1, 2022 Washington Electric Adjustment Filings Two electric adjustments were filed, that if approved, are designed to change overall electric revenues as follows: 1. Wildfire Expense Balancing: increase of approximately $5.1 million or 0.9%2. Residential Exchange Program: decrease of approximately $0.2 million or 0.1o/o Washington Natura! Gas Adjustment Filing The natural gas adjustment request is the annual natural gas Purchased Gas Cost Adjustment, lf approved, Avista's request is designed to increase overall naturalgas revenues by approximately $25.0 million or 12.3o/o. ldaho Natural Gas Adjustment Fitings Two natural gas adjustments were filed, that if approved, are designed to change overall natural gas revenues as follows:1. Purchased Gas Cost Adjustment: increase of approximately $1 1.2 million or 12.7o/o2. Natural Gas Energy Efficiency: increase of approximately $2.6 million or 3.0% Purchased Gas Cost Adjustment (PGA) - Washington and ldaho Natural Gas PGA requests are 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. 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. About 55% 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. This rate adjustment is driven primarily by higher wholesale natural gas prices. Since the last annual PGA filings were made in2021, the price of wholesale natural gas increased with dramatic sustained increases beginning in late March 2022, with prices reaching levels not seen in over 13 years. Wildfi re Balancing - Washington Electric The Wildfire Expense Balancing account tracks the difference in wildfire expenses incurred by Avista to address the growing frequency of extreme and dangerous wildfires in Avista's service territory to the base level of expense approved by the Commission. The difference is rebated to or collected from customers annually. The rate increase proposed today reflects the higher level of expense incurred above the approved amount. Residential Exchange Program - Washington Electric The ResidentialExchange Program provides a share of the benefits of the federalColumbia River power system to the residential and small farm customers of the investor-owned utilities in the Pacific Northwest, including Avista. Avista applies the benefits it receives, which typically fluctuate from year to year, to customers as a credit in their monthly electric rates. Due to fluctuations in usage, Avista rebated to customers a level of benefits that was slightly lower than the level of benefits received from BPA. Through this filing Avista is seeking to slightly increase the level of benefits provided to qualifying customers in order to return the under-rebated balance. Energy Efficiency Adjustment - ldaho Natura! Gas The energy efficiency adjustment is related to the funding of Avista's natural gas energy efficiency programs. This adjustment aligns the amount that is collected in customer rates with the actual costs to run and deliver the programs. Avista's energy efficiency programs are designed to provide a financial incentive or rebate for cost-effective energy efficiency measures. The Commission approves the amount of funding for these important programs through a portion of energy rates. The rate increase proposed reflects the higher level of funding needed to operate the programs in the coming years. Electric Customer Bills Washington: lf approved, residential glecfiig customers in Washington using an average of 932 kilowatt hours per month would see their monthly bills change from $85.07 to $85.87, an increase of $0.80 per month, or approximately 0.9%. lf approved, residential electric customers would see the following rate adjustments: Residential Service - Schedule 1 & 2 General Service - Schedules 11 & 12 Large GeneralService - Schedules 21 &22 Extra Large GeneralService - Schedule 25 &251 Pumping Service - Schedules 31 &32 Street & Area Lights - Schedules 4148 Overall 0.9% O.9o/o 0.9% 0.9% 0.9% 0.9% 0.9% Natural Gas Customer Bills Washington: lf approved, residential natural oas customers using an average of 67 therms per month would see their monthly bills change from $72.66 to $81.59, an increase of $8.93 per month, or approximately 12.3o/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 Large General Service - Schedule 111 & 112 lnterruptible Sales Service - Schedule 131 & 132 Transportation Service - Schedule 146 Overall 12.1o/o 14.4o/o 3.5o/o 0.0% 12.30/o ldaho: lf approved, residential natural oas customers using an average of 63 therms per month would see their monthly bills change from $61.30 to $70.52, an increase of $9.22 per month, or approximately 15.0%. 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 15.0o/o Large General Service - Schedule 111 & 112 18.3% lntenuptible Sales Service - Schedule 131 & 132 0.0% Transportation Service - Schedule 146 0.0%Overall 15.7o/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 leam more at www.mvavista.com. About Avista Gorp. 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 408,000 customers and natural gas to 375,000 customers. Our service territory covers 30,000 square miles in eastem Washington, northern ldaho and parts of southern and eastern Oregon, with a population of 1.7 million. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 17,000 customers in the city and borough of Juneau, Alaska. Our 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 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 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, and its Annual Report on Form 1 0-K for the year ended Dec. 31 , 2021. Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation. SOURCE: Avista Corporation -2226- To unsubscribe fiom Avista's news release distribution, send a reply message to lena.fu nston@avistacorp.com .iiststa Important Notice for Idaho Customers DRAFT (September 2022) 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 $13.8 million or 15.7o/o effective Nov. l, 2022.These filings have no impact on Avista's eamings. The lirst adjustrnent 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 the increase in wholesale natural gas costs that were higher than the level included in rates during the past year. If approved, Avista's request is designed to increase annual natural gas revenues by approximately $l1.2 million or l23Yu The second filing is the natural gas Energy Efficiency frling. The energy efficiency adjustment is related to the funding of Avista's natural gas enerry effrciency programs. This adjustment aligns the amount that is collected in customer rates with the actual costs to run and deliver the programs. Avista's energy efficiency programs are designed to provide a financial incentive or rebate for cost-effective energy efficiency measures. The Commission approves the amount of funding for these important programs through a portion of energy rates. The rate increase proposed reflects the higher level of funding needed to operate the programs in the coming years. If approved, Avista's request is designed to increase natural gas revenues by approximately $2.6 million or 3.0%o. Customer Bills Natural Gas If the natural gas PGA and the Energy Efficiency filings are approved, residential natural gas customers in Idaho using an average of 63 therms per month would see their monthly bills increase from $61.30 to $70.52, an increase of $9.22 per month, or approximately 15.0%o. The proposed natural gas rate changes would be effective Nov. l, 2022. 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 ll1 & ll2 Transportation Service - Schedule 146 Overall 15.0% 183% 0.0% 15.7% 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 (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 (http://www.puc.idaho.sovirssfeeds/rss.htm) to receive periodic updates via e-mail about the case. Copies of rate frlings are also available on our website, www.rnyavista.conr/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 Avista offers a ntrmber of programs and se,ndces to help custom€rs manage their energy use and costs. Visit www.myavista.com for information on these prograflN which include Comfort Level Billing, bill paynent options, automated payment se,nrice, assistance programs, consenration tips, and energy efficiency rebates. AVASrt4i