20230201Customer Notice and Press Release.pdf

Contact: DRAFT CONFIDENTIAL
Media: Casey Fielder [phone] [e-mail]
Investors: Stacey Wenz [phone] [e-mail]
Avista 24/7 Media Access [phone]

Avista files multiyear electric and natural gas rate plan in Idaho
Company seeks to recover costs for ongoing infrastructure investments and increased operating costs

SPOKANE, Wash. – Feb. 1, 2023, 1:05 p.m. PDT: Today, Avista (NYSE: AVA) has filed a
multiyear rate plan with the Idaho Public Utilities Commission (IPUC or Commission) that would
allow the Company to recover costs for fixed expenses and ongoing investments to
infrastructure, technology and more. If approved, new rates would be effective in Sept. 2023
and Sept. 2024.

“As an energy provider, we understand we play a vital role in the daily lives of those we serve,
and we take this responsibility seriously,” said Avista president and CEO Dennis Vermillion. “As
costs for goods and services have gone up across the board, we recognize how challenging
increases in energy prices can be for our customers. We work hard to make decisions that will
help keep these costs affordable, because we know this matters to all of our customers.”

“Part of the responsibility of providing an essential service is to make sure customers have
energy when they need it. This means that we must continue to make important and necessary
investments to the infrastructure that serves our customers such as replacing wood distribution
poles and aging natural gas pipelines, making our system more resilient to the threat of wildfires
and storms, upgrading customer-facing technology and substations, and much more. We’ve
made these investments on behalf of our customers because it’s the right thing to do.

“There are also new pressures causing costs to go up for all companies and industries. Supply
chain constraints, inflation and increasing interest rates are contributing to a challenging
operating environment, making it more difficult to control costs. In just the last year, we’ve seen
the costs of basic utility equipment such as transformers and electric poles increase in the range
of 15-54%. Avista is not unique in this regard.

“We continue to aggressively manage costs to achieve the appropriate balance of providing
safe and reliable service at cost-effective rates, along with a high level of customer satisfaction,
while preserving the financial health of the utility. We are focused on long-term sustainable
savings to continuously improve our service to customers and manage costs into the future.

“The ongoing effort to align the rates customers pay with Avista’s costs to serve is one of the
main reasons we file general rate requests. It’s important for the health of the company and an
essential part of providing safe and reliable energy.” Vermillion said.

Avista’s Requests
The proposal is a two-year rate plan, with new rates taking effect in Sept. 2023 and Sept. 2024.
This plan would create a stay out period where Avista would not file a new general rate case for

new rates to be effective prior to Sept. 2024. This would provide customers with some
predictability in their expected future energy prices.

If approved, the electric general rate request is designed to increase annual base revenues by
$37.5 million (or 14.7% on a billed basis) effective in Sept. 1, 2023, and $13.2 million (or 4.5%
on a billed basis) effective in Sept. 1, 2024.

If approved, the natural gas general rate request is designed to increase annual revenues by
$2.8 million (or 2.7% on a billed basis) effective in Sept. 1, 2023, and $0.1 million (or 0.1% on a
billed basis) effective in Sept. 1, 2024.

The electric and natural gas requests are based on a proposed rate of return (ROR) of 7.59%,
with a common equity ratio (CER) of 50%, and a 10.25% return on equity (ROE).

Infrastructure Investments
Avista needs to continue to replace infrastructure that has reached the end of its useful life, as
well as respond to the need for reliability and technology investments required to build the
integrated energy services grid that will take us into the future. Among the projects included in
today’s filing are:
• Ongoing management, inspection and replacement of 240,000 electric distribution wood
poles through Avista’s wood pole management program to ensure poles and the
equipment on them support the company’s ability to provide customers with safe and
reliable power.
• Continued investment in Avista’s Wildfire Resiliency Plan, which outlines substantial
steps that Avista has taken to guard against the growing threat of wildfires including grid
hardening, enhanced vegetation management, and other industry-leading best practice
measures.
• The ongoing project to systematically replace portions of natural gas distribution pipe in
Avista’s service area that were installed prior to 1987, as well as replacement of other
natural gas service equipment to strengthen the integrity, safety, and reliability of the
system.
• Technology upgrades that support necessary business processes and operational
efficiencies that allow Avista to effectively manage the utility and serve customers.

Idaho Residential Customer Bills
Since Jan. 2016, overall average electricity prices have remained flat and natural gas prices
have increased 3.8% per year.

Electric
Effective Sept. 2023: Residential electric customers in Idaho using an average of 927 kilowatt
hours per month could expect to see a total billed increase of 15.4% or $13.18 for a revised
monthly bill of $98.58 from $85.40. The proposed monthly increase includes an $8 per month
proposed increase in the basic charge to a level of $15.00 per month.

Effective Sept. 2024: Residential electric customers in Idaho using an average of 927 kilowatt
hours per month could expect to see a total billed increase of 4.7% or $4.66 for a revised
monthly bill of $103.24 from $98.58. The proposed monthly increase includes a $5 per month
proposed increase in the basic charge to a level of $20.00 per month, offset by a slight
decrease in the volumetric per-kWh rate.

Natural gas
Effective Sept. 2023: Residential natural gas customers in Idaho using an average of 64 therms
per month could expect to see a total billed increase of 3.5% or $2.60 for a revised monthly bill
of $76.02 from $73.42. The proposed monthly increase includes an $8 per month proposed
increase in the basic charge to a level of $15.00 a month, offset by a decrease in the volumetric,
per-therm rate.

Effective Sept. 2024: Residential natural gas customers in Idaho using an average of 64 therms
per month could expect to see a total billed increase of 0.2% or $0.14 for a revised monthly bill
of $76.16 from $76.02. The proposed monthly increase includes a $5 per month proposed
increase in the basic charge to a level of $20.00 a month, offset by a decrease in the volumetric,
per-therm rate.

Proposed Changes by Service Schedule
The requested electric increase by service schedule is as follows:
Rate Schedule Sept. 2023
Billing Increase
Sept. 2024
Billing Increase
Residential Service – Schedule 1 15.3% 4.7%
General Service - Schedules 11/12 14.2% 4.4%
Large General Service - Schedules 21/22 14.1% 4.3%
Extra Large General Service - Schedule 25 14.2% 4.4%
Extra Large General Service - Schedule 25P 14.0% 4.3%
Pumping Service - Schedules 31/32 14.2% 4.4%
Street & Area Lights - Schedules 41 – 49 13.8% 4.2%
Total 14.7% 4.5%

The requested natural gas increase by service schedule is as follows:
Rate Schedule Sept. 2023
Billing Increase
Sept. 2024
Billing Increase
General Service Schedule 101 3.5% 0.1%
Large General Service Schedules 111/112 0.0% 0.0%
Interrupt. Sales Service Schedules 131/132 0.0% 0.0%
Transportation Service Schedule 146 0.0% 0.0%
Total 2.7% 0.1%

The actual percentage increase for electric and natural gas customers will vary by customer rate
group and depend on how much energy a customer uses.

Customer Resources
To assist customers in managing their energy bills, Avista offers services for customers such as
comfort level billing, payment arrangements and Customer Assistance Referral and Evaluation
Services (CARES), which provide assistance to special-needs customers through referrals to
area agencies and churches for help with housing, utilities, medical assistance and other
needs. Avista also provides funding for energy assistance programs Project Share and the
company’s LIRAP, which are administered through community action agencies.

Avista provides energy efficiency and outreach programs that 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.myavista.com.

Rate Application Procedure and Additional Information
Avista’s application is a proposal, 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 filing. Customers may also subscribe
to the Commission’s RSS feed (https://puc.idaho.gov/RssPage) to receive periodic updates via
e-mail about the case. Copies of the rate filing is also available on our website,
www.myavista.com/rates.

The Commission will begin a comprehensive review of Avista’s application and will seek public
input. If you would like to submit comments on the proposed increase (Case No. AVU-E-23-01
and AVU-G-23-01), 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

About Avista Corp.
Avista Corp. is an energy company involved in the production, transmission, and distribution of
energy as well as other energy-related businesses. Avista Utilities is the operating division that
provides electric service to 403,000 customers and natural gas to 369,000 customers. Its
service territory covers 30,000 square miles in eastern Washington, northern Idaho, 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 Light and Power Company. Avista stock
is traded under the ticker symbol "AVA." For more information about Avista, please visit
www.avistacorp.com.

This news release contains forward-looking statements regarding the company’s current
expectations. Forward-looking statements are all statements other than historical facts. Such
statements speak only as of the date of the news release and are subject to a variety of risks
and uncertainties, many of which are beyond the company’s control, which could cause actual
results to differ materially from the expectations. These risks and uncertainties include, in
addition to those discussed herein, all of the factors discussed in the company’s Annual Report
on Form 10-K for the year ended Dec. 31, 2021 and the Quarterly Report on Form 10-Q for the
quarter ended September 30, 2022.

SOURCE: Avista Corporation
-230X-

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Important Notice for Idaho Electric and Natural Gas Customers DRAFT

On February 1, 2023, Avista filed an application with the Idaho Public Utilities Commission (Commission) to
change Idaho electric and natural gas rates. These requests are primarily driven by ongoing capital investments
that maintain and upgrade our infrastructure to meet customer expectations and continue to provide safe and
reliable service to our customers.

The proposal is a two-year rate plan which would increase electric revenues by $37.5 million or 14.7% effective
Sept. 1, 2023, and by $13.2 million or 4.5% effective Sept. 1, 2024. The request would increase natural gas
revenues by $2.8 million or 2.7% effective Sept. 1, 2023, and by $0.1 million or 0.1% effective Sept. 1, 2024.

More information on the requested price change is available at www.myavista.com/IDraterequests. The proposed
change above current billing rates by service schedule is as follows:

Electric
The proposed increase above current billing rates by service schedule is as follows:
Rate Schedule Proposed 2023
Billing Change
Proposed 2024
Billing Change
Residential Service - Schedule 1 15.3% 4.7%
General Service - Schedules 11 & 12 14.2% 4.4%
Large General Service - Schedules 21 & 22 14.1% 4.3%
Extra Large General Service - Schedule 25 14.2% 4.4%
Extra Large General Service - Schedule 25P 14.0% 4.3%
Pumping Service - Schedules 31 & 32 14.2% 4.4%
Street & Area Lights - Schedules 41 – 49 13.8% 4.2%
Total 14.7% 4.5%

Residential Customer Bills - Electric
Effective Sept. 1, 2023, residential customers using an average of 927 kilowatt hours per month would see their
monthly bills increase from $85.40 to $98.58, an increase of $13.18 or 15.4% per month. Included in that bill
change is a proposed increase in the basic monthly charge of $8.00, to a level of $15.00 per month.
Effective Sept. 1, 2024, residential customers using an average of 927 kilowatt hours per month would see their
monthly bills increase from $98.58 to $103.24, an increase of $4.66 or 4.7% per month. Included in that bill
change is a proposed increase in the basic monthly charge of $5.00, to a level of $20.00 per month, offset by a
slight decrease in the volumetric, per-kWh rate.

Natural Gas
The proposed change above current billing rates by service schedule is as follows:
Rate Schedule Proposed 2023
Billing Change
Proposed 2024
Billing Change
General Service - Schedule 101 3.5% 0.1%
Large General Service - Schedules 111 & 112 0.0% 0.0%
Transportation Service - Schedule 146 0.0% 0.0%
Total 2.7% 0.1%

Residential Customer Bills – Natural Gas
Effective Sept. 1, 2023, residential customers using an average of 64 therms per month would see their monthly
bills increase by $2.60, from $73.42 to $76.02 or 3.5%. Included in that bill change is a proposed increase in the
basic monthly charge of $8.00, to a level of $15.00 per month, offset by a decrease in the volumetric, per-therm
rate.
Effective Sept. 1, 2024, residential customers using an average of 64 therms per month would see their monthly
bills increase from $76.02 to $76.16, an increase of $0.14 or 0.2% per month. Included in that bill change is a
proposed increase in the basic monthly charge of $5.00, to a level of $20.00 per month, offset by a decrease in the
volumetric, per-therm rate.

The actual percentage increase for electrical and natural gas customers will vary by customer rate group and
depend on how much energy a customer uses.

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
(http://www.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.

The Commission has up to nine months to review the Company’s rate increase requests. The Commission will
begin a comprehensive review of Avista’s application and will seek public input.

If you would like to submit comments on the proposed rate changes (Case No. AVU-E-23-01 & AVU-G-23-01),
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 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.
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