20180615press release - avista.pdf

ldaho Public Utilities Commission
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Case No: GNR-U-18-01
Order No.34070
Contact: Matt Evans
(208) 3s4-0s3e
[phone]
www.puc.idaho.gov
Tax cuts lead to rate decrease for Avista customers
BOISE (|une 15,2018) - The Idaho Public Utilities Commission has approved a rate
decrease for Avista customers, reflecting the benefits of federal and state tax cuts.
The overall rate reduction is $13.7 million for electric customers and $2.6 million for
natural gas customers. It took effect fune 1.
For the average electric customer using 910 kilowatt-hours per month, that equates to a
decrease of $4.85 on the monthly bill, taking it from $93.34 to $88.49.
The average natural gas customer using 63 therms per month will see a bill reduction of
$2.24, taking it from $50.55 to $48.31.
The decreases are tied to the Tax Cuts and Jobs Act of 20t7 , which reduced the federal
corporate tax rate from 35 percent to 21 percent and, at the state level, House Bill 463,
which reduced Idaho's corporate tax rate from 7 .4 percent to 6.925 percent.
Since a utility's tax expenses are a factor in determining customer rates, the Commission
opened an investigation in fanuary aimed at determining whether rates and charges of
regulated utilities should be adjusted to reflect the new tax code.
The first step in the investigation was to order all regulated utilities to file a report by
March 30 that identified and quantified the impacts of the tax changes, and to include
proposed rate changes that reflect those impacts.
After filing its report, Avista began working with Commission staff and interested parties -
Clearwater Paper Corporation, Idaho Forest Group LLC and Idaho Conservation League - to
determine how to pass the tax benefits on to customers.
The Commission approved a settlement agreement that emerged from those efforts on May
31. It reduces electric rates by 5.3 percent and natural gas rates by 6.1 percent.
The Commission's order also calls for a temporary tax benefit of $11.98 million to offset
costs associated with the accelerated depreciation of two units at the Colstrip coal-fired
plant in Montana, pending Commission approval in a separate case, and for a temporary tax
benefit reduction of $544,000 to be reflected in the Purchased Gas Adjustment effective
Nov. 1,20LB.
To review the Commission's order, the settlement agreement or other documents filed in
this case, including those of other regulated utilities, go here. 0r go to www.puc.idaho.gov
and click on "Open Cases" under the "Multi-Utility" heading and click on GNR-U-18-01.