Requests would result in change in electric prices effective Oct. 1, 2019
SPOKANE, Wash., July 30, 2019 (GLOBE NEWSWIRE) -- Avista(NYSE: AVA) has made annual rate adjustment filings with the Idaho Public Utilities Commission (IPUC or Commission) that if approved, are designed to increase overall electric revenues by approximately $4.2 million or 1.7% effective Oct. 1, 2019. These annual filings have no impact on Avista’s earnings, and are not related to the general rate case filed in June 2019.
Power Cost Adjustment (PCA)
The first adjustment is Avista’s annual Power Cost Adjustment (PCA). The PCA is an annual rate adjustment made to reflect certain differences between Avista’s actual cost of generating and purchasing electric power to serve customers and the cost currently included in customer rates. It is a true-up to reflect the actual cost of power to serve customers.
The proposed PCA rate adjustment would rebate to customers approximately $1.7 million effective Oct. 1, 2019. The rebate is primarily associated with power supply costs that were lower than those included in retail rates, due to lower wholesale electric and natural gas prices. As a result of Avista’s PCA filing last year, the Commission approved a rebate of approximately $9.8 million. That rebate will end Sept. 30, 2019. The net effect of the expiring rebate, and the proposed rebate, is an overall increase in revenue of approximately $8.1 million, or 3.3%.
Residential Exchange Program
The second adjustment is related to the Bonneville Power Administration (BPA) Residential Exchange Program. The Residential Exchange Program provides a share of the benefits of the federal Columbia 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. The benefit Avista will receive from BPA starting in October 2019 will result in a higher level of benefits than is currently being passed through to qualifying customers. As a result, the proposed revenue decrease for these customers is approximately $3.9 million, or 1.6%.
Customer Bills Resulting from these Filings
If both of the filings are approved, residential electric customers in Idaho using an average of 898 kilowatt hours per month would see their monthly bills decrease from $82.57 to $82.12, a decrease of $0.45 per month, or approximately 0.5%. The proposed electric rate changes would be effective Oct. 1, 2019.
The requested electric rate changes by rate schedule are as follows:
|Residential Service - Schedule 1
|General Service - Schedules 11 & 12
|Large General Service - Schedules 21 & 22
|Extra Large General Service - Schedule 25
|Extra Large General Service - Schedule 25P
|Pumping Service - Schedules 31 & 32
|Street & Area Lights - Schedules 41-49
Customer Bills Resulting from all Annual Electric Adjustments
In addition to the filings discussed above, Avista previously made its annual Fixed Cost Adjustment (FCA) filing on June 28, 2019 with the same proposed effective date of Oct. 1, 2019. If the FCA, PCA and Residential Exchange filings are approved, residential electric customers in Idaho using an average of 898 kilowatt hours per month would see their monthly bills increase from $82.57 to $85.12, an increase of $2.55 per month, or approximately 3.1%. The proposed electric rate changes would be effective Oct. 1, 2019.
Rate Application Procedure
Avista’s applications are proposals, subject to public review and a Commission decision. Copies of the applications are available for public review at the offices of both the Commission and Avista, and on the Commission’s website (www.puc.idaho.gov). Customers may file with the Commission written comments related to Avista’s filings. Customers may also subscribe to the Commission’s RSS feed (http://www.puc.idaho.gov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the case. Copies of rate filings are also available on Avista’s website at www.myavista.com/rates.
If you would like to submit comments on the proposed increase, 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 our operating division that provides electric service to 395,000 customers and natural gas to 362,000 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, 2018 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2019.
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