Avista Makes Annual Price Adjustment Requests in Washington
Washington Natural Gas Adjustment Filings
Four natural gas adjustments were filed, that if approved, are designed to change overall natural gas revenues as follows:
- Purchased Gas Cost Adjustment: decrease of
$74.5 million or 24.6% - Climate Commitment Act: increase of
$25.2 million or 8.3% Low Income Rate Assistance Program : increase of$6.8 million or 2.3%- Insurance Expense Balancing: increase of
$0.2 million or 0.1%
Washington Electric Adjustment Filings
Five electric adjustments were filed, that if approved, are designed to change overall electric revenues as follows:
- Wildfire Expense Balancing: increase of
$1.4 million or 0.2% - Residential Exchange Program: decrease of
$0.7 million or 0.1% - Insurance Expense Balancing: increase of
$4.6 million or 0.7% - Clean Energy Implementation Plan: increase of
$2.1 million or 0.3% Low Income Rate Assistance Program : increase of$15.3 million or 2.3%
Purchased Gas Cost Adjustment (PGA) – Applicable to
PGA requests are 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.
The proposed PGA reduction is largely driven due in part to a reduction in the wholesale cost of natural gas, as well as the reduction in a surcharge put into place last year to recover costs included in our
Climate Commitment Act – Applicable to
The CCA, passed by the
Insurance Balancing Account – Applicable to
The Insurance Expense Balancing account tracks the difference in insurance expense incurred by Avista to the base level of expense approved by the Commission in customer rates. The difference is rebated to, or collected from, customers annually. The rate changes proposed reflect the higher level of expense incurred for electric customers and lower expense incurred for natural gas customers, compared to the approved amount.
Wildfire Balancing Account – Applicable to
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 – Applicable to
The Residential Exchange Program provides a share of the benefits of the federal
Clean Energy Implementation Plan – Applicable to
Avista’s Clean Energy Implementation Plan (CEIP) tariff recovers the costs associated with our clean energy transition. These costs include a “Named Communities Investment Fund” (NCIF), which helps assist with the equitable distribution of CEIP energy and non-energy benefits and reduction in burdens to Vulnerable Populations and Highly Impacted Communities (Named Communities). In addition to the NCIF, this tariff recovers the costs for additional resources necessary for implementation of Avista’s CEIP and associated conditions to the CEIP.
Effect on Customer Bills
Natural Gas Customer Bills
The percentage change varies by rate schedule and is dependent upon how much energy customers on the respective rate schedules use. If approved, natural gas customers would see the following rate adjustments:
| General Service - Schedule 101 | (14.2)% | ||
| Large General Service - Schedules 111 & 112 | (18.6)% | ||
| Interruptible Sales Service - Schedules 131 & 132 | 7.9% | ||
| Transportation Service - Schedule 146 | 61.8% | ||
| Overall | (13.9)% | ||
Customers served on Transportation Service Schedule 146 procure their own wholesale natural gas and interstate pipeline transportation service. As such, those customers do not receive the effects of the reduction due to the PGA.
Electric Customer Bills
The percentage change varies by rate schedule and is dependent upon how much energy customers on the respective rate schedules use. If approved, residential electric customers would see the following rate adjustments:
| Residential Service - Schedules 1, 7 & 8 | 3.6% | ||
| General Service - Schedules 11, 12, 13, 17 & 18 | 3.4% | ||
| Large General Service - Schedules 21, 22 & 23 | 3.7% | ||
| Extra Large General Service - Schedules 25 & 25I | 2.5% | ||
| Pumping Service - Schedules 31 & 32 | 4.1% | ||
| Street & Area Lights - Schedules 41-48 | 4.6% | ||
| Overall | 3.5% | ||
Customer Resources
When customers need help with their energy use and billing, Avista has ways to assist. In Washington, Avista recently launched My Energy Discount, a personalized monthly bill discount program to help eligible customers lower their energy bills. The program offers more inclusive eligibility guidelines, quick and easy enrollment, and a two-year discount term. In addition, billing options, such as Comfort Level Billing, preferred due date, and payment arrangements, give customers more control over how their energy costs are spread out.
For help with managing energy usage, Avista’s Energy Manager and home energy audit tools, as well as energy-saving tips, videos and money-saving rebates for energy-efficient upgrades, are available. In addition, Avista provides local community action agencies with funding for eligible customers who need emergency grants, home weatherization and heating system improvements. Customers with special health or financial circumstances can also work directly with our Customer Assistance Referral and Evaluation Services (CARES) team to be connected with resources for help with housing, other utilities, medical assistance, and more. For more information on assistance options, customers can visit www.myavista.com/assistance.
About
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 and the Quarterly Report on Form 10-Q for the quarter ended
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