Avista Reaches Settlement to Extend Current Rate Plan in Idaho
Details leading to the settlement agreement
The settlement agreement comes after discussions regarding Avista's retail rates in
March 24, 2014, Avista filed a notice with the IPUC that the Company intended to file a combined electric and natural gas general rate case on or after June 2, 2014.
- Subsequently the Company had informal discussions with all parties to Avista's last general rate case regarding a possible one-year extension of the existing rate plan from
Jan. 1, 2015to Jan. 1, 2016.
- Avista made a request to the Commission on
May 30, 2014to initiate settlement discussions.
- The Commission issued an order on
June 11, 2014, which, among other things, set a settlement conference for June 25, 2014.
- The Parties subsequently entered into a settlement stipulation, including terms and conditions for a one-year extension of the current rate plan, from
Jan. 1, 2015to Jan. 1, 2016.
Details of the settlement agreement
The proposed settlement would provide an estimated
- delay of the beginning of the amortization of previously deferred operations and maintenance costs pertaining to the Colstrip and Coyote Springs 2 thermal generating facilities from 2015 to 2016 and
- deferred accounting, for later review and recovery, of the majority of the costs associated with the planned completion of Project Compass in the first quarter of 2015. Project Compass involves the replacement of Avista's customer information system, which includes, among other things, meter reading, customer billing, and work management.
The settlement agreement establishes a return on equity (ROE) deadband between the currently authorized ROE of 9.8 percent and a 9.5 percent ROE. Under the settlement agreement, Avista would be allowed to use any 2014 Idaho earnings test deferral to support an actual earned ROE in 2015 up to a 9.5 percent ROE. The 2014 earnings test provides that if Avista's actual earned ROE in 2014 for
As part of the settlement, Avista agrees to not file a general rate case in 2014, and would file no earlier than
"Our customers will benefit from the stability in their energy rates this proposed settlement provides. It is a positive outcome for our customers as well as the company and our shareholders," said
Avista serves 125,000 electric and 77,000 natural gas customers in
Additional information about Avista's rates and the rate-making process is available online at www.avistautilities.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
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