Avista disappointed by Washington Commission’s decision in Power Cost Rate Adjustment filing
August 11 2017 - 6:30PM
Avista’s (NYSE:AVA) Power Cost Rate Adjustment (PCRA) filing was
dismissed yesterday by the Washington Utilities and Transportation
Commission (Commission or UTC). The PCRA filed by Avista on May 26,
2017 proposed an annual electric revenue increase of $15 million or
2.9 percent, effective Sept. 1, 2017. This filing was separate from
the electric and natural gas general rate cases also filed on May
26, 2017.
This filing was made following meetings with Commissioners,
Commission Staff and other parties involved in ratemaking
proceedings, and was designed to be a starting point to get cost
recovery back on track for Avista’s Washington electric operations.
The UTC’s order in December 2016 provided no revenue increase for
2017, which has resulted in the electric rate increase request of
12.5 percent in Avista’s pending general rate case in Washington to
be higher than it otherwise would have been. The proposed PCRA
increase was designed to make incremental progress with a 2.9
percent increase to customers Sept. 1, 2017, and a second-step
increase effective at the conclusion of the general rate case on or
around April 26, 2018.
“We are very disappointed in the Commission’s decision,” said
Scott Morris, Avista’s Chairman, President and CEO. “The increased
costs included in the PCRA were known changes in power costs, which
have generally been less controversial in prior regulatory
proceedings. The PCRA was an opportunity to begin to get retail
rates back on track for customers, as well as provide some
incremental improvement in earnings for the Company.”
Avista’s power supply costs, on a normalized basis, are much
higher than those built into base retail rates, and a revenue
increase is needed to recover these increased costs on a
going-forward basis. These increased costs are included in Avista’s
pending general rate case in Washington, which is scheduled to be
concluded by April 26, 2018.
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 378,000 customers and natural gas to 342,000 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, 2016 and the Quarterly Report on Form 10-Q for the
quarter ended June 30, 2017.
Contact:
Media: Casey Fielder (509) 495-4916, casey.fielder@avistacorp.com
Investors: Jason Lang (509) 495-2930, jason.lang@avistacorp.com
Avista 24/7 Media Access (509) 495-4174
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