Avista to Challenge Costly Conditions on Coeur d'Alene
August 17 2006 - 8:15PM
PR Newswire (US)
Proposed Conditions Are Unreasonable and Burdensome to Customers
SPOKANE, Wash., Aug. 17 /PRNewswire-FirstCall/ -- Avista (NYSE:AVA)
has requested a hearing with the U.S. Department of Interior (DOI)
to challenge proposed mandatory conditions for relicensing Post
Falls Dam. Avista believes that the conditions are unreasonable and
burdensome for customers. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040128/SFW031LOGO ) DOI filed
preliminary mandatory conditions for the Post Falls Project with
the Federal Energy Regulatory Commission (FERC) on July 18, 2006.
The mandatory conditions would apply to the portion of the project
on the Coeur d'Alene Indian Reservation. DOI also proposed a number
of recommended conditions for measures that extend beyond the Coeur
d'Alene Indian Reservation. Avista contends that DOI's conditions
are not supported by the facts. DOI claims that operating the Post
Falls Dam to maintain summer levels on Lake Coeur d'Alene has
seriously harmed the environment and Avista disagrees. Avista's
license for Post Falls and four other Spokane River dams expires in
August 2007. The company has been engaged in a multi-year
collaborative process with stakeholders to develop reasonable terms
and conditions for a new license. DOI has submitted conditions that
go well beyond what was proposed by Avista in its July 2005 license
application to FERC. "We believe that our license application
represents a reasonable and effective package that addresses the
impacts of our Post Falls Hydroelectric Project and enhances
resources associated with Coeur d'Alene Lake and the Spokane
River," said Bruce Howard, Avista's Spokane River license manager.
"The additional conditions from DOI ask us to deal with issues that
are not caused by the operation of the dam." For example, added
Howard, a number of the conditions are based on DOI's view that
operating the Post Falls Project to maintain summer Lake levels has
significantly harmed cutthroat trout and mountain white fish.
"Based on that assumption, DOI seeks to require Avista to restore
habitat on streams where the Post Falls Project has no adverse
impact." Avista estimates that the cost of the proposed mandatory
and recommended conditions, coupled with the proposals in Avista's
license application, could total as much as $400-500 million over
the life of a 50-year license. Typically, new license costs are
ultimately borne by customers through rate increases. The
trial-type hearing process is a relatively new procedure created by
the Energy Policy Act of 2005 and the hearing will focus on whether
DOI's conditions are supported by the facts. Avista hopes to
resolve these issues through this process and be able to continue
Post Falls operations, including maintaining summer Lake levels,
with reasonable terms and conditions. Avista has also filed
proposed alternative mandatory conditions with the DOI. These
alternatives are based on Avista's evaluation of the impacts of the
Post Falls Project on the Coeur d'Alene Indian Reservation. They
provide a more cost-effective alternative to addressing the
concerns raised by DOI. This filing is also based on the provisions
of the Energy Policy Act of 2005. 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 a
company operating division that provides service to 339,000
electric and 298,000 natural gas customers in three Western states.
Avista's non-regulated subsidiaries include Advantage IQ and Avista
Energy. Avista Corp.'s stock is traded under the ticker symbol
"AVA." For more information about Avista, please visit
http://www.avistacorp.com/. NOTE: Avista Corp. and the Avista Corp.
logo are trademarks of Avista Corporation. This news release
contains forward-looking statements, including statements regarding
the estimated costs of proposed mandatory and recommended
conditions for relicensing the Post Falls Hydroelectric Project.
Such statements are subject to a variety of risks, uncertainties
and other factors, most of which are beyond the company's control,
and many of which could have a significant impact on the company's
operations, results of operations and financial condition, and
could cause actual results to differ materially from those
anticipated. For a further discussion of these factors and other
important factors, please refer to the company's Annual Report on
Form 10-K for the year ended Dec. 31, 2005 and Quarterly Report on
Form 10-Q for the quarter ended June 30, 2006. The forward-looking
statements contained in this news release speak only as of the date
hereof. The company undertakes no obligation to update any
forward-looking statement or statements to reflect events or
circumstances that occur after the date on which such statement is
made or to reflect the occurrence of unanticipated events. New
factors emerge from time to time, and it is not possible for
management to predict all of such factors, nor can it assess the
impact of each such factor on the company's business or the extent
to which any such factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statement.
http://www.newscom.com/cgi-bin/prnh/20040128/SFW031LOGO
http://photoarchive.ap.org/ DATASOURCE: Avista Corp. CONTACT: Hugh
Imhof, +1-509-495-4264, or , or Avista 24/7 Media Access,
+1-509-495-4174, both of Avista Corp. Web site:
http://www.avistacorp.com/
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