Avista Reduces Original Rate Requests in Response to Lower Natural Gas Prices
September 29 2006 - 9:30AM
PR Newswire (US)
Avista Proposes Increased Funding in Washington for Natural Gas
Conservation SPOKANE, Wash., Sept. 29 /PRNewswire-FirstCall/ --
Avista (NYSE:AVA) today filed revised purchased gas cost
adjustments (PGAs) with the Idaho and Washington utility
commissions that would result in an overall natural gas price
decrease of 2 percent in Idaho, and a price increase of 2.5 percent
in Washington. Avista's filings propose an effective date of Nov.
1, 2006, in both states. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040128/SFW031LOGO )
Previously, Avista had requested to increase natural gas rates by
8.1 percent in Washington, and by 3.2 percent in Idaho. Since that
time, natural gas prices have fallen substantially, and Avista has
been able to purchase some of this lower-cost natural gas and
reduce its original requests. The price for natural gas is
extremely volatile and fluctuates daily based on supply and demand.
Because of this volatility, Avista purchases natural gas at fixed
prices throughout the year for future delivery to serve customers'
needs for the coming year. Avista had purchased over half of this
estimated need prior to September; however, it was able to purchase
additional natural gas during September at lower prices, resulting
in these revised filings. Avista is also requesting an increase to
rates to fund natural gas conservation programs in Washington. This
request represents about half of the proposed 2.5 percent increase
and would generate an additional $2.3 million per year to fund
these programs. These programs, in place since 2001, provide for
partial financial reimbursement to customers who install certain
conservation measures and use less natural gas as a result. To
date, theses programs have saved 4.5 million annual therms of
natural gas, that's enough natural gas to supply 5,300 homes for a
year. A similar request to increase funding for natural gas
conservation is pending in Idaho. Even with this pending increase,
Idaho customers would still see a decrease of about 2 percent. If
approved by the respective utility commissions, an Idaho customer
using an average of 70 therms per month can expect to see an
average decrease of $1.76 per month for a total monthly bill of
$84.60. A Washington customer using an average of 70 therms of
natural gas per month can expect to see an average increase of
$2.16 per month for a total monthly bill of $88.81. These requests
are subject to review by the respective state utility commissions.
Copies of these requests are available for review in Avista's local
offices and at the offices of the Washington Utilities and
Transportation Commission and the Idaho Public Utilities
Commission. Avista encourages the wise and efficient use of energy.
For information and tips on Avista's energy assistance programs,
conservation tips and bill payment plans, visit
http://www.avistautilities.com/ , or call Avista at (800) 227-9187.
Avista 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 Avista Advantage 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
expected rates, costs and demand for natural gas. 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 Corporation CONTACT:
Media, Catherine Markson, +1-509-495-2916, or , or Investors, Jason
Lang, +1-509-495-2930, or , both of Avista Corporation; or Avista
24/7 Media Access, +1-509-495-4174 Web site:
http://www.avistacorp.com/
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