Avista Makes Two Annual Price Adjustment Requests in Idaho
August 15 2011 - 4:05PM
Marketwired
Avista (NYSE: AVA) customers could receive a decrease in their
electric prices and a slight increase in natural gas prices on Oct.
1 if the Idaho Public Utilities Commission (IPUC) approves two
annual price adjustment requests filed today by the company -
Residential Exchange Credit and Purchase Gas Cost Adjustment.
Electric Residential and small-farm
customers using an average of 956 kilowatt-hours per month could
receive a $1.77, or 2.11 percent, decrease in their monthly
electric bill due to an increase in benefits to be received from
the Bonneville Power Administration's (BPA) Residential Exchange
Credit program. The Residential Exchange Credit is paid in its
entirety to Avista's approximately 106,000 residential and
small-farm electric customers in Idaho and has no impact on company
earnings.
The increase in benefits is the result of a recent settlement
agreement signed by BPA that resolves a long-standing dispute over
how the benefits of low-cost hydroelectric power from the federal
Columbia River power system are shared by the region's electric
customers. All six investor-owned and nearly all consumer-owned
utilities, representing over 95 percent of the region's electric
customers, are parties to the settlement.
Under the settlement agreement, Avista residential and
small-farm customers in Idaho will receive approximately $4.4
million in benefits, up from the current $1.8 million customers are
currently receiving.
Natural Gas Avista also made its annual
Purchase Gas Cost Adjustment (PGA) filing today with the IPUC,
requesting an overall 1.53 percent increase in natural gas prices.
The annual filing is a true-up that balances the cost of wholesale
natural gas purchased by Avista to serve customers with the amount
already included in customer rates.
The requested increase is the result of a reduction in the
refund still being provided to customers from Avista's 2009 PGA
filing, which decreased customer rates by about 30 percent.
Abundant supplies of natural gas and softening demand for the
commodity have continued to keep wholesale natural gas prices at
lower levels over the past year. However, the elimination of a
portion of that refund results in a slight net increase in overall
rates. If the requested increase is approved, natural gas rates for
Avista's Idaho customers would remain at levels similar to those in
2004.
If the request is approved by the IPUC, a residential customer
using an average 62 therms a month would see a $0.99, or 1.63
percent, increase in their monthly rate for a revised monthly bill
of $61.75. Commercial customers could expect increases of 2.05
percent for general service schedule 111, and 1.68 percent for
interruptible sales service schedule 131. New rates would become
effective Oct. 1, with annual natural gas revenues increasing by
approximately $1.1 million. Avista does not mark up the cost of
natural gas purchased to meet customer needs, so there is no impact
on company earnings. Avista serves over 74,000 natural gas
customers in Idaho.
The direct cost of wholesale natural gas makes up about 65
percent of an Avista customer's bill, and these costs fluctuate up
and down based on market prices. The remaining 35 percent covers
the cost of delivering the natural gas -- the equipment and people
needed to provide safe and reliable delivery of service.
Avista's rate applications are proposals, subject to public
review and a decision by the Idaho Public Utilities Commission.
Copies of the applications are available for public review at the
offices of both the IPUC and Avista, as well as the IPUC's homepage
at www.puc.idaho.gov. The IPUC will begin a review of Avista's
applications and will seek public input on the company's
request.
Avista expects to file its annual Purchase Gas Cost Adjustment
in September with the Washington Utilities and Transportation
Commission. At the same time, the company plans to request a rate
decrease for residential and small farm electric customers in
Washington in the Residential Exchange Program.
To help customers proactively manage their energy use, Avista
offers a number of energy efficiency programs, including rebates
and incentives. Visit www.everylittlebit.com for information on the
programs that helped Avista's Idaho and Washington customers save
enough energy in 2010 to power over 5,700 homes for a year and to
serve over 2,500 homes with natural gas for a year.
Information on energy assistance programs and payment options
offered by Avista to help qualifying customers is available at
www.avistautilities.com.
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 357,000 customers and
natural gas to 317,000 customers. Our service territory covers
30,000 square miles in eastern Washington, northern Idaho and parts
of southern and eastern Oregon, with a population of 1.5 million.
Avista's primary, non-regulated subsidiary is Advantage IQ. Our
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, 2010 and the Quarterly Report on Form 10-Q for the
quarter ended June 30, 2011.
Contact: Media: Jessie Wuerst (509) 495-8578 Email
Contact Investors: Jason Lang (509) 495-2930 Email Contact Avista
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