Avista Makes Annual Price Adjustment Filings in Idaho
July 31 2024 - 4:05PM
Avista
(NYSE: AVA) has made annual rate adjustment
filings with the Idaho Public Utilities Commission (IPUC or
Commission) that, if approved, are designed to decrease overall
electric revenues by approximately $16.6 million or 5.4% effective
Oct. 1, 2024 and decrease overall natural gas revenue by
approximately $29.8 million or 25.8% effective Nov. 1, 2024. These
annual filings have no impact on Avista’s earnings.
Electric Adjustment FilingsTwo
annual electric adjustments were filed, that if approved, are
designed to change overall electric revenues effective Oct. 1, 2024
as follows:
- Power Cost Adjustment (PCA): a
decrease of approximately $22.8 million or 7.4%
- Fixed Cost Adjustment (FCA): an
increase of approximately $6.2 million or 2.0%
Natural Gas Adjustment
FilingsTwo annual natural gas adjustments were filed, that
if approved, are designed to change overall natural gas revenues
effective Nov. 1, 2024 as follows:
- Purchased Gas Cost Adjustment
(PGA): a decrease of approximately $32.3 million or 27.9%
- Fixed Cost Adjustment (FCA): an
increase of approximately $2.5 million or 2.1%
Customer Bills Resulting from these
FilingsIf the electric PCA and FCA filings are approved,
residential electric customers in Idaho using an average of 927
kilowatt hours per month would see their monthly bills decrease
from $104.18 to $101.46, a decrease of $2.72 per month, or
approximately 2.6%. The proposed electric rate change would be
effective Oct. 1, 2024.
The net effect, on an annual revenue basis, for
the requested electric rate changes by rate schedule are as
follows:
Residential Service - Schedule 1 |
|
-2.7% |
General
Service - Schedules 11 & 12 |
|
-7.2% |
Large
General Service - Schedules 21 & 22 |
|
-6.3% |
Extra Large
General Service - Schedule 25 |
|
-10.7% |
Extra Large
General Service - Schedule 25P |
|
-11.7% |
Pumping
Service - Schedules 31 & 32 |
|
-5.5% |
Street &
Area Lights - Schedules 41-49 |
|
-1.8% |
Overall |
|
-5.4% |
If the natural gas PGA and FCA filings are
approved, residential natural gas customers in Idaho using an
average of 64 therms per month would see their monthly bills
decrease from $78.03 to $59.37, a decrease of $18.66 per month, or
approximately 23.9%. The proposed natural gas rate change would be
effective Nov. 1, 2024.
The net effect, on a revenue basis, for the
requested natural gas rate change by rate schedule are as
follows:
General Service - Schedule 101 |
|
-24.3% |
Large
General Service - Schedules 111 & 112 |
|
-31.6% |
Interruptible Service - Schedules 131 & 132 |
|
0.0% |
Transportation Service - Schedule 146 |
|
0.0% |
Overall |
|
-25.8% |
Power Cost Adjustment (PCA)The
PCA is an annual rate adjustment made to reflect the difference
between the actual cost of generating and purchasing electric power
to serve customers and the cost currently included in customer
rates. Over the last year, power supply costs were lower than those
included in retail rates due to lower wholesale electric and
natural gas prices.
Fixed Cost Adjustment (FCA)The
electric and natural gas FCA is a mechanism designed to break the
link between a utility’s revenues and customers’ energy usage.
Avista’s actual revenue, based on kilowatt hour or therm sales,
will vary, up or down, from the level included in a general rate
case and approved by the Commission. This could be caused by
changes in weather, energy conservation or other factors. Under the
FCA, Avista’s revenues are adjusted each month based on the number
of customers. The annual difference between revenues based on sales
and the number of customers is surcharged or rebated to customers
beginning in the following year. The proposed FCA rate adjustments
are primarily driven by variations in 2023 customer usage related
to weather and savings from participating in efficiency programs.
The FCA mechanisms do not apply to Avista’s Electric Extra Large
General and Street Lighting Service Schedules, nor to its Natural
Gas Interruptible and Transportation Service Schedules.
Purchased Gas Cost Adjustment
(PGA)PGA requests are typically filed annually to balance
the actual cost of wholesale natural gas purchased by Avista to
serve customers with the amount presently included in customer’s
rates. Avista does not make a profit on, or markup, the wholesale
cost of natural gas. PGAs ensure customers pay what Avista pays,
dollar for dollar, only at a more predictable and stable rate
throughout the year. These rate adjustments are driven primarily by
a reduction in the current surcharge amortization rate and lower
wholesale natural gas prices observed during this past winter,
which were below the amounts included in rates.
Rate Application
ProcedureAvista’s applications are proposals, subject to
public review and a Commission decision. Copies of the applications
are available for public review at the offices of both the
Commission and Avista, and on the Commission’s website
(www.puc.idaho.gov). Customers may file with the Commission written
comments related to Avista’s filings. Customers may also subscribe
to the Commission’s RSS feed (https://puc.idaho.gov/RssPage) to
receive periodic updates via e-mail about the case. Copies of rate
filings are also available on Avista’s website at
www.myavista.com/rates.
If you would like to submit comments on the
proposed rate change, you can do so by going to the Commission
website or mailing comments to:
Idaho Public Utilities CommissionP.O. Box
83720Boise, ID 83720-0074
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 the operating division that provides electric
service to 418,000 customers and natural gas to 382,000 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 1.7 million. Alaska Energy and
Resources Company is an Avista subsidiary that provides retail
electric service to 18,000 customers 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.
Avista Corp. and the Avista Corp. logo are trademarks of Avista
Corporation.
SOURCE: Avista Corporation
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