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Aug 27 , 2015
 

Today, we announced we have filed annual rate adjustment requests in Washington and Idaho that, if approved by the commission in each state would impact electric and natural gas rates and take effect on Nov. 1, 2015.

 

These adjustment filings include:

 

·         Purchased Gas Cost Adjustment (PGA) in Idaho and Washington

·         Residential Exchange Program in Washington

 

These filings are annual adjustment requests that are separate from a general rate case.

 

Purchased Gas Cost Adjustment (PGA)

The PGA is an annual adjustment that balances the actual cost of wholesale natural gas purchased by Avista with the amount already included in current rates - we do not mark up the cost of natural gas to meet customer needs. We are required to file the PGA each year, and costs can go up or down, based on the cost of wholesale natural gas.

 

Residential Exchange Program

The Bonneville Power Administration (BPA) Residential Exchange Program provides a share of the benefits of the federal Columbia River power system to the residential and small farm customers of the investor-owned utilities in the Pacific Northwest. We apply the benefits we receive, which typically fluctuate from year to year, to customers as a credit on their monthly electric bill.

 

Washington  

Filing

Drivers

Residential Customer Bills

PGA

·         A reduction in wholesale natural gas commodity costs due to a warmer than normal winter.

·         An abundance of natural gas held in storage.

·         Continued high production levels of natural gas.

·         Decrease of $10.17 per month or 14.9 percent

·         A revised monthly bill of $57.99

·         Based on average usage of 68 therms per month

Residential Exchange Program

·         The benefit Avista will receive from BPA starting in October 2015 will be lower than the current level of benefits currently being passed through to qualified customers.

·         Increase of $2.69 per month or 3.3 percent

·         Monthly bill change from $80.70 to $83.39

·         Based on average usage of 966 kilowatt hours per month

 

Idaho

Filing

Drivers

Residential Customer Bills

PGA

·         Reduction in natural gas commodity costs due to a warmer than normal winter.

·         An abundance of natural gas held in storage.

·         Continued high production levels of natural gas.

·         Decrease of $7.94 or 13.4 percent

·         A revised monthly bill of $51.28

·         Based on average usage of 61 therms per month

 

Current Natural Gas Bill

Approximately 50 percent of an Avista customer’s natural gas bill is the cost of purchasing and transporting natural gas and 50 percent of the bill is delivery of natural gas to our customers, by Avista.

 

Read the news releases for Washington and Idaho.

 

Published: 8/27/2015  1:13 PM | 0  Comments | 0  Links to this post

Jun 01 , 2015
Today, Avista filed a multi-year electric and natural gas rate request with the Idaho Public Utilities Commission (Commission) which, if approved, would increase rates for electric and natural gas customers in Idaho in 2016 and 2017. Here are the details about the request:

Electric

The 2016 filing includes:

  • a request for a 5.2 percent overall increase in revenues, primarily for capital investments
  • a request to increase the monthly basic charge from $5.25 to $8.50

The 2017 filing includes:

  • a request for a 5.1 percent overall increase in revenues, primarily related to power supply and capital investments

2016 bill change:

The bill change for a residential customer using an average of 929 kilowatt hours per month would be, if approved:
  • $5.92 per month or 6.9 percent
  • for a revised monthly bill of $91.16

2017 bill change:

The bill change for a residential customer using an average of 929 kilowatt hours per month would be, if approved:
  • $6.10 per month or 6.7 percent
  • for a revised monthly bill of $97.26
Natural Gas

The 2016 filing includes:

  • a request for an overall increase in revenues of 5.8 percent
  • a request to increase the monthly basic charge from $4.25 to $8.00

The 2017 filing includes:

  • a request for an overall increase in revenues of 2.5 percent

2016 bill change:

The bill change for a residential customer using an average of 929 kilowatt hours per month would be, if approved:
  • $3.90 per month or 6.6 percent
  • for a revised monthly bill of $63.12

2017 bill change:

The bill change for a residential customer using an average of 61 therms per month would be, if approved:
  • $1.79 per month or 2.8 percent
  • for a revised monthly bill of $64.91

Timing
This request will take time to be reviewed. In Idaho, this can take up to nine months, during which time the Commission will thoroughly review Avista’s request and costs as well as relevant data and take public comments. Once reviewed, the Commission will approve rates they feel are reasonable and fair. The last general rate request filing in Idaho was Oct. 10, 2012.
 
The cost of energy and customer rates
The primary driver in the request is the continuing need to expand and replace the facilities and equipment we use every day to serve you, our customer. These investments include upgrades and maintenance of generation facilities, transmission and distribution equipment, natural gas pipe, and information technology.
 
Keeping rates fair and reasonable for our customers is a key part of our decision making. It’s a balance. The cost to produce energy continues to rise, as does the cost to generate and distribute this energy.
 
What does this investment look like?
Below are some of the capital projects and investments that are included in the rate request.
 
Nine Mile Powerhouse Project
We are in the midst of a multi-year project to rehabilitate the Nine Mile Powerhouse, which is 107-years-old. The project is underway to replace turbine-generator units, and other equipment that will increase the generation of clean, renewable power. In 2013, the last two (of four) original turbine-generating units were removed to make way for the new, more efficient units. Work in the powerhouse to install the new units began in 2014 along with a new warehouse, barge dock and crane pad.
 
Customer Information System and Enterprise Asset Management System
Avista’s customer information system is the foundation of our day-to-day customer operations. The system touches all of our customers and supports traditional utility business functions, such as meter reading, customer billing, payment processing, credit, customer service orders and material management. For 20 years, the system has been meeting the needs of our customers and the company, but like pipe, wires and equipment, over time it needed to be replaced. Years of work and investment in technology led to the launch of the new system in early February 2015.
 
Natural Gas Pipe Replacement
Avista continues a major project to systematically replace portions of older natural gas distribution pipe. The project is replacing hundreds of miles of natural gas pipeline to support a continuation of reliable service for our customers. In 2015, work will take place across all three states we serve, including Spokane, WA, Post Falls, ID, Lewiston, ID, Medford, OR and more. Learn more about this work and view all locations scheduled for 2015 here.
 
Learn more about the rate-making process by watching this video and reading the Rates fact sheet. Read the news release which includes the requested increase by service schedule.
Published: 6/1/2015  1:14 PM | 0  Comments | 0  Links to this post

Nov 03 , 2014
 

Over the last couple of months, we’ve told you about annual rate adjustments that we have filed with our utility commissions in each of the states we serve. These included annual Purchased Gas Cost Adjustments (PGA) filed in Washington, Idaho and Oregon, the Idaho Power Cost Adjustment (PCA), and rate adjustments in the Washington and Idaho Residential Exchange Programs.

 

Purchased Gas Cost Adjustment (PGA)

Power Cost Adjustment (PCA)

Residential Exchange Program

The PGA is an annual adjustment that balances the actual cost of wholesale natural gas purchased by Avista with the amount already included in current rates - we do not mark up the cost of natural gas to meet customer needs. We are required to file the PGA each year, and costs can go up or down, based on the cost of wholesale natural gas.

The PCA is an annual rate adjustment in Idaho made to reflect certain differences between Avista’s actual cost of generating and purchasing electric power to serve customers and the cost currently included in customer rates.

 

The Bonneville Power Administration (BPA) Residential Exchange Program provides a share of the benefits of the federal Columbia River power system to the residential and small farm customers of the investor-owned utilities in the Pacific Northwest. We apply the benefits we receive, which typically fluctuate from year to year, to customers as a credit on their monthly electric bill.

 

 

These rate adjustments, filed between July 30, 2014 and Sept. 15, 2014, have been approved by the various utility commissions, and customers will begin seeing these in reflected in their monthly utility bills, as of Oct. 1 (Idaho PCA and Idaho Residential Exchange Program) and Nov. 1 (all other filings). Below are the details of each of these adjustments in each state.

 

Idaho

Filing

Details

Purchased Gas Cost Adjustment (PGA)

Residential customer bills based on average usage of 60 therms per month:

·        Decrease of $1.16 or 2 percent

·        Revised monthly bill of $58.32

Power Cost Adjustment and Residential Exchange Program

Residential customer bills based on average usage of 930 kilowatt hours per month:

·        Increase of $3.45 or 4.2 percent per month

·        Revised monthly bill from $81.88 to $85.33

 

 

Read more about these filings here and here.

 

Oregon

Filing

Details

Purchased Gas Cost Adjustment (PGA)

Residential customer bills based on average usage of 47 therms per month:

·        Increase of $4.36 or 7.8 percent

General rate change from 2013 general rate case

This increase is to recover capital costs related to natural gas pipe replacement:

·        Increase of $0.17 or 0.3 percent

Overall

Residential increase of 8.1 percent with a revised monthly bill from $55.97 to 60.50

Read more about these filings here and here.

 

Washington

Filing

Details

Purchased Gas Cost Adjustment (PGA)

Residential customer bills based on average usage of 65 therms per month:

·        Increase of $0.65 or 1.1 percent

·        Revised monthly bill of $61.84

Residential Exchange Program

Residential customer bills based on average usage 965 kilowatt hours per month:

·        Decrease of $1.06 per month or 1.3 percent

·        Revised monthly bill from $80.09 to $79.03

Read more about these filings here.

 

 

Published: 11/3/2014  10:32 AM | 0  Comments | 0  Links to this post

Sep 15 , 2014

Today, Avista announced that it filed its annual Purchased Gas Cost Adjustment (PGA) with the Idaho Public Utilities Commission (IPUC) that if approved, could decrease natural gas rates for customers in Idaho by an overall 2.1 percent.

 

We’ve seen wholesale natural gas prices that were higher over the past year which was caused, in part, by a colder than normal winter throughout the United States. That colder than normal weather led to a higher level of natural gas usage by Avista’s customers, resulting in higher natural gas revenue, which offset the higher commodity costs.

 

Purchased Gas Cost Adjustment (PGA)

The PGA is an annual adjustment that balances the actual cost of wholesale natural gas purchased by Avista with the amount already included in current rates - we do not mark up the cost of natural gas to meet customer needs. We file the PGA each year, and costs can go up or down, based on the cost of wholesale natural gas.

 

Residential Customer Bills Based on Average Usage of 60 Therms a Month

·         Decrease of $1.16 or 2 percent

·         Revised monthly bill of $58.32

·         If the request is approved, it would take effect on Nov. 1, 2014

 

Current Natural Gas Bill

Approximately 55 percent of an Avista customer’s natural gas bill is the cost of purchasing and transporting natural gas and 45 percent of the bill is delivery of natural gas to our customers, by Avista.

 

Read the full news release here. You can also read about the annual Power Cost Adjustment (PCA) filed in Idaho as well as the settlement agreement reached to extend the current rate plan in Idaho.

 

Published: 9/15/2014  1:11 PM | 0  Comments | 0  Links to this post

Jul 30 , 2014

Today, Avista announced we have filed two annual rate adjustment requests in Idaho including the the Power Cost Adjustment (PCA) and the Bonneville Power Administration (BPA) Residential Exchange Program. If approved, these filings would increase electric rates beginning Oct. 1, 2014.

 

You may recall that we told you about a settlement that we reached in Idaho that would not raise base retail rates through a general rate case in Idaho prior to Jan. 1, 2016.

 

Base rates are those that cover the total cost of providing electricity and natural gas service to customers. This includes generating and purchasing energy as well as the delivery of that energy to customers. The PCA is used to track one piece of base rates - the actual costs for generating and purchasing electric power to serve customers.

The PCA and Residential Exchange Program filings are annual adjustment filings which occur outside of a general rate case.

 

Power Cost Adjustment (PCA)

The PCA is an annual rate adjustment made to reflect certain differences between Avista’s actual cost of generating and purchasing electric power to serve customers and the cost currently included in customer rates.

 

·         Power supply costs were higher in 2013 due primarily to increased fuel costs and power purchase expense, some of which was required to replace the energy lost due to an outage at Unit #4 at the our Colstrip Generating Plant.

·         Part of the proposed PCA rate adjustment is related to the expiration of a rebate to customers. Beginning in October 2013, Avista began passing through to customers a one-year rebate of approximately $4.6 million related to last year’s PCA. That rebate will end Sept. 30, 2014.

·         The proposed PCA would pass through to customers $7.8 million in increased power supply costs that occurred over the last 12 months.

 

Residential Exchange Program

The Bonneville Power Administration (BPA) Residential Exchange Program provides a share of the benefits of the federal Columbia River power system to the residential and small farm customers of the investor-owned utilities in the Pacific Northwest. We apply the benefits we receive, which typically fluctuate from year to year, to customers as a credit on their monthly electric bill.

 

The benefit Avista will receive from BPA starting in Oct. 2014 will be higher than the current level of benefits currently being passed through to applicable customers.

 

Customer Bill Impact (Based on average usage of 930 kilowatt hours per month)

The results of the PCA and Residential Exchange Program filings would include:

 

·         Increase of $3.45 or 4.2 percent per month

·         Revised monthly bill from $81.88 to $85.33

·         If the filing requests are approved, the changes would take effect on Oct. 1, 2014

 

Read the news release here.

 

Published: 7/30/2014  4:04 PM | 0  Comments | 0  Links to this post

Jul 14 , 2014
 

Today, Avista announced that a settlement has been reached to extend the current rate plan in Idaho. The settlement proposes that there would be no increase in base retail rates for customers prior to 2016.

 

What Does This Mean?

The extension of the current rate plan provides rate stability for customers and is the result of a collaborative process. It is an outcome that is beneficial for our customers and the company.

 

This includes:

·         Unchanged base retail rates

·         Maintained level of rebates that customers currently receive

·         The opportunity to balance the recovery of costs of providing safe and reliable energy and the company’s opportunity to earn a fair return

 

Details of the Proposed Settlement

The details of the proposed settlement demonstrate what can be a complex process and topic.

·         Replacement of two rebates that are set to expire on Jan. 1, 2015 that are currently reducing customers’ monthly energy bills by 1.3 percent on the electric side and 1.7 percent on the natural gas side.

·          An estimated $3.7 million increase in pre-tax margin in 2015 for Idaho operations.

·          Deferral of the majority of costs related to completion of Avista’s customer information system upgrades in 2015, as well as a change in the timing of expenses related to operations and maintenance (O&M) costs pertaining to its Colstrip and Coyote Springs 2 thermal generating facilities.

·          Use of any deferral balance resulting from the 2014 Idaho earnings test to support up to a 9.5 percent return on equity (ROE) in 2015.

·          If the company earns more than its currently authorized 9.8 percent ROE in 2015, 50 percent of the earnings above 9.8 percent would be deferred for future ratemaking.

 

PGA and PCA Adjustments

The proposed settlement applies to base rates. Avista will file annual rate adjustments including the Power Cost Adjustment (PCA) and Purchased Gas Cost Adjustment (PGA). These adjustments balance the actual costs of purchasing or generating energy and natural gas to serve customers and the amounts currently covered in rates, and are typically filed in the third quarter every year.

 

The settlement has been filed with and must be approved by the Idaho Public Utilities Commission (IPUC or Commission).

 

Read the announcement news release.
Published: 7/14/2014  1:07 PM | 1  Comment | 0  Links to this post

Mar 27 , 2013
Posted by Debbie Simock
 
Idaho customers provided more rate certainty over the next two years.
 
The Idaho Public Utilities Commission (IPUC) has approved the multi-party settlement agreement in the electric and natural gas rate requests we filed last October. If you’re an Idaho natural gas customer, you’ll see two adjustments to your natural gas rates – April 1 and Oct. 1. Electric customers will see an adjustment on Oct. 1.
 
We’ve agreed not to request an increase in base retail rates that would take effect before Jan. 1, 2015. Other annual adjustments, such as for the cost of wholesale natural gas and purchased power, can still be requested since they are a separate part of your rate and have no impact on earnings. This means you’ll have more certainty in your energy rates for the next two years, so you can better manage your energy costs.
 
The bottom line
 
As a result of the approval, you’ll see two rate changes if you’re an Avista Idaho natural gas customer:
 
- Beginning April 1, if you use an average 60 therms of natural gas a month, you’ll see an increase of $2.82 a month for a revised bill of $55.37.

- Beginning Oct. 1, you’ll see an additional increase of $0.31 for a revised bill of $55.68.

If you’re an electric customer using an average of 930 kilowatt hours a month:

- Beginning Oct. 1, you’ll see an increase of $2.04 for a revised monthly bill of $80.73.

More information on the approval is in this news release.
Published: 3/27/2013  8:03 PM | 0  Comments | 0  Links to this post

Feb 06 , 2013
 
Proposed settlement provides more certainty for customers to manage energy costs over the next two years
 
 
Today we announced a settlement agreement with several parties on the Idaho electric and natural gas general rate requests we filed back in October.  You can read our news release here. The settlement, if approved by the Idaho Public Utilities Commission (IPUC or commission) would mean a two-phase rate increase in electric and natural gas rates. The first would take effect April 1, 2013 and the second on Oct. 1, 2013.
 
As part of the settlement, we’ve agreed not to request additional general rate increases that would take effect before Jan. 1 of 2015. This doesn’t mean we wouldn’t adjust rates based on power supply or wholesale natural gas costs before then (remember, that’s a separate part of your bill). For more information about how we adjust those costs, read our Natural Gas Pricing 101 series or visit our website area About Natural Gas and Power Costs.
 
But what it does mean is that you’ll have more certainty in your energy rates for the next two years, so you can better plan to manage your energy costs. And your energy prices will still be among the lowest in the nation.
 
The bottom line
 
Here’s how the changes, if approved would affect your energy bill.
 
If the commission approves the settlement and you are an Avista electric customer, you would see one general rate increase:

• Beginning Oct. 1, 2013, if you use an average of 930 kilowatt hours a month, you would see an increase of $2.04 per month, for a revised bill of $80.73.

Here’s how the changes, if approved, would affect you as a natural gas customer:

• Beginning April 1, 2013, if you use an average of 60 therms a month, you would see an increase of $2.82 a month, for a revised monthly bill of $55.37.

• Beginning Oct. 1, 2013, if you use an average of 60 therms a month, you would see an additional increase of 31 cents a month, for a revised monthly bill of $55.68.

The settlement and what’s next
 
You may be wondering what a rate case settlement agreement is and how it all works. When Avista files a request to increase rates, it goes through a process much like a legal proceeding. Parties representing various groups including residential, small-business, low-income and electric industrial customers, participate on behalf of their groups.
 
The commission oversees this process, and is charged with setting rates that are fair, just, and reasonable for customers, while allowing Avista the opportunity to earn a fair return on the investment shareholders make so we can continue delivering safe, reliable energy. When we can reach an agreement like this one, it saves time and the cost of a fully litigated rate case. It is ultimately up to the commission to approve the request.
 
In addition to Avista, the parties to the proposed settlement are the Staff of the IPUC, Clearwater Paper Corporation, Idaho Forest Group and The Idaho Conservation League. The IPUC will establish a procedural schedule to gather comments on the proposed settlement from parties to the rate case, as well as customers of Avista, prior to making a decision.  For more information, see the IPUC website.
 
Here is another resource about how energy rates are set that you might find helpful.
Published: 2/6/2013  1:33 PM | 0  Comments | 0  Links to this post

Dec 26 , 2012
Project Share
Households that are having trouble paying their heating bills this winter will receive help as the result of $226,000 in donations Avista and our employees made to Project Share (see news release). An additional $100,000 is going to 19 human care service organizations in eastern Washington chosen by our CAREs representatives (Customer Assistance Referral and Evaluation Service).
 
“We know that the economy of our service territory continues to be depressed and that it is difficult for families to make ends meet. The organizations receiving these Project Share and CARES donations are an important safety net, and they provide important assistance that helps those most in need meet the costs of housing, food and medicine, and keeping their homes warm this winter,” said Scott Morris, chairman, president and CEO of Avista Corp.
Project Share will receive $226,000 from Avista and its employees. The program, which is administered by SNAP in eastern Washington and by community action programs in other areas of our service territory, provides emergency grants to help families meet energy costs regardless of the fuel used to heat their home. In 2011, more than 2,100 households received emergency energy assistance through Project Share. The funds for this donation come from company profits and employee donations and are not included as a cost to customers in developing rates.

“This donation is another amazing example of Avista taking the initiative to support our neighbors during difficult times,” said SNAP CEO Julie Honekamp. “We greatly value this collaborative effort that continues to be a vital benefit to our community. More homes will stay warm throughout the winter because of this.”
 
Additionally, Avista is partnering with 19 community service agencies in eastern Washington to make grants for energy assistance to qualifying Avista customers in need this winter.

Avista has contributed a total of $100,000 to the agencies for customers who have exhausted all other available energy assistance resources. The organizations were identified by Avista’s CARES representatives, who are specially trained and who work closest with our most vulnerable customers.
The funds for the CARES donations come from a state utility tax credit Avista receives that is associated with our low-income energy assistance programs.
 
Published: 12/26/2012  10:35 AM | 0  Comments | 0  Links to this post

Dec 17 , 2012
$28,150 donated to food banks in Washington, Idaho, Montana and Oregon
 

Avista employees help distribute food at a mobile food bank last fall.
Avista employees help distribute food at a mobile food bank
last fall. .
For some residents of the Pacific Northwest, feeding their families can be one of the biggest challenges they face each month. Forty-seven food banks in Avista’s service territory will have a bit more money to stock their shelves in the months ahead as the result of grants issued by Avista Corp. and the Avista Foundation. A total of $28,150 has been donated to food banks in Washington, Idaho, Montana and Oregon by Avista Corp. and the Avista Foundation.
 
“Community food banks are providing vital safety-net services in the communities we serve. Through their buying power and relationships with food producers, the food banks are able to leverage donations like ours to bring several times their value to help stock the shelves for those in need,” said Scott Morris, chairman, president and CEO of Avista Corp. “Helping limited income families and seniors meet their nutritional needs is an important part of our emphasis on providing assistance to reduce poverty in the communities served by Avista Utilities.”

In addition, Avista employees donated $8,000 to the Second Harvest Food Bank during “Tom’s Turkey Drive,” a Thanksgiving event sponsored by KREM television. Avista Foundation matched that amount, for a total donation to Second Harvest of $16,000.

Funding for donations, other than employee gifts, comes from foundation funds and company profits. It is not included as a cost to customers in developing retail rates.
 
Published: 12/17/2012  2:35 PM | 0  Comments | 0  Links to this post

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