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Avista makes annual price adjustment requests in Idaho   

Tags: Avista Utilities, Idaho, Rates

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.


Posted by  System Account  on  7/30/2014
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