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Aug 31 , 2016
 

Earlier this month we filed rate adjustments in Idaho and Oregon. We recently made additional annual rate adjustment filings in Idaho and Washington that, if approved by the utility commissions in those states, would change rates for customers on Nov. 1, 2016.

 

Below are the details of each of these requested adjustments.

 

Idaho

Filing

Details

Purchased Gas Cost Adjustment (PGA)

Residential customer bills based on average usage of 61 therms per month:

·         Decrease of $4.65 or 8.4 percent per month

·         Revised monthly bill of $50.94

Read more about this filing here.

 

Washington

Filing

Details

Purchased Gas Cost Adjustment (PGA) Decoupling

(Natural Gas)

Residential customer bills based on average usage of 66 therms per month:

·         Decrease of $3.04 or 4.9 percent per month

·         Revised monthly bill from $61.85 to $58.81

Residential Exchange Program and Decoupling

(Electric)

Residential customer bills based on average usage 957 kilowatt hours per month:

·         Increase of $2.28 or 2.7 percent per month

·         Revised monthly bill from $83.91 to $86.19

Read more about these filings here.

 

About the filings

 

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 in their monthly electric rates.

Decoupling

Decoupling 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 and 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 the economy. The difference between revenues based on sales and revenues based on the number of customers is surcharged or rebated to customers beginning in the following year.

 

 

Published: 8/31/2016  2:46 PM | 0  Comments | 0  Links to this post

Aug 01 , 2016
 

We’ve recently filed annual rate adjustments in Idaho and Oregon that, if approved by the utility commissions in those states, would change rates for customers. Here is an overview of what has been filed and what this means for you.

 

Idaho: Power Cost Adjustment (PCA) and Residential Exchange Program

If both requests are approved, a residential electric customer using an average of 918 kilowatt hours per month would see a decrease of $0.30 or 0.3 percent per month, for a revised monthly bill from $84.72 to $84.42, beginning Oct. 1, 2016.

 

Oregon: Purchased Gas Cost Adjustment (PGA) and related filings

If the requests are approved, a residential natural gas customer using an average of 46 therms per month would see a decrease of $4.09 or 6.9 percent per month, for a revised monthly bill of $55.12, beginning Nov. 1, 2016.

 

About the Filings

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.

Residential Exchange Program

The 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. Avista applies the benefits it receives, which typically fluctuate from year to year, to customers as a credit in their monthly electric rates.

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.

 
 
Published: 8/1/2016  9:52 AM | 0  Comments | 0  Links to this post

May 26 , 2016
 

Today, Avista filed a general rate request with the Idaho Public Utilities Commission (IPUC or Commission) to increase base rates for electric customers in Idaho. If approved, new rates would take effect Jan. 1, 2017.

 

Electric Request and Customer Bills

 

Electric

The filing includes:

·         a request for a 6.3 percent increase in revenues

·         a request to increase the monthly basic charge from $5.25  to $6.25

 

 

Bill:

A residential customer using an average of 918 kilowatt hours per month could expect to see, if approved:

·         A total billed increase of $6.54 per month or 7.7 percent

·         A revised monthly bill of $91.26

 

 

The actual percentage increase for electric customers would vary by customer class and depend on how much energy a customer uses.

 

Process and Timing

Avista cannot change customer rates on its own. The Commission approves or sets energy rates that are fair and reasonable for the customer and Avista. It can take up to nine months for the Commission to review the requests and make a decision, 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 set rates. You may hear updates on the process in the coming months.

 

The cost of energy and customer rates

The main driver in the requests 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 and transmission and distribution equipment. The costs of these investments continue to rise. Our rates are cost-based, meaning that the costs included in customer rates reflect the costs of the equipment when installed. When we replace or update old equipment with new equipment and technology, it can cost many times more than when it was originally installed.

 

What does this investment look like?

Below are some of the capital projects and investments that are included in the rate request.

 

Little Falls Powerhouse Redevelopment

Our Little Falls dam has been generating renewable, low-cost power for more than 100 years, with equipment ranging from 60 to more than 100 years old. This multi-year project is replacing the unreliable equipment and modernizing the station service so that we can continue to provide reliable service for our customers. Throughout 2015, one of the four generating units was reassembled and put back in service and new LED lights were installed in the plant. In 2016, work is underway to disassemble the second of four generating units and reassemble with new equipment, as well as the installation of a new downstream warning system.

 

Nine Mile Powerhouse Project

We are in the midst of a multi-year project to rehabilitate the Nine Mile Powerhouse, which is 108-years-old. The project is underway to replace turbine-generator units, and other equipment that will increase the generation of clean, renewable, low-cost 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. 

 

Post Falls South Channel Dam Upgrades

In 2016, Avista completed a two-year project that refurbished and upgraded the Post Falls South Channel Dam, one of three dams that make up the Post Falls Hydroelectric Development. The project included replacing the original concrete with new concrete facing that helps control water levels of Lake Coeur d’Alene and parts of three rivers, six new spill gates, frames and hoists along with a new spillway control system and electrical distribution that enable the structure to continue its role in generating reliable, clean and low-cost renewable energy.

 

Please visit our website here to learn more about this filing and the rate-making process.

Published: 5/26/2016  12:59 PM | 0  Comments | 0  Links to this post

Dec 21 , 2015
 

Avista received approval from the Idaho Public Utilities Commission (IPUC or Commission) of the all-party settlement that was filed on Oct. 19, 2015, concluding our 2015 electric and natural gas general rate case. New rates will take effect on Jan. 1, 2016.

 

This case is separate from the Purchased Gas Cost Adjustment (PGA) that took effect on Nov. 1, 2015.

 

The approved rates are designed to increase annual electric base revenues by 0.7 percent and natural gas base revenues by 4.1 percent on Jan. 1, 2016.

 

Residential customer bills based on average usage

An average residential customer can expect to see the following, beginning Jan. 1, 2016:

 

Electric - customer using an average of 929 kilowatt hours per month

·         Increase of $0.75 or 0.9 percent

·         A revised monthly bill of $85.74

·         No increase in the basic monthly charge (remains at $5.25 per month)

 

Natural gas - customer using an average of 61 therms per month

·         Increase of $3.20 or 6.2 percent

·         A revised monthly bill of $54.48

·         An increase of $1.00 in the basic monthly charge, from $4.25 to $5.25 (this is included in the revised bill amount above)

·         The numbers above include the effects of the Nov. 1, 2015 Purchased Gas Cost Adjustment (PGA) which reduced average customer rates by 13.4 percent

 

 

For more details, read the new release here. You can also read more about the settlement here and original request here.

 

Learn more about the rate-making process here. You can also watch this video and read this one-sheet.

Published: 12/21/2015  1:47 PM | 0  Comments | 0  Links to this post

Oct 19 , 2015
 

On Oct. 19, 2015, Avista announced a settlement agreement between all parties that, if approved by the Idaho Public Utilities Commission (IPUC or Commission), would conclude the electric and natural gas general rate requests in Idaho. New rates would take effect on Jan. 1, 2016.

 

You may recall we filed a general rate request on June 1, 2015 to increase electric and natural gas base rates in Idaho to recover costs related to ongoing investments in our infrastructure such as upgrades and maintenance of our hydroelectric facilities, transmission and distribution equipment, natural gas pipe, and information technology.

 

Overall, the settlement would increase annual electric base revenues by 0.7 percent and natural gas base revenues by 3.5 percent. What does that look like for residential customers?

 

Part of the settlement includes two rebates.

·         Extension through 2017 of a $2.8 million rebate customers are currently receiving.

·         Extension of a portion of a $1.2 million rebate customers are currently receiving. Avista proposed to use $0.2 million to do this, with customers receiving the rebate in 2016. 

 

Residential customer bills based on average usage:

 

Electric - customer using an average of 929 kilowatt hours per month

·         Increase of $0.75 or 0.9 percent

·         A revised monthly bill of $85.74

·         No increase in the basic monthly charge (remains at $5.25 per month)

 

Natural gas - customer using an average of 61 therms per month

·         Increase of $3.19 or 5.4 percent

·         A revised monthly bill of $62.41

·         An increase of $1.00 in the basic monthly charge, from $4.25 to $5.25

 

 

For more details about the settlement, read the new release here. You can also read more about the original request here.

 

Learn more about the rate-making process here. You can also watch this video and read this one-sheet.

 

Published: 10/19/2015  9:02 AM | 0  Comments | 0  Links to this post

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

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