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.
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.
· 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.
Jul 09 , 2014
A lot of things can change in 125 years, but Avista’s commitment to innovation, collaboration and providing safe reliable power is as consistent today as it was in 1889. With the launch of our sixth annual report on our operations – 125 Years of Shared Value – our stakeholders can see how the work we do today and our legacy of delivering shared value remains a core component of how we operate.
Avista’s purpose is to improve life’s quality with energy – safely, reliably and responsibly. Our Shared Value Report bring this to life by providing a comprehensive look at how our business operates and the work that goes into making this purpose a reality for our stakeholders. The content highlighted in the report demonstrates how the work we do across the company to provide energy not only powers homes and businesses, it serves as a means for creating value and making a lasting impact on those we serve.
As sustainability reporting and our reports have evolved over time, there has been an increased focus on materiality – what our stakeholders have told us is relevant to them. We have listened, and this year you will see the material topics called out throughout the report with icons. Our intent is that the icons will make it easier for readers to find the information they want.
You’ll also see stories that demonstrate shared value and our commitment to our customers, communities and the environment. Highlights include:
· Using goats as a means for taking care of noxious weeds in an environmentally friendly way
· Philanthropic giving of approximately $1.5 million through the Avista Foundation and Avista Corp.
· Employees’ donation of 46,500 volunteer hours
· Partnering with agencies and communities to complete activities that maintain and restore habitat and wetlands related to our operations on the Spokane and Clark Fork Rivers
· Implementing keyhole technology for repairing natural gas lines as a way to find efficiencies for customers and the utility
· Driving economic prosperity through involvement in community initiatives such as the Palouse Basin Water Summit, Coeur d’Alene 2030 Community Visioning and more
As part of our sustainable business practices, the report is published only online. A PDF file can be downloaded for your convenience in reading the report or sharing it with others.
Shared value is at the heart of what Avista does every day. We hope you’ll take the time to read this year’s report and give us your feedback by email at SharedValue@avistacorp.com. We want to hear from you about how we can continue to build shared value.
Jul 09 , 2014
We all wish we could look into a crystal ball and see what the future brings, especially for our region’s economy. At Avista, we need to know what our customers’ needs will be 5, 10, or even 15 years down the road. There’s no crystal ball, so we use data and research to help inform decision makers and forecast our own economic climate so that we can continue to serve the same low-cost, reliable power to customers that we’ve provided for the last 125 years.
Leading the way is our Chief Economist, Dr. Grant Forsyth. From both a company and community standpoint, Grant is widely recognized as the resident expert when it comes to providing data that helps internal and external leaders make informed research-based decisions that benefit all of us.
Within Avista, Grant spends much of his time running statistical models to forecast energy load, which helps plan for future energy needs. He also serves as a consultant on special projects, where his research background as a Ph.D. and an Eastern Washington University professor of economics for more than a decade, make him a perfect fit for Avista.
“At Avista, people reach out to me for empirical data for special projects,” Grant said. “For example, we had somebody in health and safety that needed an analysis of languages spoken in our service territory. With my academic research background, I knew where to go to get the data and maintain the database for them.”
Grant’s teaching experience also serves an external purpose in his position: public speaking. Any given day, he speaks to local and regional groups of 5 to 500 or more. He keynotes events like Greater Spokane Inc.’s Annual Economic Forecast, meets with local business groups and community leaders, and serves on a variety of local and state economic councils, including the Governor’s Council of Economic Advisors and the Spokane Mayor’s Council on Economic Vitality .
“I’m a resource for both businesses and the general public,” Grant said. “I often get inquiries about economic issues or what unemployment numbers are telling us. I have a lot of data and research at my fingertips, so I try my best to explain what the numbers mean rather than taking a position one way or the other.”
Well-versed in the economics locally and nationally, Grant is originally from Ellensburg, Wash., but has lived and worked in both the United States and Europe.
Cool fact: Grant worked in the Czech Republic from 1996 to 1999 during a time when the country was transitioning from one political and economic system to another.
Watch this Blog for future entries from Grant himself about the economics of our region.
Jun 30 , 2014
125-year legacy of giving will be strengthened for the future
Avista Corp. today announced that it has contributed $6.5 million to the Avista Foundation, a community investment program that provides funding to non-profit organizations addressing the needs of communities and citizens served by Avista Utilities in eastern Washington, northern Idaho, portions of southern Oregon, as well as Sanders County, Montana. The infusion brings the foundation’s endowment to approximately $10 million.
“This is a very exciting time for our company with the celebration of our 125th anniversary. Having a positive impact on our communities has always been a priority for Avista. Our legacy of active partnership and support for the vital work of community non-profits throughout our service area is a significant part of our company’s value system,” said Avista Corp. Chairman, President and Chief Executive Officer Scott Morris. “Growing the foundation’s endowment will help us sustain the donation program into the future, supporting opportunities to build community and economic vitality in our region.”
Corporate and foundation giving in 2013 exceeded $1.5 million for programs and services in communities, including Spokane, Pullman and Clarkston, Wash.; Coeur d’Alene, Moscow, Lewiston and Sandpoint, Idaho; Klamath Falls and Medford, Oregon; and Sanders County, Montana, to name a few locations.
The Avista Foundation was established in 2002 with the objective of making a difference in our communities in a positive and sustainable way. It is not funded from customers’ energy bills. Since its founding the Avista Foundation has made grants totaling more than $3 million. The foundation focuses its giving in the areas of:
- education – K-12 education particularly in the fields of science, math and technology; and higher education including scholarships,
- vulnerable and limited income populations – providing assistance to those on limited incomes and support for initiatives to reduce poverty, and
- economic and cultural vitality – supporting projects that help communities and citizens to grow and prosper.
Mar 18 , 2014
We are proud to be a part of powering your future.
On March 13, 1889, Avista, formerly known as Washington Water Power, was incorporated eight months before the Washington Territory became a state. Today, the company is one of only three companies remaining in the state that are classified as Territorial Corporations – incorporated before Washington’s statehood. (See a Video of the presentation.)
The company began on the banks of the Spokane River with the Monroe Street plant, using hydropower to generate electricity for the growing city of Spokane Falls. Today, clean, renewable resources remain a significant part of the company’s diversified mix for energy generation.
Over the generations of providing energy services, one thing has remained constant for our company: We are honored to provide the energy and resources that have helped families and commerce be successful, whether it is in the home, enjoying the outdoors or building successful businesses. We’re proud to call each community we serve “home,” and we’re proud to be your partner in bringing energy for life.
History by Region
Our service territory spans more than 30,000 miles throughout Washington, Northern Idaho, and Oregon. The communities we serve have a rich history that we’re proud to be part of. We’ve captured some of these highlights in our 125th Anniversary Tabloid. You can view it online or download and print. We hope you enjoy this trip down memory lane by region.
Huntington Park in Downtown Spokane to open in May
On May 2, 2014, Avista will celebrate the renovation of Huntington Park, property the company owns along the banks of the Spokane River, just west of Spokane’s City Hall. The renovation and enhancements include work on the walkways, grassy areas and structures to provide residents and visitors greater access to the river and views of the falls.
A new plaza at City Hall will be dedicated that day as a gift to Spokane in celebration of the company’s 125 anniversary. The new plaza will create open-air space for gatherings and river viewing, and includes two water features and a fire feature.
For the first time in more than 100 years, the view of the spectacular lower falls of the Spokane River will be opened up for easy viewing from the park, the plaza or the streets of Spokane.
Learn more about Huntington Park.
Salmon Chief to oversee Huntington Park
Artist Virgil “Smoker” Marchand created an inspirational Native American sculpture – Salmon Chief - to oversee Huntington Park, which will be dedicated in May.
Marchand says the sculpture represents a Native American tradition of a man who was appointed to ensure all area tribes received enough Salmon to make it through the winter.
The Native American sitting atop his horse is raising the salmon like a blessing to the river. The horse and man statute is over 12-feet tall and took more than three weeks to make. Several other pieces will be added to the display in the spring.
Mar 12 , 2014
Why would engineers from Bangladesh come all the way to Spokane? To see Avista’s smart grid upgrades up close and personal, of course.
Members of Bangladesh’s Rural Electrification Board are spending several weeks in Pullman learning about power engineering from Washington State University faculty. Their curriculum includes a field trip to Avista.
They learned about the investments Avista’s made to transform Pullman, Wash into the region’s first “smart city,” toured one of our state-of-the art substations and traveled to Spokane to meet with 3 Avista engineers who are leading our grid modernization projects. They saw first-hand how the switches, sensors and software we’ve installed are improving reliability for customers and enhancing the energy efficiency of our distribution system.
“We are working for the villagers,” said Abdul Aziz, an executive engineer with the Rural Electrification Board. “We are learning methods at WSU that will help us bring the villagers better service and an improved distribution system.”
Our friends from Bangladesh learned a lot from our engineers -- and they’ll bring those lessons home.
We can’t wait to share our knowledge with another group of Bangladesh visitors later this month.
Mar 11 , 2014
On Thursday, March 13th Avista Utilities is hosting a public information meeting to update the community on details for the restoration and upgrade of the over 100-year-old South Channel Dam at the Post Falls Hydroelectric Development (HED). The meeting will take place from 6:30-8:00 p.m. in City Council Chambers at the Post Falls City Administration Building, 408 N. Spokane Street.
The public is invited to attend the event, which will outline the project details and construction plans. The presentation will be followed by an open Q&A session where you can talk with project experts. Q’emiln Park, including the boat launch, swim area, trailhead and pavilion, and the Spokane River between the Spokane Street Bridge and the boaters safety cables are expected to be open as normal this summer with limited exceptions.
The construction methods that will be used in the project were chosen to minimize disruption in the area, while protecting the safety of the public, environment and wildlife. The project, designed to restore the dam located on the south channel of the Spokane River near Q’emiln Park, is expected to begin this spring with construction completed by December 2014 and final road work and landscaping to be completed in spring 2015.
It’s easy to stay up-to-date on project information and impacts. Just send us an email at SpokaneRiverNews@avistacorp.com
and you will be added to the distribution list for our email alerts. Be sure to type "Post Falls Updates" in the subject line and include your name and email address in the body text. You can also get timely project information, including the project fact sheet on our website. Just type “Post Falls Dam” in the Ask a Question field.
Feb 12 , 2014
Inland Northwest homes and businesses typically see highest energy bills of the year in January and February. And this year isn’t any different as we have seen a long winter heating season. With sustained cold temperatures, heating systems run longer and work harder to keep the temperature at the level set on the thermostat which increases energy use.
In addition to energy use, the number of days in a billing cycle will also have an impact on energy bills. The average number of days in a billing cycle is 31, but it can range from 28 to 34 depending on the number of days in a month and any holidays. The number of days in a customer’s billing cycle is displayed on each monthly bill.
Heating and cooling a home can make up as much as half of annual energy use, so taking steps in winter to keep the warm air inside the home and the cold air outside can help manage energy use. Some easy ways to get started include:
Set your thermostat to 68 degrees and lower it to 63 at night and when leaving the house. If you have a heat pump as the main heating source, a two to three degree setback is what is recommended. Installing a programmable thermostat will let you set it and forget it.
- Seal air leaks by installing door sweeps on exterior doors or putting a towel at the bottom of the door, caulking around windows and exterior doors, and installing foam insulators behind switch plates and outlet covers on exterior walls.
- Clean or replace furnace filters regularly. And, keep vents clear of obstructions.
- Electric space heaters are more efficient when used to heat a smaller occupied space or in a common area that is generally cooler than the rest of the house.
- Limit using an open fireplace when it is extremely cold because the fireplace will draw heated air from your home and send it up the chimney.
Additional, there are low- and no-cost energy efficiency information, including rebates and incentives available for customers
. You can also access tools
that provide a month-to-month comparison of their bills with details on factors impacting each bill and other helpful information, such as a graph on two-year energy consumption.
Feb 04 , 2014
Today, Avista filed a request with the Washington Utilities and Transportation Commission (commission) to increase rates for electric and natural gas customers in Washington. Avista has not filed a general rate request in Washington since April 2012. If approved, the new rates would take effect beginning Jan. 1, 2015. Here are the details about the request:
The filing includes:
· a request for a 3.8 percent increase in base revenues for capital investments
· the expiration of two rebates customers are currently receiving that are reducing monthly electric bills by 2.8 percent
· the proposal of a new rebate that would reduce customer bills by 1.1 percent
· a request to increase the monthly basic charge from $8 to $15
These rebates are passed through to customers on a dollar-for-dollar basis and do not increase or decrease the company’s earnings.
The bill impact for a customer using an average of 965 kilowatt hours per month would be, if approved:
· A total billed increase of $4.89 per month or 6.1 percent
· A revised monthly bill of $84.98
The filing includes:
· a request for an increase in base revenues of 8.1 percent
· a request to increase the monthly basic charge from $8 to $12
The bill impact for a customer using an average of 65 therm per months would be, if approved:
· A total billed increase of $5.23 per month or 8.5 percent
· A revised monthly bill of $66.42
This request will take time to be approved. In Washington, this can take up to 11 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 cost of energy and customer rates
The main driver in filing the requests is the continuing need to expand and replace the facilities and equipment we use every day to serve you, our customer. We expect capital investments of $335 million in 2014, up from $280 million in 2013. These investments include upgrades and maintenance of generation facilities, transmission and distribution equipment, natural gas pipe and information technology upgrades.
Keeping rates fair and reasonable for our customers is a key part of our decision making. It’s a balance. The cost of energy continues to rise, as does the cost to generate and distribute this energy.
What does this investment look like?
Below are some capital projects that are included in the rate request.
Post Falls South Channel Dam Project
Beginning spring 2014, Avista will upgrade the 106-year-old South Channel Dam, one of three dams that make up the Post Falls Hydroelectric Development. The project includes:
· replacing the original concrete on the structure that helps control water levels of Lake Coeur d’Alene and parts of the three rivers
· installing new electronic gates and hoists
· installing new electrical and controls to automate the opening and closing of the spillway gates, increasing efficiencies and reducing cost
This work will increase reliability and preserve the life of this important generation resource.
Nine Mile Powerhouse Project
We are in the midst of a multi-year project to rehabilitate the Nine Mile Powerhouse, also 106-years-old. . The project will replace original generators, turbines and other equipment that will increase the generation of clean, renewable, low-cost power.
Customer Information System and Enterprise Asset Management System
Avista’s customer information system is the foundation of Avista’s day-to-day customer operations. For 20 years, the system has been meeting the needs of our customers and the company, but like pipe, wires and equipment, it needs to be replaced. 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.
Natural Gas Pipe Replacement
Avista continues a major project to systematically replace portions of natural gas distribution pipe. The project is replacing hundreds of miles of natural gas pipeline that was installed prior to 1987.
Learn more about the rate-making process here. You can also watch this video and read this one-sheet.