SPOKANE, Wash., July 30, 2018 (GLOBE NEWSWIRE) -- 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 $2.5 million or 1.0 percent effective Oct. 1, 2018.
These annual filings have no impact on the company’s earnings and are not related to the proposed acquisition of Avista by Hydro One.
Power Cost Adjustment (PCA)
The first adjustment is Avista’s annual 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. It is a true-up to reflect the actual cost of power to serve customers.
The proposed PCA rate adjustment would rebate to customers approximately $9.8 million effective Oct. 1, 2018. The rebate is primarily associated with power supply costs that were lower than those included in retail rates, due to lower wholesale electric and natural gas prices. As a result of Avista’s PCA filing last year, the Commission approved a rebate of approximately $7.2 million. That rebate will end Sept. 30, 2018. The net effect of the expiring rebate, and the proposed rebate, is an overall decrease in revenue of approximately 1.0 percent, or $2.6 million.
Residential Exchange Program
The second adjustment is related to the Bonneville Power Administration (BPA) 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, including Avista. Avista applies the benefits it receives, which typically fluctuate from year to year, to customers as a credit in their monthly electric rates. Due to fluctuations in usage, Avista rebated to customers a level of benefits that was slightly higher than the level of benefit received from BPA. As a result, through this filing Avista is seeking to slightly reduce the level of benefits provided to qualifying customers in order to recover the over-rebated balance. The proposed revenue increase for residential and small farm customers is approximately $0.1 million, or an overall increase of approximately 0.04 percent.
Customer Bills Resulting from the Filings
If both of the filings are approved, residential electric customers in Idaho using an average of 910 kilowatt hours per month would see their monthly bills decrease from $88.49 to $87.79, a decrease of $0.70 per month, or approximately 0.8 percent. The proposed electric rate changes would be effective Oct. 1, 2018.
The requested electric rate changes by rate schedule are:
| Residential Service - Schedule 1 | -0.8% | ||
| General Service - Schedules 11 & 12 Large General Service - Schedules 21 & 22 Extra Large General Service - Schedule 25 Extra Large General Service - Schedule 25P Pumping Service - Schedules 31 & 32 Street & Area Lights - Schedules 41-49 Overall | -0.8% -1.0% -1.6% -1.6% -0.9% -0.3% -1.0% |
Customer Bills Resulting from all Annual Electric Adjustments
In addition to the filings discussed above, the Company previously made its annual Fixed Cost Adjustment (FCA) filing on July 2, 2018 with the same proposed effective date of Oct. 1, 2018. If the FCA, PCA and BPA filings are approved, residential electric customers in Idaho using an average of 910 kilowatt hours per month would see their monthly bills decrease from $88.49 to $83.64, a decrease of $4.85 per month, or approximately 5.5 percent. The proposed electric rate changes would be effective Oct. 1, 2018.
Rate Application Procedure
Avista’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 (http://www.puc.idaho.gov/rssfeeds/rss.htm) 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.
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 our operating division that provides electric service to 385,000 customers and natural gas to 350,000 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 1.6 million. Alaska Energy and Resources Company is an Avista subsidiary that provides retail electric service 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.
This news release contains forward-looking statements regarding the company’s current expectations. Forward-looking statements are all statements other than historical facts. Such statements speak only as of the date of the news release and are subject to a variety of risks and uncertainties, many of which are beyond the company’s control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2018 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.
Contact:
Media: Casey Fielder (509) 495-4916 casey.fielder@avistacorp.com
Investors: Lauren Pendergraft (509) 495-2998 lauren.pendergraft@avistacorp.com
Avista 24/7 Media Access (509) 495-4174