Decrease in electric and natural gas prices would take effect in the fall
SPOKANE, Wash., July 02, 2018 (GLOBE NEWSWIRE) -- Avista (NYSE:AVA) has made its annual fixed cost adjustment (FCA) filings with the Idaho Public Utilities Commission (IPUC or Commission) that if approved, are designed to decrease overall electric revenues by $7.4 million or 2.9 percent effective Oct. 1, 2018 and decrease overall natural gas revenues by $2.7 million or 4.5 percent effective Nov. 1, 2018.
The rate adjustments are driven primarily by a higher level of customer usage in 2017 due in part to a colder than normal winter. The FCA mechanisms do not apply to Avista’s Electric Extra Large General and Street Lighting Service Schedules, nor to its Natural Gas Interruptible and Transportation Service Schedules.
These annual filings are required, have no impact on the company’s earnings and are not related to the proposed acquisition of Avista by Hydro One.
If 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 $84.33, a decrease of $4.16 per month, or approximately 4.7 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||-4.7%|
|General Service - Schedules 11 & 12||-1.8%|
|Large General Service - Schedules 21 & 22||-2.2%|
|Extra Large General Service - Schedule 25||0.0%|
|Extra Large General Service - Schedule 25P||0.0%|
|Pumping Service - Schedules 31 & 32||-1.9%|
|Street & Area Lights - Schedules 41-49||0.0%|
If approved, residential natural gas customers in Idaho using an average of 63 therms per month would see their monthly bills decrease from $48.31 to $46.28, a decrease of $2.03 per month, or approximately 4.2 percent. The proposed natural gas rate changes would be effective Nov. 1, 2018.
The requested natural gas rate changes by rate schedule are:
|General Service - Schedule 101||-4.2%|
|Large General Service - Schedules 111 & 112||-5.6%|
|Interruptible Service - Schedules 131 & 132||0.0%|
|Transportation Service - Schedule 146||0.0%|
Electric and Natural Gas Fixed Cost Adjustment
Avista’s electric and natural gas fixed cost adjustment (FCA) 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 or 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. Generally, under the FCA Avista’s revenues are adjusted each month based on the number of customers. 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.
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, 2017 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.
SOURCE: Avista Corporation