SPOKANE, Wash., Dec. 02, 2019 (GLOBE NEWSWIRE) -- Avista (NYSE: AVA) received approval from the Idaho Public Utilities Commission (IPUC or Commission) of the all-party settlement that was filed on Oct. 11, 2019, concluding the Company’s electric general rate case. New electric rates are effective as of Dec. 1, 2019.
The approved rates are designed to decrease annual billed electric revenues by $7.18 million, or 2.84%, effective Dec. 1, 2019. The approved revenue decreases are based on a 9.5% return on equity (ROE) with a common equity ratio of 50% and a rate of return (ROR) on rate base of 7.35%, which is a continuation of current levels. This outcome is in line with the Company’s expected margin in this case.
“The Commission’s decision provides new electric rates in Idaho that are reasonable for our customers, the Company and our shareholders,” said Dennis Vermillion, Avista president and CEO. “This outcome provides us the opportunity to continue to earn a fair return in Idaho and supports Avista’s efforts to make key capital investments so we can continue to provide the reliable energy our customers expect.”
Customer Electric Bills
A residential electric customer using an average of 900 kilowatt hours per month could expect to see a billed decrease of $0.86 per month, or 1.0%, for a revised monthly bill of $84.45, effective Dec. 1, 2019.
The actual percentage rate change will vary by customer class and will depend on how much energy a customer uses.
The average electric billed decreases by service schedule beginning Dec. 1, 2019 are as follows:
|Rate Schedule||Dec. 1, 2019 Billing Decrease|
|Residential Service - Schedule 1||-1.0%|
|General Service - Schedules 11 & 12||-8.2%|
|Large General Service – Schedules 21 & 22||-4.4%|
|Extra Large General Service – Schedule 25||-1.0%|
|Extra Large General Service – Schedule 25P||-1.0%|
|Pumping Service – Schedules 31 & 32||-1.5%|
|Street & Area Lights – Schedules 41 – 49||0.0%|
Avista serves more than 133,000 electric customers in Idaho.
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 the operating division that provides electric service to 392,000 customers and natural gas to 357,000 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 Sept. 30, 2019.
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