Avista Makes Annual Price Adjustment Requests in Washington
Avista (NYSE: AVA) has filed annual rate adjustment requests with the Washington Utilities and Transportation Commission. If approved, these adjustments would result in an overall 13.9% decrease in natural gas rates and a 3.5% increase in electric rates for Washington customers, effective November 2024.
Key points:
- Natural gas adjustments include a significant 24.6% decrease in Purchased Gas Cost and an 8.3% increase for Climate Commitment Act compliance.
- Electric adjustments include increases for Low Income Rate Assistance Program (2.3%) and Insurance Expense Balancing (0.7%).
- Residential natural gas customers using 66 therms/month would see bills decrease by $13.66 to $87.20.
- Residential electric customers using 945 kWh/month would see bills increase by $3.82 to $109.58.
Avista (NYSE: AVA) ha presentato richieste di adeguamento tariffario annuali alla Commissione per i Servizi Pubblici e il Traffico dello Stato di Washington. Se approvati, questi adeguamenti porterebbero a una riduzione complessiva del 13,9% delle tariffe per il gas naturale e a un aumento del 3,5% delle tariffe elettriche per i clienti di Washington, a partire da novembre 2024.
Punti chiave:
- Gli adeguamenti per il gas naturale includono una significativa riduzione del 24,6% del Costo del Gas Acquistato e un aumento dell'8,3% per la conformità alla Legge sul Compromesso Climatico.
- Gli adeguamenti elettrici includono aumenti per il Programma di Assistenza Tariffaria per le Famiglie a Basso Reddito (2,3%) e per il Bilanciamento delle Spese Assicurative (0,7%).
- I clienti residenziali di gas naturale che utilizzano 66 therms/mese vedrebbero le loro bollette diminuire di $13,66 a $87,20.
- I clienti residenziali di elettricità che utilizzano 945 kWh/mese vedrebbero le loro bollette aumentare di $3,82 a $109,58.
Avista (NYSE: AVA) ha presentado solicitudes de ajuste anual de tarifas ante la Comisión de Servicios Públicos y Transporte de Washington. Si se aprueban, estos ajustes resultarían en una reducción general del 13.9% en las tarifas del gas natural y un aumento del 3.5% en las tarifas eléctricas para los clientes de Washington, con efecto a partir de noviembre de 2024.
Puntos clave:
- Los ajustes del gas natural incluyen una disminución significativa del 24.6% en el Costo del Gas Comprado y un aumento del 8.3% para el cumplimiento de la Ley de Compromiso Climático.
- Los ajustes eléctricos incluyen aumentos para el Programa de Asistencia Tarifaria para Familias de Bajos Ingresos (2.3%) y el Balance de Gastos de Seguros (0.7%).
- Los clientes residenciales de gas natural que utilizan 66 therms/mes verían sus facturas disminuir en $13.66 a $87.20.
- Los clientes residenciales de electricidad que utilizan 945 kWh/mes verían sus facturas aumentar en $3.82 a $109.58.
Avista (NYSE: AVA)는 워싱턴 주 공공 유틸리티 및 교통 위원회에 연간 요금 조정 요청을 제출했습니다. 승인될 경우, 이러한 조정은 워싱턴 고객을 위한 자연가스 요금 13.9% 인하와 전기 요금 3.5% 인상으로 이어질 것입니다. 2024년 11월부터 적용됩니다.
주요 사항:
- 자연가스 조정은 구매가스비에 대해 24.6%의 큰 인하와 기후 의무 법안 준수를 위한 8.3%의 인상을 포함합니다.
- 전기 조정은 저소득자 요금 지원 프로그램에 대한 2.3% 증가와 보험 비용 균형 조정에 대한 0.7% 증가를 포함합니다.
- 66 therms/월을 사용하는 주거용 자연가스 고객은 청구서가 $13.66 줄어들어 $87.20이 됩니다.
- 945 kWh/월을 사용하는 주거용 전기 고객은 청구서가 $3.82 증가하여 $109.58이 됩니다.
Avista (NYSE: AVA) a déposé des demandes d'ajustement des tarifs annuels auprès de la Commission des services publics et des transports de Washington. Si elles sont approuvées, ces ajustements entraîneraient une réduction globale de 13,9% des tarifs du gaz naturel et une augmentation de 3,5% des tarifs de l'électricité pour les clients de Washington, à compter de novembre 2024.
Points clés :
- Les ajustements du gaz naturel comprennent une réduction significative de 24,6% des coûts du gaz acheté et une augmentation de 8,3% pour la conformité à la loi sur l'engagement climatique.
- Les ajustements électriques comprennent des augmentations pour le programme d'assistance tarifaire aux personnes à faible revenu (2,3%) et pour l'équilibrage des dépenses d'assurance (0,7%).
- Les clients résidentiels utilisant 66 therms/mois de gaz naturel verraient leurs factures diminuer de 13,66 $ à 87,20 $.
- Les clients résidentiels utilisant 945 kWh/mois d'électricité verraient leurs factures augmenter de 3,82 $ à 109,58 $.
Avista (NYSE: AVA) hat Jahresanträge zur Tarifanpassung bei der Washington Utilities and Transportation Commission eingereicht. Wenn genehmigt, würden diese Anpassungen zu einer gesamt 13,9%igen Senkung der Erdgaspreise und zu einer 3,5%igen Erhöhung der Strompreise für die Kunden in Washington führen, die ab November 2024 wirksam wird.
Wichtige Punkte:
- Die Anpassungen für Erdgas beinhalten eine deutliche Senkung um 24,6% der Einkaufskosten für Gas und einen Anstieg von 8,3% zur Erfüllung des Climate Commitment Act.
- Die Anpassungen für Strom beinhalten Erhöhungen für das Programm zur Unterstützung niedriger Einkommen (2,3%) und den Ausgleich der Versicherungskosten (0,7%).
- Haushalte, die 66 therms/Monat für Erdgas verwenden, würden eine Senkung ihrer Rechnungen um $13,66 auf $87,20 sehen.
- Haushalte, die 945 kWh/Monat für Strom verwenden, würden eine Erhöhung ihrer Rechnungen um $3,82 auf $109,58 sehen.
- Overall decrease of 13.9% in natural gas rates, potentially lowering costs for customers
- Significant 24.6% decrease in Purchased Gas Cost Adjustment for natural gas
- Implementation of My Energy Discount program to help eligible customers lower energy bills
- Availability of various customer assistance programs and resources for managing energy usage
- Overall increase of 3.5% in electric rates, potentially raising costs for customers
- 8.3% increase in natural gas rates due to Climate Commitment Act compliance costs
- Increase in Low Income Rate Assistance Program costs for both electric and natural gas customers
Insights
Avista's annual rate adjustment filings present a mixed impact on the company's financials. The 13.9% decrease in natural gas rates could potentially reduce revenue, but this is largely offset by cost reductions in wholesale gas purchases. The 3.5% increase in electric rates should boost revenue, albeit modestly.
Key points to consider:
- The
$74.5 million decrease in Purchased Gas Cost Adjustment is revenue-neutral for Avista, as it's a pass-through cost. - The Climate Commitment Act increase of
$25.2 million for natural gas and the$15.3 million increase for the Low Income Rate Assistance Program in electric rates are significant and may impact profitability. - The overall impact on Avista's bottom line appears to be slightly positive, with potential for improved margins in the electric segment.
Investors should monitor how these rate adjustments affect Avista's customer base and long-term demand, particularly in the natural gas segment where the price decrease is substantial.
Avista's rate adjustments reflect broader trends in energy policy and market dynamics:
- The significant natural gas rate decrease (
13.9% ) aligns with recent trends of lower wholesale gas prices, benefiting consumers but potentially challenging gas utilities' growth prospects. - The Climate Commitment Act's impact (
8.3% increase for gas) showcases the growing influence of climate policies on utility operations and costs. - The expansion of low-income assistance programs in both gas and electric segments indicates a growing focus on energy equity and affordability.
- The modest increase in electric rates (
3.5% ) suggests a balancing act between covering costs (e.g., wildfire expenses) and maintaining competitive pricing.
These adjustments reflect Avista's adaptation to evolving regulatory landscapes and environmental concerns, particularly in Washington state. The company's proactive approach to clean energy implementation and customer assistance programs may position it favorably in a shifting utility market.
From a consumer perspective, Avista's rate adjustments present a mixed bag:
- Natural gas customers will see significant relief with a 13.5% decrease in average monthly bills, which is particularly beneficial given current economic pressures.
- However, electric customers face a 3.6% increase in average monthly bills, which, while modest, may still impact household budgets.
- The expansion of the Low Income Rate Assistance Program is a positive step, potentially helping more vulnerable customers manage their energy costs.
- The introduction of the My Energy Discount program and various billing options demonstrate Avista's efforts to provide flexibility and support to customers.
While the overall impact appears customer-friendly, especially for gas users, it's important to monitor how the electric rate increase affects different customer segments. The company's emphasis on energy efficiency programs and assistance options could help mitigate the impact of rate changes on consumers.
Overall changes would be effective November 1, 2024 for electric customers and November 15, 2024 for natural gas customers
SPOKANE, Wash., Aug. 30, 2024 (GLOBE NEWSWIRE) -- Avista (NYSE: AVA) has made annual rate adjustment filings with the Washington Utilities and Transportation Commission (Commission) that if approved, will result in an overall decrease in natural gas rates of
Washington Natural Gas Adjustment Filings
Four natural gas adjustments were filed, that if approved, are designed to change overall natural gas revenues as follows:
- Purchased Gas Cost Adjustment: decrease of
$74.5 million or24.6% - Climate Commitment Act: increase of
$25.2 million or8.3% - Low Income Rate Assistance Program: increase of
$6.8 million or2.3% - Insurance Expense Balancing: increase of
$0.2 million or0.1%
Washington Electric Adjustment Filings
Five electric adjustments were filed, that if approved, are designed to change overall electric revenues as follows:
- Wildfire Expense Balancing: increase of
$1.4 million or0.2% - Residential Exchange Program: decrease of
$0.7 million or0.1% - Insurance Expense Balancing: increase of
$4.6 million or0.7% - Clean Energy Implementation Plan: increase of
$2.1 million or0.3% - Low Income Rate Assistance Program: increase of
$15.3 million or2.3%
Purchased Gas Cost Adjustment (PGA) – Applicable to Washington Natural Gas
PGA requests are filed annually to balance the actual cost of wholesale natural gas purchased by Avista to serve customers with the amount presently included in customer’s rates. Avista does not make a profit on, or markup, the wholesale cost of natural gas. PGAs ensure customers pay what Avista pays, dollar for dollar, only at a more predictable and stable rate throughout the year. About
The proposed PGA reduction is largely driven due in part to a reduction in the wholesale cost of natural gas, as well as the reduction in a surcharge put into place last year to recover costs included in our August 2023 PGA annual rate filing.
Climate Commitment Act – Applicable to Washington Natural Gas
The CCA, passed by the Washington State legislature and enacted into law in 2021, implements a cap-and-invest program designed to meet emission reduction targets and reduce emissions by
Low Income Rate Assistance Program – Applicable to Washington Electric and Natural Gas
The Low Income Rate Assistance Program, or LIRAP, provides bill assistance to income eligible customers with a household income less than or equal to
Insurance Balancing Account – Applicable to Washington Electric and Natural Gas
The Insurance Expense Balancing account tracks the difference in insurance expense incurred by Avista to the base level of expense approved by the Commission in customer rates. The difference is rebated to, or collected from, customers annually. The rate changes proposed reflect the higher level of expense incurred for electric customers and lower expense incurred for natural gas customers, compared to the approved amount.
Wildfire Balancing Account – Applicable to Washington Electric
The Wildfire Expense Balancing account tracks the difference in wildfire expenses incurred by Avista to address the growing frequency of extreme and dangerous wildfires in Avista’s service territory to the base level of expense approved by the Commission. The difference is rebated to, or collected from, customers annually. The rate increase proposed today reflects the higher level of expense incurred above the approved amount.
Residential Exchange Program – Applicable to Washington Electric
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 reduction in their monthly electric rates. Due to fluctuations in usage, Avista rebated to customers a level of benefits that was lower than the level of benefits received from BPA. Through this filing Avista is seeking to slightly increase the level of benefits provided to qualifying customers in order to return the under-rebated balance.
Clean Energy Implementation Plan – Applicable to Washington Electric
Avista’s Clean Energy Implementation Plan (CEIP) tariff recovers the costs associated with our clean energy transition. These costs include a “Named Communities Investment Fund” (NCIF), which helps assist with the equitable distribution of CEIP energy and non-energy benefits and reduction in burdens to Vulnerable Populations and Highly Impacted Communities (Named Communities). In addition to the NCIF, this tariff recovers the costs for additional resources necessary for implementation of Avista’s CEIP and associated conditions to the CEIP.
Effect on Customer Bills
Natural Gas Customer Bills
Washington: If approved by the Commission, residential natural gas customers in Washington using an average of 66 therms per month would see their monthly bills change from
The percentage change varies by rate schedule and is dependent upon how much energy customers on the respective rate schedules use. If approved, natural gas customers would see the following rate adjustments:
| General Service - Schedule 101 | (14.2)% | ||
| Large General Service - Schedules 111 & 112 | (18.6)% | ||
| Interruptible Sales Service - Schedules 131 & 132 | |||
| Transportation Service - Schedule 146 | |||
| Overall | (13.9)% | ||
Customers served on Transportation Service Schedule 146 procure their own wholesale natural gas and interstate pipeline transportation service. As such, those customers do not receive the effects of the reduction due to the PGA.
Electric Customer Bills
Washington: If approved by the Commission, residential electric customers in Washington using an average of 945 kilowatt hours/month would see their monthly bills change from
The percentage change varies by rate schedule and is dependent upon how much energy customers on the respective rate schedules use. If approved, residential electric customers would see the following rate adjustments:
| Residential Service - Schedules 1, 7 & 8 | |||
| General Service - Schedules 11, 12, 13, 17 & 18 | |||
| Large General Service - Schedules 21, 22 & 23 | |||
| Extra Large General Service - Schedules 25 & 25I | |||
| Pumping Service - Schedules 31 & 32 | |||
| Street & Area Lights - Schedules 41-48 | |||
| Overall | |||
Customer Resources
When customers need help with their energy use and billing, Avista has ways to assist. In Washington, Avista recently launched My Energy Discount, a personalized monthly bill discount program to help eligible customers lower their energy bills. The program offers more inclusive eligibility guidelines, quick and easy enrollment, and a two-year discount term. In addition, billing options, such as Comfort Level Billing, preferred due date, and payment arrangements, give customers more control over how their energy costs are spread out.
For help with managing energy usage, Avista’s Energy Manager and home energy audit tools, as well as energy-saving tips, videos and money-saving rebates for energy-efficient upgrades, are available. In addition, Avista provides local community action agencies with funding for eligible customers who need emergency grants, home weatherization and heating system improvements. Customers with special health or financial circumstances can also work directly with our Customer Assistance Referral and Evaluation Services (CARES) team to be connected with resources for help with housing, other utilities, medical assistance, and more. For more information on assistance options, customers can visit www.myavista.com/assistance.
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 418,000 customers and natural gas to 382,000 customers. Our service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.7 million. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 18,000 customers in the city and borough of Juneau, Alaska. Our 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 and the Quarterly Report on Form 10-Q for the quarter ended Jun. 30, 2024, and its Annual Report on Form 10-K for the year ended Dec. 31, 2023.
Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.
SOURCE: Avista Corporation
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FAQ
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