Avista Makes Price Adjustment Requests in Washington and Idaho

Rhea-AI Summary

Avista (NYSE: AVA) has filed for annual rate adjustments with utility commissions in Washington and Idaho to increase electric and natural gas rates, effective November 1, 2022. In Washington, electric revenues may rise by approx. $5.1 million (0.9%) for wildfire expenses, while natural gas rates could increase by $25 million (12.3%). Idaho natural gas adjustments may see a revenue rise of $11.2 million (12.7%) and $2.6 million (3.0%). These adjustments result from soaring wholesale gas prices, which have surged since March 2022.

Positive

• Electric revenue increase due to wildfire expense balancing of approx. $5.1 million.
• Increase in natural gas Revenues by approx. $25.0 million (12.3%) in Washington.
• Rate adjustments are intended to balance actual costs with customer rates.

Negative

• Significant increase in natural gas rates for customers in Washington (approx. 12.3%) and Idaho (approx. 15.0%).
• Higher wholesale natural gas prices have driven the adjustments, indicating potential ongoing cost pressures.

Overall changes in electric and natural gas prices would be effective November 1, 2022

SPOKANE, Wash., Sept. 02, 2022 (GLOBE NEWSWIRE) -- Avista (NYSE: AVA) has made annual rate adjustment filings with the utility commissions in Washington and Idaho that, if approved, will result in an increase in electric and natural gas rates in Washington and natural gas rates in Idaho, effective November 1, 2022

Washington Electric Adjustment Filings
Two electric adjustments were filed, that if approved, are designed to change overall electric revenues as follows:

1. Wildfire Expense Balancing: increase of approximately $5.1 million or 0.9%
2. Residential Exchange Program: decrease of approximately $0.2 million or 0.1%

Washington Natural Gas Adjustment Filing
The natural gas adjustment request is the annual natural gas Purchased Gas Cost Adjustment. If approved, Avista’s request is designed to increase overall natural gas revenues by approximately $25.0 million or 12.3%.

Idaho Natural Gas Adjustment Filings
Two natural gas adjustments were filed, that if approved, are designed to change overall natural gas revenues as follows:

1. Purchased Gas Cost Adjustment: increase of approximately $11.2 million or 12.7%
2. Natural Gas Energy Efficiency: increase of approximately $2.6 million or 3.0%

Purchased Gas Cost Adjustment (PGA) - Washington and Idaho Natural Gas
PGA requests are typically 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 55% of an Avista natural gas customer's bill is the combined cost of purchasing natural gas on the wholesale market and transporting it to Avista's system.

This rate adjustment is driven primarily by higher wholesale natural gas prices. Since the last annual PGA filings were made in 2021, the price of wholesale natural gas increased with dramatic sustained increases beginning in late March 2022, with prices reaching levels not seen in over 13 years.

Wildfire Balancing – 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 – 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 credit in their monthly electric rates. Due to fluctuations in usage, Avista rebated to customers a level of benefits that was slightly 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.

Energy Efficiency Adjustment – Idaho Natural Gas
The energy efficiency adjustment is related to the funding of Avista’s natural gas energy efficiency programs. This adjustment aligns the amount that is collected in customer rates with the actual costs to run and deliver the programs. Avista’s energy efficiency programs are designed to provide a financial incentive or rebate for cost-effective energy efficiency measures. The Commission approves the amount of funding for these important programs through a portion of energy rates. The rate increase proposed reflects the higher level of funding needed to operate the programs in the coming years.

Electric Customer Bills
Washington: If approved, residential electric customers in Washington using an average of 932 kilowatt hours per month would see their monthly bills change from $85.07 to $85.87, an increase of $0.80 per month, or approximately 0.9%.

If approved, residential electric customers would see the following rate adjustments:
Residential Service - Schedule 1 & 2	0.9%
General Service - Schedules 11 & 12	0.9%
Large General Service - Schedules 21 & 22	0.9%
Extra Large General Service - Schedule 25 & 25I	0.9%
Pumping Service - Schedules 31 & 32	0.9%
Street & Area Lights - Schedules 41-48	0.9%
Overall	0.9%

Natural Gas Customer Bills
Washington: If approved, residential natural gas customers using an average of 67 therms per month would see their monthly bills change from $72.66 to $81.59, an increase of $8.93 per month, or approximately 12.3%.

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 & 102	12.1%
Large General Service - Schedule 111 & 112	14.4%
Interruptible Sales Service - Schedule 131 & 132	3.5%
Transportation Service - Schedule 146	0.0%
Overall	12.3%

Idaho: If approved, residential natural gas customers using an average of 63 therms per month would see their monthly bills change from $61.30 to $70.52, an increase of $9.22 per month, or approximately 15.0%.

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	15.0%
Large General Service - Schedule 111 & 112	18.3%
Interruptible Sales Service - Schedule 131 & 132	0.0%
Transportation Service - Schedule 146	0.0%
Overall	15.7%

To help customers proactively manage their energy use, Avista offers services to those who may need and qualifies for assistance in managing their energy bills such as comfort level billing, payment arrangements and special circumstantial referrals to area agencies and churches for help with housing, utilities, medical assistance and other needs. Avista also provides funding for energy assistance programs which are administered through community action agencies.

Energy efficiency and outreach programs are also offered which include rebates and incentives as well as tips and resources to help customers manage their energy use and energy bills. Customers can learn more at www.myavista.com.

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 408,000 customers and natural gas to 375,000 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 17,000 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 June 30, 2022, and its Annual Report on Form 10-K for the year ended Dec. 31, 2021.

Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.

SOURCE: Avista Corporation

To unsubscribe from Avista’s news release distribution, send a reply message to lena.funston@avistacorp.com

Contact: 
Media: Casey Fielder (509) 495-4916, casey.fielder@avistacorp.com
Investors: Stacey Wenz (509) 495-4171, stacey.wenz@avistacorp.com
Avista 24/7 Media Access (509) 495-4174

FAQ

What are the new electric rate adjustments for Avista in Washington effective November 1, 2022?

If approved, the electric rates in Washington are expected to increase by approx. $5.1 million, or 0.9%.

How much will natural gas rates increase for Avista customers in Idaho?

In Idaho, natural gas rates may increase by approx. $11.2 million (12.7%) and $2.6 million (3.0%) based on the filings.

When will Avista's new rates take effect?

Avista's proposed rate adjustments are set to take effect on November 1, 2022, pending approval.

Why are Avista's natural gas rates increasing significantly?

The increase in Avista's natural gas rates is primarily due to rising wholesale natural gas prices observed since March 2022.