Avista
(NYSE: AVA) has made annual rate adjustment
filings with the Idaho Public Utilities Commission (IPUC or
Commission) that, if approved, are designed to increase overall
electric revenues by approximately $6.1 million or 2.4% effective
Oct. 1, 2023 and decrease overall natural gas revenue by
approximately $0.4 million or 0.4% effective Nov. 1, 2023. These
annual filings have no impact on Avista’s earnings.
Electric Adjustment FilingsFour
annual electric adjustments were filed, that if approved, are
designed to change overall electric revenues effective Oct. 1, 2023
as follows:
- Power Cost Adjustment (PCA): an
increase of approximately $10.9 million or 4.3%
- Fixed Cost Adjustment (FCA): a
decrease of approximately $1.9 million or 0.7%
- Electric Energy Efficiency: a
decrease of approximately $3.1 million or 1.2%
- Bonneville Power Administration Residential Exchange (ResEx)
Program: an increase of approximately $0.2 million or 0.1%
Natural Gas Adjustment
FilingThe natural gas adjustment request is the annual
natural gas FCA. If approved, Avista’s request is designed to
decrease overall natural gas revenues by approximately $0.4 million
or 0.4% effective Nov. 1, 2023.
Customer Bills Resulting from these
FilingsIf the electric PCA, FCA, Energy Efficiency and
ResEx filings are approved, residential electric customers in Idaho
using an average of 927 kilowatt hours per month would see their
monthly bills increase from $85.40 to $86.54, an increase of $1.14
per month, or approximately 1.3%. The proposed electric rate change
would be effective Oct. 1, 2023.
The net effect, on an annual revenue basis, for
the requested electric rate changes by rate schedule are as
follows:
|
Residential Service - Schedule 1General Service - Schedules 11
& 12Large General Service - Schedules 21 & 22Extra Large
General Service - Schedule 25Extra Large General Service - Schedule
25PPumping Service - Schedules 31 & 32Street & Area Lights
- Schedules 41-49Overall |
|
1.4% 2.9% 2.2% 5.2% 5.6% 2.4%-0.4% 2.4% |
If the natural gas FCA filing is approved,
residential natural gas customers in Idaho using an average of 64
therms per month would see their monthly bills decrease from $73.42
to $73.29, a decrease of $0.13 per month, or approximately 0.2%.
The proposed natural gas rate change would be effective Nov. 1,
2023.
The net effect, on a revenue basis, for the
requested natural gas rate change by rate schedule are as
follows:
|
General Service - Schedule 101Large General Service - Schedules 111
& 112Interruptible Service - Schedules 131 &
132Transportation Service - Schedule 146Overall |
|
-0.2%-1.2% 0.0% 0.0%-0.4% |
Power Cost Adjustment (PCA)The
PCA is an annual rate adjustment made to reflect the difference
between the actual cost of generating and purchasing electric power
to serve customers and the cost currently included in customer
rates. Over the last year, power supply costs were higher than
those included in retail rates due to higher wholesale electric and
natural gas prices.
Fixed Cost Adjustment (FCA)The
electric and natural gas 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 other factors. Under the
FCA, Avista’s revenues are adjusted each month based on the number
of customers. The annual difference between revenues based on sales
and the number of customers is surcharged or rebated to customers
beginning in the following year.
The proposed FCA rate adjustments are primarily
driven by variations in 2022 customer usage related to weather and
savings from participating in efficiency programs. 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.
Energy Efficiency AdjustmentThe
Energy Efficiency Adjustment is related to the funding of Avista’s
electric 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 reduction proposed reflects the
lower level of funding needed to operate the programs in the coming
year.
Residential Exchange
AdjustmentThe 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
benefits received from BPA. Through this filing Avista is seeking
to slightly decrease the level of benefits provided to qualifying
customers in order to return the over-rebated balance.
Rate Application
ProcedureAvista’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.
If you would like to submit comments on the
proposed rate change, you can do so by going to the Commission
website or mailing comments to:
Idaho Public Utilities CommissionP.O. Box
83720Boise, ID 83720-0074
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 411,000 customers and natural gas to 377,000 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 Mar. 31, 2023,
and its Annual Report on Form 10-K for the year ended Dec. 31,
2022.
Avista Corp. and the Avista Corp. logo are
trademarks of Avista Corporation.
SOURCE: Avista Corporation
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