SPOKANE, Wash., June 14, 2023 (GLOBE NEWSWIRE) -- Avista (NYSE: AVA), the Staff of the Idaho Public Utilities Commission, Clearwater Paper Corporation, Idaho Forest Group, LLC and Walmart Inc., parties to the Company’s electric and natural gas general rate cases, have reached a settlement agreement that has been submitted to the Idaho Public Utilities Commission for its consideration, and which would resolve all issues in the proceeding. The remaining joint party, the Idaho Conservation League / NW Energy Coalition, did not join in the Settlement.
If approved, the settlement agreement is designed to increase annual base electric revenues by $22.1 million or 8.0%, effective Sept. 1, 2023, and by $4.3 million or 1.4%, effective Sept. 1, 2024. For natural gas, the settlement agreement is designed to increase annual base natural gas revenues by $1.3 million or 2.7%, effective Sept. 1, 2023, and by $.003 million or 0.01%, effective Sept. 1, 2024. The settlement capital structure includes a 9.4% return on equity (ROE) with a common equity ratio of 50% and a rate of return (ROR) on rate base of 7.19%.
“This settlement agreement will provide new rates in Idaho that are fair and reasonable for our customers, the Company, and our shareholders,” said Dennis Vermillion, Avista president and CEO. “We view this outcome as being constructive as it provides us with the opportunity to earn a fair return in Idaho and supports Avista’s efforts to invest in and maintain our infrastructure so we can continue to provide the reliable energy our customers expect.”
Residential Customer Bills
If the settlement is approved, a residential electric customer using an average of 927 kilowatt hours per month would see an 11.9% billed increase of $10.15 per month for a revised monthly bill of $95.55 effective Sept. 1, 2023, and a 2.2% billed increase of $2.06 per month for a revised monthly bill of $97.61 effective Sept. 1, 2024. A residential natural gas customer using an average of 64 therms per month would see a billed 1.6% increase of $1.20 per month for a revised monthly bill of $74.62 effective Sept. 1, 2023, and a 0.0% billed increase of $0.03 per month for a revised monthly bill of $74.65 effective Sept. 1, 2024.
| 2023 & 2024 Electric Revenue Impact by Rate Schedule | |||
| Rate Schedule | Description | 2023 Billing Change | 2024 Billing Change |
| Residential Service | Schedule 1 | 11.8% | 2.1% |
| General Service | Schedules 11 & 12 | 3.0% | 0.5% |
| Large General Service | Schedules 21 & 22 | 10.8% | 1.9% |
| Extra Large General Service | Schedule 25 | 3.0% | 0.5% |
| Extra Large General Service 25P | Schedule 25P | 2.9% | 0.5% |
| Pumping Service | Schedules 31 & 32 | 10.9% | 2.0% |
| Street & Area Lights | Schedules 41 - 49 | 2.9% | 0.4% |
| Total | 8.7% | 1.6% | |
| 2023 & 2024 Natural Gas Revenue Impact by Rate Schedule | |||
| Rate Schedule | Description | 2023 Billing Change | 2024 Billing Change |
| General Service | Schedule 101 | 1.6% | 0.0% |
| Large General Service | Schedules 111 & 112 | 0.0% | 0.0% |
| Transportation Service | Schedule 146 | 0.0% | 0.0% |
| Total | 1.2% | 0.0% | |
The actual percentage rate change will vary by customer rate schedule and will depend on how much energy a customer uses.
Avista serves more than 141,000 electric and 92,000 natural gas customers in Idaho.
Avista’s Original Request
Avista’s original request was designed to increase annual electric base revenues by $37.5 million (or 14.7% on a billed basis) effective Sept. 1, 2023, and $13.2 million (or 4.5% on a billed basis) effective Sept. 1, 2024. For natural gas, the rate request was designed to increase annual base revenues by $2.8 million (or 2.7% on a billed basis) effective Sept. 1, 2023, and $0.1 million (or 0.1% on a billed basis) effective Sept. 1, 2024.
The electric and natural gas requests were based on a proposed rate of return (ROR) on rate base of 7.59% with a common equity ratio of 50% and a 10.25% return on equity (ROE).
Customer Resources
To assist customers in managing their energy bills, Avista offers services for customers such as comfort level billing, payment arrangements and Customer Assistance Referral and Evaluation Services (CARES), which provide assistance to special-needs customers through referrals to area agencies and churches for help with housing, utilities, medical assistance and other needs. Avista also provides funding for energy assistance programs Project Share and the company’s LIRAP, which are administered through community action agencies.
Avista provides energy efficiency and outreach programs that 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 the operating division that provides electric service to 403,000 customers and natural gas to 369,000 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, 2022 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.
SOURCE: Avista Corporation
Contact:
Media: Lena Funston (509) 495-8090, lena.funston@avistacorp.com
Investors: Stacey Wenz (509) 495-2046, stacy.wenz@avistacorp.com
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