Avista Makes Two Annual Price Adjustment Requests in Idaho

Avista AVA customers could receive a decrease in their electric prices and a slight increase in natural gas prices on Oct. 1 if the Idaho Public Utilities Commission approves two annual price adjustment requests filed today by the company - Residential Exchange Credit and Purchase Gas Cost Adjustment. Residential and small-farm customers using an average of 956 kilowatt-hours per month could receive a $1.77, or 2.11 percent, decrease in their monthly electric bill due to an increase in benefits to be received from the Bonneville Power Administration's Residential Exchange Credit program. The Residential Exchange Credit is paid in its entirety to Avista's approximately 106,000 residential and small-farm electric customers in Idaho and has no impact on company earnings. The increase in benefits is the result of a recent settlement agreement signed by BPA that resolves a long-standing dispute over how the benefits of low-cost hydroelectric power from the federal Columbia River power system are shared by the region's electric customers. All six investor-owned and nearly all consumer-owned utilities, representing over 95 percent of the region's electric customers, are parties to the settlement. Under the settlement agreement, Avista residential and small-farm customers in Idaho will receive approximately $4.4 million in benefits, up from the current $1.8 million customers are currently receiving. Avista also made its annual Purchase Gas Cost Adjustment filing today with the IPUC, requesting an overall 1.53 percent increase in natural gas prices. The annual filing is a true-up that balances the cost of wholesale natural gas purchased by Avista to serve customers with the amount already included in customer rates. The requested increase is the result of a reduction in the refund still being provided to customers from Avista's 2009 PGA filing, which decreased customer rates by about 30 percent. Abundant supplies of natural gas and softening demand for the commodity have continued to keep wholesale natural gas prices at lower levels over the past year. However, the elimination of a portion of that refund results in a slight net increase in overall rates. If the requested increase is approved, natural gas rates for Avista's Idaho customers would remain at levels similar to those in 2004.