Avista’s Annual Rate Adjustment Filings Propose Increases in Washington and Idaho

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SPOKANE – (GLOBE NEWSWIRE) – Avista has filed annual rate adjustment applications with the Washington and Idaho Public Utilities Commissions that, if approved, will result in higher electricity and natural gas rates. in Washington and natural gas prices in Idaho, effective November 1, 2022

Washington Electric Adjustment Deposits
Two electrical adjustments have been filed which, if approved, are designed to change overall electrical revenues as follows:

  1. Balancing wildfire expenses: 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 adjustment to the cost of purchased natural gas. If approved, Avista’s application is intended to increase overall natural gas revenues by approximately $25.0 million or 12.3%.

Idaho Natural Gas Adjustment Deposits
Two natural gas adjustments have been filed which, if approved, are designed to change the overall natural gas revenues as follows:

  1. Purchased gas cost adjustment: increase of approximately $11.2 million or 12.7%
  2. Energy efficiency of natural gas: increase of approximately $2.6 million or 3.0%

Purchased Gas (PGA) Cost Adjustment – ​​Washington State and Idaho Natural Gas
PGA applications are generally filed annually to balance the actual cost of wholesale natural gas purchased by Avista to serve customers with the amount currently included in customer rates. Avista does not make a profit or mark up the wholesale price of natural gas; PGAs ensure that customers pay what Avista pays, dollar for dollar, only at a more predictable and stable rate throughout the year. Approximately 55% of an Avista natural gas customer’s bill is the combined cost of purchasing natural gas from the wholesale market and delivering it to Avista’s system.

This rate adjustment is primarily attributable to higher wholesale natural gas prices. Since the last annual PGA filings were made in 2021, the price of wholesale natural gas has been rising 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 increasing frequency of extreme and dangerous wildfires in Avista’s service territory at the expenditure basis approved by the Commission. The difference is refunded or collected from customers each year. The rate increase proposed today reflects the higher level of expenses incurred beyond the approved amount.

Residential Exchange Program – Washington Electric
The Residential Exchange Program provides a share of the benefits of the Columbia River Federal Electric System to residential and small farm customers of investor-owned utilities in the Pacific Northwest, including Avista. Avista applies the benefits it receives, which generally fluctuate from year to year, to customers as a credit in their monthly electricity rates. Due to fluctuating usage, Avista reimbursed customers for a slightly lower level of benefits than the level of benefits received from BPA. Through this deposit, Avista seeks to slightly increase the level of benefits offered to eligible customers in order to repay the underpaid balance.

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

Electric customer invoices
Washington: If approved, residential electric customers in Washington using an average of 932 kilowatt hours per month would see their monthly bills increase from $85.07 to $85.87, an increase of $0.80 per month, or about 0. 9%.

If approved, residential electric customers would see the following rate adjustments:
Residential service – Schedule 1 & 2 0.9%
General service – Schedules 11 and 12 0.9%
Large general service – Hours 21 and 22 0.9%
Extra Large General Services – Schedules 25 and 25I 0.9%
Pumping service – Schedules 31 & 32 0.9%
Street and area lighting – Appendices 41 to 48 0.9%
Globally 0.9%

Natural gas customer bills
Washington: If approved, residential natural gas customers using an average of 67 thermal baths per month would see their monthly bills increase from $72.66 to $81.59, an increase of $8.93 per month, or about 12, 3%.

The percentage change varies by rate schedule and depends on the amount of energy used by customers on the respective rate schedules. If approved, natural gas customers would see the following rate adjustments:

General services – annexes 101 and 102 12.1%
Large general services – annexes 111 and 112 14.4%
Interruptible sales service – Annex 131 & 132 3.5%
Transportation Service – Schedule 146 0.0%
Globally 12.3%

Idaho: If approved, residential natural gas customers using an average of 63 thermal baths per month would see their monthly bills increase from $61.30 to $70.52, an increase of $9.22 per month, or about 15, 0%.

The percentage change varies by rate schedule and depends on the amount of energy used by customers on the respective rate schedules. If approved, natural gas customers would see the following rate adjustments:

General Services – Schedule 101 15.0%
Large general services – annexes 111 and 112 18.3%
Interruptible sales service – Appendix 131 & 132 0.0%
Transportation Service – Schedule 146 0.0%
Globally 15.7%

To help customers proactively manage their energy usage, Avista offers services to those who may need and qualify for assistance in managing their energy bills, such as comfort level billing, terms of payment and special circumstantial referrals to local agencies and churches for assistance with housing, utilities, medical assistance and other needs. Avista also funds energy assistance programs administered by community action agencies.

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

About Avista Corp.
Avista Corp. is an energy company involved in the generation, transmission and distribution of energy as well as other energy-related activities. 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 a subsidiary of Avista which, through its subsidiary AEL&P, provides retail electric service to 17,000 customers in the city and borough of Juneau, Alaska. Our shares are traded under the symbol “AVA”. For more information about Avista, please visit www.avistacorp.com.

This press release contains forward-looking statements regarding the Company’s current expectations. Forward-looking statements are all statements other than historical fact. These statements speak only as of the date of the press 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 expectations. These risks and uncertainties include, in addition to those discussed here, all factors discussed in the company’s report and 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 December 31, 2021.

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