Avista makes annual price adjustment requests in

SPOKANE, Washington, Aug.31, 2021 (GLOBE NEWSWIRE) – Avista has filed two annual rate adjustment requests with the Washington Utilities and Transportation Commission (UTC or Commission) which, if approved, would result in an increase in rates for the natural gas and lower electricity prices, effective November 1, 2021.

These annual declarations have no impact on the company’s results.

Residential exchange program
The first adjustment relates to the Bonneville Power Administration (BPA) residential exchange program. The Residential Exchange Program offers a share of the benefits of the Columbia River federal power grid to residential and smallholder utility-owned utility farm customers 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 electricity rates. The benefit Avista will receive from BPA starting in October 2021 will translate into a higher level of benefits than is currently passed on to eligible customers. Due to the higher level of benefits, the proposed rate change for residential and small farm customers is designed to reduce revenues by approximately $ 0.8 million, or 0.1%.

Adjustment of the cost of purchased gas (PGA)
The second adjustment is the Annual Purchased Gas Cost Adjustment (PGA) deposit. If approved, Avista’s request aims to increase annual natural gas revenues by approximately $ 17.5 million or 10.6% effective November 1, 2021.

The increase is mainly due to wholesale natural gas costs which are higher than the level currently included in the rates. Over the past decade, wholesale natural gas prices have remained very low, however, in recent months wholesale natural gas prices have increased significantly. The market factors that explain the rise in prices are an overall increase in demand and a decrease in supply. Wholesale gas prices today are lower than they were 20 years ago, although costs fluctuate from year to year.

The AMP is filed annually to balance the actual cost of wholesale natural gas purchased by Avista to serve customers with the amount included in the rates. This includes the cost of natural gas as well as the cost of transporting natural gas on interstate pipelines to the Avista local distribution network. Approximately 30% of an Avista natural gas customer’s bill is the combined cost of purchasing natural gas from the wholesale market and transporting it to the Avista network. These costs fluctuate up and down based on market prices and are not marked up by Avista. The remaining 70% covers the cost of delivering natural gas – the equipment and people needed to provide safe and reliable service.

Customer invoices
Overall, electricity price changes have been around 0.5% lower per year and natural gas prices 1.7% higher, on average, since January 2016. This is lower than inflation rate during this period, relative to the consumer price index. On average, Avista’s total monthly residential electrical service cost is 35% lower than the national average, for investor-owned utilities.

Electric
If approved, residential electric Washington customers using an average of 914 kilowatt-hours per month would see their monthly bill drop from $ 81.22 to $ 80.94, down $ 0.28 per month, or about 0.3%.

If approved, residential electricity customers would see the following rate adjustments:

Residential service – Annex 1 & 2 (0.3 )%
General service – Hours 11 and 12 0.0 %
Major general services – Hours 21 and 22 0.0 %
Extra-large general service – Annex 25 0.0 %
Pumping service – Appendices 31 and 32 0.0 %
Street lights and zone lights – Hours 41-48 0.0 %
Globally (0.1 )%

Natural gas
Residential natural gas Customers using an average of 66 therms per month would see their monthly bill increase from $ 58.23 to $ 64.04, an increase of $ 5.81 per month, or about 10.0%.

The percentage change for electricity and natural gas customers varies according to the tariff schedule and depends on the amount of energy used by the customers of the respective tariff schedules.

If approved, natural gas customers would see the following rate adjustments:

General Services – Annexes 101 and 102 9.6 %
Major general services – Annexes 111 and 112 15.5 %
Interruptible sales service – Appendices 131 & 132 11.8 %
Transportation service – Schedule 146 0.0 %
Globally 10.6 %

Avista serves more than 260,000 electricity customers and 170,000 natural gas customers in Washington. To help customers proactively manage their energy consumption, Avista offers a number of energy efficiency programs, energy savings information, discounts and incentives. Avista also offers energy bill payment assistance programs and payment options for eligible customers. Information on these programs and customer options is available 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 activities. Avista Utilities is our operating division that provides electricity to 395,000 customers and natural gas to 362,000 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 a subsidiary of Avista that provides retail electricity service in the city and borough of Juneau, Alaska through its subsidiary Alaska Lighting and Electric Company. Avista stock trades under the ticker symbol “AVA”. For more information on Avista, please visit www.avistacorp.com.

This press release contains forward-looking statements regarding the current expectations of the company. Forward-looking statements are all statements other than historical fact. Such 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 control of the company, which could cause actual results to differ materially. and expectations. These risks and uncertainties include, in addition to those discussed here, all of the factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and the Quarterly Report on Form 10-Q for the quarter. closed. June 30, 2021.

SOURCE: Avista Corporation

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Eleanor C. William