Avista makes annual price adjustment filings

COEUR d'ALENE - Avista has made two annual rate adjustment filings with the Idaho Public Utilities Commission that could result in a modest price decrease effective Oct. 1.

These annual filings are separate from the general rate case request filed in June regarding base retail rates in Idaho and have no impact on the company's earnings, a press release stated.

The first adjustment is the Avista's annual Power Cost Adjustment, or PCA.

The PCA is an annual rate adjustment made to reflect the differences between Avista's actual cost of generating and purchasing electric power to serve customers and the cost currently included in customer rates.

"It is a true-up to reflect the actual cost of power to serve customers," said Debbie Simock, a spokeswoman for Avista.

Part of the proposed PCA rate adjustment decrease is related to the expiration of a surcharge customers are currently paying in their retail rates.

Beginning in October 2014, Avista began passing through to customers a one-year surcharge of approximately $7.8 million related to last year's PCA. That surcharge will end Sept. 30.

In addition, power supply costs in the most recent 12 months ending in June were approximately $1 million lower than those included in base retail rates, due primarily to decreased natural gas and wholesale power prices and favorable hydroelectric conditions, the release said.

As a result of the expiration of last year's surcharge and the decreased costs for procuring power last year, the proposed decrease to rates is approximately 3.5 percent, or $8.8 million.

The second electric rate adjustment is related to the Bonneville Power Administration Residential Exchange Program. The 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.

The benefit Avista will receive from BPA starting in October this year will be lower than the current level of benefits being passed through to qualifying customers. As a result of the lower level of benefits, the proposed rate increase to customers is approximately $3.2 million, or an overall increase of approximately 1.3 percent.

If approved by the IPUC, the two proposed electric rate changes would result in a net revenue decrease of approximately 2.2 percent or $5.6 million, effective Oct. 1.

Residential electric customers in Idaho using an average of 929 kilowatt hours per month would see their monthly bills decrease from $85.24 to $84.99, a decrease of 25 cents per month, the release said.

"That is for the residential customer, but other customer groups could see a larger decrease than that," she said, adding commercial customers have an account representative that can help them determine what their savings will be.

Avista'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 homepage at www.puc.idaho.gov. Customers may file written comments related to Avista's filings with the commission.