Avista Makes Annual Price Adjustment Requests in Washington and Idaho

Overall changes in electric and natural gas prices would be effective November 1, 2023.

SPOKANE, Wash., Sept. 01, 2023 (GLOBE NEWSWIRE) -- Avista (NYSE: AVA) has made annual rate adjustment filings with the utility commissions in Washington and Idaho that, if approved, will result in an increase in electric rates and decrease in natural gas rates in Washington, and increase natural gas rates in Idaho, effective November 1, 2023.

Washington Electric Adjustment Filings
Four electric adjustments were filed, that if approved, are designed to change overall electric revenues as follows:

1. Wildfire Expense Balancing: increase of $3.3 million or 0.6%
2. Residential Exchange Program: increase of $1.1 million or 0.2%
3. Insurance Expense Balancing: increase of $0.1 million or 0.0%
4. Low Income Rate Assistance Program: increase of $7.6 million or 1.3%

Washington Natural Gas Adjustment Filings
Two electric adjustments were filed, that if approved, are designed to change overall natural gas revenues as follows:

1. Purchased Gas Cost Adjustment: decrease of $8.1 million or 3.0%
2. Low Income Rate Assistance Program: increase of $4.6 million or 1.7%
3. Insurance Expense Balancing: increase of $10 thousand or 0.0%
   

Idaho Natural Gas Adjustment Filing
One natural gas adjustment was filed that, if approved, is designed to change overall natural gas revenues as follows:

1. Purchased Gas Cost Adjustment: increase of $5.4 million or 5.0%
   

Purchased Gas Cost Adjustment (PGA) – Applicable to Washington and Idaho Natural Gas
PGA requests are typically filed annually to balance the actual cost of wholesale natural gas purchased by Avista to serve customers with the amount presently included in customer’s rates. Avista does not make a profit on, or markup, the wholesale cost of natural gas. PGAs ensure customers pay what Avista pays, dollar for dollar, only at a more predictable and stable rate throughout the year. About 55% of an Avista natural gas customer's bill is the combined cost of purchasing natural gas on the wholesale market and transporting it to Avista's system.

These rate adjustments are driven primarily by higher wholesale natural gas prices observed during this past winter, which were well above the amounts included in rates. That was partially offset by lower forward wholesale natural gas prices for the upcoming PGA year. For Washington, the reduction is largely driven by a reduction in the current seasonal surcharge amortization rate in effect for residential customers, as approved by the Washington Utilities and Transportation Commission last Fall.