Avista Makes Annual Price Adjustment Requests in Washington and Idaho - Seite 2

Wildfire Balancing – Applicable to Washington Electric
The Wildfire Expense Balancing account tracks the difference in wildfire expenses incurred by Avista to address the growing frequency of extreme and dangerous wildfires in Avista’s service territory to the base level of expense approved by the Commission. The difference is rebated to or collected from customers annually. The rate increase proposed today reflects the higher level of expense incurred above the amount presently included in customer’s rates.

Residential Exchange Program – Applicable to Washington Electric
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. Due to fluctuations in usage, Avista rebated to customers a level of benefits that was higher than the level of benefits received from BPA. Through this filing Avista is seeking to slightly decrease the level of benefits provided to qualifying customers in order to return the over-rebated balance.

Low Income Rate Assistance Program – Applicable to Washington Electric and Natural Gas
The Low Income Rate Assistance Program, or LIRAP, provides bill assistance to income eligible customers with a household income less than or equal to 200% Federal Poverty Level (FPL) or 80% Area Median Income (AMI), whichever is greater. While this program has historically provided lump-sum grants to customers, LIRAP will transition to an income-based bill discount – in addition to offerings to help customers manage their past due balances, or arrearages – on October 1, 2023. This new bill assistance model will expand LIRAP to serve more customer than ever before, therefore requiring increased funding to do so. The rate increase proposed reflects this higher level of funding needed.

Insurance Balancing – Applicable to Washington Electric and Natural Gas
The Insurance Expense Balancing account tracks the difference in insurance expense incurred by Avista to the base level of expense approved by the Commission. The difference is rebated to or collected from customers annually. The rate changes proposed reflect the higher level of expense incurred for electric customers and lower expense incurred for natural gas customers, compared to the amount presently included in customer’s rates.