Avista reaches multi-party settlement in Idaho general rate cases

SPOKANE, Wash., Oct. 23, 2017 (GLOBE NEWSWIRE) -- Avista (NYSE:AVA) and multiple parties to the company’s electric and natural gas general rate cases have reached a settlement agreement that has been submitted to the Idaho Public Utilities Commission (IPUC or Commission) for its consideration. If approved, new rates would take effect Jan. 1, 2018 and Jan. 1, 2019. 

If approved, the settlement agreement is designed to increase annual billed electric revenues by $12.9 million, or 5.6 percent, effective Jan. 1, 2018, and by $4.5 million, or 2.3 percent, effective Jan. 1, 2019. For natural gas, the settlement agreement is designed to increase annual billed revenues by $1.2 million, or 1.9 percent, effective Jan. 1, 2018, and by $1.1 million, or 1.8 percent on Jan. 1, 2019. The settlement revenue increases are based on a 9.5 percent return on equity (ROE) with a common equity ratio of 50 percent.

“This settlement agreement will provide new rates in Idaho that are fair and reasonable for our customers, the Company and our shareholders,” said Dennis Vermillion, Avista Corp. senior vice president and president of Avista Utilities. “This outcome provides us the opportunity to continue to earn a fair return in Idaho and supports Avista’s efforts to invest in and maintain our infrastructure so we can continue to provide the reliable energy our customers expect. In addition, the two-year rate plan would create a stay-out period where Avista would not file a new general rate case for a new rate plan to be effective prior to Jan. 1, 2020, providing customers with some predictability in their expected future energy prices.”

Residential Customer Electric Bills 2018 and 2019
If the settlement is approved, a residential electric customer using an average of 910 kilowatt hours per month would see:

• A billed increase of $5.22 per month, or 5.9 percent, for a revised monthly bill of $93.34, effective Jan. 1, 2018. The total revised average monthly bill amount includes the effects of an increase in the basic charge of $0.25, from $5.75 to $6.00 per month.
• A billed increase of $2.16 per month, or 2.3 percent, for a revised monthly bill of $95.50, effective Jan. 1, 2019. There would be no change to the basic charge for 2019 rates.

If approved, the electric billed increases by service schedule for 2018 are as follows: