AVISTA CORPORATION (NYSE:AVA) Files An 8-K Other Events
Item 8.01 Other Events.
filed two requests with the Washington Utilities and Transportation
Commission (UTC or Commission) to recover costs related to power
supply as well as infrastructure, system maintenance, and
technology.
that would update and reset power supply costs, effective September
1, 2017. Avista Corp. has requested an overall increase in billed
electric rates of 2.9 percent (designed to increase annual electric
revenues by $15.0 million). The key drivers behind this request are
related to the expiration of a capacity sales agreement with
another utility and an increase in the price of natural gas to fuel
the Company’s generating plants. Updated power supply costs were
not approved by the Commission in January 2017, as requested by
Avista Corp. Any new rates resulting from the power cost rate
adjustment would expire upon the conclusion of the electric general
rate case (discussed in further detail below), if approved.
cases. Avista Corp. has filed three-year rate plans for electric
and natural gas and has requested the following for each year
(dollars in millions):
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Electric
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Natural Gas
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Effective Date
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Proposed Revenue Increase
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Proposed Base Rate Increase
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Proposed Revenue
Increase
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Proposed Base
Rate Increase
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May 1, 2018 (1)
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$
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61.4
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12.5
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%
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$
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8.3
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9.3
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%
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May 1, 2019 (2)
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$
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14.0
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2.5
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%
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$
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4.2
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4.4
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%
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May 1, 2020 (2)
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$
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14.4
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2.5
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%
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$
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4.4
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4.4
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%
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(1)
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The $61.4 million electric revenue increase includes the
$15.0 million power cost rate adjustment discussed above. |
to update power supply costs through a Power Supply Update, the
effects of which would also go into effect on May 1, 2019 and May
1, 2020. The requested revenue increases for 2019 and 2020 do not
include any power supply adjustments.
percent with a common equity ratio of 50.0 percent and a 9.9
percent return on equity.
would not file another general rate case until June 1, 2020, with
new rates effective no earlier than May 1, 2021.
the costs associated with Avista Corp.’s capital investments to
replace infrastructure that has reached the end of its useful life,
as well as respond to the need for reliability and technology
investments required to build an integrated energy services grid.
Among the capital investments included in the filings are:
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Major hydroelectric investments at the Little Falls and
Nine Mile hydroelectric plants. |
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Generator maintenance at the Kettle Falls biomass plant
that will ensure efficient generation and operations. |
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The ongoing project to systematically replace portions of
natural gas distribution pipe in Avista Corp.’s service area that were installed prior to 1987, as well as replacement of other natural gas service equipment. |
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Transmission and distribution system and asset maintenance,
such as wood pole replacements, feeder upgrades, and substation and transmission line rebuilds to maintain reliability for the Company’s customers. |
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Technology upgrades that support necessary business
processes and operational efficiencies that allow the Company to effectively manage the utility and serve customers. |
and issue a decision.
About AVISTA CORPORATION (NYSE:AVA)
Avista Corporation is an electric and natural gas utility with certain other business ventures. The Company operates through two business segments: Avista Utilities, and Alaska Electric Light and Power Company (AEL&P). Avista Utilities segment generates, transmits and distributes electricity, and distributes natural gas serving electric and natural gas customers in eastern Washington and northern Idaho and natural gas customers in parts of Oregon. AEL&P is a utility providing electric services in Juneau, Alaska. It operates other businesses, including sheet metal fabrication, venture fund investments and real estate investments, as well as certain other investments of Avista Capital, Inc., a subsidiary of the Company. Through Advanced Manufacturing and Development (AM&D), doing business as METALfx, the Company performs custom sheet metal fabrication of electronic enclosures, parts and systems for the computer, construction, telecommunication, renewable energy and medical industries. AVISTA CORPORATION (NYSE:AVA) Recent Trading Information
AVISTA CORPORATION (NYSE:AVA) closed its last trading session up +0.45 at 43.29 with 198,742 shares trading hands.