AVISTA CORPORATION (NYSE:AVA) Files An 8-K Other EventsItem 8.01 Other Events.
On October 20, 2017, Avista Corporation (Avista Corp. or the Company) and multiple parties to the Company's electric and natural gas general rate cases reached a settlement agreement that has been submitted to the Idaho Public Utilities Commission for its consideration. If approved, new rates would take effect January 1, 2018 and January 1, 2019.
The settlement agreement is a two-year rate plan and if approved, will have the following electric and natural gas base rate changes each year (dollars in millions):
|
Electric |
Natural Gas |
|||||||
|
Effective Date |
Revenue Increase |
Base Rate Increase |
Revenue Increase |
Base Rate Increase |
||||
|
January 1, 2018 |
$ |
12.9 |
5.2 |
% |
$ |
1.2 |
2.9 |
% |
|
January 1, 2019 |
$ |
4.5 |
1.9 |
% |
$ |
1.1 |
2.7 |
% |
The settlement agreement is based on a rate of return on rate base (ROR) of 7.61 percent with a common equity ratio of 50.0 percent and a 9.5 percent return on equity (ROE).
As a part of the two-year rate plan, if approved, the Company would not file a new general rate case for a new rate plan to be effective prior to January 1, 2020.
Avista Corp.'s Original Request
The Company's original request was a two-year rate plan and requested the following electric and natural gas base rate changes each year (dollars in millions):
|
Electric |
Natural Gas |
|||||||
|
Effective Date |
Proposed Revenue Increase |
Proposed Base Rate Increase |
Proposed Revenue Increase |
Proposed Base Rate Increase |
||||
|
January 1, 2018 |
$ |
18.6 |
7.5 |
% |
$ |
3.5 |
8.8 |
% |
|
January 1, 2019 |
$ |
9.9 |
3.7 |
% |
$ |
2.1 |
5.0 |
% |
The original requests were based on a proposed ROR of 7.81 percent with a common equity ratio of 50.0 percent and a 9.9 percent ROE.
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.