SPOKANE, WA--(Marketwired - December 23, 2016) - Avista (
"The Commission's decision is irreconcilable with the evidence presented in the rate case by Avista, as well as that provided by the Commission Staff," said Scott Morris, chairman, president and chief executive officer of Avista Corp. "In response, Avista will consider all available remedies toward a reasonable end result that supports our ability to continue to provide safe and reliable energy for our customers and a fair return for our shareholders."
The Commission's order and Avista's response
In its order, the Commission ruled that Avista did not demonstrate that the Company's current revenue is insufficient for covering costs and providing the opportunity to earn a reasonable return during the 2017 rate period. The Commission also ruled that Avista did not demonstrate that the Company's capital expenditures and increased operating costs are both necessary and immediate.
Avista's response to the Commission's order in the petition points to evidence in the case that demonstrates, contrary to the Commission's findings, the following:
The Commission Staff itself supported revenue increases of over $20 million. Commissioner Jones dissented and did not support the decision. In his dissent, Commissioner Jones supported an electric revenue increase of $26 million, and a natural gas increase of $2.4 million.
Reconsideration
With the filing of the petition for reconsideration, the Commission has 20 days to take action, which could include denying reconsideration, or extending the time for its deliberation. If the Commission grants reconsideration, it may deliver a decision revising or affirming its previous order.
Rehearing
In the event that the Commission does not grant reconsideration of the existing evidence, Avista requests that the Commission grant the opportunity for rehearing of the 2016 general rate case, which may, at the discretion of the Commission, allow for additional evidence to be entered into the record. The purpose of the rehearing is to bring matters to the attention of the Commission that were not previously presented or otherwise provide additional argument to arrive at an alternative resolution. This process, if invoked, may take several months, and if additional hearings are to be conducted, a new procedural schedule would be determined by the Commission.
About Avista Corp.
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides electric service to 375,000 customers and natural gas to 335,000 customers. Its service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.6 million. Alaska Energy and Resources Company is an Avista subsidiary that provides retail electric service in the city and borough of Juneau, Alaska, through its subsidiary Alaska Electric Light and Power Company. Avista stock is traded under the ticker symbol "AVA." For more information about Avista, please visit www.avistacorp.com.
This news release contains forward-looking statements regarding the company's current expectations. Forward-looking statements are all statements other than historical facts. Such statements speak only as of the date of the news release and are subject to a variety of risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2015 and the Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2016.
Contact Information:
Contact:
Media:
Casey Fielder
(509) 495-4916
casey.fielder@avistacorp.com
Investors:
Lauren Pendergraft
(509) 495-2998
lauren.pendergraft@avistacorp.com
Avista 24/7 Media Access
(509) 495-4174