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(AVISTA CORP. LOGO) EXHIBIT 99(a)
NEWS RELEASE
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CONTACT: MEDIA: Catherine Markson (509) 495-2916 catherine.markson@avistacorp.com
INVESTORS: Angela Teed (509) 495-2930 angela.teed@avistacorp.com
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FOR IMMEDIATE RELEASE:
February 6, 2004
1:45 p.m. EST
AVISTA FILES GENERAL RATE CASE WITH IDAHO REGULATORS
Company seeks approval of electric price increase of 11 percent
above current rates and a natural gas price increase of 9.2 percent
SPOKANE, WASH.: Avista Corp. (NYSE:AVA) has filed a request with Idaho
regulators to increase electric prices by 11 percent above current rates and
natural gas prices by 9.2 percent. Avista's request is designed to increase
electric revenues by $18.9 million annually and natural gas revenues by $4.8
million annually. The Idaho Public Utilities Commission (IPUC) generally has up
to seven months to review Avista's rate case filing.
Avista has not had a general electric price increase in Idaho since
1999, and this would be the first general natural gas price increase in Idaho
since 1990. Avista has invested $81 million in its electric generation and
transmission system, another $54 million in electric distribution, and $73
million in its natural gas system since its last general rate increases - a
total of more than $200 million of additional utility plant to meet the needs of
its customers.
In addition, Avista's current rates in Idaho are based on the company's
1997 operating costs on the electric side of its business and 1987 operating
costs on the natural gas side. Accordingly, existing rates do not reflect
Avista's current costs of providing electric and natural gas service to its
customers.
Under the company's proposal, the monthly bill for a residential
electric customer with average monthly usage of 1,000 kilowatt-hours of
electricity would increase from $60.15 to $68.37, an increase of $8.22 per
month. The monthly bill for a residential gas customer using an average of 70
therms of natural gas would increase from $57.68 to $63.26, an increase of $5.58
per month. Avista is proposing that the basic monthly charge for residential
electric service be increased from $4.00 to $5.00 and the natural gas basic
monthly charge be increased from $3.28 to $5.00.
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PAGE 2 AVISTA FILES GENERAL RATE CASE WITH IDAHO REGULATORS
On the electric side, the request will be for a 24 percent overall
change in base rates. However, Avista is requesting a reduction in its current
Power Cost Adjustment surcharge, which would reduce the overall impact on
customers to an 11 percent increase above current rates. In 2001, the IPUC
approved a 19.4 percent surcharge that allowed Avista to begin recovering costs
associated with the record-low streamflow conditions and high market prices
incurred by the company during the energy crisis of 2000 and 2001. If the
commission approves Avista's proposal, the remaining PCA balance would be
recovered over a two-year period at a reduced rate.
"Our filing reflects the company's efforts to ensure long-term and
reliable energy supplies for our customers. To accomplish that goal, we've made
significant investments in new generating resources and in electric and natural
gas infrastructure since our last general rate case filings," said Scott Morris,
president of Avista Utilities. "We have been quite purposeful in successfully
meeting our objective of owning or controlling electric resources exceeding 100
percent of our retail load. Our focus has been on controlling our own destiny
and reducing reliance on potentially volatile energy markets."
Morris also noted that the rate request represents another step in the
company's financial recovery and its ongoing efforts to restore its investment
grade credit rating, which was lowered during the 2000-01 energy crisis.
Among the issues Avista is asking the commission to consider in its
electric and natural gas rate filings are the company's investment in the Coyote
Springs 2 generating station, operation and maintenance costs, increased power
supply costs, and increased financing costs since the company's last electric
and natural gas general rate cases.
Avista recognizes the impact of price increases on its customers,
especially on those who have the most difficulty paying their energy bill.
Avista's ongoing commitment to customers also includes support of Project Share,
an energy assistance program. Other customer programs include CARES, a program
assisting those who face challenges paying their bills; Comfort Level Billing, a
plan that averages annual energy bills into equal monthly payments; and ongoing
energy conservation and efficiency programs.
Avista also offers rebates for residential weatherization (wall, floor,
ceiling, ducts) and high efficiency water heaters and furnaces. The company
offers energy conservation education, including workshops for seniors, energy
use guides and home visits by meter shop personnel to help customers reduce
energy costs on a long-term basis.
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PAGE 3 AVISTA FILES GENERAL RATE CASE WITH IDAHO REGULATORS
Approximately 30 percent of the company's annual retail electric and
natural gas revenues are derived from Idaho where the company serves 109,000
electric customers and 62,000 natural gas customers. Avista has added 8,275
electric customers and 9,040 natural gas customers in Idaho in the past five
years.
For additional information regarding Avista's Idaho rate filing, visit
the Idaho Rate Information Center at www.avistautilities.com.
THE ACCOMPANYING IMAGE IS AN INTEGRAL PART OF THIS NEWS RELEASE.
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 a company operating division that provides
electric and natural gas service to customers in four western states. Avista's
non-regulated subsidiaries include Avista Advantage and Avista Energy. Avista
Corp.'s stock is traded under the ticker symbol "AVA" and its Internet address
is www.avistacorp.com.
Avista Corp. and the Avista Corp. logo are trademarks of Avista
Corporation. All other trademarks mentioned in this document are the property of
their respective owners.
This document contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, including statements
regarding the company's current expectations for future financial performances,
the company's current plans or objectives for future operations, or factors
which may affect the company in the future. Such statements speak only as of the
date of the document and are subject to a variety of risks and uncertainties,
many of which are beyond the company's control and which could cause actual
results to differ materially from the expectations.
The following are among the important factors that could cause actual
results to differ materially from the forward-looking statements: changes in the
utility regulatory environment; the impact of regulatory and legislative
decisions; the potential effects of any energy-related legislation; the impact
from the potential formation of a Regional Transmission Organization and/or an
Independent Transmission Company; the impact from the implementation of the
FERC's proposed wholesale power market rules; volatility and illiquidity in
wholesale energy markets; wholesale and retail competition; future streamflow
conditions that affect the availability of hydroelectric resources; outages at
any company-owned generating facilities; unanticipated delays or changes in
construction costs; changes in weather conditions; changes in industrial,
commercial and residential growth and demographic patterns; the loss of
significant customers and/or suppliers; failure to deliver on the part of any
parties from which the company purchases and/or sells capacity or energy;
changes in the creditworthiness of customers and energy trading counterparties;
the company's ability to obtain financing; changes in future economic conditions
in the company's service territory and the United States in general; the
potential for future terrorist attacks; changes in tax rates and/or policies;
changes in, and compliance with, environmental and endangered species laws,
regulations, decisions and policies; the outcome of legal and regulatory
proceedings concerning the company or affecting its operations; employee issues,
including changes in collective bargaining unit agreements, strikes, work
stoppages or the loss of key
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PAGE 4 AVISTA FILES GENERAL RATE CASE WITH IDAHO REGULATORS
executives; changes in actuarial assumptions and the return on assets with
respect to the company's pension plan; increasing health care costs and the
resulting effect on health insurance premiums; and increasing costs of
insurance, changes in coverage terms and the ability to obtain insurance.
For a further discussion of these factors and other important factors,
please refer to the company's Annual Report on Form 10-K for the year ended Dec.
31, 2002, and the company's quarterly report on Form 10-Q for the quarter ended
September 30, 2003. The company undertakes no obligation to update any
forward-looking statement or statements to reflect events or circumstances that
occur after the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to time, and it
is not possible for management to predict all of such factors, nor can it assess
the impact of each such factor on the company's business or the extent to which
any such factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statement.
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