Avista Corp 8-K, filed Jun 16, 2021
Avista Corp (AVA)
About this 8-K
Avista Corp filed this 8-K on June 16, 2021, reporting on events of June 14, 2021.
Items reported
- Item 8.01: Other events
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code:
Web site: http://www.investor.avistacorp.com
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(Former name or former address, if changed since last report) |
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Securities registered pursuant to Section 12(b) of the Act:
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 8 – Other Events
Item 8.01 Other Events.
On June 14, 2021, Avista Corporation (the Company) and all parties to the Company’s Idaho electric and natural gas general rate cases reached a settlement agreement that has been submitted to the Idaho Public Utilities Commission (the IPUC) for consideration. If approved, new rates would take effect September 1, 2021 and 2022.
The proposed rates under the settlement agreement are designed to increase annual base electric revenues by $10.6 million (or 4.3 percent), effective September 1, 2021, and $8.0 million (or 3.1 percent), effective September 1, 2022.
For natural gas, the proposed rates under the settlement agreement are designed to decrease annual base natural gas revenues by $1.6 million (or 3.7 percent), effective September 1, 2021, and increase annual base revenues by $0.9 million (or 2.2 percent), effective September 1, 2022.
The parties have agreed to use the customer tax credits included in the Company’s original filing to offset overall proposed changes to base electric and natural gas rates over the two-year plan. The revenue increases described above are net of this offset.
The primary element of the difference in the agreed upon base revenues in the settlement agreement from the Company’s original request is the continued recovery of costs for the Company’s wind generation power purchase agreements, which will include Palouse Wind and Rattlesnake Flat, through the Power Cost Adjustment mechanism rather than through base rates, as well as reductions in overall net power supply costs, together totaling $5 million.
The settlement is based on a 9.4 percent return on equity with a common equity ratio of 50 percent and a rate of return on rate base of 7.05 percent.
The Company’s original request included an increase of annual electric base rate revenues of $24.8 million (or 10.1 percent), effective September 1, 2021, and $8.7 million (or 3.2 percent), effective September 1, 2022. For natural gas, the original request included an increase of annual base revenues by $0.1 million (or 0.1 percent), effective September 1, 2022, and $1.0 million (or 2.2 percent), effective September 1, 2022.
The recommendation to the IPUC by the parties to approve the settlement agreement is not binding on the IPUC itself.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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AVISTA CORPORATION |
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(Registrant) |
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Date: |
June 16, 2021 |
/s/ Mark T. Thies |
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Mark T. Thies |
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Executive Vice President, |
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Chief Financial Officer, and Treasurer |