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Avista Asks Idaho Regulators to Include Second Half of Coyote Springs 2 in Resource Base
Request seeks to include recently purchased portion of gas-fired generating plant in base rates and reduce the power cost adjustment surcharge. If request is approved by the IPUC, there will be no change in overall electric rates for Idaho customers.

Spokane, Wash., January 19// -- Avista Corp. (NYSE:AVA) has filed a request with Idaho utility regulators to include the recently purchased second half of the Coyote Springs 2 natural gas-fired generating project in base electric rates.

In its proposal, Avista is asking for a $3.2 million increase in annual revenues, or a 1.9 percent increase in base electric rates. At the same time, Avista is asking the Idaho Public Utilities Commission (IPUC) to approve a 1.9 percent reduction in the company's current Power Cost Adjustment surcharge. If the IPUC approves Avista's request, there will be no change in overall electric rates for Idaho customers.

Avista officials said today's filing addresses only issues related to the Coyote Springs 2 acquisition, including the investment in the plant and the operating costs associated with the project.

Avista recently completed the purchase of the second half of the Coyote Springs 2 generating station (140 megawatts) from Mirant. All approvals for the $62.5 million purchase have been received, and Avista now owns the entire Coyote Springs 2 facility. The 280-megawatt, natural gas powered, combined cycle combustion turbine – located near Boardman, Oregon – began commercial operation in July 2003.

Avista's decision to acquire full ownership of the plant was driven primarily by the fact that the company's long-term resource plan includes the need for additional gas-fired resources to complement its long-term resource portfolio as well as an attractive purchase price, familiarity and experience with the project, the opportunity for sole ownership and control, and proximity to Avista's service area.

"Our filing reflects the company's ongoing efforts to ensure long-term, reliable energy supplies for our customers. Our purchase of the second half of Coyote Springs 2 represents another positive step in that direction," said Scott Morris, president of Avista Utilities. "Our integrated resource plan calls for additional natural gas-fired generation, and Coyote Springs 2 fits well with our long-term electric resource plans."

Approximately 30 percent of the company's annual retail electric and natural gas revenues are derived from Idaho where the company serves 110,000 electric customers and 63,000 natural gas customers.

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 service to 330,000 electric and 305,000 natural gas 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." For more information about Avista, please visit 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.


Media: Catherine Markson



Investors: Jason Lang




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