Avista receives $15M in settlement proceeds from CA energy market litigation Avista announced the completion of a litigation settlement with various California parties that resulted in Avista Energy, an unregulated indirect subsidiary of Avista Corp, receiving $15M in net settlement proceeds on June 23. The litigation was related to the prices paid in the California spot markets during the years 2000 and 2001. The settlement agreement was finalized and filed with the Federal Energy Regulatory Commission, or FERC, in March, and FERC approved the settlement in early June. This will result in Avista Energy recognizing an increase in pre-tax earnings of approximately $15M, or $10M after-tax. These amounts were not included in Avista Corp.'s original earnings guidance issued for 2014. Avista Corp. will update its earnings guidance for 2014 during its Q2 earnings call in early August.
Avista requests natural gas price decrease in Idaho Avista filed its annual Purchased Gas Cost Adjustment in Idaho which could see an overall 14.5% decrease in their natural gas rates on Nov. 1 if approved by the Idaho Public Utilities Commission. Avista's natural gas revenues would decrease by $10.3M or approximately 14.5%. Avista does not mark up the cost of natural gas purchased to meet customer needs, so the filing does not increase or decrease company earnings.