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Idaho Electric and Natural Gas General Rate

On October 19, 2015, Avista Corporation (Avista Corp. or the Company) announced that it has reached a settlement agreement with all interested parties in the Companys electric and natural gas general rate cases in Idaho that, if approved by the Idaho Public Utilities Commission (IPUC), would conclude these proceedings. New rates would take effect January 1, 2016.

If approved, the settlement agreement is designed to increase annual electric base revenues by $1.7 million, or 0.7 percent, and annual natural gas base revenues by $2.5 million, or 3.5 percent. The settlement is based on a rate of return on rate base of 7.42 percent with a common equity ratio of 50 percent and a 9.5 percent return on equity.

The settlement agreement also reflects the following:

an adjustment to capita l additions due to a delay in the completion, from late 2015 to late 2016, of the upgrade of the Company's Nine Mile hydroelectric generation project, which reduced the overall revenue increase by $3.3 million,

the continued recovery of approximately $3.2 million in costs related to the Palouse Wind Project through the Power Cost Adjustment mechanism rather than through base rates,

the extension of certain regulatory amortizations from two years to four years, which reduced the overall revenue increase...