Avista seeks rate increases - again!

Avista on Thursday, Oct. 11 filed requests with the Idaho Public Utilities Commission to increase electric and natural gas rates in Idaho.

The requests primarily seek recovery of costs associated with capital investments and other expenses to maintain Avista's system, according to a company press release. The IPUC has up to seven months to review the filings and issue a decision.

If the IPUC approves the requests, an electric residential customer using an average of 930 kilowatt hours per month would see an increase of 5.3 percent or $4.20 per month, or about 14 cents a day, for a revised bill of $82.89.

Natural gas customers using an average of 60 therms per month would see an increase of 7.8 percent or $4.12, or about 14 cents a day, for a revised monthly bill of $56.67.

Avista proposed an overall net electric rate increase of 4.6 percent, to produce $11.4 million in additional electric revenue. Avista has also requested a $4.6 million increase in natural gas revenues, or a 7.3 percent overall increase. The electric and natural gas filings reflect a proposed rate of return on rate base of 8.46 percent with a common equity ratio of 50 percent and a 10.9 percent return on equity.

Effective Oct. 1, Idaho customers saw decreases in both natural gas and electric rates because of lower natural gas prices and lower power supply costs, after the IPUC approved several rate decrease requests Avista filed in July.

Rates for natural gas customers in Idaho have decreased twice this year, in part due to lower wholesale natural gas prices, dropping by approximately 12 percent overall in 2012.

"It's good that natural gas prices and power costs have been lower, because we've been able to pass those savings through to customers with rate decreases," said Avista Chairman, President and Chief Executive Officer Scott L. Morris. "But the other costs of delivering energy to customers safely and reliably continue to rise. This is the primary reason for our request to increase rates.

"We expect to invest approximately $250 million each year for the next three to five years to continue updating and maintaining our system to serve our customers' energy needs."

A copy of Avista's application is available for public review at the offices of the IPUC and Avista and at www.puc.idaho.gov. The IPUC will begin a review of the application and will seek public input on the company's request. Additional information about the rate request is at www.avistautilities.com.