Avista proposes cut in electric rates

Electric bills for Avista Utilities’ residential and small farm customers in Washington and Idaho would drop by about $1.50 per month under a proposal submitted to state regulators Friday.

Avista is asking to raise a credit given to customers as their share of the benefits of the federal hydroelectric system run by the Bonneville Power Administration.

If approved, the credit would take effect Nov. 1 and last for a year, said Avista’s spokeswoman, Catherine Markson. A small farm is one that also serves as a residence and is not a corporation.

“The level of the credit ebbs and flows,” Markson said. “We’ll true it up again next year.”

For a Washington customer using 1,000 kilowatt-hours per month, the additional credit would cause bills to drop by $1.44. For Idaho customers, bills would drop by $1.60 a month. The higher credits would cause bills to be about 2.5 percent lower, Avista said in a news release. However, actual reductions will vary based on usage.

The credits are designed to pass along the projected balance of benefits received through the federal power system, as well as benefits due to be received next year. The increase in the credits will have no effect on Avista’s net income.

Also pending before state regulators is Avista’s proposal to increase natural gas rates for Washington customers. Natural gas and electric rates just went up in Idaho.