Avista seeks gas rate boost in Idaho

Avista’s natural gas customers in Idaho will be paying more per month by Nov. 1 if two requests filed Thursday are approved by state regulators.

The Spokane-based utility also requested a slight increase in electric rates.

If the requests are approved by the Idaho Public Utilities Commission, the average Idaho residence would see natural gas rates rise by about $3.50 per month, or about 4.3 percent, Avista said in a news release. That means a residence using 65 therms per month would pay about $83.91.

The higher natural gas rates are due to the increased price the utility is paying for the commodity. The company said that although the price of natural gas has fallen from post-hurricane levels during late-2005, the average cost of gas for the coming year is higher than what it costs this year.

While acknowledging that rate increases are difficult on people with limited incomes, a commission spokesman said he was glad to see rate requests fall back to a “reasonable amount.” Last year, Avista requested a 23.8 percent increase and Intermountain Gas, which serves the southern half of the state, requested a 29.6 percent increase. This year, Avista requested a 3.2 percent increase and Intermountain is not requesting an increase, said Gene Fadness, a commission spokesman.

Brian Hirschkorn, Avista’s manager of retail pricing, said the short-term market for natural gas is much more volatile than the long-term market.

The company also would like to provide additional funding for conservation programs because of increased customer participation. The program reimburses customers who install conservation measures and use less natural gas as a result. To date, the program has saved 4.5 million therms of natural gas, enough to supply 5,300 homes for a year, the release said. All customers pay a surcharge to fund conservation, said Bruce Folsom, Avista’s manager of demand side management.

“All customers benefit through us having to buy fewer therms,” Folsom said.

Avista Utilities would make no additional profit from either of these requested rate changes, the news release said.

On the electric side, the company asked to increase a credit related to benefits from the Bonneville Power Administration. The BPA provides residential and small-farm customers a share of benefits associated with federal hydroelectric projects. That would result in a 50-cent per month rate reduction for residential customers.

However, combined with the end of a 91-cent-per-month credit resulting from the company’s 2000 sale of a power plant near Centralia, the average electric customer would actually see a 44-cent-per-month increase in electric bills.

Earlier this month, Avista asked Washington regulators to approve higher natural gas and electric rates for customers in that state. Both rate requests were in the 8 percent range.