Spokane7
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August 17, 2009 in City
Agencies object to Avista’s proposed rate hikes
Two Washington state agencies on Monday filed strong objections to a requested 18.5 percent electricity rate hike by Spokane’s Avista Utilities.
Both the staff of the Washington Utilities and Transportation Commission and the Attorney General’s Public Counsel Section filed written testimony opposing the increase. Both agencies also oppose Avista’s proposed 2.4 percent rate hike for natural gas customers.
The three-member utilities commission, which is not bound by its staff recommendation, will make a final decision on Avista’s rate requests by Dec. 23.
The utilities commission staff recommended that Avista get a 5.15 percent electric revenue increase. It also proposes that Avista’s natural gas customers see only a 0.13 percent hike in 2010.
Rather than any increase, the public counsel section, which acts as a state consumer advocate, recommended Avista’s electric customers in Washington earn a rate decrease of 3 percent next year.
The section staff also said Avista’s natural gas customers should pay just a 0.2 percent increase — a net increase in revenue of $400,000 instead of $4.9 million requested.
The public counsel section claimed Avista’s rate requests should be denied because the utility cannot justify several significant corporate expenses and because Avista should not be allowed to pass on to ratepayers an $18 million contract the power utility has with an Idaho power plant.
The counsel’s testimony called Avista’s power purchase from a Lancaster, Idaho, power plant “imprudent” and said its cost should be borne by shareholders, not ratepayers.
Simon ffitch, the Attorney General’s counsel section chief, drew specific attention to one Avista expense being cited by the utility to justify the electricity rate proposal — a projected $30 million expense for natural gas during 2010.
But natural gas prices have dropped significantly since January when Avista submitted that request, ffitch added.
“We went back and asked Avista to calculate the power cost (for natural gas) using today’s prices,” ffitch said. “The amount is $30.4 million less.”
Avista responded to the testimony filed Monday by saying both sides are taking part in the normal rate case process.
“We are in the process of reviewing the testimony which we received this afternoon. After all of the input in a rate case is considered, the utility commission will set rates that are fair and just, while allowing Avista the opportunity to earn a reasonable profit,” the company said in an e-mail response.
Avista has until Sept. 11 to file rebuttal testimony in support of its rate proposals.
City consolidating management of its land in effort to save money 
DocTom on August 17 at 8:46 p.m.
I read in a previous article where the president of Avista earned well in excess of 2 million last year…not too bad for SlowCan. Let’s see…the “average” college grad earns $35,000. for the first 5 years, coupled with an “average” $28,000. student debt load. They work to make ends meet and now good ole Avista tells us that we can pay an extra 18.5% . I have a great idea. Why not ask the president of Avista to take a modest pay cut, just like everyone else, and make a modest 1 million? In addition, why not follow biz throughout America and begin to cut back on expenses/payroll? Who knows, maybe the “average” Spokane person could afford to heat their home this winter. Greed, Greed, and More Greed is always coming out of a “protected public utility”. Why?
wa7qzr on August 18 at 1:23 a.m.
Hey, state agencies aren’t the only ones who object to Avista’s rate hike requests. Most of us, even non-students, former students, whatever, who have no choice but to receive their “services” object too! What’s with all this “expansion” they talk about? Why don’t these idiotic real estate developers have to foot the bill for that? How much of that represents payoffs to BPA? It was better when it was just good old WWP & “Reddy Kilowatt.” At least, there was some semi-local control. Now, you can’t get anyone of substance on the phone! Maybe it’s time to gather in front of their offices with torches & pitchforks. Do you think we could destroy this Frankenstein monster private corporation pretending to be a public utility? Maybe they would just pack-up and leave. We could disconnect from BPA’s power-theft grid and become an isolated PUD, supplying our own power. Since the lunatics drove all our heavy industry (and the blue-collar jobs) out of business, we don’t need to be connected to Grand Coulee. Surely someone besides myself knows how to run a hydroelectric generator; and do it in spite of those Sierra Club lunatics. Maybe they would leave too. Frustrating.
philipgregory on August 18 at 9:02 a.m.
These rate increases target the working-class and poor inequitably. The highest users of Avista power and gas see little or no increase at those levels of usage. Those with low usage pay the full increase.
This if not just unfair, but an outrage the government hasn’t put a stop to it.
Also, Avista gets around the profit limit set by government by siphoning off money to various ‘programs’, long-term capital purchase, maintenance/repair expenses, while giving exhorbitant bonuses along with vacation packages etc.
Dan_at_Avista on August 18 at 11:07 a.m.
It’s tough to know where to begin with the comments noted here. Let’s start with Michael McCarrey – no need for torches and pitchforks. The article above is detailing the transparent public process that you can be a part of. It’s all out in the open. This article simply states that two agencies have stated their opinions on Avista’s request. It would certainly be a shocker for everybody if these parties didn’t counter to a rate increase request, so it’s not a big surprise and part of the process of setting energy prices. The Washington Utilities and Transportation Commission has up to 11 months to make a decision on a general rate case, so you’ll be hearing about this request a few times in the media and from Avista. If you want to dive deeper into Avista, visit our blog at www.avistautilities.com/blog add a comment to any post for all to see. We’ve been talking to customers on the blog for months now, and I welcome more participants.
wyoboy on August 18 at 11:51 a.m.
I can confirm that natural gas prices are significantly lower now than late last year. The utilities in Wyoming are going for gas rate decreases, not increases.
Current gas future contract prices are $3.00 mcf depeding on the location. Avista gas meter prices with the add ons are $9.00 mcf. An mcf is 1000 cubic feet of gas. The gas bill measure “therm” is a different amount of gas with a heat measure (BTU) component.
There are in excess of 14,000 shut in gas wells in Wyoming due to low prices and lack of pipeline and storage capacity.
One small line operated by Williams goes into the northwest.
The State of Washington needs to prod FERC to move along the two proposals to increase gas transmission capacity into the northwest and push for morel gas storage capacity. Avista is a joint partner in the pitifully small storage facilities in Washington and Oregon. If part of the rate increase is to increase gas storage capacity, this should be supported.