Spokane7
54°
August 26, 2010 in City
Avista seeks rate increase for Washington customers
Proposed hike is about half of utility’s initial request
Avista customers in Washington could see their electric rates go up 7.2 percent and their natural gas rates rise 3.2 percent starting Dec. 1, according to an agreement pending state approval.
Under terms of a rate case settlement agreement announced Wednesday, the rate hikes would boost Avista’s annual electric revenues by $29.5 million and natural gas revenues by $4.6 million.
If approved by the Washington Utilities and Transportation Commission, the new rates would mean a residential customer using an average of 1,000 kilowatt-hours of electricity per month would pay an additional $5.62 per month, for a revised bill of $77.41.
A residential customer using an average of 69 therms of natural gas per month would see a $2.17 monthly increase, for a revised bill of $62.20.
As part of the proposed settlement agreement, Avista would not ask for another rate increase before April 1, 2011.
Avista’s request to raise the basic service charge for electric and natural gas customers to $10 per month was rejected in the proposed settlement. If adopted by the commission, the fee would remain at $6 per month.
Company officials called the proposed settlement a “fair and reasonable outcome” for the utility’s customers and shareholders. All parties in the settlement made concessions, said Dennis Vermillion, president of Avista Utilities.
Avista’s original request in March was for an electric rate increase of 13.4 percent, or $55.3 million in increased annual electric revenues. The lower increase reflects in part an $11.7 million decrease in power supply costs, primarily due to the decline in natural gas fuel prices.
The Spokane-based utility in March also had requested to raise natural gas rates by an average of 6 percent, or $8.5 million in additional annual revenue. The lower amount in the settlement is due in part to additional natural gas storage to be used starting in May.
Avista executives said the utility needs the extra revenue to pay for improvements to the company’s dams, transmission systems and network of neighborhood distribution lines, as well as lock in new long-term contracts with outside electricity providers to meet the needs of a growing population.
Other parties to the settlement are the staff of the state Utilities and Transportation Commission, the Public Counsel Section of the Washington Office of the Attorney General, Northwest Industrial Gas Users, Industrial Customers of Northwest Utilities and the Energy Project.
The commission is not bound by the settlement.
Staff writer Becky Kramer contributed to this report.
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lewis8457 on August 26 at 7:41 a.m.
Winter is coming time to get that bucket out so they can fill it for million dollar bonuses.
liarsinnews on August 26 at 8:15 a.m.
Who trusts the Washington Utilities Commission anyway? The WUC appears to be in bed with AVISTA for years and years, so to answer my own question, the WUC does.
chouligirl on August 26 at 10:27 a.m.
Another rate increase. When does this ever get under control? What gives Avista the right to constant rate increases and a continual profit increase? The consumers have no way to control this monster and apparently the WA Utilities Commission is unable or unwilling, or worse, in collusion with AVISTA. The WA Utilities Commission just keeps saying yes.
How about saying NO to further increases! As in ZERO percent. AVISTA’s profits are huge and they do not need rate increases. They can come up with all kinds of trumped up resaons for needing more, more, more…but in fact, they continue to make huge profits. Where’s any fairness there?
Look at the economy and see how the rest of us are doing. We’re struggling to get by and yet AVISTA wants more regardless. What was your salary & bonuses last year Mr. Vermillion and AVISTA bigwigs, not to mention the shareowners?? And to state “As part of the proposed settlement agreement, Avista would not ask for another rate increase before April 1, 2011” is insulting to everyone. Well, what a deal for us. So for 3 whole months AVISTA won’t be asking for another rate increase. Gosh, thanks for all your concern.
How about the utility corporations become nonprofit and give us all a break!
509ifyourlucky on August 26 at 1:11 p.m.
The power company is the only business that is making any money and they are doing it off the backs of you and I. This is the main reason that groceries and everything else keeps going up.
misjustice on August 26 at 1:49 p.m.
SNAP is going to be very busy this heating season, trying to help people pay their power bills. I find it more than ironic that federal subsidies (read our tax dollars) are used to fund SNAP which then, in turn, are handed over to the protected monopoly known as Avista. When will the insanity end? [Again, a rhetorical question, Dan the spin man, no answer wanted.]
greyhound2 on August 26 at 1:54 p.m.
The rubber-stamp commissioners appointed by politicians who are funded by campaign contributions paid for by Avista ratepayers, will ensure that this monopoly utility enjoys yet another year of record breaking profits for the benefit of over-paid executives and its blood-sucking Wall Street stockholders.
chouligirl on August 26 at 5:28 p.m.
So…how does this get stopped? Who at the WA Utility Commmission should EVERYONE contact? If anyone knows, plz post some information.
Unless AVISTA is in the red, they shouldn’t get any rate increase…period! Where is our protection from monopolies?
Every day I get closer to welcoming a socialist government. This capitalsim crap isn’t working. The only thing corporations understands anymore is GREED.
misjustice on August 26 at 5:40 p.m.
@ chouligirl; try Rob McKenna’s office, our State’s Attorney General.
http://www.atg.wa.gov/
Click on the Contact link on the upper right hand side of the homepage.
Also the Washington Untilities and Transportation Commission. They have a contact link in the top row of tabs on their homepage.
http://wutc.wa.gov/fileacomplaint
tea42 on September 01 at 8:14 a.m.
Oh and how nice. They have agreed not to ask for another increase for 6 months!! Oh my god. What if you or I went to our boss at work every six months or so and requested a 13% raise. “but Mr. Boss man I need a new house, my kids want new clothes and bla bla bla. We would be laughed at and eventually fired.
philipgregory on September 02 at 6:58 a.m.
Take a look at Avista’s vehicle fleet.
They are all new, or newer, and high priced.
I saw a new Dodge Ram pickup, a high-priced model, with thousands of dollars of extras.
And, Avista NEEDS a rate increase?
No, but they will juggle the numbers until it convinces the utilities commission (not hard to do).