Idaho Avista rates rising

Avista’s Idaho customers could see a 6.6 percent rate hike in their electric bill by Oct. 1, along with a corresponding 1.9 percent increase in natural gas rates.

The Spokane-based utility said Monday it reached a proposed settlement over rates with the Idaho Public Utilities Commission staff, two of its industrial customers, the Idaho Conservation League and Community Action Partnership Association, which helps low-income families weatherize their homes and pay their utility bills.

The settlement must still be reviewed by the three-member Public Utilities Commission, which has the final say on setting rates. Avista has asked the commission for a decision by Oct. 1.

Avista executives said the extra money is needed 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.

If the rate settlement is approved, an average household’s electric bill would increase by $5.37 each month to $86.27.

An average household’s natural gas bill would increase by $1.71 each month for a total of $59.40.

In the settlement process, Avista agreed to use $17.5 million in credits from deferred state income taxes to blunt the impact of rate hike over the next two years. The proposed electric rate increase is actually 9.3 percent. Avista also asked for a 2.6 percent surcharge for 12 months to help the utility recover from last winter’s low snowpack and reduced hydropower generation.

With a $17 million credit, the net hike in electrical rates works out to 6.6 percent. The proposed natural gas rate hike is offset by another $500,000 in credits.

Kelly Norwood, an Avista vice president, said the credits come from accounting changes related to Avista’s asset depreciation schedule.