Spokane7
50°
March 24, 2010 in City
Avista requests increase in gas, electricity rates, cites needed upgrades
Avista Utilities is seeking to raise the price of electricity and natural gas for its customers in both Washington and Idaho.
The requested rate hike would add $10.62 to the average Eastern Washington homeowner’s monthly electric bill and another $4 a month for natural gas, according to Avista.
In Idaho the request would add $11.40 to the average homeowner’s electric bill and $2.77 a month for natural gas.
The Spokane-based utility signaled earlier this year that its rates need to rise. 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.
The company filed its requests with regulators in both states Tuesday. Specifically, Avista seeks a 13.4 percent rate hike for electricity and 6 percent for natural gas in Washington, and a 13.1 percent electric rate increase and 4.1 percent increase for natural gas in Idaho.
If the requests are approved, Avista would collect an extra $63.8 million in revenues from Washington ratepayers. In Idaho, Avista would collect an extra $34.7 million.
Scott Morris, Avista’s chairman and chief executive, acknowledged the sting higher rates would have on residents at a time of double-digit unemployment and a struggling economy. He said in a news release that the company has conservation programs designed to help lower energy usage and offers financial assistance in paying bills.
Kelly Norwood, Avista’s vice president who oversees state and federal regulations for the utility, said the company also has taken measures to trim costs.
“We know the economy is tight,” he said in an interview, noting that Avista has a hiring freeze in place and has shelved plans for a new office building, opting instead to remodel and occupy a building in Spokane Valley. “We’re in a situation where people have said to us, ‘Tighten your belt,’ and we have.”
However, Avista reiterated its position that ratepayers must shoulder much of the significant costs – up to $200 million annually – of upgrading and preserving assets. Such upgrades include replacing 50-year-old equipment at the Cabinet Gorge and Noxon Rapids dams.
These projects, Norwood said, provide Avista customers with some of the cheapest electricity in the country.
This new filing includes paying for electricity generated by the Lancaster power plant, which burns natural gas, along with replacing a handful of cheap power contracts set to expire.
Rate cases typically take 11 months to be decided by Washington regulators and seven months by Idaho.
Last year Avista reported profits of $87.1 million – an 18 percent gain over the $73.6 million in profits recorded in 2008.
Executives have credited the strong performance, in part, on the company’s ability to recover its costs of upgrading the electrical system.
Avista rate changes
A look at the percentages of recent increases and decreases in Washingon (W) and Idaho (I).
| Date | Electricity | Gas | Reason |
| Mar. ’10 | ■ 13.4 (W) ■ 13.1 (I) | ■ 6 (W) ■ 4.1 (I) | Rate request |
| Feb. ’10 | ■ 4.5 (W) ■ 2.6 (I) | Tariff for rebates | |
| Feb. ’10 | ■ 7 (W) | Eliminate mo. surcharge | |
| Dec. ’09 | ■ 2.8 (W) | ■ 0.3 (W) | Appoved rate hike |
| Oct. ’09 | ■ 25 (W) ■ 23 (I) | Natural gas price decline | |
| July ’09 | ■ 1.5 (I) | ■ 1.2 (I) | Combined effect of rate adjustments |
Parishes giving $1.5 million toward settling sex cases 
Scoutster on March 24 at 12:09 a.m.
Read the last two paragraphs of this article.
Rather than socking away $ and planning for infrastructure costs, Avista appears to be asking consumers to pay those costs so it doesn’t put profits at risk.
Avista works for its owners, like any business. And, since it is a monopoly selling an essential product/service, it really doesn’t matter what its customer base wants.
I just wish they would be honest about it.
greyhound2 on March 24 at 4:25 a.m.
Avista reported a $17 million gain over last year’s record profits and is asking for another rate increase! What a joke!
liarsinnews on March 24 at 7:31 a.m.
I shall never forget the low life administrators at AVISTA trying to blame a employee who committed suicide for their blunders on Wall Street trading futures but the ghouls forgot to look at the calendar. The poor soul had been dead for several days and the vermin at AVISTA got caught and the transaction was exposed. The Spokesman Review, after the story was published in most newspapers in our country, finally printed the story buried in the so called newspaper. GREED, GREED, GREED.
misjustice on March 24 at 8:33 a.m.
Well, it’s about time for Dan,Dan, the Corporate Answer Man to be logging on…maybe, since he is a communication “expert” he can fix the text on this article where the inserted chart on rate changes has pushed the text to its right up and over the text above it…makes it difficult to read.
LMFAO! ; )
spokanecommunistparty on March 24 at 11:07 a.m.
Anybody know a good source for cheep solar panels? I’m pretty sure power is going to be insanely expensive Like what happened to gas. Remember Enron and those rolling black outs, it sounds like they are trying it again. Electricity will become shockingly expensive like gas and my little farm is going to be prepared. @#!& Avista =)
misjustice on March 24 at 11:13 a.m.
I’ve done a little research on the top earners at Avista…I’m sure that Dan, Dan the Corporate Answer Man can correct or udate these figures as some were from 2008; and I could not find an actual comp total for Christy Burmeister-Smith but I did find her SCC filing showing that she holds > 17,370 shares of Avista stock and purchased 1,300 shares in Feb 2010…you do the math.
Scott Morris > 2,221,905 which includes stock
David Meyer >519,930 which includes stock
Marian Durkin >719,542 which includes stock
Malyn Malquist>693,171 which includes stock
Roger Woodworth>248,739 which includes stock
Karen Feltes >694,036 which includes stock
Please correct, Dan, as I am sure your figures are more current/accurate…awaiting your reply…
LMFAO! ; )
misjustice on March 24 at 11:22 a.m.
Dear Avista:
Thankyou for advising us early about your rate increases so that we can take steps to avoid using your services.
I will be buying 3 more cords of firewood this year, in addition to the 2 cords that I usually buy, so that I do not have to consume electricity to heat my home. Guess I can turn off the water heater as I can heat water on the woodstove.
Kerosene lamps and candles will be used for illumination.
A diesel generator is also being considered as a means to run the fridge, computer, etc…
Love,
MisJustice
LMFAO! : )
cowboy on March 24 at 1:03 p.m.
Odd my post was deleted. Why? only suggested we use alternative methods to lesson our use of Avista’s services.
Lower demand they would need to lower the prices, simple.
cowboy on March 24 at 1:10 p.m.
When the cap and trade bill comes through you wont be able to use any energy source but hydro or nuclear without paying a penalty. And the use of wood for heat will be illegal in the city limits.
so get busy building a nuclear plant in your backyard.
deacon46 on March 24 at 1:14 p.m.
Lower demand and the politians they own will make sure Avista gets subsidies. Power companies who basically are monopolies should be managed based on recovering cost and not on for profit.
liarsinnews on March 24 at 2:12 p.m.
ADDENDUM to my comment above. In 2000, AVISTA, paid a fine of over $2. million because of there involvement with ENRON. I can`t remember for sure, but I do not recollect if the Spokesman Review published that story. I don`t believe they did. The SR owners for years and years held a huge portfolio of shares in the monopoly and might be the reason they cover for the crooks who steal us blind.
addyh on March 24 at 3:02 p.m.
We did indeed do a story on the $2.1 million fine paid by Avista Energy:
Avista Energy hit with fine 2 traders also fined for exploiting futures market
Karen Dorn Steele Staff writer
Publication Date: August 22, 2001 Page: A1 Section: MAIN NEWS Edition: SPOKANE
Avista Energy will pay a $2.1 million fine to settle civil charges that it illegally manipulated the electricity futures market for higher profits in 1998.
The Commodity Futures Trading Commission announced the fine and a “cease and desist” order Tuesday against the Avista Corp. subsidiary, along with smaller fines to two former Avista Energy traders.
misjustice on March 24 at 4:11 p.m.
Oops! I meant to state that I obtained stock information from the SEC not the SCC as previously stated.
Interesting, public information on stock options, purchases and sales made by corporate officers (and others) in publicly traded companies.
Sorry for any confusion.
carmster362 on March 24 at 4:16 p.m.
“Avista reported profits of $87.1 million – an 18 percent gain………credited…….in part, on the company’s ability to recover its costs of upgrading the electrical system.” If they were already able to recover upgrading costs then why in heaven’s name do they need another increase now? In these tough times they should be more willing, as a caring memeber of the community, to reduce their profits and use some of that money to pay for the needed upgrades. And for the record, my idea of belt tightening, isn’t moving to a new location and having it totally remodeled; it’s staying put and making due with what you have. Why the sudden need to move, I wonder, if they have a hiring freeze in place? Mabe those fine executives who lead the way to such strong performance need to tighten up their belts another notch or two and share offices. Or, I understand that moving people from individual offices to cubes frees up a lot of space as well.
liarsinnews on March 24 at 8:09 p.m.
To: ADDY HATCH:(editor)
I wished you had commented on the vermin at AVISTA who got caught with their lies trying to blame the poor soul, at AVISTA who committed suicide and after his death, blamed him for a screw up at the worlds largest casino, Wall Street. The low life’s who tried to pin it on the deceased later found out he was dead during the transaction. The Spokesman Review took there sweet time finally publishing the story. Through out the country other newspapers printed the pathetic story on page one days before the Spokesman Review. Do you need some dates Ms. Hatch to refresh your memory? As a courtesy please name a couple execs who still work at AVISTA that participated in the ghoulish act.
wyoboy on March 25 at 11:58 a.m.
Too bad they sold the producing gas wells in Wyoming or they would not be in the pickle they are in now.