Spokane7
50°
November 19, 2010 in City
Regulators approve Avista hike, order audit
Washington regulators granted part of Avista’s request for higher rates Friday, but also said the electric-and-natural-gas utility must conduct annual expense audits to make sure that ratepayers aren’t illegally saddled with costs that should be borne by shareholders.
The new rates, effective Dec. 1, could be adjusted downward if irregularities are found, according to an order signed by Washington Utilities and Transportation Commission.
The action came after an audit by the state Attorney General’s office, which found that Avista had billed utility customers for $38,000 in expenses that the company’s shareholders should have paid. Those items included:
*Professional portraits and first-class travel for the board of directors;
*Employee gifts, a retirement party and employee entertainment at a sporting event;
*Dues and fees to civic organizations, such as Rotary and chambers of commerce;
*Charitable contributions, advertising to improve Avista’s corporate image and moving costs for a company executive.
Those expenses were part of Avista’s rate proposal, submitted to regulators in March. But since they were flagged by the AG’s Office of Public Counsel’s audit, they were not included in the new rates.
“We are concerned that a broader investigation will reveal many more such instances,” the WUTC’s three-member commission said in Friday’s order, which directed Avista to perform the annual expense audits and train employees to reduce errors.
Commissioners reserved the right to adjust the new rates, if the audit reveals additional errors.
“We are confident that the company can and will do better,” the commissioners said in the order. “Given the attention to these matters, we expect that future filings will be free of blatant errors and accounting adjustments that are unquestionably improper.”
Avista spokeswoman Debbie Simock said the company’s internal audit is already under way.
The Spokane-based utility processes more than 3 million transactions per year, including 500,000 expense transactions, she said.
“We understand that a small number of errors could occur,” Simock said. “We’re certainly going to take the steps to make sure that these types of errors do not occur in the future.
The commission is charged with ensuring that investor-owned utilities, such as Avista, provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.
Avista and other investor-owned utilities can only recover certain types of costs from their ratepayers. Other costs must be borne by the company’s shareholders.
Miners to return to Lucky Friday 
johnclarke on November 19 at 3:52 p.m.
Can we convert Avista to a PUD? Somebody make some calls.
MrNatural on November 19 at 4:08 p.m.
…well I’ll be damned…now last I checked this wasn’t a government agency…and I’m not sure if they’re union…gee…must be Obama-Murray-Verner’s fault…cause it looks and quacks like a tax hike to me…
Shylock13 on November 19 at 4:45 p.m.
Did it ever occur to the WUTC that Avista intentionally asks for far larger rates hikes than it wants or needs? And who are the WUTC commissioners? And how are they selected? And do any benefit at all from such rate hikes—i.e., perks from Avista?And why should those who invest in Avista be guaranteed a 7.91 return? Anyone who puts money into a CD or savings account gets only a fraction of that. And anyone who invests in most stocks has no guaranteed return! Further, has anyone, particularly the WCTU, asked Avista how it has/is/will be cutting its expenses??? Your “FRIENDLY NEIGHBORHOOD PREDATOR” is AVISTA!! And now we will all hear from Dan, the company man, who never answered the last several questions I asked him.
lewis8457 on November 19 at 5:12 p.m.
Read an article today about SNAP has had to stop taking names to help with energy assistance. Because the state hasn’t Ok’d any money to SNAP this year. I couldn’t help but wonder wouldn’t it be better for the state to make Avista understand they cant raise rates every 3 months? And that way they would not have so many needing SNAP’s help?
Shylock13 on November 19 at 5:17 p.m.
$7.80 per month = $93.60 per year. How many prey does Avista (a monopoly) have that must pay this average increase??? Those on Social Security got NO INCREASE in 2010, and are getting NO INCREASE in 2011. And how many of Avista’s prey are now unemployed? Remember that dividend % for Avista investors?? And how much do all of the top Avista management folks earn?? And are they getting any pay increases?? Come on, Dan, answer my questions this time!!
Dazzeetrader11 on November 19 at 6:16 p.m.
Leave it Natural to make no sense. This hike is crazy. Tax hikes will make this increase pale. Utility and water rates up Jan 1st..courtesy of Verner. Income tax hikes courtesy of Obama. Gregoire? Well she can’t do anything right. A fresh $1.3 billion shortfall though. Worry about the people you elected…not Avista. You didn’t vote for Avista but you did for your liberals you listed. Nice going!
eagleproducer on November 19 at 6:24 p.m.
Who among us has an “average” electric bill of $78.00?
Shylock13 on November 19 at 7:22 p.m.
Where is Dan, the Company Man?? Why does he not bother to reply to any of us who make comments? It could not possibly be because he has no answers to our questions…or is it because Avista does not give a damn about us, being just interested in profits????
misjustice on November 19 at 7:31 p.m.
I’m fortunate, I guess. I manage to keep my electric bill at around $35.00- $40.00/month if I don’t use the electric heat.
I have a cute little wood stove that will heat the entire house and usually burn about 2 1/2 cords of wood per winter. Wood is a renewable resource and I help out a hard working dad by purchasing the dead wood that he cuts. Plus, when I’m at the wood pile, I get to give AVISTA the one finger salute.
I spend about $400.00 - $500.00 for wood to heat my house for about 6 months. To heat my house with electricity it would be over $150.00 per month (or over $900.00 for the season), and I’d still be cold.
I feel bad for the senior citizens and others on a fixed/limited income. And I wonder how they will fare this winter?
spokanecougar on November 19 at 9:26 p.m.
Another rate hike means another pay raise for the top Avista brass., either that or they will throw even bigger retirement parties and more first class travel for its directors. Stupid A-hole company should be turned into a PUD.
Justin_Galloway on November 19 at 9:43 p.m.
It would be nice if we were in a Public Utility District, but hey, at least our water and waste is not beholden to shareholders.
Justin_Galloway on November 19 at 9:44 p.m.
And yes, Avista could be converted to a PUD. We would just need the city or county to buy all of the shares. Ha.
misjustice on November 19 at 11:15 p.m.
*Professional portraits and first-class travel for the board of directors;
*Employee gifts, a retirement party and employee entertainment at a sporting event;
*Dues and fees to civic organizations, such as Rotary and chambers of commerce;
*Charitable contributions, advertising to improve Avista’s corporate image and moving costs for a company executive.
Well, at least they aren’t spending/wasting money on frivolous stuff.
; )
MrNatural on November 20 at 2:51 p.m.
Got some hairs up eh Daisy :)
Well all I’m saying is here is something people can get incensed about that for once isn’t the Government…
509ifyourlucky on November 21 at 9:15 a.m.
See how the big shots of any company turn out to be liars. Well they got caught.
Now every one that pays a power bill should also report workers in trucks just sitting and doing nothing. Those workers earn good money. Also find out if any of those big shots get a break on paying a power bill.