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Avista should ask for smaller rate increases in 2017, commission staff says

From staff reports

Avista Utilities should ask for smaller rate increases in 2017, staff members of Washington’s Utilities and Transportation Commission said this week.

The staff reviewed the Spokane-based utility’s request for higher electric and natural gas rates, submitted to the commission in February.

Commission staff determined that increases in electric and natural gas revenues were warranted for Avista during 2017, but only by $25.6 million, or 5.1 percent, for electric service and $700,000, or 0.8 percent, for natural gas service.

Avista had proposed an increase of $38.6 million, or 7.8 percent, in electric rates and $4.4 million, or 5 percent, in natural gas rates for 2017. The company also requested additional revenue increases for the first six months of 2018 of $10.3 million, or 3.9 percent, for electric rates, and $900,000, or 1.8 percent, for natural gas rates.

The staff didn’t recommend rate increases for 2018 at this time.

The three-member Utilities and Transportation Commission will make a decision on Avista’s request this winter. Commission members are not bound by the staff’s recommendation.

New rates for Avista’s Washington customers would go into effect in January.

If the staff’s recommendation was approved, an average residential electric customer using 957 kilowatt-hours per month would pay $4.17 more, for an average monthly bill of $86.96.

A typical residential natural gas customer using 66 therms a month would pay 27 cents more, for an average bill of $61.64.

Commission staff recommended a lower rate of return for Avista of 7.3 percent, compared to the 7.64 percent the company requested.

Avista customers can provide public comment at two meetings next month:

  • 6 p.m., Sept. 20 at the Spokane City Council chambers, 808 W. Spokane Falls Blvd.
  • Noon, Sept. 21 in the Spokane Valley Council chambers, 11707 E. Sprague Ave.

The commission has received 59 public comments to date on Avista’s rate increase proposal – 57 are opposed and two are undecided.