Avista Seeks Increase In Gas, Electricity Bills State To Consider Adding $10.35 To Average Monthly Electricity Bill, $2.75 For Gas

Avista Corp. sought an electricity rate increase on Monday that could boost residential bills in Washington as much as 14 percent.

The Spokane utility also asked state regulators for a 7.5 percent hike in residential natural gas rates.

Homeowners who heat with electricity would pay an average of $10.35 more per month if the rate case is approved. The average electricity bill for those who heat with natural gas would increase $6.67 a month.

Homeowners who heat with gas would pay an average of $2.75 more a month for fuel.

Industrial and commercial customers would pay lesser percentage increases because they cost less to serve.

Avista Vice President Ed Turner said the company understands the impact the increases proposed Monday would have on low-income customers.

“Ten dollars can be a lot of money for some folks,” he said.

The electricity rate boosts, which average 10.4 percent, would be the first general increases for Washington customers since 1987.

An adjustment tied to Bonneville Power Administration payments and funds spent for home conservation projects have added 3.5 percent to the average bill since then, but Turner noted that none of that money was kept by the corporation.

Rates manager Tom Dukich said inflation has increased 47 percent over the same period.

To contain costs, Avista has undergone a series of cutbacks and restructurings, he said.

Dukich said the filing with the Washington Utilities and Transportation Commission also covers expenses associated with the relicensing of Avista’s major hydroprojects, the source of its least expensive power.

The company has committed $225 million to upgrades of its two largest dams over the next 45 years.

Turner said the application proposes a lower return on equity and a lower rate of return on investment than the company was allowed back in 1987.

“We have now reached a point where electric price increases are needed in Washington in order to continue to provide our customers with quality service while at the same time providing a fair return to our investors,” he said.

In July, Avista was granted a 7.6 percent electricity rate increase in Idaho. The company had sought an overall 11.6 percent hike that would have raised homeowner bills more than 15 percent.

Residential bills have gone up 9.47 percent.

Washington regulators have 11 months to rule on the application filed Monday, but Turner said the company hopes to implement the rates by mid-2000.

The higher rates would produce an additional $26.3 million in electricity revenues and an added $4.9 million from natural gas sales.

Gas rates have been adjusted from time to time in recent years to track the cost of the fuel.

Turner said Avista remains a strong supporter of Project Share, and tries to be as flexible as possible with those having difficulty paying their bills.

Despite the proposed increases, Turner said Avista rates will remain among the lowest charged by investor-owned utilities in the U.S.