Avista Utilities Requests One-Year Rate Boost In Idaho

Avista Utilities asked Idaho regulators Wednesday to approve a one-year, 4.763percent electricity rate surcharge that would take effect Jan. 1.

If approved by the Idaho Public Service Commission, a homeowner using an average 1,000 kilowatt hours of power each month will pay an additional $2.45.

All customers - residential, commercial and industrial - face the same increase, which will generate an additional $5.7 million in revenue.

Idaho permits Avista Utilities to apply for a surcharge or rebate when accumulated power costs or savings differ by $2.2 million from those allowed in base rates.

A 1.973 percent rebate has been in place since Aug. 1. The rebate, which trims $1.01 from monthly residential bills, expires July 31, 2001.

Avista Utilities spokeswoman Catherine Parochetti said the company accrued $2.5million in extra wholesale power costs in September and another $3.2 million in October. Wednesday’s application combines those amounts, she said.

Future costs or savings will begin accumulating in another account for possible future adjustments, she said.

Wholesale electricity costs surged to record levels last spring and have remained above historic norms ever since.

Tom Dukich, director of rates and tariffs at the utility, noted that since the so-called power cost adjustment was implemented in Idaho 11 years ago there have been nine rebates for a total $23.2 million and four surcharges for a total $12.5 million.

Washington regulators rejected an Avista Utilities request in a recent rate case to create a similar mechanism, but left open the possibility one could be part of another rate filing expected by the end of the year.