State Oks Rate Hike For Avista

The Idaho Public Utilities Commission has approved a 29 percent natural gas rate hike for Avista Utilities.

The increase went into effect Friday. Monthly bills for homeowners using an average 75 therms of gas will rise $10.78.

Increases for other customer classes are somewhat higher.

Avista, which serves 54,126 customers in Idaho, will collect an additional $9.9 million in revenue annually as a result of the rate increase.

Commission approval followed by one day similar action by Washington regulators.

Both increases pass through to consumers the higher cost of natural gas Avista purchases in Canada and from Rocky Mountain sources.

Prices have doubled in the last year because, the commission staff noted, new pipelines have connected Canadian gas fields to Midwest markets where buyers are more accustomed to high costs.

Also, the staff said, gas-fired turbines have increased demand for the fuel in the West, a cold winter is expected, and heating oil costs are up.

“We wish to make clear that no portion of this proposed rate increase is to pay executive officers of Avista; to pay debts arising from poor investments; or to mitigate effects from pending or future stockholder derivative suits,” the commission said in response to concerns raised in letters from consumers.

“Avista will receive no additional profits,” the commission order notes, adding that the company’s rates remain among the lowest in the country.

An Avista senior rate analyst told the Washington Utilities and Transportation Commission Wednesday that the new rates will not fully reflect the inflation of gas costs at the wholesale level.

But anything more would have triggered rate shock, he said.

The Idaho commission order notes that rates over the last six years have moved down as well as up with the cost of gas.

“We still recognize that the rate increase is substantial,” says the order. “Unfortunately, there is little choice but to approve the application.”

To help soften the impact, the commission directed Avista to give customers information about its levelized payment plan, as well as energy assistance programs like Project Share and the Low Income Heating Energy Assistance Program.

Suggestions regarding energy management and conservation should also be provided.

Bert Caldwell can be reached at (509) 459-5450 or by e-mail at bertc@spokesman.com.