Specious assertions from Avista

The Spokesman-Review March 11 article, “Avista talks sticker shock,” contained three specious assertions.

First, from 1960 through 2013, Avista’s annual average electric bill rate increase (2.9 percent) trailed the average annual inflation rate (4 percent). Second, only about $550,000 of the $5.5 million 2014 compensation of Avista’s chief executive officer was paid for by its customers. Third, said CEO is “being paid at a level comparable to other utility CEOs.”

According to Bureau of Labor Statistics, since 1985 there have been only four years when annual inflation was 4 percent or higher. In the last two decades, the annual inflation rate averaged less than 2.4 percent.

According to a company spokesman, nine-tenths of CEO Scott Morris’ compensation comes from shareholders and company profits. Major shareholders may play a role in determining compensation levels, but they don’t pay for that compensation, customers do.

Morris’ pay makes headlines annually in part because the hoary practice of justifying his pay by comparing it to that of CEOs of other utilities is both circular and bogus. A far more telling comparison is the U.S. CEO-to-worker compensation ratio, roughly 20-to-1 in 1965 and 300-to-1 in 2013.

David Fietz

Springdale, Wash.