Avista seeks approval for natural gas rate increase in Oregon

Avista Corp. has filed a request with Oregon regulators to increase its customers’ natural gas rates there to cover about $11 million of higher purchase costs and infrastructure improvements.

The utility has asked the Public Utility Commission of Oregon to approve a rate increase for about 106,000 customers it serves in Oregon. The commission has 10 months to review the request.

The proposal seeks to pay for upgrades and maintenance of a natural gas pipe and distribution equipment and “information technology improvements,” Avista said in a news release.

The majority of revenue from the rate increase would cover the replacement of hundreds of miles of natural gas pipeline that was installed prior to 1987. It would also pay for new pipes to accommodate future growth and development, according to the news release.

“As costs for goods and services have gone up across the board, we recognize how challenging increases in energy prices can be for our customers,” Avista President and CEO Dennis Vermillion said. “We work hard to make decisions that will help keep these costs affordable, because we know this matters to all of our customers.”

If regulators approve the proposed rate increase, Oregon residential customers using an average of 47 therms per month would see an increase of $6.20, or 8.1%, to their monthly bills.

Vermillion said supply-chain problems, inflation and increasing interest rates have made it more difficult for Avista to control costs.

“The ongoing effort to align the rates customers pay with Avista’s costs to serve is one of the main reasons we file general rate requests,” he said. “It’s important for the health of the company and an essential part of providing safe and reliable energy.”