Avista seeks natural gas bill reduction, electricity hike

The price of heating a home in the Spokane area will be getting a bit more manageable just as the fall turns to winter.

Spokane-area customers of Avista Utilities likely will get a reduction in their monthly gas bills and a slight increase in electricity costs based on a recent request by the utility to the board that regulates it.

On Aug. 29, Avista sought an adjustment to the rates it charges Washington customers based on lower wholesale costs of gas and other unexpected higher costs of a program that reduces energy bills to low-income customers.

If approved by the Washington Utility and Transportation Commission, the natural gas price reduction and electricity-rate hike would take effect on Nov. 1.

The relief on the gas rate “was driven in part from the reduction in wholesale cost of natural gas,” said Lena Funston, a spokesperson for Avista. “There are a lot of variables in that market. Some years, there is a reduction. Some years, there is an increase.”

She noted customers pay dollar-for-dollar what Avista pays for natural gas.

“There is no way to predict year to year. It’s up to the market,” she said.

The higher costs for electricity come from a couple of factors, Funston said.

“One is just how the Climate Commitment Act is being implemented. That has affected the costs,” Funston said. “Part of that increase is necessary to support the continuation” of the program that offers assistance to those customers who qualify for reduced electricity bills.

Over time, the cost of electricity continues to rise while price of natural gas has fluctuated.

For instance, on Jan. 1, 2015, the average Avista natural gas customer paid $66.42 a month.

By 2020, that same customer paid even less, $54.94. But this year on Jan. 1, the cost was $101.19.

After an earlier minor reduction to the gas price this year, the proposed natural gas-rate reduction on Nov. 1 would lower the average monthly bill to $86.84.

On the electric side, the average Spokane-area customer paid $79.42 a month as of Jan. 1, 2015. By 2020, that monthly bill grew to $84.66.

As of earlier this year, that rate jumped first to $116.39 and, after a midyear adjustment, rose to $123.42 for the average customer.

As of Nov. 1, it would rise to $126.69, Funston said.

And the news for customers gets more fiscally challenging.

Another round of rate hikes will kick in on Jan. 1, Funston said.

At that time, the average natural gas price will rise from $86.84 to $88.16.

The average electric bill will increase to $131.76, which is $52.34 more a month for a person using the same amount of electricity in 2015.

Funston said part of the increase in rates is necessary to support the continuation of the program that offers assistance to those customers who qualify for reduced electricity bills.

Those benefits apply to customers who have a household income less than or equal to 200% of the federal poverty level or those who have an income at 80% the area median income, whichever is greater.

For this year, those customers who make $31,300 as an individual or $64,300 for a four-person household would qualify for the low-income rate assistance program.

For 2025, 200% of the Federal Poverty Level ranges from $31,300 for a one-person household to $64,300 for a four-person household.

According to the city of Spokane, 80% of the city’s median income for 2025 would range from $56,500 for a one-person household to $80,650 for a four-person household.