SPOKANE, Wash., Aug. 31 /PRNewswire/ -- Natural gas prices for
Avista's (NYSE: AVA) 95,000 Oregon
customers could decrease by 2.4 percent effective Nov. 1, if the Oregon Public Utility Commission
(OPUC) approves the company's annual Purchase Gas Cost Adjustment
(PGA) request. PGAs are filed each year to true-up the cost of
wholesale natural gas purchased by Avista to serve customers with
the amount included in rates.
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Avista also made three administrative filings today with the
OPUC related to demand side management, intervener funding and
commission fees. If all filings are approved, an Avista residential
customer using an average 50 therms a month could expect their bill
to decrease by $1.35, or 2.1 percent,
for a revised monthly bill of $63.05.
Other customer groups could also expect a price decrease in a
similar range.
Avista's Oregon customers
received a 21 percent decrease in their natural gas prices in
November 2009 because of steep
declines in national wholesale natural gas prices caused by lower
demand and an abundance of natural gas supplies. Kevin Christie, Avista's director of gas supply,
said the same market forces are continuing to keep natural gas
prices at overall lower levels.
"In North America, increasing amounts of natural gas are being
extracted from shale, which is contributing to robust natural gas
supplies. The increase in supplies, along with softening demand is
creating the current environment of relatively stable natural gas
prices," Christie said. "We're pleased that our customers could
again see their natural gas prices decrease for the upcoming
heating season."
However, the wholesale natural gas market remains volatile in
spite of continuing lower prices. To help provide greater price
stability for customers and to allow for flexibility based on
changing market conditions, Avista follows a diversified natural
gas purchasing plan which includes underground storage and forward
and daily purchases.
The direct cost of wholesale natural gas makes up about 65
percent of an Avista customer's bill, and these costs fluctuate up
and down based on market prices. Avista does not mark up the cost
of natural gas purchased to meet customer needs. The remaining 35
percent covers the cost of delivering the natural gas – the
equipment and people needed to provide safe and reliable delivery
of service.
Customers can take advantage of a number of energy efficiency
programs, including rebates and incentives that can help them
proactively manage their natural gas use. Energy assistance
programs and payment options are also available to help assist
qualifying customers. Information on the programs is available at
www.avistautilities.com.
Avista Corp. is an energy company involved in the production,
transmission and distribution of energy as well as other
energy-related businesses. Avista Utilities is our operating
division that provides electric service to 355,000 customers and
natural gas to 315,000 customers. Our service territory covers
30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern
Oregon, with a population of 1.5
million. Avista's primary, non-regulated subsidiary is Advantage
IQ. Our stock is traded under the ticker symbol "AVA." For more
information about Avista, please visit www.avistacorp.com.
Avista Corp. and the Avista Corp. logo are trademarks of Avista
Corporation.
This news release contains forward-looking statements regarding
the company's current expectations. Forward-looking statements are
all statements other than historical facts. Such statements speak
only as of the date of the news release and are subject to a
variety of risks and uncertainties, many of which are beyond the
company's control, which could cause actual results to differ
materially from the expectations. These risks and uncertainties
include, in addition to those discussed herein, all of the factors
discussed in the company's Annual Report on Form 10-K for the year
ended Dec. 31, 2009, and the
Quarterly Report on Form 10-Q for the quarter ended June 30, 2010.
SOURCE Avista Corp.
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