SPOKANE, Wash., Sept. 15 /PRNewswire/ -- Natural gas prices for
Avista's (NYSE: AVA) Washington
and Idaho customers, which
decreased by about 30 percent in 2009, could increase by an overall
4.6 percent in Washington and 4.3
percent in Idaho if the utility
commissions in both states approve the company's annual Purchased
Gas Cost Adjustment (PGA) tariffs that were filed today. 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.
The requested increases are due to the reduction in the refund
currently being provided to customers related to wholesale natural
gas costs in Avista's 2009 PGAs. Abundant supplies of natural gas
combined with softening demand have kept wholesale natural gas
prices at lower levels over the past year, which have helped to
partially offset the effects of the reduction in the 2009 refund.
If approved, natural gas rates for Avista's customers in both
Washington and Idaho would be at similar levels to those in
2004.
If approved by the respective state utility commissions, new
rates would become effective Nov. 1,
2010, and annual natural gas revenues would increase by
approximately $3.6 million in
Washington and by $1.7 million in Idaho. Avista does not mark up the cost of
natural gas purchased to meet customer needs, so there is no impact
on company earnings. Avista serves over 146,000 natural gas
customers in Washington and 74,000
in Idaho.
If the PGA request is approved by the Washington Utilities and
Transportation Commission (WUTC), a residential customer
using an average 69 therms a month could expect their bill to
increase by $2.97, or 5.0 percent,
for a revised monthly bill of $63.00.
Commercial customers could expect increases of 5.7 percent for
general service schedule 111 and 4.8 percent for large general
service schedule 21, and 3.6 percent for interruptible sales
service schedule 131.
An Idaho residential customer
using an average 63 therms a month could expect their bill to
increase by $2.75, or 4.9 percent,
for a revised monthly bill of $58.78,
if the PGA tariff is approved by the Idaho Public Utilities
Commission (IPUC). Commercial customers could expect
increases 6.1 percent for large general service schedule 111 and
0.9 percent for interruptible sales service schedule 131.
Even though wholesale natural gas prices have been lower for the
past two years, market prices continue to fluctuate. 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. 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.
Residential Exchange Credit
A reduction in the benefits Avista customers receive under the
Bonneville Power Administration's (BPA) Residential Exchange
Program has resulted in additional filings today to increase
electric prices for residential and small-farm customers in both
states by less than 2 percent.
The Residential Exchange Program provides a share of the
benefits of the federal Columbia River power system to the
customers of the six investor-owned utilities in the Pacific
Northwest. Avista applies the benefits it receives, which usually
fluctuate annually, to customers as a credit on their monthly
electric bill.
If the requests are approved by the respective utility
commissions, residential and small-farm customers in both states
using an average of 1,000 kilowatt-hours a month would see a
$1.42 increase - 1.97 percent in
Washington and 1.65 percent in
Idaho - in their monthly electric
bill, effective Nov. 1.
Revenues would increase in Washington by approximately $3.6 million and by $1.7
million in Idaho because of
the reduced benefits Avista is receiving under the Residential
Exchange Program; however, there is no impact on Avista's
earnings.
To help customers proactively manage their energy use, Avista
offers a number of energy efficiency programs, including rebates
and incentives. Visit www.everylittlebit.com for information on the
programs which helped customers save enough energy in 2009 to power
over 6,800 Inland Northwest homes for a year and to serve over
3,000 homes with natural gas for a year.
Information on energy assistance programs and payment options
offered by Avista to help qualifying customers is available at
www.avistautilities.com.
Avista's PGA and Residential Exchange filings are requests,
subject to public review and a decision by the respective state
utility commission. A copy of each request is available for
public review at the offices and websites of Avista and the
respective utility commission. Customers may submit comments on the
proposed rate changes or review the requests by going to
www.puc.idaho.gov for Idaho and
www.utc.wa.gov for Washington.
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.
Copyright . 15 PR Newswire