SPOKANE, Wash., Sept. 30 /PRNewswire/ -- Increases in the cost of
delivering natural gas service have led Avista (NYSE: AVA) to file
a request today with the Public Utility Commission of Oregon (PUC) to increase natural gas rates for
customers by an overall 5.6 percent. The PUC has up to 10 months to
review Avista's request.
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The request is designed to produce $5.45
million in additional natural gas revenue and is based on a
proposed rate of return of 8.61 percent with a common equity ratio
of 50.76 percent and a 10.9 percent return on equity.
If the request is approved by the PUC, a residential customer
using an average of 46 therms a month would see a $3.71 a month increase, or 6.2 percent, for a
revised monthly bill of $63.48.
To ensure that customers receive safe, reliable natural gas
service, Avista continues to make investments in its natural gas
delivery system. These investments include two significant capital
projects – the second of a two-phase project to improve the
capacity and reliability of the distribution system serving central
and eastern Roseburg, as well as
the replacement of six sections of distribution pipelines in the
Medford area to ensure system
integrity.
An additional component of the requested natural gas increase is
Avista's investment in increased capacity at the Jackson Prairie
Storage Facility located in Chehalis,
Wash. The additional storage capacity will allow Avista to
purchase generally lower-priced natural gas during the summer
months to serve customers during winter months when natural gas
prices are typically higher. It will also help Avista balance its
overall system load and meet winter supply needs. These benefits
will flow through to customers in the annual Purchased Gas Cost
Adjustments (PGA).
"The current economic conditions are at the forefront of
everyone's minds. That's why we continue our focus on maximizing
efficiencies throughout the company and minimizing costs where
possible," said Dennis Vermillion,
president of Avista Utilities.
On average about 65 percent of an Avista bill for Oregon customers is the cost of natural gas
used by the customer, with the remaining 35 percent being the
company's costs for providing safe, reliable service to all
customers, while meeting mandatory state and federal requirements.
On Aug. 31, Avista filed its 2010
Purchased Gas Cost Adjustment which, if approved, would reduce a
residential customer's bill by 2.1 percent, or $1.25, per month for a customer using an average
of 46 therms. The new rate would become effective Nov. 1.
To help customers most impacted by rising energy costs, Avista
supports Project Share, an energy assistance program, as well as
providing the Low Income Rate Assistance Program (LIRAP), which
collects approximately $215,000
annually through a natural gas tariff surcharge. The funds are
distributed by community action agencies. Special-needs customers
can also receive assistance through Avista's Customer Assistance
Referral and Evaluation Services (CARES) program, which provides
referrals to area agencies and churches for help with housing,
utilities, medical assistance and other needs.
In addition to support for energy assistance programs, Avista
also offers payment options such as preferred due dates, payment
arrangements and comfort level billing. Participation in these
programs depends upon account status and specific situations.
To help customers manage their energy use, Avista offers a
number of energy efficiency programs which provide rebates and
incentives to residential, commercial and limited-income customers
for implementing qualifying energy efficiency measures in their
home or business.
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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