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AVISTA: Was it a mere coincidence?

| August 8, 2010 10:50 AM

On April 1, 2010, Coeur d'Alene Press reporter Alecia Warren wrote an article making public Avista executive pay increases. CEO Scott Morris received total compensation of $3,000,000, Mark Thies (vp) received $831,000, Marian Durkin (vp) received $728,000, Karen Feltes (vp) and secretary earned $696,000, Dennis Vermillion (vp) received $733,000. Net income for Avista for 2009 was $87.1 million, improving from $73.6 million from the year before.

Right below the April 1, Press article about Avista earnings, was the heart-wrenching contrasting story of Barbara Taylor, left homeless by the tragic death of her son Ryan Taylor.

On July 7, the press printed an editorial, stating it was time to say no, to an Avista rate increase proposal of 14 percent for electricity. If The Press had not bravely printed this editorial, we wouldn't have known about this greedy, ill-timed rate increase, at a time when people are losing their homes, and getting shut off notices on their power bills.

On July 24, The Press printed my article noting that we have 1,200 homeless people in Kootenai County, another 150 living in tents and who knows how many sleeping in cars. Food banks report empty shelves. I asked residents to indicate their response to this outrageous rate increase to me at stevemarathon@gmail.com. The response was overwhelming; some of the comments about Avista weren't printable.

Just three days later, on July 27, Avista stated they would drop the rate increase to a mere 9.3 percent. Avista just happened to find $17.5 million in deferred state income taxes, which they would use as an offset. Avista knew all along that they could have used this money as a credit.

Was their thinking that if they proposed a 14 percent increase and then dropped it to 9.3 percent, the struggling customers would somehow think they were getting a deal?

Absolute power corrupts. Please continue to give your feedback.

Thanks to writers Alecia Warren, David Cole and The Press editors for keeping us informed.

STEVE BELL

Coeur d'Alene