Commission to conduct hearings, take comments in Avista cases

Avista Utilities customers have an opportunity to comment on two proposed rate adjustments.

The first is a proposed settlement to a rate case filed by the company last March that would phase in a 9.25 percent electric rate increase over three years, with the first year increase of 3.6 percent effective Oct. 1. On the gas side, the increase would be 2.6 percent phased in over two years. Commissioners will conduct a telephonic public hearing on that proposal on Aug. 26 at 7 p.m.

The second is the company's annual Power Cost Adjustment, (PCA) which would increase rates for one year an average 2.6 percent, also effective Oct. 1. The commission is taking written comment on that request through Sept. 16.

If the base electric rate increase settlement is approved, the residential rate for an average customer who uses 1,000 kWhs per month would increase by about $3.50 per month from $80.90 to $84.40. If the one-year PCA is approved, an average residential bill would increase by $1.88 per month.

The commission is not bound by the settlement and will independently review it to determine if it is in the interest of both customers and the utility. The commission may accept, reject or state additional conditions under which the settlement will be accepted. The three commissioners who decide the case will take public testimony in a telephonic hearing on Thursday, Aug. 26, at 7 p.m. Pacific Daylight Time.

The commissioners will also conduct a technical hearing on this matter on Thursday, Aug. 26 in Boise.

The proposed annual revenue increase for Avista on the electric side is $21.25 million. The company requested $32.1 million. On the gas side, the proposed annual revenue increase is $1.85 million. Avista requested $2.6 million. The proposed increases are to be offset by $17.5 million of deferred income tax. The offset will be phased in over the first two years of the three-year phased rate increase so that increases would be as follows:

• Oct. 1, 2010, 3.6 percent electric and 1.9 percent gas.

• Oct. 1, 2011, 3.9 percent electric and 0.72 percent gas.

• Oct. 1, 2012, 1.74 percent electric and 0 percent gas.

The settlement also proposes that Avista increase funding for low-income weatherization from $465,000 to $700,000 per year. The settlement parties also agreed that Avista provide $40,000 to Community Action Partnership agencies for low-income outreach and education programs about energy conservation. The company will also conduct five energy conservation workshops for senior citizens in five Idaho communities no later than Dec. 31, 2011.

Avista claims the increases are necessary because of escalating power supply costs, increased costs to meet new federal requirements that ensure reliability and the need to replace aging infrastructure.

To listen in or to testify during the telephonic Aug. 26 public hearing regarding the proposed settlement to the general rate case, customers may dial toll-free (800) 920-7487. You will be asked to enter a "participant code," which is 76373262. Participants are asked to place their calls within 15 minutes before the start of the 7 p.m. Pacific Time hearing although calls will be accepted after the hearing begins.

Those wanting to provide written comment in the Power Cost Adjustment case must do so by Sept. 16. Comments can be submitted via e-mail by accessing the commission's homepage at www.puc.idaho.gov and clicking on "Comments & Questions About a Rate Case." Fill in the case number (AVU-E-10-03) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-3762.