Avista requests increase

COEUR d'ALENE - Avista is seeking to raise electric and natural gas rates in Idaho and Washington.

The Spokane-based company said increases in the cost of producing and delivering energy, as well as ongoing capital investments to upgrade aging infrastructure, are drivers in requests it filed Tuesday with the Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission.

The WUTC has up to 11 months and the IPUC has up to seven months to review the respective filings.

"These requests seek recovery of investments we've made in our system to continue providing safe, reliable energy to customers," said Avista Chairman, President and Chief Executive Officer Scott L. Morris.

In Idaho, Avista is requesting an overall electric rate increase of 13.1 percent and an overall 4.1 percent increase in natural gas rates.

If the requests are approved, a residential customer using an average 964 kilowatt hours per month would see a $11.40 per month increase, or 14.6 percent, for a revised monthly bill of $89.35. A natural gas customer using an average of 63 therms per month would see a $2.77 increase, or 4.9 percent, for a revised monthly bill of $58.80.

The requests would produce $32.1 million, or 13.1 percent, in additional billed revenue for electric service and $2.6 million, or 4.1 percent, in additional billed revenue for natural gas service.

Avista serves more than 122,000 electric and 74,000 natural gas customers in Idaho.

It is requesting an overall electric rate increase in Washington of 13.4 percent and an overall 6.0 percent increase in natural gas rates.

Avista Corp. earned $87.1 million in 2009, including $22.1 million for the fourth quarter.

"We remain focused on managing our costs as we continue making significant investments in upgrading our aging infrastructure, complying with an increasing number of mandates, upgrading our hydroelectric facilities and acquiring additional cost-effective energy for our customers," he said.

Avista said it continues to invest about $200 million annually in upgrades to its aging infrastructure, such as generation facilities, power lines, poles and substations - some of which have been serving customers for more than 70 years.

Also included in infrastructure costs are continuing upgrades to each of the four 1950s-era turbines at Avista's Noxon Rapids hydroelectric project in Montana and upgrades to some of the recently relicensed Spokane River hydroelectric projects.

"These upgrades will increase the amount of clean, renewable power available to serve customers," according to a press release.

A component of the requested natural gas increase in both states is Avista's investment in additional capacity at the Jackson Prairie Storage facility in Chehalis, Wash. The additional 3,030,887 dekatherms of storage capacity will generally allow Avista to purchase lower- priced natural gas to serve customers during times when market prices increase.

"We know that a price increase can be challenging for customers. That's why we continue to offer energy efficiency programs to help customers manage their energy use and to support energy assistance programs that help our customers most impacted by rising energy prices," Morris said.

Kootenai Electric Cooperative, which serves more than 20,000 customers in North Idaho and Eastern Washington, said it is not planning a rate increase.