Avista seeks natural gas rate increase

 Natural gas prices for Avista’s Idaho customers, which decreased by about 30 percent in 2009, could increase by an overall 4.3 percent in Idaho if the Idaho utility commission approves 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 increase is 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 would be at similar levels to those in 2004.

If approved by the respective state utility commissions, new rates would become effective Nov. 1. Avista serves about 74,000 customers in Idaho.