Avista: Rates low comparatively
COEUR d'ALENE - Avista Corp. executives said Friday that electric bills for its Idaho and Washington customers are comparatively low nationally and competitive in the Northwest.
The average residential monthly electric bill for Idaho Avista customers is $87.69, compared with a U.S. average of $124.74. Washington Avista customers pay $78.83 on average. That's based on 1,000 kilowatt-hours of use per month.
By comparison, Kootenai Electric Cooperative's average residential monthly electric bill is $80.50. Clearwater Power Co. is $99.32.
Scott Morris, Avista's chairman of the board, president and CEO, and Dennis Vermillion, the president of Avista Utilities, met with The Press Friday.
They said Avista produces its electric power with one of the nation's smallest carbon footprints.
Of the 100 largest U.S. electric power producers, only six generate less carbon, they said. Avista produces just more than 500 pounds of carbon dioxide per megawatt hour. About 50 percent of Avista's resource mix is hydropower.
They said Avista's residential customers also get a good deal on natural gas. Natural gas makes up 35 percent of Avista's resource mix.
Avista customers in Idaho spend an average of $68.09 per month on natural gas, based on 70 therms of use per month. Avista customers in Washington spend slightly less, at $66.02 per month.
Intermountain Gas Co. is lower at $58.76. Other utilities in the Northwest offer natural gas at as much as $85.
Morris and Vermillion also said Avista has a 2011 capital budget of $250 million. They said significant investments are needed to maintain a $2.7 billion system that serves customers in Idaho, Washington and Oregon.
About 60 percent of profits go to paying dividends to investors, while the remainder goes to the capital budget.
Avista last month reported a solid year in 2010 with net income of $92.4 million, which is up $5.3 million compared with the year earlier.
They said about $40 million of the $250 million will be spent enabling the utility to serve its growing number of customers.
They said Avista will be adding more technology to serve customers. The utility industry, they said, lags others in implementing technology. Those changes, however, will be made over time, Morris said.
They said the company is preparing for up to 50 percent employee turnover in the next five to 10 years as older workers retire.
That has meant hiring apprentices to fill technical positions, they said.
Advantage IQ, a subsidiary of Avista Corp., has grown to 900 employees. Avista started Advantage IQ in 1995.
Advantage IQ works with fortune 1000 organizations to reduce energy expenses, manage risk and improve environmental performance.
Advantage IQ has patented systems that provide online access to cost and consumption data to aid company managers.
Advantage IQ had net income of $7.4 million in 2010, compared with $5.3 million the year before. Total revenues for the year for Advantage IQ were $102 million.