Avista customers may see natural gas rate decrease

Avista customers in Idaho could see a 2 percent decrease in their natural gas rates on Nov. 1 if the Idaho Public Utilities Commission approves the company's annual Purchased Gas Cost Adjustment filed Monday.

If approved, Avista residential customers using an average of 60 therms a month could expect their bill to decrease by $1.16 for a revised monthly bill of $58.32.

Avista does not mark up the cost of natural gas purchased to meet customer needs, so the filing does not increase or decrease company earnings.

PGAs are filed each year to balance the actual cost of wholesale natural gas purchased by Avista to serve customers with the amount included in rates. This includes the natural gas commodity cost as well as the cost to transport natural gas to Avista's local distribution system.

Wholesale natural gas prices were higher in the past year, which was caused in part by a colder-than-normal winter throughout the United States. That colder-than-normal weather led to a higher level of natural gas usage by Avista's customers, resulting in higher natural gas revenue, which offset the higher commodity costs.

About 55 percent of an Avista natural gas customer's bill is the combined cost of purchasing natural gas on the wholesale market and transporting it to Avista's system. These costs fluctuate based on market prices. The costs are not increased by Avista. The remaining 45 percent covers the cost of delivering the natural gas.

Avista's rate application is subject to public review and a decision by IPUC. Copies of the application are available at Avista and www.puc.idaho.gov.