Avista proposes rate hikes

Avista recently filed a two-year plan with the Idaho Public Utilities Commission that would increase electric rates by 20% over two years.

The request also looks to increase natural gas rates by about 3.5% over two years.

If approved, new rates would be effective in September and September 2024.

“The ongoing effort to align the rates customers pay with Avista’s costs to serve is one of the main reasons we file general rate requests," said Avista President and CEO Dennis Vermillion in a press release. "It’s important for the health of the company and an essential part of providing safe and reliable energy.” Vermillion said.

If approved, the electric general rate request is designed to increase annual base revenues by $37.5 million effective Sept. 1, and $13.2 million effective Sept. 1, 2024.

If approved, the natural gas general rate request is designed to increase annual revenues by $2.8 million effective Sept. 1, and $0.1 million effective Sept. 1, 2024.

Avista says it is seeking to recover costs for fixed expenses and ongoing investments to infrastructure, technology and more.

“As costs for goods and services have gone up across the board, we recognize how challenging increases in energy prices can be for our customers," Vermillion said. "We work hard to make decisions that will help keep these costs affordable, because we know this matters to all of our customers.”

In the first year of the plan, residential electric customers in Idaho using an average of 927 kilowatt hours per month could expect to see a total billed increase of 15.4% or $13.18 for a revised monthly bill of $98.58 from $85.40, according to Avista.

In year two of the plan, residential electric customers in Idaho using an average of 927 kilowatt hours per month could expect to see a total billed increase of 4.7% or $4.66 for a revised monthly bill of $103.24 from $98.58.

Natural gas would rise 3.5% in year one and include an $8 per month proposed increase in the basic charge, bringing it to $15 a month.

It would rise .2% in year two and include a $5 per month proposed increase in the basic charge, bringing it to $20.

Vermillion said Avista must continue to make investments to infrastructure such as as replacing wood distribution poles and aging natural gas pipelines, and making its system more resilient to the threat of wildfires and storms.

“There are also new pressures causing costs to go up for all companies and industries. Supply chain constraints, inflation and increasing interest rates are contributing to a challenging operating environment, making it more difficult to control costs," he said.

Since January 2016, overall average electricity prices have remained flat and natural gas prices have increased 3.8% per year, according to Avista.

Avista Corp. also recently reported net income of $155.2 million, or $2.12 per diluted share, for the year ended Dec. 31, 2022, compared to $147.3 million, or $2.10 per diluted share, for the year ended Dec. 31, 2021.

For the fourth quarter of 2022, net income was $78 million, or $1.05 per diluted share, compared to net income of $50.9 million, or $0.71 per diluted share, for the fourth quarter of 2021.

“Our 2022 consolidated earnings were better than our expectations, due to significant increases in the fair value of certain non-regulated investments,” Vermillion said.

Avista Utilities provides electric service to 403,000 customers and natural gas to 369,000 customers. Its service territory covers 30,000 square miles in eastern Washington, North Idaho, and parts of southern and eastern Oregon.

The Commission will review Avista’s application and seek seek public input. If you would like to submit comments on the proposed increase (Case No. AVU-E-23-01 and AVU-G-23-01), you can do so by going to the Commission website or mailing comments to: Idaho Public Utilities Commission, P.O. Box 83720, Boise, ID 83720-0074