Avista Requesting to Lower Natural Gas Prices for Washington and Idaho Customers for Second Time This Year

Avista filed requests in May with the utility commissions in Washington and Idaho to reduce natural gas prices by 8.1 percent and 6.7 percent respectively, effective June 1. If approved, this would be the second time in 2009 that Avista customers in both states will see a decrease in their natural gas rates.

"Natural gas prices have continued to decline since our last rate decrease was effective in January. We know many of our customers are concerned about expenses in this economy and we want to pass these additional savings on to them as soon as possible," said Kelly Norwood, Avista vice president for state and federal regulation. "In addition, we are now purchasing natural gas for the next heating season and plan to file by September for a third decrease, provided natural gas prices do not escalate substantially over the summer."

If the request is approved by the Washington Utilities and Transportation Commission (WUTC), a residential customer using an average of 70 therms per month would see a decrease of $7.02, or 8.1 percent, for a revised monthly bill of $79.43. Avista's 146,000 Washington natural gas customers received a 3.0 percent decrease in January 2009.

If the request is approved by the Idaho Public Utilities Commission (IPUC), an Idaho customer using an average of 65 therms per month would see a $5.26, or 6.7 percent decrease for a revised monthly bill of $72.97. Avista's 73,000 Idaho natural gas customers received a 4.7 percent decrease in January 2009.

Purchased Gas Cost Adjustment (PGA) filings are usually made annually in the fall to pass through changes in the cost of natural gas Avista acquires to serve customers. Each month Avista calculates the difference between the price that Avista pays for natural gas and the price that customers pay in rates. The difference between the two amounts is set aside and trued up through annual PGA adjustments.

In this instance, natural gas prices have declined, so Avista is refunding the difference to customers prior to its annual PGA filing. These changes in natural gas costs and the PGA rate adjustments do not increase or decrease Avista's earnings.

Return to June 2009 Western Energy News

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