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Avista’s Cost Adjustments to Slash Gas Bills by 4.9 Percent For Idaho Customers

Avista Corporation’s purchased gas adjustment would lower gas bills by about 0.7 percent, according to a Sept. 18 press release from the Idaho Public Utilities Commission. The adjustment accounts for changes in costs incurred by the utility to purchase, store, and transport gas needed to serve its customers. Avista attributed the proposed rate decrease to continued low natural gas commodity costs, as well as lower transportation costs via interstate pipelines to the utility’s distribution system. These costs which fluctuate with market conditions are typically adjusted in the fall, but the commission approved a 6.4-percent cut in January – just three months after a 2.4-percent cut took effect in November 2017 – to better reflect market conditions. The utility also proposed a 4.2 percent cut for residential natural gas services through its fixed cost adjustment, a mechanism that allows customers to receive a rebate when the utility’s revenue surpasses costs and incur a surcharge when expenses are higher. The proposals would have the combined effect of lowering monthly residential bills by 4.9 percent from Nov. 1. Comments on the proposal are due by Oct. 10.

September 18, 2018
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