Avista seeks more money from its Idaho utility customers

A public comment period is open for proposed increases in electricity and natural gas rates for Avista’s Idaho customers.

The utility has requested a 14.7% boost in annual base revenue for electricity this September followed by one for 4.5% a year later. It is also seeking a 2.7% climb in natural gas annual revenue this September and a second one 12 months later for 0.1%.

The Idaho Public Utilities Commission is accepting comments about the plan at its website at puc.idaho.gov where it has a link to a case comment form on the upper left side of the page. Additional information about the case is available at puc.idaho.gov/case/Details/6970.

The changes in rates would help Avista recover costs for fixed expenses, technology, and infrastructure investments, according to an Avista news release.

Once all the hikes take effect, an average Avista electricity customer would be paying a little more than $100 per month while an average natural gas customer would have 

a monthly bill of a few cents more than $76.

Right now an average Avista electricity residential customer consumes 927 kilowatt hours per month and pays $85.40. That would grow to $98.58 this year and $103.24 in 2024.

Included in those amounts are rises in a basic charge that would go from $7 to $15 this year and then to $20 in 2024.

An average residential natural gas customer uses 64 therms per month and has a bill of $73.42. That would reach $76.02 this year and $76.16 next year. Just like the electric rates, the basic charge of $7 per month would be adjusted twice to $20 per month.

Avista expects to gain $37 million in annual electricity revenue in 2023 and another $13.2 million in 2024 if Idaho’s utilities commission backs its plan. It also anticipates $2.8 million more in annual natural gas revenue this year and another $100,000 in 2024 with commission approval.

That money would cover a variety of ongoing expenses and upgrades.

“Supply chain constraints, inflation and increasing interest rates are contributing to a challenging operating environment, making it more difficult to control costs,” said Avista President and CEO Dennis Vermillion in a news release.

“In just the last year, we’ve seen the costs of basic utility equipment such as transformers and electric poles increase in the range of 15-54%,” he said.

Avista has to make investments to make sure customers have power when they need it, he said.

“This means we must continue to make important and necessary investments to the infrastructure that serves our customers such as replacing wood distribution poles and aging natural gas pipelines, making our system more resilient to the threat of wildfires and storms (and) upgrading … substations,” Vermillion said.

What Avista has recommended in Idaho has no impact on its Washington customers. That state’s utilities and transportation commission approved increases of annual electrical revenues of $38 million effective Dec. 21 and $12.5 million effective a year later.

In addition, that commission gave the green light to increases in natural gas revenues of $7.5 million effective Dec. 21 and $1.5 million in December 2023.

Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.