PGAs true-up the cost of wholesale natural gas   

Tags: Avista Utilities, Rates, Washington, Natural Gas, Idaho

Each September, natural gas utilities in Washington and Idaho make annual PGA, or Purchased Gas Cost Adjustment, requests to true-up the cost of wholesale natural gas they purchased to serve customers with the amount included in customer rates. Below is a chart that shows wholesale natural gas prices and the amount included in customer rates. We told you about the Oregon PGA filings here a couple of weeks ago.

Natural gas pricing/rates chart
Natural gas daily and future prices, shown with Avista
rate comparison.
Yesterday Avista filed PGA requests with the state public utility commissions in both states that would increase natural gas prices by $2.97 a month for an average residential customer in Washington and by $2.75 in Idaho. If approved, the new rates would become effective Nov. 1. It’s important to know that these are pass-through costs – Avista does not mark up the cost of the gas – so there is no impact on company earnings. Read more about the PGA requests and a $1.42 increase in electric prices for residential and small-farm customers in the news release.

Last year, natural gas customers received a 30 percent reduction in their rates because of significant decreases in wholesale natural gas prices. If the 2010 PGA increase is approved by the utility commissions, natural gas prices for our Washington and Idaho customers would still be at similar levels to those in 2004 – that’s good news as we head into winter.

As usual, we’d like to hear what’s on your mind. Post a comment in the block below or send us an email at
Posted by  System Account  on  9/16/2010
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