We are focused on making sure that you have the power you need when you need it. Key to making sure that happens is having the poles, wires, transformers, substations, equipment and generating facilities in place to deliver reliable energy to you.
That’s why we’re investing approximately $260 million in infrastructure in 2012. But, the cost of upgrading equipment today is far more expensive than the equipment being replaced, some of which has been serving customers for 40 to 70 years.
The significant difference between the original cost of equipment and the cost of replacement equipment is a major driver in the need for annual rate adjustments. We’re expecting to invest approximately $1.2 billion in our system for the five-year period ending December 31, 2016.
Reliability is also about working to keep vegetation free from our almost 11,000 miles of overhead power lines and testing over 273,000 wood poles to make sure they are structurally sounds.
On December 26, 2012, the Washington Utilities and Transportation Commission (WUTC) approved our multi-party settlement, concluding the general rate requests filed on April 2, 2012. New rates took effect on January 1, 2013. Read our news release here.
- Beginning January 1, 2013, electric customers saw an overall net rate increase of 2.0 percent.
- Beginning January 1, 2014, electric customers will see an additional overall net rate increase of 2.0 percent.
As part of the settlement, we’ve agreed not to request additional general rate increases that would take effect before January 1, 2015.
But what it does mean is that you’ll have more certainty in your energy rates for the next two years, so you can better plan to manage your energy costs. And your energy prices will still be among the lowest in the nation.
- Beginning January 1, 2013, if you use an average of 989 kilowatt hours a month, you saw an increase of $1.20 per month, which equates to about 4 cents a day, for a revised bill of $78.69.
- Beginning January 1, 2014, if you use an average of 989 kilowatt hours a month, you will see an additional increase of $1.60 per month, or about 5 cents a day, for a revised bill of $80.29.
Rising delivery costs – the equipment and people it takes to safely and reliably deliver electricity to your home or business – are also the primary reason we filed a request to increase electric rates with the Idaho Public Utility Commission on October 11, 2012.
On February 6, 2013, Avista and other parties in the company’s electric and natural gas general rate filings reached a settlement agreement that, if approved by the Idaho Public Utilities Commission, would conclude our general rate requests filed in October. Read more about this on our Avista blog.
If the settlement is approved, beginning October 1, 2013, Idaho electric customers would see an overall net increase of 1.9 percent.
As part of the settlement, we’ve agreed not to request additional general rate increases that would take effect before January 1, 2015. This doesn’t mean we wouldn’t adjust rates based on power supply costs before then, including the costs of the Palouse Wind Project. For more information about how we adjust those costs, read about Natural Gas and Power Costs.
What it does mean that you’ll have more certainty in your energy rates for the next two years, so you can better plan to manage your energy costs. And your energy prices will still be among the lowest in the nation.
- If the Commission approves the settlement and you’re an electric customer in Idaho using an average 930 kilowatt hours per month, you would see an increase of $2.04 for a revised monthly bill of $80.73 beginning October 1, 2013.