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Good news for Idaho – Avista files requests to decrease electric and natural gas prices   



Today Avista filed several requests with the Idaho Public Utilities Commission to decrease natural gas and electric prices for our customers in Idaho. If approved, natural gas prices would decrease by an overall 8 percent and electric prices by an overall 2 percent for our Idaho customers beginning Oct. 1. This would be the second natural gas price reduction for our customers in Idaho this year. Read more about these filings in the press release we just issued

Each year, we propose to adjust rates our customers pay so that customers’ bills reflect our actual costs of purchasing natural gas and generating and purchasing electric power. Today’s requested rate reductions are due to, among other things, lower natural gas prices and lower power supply costs, which is good news for our customers. Learn more about Natural gas prices.

You may recall the commission in Idaho approved our request to reduce natural gas rates by an overall 6 percent in March. If today’s requests are approved, natural gas rates will have decreased by more than 14 percent overall for Idaho customers in 2012.

Today’s requests include two electric rate adjustments and two natural gas rate adjustments:
• Avista’s annual Power Cost Adjustment (PCA)
• Avista’s annual Purchased Gas Cost Adjustment (PGA)
• Electric and Natural Gas Energy Efficiency Tariff Rider Adjustments (Tariff Rider)

Post Falls Dam
Post Falls Dam - a hydroelectric
facility in Idaho.
The major portion of an Avista electric customer’s bill, about 60 percent, is the cost of generating or purchasing electricity to meet customer needs. These costs may fluctuate up or down. The proposed PCA rebate would pass through reduced power supply costs during the twelve-month period that ended June 30, 2012.

We also filed a request with the IPUC to reduce the electric Energy Efficiency Tariff Rider Adjustment (Tariff Rider). The Tariff Rider is the rate paid by customers that funds the company’s energy efficiency programs.

The two proposed rate decreases will be offset partially by the expiration of an existing refund rate being passed through to customers.

If today’s requests are approved by the commission, the monthly bill for a residential electric customer in Idaho using an average of 939 kilowatt-hours per month would decrease from $80.55 to $79.46, a decrease of $1.09 per month, or 1.4 percent, beginning Oct. 1.

Installing new gas pipelines.
New gas pipelines being
installed new Highway 95 in
North Idaho.
Natural Gas
The combined costs of purchasing natural gas on the wholesale market and transporting it to Avista’s system makes up about 55 percent of an Avista natural gas customer’s bill, and these costs fluctuate up and down based on market prices. Avista does not mark these costs up. Read more about this in our Avista Blog series Natural Gas Pricing 101, Part 1: Wholesale Prices.
The annual Purchased Gas Cost Adjustment (PGA) is a true-up that balances the cost of wholesale natural gas purchased by Avista to serve customers with the amount already included in customer rates. Abundant supplies of natural gas and continued soft demand for the commodity have continued to keep wholesale natural gas prices at lower levels over the past year.

Our second natural gas rate request filed with the IPUC is to reduce the natural gas Energy Efficiency Tariff Rider Adjustment (Tariff Rider). Similar to the electric Tariff Rider for energy efficiency, the natural gas Tariff Rider is the rate paid by customers that funds the Company’s natural gas energy efficiency programs.

If our requests are approved, residential natural gas customers using an average of 60 therms a month would see a $4.42, or 7.9 percent, decrease in their monthly rate for a revised monthly bill of $51.36, beginning Oct. 1.

Please share your comments, concerns and questions with us: visit, or email us at
Posted by  System Account  on  7/31/2012
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