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Washington rates seem to be up and down – we explain it all    

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

So, there's a gas decrease request and a request for an increase and a . . . well, it's confusing at times. Let us explain.
 
 
WA gas rate breakdown.
Question for the day: Have you ever thought about what makes up your natural gas bill?

Other than looking at how much our monthly bill is and maybe how much energy we used the last month, most of us don’t give it a thought.

As an Avista customer, every dollar you pay for natural gas service on average is made up of three different components – the wholesale cost of the natural gas used (41 cents), the cost for transporting that gas from the producer to Avista’s distribution system (13 cents), and the cost for the people, equipment and services needed to deliver that gas to your home (46 cents).

Last Thursday, we asked the Washington Utilities and Transportation Commission (UTC) to allow Avista to decrease natural gas rates for the second time this year by an additional overall 4.4 percent because wholesale natural gas prices continue to decline. You can read more about the request in the news release.

If our request is approved by the UTC, the new lower rates would be effective Nov. 1, making Washington residential natural gas rates over 11 percent lower than at the beginning of this year. This requested decrease is in the wholesale cost of gas (41 cents) and fixed transportation (13 cents) portions of your bill.

If you’re a Washington customer, you may have seen an insert in your August energy bill that provides information on a different Avista rate request called a general rate case.  That request was made last April to increase both electric and natural gas rates. So, why are we asking to decrease and increase natural gas rates at the same time?

The natural gas portion of the general rate case is for the delivery portion (46 cents) of your bill – the people, equipment and services needed to safely and reliably deliver natural gas to you. The request to increase natural gas rates by an overall 5.9 percent is to recover increasing costs to operate and maintain the natural gas system. The UTC has up to 11 months from when the request was made to review and issue a decision.

Rates are complex and can be confusing, so we have a short video that gives more information on the general rate case process. Information on Avista’s general rate case, including upcoming public hearings, is available in the Notice of Request for Rate Increase brochure that was in your August Avista bill. If you missed the insert click this link to check it out.
 
Posted by  System Account  on  9/17/2012
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