Proposed settlement provides more certainty for customers to manage energy costs over the next two years
Today we announced a settlement agreement with several parties on the Idaho electric and natural gas general rate requests we filed back in October
. You can read our news release here
. The settlement, if approved by the Idaho Public Utilities Commission (IPUC or commission) would mean a two-phase rate increase in electric and natural gas rates. The first would take effect April 1, 2013 and the second on Oct. 1, 2013.
As part of the settlement, we’ve agreed not to request additional general rate increases that would take effect before Jan. 1 of 2015. This doesn’t mean we wouldn’t adjust rates based on power supply or wholesale natural gas costs before then (remember, that’s a separate part of your bill). For more information about how we adjust those costs, read our Natural Gas Pricing 101
series or visit our website area About Natural Gas and Power Costs
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
The bottom line
Here’s how the changes, if approved would affect your energy bill.
If the commission approves the settlement and you are an Avista electric customer, you would see one general rate increase:
• Beginning Oct. 1, 2013, if you use an average of 930 kilowatt hours a month, you would see an increase of $2.04 per month, for a revised bill of $80.73.
Here’s how the changes, if approved, would affect you as a natural gas customer:
• Beginning April 1, 2013, if you use an average of 60 therms a month, you would see an increase of $2.82 a month, for a revised monthly bill of $55.37.
• Beginning Oct. 1, 2013, if you use an average of 60 therms a month, you would see an additional increase of 31 cents a month, for a revised monthly bill of $55.68.
The settlement and what’s next
You may be wondering what a rate case settlement agreement is and how it all works. When Avista files a request to increase rates, it goes through a process much like a legal proceeding. Parties representing various groups including residential, small-business, low-income and electric industrial customers, participate on behalf of their groups.
The commission oversees this process, and is charged with setting rates that are fair, just, and reasonable for customers, while allowing Avista the opportunity to earn a fair return on the investment shareholders make so we can continue delivering safe, reliable energy. When we can reach an agreement like this one, it saves time and the cost of a fully litigated rate case. It is ultimately up to the commission to approve the request.
In addition to Avista, the parties to the proposed settlement are the Staff of the IPUC, Clearwater Paper Corporation, Idaho Forest Group and The Idaho Conservation League. The IPUC will establish a procedural schedule to gather comments on the proposed settlement from parties to the rate case, as well as customers of Avista, prior to making a decision. For more information, see the IPUC website
Here is another resource about how energy rates are set that you might find helpful.