Avista, parties file settlement agreement on electric, natural gas rates with Idaho regulators

Avista (NYSE:AVA) on Oct. 23 said that if a settlement agreement that it has reached with multiple parties is approved by Idaho regulators, then annual billed electric revenues would increase by $12.9m, effective Jan. 1, 2018, and by $4.5m, effective Jan. 1, 2019.

For natural gas, the settlement agreement – which has been submitted to the Idaho Public Utilities Commission for its consideration – is designed to increase annual billed revenues by $1.2m, effective Jan. 1, 2018, and by $1.1m, on Jan. 1, 2019, the company said.

The settlement revenue increases are based on a 9.5% return on equity (ROE) with a common equity ratio of 50%, the company noted.

If the settlement is approved, a residential electric customer using an average of 910 kWh per month would see:

  • A billed increase of $5.22 per month for a revised monthly bill of $93.34, effective Jan. 1, 2018
  • A billed increase of $2.16 per month for a revised monthly bill of $95.50, effective Jan. 1, 2019

Avista also said that if the settlement is approved, a residential natural gas customer using an average of 63 therms per month would see:

  • A billed increase of $1.13 per month for a revised monthly bill of $53.74, effective Jan. 1, 2018
  • A billed increase of $1.09 per month for a revised monthly bill of $54.83, effective Jan. 1, 2019

The company noted that its original request included an increase in annual electric billed revenues by $18.6m, effective Jan. 1, 2018, and $9.9m, effective Jan. 1, 2019, as well as an increase in annual billed revenues for natural gas by $3.5m, effective Jan. 1, 2018, and $2.1m, effective Jan. 1, 2019.

According to an Oct. 25 commission order discussing the settlement, Avista has agreed to a two-year stay out provision – that it will not file an electric or natural gas rate case before May 31, 2019, with any rate changes going into effect after Jan. 1, 2020.

The deadline for all parties to file pre-filed testimony in favor of the proposed settlement is Nov. 3; Nov. 14 for pre-filed reply testimony; and Nov. 28 for rebuttal testimony. The commission added that a technical hearing – and the close of public comments – is scheduled for Dec. 8.

About Corina Rivera-Linares 3058 Articles
Corina Rivera-Linares, chief editor for TransmissionHub, has covered the U.S. power industry for the past 15 years. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines. She can be reached at clinares@endeavorb2b.com.