Avista seeks electric and natural gas rate increase in WashingtonStaff writer ▼ | February 22, 2016
Avista filed a request with the Washington Utilities and Transportation Commission (UTC or Commission) to increase electric and natural gas base rates.
Energy bills Avista wants to increase annual electric revenues by 7.6 percent
Avista's requests, if approved, are designed to increase annual electric revenues by 7.6 percent or $38.6 million, and annual natural gas revenues by 2.8 percent or $4.4 million on January, 2017.
A portion of the 2017 electric request, just under 2 percent, is related to the expiration of a long-term power supply contract that has provided benefits to customers for nearly 20 years.
In addition, Avista's requests, if approved, are designed to increase electric revenues by 3.9 percent or $10.3 million, and natural gas revenues by 1.0 percent or $0.9 million on January, 2018.
Avista has proposed to offset the electric increase, for the January through June 2018 time period, with Energy Recovery Mechanism (ERM) dollars. As a result, customers would not see an electric billing increase effective January, 2018.
The electric and natural gas requests for 2017 and 2018 are based on a proposed rate of return (ROR) on rate base of 7.64 percent with a common equity ratio of 48.5 percent and a 9.9 percent return on equity (ROE). ■