Avista requests lower natural gas prices
Last week, Avista filed Purchased Gas Cost Adjustment (PGA) requests with the utility commissions in Washington and Idaho to reduce overall natural gas prices by 6.4 per¬cent and 6.0 percent respectively, to be effective March 1.If the request is approved by the Washington Utilities and Transportation Commission (WUTC), a residential customer in Washington using an average of 67 therms per month would see a decrease of $3.90, or 6.0 percent, for a revised monthly bill of $60.73. Washington commercial customers could expect decreases of 7.6 percent for large general service schedule 111, 8.2 percent for extra large general service schedule 121 and 9.5 percent for interruptible sales service schedule 131. If the request is approved by the Idaho Public Utilities Commission (IPUC), an Idaho customer using an average of 62 therms per month would see a $3.46, or 5.7 percent, decrease for a revised monthly bill of $57.50. Idaho commercial customers could expect decreases of 7.3 percent for large general service schedule 111 and 9.7 percent for interruptible sales service schedule 131. Avista has approximately 149,000 natural gas customers in Washington and 76,000 in Idaho.“We know many of our customers are concerned about expenses in this economy, and we want to pass these price decreases on to them as quickly as we can,” said Dennis Vermillion, president of Avista Utilities. “The increase in natural gas supply, along with continuing soft demand, is creating the current environment of falling natural gas prices.” PGA filings are usually made annually in the fall to pass through changes in the cost of natural gas Avista ac¬quires to serve customers. The direct cost of natural gas makes up about 65 percent of an Avista customer’s bill, and this cost can fluctuate up and down based on market prices. Given the decline in wholesale natural gas prices, Avista is proposing to decrease the natural gas rates our customers pay to better reflect current market prices for natural gas. The remaining 35 percent of a customer’s bill covers the cost of delivering the natural gas to customers – the equipment and people needed to provide safe and reliable delivery of service. These costs are changed with state approval of a general rate case request.