Avista reaches partial settlement in Oregon rate case
The partial settlement includes agreement among the parties on the cost of capital and certain smaller adjustments related to employee benefits and other expenses. In addition, the parties agreed to a future independent review of interest rate hedging practices, with any such recommendations based on the results and findings in the final report only applicable on a prospective basis, and would not apply to any prior
The agreed-upon rate of return (ROR) on rate base is 7.24%, with a common equity ratio of 50% and a 9.4% return on equity (ROE), both of which represent a continuation of existing authorized levels. The original request was based on a proposed ROR of 7.55% with a common equity ratio of 50% and a 9.9% ROE.
The agreement on the elements in the partial settlement results in a reduction in the Company’s originally filed revenue increase request. Avista’s original natural gas revenue increase request is reduced from
The remaining issues to be resolved in the case include, among other things, capital investments in infrastructure improvements, as well as the recovery of increased utility operating costs. Prior to evidentiary hearings before the PUC, the parties are scheduled to meet again in an effort to resolve the remaining issues.
“The proposed partial settlement agreement moves us one step closer to arriving at new natural gas rates in
In addition to
This news release contains forward-looking statements regarding the company’s current expectations. Forward-looking statements are all statements other than historical facts. Such statements speak only as of the date of the news release and are subject to a variety of risks and uncertainties, many of which are beyond the company’s control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company’s Annual Report on Form 10-K for the year ended
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Source: Avista Corporation