Avista Requests Rate Reduction for Oregon Firm-Service Natural Gas Customers
If the requests are approved, an Avista residential customer using an average 48 therms a month could expect their bill to decrease by
PGAs are filed each year to balance the actual cost of wholesale natural gas purchased by Avista to serve customers with the amount included in rates. These costs not only include natural gas commodity costs but also the cost to transport natural gas on interstate pipelines to Avista's local distribution system. The primary driver for the company's requested decrease is a reduction in the interstate pipeline transportation costs, which more than offset the rising wholesale natural gas prices seen in 2013.
Approximately 36 Schedule 440, or interruptible, customers do not pay interstate transportation costs because their service can be interrupted when the transportation system is constrained. As a result, those customers will not receive the benefit of reduced transportation costs that residential and other firm-service commercial and industrial customers will receive if Avista's
In addition to the
About 55 percent of an Avista natural gas customer's bill is the combined costs of purchasing natural gas on the wholesale market and transporting it to Avista's system. These costs fluctuate up and down based on market prices, and Avista does not mark up these costs. The remaining 45 percent covers the cost of delivering the natural gas -- the equipment and people needed to provide safe and reliable service.
Avista recently filed a general rate request to increase natural gas rates to recover investments made in the company's natural gas delivery system -- the 45 percent of a customer's bill. The PUC has up to 10 months to review the request.
To help customers proactively manage their energy use, Avista offers a number of energy efficiency programs. Information on available energy efficiency rebates and incentives from Avista for residential, commercial and low-income customers is available at www.avistautilities.com, along with other energy-saving information.
Information on energy assistance programs and payment options offered by Avista to help qualifying customers is available at www.avistautilities.com.
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