Avista files rate proposals in Washington that would not impact customer bills
“The last year has been punctuated by the unprecedented COVID-19 pandemic and crisis, and we’ve all had to quickly adapt as things changed so significantly,” Avista President and CEO
“Once we make these investments, we need to recover the costs. The ongoing effort to align the rates customers pay with Avista’s costs to serve is one of the main reasons we file general rate requests. We’re mindful of when we file rate cases to minimize the impact to our customers and have chosen to move forward at this time to reduce a more significant financial impact for customers in the future. We understand that it’s challenging and often frustrating when we file rate cases and that many people are struggling right now. This is why we’ve worked hard to identify how we can move forward in a way that doesn’t increase the burden for our customers at this time while also acknowledging the financial investment we’ve made in infrastructure, on their behalf. Through the use of a Tax Customer Credit, our proposal would completely offset an immediate increase in electric and natural gas bills.
As we make decisions about how and where to invest across the company, our customers are our primary focus. We take our responsibility to provide safe, reliable energy at an affordable price very seriously, and we work hard to manage our costs and identify ways to best serve our customers that contribute to keeping energy prices low,” Vermillion said.
Residential Customer Bills
Overall, changes in electricity prices have been approximately 1% higher per year and natural gas prices 2% lower, on average, since
If approved, the electric general rate request is designed to increase annual billed revenues by $44.2 million or 8.3%, but at that same time be fully offset with a Tax Customer Credit of the same amount. The net result would be no change in billed revenues effective
Residential electric customers in
If approved, the natural gas general rate request is designed to increase annual billed revenues by $12.8 million or 7.9%, but at that same time be fully offset with a Tax Customer Credit of the same amount. The net result would be no change in billed revenues effective
Residential natural gas customers in
Tax Customer Credit
To mitigate the proposed base rate increase on customers, Avista is proposing a Tax Customer Credit. During 2020, Avista identified that there was opportunity to change the current methodology related to the treatment of certain tax items, whereby certain tax benefits could be passed along to customers over a shorter timeframe than over the life of those very long-lived assets, as is the current practice. For
To assist customers in managing their energy bills, Avista offers services for customers such as comfort level billing, payment arrangements and Customer Assistance Referral and Evaluation Services (CARES), which provide assistance to special-needs customers through referrals to area agencies and churches for help with housing, utilities, medical assistance and other needs. Avista also provides funding for energy assistance programs Project Share and the company’s
Avista provides energy efficiency and outreach programs that include rebates and incentives as well as tips and resources to help customers manage their energy use and energy bills. Customers can learn more at www.myavista.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 Corporation