Avista Makes Annual Price Adjustment Requests in Washington
These annual filings have no impact on the company’s earnings.
Residential Exchange Program
The first adjustment is related to the
Purchased Gas Cost Adjustment (PGA)
The second adjustment is the annual Purchased Gas Cost Adjustment (PGA) filing. If approved, Avista’s request is designed to increase annual natural gas revenues by approximately
The increase is primarily driven by wholesale natural gas costs that are higher than the level presently included in rates. Over the last decade, wholesale natural gas prices have remained very low, however, in recent months wholesale natural gas prices have risen substantially. The market factors attributing to the rise in prices is an overall increase in demand and lower supply. Today’s wholesale gas prices are lower than they were even 20 years ago, even as costs fluctuate from year-to-year.
The PGA is filed each year to balance the actual cost of wholesale natural gas purchased by Avista to serve customers with the amount included in rates. This includes the natural gas commodity cost as well as the cost to transport natural gas on interstate pipelines to Avista’s local distribution system. About 30% of an Avista natural gas customer's bill is the combined cost 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 are not marked up by Avista. The remaining 70% covers the cost of delivering the natural gas – the equipment and people needed to provide safe and reliable service.
Overall, changes in electricity prices have been approximately 0.5% lower per year and natural gas prices 1.7% higher, on average, since
If approved, residential electric customers in
If approved, residential electric customers would see the following rate adjustments:
|Residential Service - Schedule 1 & 2||(0.3||)%|
|General Service - Schedules 11 & 12||0.0||%|
|Large General Service - Schedules 21 & 22||0.0||%|
|Extra Large General Service - Schedule 25||0.0||%|
|Pumping Service - Schedules 31 & 32||0.0||%|
|Street & Area Lights - Schedules 41-48||0.0||%|
Residential natural gas customers using an average of 66 therms per month would see their monthly bills change from
The percentage change for electric and natural gas customers varies by rate schedule and is dependent upon how much energy customers on the respective rate schedules use.
If approved, natural gas customers would see the following rate adjustments:
|General Service - Schedule 101 & 102||9.6||%|
|Large General Service - Schedule 111 & 112||15.5||%|
|Interruptible Sales Service - Schedule 131 & 132||11.8||%|
|Transportation Service - Schedule 146||0.0||%|
Avista serves more than 260,000 electric and 170,000 natural gas customers in
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