Avista files request with Public Utility Commission of Oregon to recover natural gas infrastructure investments
Avista recently filed a request with the Public Utility Commission of Oregon (PUC) to increase its natural gas base rates to recover continuing capital investments in natural gas infrastructure.
The proposal would increase overall natural gas billed revenue by approximately $6.7 million or 7.8 percent. The request is based on a proposed rate of return of 7.55 percent with a common equity ratio of 50 percent and a 9.9 percent return on equity.
A residential customer using an average of 47 therms per month would see an increase of $3.91, or eight percent, per month for a monthly bill of $52.85.
“This general rate request is driven by investments in our natural gas infrastructure that serves our customers in Oregon,” Avista President Dennis Vermillion said. “We continuously invest in the natural gas system, and this request includes projects that support the safe, reliable delivery of natural gas to our customers as well as the replacement of old equipment, compliance with government regulations and requirements, technology upgrades and more. While customers have benefitted from low natural gas commodity prices, we understand that this requested increase can be challenging, and we are focused on managing our costs, maximizing efficiencies and delivering value for our customers.”
Avista last filed a general rate request in Oregon on Nov. 30, 2016, for new base rates that took effect on Oct. 1, 2017, and Nov. 1, 2017.
This request is separate from the Purchased Gas Cost Adjustment (PGA) and other annual rate adjustment filings that took effect on Nov. 1, 2018, and lowered the average customer bill by 8.3 percent or $4.56 per month.
