Avista files two-year electric, gas rate hike to recover costs for infrastructure investment
In Washington, Avista filed a two-year rate plan with regulators last week to recover costs for fixed expenses and ongoing infrastructure, technology, and other investments, raising potential monthly bills by $9.32 for residential electric customers and $2.29 for gas customers total by the end of 2023.
These cost increases would be incremental. As proposed, the average residential electric customer would see their bills jump around $6.52 – a 7.9 percent increase – in December 2022, followed by another $2.80 – a 3.1 percent increase – in December 2023. On the natural gas side, residential customers would see a bill increase of 2.4 percent, or $1.54, in December 2022, followed by another 1.1 percent, or $0.75, monthly jump in December 2023.
“We take our responsibility to provide you with energy at an affordable price very seriously,” Dennis Vermillion, Avista president and CEO, said. “In fact, the total average monthly cost of Avista’s residential electric service is almost 40 percent lower than the national average for investor-owned utilities. Our customers remain our primary focus as we make decisions about how and where to invest across the company.”
All of this is pending approval by the Washington Utilities and Transportation Commission (WUTC). Avista’s goal would be to increase annual base revenues from electric by $52.9 million as of December 2022 and by $17.1 million by December 2023 while increasing revenues from gas by $10.9 million and $2.2 million in the same timeframe.
“Despite the rising costs, we are always looking for ways to keep rates affordable,” Vermillion said. “The Residual Tax Customer Credit would offer a total of $38 million in estimated benefits to be incrementally returned to electric and natural gas customers over two years, from Dec. 2022 – Dec. 2024, to partially offset the first year of the proposed increase.”
As Vermillion noted, the base rate request would be coupled with a Residual Tax Customer Credit, the benefits of which would be incrementally returned between December 2022 – December 2024, amounting to $25.5 million for electric and $12.5 million for natural gas.
At the same time, Avista intends to replace its existing Low-Income Rate Assistance Program (LIRAP) with an income-based bill discount model for all eligible low-income customers. As for investments, the company seeks to continue management, inspection, and replacement of wooden electric distribution poles, bolster its Wildfire Resiliency Plan, systematically replace portions of aging natural gas distribution pipes and pursue technology upgrades for its business operations.
