Avista seeks increased natural gas base rates for Oregon
Oregon energy provider Avista filed a request to increase its natural gas base rates this week and bump that base revenue by approximately $11 million.
The utility noted that the money would be used to continue a major project to replace portions of natural gas distribution pipe installed before 1987, replace and expand natural gas pipe for improved operations amid growth, and deploy and upgrade technology for better customer service. Most of the current capital investments include upgrades and maintenance of the natural gas pipe and distribution equipment, along with IT improvements.
If approved by the Public Utility Commission of Oregon, this would lead to monthly bill increases of approximately $6.20 for the average residential customer using about 47 therms per month. This would mean an 8.1 percent increase overall, although actual percentage and dollar increases would fluctuate by customer class and energy use.
“As costs for goods and services have gone up across the board, we recognize how challenging increases in energy prices can be for our customers,” Dennis Vermillion, Avista president and CEO, said. “We work hard to make decisions that will help keep these costs affordable because we know this matters to all of our customers. Part of the responsibility of providing an essential service is to make sure customers have energy when they need it. This means that we must continue to make important and necessary investments to the infrastructure that serves our customers, such as replacing aging natural gas pipelines, upgrading customer-facing technology, and much more.”
Vermillion pitched the decision as one meant to better align the rates customers pay with Avista’s actual costs. He added that supply chain issues, inflation, and increasing interest rates have made cost control more challenging, but the company remains focused on long-term savings.
For Avista’s approximately 106,000 customers in Oregon, about 40 percent of residential bills stem from the combined cost of purchasing natural gas on the wholesale market and its transportation. The rest flow from ownership and operating costs.
The PUC will review the request within 10 months.
