Idaho PUC approves increase to Avista Fixed Cost Adjustment
The Idaho Public Utilities Commission (PUC) recently approved an increase to a billing mechanism that enables Avista to recover the fixed costs of serving its electric customers.
The change to the Fixed Cost Adjustment (FCA) will cause an increase of $2.56 to the monthly bill of the average residential customer using 910 kilowatt-hours (kWh), which started on Oct. 1.
The FCA change is one of four billing adjustments that was scheduled to take effect at the beginning of the month. Two of the alterations increase charges related to energy use, while two decrease the cost per kWh used. This causes a 2 percent increase for residential customers or $1.73 on the monthly bill of the average residential customer.
In its request for an FCA increase, Avista told the PUC that expenses exceed revenue by approximately
$6.5 million in 2016 because of an abnormally warm winter and savings from its energy efficiency programs.
The approved increase allows the company to recover all but approximately $814,000 of the deficit.
The FCA surcharge will increase by 3 percent, the maximum allowed, to 0.281 cents per kWh for residential customers, which will recover approximately $3.3 million.
For non-residential customers, it will increase by 2.7 percent up to 0.241 cents per kWh, which will recover approximately $2.6 million.
