Jan. 15, 2009
Docket Number: UG-082271

OLYMPIA, Wash. – Avista’s natural gas customers will see a 3 percent decrease in their rates due to the recent decline in wholesale market prices, state regulators announced today.

The Washington Utilities and Transportation Commission (UTC) approved the utility’s request to reduce natural-gas rates beginning tomorrow in response to wholesale natural gas prices falling since last summer.

For the average Avista residential natural gas customer, rates are expected to drop by about $2.60 for a customer using 70 therms a month, to about $85.40.

Typically the company accounts for wholesale natural gas purchases and adjusts natural gas rates each year on Nov. 1 to reflect changes in wholesale prices. At that time, customers receive either a surcharge if market prices are higher than anticipated or a credit if market prices are lower than anticipated. Due to the continued decline in prices, Avista asked the commission to refund about $9.2 million to customers now rather than waiting until late fall.

The company is not allowed to earn any profit on gas commodity costs. Wholesale costs for gas account for 75 percent of a customer’s monthly natural gas bill.

Avista is headquartered in Spokane and provides natural-gas service to about 144,000 customers in 10 Eastern Washington counties: Adams, Asotin, Franklin, Klickitat, Lincoln, Pen Oreille, Skamania, Spokane, Stevens and Whitman.

The three-member commission is the state agency in charge of regulating the private, investor-owned natural-gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates.