Spokane, WA-based Avista Utilities has reached a multi-party settlement in its natural gas and electric general rate cases in Washington state. The $37.3 million agreement calls for electric base rates to increase an average of 9.1% and gas base rates to go up an average of 2.4%, effective Jan. 1.

The utility filed the combination general rate increase March 4 with the Washington Utilities and Transportation Commission (WUTC), which now must rule on the settlement. Parties agreeing to the settlement include WUTC staff, the Northwest Industrial Gas Users and The Energy Project. The Industrial Customers of Northwest Utilities also joined in portions of the settlement, Avista said. The Public Counsel unit at the Washington state Attorney General’s Office did not join the agreement, according to the utility.

Profit levels agreed to in the settlement include an 8.22% rate of return, with a common equity-to-debt ratio of 46.3%, and a 10.2% return on equity. Annual electric revenues would increase $32.5 million and annual gas revenues by $4.8 million.

“Also in the settlement, the parties agreed to accumulate for later recovery the expenses, including a carrying charge, related to relicensing of Avista’s five hydroelectric projects on the Spokane River,” a utility spokesperson said.

Another part of the agreement calls on Avista to increase low-income energy payment assistance from $3.9 million to $4.4 million annually under the Low Income Rate Assistance Program. Energy efficiency programs for low-income customers will increase by $350,000 to $1.5 million annually.

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