For the second time in six months the Idaho Public Utilities Commission (PUC) lowered the retail natural gas rates of Spokane, WA-based Avista Utilities. Avista gas utility customers in Idaho will see an average 6.7% drop in their rates, directly related to the continued decline in wholesale gas costs.

Avista’s gas customers received a 4.7% decrease last January and utility officials told the PUC they expect another decrease in October after Avista files its annual purchased gas cost adjustment.

A PUC spokesperson said the regulators put the decrease in effect Monday on a special basis even though it will still review the full Avista rate filing and allow public comment on it through June 19. “The commission wanted customers to immediately realize the benefit of lower wholesale prices,” he said.

“If the commission does receive comments or protests, it has the discretion to set the matter for hearing. If there are no comments or protests, the PUC may consider the matter on its merits and issue the final order without a formal hearing.”

Since last fall Avista has been steadily decreasing its retail natural gas rates in its headquarter state of Washington and Idaho (see Daily GPI, Jan. 5). Avista has said in the two states collectively about 75% of the average residential gas utility bill is due to the cost of gas and pipeline transportation. The rest reflects Avista’s fixed cost to provide natural gas service.

As a combination utility, Avista serves 311,000 retail gas utility customers in three western states, with the bulk being in Washington and Idaho; it has 352,000 electricity customers.

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