Following similar actions by their colleagues in Oregon and Washington state, Idaho regulators said Tuesday they have lowered Spokane, WA-based Avista Utilities’ retail natural gas utility rates in the state by 22%, or more than the utility had requested earlier this fall. The lower rates became effective last Sunday for Avista’s 70,000 gas customers in northern Idaho (see Daily GPI, Oct. 1).

The Idaho Public Utilities Commission (PUC) approved Avista’s third request this year to decrease its Purchased Gas Cost Adjustment (PGA) surcharge. An adjustment to the PGA, reflecting changes in wholesale gas prices, is made at least once each year by the PUC.

While the decrease reduces Avista’s annual revenue by $18.8 million, it does not impact company earnings; nor does an increase in the surcharge, according to the PUC.

Regulators indicated that a combination of reduced gas demand and an abundance of natural gas supplies have continued to drive down wholesale prices. “In addition, Avista follows a flexible, diversified natural gas purchasing plan and effectively manages its underground natural gas storage facility,” a PUC spokesperson said. “These actions allow Avista to provide stable and low prices to its customers.”

The PUC took comments the first half of October on Avista’s latest request to drop its retail residential gas rates by 17.8% as part of the combination utility’s PGA.

“The reduction is larger than that requested by Avista,” said the PUC spokesperson, adding that Avista wanted to refund customers the balance in its PGA deferral account over two years to mitigate a possible future increase in the adjustment next year. However, the commissioners wanted customers “to get all the benefit this year.”

According to the PUC’s decision, Avista residential customers using the average 66 th/month will get a monthly reduction of about $16.44 or 21.93%. The company requested a reduction of about $12.74/month or 17.8%. Large commercial customers will get a cut of about 25.9%.

Usually the PGA results in either a surcharge or a credit depending on the fluctuating prices of wholesale gas and related transportation costs.

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