Banking on wholesale natural gas prices to be lower in the upcoming winter heating season, Avista Corp.’s utilities last week asked Idaho regulators to decrease natural gas rates for its 59,000 customers in the state by an average of 15.5%, effective Nov. 1. It would be the first decrease for Avista gas utility customers in the state since 1997, following six rate increases that collectively more than doubled the average bill for residential customers over the period.

Avista, based in Spokane, WA, said is also plans by the end of this month to file a gas rate decrease for its customers in its headquarters state of Washington. Earlier, it filed for two gas decreases in Oregon totaling 22.3% and one in California for 16.2%.

The utility said that if the Idaho Public Utilities Commission grants the decrease as outlined, residences and small businesses will see about a $10/month drop in their bills, or about 15%. Large commercial customers will get slightly larger decreases in the 16.4% to 17.3% range. Avista said its overall gas revenues from Idaho will drop by about $10 million annually.

Overall, Avista said it is still under-collected by about $8.7 million for past wholesale gas costs, but that the figure has come down substantially from last year when it stood at about $22.3 million due to the wholesale price spikes of early 2001.

Longer term, the company warned, however, that natural gas retail rates may not continue to go down because the company expects a spike upward in wholesale prices in the winter of 2003-2004.

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