Spokane, WA-based Avista Utilities on Tuesday asked regulators in the states of Washington and Idaho to lower natural gas prices in their states by 8.1% and 6.7%, respectively, effective June 1. If approved, this would be the second gas price drop for Avista customers in the two states this year.

Utility officials indicated that later this year Avista could be filing for additional gas rate decreases unless there is a wholesale gas price spike during the summer.

Avista said if the latest decrease is approved by the Washington Utilities and Transportation Commission (WUTC), an average residential customers would see a little more than a $7 monthly decrease, or 8.1%. If the Idaho Public Utilities Commission (PUC) also approves the change, customers would have a decrease of about $5.26/month, or 6.7%. Avista serves 146,000 gas utility customers in Washington and another 73,000 in Idaho.

WCTU-regulated customers earlier got a 3% decrease, while Idaho gas users had a 4.7% decrease, both in January.

For Avista customers in both states, about 75% of their monthly bills are for the wholesale cost of gas and pipeline transportation; the remaining 25% of the bill covers various fixed costs of the utility service system, according to the utility.

Kelly Norwood, Avista vice president for state and federal regulation, said natural gas wholesale prices have continued to decline since the utility’s rate drop at the first of the year. “…[W]e are now purchasing natural gas for the next heating season and plan to file by September for a third decrease, provided natural gas prices do not escalate substantially,” he said.

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