Idaho regulators on Wednesday announced customer workshops June 28-29 on Spokane, WA-based Avista Utilities request in March that it be allowed to raise electric and natural gas retail utility rates for its customers in the northern panhandle part of the state. The sessions will be held in Lewiston and Coeur d’Alene, ID, respectively.

In a March 23 filing to the Idaho Public Utilities Commission (PUC), Avista asked to increase overall electric and gas utility rates by $32.1 million, or 14% for power, and 3.6% for gas. An average monthly residential bill could increase $11.40, and gas by another $2.77/month.

“The commission already has been receiving a number of comments from customers asking it to deny Avista’s application,” a PUC spokesperson said. Ultimately the regulators can reject, accept or modify the utility increase, but they cannot, under Idaho law, refuse to consider the rate increases.

Avista claims the increases are necessary because of escalating power supply costs, increased costs to meet new federal requirements that ensure reliability, and the need to replace aging infrastructure, the PUC spokesperson said.

In the utility’s general rate case filing, CEO Scott Morris said that 10% of Avista’s power supplies, or 100 average megawatts (aMW), come from contracts that expire the end of this year, carrying an average cost of 3 cents/kWh, far below current average prices. “Avista’s average cost of resources is about 4.3 cents/kWh,” Morris said. “The additional cost to replace the expiring contracts will be about $10 million.”

The utility also said there are about $21 million in costs related to a power agreement with the owners of the Lancaster gas-fired generation plant near Rathdrum, ID, and about 80% of the requested power rate increase is attributable to this power supply deal.

Although the utility requested a PUC decision before the end of April, the regulators in mid-April exercised their option to delay for six months retail electricity and natural gas rate increases requested. When making the Idaho filing and a similar one in its headquarters state of Washington, Avista has stressed that it was seeking rate recovery for investments it has made in its electric and gas infrastructures to protect safety and reliability of the energy systems.

A number of organizations have intervened in the rate case proceedings, including Idaho Forest Products, North Idaho Energy Logs, Idaho Conservation League, Snake River Alliance, and the Idaho Community Action Network representing low-income consumers.

Avista’s last rate case was filed early last year, resulting in an average 5.7% base rate increase to customers effective last July. Customers ended up paying jut 1.5% more after a 4.2% reduction in the utility’s annual power cost adjustment was factored in.

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